Investment in Vietnam

GUIDEBOOK ON BUSINESS AND INVESTMENT IN VIETNAM BERLIN, 2011 FOREWORD Over the past two decades, Viet Nam’s economy has bee n developing rapidly owing to its â€Å"Doi moi† (Renovation) policy and activeness to integrate itself into the global economy. W ith its enormous efforts and determination, and effective cooperation with international partners and friends worldwide, Viet Nam is taking firm steps towards industrialization and modernization.With a stable political environment and great economic potentials, Viet Nam is an attractive destination for doing business and investment. The Government of Viet Nam has been ceaselessly endeavoring to improve the investment climate with the aim at creating an increasingly business-friendly environment in Viet Nam. Germany is the biggest economic partner of Viet Nam in Europe. The economic cooperation between the two countries has been fruitfully burgeoning.In an effort to further strengthen the economic cooperation between Vie t Nam and Germany, t he Embassy of the Socialist Republic of Viet Nam in coordination with the relevant ministries of Viet Nam to publish the Guidebook on Business and Investment of Viet Nam, which is expected to provide German businesses with an overview of the Viet Nam’s economy and its business and investment climate.We are confident that German businesses can find helpful information and guidelines on investment and doing business in Viet Nam from the Guidebook, and thereby have a deeper understanding of the Viet Nam’s economy, a dynamically emerging and reliable destination for international investment flows. We deeply thank the Ministry of Foreign Affairs and the Ministry of Planning and Investment of Viet Nam for their kind support and assistance. We would like to express our sincere thanks to Dr.Andreas Stoffers, Board Member of German Business Association Vietnam and Member Executive Committee Euroean Chamber of Commerce Vietman for reviewing this book. W e al so heartedly thank Marktforschung und Kommunikation GmbH for her great cooperation and excellent coordination in publishing the Guidebook. Dr. Do Hoa Binh Extraordinary and Plenipotentiary Ambassador of the S. R. Viet Nam to the Federal Republic of Germany 2 ABBREVIATION ASEAN BCC BOM BOT BT BTO CEPT CIT CPC DOLISA DPI EIAR EL EPC EPZ EU EZ FIC FOB GDP HTZ IL IZ JVC LTT LUR LURC MFN MOIT MOLISA MONRE MOST MPI NOIP ODA PCT PIT PPP RO SBV TTC USD VAT VCAD VNDW TO Association of Southeast Asian Nations Business co-operation contract Board of Management of IZs, EPZs, HTZs and EZs Build-operate-transfer (including its derivative forms, BTO and BT) Build-transfer Build-transfer-operate Common Effective Preferential Tariff Scheme Corporate income tax Civil Proceedings Code Provincial Department of Labour, War Invalids and Social Affairs Provincial Department of Planning and Investment Environmental impact assessment report Enterprise Law Environment protection commitment Export processing zone European Union Economic zone Foreign-invested company Free on board Gross Domestic ProductHigh-tech zone Investment Law Industrial zone Joint venture company Law on Technology Transfer Land use rights Certificate of land use rights Most Favoured Nation Ministry of Industry and Trade Ministry of Labour, War Invalids and Social Affairs Ministry of Natural Resources and Environment Ministry of Science and Technology Ministry of Planning and Investment National Office of Intellectual Property Official development assistance Patent Cooperation Treaty Personal income tax Public Private Partnership Representative Office State Bank of Vietnam Technology transfer contract United States of America dollarValue-added tax Vietnam Competition Administration Department Vietnamese Dong W orld Trade Organisation 3 TABLE OF CONTENTS FOREWORD †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 VIETNAM AT A GLANCE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 I: KEY FACTS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 II: POLITICAL SYSTEM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ III: ECONOMY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 IV: INFRASTRUCTURE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 V: VIETNAM- GERMANY ECONOMIC RELATIONSHIP†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 21 LEGAL GUIDE FOR INVESTING AND DOING BUSINESS IN VIETNAM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 24 I: INVESTMENT REGULATIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 II:TRADE REGULATIONS â € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 30 III: TAXATION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 35 IV: CUSTOMS REGULATIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 42 V: LAND LAW †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 44 VI: FOREIGN EXCHANGE AND LOANS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 VII: EMPLOYMENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 52 VIII: COMPETITION LAW †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 58 IX: ENVIRONMENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 62 X: INTELLECTUAL PROPERTY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 64 XI: TECHNOLOGY TRANSFER †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 XII: DISPUTE RESOLUTION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 73 BUSINESS TRAVEL GUIDE TO VIETNAM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 77 APPENDICES APPENDIX 1: LIST OF SECTORS ENT ITLED TO INVESTMENT INCENTIVES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 80 APPENDIX 2: LIST OF GEOGRAPHICAL REGIONS OF INVESTMENT INCENTIVES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 84 APPENDIX 3: USEFUL CONTACTS AND ADDRESSES IN VIETNAM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 87 4 VIETNAM AT A GLANCE I: KEY FACTS ? Official name: The Socialist Republic of Vietnam. Capital: Hanoi. ? Largest city: Ho Chi Minh City. ? Administrative subdivisions: 58 provinces and 5 municipalities (Hanoi, Hai Phong, Da Nang, Ho Chi Minh and Can Tho). ? Official language: Vietnamese. ? Location: In the center of Southeast Asia, neighboring on China to the north, Laos and Cambodia to the west, and the East Sea and Pacific Ocean to the East and South. ? Area: 331,690 km2. ? Coast line: 3,260 km. ? Climate: tropical in south; monsoonal in north with hot, rainy season (mid May to mid-September) and warm, dry season (mid-Octobe r to mid-March). Population (2010): 86. 9 million, by area (urban: 30% and rural: 70%) and by age (less than 15 years old: 24. 7%, 15 -64 years old: 68. 5% and more than 65 years old: 6. 8%). ? Population density: 262 people/km2. ? Literacy: 93. 7%. ? Natural resource: Energy resources (oil, gas, coal, hydropower and wind power); minerals (bauxite, iron ore, lead, gold, precious stones, tin, chromate, anthracite, construction materials, granite, marble, clay, white sand and graphite); sea and tropical forestry resources and agricultural potential. ?Currency: Vietnamese Dong (VND). ? Exchange rate (April 2011): 1 USD = 20,725 VND. ? GDP (2010): 104. 7 billion USD. ? GDP per capita (2010): 1,204 USD. ? GDP real growth rate (2010): 6. 78%. ? GDP by sector (2010): Agriculture (20. 6%), Industry (41. 1%) and Service (38. 3%). ? Exports: Crude oil, garments, shoes, marine products, electronic products and components, funitures, rice, coffee, rubber, tea, pepper. ? Major export markets: US A, Japan, China, Australia, Singapore, Germany, South Korea, Malaysia, the Philippines, Netherland. ?Imports: Machinery & equipment, petroleum products, pharmaceuticals, fertilizer, steel products, metal, textile, garment and shoe inputs, vehicles. 5 ? II: Major import markets: China, Japan, South Korea, Taiwan, Singapore, Thailand, USA, Malaysia, India, Germany. POLITICAL SYSTEM The current Constitution was adopted in 1992 and amended in 2001. It clearly indicates that the State is â€Å"of the people, by the people and for the people†. The people access the State power through the National Assembly and People's Councils, which are composed of elected representatives who represent the people's will and aspirations.The Constitution endows all citizens, men and women alike, with equal rights in all political, economic, cultural and social spheres as well as in family affairs, the right to and freedom of belief and religion and the right to choose and practice a religion, the r ight to and freedom of movement and residence in Vietnam, and the right to go abroad and return home as stipulated by laws. The National Assembly is the highest representative body of the people, endowed with the highest State power of the Socialist Republic of Vietnam.It governs constitutional and legislative rights, decides fundamental domestic and foreign policies, socioeconomic tasks, and national defence and security issues, etc. It exercises the right to supreme supervision of all activities of the State. The State President is the Head of State, elected by the National Assembly from among its deputies to represent the Socialist Republic of Vietnam in domestic and foreign affairs. The term of office of the President is the same as that of the Chairman of the National Assembly.The Government is the executive body of the Socialist Republic of Vietnam. It has the same term of office as the National Assembly and administers the implementation of State affairs in the fields of poli tics, economics, culture, society, national defence and security and foreign relations. The government is headed by the Prime Minister and comprises Deputy Prime Ministers, Ministers and other government members. The Supreme People's Court is the judicial body of the Socialist Republic of Vietnam.It supervises and directs the judicial work of local People's Courts, Military Tribunals, Special Tribunals and other tribunals, unless otherwise prescribed by the National Assembly at the establishment of such Tribunals. The Supreme People's Procuracy oversees the enforcement of the law and exercises the right to prosecution, and ensures serious and uniform implementation of the law. III: ECONOMY Since the Doi moi (reforms) were introduced in the mid-1980s, Vietnamese economy has changed rapidly.Replacing the old centrally-planned economy, Vietnam has shifted to a new economic structure namely a socialist-oriented market economy, and has gained significant success. Today the aim of Vietnam is to become a basically industrialized country by 2020. 6 Overall achievements Vietnam embarked on Doi moi in 1986 and the country has seen many dramatic changes since. Over the last decade it has recorded an average GDP growth rate of 7. 3 percent per annum, ranking it second in the region after China. Its economy suffered from the 2008-09 economic crisis but recovered rapidly, with GDP growth rate of 6. 78 percent in 2010.ADB forecasts that the economy of Vietnam will increase by 6. 1 and 6. 7 percent in 2011 and 2012 respectively. Vietnam already became a lower middle income country with its GDP per capita of 1,204 USD in 2010. To a large extent, Vietnam has successfully transformed from a centrally-planned economy with heavy bureaucracy and subsidies to a socialist -oriented market economy characterized by strong dynamism and rapidly growing entrepreneurship. The country's economy has integrated deeply into the global and regional economies, bringing about a sharp rise in trad e volumes as well as an influx of foreign investment.The economy is well on the way to being a multi-sector model operating according to market mechanisms. The private sector has enjoyed very favourable conditions created by the Enterprise Law of 2000, which institutionalizes the freedom of all individuals to conduct business in areas not prohibited by law and removes a large number of administrative obstacles that hampered enterprises. With a view to raising the efficiency of the state -owned sector, the government has adopted assertive policy measures to reorganize the sector through equitization.As a result, more than 3,970 state-owned enterprises were equitized by the end of 2010. GDP of Vietnam, 2000-2010 120 9. 0 8. 0 7. 0 80 6. 0 5. 0 60 4. 0 40 3. 0 2. 0 20 1. 0 0 0. 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year GDP GDP growth rate Source: General Statistics Office 7 GDP growth rate (%) GDP (billion USD) 100 Progress in particular sectors As Vietnam's GDP con tinuously increases the country's economic structure has also seen notable changes. From 1990 to 2010 the share of the agriculture sector reduced from 38. 7 percent to 20. percent, while that of industry and construction increased from 22. 7 percent in 1990 to 41. 1 percent in 2010. The service sector remained relatively constant: 38. 6 percent in 1990 and 38. 3 percent in 2010. Agriculture still plays a critical role in Vietnam's socio-economic life since it generates about 57 percent of total employment and makes important contribution to the expansion of the country's foreign trade. Vietnam are among the leading countries in terms of agricultural exports such as rice, coffee, cashew nuts and aqua-products, etc.Industry continues to grow rapidly in terms of gross output, at an average rate of 10-15 percent per annum. Besides state enterprises, foreign-invested and the private enterprises play an increasingly important role in industrial development and exports. Services are growin g at an average rate of 7-8 percent. In 2010 the value added of service sector grew 7. 52 percent with good performances being recorded in the trade, finance, and hotels and restaurant sub-sectors as consumption and tourism remained buoyant. Industry and services continue to increase their sha re in the economy.This reflects market oriented reforms, a gradual reduction in barriers to competition and to private sector development, and improvements in physical infrastructure. Greater diversification in industrial production and services lays the foundation for further sustained growth in output and employment. VA growth rate by sector of Vietnam, 2000-2010 12. 0 10. 0 Percent 8. 0 6. 0 4. 0 2. 0 0. 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Agriculture Industry Source: General Statistics Office 8 Service International economic integrationVietnam has made major steps forward in its commitments to regional and international economic integration. Following the introduc tion of Doi moi it signed an economic and trade cooperation agreement with the EU in 1995, joined ASEAN in 1995, adhered to CEPT/AFTA in 1996 and became an APEC member in 1998. The Bilateral Trade Agreement (BTA) with the United States was signed in 2000, which resulted in a dramatic increase in the trade volume between the two countries. Vietnam became the 150th member of the World Trade Organization on January 11, 2007.Vietnam's commitments in the WTO increase market access for exports of goods and services of WTO's members and establish greater transparency in regulatory trade practices as well as a more level playing field between Vietnamese and foreign companies. Vietnam undertook commitments on goods (tariffs, quotas and ceilings on agricultural subsidies) and services (provisions of access to foreign service providers and related conditions), and to implement agreements on intellectual property (TRIPS), investment measures (TRIMS), customs valuation, technical barriers to tra de, sanitary nd phytosanitary measures, import licensing provisions, anti-dumping and countervailing measures, and rules of origin. At present, Viet Nam has established diplomatic relations with 172 countries and signed 55 bilateral investment agreements and 58 double taxation agreements with countries and territories including Germany. It has economic and trading relations with about 165 countries and territories. Vietnam holds membership in 63 international organizations and over 650 non-governmental organizations.The policy of â€Å"multi-lateralization and diversification† in international relations has helped Vietnam to integrate more deeply into the global and regional economies and increase trade and investment ties with nations all over the world. More importantly, Vietnam has improved its enable business friendly environment over time. World Bank recognized that Vietnam is one of the 10 most-improved economies in ease of doing business in 2010. Currently, its ranking is 78 and even higher than other Asia countries such as Indonesia, Philippines, China, India. Vietnam’s rankings according to various indices Index 2011-2010 rank 2010-2009 rankWorld Bank’s Ease of doing business 78/183 88/183 World Economic Forum's Global competitiveness index 59/139 75/133 12/top 20 12/top 25 (*) ATKEARNEY' FDI confidence index Note (*) data for 2007 9 International trade Total export volume of Vietnam increased by 18 percent per year on average in the last decade and its import volume also did so by 19. 2 percent per year. In 2010 its total trade volume reached $155. 6 billion ($71. 6 billion of export and $84 billion of import), equal to 149 percent of its GDP. Both the composition and quality of exports have improved significantly. The proportion of industrial products has risen considerably.The five biggest export items include oil, textiles, footwear, seafood and wood products. Vietnam is in the early stage of the industrialisation and modernis ation process and receives a large inflow of FDI therefore it relies largely on the imp orted equipment and materials. Trade relations with foreign countries, especially other countries in the region, have expanded over time. The biggest trading partners of Viet Nam include China, America, ASEAN, EU, Japan and South Korea. International trade of Vietnam, 2000-2010 160 70 140 60 120 50 100 40 80 30 60 20 40 10 20 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Year Export Import Trade in goods as % GDP Source: General Statistics Office 10 Trade in goods as % GDP (percent) 180 80 Trade (billion US$) 90 Top 10 export and import items of Vietnam, 2010 Garment Machinery & equipment Footwear Steel products Seafood Petroleum products Crude oil Fabric Electronic products Electronic products Furniture Vehicles Rice Platics Machinery & equipment Garment and shoe inputs Precious stone & metals Metals Rubber Animal feed 0. 0 5. 0 10. 0 15. 0 0. 0 5. 0 10. 0 15. 0 Import volume (billio n USD) Export volume (billion USD) Export item Import item Source: General Statistics OfficeForeign direct investment Since the introduction of the Law on Foreign Investment in 1987, by the end of 2010, 12,236 foreign investment projects were licensed with total registered capital of $193. 4 billion and total disbursed capital of over $61 billion. The investors from 92 countries and territories have committed investments in Viet Nam. Most of them are from Asia, Europe and America. Taiwan, Republic of Korea, Singapore, Japan and Malaysia and are the top five countries and territories investing in Vietnam. The next five countries and territories are British Virgin Islands, America, Hongkong, Cayman Islands and Thailand.These â€Å"top ten† countries and territories account for over three quarters of the total licensed projects and foreign registered capital in Viet Nam. Since 1996 there has been a tendency towards investment in producing goods for export, infrastructure constru ction, producing import substitutes and in labour intensive industries. There are more than 8,327 projects in the manufacturing and processing, real estate and construction industries with a total capital of about US$153,5 billion, accounting for nearly 80% of the registered capital.While there are foreign invested projects in all provinces and cities in Viet Nam, most investment has been in the key economic areas in the South including Ho Chi Minh City, Dong Nai, Binh Duong, Ba Ria, Vung Tau, and in the North including Hanoi, Hai Duong, Hai Phong and Quang Ninh. The foreign invested sector has increased rapidly, gradually asserting itself as a dynamic component of the economy, and has made an important contribution to enhancing the competitiveness and efficiency of the economy. In 20 10, the foreign invested sector has accounted for 21. 5% of the country's total investment, contributed 18. percent to GDP, 54. 2 percent to export volume (crude oil included), 44. 4 percent to industr ial gross output and employed 1. 6 million persons. 11 FDI Inflow of Vietnam, 2000-2010 Project number Registered capital Service, 10. 7% Telecom. & transportation 4. 1% Service, 19. 2% Processing & manufacturing 48. 7% Agriculture, 1. 6% Processing & manufacturing 59. 8% Agriculture 3. 9% Telecom. & transportation 7. 7% Real estate & construction 30. 8% Power, water, gas, 2. 5% Mining, 1. 5% Real estate & construction 8. 4% Power, water, gas, 0. 5% Mining, 0. 6% Source: Ministry of Planning and Investment FDI of Vietnam by sector, 2010 600 60 1400 1200 50 1000 40 800 30 600 20 400 10 200 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Disbursement Total investment Note: Accumulated inflow of FDI by the end of 2010 Source: Ministry of Planning and Investment 12 No. of project 1800 70 FDI inflow (billion US$) 80 Top 10 destinations and investors of Vietnam, 2010 Top 10 FDI receiving provinces Top 10 investing countries and territories Ho Chi Minh City Chinese Taipei B a Ria – Vung Tau Korea Republic Ha Noi Singapore Dong Nai Japan Binh Duong Malaysia Ha Tinh British Virgin Islands Phu Yen America Thanh Hoa Hong Kong Hai Phong Cayman IslandsQuang Nam Thailand 0. 0 10. 0 20. 0 30. 0 Total registered investment (billion USD) 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 Total registered investment (billion USD) Note: Accumulated inflow of FDI by the end of 2010 Source: Ministry of Planning and Investment IV: INFRASTRUCTURE ? Road network: – ? 171,392 km country-wide. 2 North-South pivot routes: (i) the 1A National Highway of 2,260km in length from Lang Son to Ca Mau and (ii) the Ho Chi Minh Highway of 3,167km in length from Cao Bang to Ca Mau. Railway network: – ? Total length of 2,632 km. 278 stations country-wide. Hanoi – Ho Chi Minh City line: 1,726 km (it takes 29. hours for express train). – Linked to China railways in two directions, one from Lao Cai province to Yunnan province and one from Lang Son province to Kwangsi p rovince of China. – Planned to construct the railway lines connecting with Laos and Cambodia. Inland waterway: – More than 2,300 rivers and canals with total length of 198,000 km. – Inland waterway system of 35,386 km. 13 ? Sea ports: – – ? Vietnam has 3,260km coastline, a strategic position close to international shipping routes and favored natural conditions of foundation, sea depth, current, tidal, sedimentation and channels for developing seaport business. 7 national level sea ports, 23 provincial level sea ports and 9 offshore oil and gas sea ports. Current major important ports include Cai Lan and Hai Phong in the North, Da Nang and Quy Nhon in the Centre and Sai Gon and Cai Mep in the South. Airports: – ? 8 international airports: Cam Ranh (Nha Trang), Cat Bi (Hai Phong), Da Nang (Da Nang), Lien Khuong (Lam Dong), Noi Bai (Ha Noi), Phu Bai (Hue), Tra Noc (Can Tho), Tan Son Nhat (Ho Chi Minh City). In 2010, Tan Son Nhat Airport receive d 15. 5 million passergers and Noi Bai airport did 9. 5 million passengers. 14 domestic airports: Buon Ma Thuot (Dac Lac), Ca Mau (Ca Mau), Chu Lai (Quang Nam), Co Ong (Ba Ria – Vung Tau), Dien Bien Phu (Dien Bien Phu), Dong Tac (Phu Yen), Dong Hoi (Quang Binh), Gia Lam (Ha Noi), Na San (Son La), Pleiku (Gia Lai), Phu Cat (Binh Dinh), Phu Quoc (Kien Giang), Rach Gia (Kien Giang), Vinh (Nghe An). Business development zones: – ? 3 high-tech zones (Hoa Lac, Da Nang and Ho Chi Minh City) with total area of 3,509 ha of land. ? 260 industrial zones and export processing zones with total area of 71,394 ha of land. 15 economic zones located along sea coast with total area of 638,633 ha of land.Energy: – Electricity output reached 92. 7 billion kWh. – Crude oil and gas exploited 23 million ton. – Coal exploited 44 million ton. Telecommunication: – 26. 8 million Internet users. – 153. 7 million mobile subscriptions. – 16. 4 million fixed phone subscriptions. 14 15 Vietnam rail network 16 National seaports of Vietnam No. Seaport Province Current capacity of ship (DWT) 1 Cam Pha Quang Ninh 50,000 2 Hon Gai Quang Ninh 40,000 3 Hai Phong Hai Phong 20,000 4 Nghi Son Thanh Hoa 20,000 5 Cua Lo Nghe An 10,000 6 Vung Ang Ha Tinh 30,000 7 Chan May Thua Thien Hue 30,000 8 Da Nang Da Nang 30,000 9 Dung Quat Quang Ngai 0,000 10 Quy Nhon Binh Dinh 30,000 11 Van Phong Khanh Hoa 50,000 12 Nha Trang Khanh Hoa 20,000 13 Ba Ngoi Khanh Hoa 30,000 14 Ho Chi Minh City Ho Chi Minh City 30,000 15 Vung Tau Ba Ria – Vung Tau 50,000 16 Dong Nai Dong Nai 20,000 17 Can Tho Can Tho 10,000 Source: Decision 2190/QD-TTg dated 24/12/2009 17 Number and size of IPs and EPZs in Vietnam 300 71,394 70,000 60,000 40,000 150 26,971 260 100 183 11,830 50 50,000 43,687 200 300 1 2,370 12 30,000 20,000 130 10,000 65 0 1991 1995 2000 2005 2007 Year Number of IPs Size (ha) Source: Ministry of Planning and Investment 18 2010 Size of IPs (ha) Number of IP s 250Economic zones of Vietnam 19 SWOT Analysis of Vietnam Strengths Weaknesses ? One of fastest growing economies ? Few skilled professionals in Asia with average GDP growth of available; 7. 2% per year over the last decade; ? High bureaucratic barriers; ? Stable political and social security; ? Weak infrastructure (power, ? Abundance of human resources transportation); (labour force of 46. 2 million people; ? Underdeveloped supporting young, motivated and educated industries. workforce; 60% of population under 35 years old); ? Competitive business and production costs (cost labor, industrial land rent, energy cost, elephone cost, marine transportation, taxation); ? Available mineral and natural resources (coal, oil & gas, iron ore, bauxite, rare earth,.. ); ? Central location in South East Asia, long distance coast. Opportunities Threats ? Global integration (ASEAN, APEC, WTO membership); one of the world’s most open economies; ? High inflation; ? High trade deficit; ? Deva luation of VND; ? Higher demand for consumer goods and capital goods with better ? Banking and finance sector in infant stage; quality because of being a lower middle income country, aiming at ? Low national reserves. an industrialized country and ncreasing urban population; ? Export oriented and labour intensive industries; ? Infrastruture (road, railway, seaport, airport, power) projects funded by international donors or foreign investors. 20 V: VIETNAM- GERMANY ECONOMIC RELATIONSHIP Trade Germany is the biggest trade partner of Vietnam in Europe. In 2010, despite the global economic downturn, bilateral trade reached nearly USD 6 billion, a substantial increase over the previous year. Total export value of Vietnam to Germany reached nearly USD 4 billion, accounting for 19% of total Vietnam’s export to the EU while its import value from German amounted to USD 2 billion.Vietnam’s main export items to Germany are garments, footwear, coffees, furnitures, see foods, leath er and leather apparel, office machinery, iron, metal products, articles of plastics, ceramic products, crude rubber. Germany is the second-largest market worldwide for robusta coffee and black pepper of Vietnam. Main import items from Germany to Vietnam include: machines (in mining, construction and civil engineering, textile, food and beverage,†¦), aircraft, units for electricity generation nd distribution, passenger cars, chemical products, pharmaceutical products, measurement, control and regulation technology products, industrial plants, plastics, lifting and handling equipment, medical equipment and orthopedic appliances, engines, iron, metal products, elec tronic components†¦ After WTO accession, Vietnam is becoming an emerging and lucrative market in Asia. As Vietnam is accelerating its industrialization process to become an â€Å"industrialized country† by 2020, the trend towards sophisticated production facilities is evident and it is likely to result in i ncreased demand for hi -tech machinery made in Germany.Investment There have been over 230 German companies operating and investing in Vietnam, including many Germany’s leading groups such as Siemens, Deutsche Bank, Mercedes, Metro, Bosch etc. By the end of April 2011, German companies have invested in 163 projects with registered capital of USD 825 million in Vietnam. Three fourths of total investment projects and two thirds of investment capital of Germany mainly concentrate in manufacturing, processing, technique services, information and communication technology, banking and finance services.Although German investment projects have been located in 26 locatio ns in Vietnam, most of them have been implemented in Ho Chi Minh City, Hanoi, Binh Duong and Dong Nai. In the upcoming time, the active implementation of mega infrastructure development and energy projects partially funded by German ODA such as the metro line No. 2 Ben Thanh – An Suong in Ho Chi Minh City (with length of 11 km and total investment capital of USD 1. 25 billion), O Mon IV thermo power, Phu Lac wind power, Vietnamese Green Line,†¦ will have positive impacts on promoting German investment flow into Vietnam.German foreign trade and investment promotion is well positioned in Viet Nam. German companies and investors can access to supports and advices from AHK Vietnam, German Business Association (GBA), a correspondent of Germany Trade and Invest (GTAI) in Vietnam. 21 Development cooperation Vietnam is an important partner of Germany in development cooperation. As one of the biggest donors among the EU members, Germany has provided Vietnam with more than EUR 1 billion in ODA since 1990. During 2011 – 2012, Germany committed nearly EUR 300 million for Vietnam. This is a clear evidence for strong support by Germany to the development of Vietnam.German-Vietnamese development cooperation focuses on the three priority areas: (i) Sustainable economic development and vocatio nal training; (ii) Environmental policy, conservation and sustainable use of natural resources; (iii) Health. German development cooperation has been utilizing effectively and contributing positively to socio-economic development of Vietnam, especially in vocational training, human resource development, infrastructure, clean energy source. During the visit of German Chancellor Dr. Angela Merkel to Viet Nam in October 2011, Hanoi Declaration was signed by Prime Minister Nguyen Tan Dung and Chancellor Dr.Angela Merkel. It is the start of the strategic partnership between Vietnam and Germany. Export and import between Vietnam and Germany, 2007-2010 4000 3500 Value (USD million) 3000 2500 2000 1500 1000 500 0 2007 2008 Export from Vietnam to Germany 2009 2010 Year Import to Vietnam from Germany Source: German Federal Statistical Office 22 Gernam investment flow into Vietnam by sector, 2010 Registered capital Service, 10. 5 Agriculture, Telecom. & 5. 4 transportation 0. 4 Real estate & c onstruction 1. 0 Project number Processing & manufacturing 53. 6 Processing & manufacturing 46. 7 Service, 34. 2 Agriculture 2. 0 Power, water & gas, 29. Telecom. & Mining, 0. 7 transportation Real estate & 10. 5 construction Power, water & gas, 2. 0 3. 9 Mining, 0. 0 Source: Ministry of Planning and Investment 23 LEGAL GUIDE FOR INVESTING AND DOING BUSINESS IN VIETNAM I: INVESTMENT REGULATIONS On 1 July 2006, the investment regime comprised of a unified Enterprise Law (â€Å"EL†), which regulates corporations, and a common Investment Law (â€Å" IL†), which regulates investment, came into effect. The promulgation of these two important legislations is considered a significant watershed for improvement of the legal environment on investment activities and corporate governance in Vietnam. . Overview To do business under the IL and EL, foreign investors are required to obtain investment certificates from an appropriate Licensing Authority. Under the IL, investors may inv est in all sectors not prohibited by law. prohibited by law include: Areas ? Investment projects detrimental to national defence, security, and the public interest; ? Investment projects detrimental to historical and cultural traditions and the ethics or customs of Vietnam; ? Investment projects harming people’s health or destroying natural resources and the environment; and ?Investment projects treating toxic waste imported to Vietnam and investment projects manufacturing toxic chemicals banned by international law. 2. Licensing Investors shall follow the licensing and registration steps depending on the size and the sector of the investment project. Investment Certification Process 24 Conditional sectors: Investment projects in conditional sectors shall satisfy certain conditions in order to be licensed. Conditional sectors include: ? Broadcasting and television; ? Production, publishing and distribution of cultural products; ?Exploration and exploitation of minerals; ? Est ablishment of infrastructure for telecommunications network, transmission and provision of internet and telecommunications services; ? Establishment of public postal network and provision of postal services and express services; ? Construction and operation of river ports, sea ports, terminals and airports; ? Transportation of goods and passengers by railway, airway, roadway and sea and inland waterways; ? Catching of aquaculture; ? Production of tobacco; ? Real estate business; ? Import, export and distribution business; Education and training; ? Hospitals and clinics; and ? Other investment sectors in international treaties of which Vietnam is a member and which restrict the opening of the market to foreign investors. Investment Registration: Foreign investment projects with a total invested capital of less than VND 300 billion (US$ 15 million) and not falling in a conditional sector are subject to â€Å"investment registration† and foreign investors of such projects shall carry out the procedures for investment registration in order to be granted an investment certificate.The investment certificate also serves as the business registration of the corporate entity. Enterprises can subsequently register additional investment projects without the need to create a separate entity. The investor should submit application documents for investment registration to the Licensing Authority. The Licensing Authority shall check the documents and issue the investment certificate to the investors within 15 workin g days of receiving the valid application.Investment Evaluation: Any investment project with a total invested capital of VND 300 billion (US$ 15 million) or more or investment projects falling in conditional sectors shall undergo â€Å"an investment evaluation† by the Licensing Authority and other relevant authorities. There are two different types of evaluation: ? evaluation for investment projects regardless of total invested capital falling into c onditional sectors; and ? evaluation for investment projects with total invested capital of VND300 billion or more that do not fall into conditional sectors.For the evaluation of investment projects with total invested capital of VND 300 billion or more, along with the application documents, the applicant must also submit an â€Å"economic – technical explanation† of the investment project to the Licensing Authority. This covers the economic – technical explanatory statement, 25 objectives, scale, location, investment capital, implementation schedule, land use needs, and technological and environmental solutions of the investment project.For the evaluation of investment projects falling in conditional sectors, in addition to the application documents, the investor shall also demonstrate compliance with requirements specific to that conditional sector. When assessing the application documents, the Licensing Authority may liaise with other relevant Ministries and authorities in evaluating the proposed investment project. Items to be evaluated shall comprise: ? compliance with master planning/zoning for technical infrastructure, master planning/zoning for land use, master planning for construction, master planning for utilization of minerals and other natural resources; land use requirements; ? project implementation schedule; ? environmental solutions. The time-limit for evaluation of investment shall not exceed thirty (30) days from the date of receipt of a complete and valid file. In necessary cases, the above time -limit may be extended, but not beyond forty five (45) days. Applying for Construction License Filing for Investment Certificate Applying for the approval of Report on environment effects evaluation Agreement on land/building/office renting Evaluating preliminary technical design Environmental protection ommitment Land/building/office renting contract 26 Projects subject to Projects subject to environmental protection constructi on license commitment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Investment Certificate Projects subject to Report on environmental effects evaluation To-Do List for Investors 3. Licensing Authority Licensing Authority 3. 1 The Board of Management (â€Å"BOM†) of industrial zones (â€Å"IZs†), export processing zones (â€Å"EPZs†), high-tech zones (â€Å"HTZs†), and economic zones (â€Å"EZs†) are responsible for licensing foreign investments within their zones. 3 . 2National important BOT projects and PPP projects are licensed by the Ministry of Planning and Investment (â€Å"MPI†). Oil and gas projects, credit institutions, insurance projects and law firms are licensed by Ministry of Trade and Industry, State Bank of Vietnam, Ministry of Finance and Ministry of Justice respectively. 3 . 3 The Provincial People’s Committee is the authority responsible for all other foreign investments. Licensing applications shall be su bmitted to these bodies, who will consult with other relevant governmental authorities (where so required) before issuing final approval. . 4 The Prime Minister will approve the following investment projects (unless they are not included in the approved master plan): (a) The following investment projects, irrespective of the source of investment capital and scale of investment: – construction and commercial operation of airports; air transportation; – construction and commercial operation of national sea ports; – exploration, mining and processing of petroleum; exploration and mining of minerals; – radio and television broadcasting; – commercial operation of casinos; – production of cigarettes; – stablishment of university training establishments; and 27 – establishment of IZs, EPZs, HTZs and EZs. (b) The following investment projects, irrespective of the source of investment capital but with a total invested capital of VND 1,5 00 billion or more in the following sectors: – business in electricity, processing of minerals, metallurgy; – construction of railway, road and internal waterway infrastructure; and – production and business of alcohol, beer; (c) The following projects with foreign-invested capital in the following sectors: – commercial operation of sea transportation; – onstruction of networks for and supply of postal and delivery, telecommunications and internet services, construction of wave transmission networks; – printing and distributing newspapers and printed matter, publishing; and – establishment of independent scientific research establishments. 4. Forms of Investment and Enterprise Under the â€Å"Law on Investment† and the â€Å"Law on Enterprises† foreign investors may choose the following forms of investment in Viet Nam: Investment forms: – Invest in business development; – Establish economic organizations (1 00% capital of foreign investors or joint venture); Purchase shares or contribute capital to participate in management of investment activities; – Invest in contractual forms of BBC, BO, BTO, BT, PPP; and – M of enterprises. While foreign investors are allowed to buy shares in many domestic companies without limitation, there are ownership limitations for certain companies listed on the Vietnam stock exchange and financial sectors. Foreign ownership cannot exceed 49 percent of listed companies and 30 percent of listed companies in the financial sector. Forms of enterprises: – Limited liability company (with one member or more than one member);

Concept Of Morality Essay

Examples a. Moral – protect the weak, stand up for the downtrodden, love everyone as much as you can and more every day, jump on any and all opportunities to save an innocent life, do your best to live up to your potential for the betterment of the world. Doing what is right because it is right, feeding a starving child, giving your coat to a homeless person, taking foster children and caring for them well, standing for what you know is right. 2. Amoral does not concern with any moral standard. Examples a. Amoral – chew gum, play baseball, speak French, swim in the ocean, jump in a puddle, not caring if something is right or wrong. Driving, shooting a gun, internet, reading, watching TV 3. Immoral does not act in conformity with accepted principles. Examples a. Immoral – murder for profit, treat people as tools for your advancement in business, betray your word, make decisions based on vengeance, initiate non-consensual sex, cheating on the stock market, lying maliciously, stealing, drag racing in the community at 11pm or early morning, murder, incest, doing another’s homework Different definitions of Morality a. Morality is a response to God’s incredible, freely given love and His gift of salvation offered to us through our Lord Jesus. b. Morality is a science, concerned about what ought to be , judging right from wrong in the light of revelation, one’s act of responsibility, and responding to all personal invitation of Jesus. c. Morality is searching for the norms (standards) of free human conduct in the light of revelation. d. Morality is how humans relate to or treat one another to promote mutual welfare, growth and meaning in striving for good over bad and right over wrong. e. Morality is a system or principles by which we can determine if our conduct is right or wrong, these moral ways of acting are found through our good sense. B. DIFFERENT CONCEPTS OF MAN Who is man? Karl Marx: Man is controlled by the economic organization of society. Charles Darwin: Life evolves from simple to complex form through an evolutionary process. Man struggled for existence. B. F. Skinner: All human actions are actually the result of stimuli from our environment and no person can act out of his own will. Freedom may only appear to be so because the external forces which control our action are not noticeable. Signum Freud: Man is controlled by instinct. We are not creature of reason but of instinct, particularly sexual instinct and the instinct of self-preservation. Martin Heidegger: man is the past, the present and the future. Time is an important element in the life of man. Christians: Christians are those who decide their own course of life because they know that â€Å"not to decide is to decide. † The Christians relate positively towards others because they have accepted in faith the Word of God. Passages: The dignity of the human person is rooted in his creation in the image and likeness of God; it is fulfilled in his vocation to divine beatitude. By his reason, man recognizes the voice of God which urges him to do what is good and avoid what is evil. Everyone is obliged to follow the law, which makes itself heard in conscience and is fulfilled in the love of God and neighbor. Living a moral life bears witness to the dignity of the person. -from the Catechism of the Catholic Church. Man though made of body and soul, is a unity. Through his bodily condition, he sums up in himself the elements of the material world. Through Jesus, man is brought to the highest perfection and can raise his voice in praise freely given to the Creator. Man is obliged to regard his body as good and to hold it in honor since God has created it and will raise it up on the last day. -from the Vatican II, Church in the Modern World.

Explain the relationship between performance and rewards Essay

Explain the relationship between performance and rewards - Essay Example When I was working at the sales department of Nestle Company I was offered three types of rewards: money, promotion and a vacation. Before these rewards could be offered, the goals of the department were clearly stipulated and aligned to organizational goals. Then we sat with the departmental manager to set individual goals which if achieved, reward would be given. We met periodically with the manager to review our performance and revise the goals if unachievable before performance was evaluated at the end of each year. Those of us who achieved our targets got monetary rewards and this made us to work harder for extra cash. I was also promoted from sales representative to sales manager and this motivated me to worker harder so as to climb up the ladder and achieve self-actualization. A vacation was also welcome to spend time with family away from the stress of work. This made me feel fresh on reporting back to work hence increased morale, job satisfaction and consequently improved pe rformance. If such rewards were not offered, then many employees would not go out of their way to ensure organizational goals are achieved or work beyond the expected performance. This is in line with the expectancy theory of motivation whereby employees expect to be given something in return for their extra effort (Hegar, 2012, p. 12). If they do not expect anything, the likelihood of losing morale is high. The most likely type of rewards to result in improved productivity are intrinsic rewards such as recognition, increased responsibility, challenging work, sense of accomplishment and belonging. These come from inside the person rather than from external source such as money given by a boss hence have more power to motivate (Hegar 2012). An employee is most likely to get used to external rewards hence views them as a norm thus reducing his/her motivation. For intrinsic rewards, an employee is not forced to

The No Child Left Behind Act of 2001 and How It Affected Education Essay

The No Child Left Behind Act of 2001 and How It Affected Education - Essay Example The act suggested the following changes; Annual Testing: States were required to begin testing students from grades three to eight annually on reading, mathematics and science by 2008. These tests had to follow state academic standard. Moreover, in order to compare the states, every state was required to present a sample of fourth and eighth graders to participate in the National Assessment of Educational Progress testing program. Academic Progress: In order to monitor the progress of an educational institution, â€Å"states were required to bring all students up to the "proficient" level on state tests by the 2013-14 school year. Individual schools had to meet state "adequate yearly progress" targets† ("No child left," 2004). Report Cards: From the start of 2002-2003 school year, states were required to provide annual report cards of school districts that would show a wide range of information on the performance of schools and achievements of students. Teacher Qualifications: The qualification of teachers for schools was set on a standard basis and by 2005-2006 school year, all the teaching faculty hired had to have â€Å"completed at least two years of college, obtained an associate's degree or higher, or passed an evaluation to demonstrate knowledge and teaching ability.† ("No child left," 2004) Reading First: This act created a grant program called â€Å"Reading First† to help states organize â€Å"â€Å"scientific, research based† reading programs for children in grades K-3 (with priority given to high-poverty areas)† ("No child left," 2004). Funding: The act was primarily meant for school districts with higher concentration of underprivileged students. The states were given flexibility in allocating resources for the programs they were required to initiate. The act was subject to hot debate since its enactment as people from the education sector were concerned with its feasibility. The controversial debate rose to an iss ue that had to be addressed. The act has its ups and downs. The comparison of its pros and cons can enable us to critically analyze the depth of its impact. The act affected the education system in many positive ways. Factors that affected the US education system positively are the necessary components of a good assessment system. First and foremost is the accountability factor. The act held teachers and states accountable for the development and progress of the students. Report cards and Academic-progress monitoring were specifically conditioned for this purpose. The ultimate purpose of this act was to improve the education by bringing in the necessary reforms such as â€Å"reading first† and â€Å"annual testing†. This act provided equal opportunity to students, implying that every student could participate in his/her own intellectual development through the initiated programs. Another lucrative factor of this act was the standard for teachers to enter the teaching p rofession. Teachers have to pass a certified test (GACE) in order to teach. As a result of this clause the quality of teaching has improved. With the help of report cards, schools were graded relative to the adequate yearly progress target. If these schools fail to achieve the set target for two years straight, students would be offered choices of other public schools and if a school fails to achieve the set target for continued years than it can even face correctional measures. The last mentionable

Agency theory and corporate governance Assignment

Agency theory and corporate governance - Assignment Example Involving a series of intentional fraud and corruption, the Enron, Worldcom, Northern Rock and Bank of Credit and Commerce International scandals were just a few of the biggest financial scandals ever recorded for the last two decades. Intervention of regulatory authorities and shareholders for corporate governance increased (Burton, 2000) in a way that provoked the initiation of several conventions -- particularly notable are the Cadbury (1992), Greenbury (1995) reports and the Combined Code (1998). In this light, this paper determines whether the actual and strict compliance to the code, while may not be legally binding, had in a way assisted in improving corporate governance among listed companies. The Combined Code for UK Listed Companies It was following the bankruptcy of a large UK company, Polly Peck, the defunct of the Bank of Credit and Commerce International, and the fraud committed by Robert Maxwell when the Cadbury Commission was founded in 1992 and provoked the issuance of the code of best practice for corporate governance, the Cadbury Code (Davidson, 2008). The Cadbury Code clearly laid out the framework for corporate governance in the guise of accountability, integrity, or honesty (Applied Corporate Governance, 2009). The Greenbury Code, on the other hand, centered on the director’s remuneration and its lack of transparency . The Combined Code, a result of both the Cadbury (1992) and Greenbury (1995) codes (hence the name), includes the best practices for corporate governance specifically with regard to the quality of the board, division of offices of the chairman and the managing director, balance of the executives and the non-executives, remuneration of directors, and the nomination committee (Sealy & Worthington, 2007). As opposed to the previous codes, the combined code employs principles (Davidson, 2008). In the Cadbury convention, the most notable aspect which the Combined Code adopted was its approach on ‘compliance and explan ation’ in a way that the listed firms should report the extent to which they have complied with the code and/or explain any form of non-compliance (Sealy & Worthington, 2007). This approach does not only produce external impacts but also importantly internal impacts for it allows a firm to identify which parts or principles of the code worked best for the company and what did not. As a head start, regulatory authorities may now be able to determine which parts of the code are faulty or that do not yield positive results. Added to strict rules and requirements for capital and liquidity, the said approach will define the most effective method for corporate governance (Walker, n.d. as cited in Haddrill, n.d.). Although the Cadbury report and the succeeding ones do not bind companies into a legal obligation, it has become habitual among listed companies in that the Stock Exchange deems it necessary (Sealy & Worthington, 2007). The Combined Code ensures that all constituents in th e corporation incur optimal gains and minimal losses in the course of maximizing profit and reducing costs. In essence, the concept of corporate governance seems easy to apply. In practice, however, the connectedness between the shareholders and the managers for the most part creates conflicts of interests -- the agency problem. The abstraction arising from contracts allows agents (e.g. managers) to act in effort to benefit from an endeavor that may, in turn, work against the favor or interests of the principal (e.g. shareholders). Effectiveness of the Combined Code in

A Critical Assessment of Employee Engagement Essay

A Critical Assessment of Employee Engagement - Essay Example Employee engagement does not entail an initiative of the human resource, but a strategy that mainly targets an improvement of employee performance. Lack of interaction within most organizations makes it difficult to drive engagement.   The choice to improve worker engagement depends on the entire staff within an organization exerting effort to improve productivity. Most organizations fail in this venture because of lacking a business strategy (Guthrie, 2001). Scores of organizations lack the ability to identify engaged employees and maintain these workers in their organization for a longer period. Engaging employees without any concrete business result indicates that the employees feel unaccountable in terms of measuring their performance.   Further, organizations fail in terms of aligning organizational goals with aspirations of employees.   Lack of effective communication, lead to a disintegrated workforce that falls short of practical goals.   Without proper channels of co mmunication, employees are denied information essential in terms of understanding organizational goals and priorities (Kanungo, 1982). Organizations fail in terms of facilitating managerial and leadership improvement required in enhancing employee performance. Organizations tend to pursue employee engagement in means that seem infective in many aspects. Employers often look at the effort of initiating worker engagement as strenuous and does not impact on the businesses bottom-line instantly. Organizations tend to experience flaws while implementing strategies.... Organizations tend to pursue employee engagement in means that seem infective in many aspects. Employers often look at the effort of initiating worker engagement as strenuous and does not impact on the businesses bottom-line instantly. Organizations tend to experience flaws while implementing strategies for employee involvement (Craig & Silverstone, 2010). Organizations may view employee involvement as ancillary compared to the actual operations. For employee engagement strategy to work, organizations need to view their strategies meant to engage workers as, part of the whole organization’s business strategy. The engagement should focus on targets such as measurable business outcomes in relation to employee effort. What the management of most organizations fail to initiate, involves assessing employee efforts and accountability. The management further fails because they do not provide communication channel vital for aligning every worker’s actions in relation to the org anization’s overall goals (Maurer, 2001). On another note, organizations fail to engage employees due to a lack of a mechanism geared at integrating workers and structures within the organization. The management may lack an understanding of the tools necessary to facilitate leadership behaviour. Organizations rely on structures that do not accommodate changes related to employee engagement. They lack strategies necessary to define responsibilities vital in effecting change process (Tartell, 2012). This involves neglecting employees as important part of the business’s overall goal. Employee engagement works effectively in an environment that accommodates behavioural change. The ability to engage

4 Assignment Example | Topics and Well Written Essays - 500 words

4 - Assignment Example It is unethical to gamble with human life regardless of race, gender or social status for the sake of economic prosperity. Furthermore, this drug was banned in the US and Europe as it was responsible for massive liver damages. b. It is unethical to test drugs on children during the time of emergency. That is gambling with human life which is against the human rights. Chances are that the drug may destroy immune systems of the patients and lead to a high number of casualties. Lack of proper health care in developing countries does not mean that these people are lesser beings or are immune to toxins; this should not be an excuse. 2) Since hiring the child would be unlawful, the executive may opt to take care of the child by himself or look for a guardian locally or overseas. There are many people who would be willing to help the child to meet her daily needs. However, if the guardians are unwilling to live with her, then she may be taken to an orphanage. 3) a. Look at the oil excavation from two perspectives, the good side of it and the bad side. Think about the effect on the environs and the people. When the good outweigh the bad, then you can proceed. However, if there is any form of doubt safely etched at the deepest parts of your hearts, then abandoning such a task would be the plausible thing to do. b. Outsourcing may or may not a company’s best bet. However, outsourcing would be the best option when a company needs to speed up the production process and increase the quality of their output. Division of labor ensures that parties partake on tasks that best fit them. 4) It would be ethical to outsource the production process to developing countries when the company is facing the problem of the high cost of production and low sales returns. The most reasonable thing to do would be to look for cheaper labor even if it means job cuts for employees in the mother country. Failure to do so would lead to losses

Discrimination Against Prisoners with Learning Disabilities Essay

Discrimination Against Prisoners with Learning Disabilities - Essay Example An inexplicably huge population of prisoners has mental disabilities; the World Health Organisation (WHO) reports that a large number of prisoners in Europe have some kind of mental disorder, specifically learning disability. A current study conducted in New South Wales, Australia reported that 80% of the total prisoner population have a mental disorder. In the United States, more than half of the prisoner population are under medication for psychotic problems and major depression. Studies in the United Kingdom have reported a comparable situation. As reported by a current Prison Reform Trust study, prisoners with learning disabilities experience discrimination and other human rights violence. Among people with mental disorders those with learning disorders are still among the most discriminated and mistreated members of the society. According to the United Nations Special Rapporteur, â€Å"... [t]heir neglect is reflected in society at large, among the health professionals, and in the human rights community† (Rosenberg & Rosenberg, 2012, p. 105). This discrimination and neglect are even more severe in the prison environment in numerous countries. Current studies in several countries have revealed the huge population of prisoners suffering from learning disabilities and the severely insufficient attention given to their mental health care needs.   Some individuals with learning disabilities are at risk of criminal behaviour and are, thus, predisposed to have dealings with the criminal justice system.

Strategy Formulation - NIKE Research Paper Example | Topics and Well Written Essays - 1250 words

Strategy Formulation - NIKE - Research Paper Example They also experience high operation costs in markets that are not suitable for its products since they begin by sneakers. Opportunities The company has the opportunity of promoting its brands not only as sportswear but also as fashion-oriented products (Blakey, 2011). A number of people use NIKE products exclusively as fashion wears. It also experiences high demand for both footwear and clothing meant for leisure activities. The company should employ and development its use in internet sales that has been provided to increase its growing capacities with an excellent marketing platform. Threats Experience a large number of Competitors who replicate the product designs of NIKE and its business model (Bamberger and Meshoulam, 2000). Some of these companies that give NIKE stiff competition include Adidas-Solomon AG, Reebok, and many others. It experiences financial losses due to unstable costs and margins caused by the use of different international currencies. These are threats that res ult from the fact that it is involved in international trade where it has to buy and sell goods in different foreign countries. The model of its products has not changed much from what was designed by Knights. This has significantly reduced the competitive advantage with other similar products that have much improved. BCG Matrix Nike operates on segments including Apparel, equipment, and footwear that it supplies mostly in Europe, U.S, Africa and Middle East, Latin America and Asia pacific (Slack and Parent, 2006). However, NIKE has a problem with child particularly in the Nike air shoe, which has not only faced difficulties in its sale but has also received several, complains from the customers. Therefore, it is important that this shoe’s quality... The research tells how Phillip Knight a business graduate from the University of Stanford Nike initiated NIKE Company in the year1962. The company started has an importation business organization that dealt with sportswear including athletic shoes from Japan to United States. Originally, NIKE was known as the Blue Ribbon Sports. Later it was named NIKE after successful growths and expansions. Currently, the company indulges in business activities encompassing of designing, product development marketing of footwear, sporting equipment, apparel, and accessory product. It is the largest footwear seller all over the world. NIKE currently sells to over 160 countries all over the world including Europe, Australia, Canada, Latin America, Asia, and United States. Some of its facilities are in Oregon, North Carolina, Tennessee, and Netherlands. It also has leased facilities that include Nike-women stores, Nike-towns, Nike factory stores, and more than 100 administrative and sales offices. NIK E brands include Bragano, Converse, Cole Haan, Hurley, g series, and Baver. NIKE should introduce more products or improve on the currently available products in order. This initiative will improve the product outlook and satisfy the emerging consumer demand. The company needs to develop more products both in sportswear and fashion wear in order to expand its markets and increase the volume of sales. It should also expand further into foreign markets both in the future and currently through aggressiveness and being the leading footwear industry.

On the botton Essay Example | Topics and Well Written Essays - 500 words

On the botton - Essay Example xamples of Caesar, Genghis Khan and very recently Hitler can be used to show that the humans are a war loving people who like nothing better than a good fight. However, there are also shining examples of individuals within their history of great healers and guides such as Abraham, Mohammad and Jesus who seem to have positively influenced more people than many others. Clearly the most important time for this experiment has been the last century where tremendous upheavals were seen in political, social and economic terms (Friedman, 2006). It was the century where some people such as Malthus expected the world to run out of basic necessities such as food but progress made in terms of genetics and better crop growing methods proved him wrong. Quite frankly, the dangers facing the world in terms of food shortage are not finished but it seems that humans may be able to deal with the situation in the future (King & Elliott, 1996). There are also significant gains being made by the human race towards helping the poor of the world with increasing levels of globalisation which has helped bring wealth to many who could not dream of having such high level of resources (Bardhan, 2006). The situation may not be perfect since equality between various individuals remains an elusive goal but the improvements in the life standards for coming generations is all but assured. A large part of that is due to the improvements being made in the health of the humans due to their investments in medical research which will help them live better lives. Some of them may continue to damage themselves through cigarettes and high doses of food which may not be good for them but more and more are becoming conscious of their health and are seeking out ways to improve it (NIH, 2006). This may mean that humans continue to evolve as they have in the past and become better than what we think them to be. Given enough time, I believe that humans will understand what they are doing wrong when they see

Pre-Modern Appalachian Essay Example for Free

Pre-Modern Appalachian Essay 1. How is Appalachia statistically different from the rest of America in terms of income, health, home-ownership and educational statistics? The Appalachian statistics includes the states of West Virginia, Virginia, Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina and Tennessee. In these states 13.3 million people are living in poverty according to U.S. Census Bureau. The number of people in the region who did not have health insurance last year fell to 13.6 million from 13.7 million from the year before, and median incomes were up in all Appalachian states, where the median income ranged from a little over 36,000 in Mississippi to 68,080 in Maryland. (Appalachia Statistics, 2008). Nationally, the homeowner and rental Vacancy rate in 2010 were 2.4% and 9.2%. During the decade, the homeowner vacancy rate is increased 0.7% points, while the rental vacancy rate increased 2.3% points. (U.S. Census Bureau). The 2006 Mayor’s conference found that 51% of people who became homeless the year before were single men, 30% , were single women, 17% were families with children, and 2% wee un-accompanied youth. As reported in the â€Å"State of the South 1998†, the increased number of single parent homes, decreasing educational participation by males, high dropout rate, low numbers of bachelor’s degrees, the aging population and the changing workplace needs while Kentucky has made progress in the elementary and secondary area. Also post- secondary education and adult education/ the state still lags behind with too many under-educated adults. (South, 1998). 2. What does World System Theory contribute to our understanding of Appalachian distinctiveness? Social cognitive career theory provides a theoretical understanding of how cultural differences, resources, and barriers affect the vocational choices and actions of individuals from minority populations. (Bennett). By changing circumstances and recognizing career choices, can be limited by access to opportunities, personal obligations, and social barriers. Also, people living with severe constraints, such as transportation, communication, due to lack of employment opportunities. ( World-Systems). Regions under-development was due to its isolation from the modern world. Cherokee culture reacted to and was changed by incorporation, followed by a discussion of the ways in which capitalist values came to change social relations between in habitants of the world. World System is seen as an invaluable interpretive tool for reformulating the historiography of this region. Identification Terms: 1. Appalachian stereotypes in film- Appalachia is portrayed as stupid, ignorant, inbred people in society and has been the butt of jokes in movies, TV shows, comic books, cartoons, books, television and radio. This is where negative stereotypes reinforce negative attitude of the Appalachia Mountains and the people. Best way to explain: Jed, on the Clampets, found oil on his land shooting at a possum and the rich west coast banker and out of state corporation, made him rich! Truth is, Jed didn’t get a dime, they flashed a mineral deed at him and had the sheriff come and lock him off his own land. His children did have to leave to find work that much is true. This is how the mass media and the public view us as if we are so ignorant that they can steal our land, blow up entire mountains and turn our creeks orange on every western on television. 2. Development- To develop opportunities in life, jobs, advancement, education for betterment. We, as a society, also develop relationships with our children, parents, friends on a daily basis. It addresses issues of concern to developing countries relating to social and economic development. Development can also refer to land use, science and technology, social science, international and regional, Business and professionally, music. In the Appalachian Mountains, development would refer to change in the environment, family life and jobs. 3. The Ozarks- Native American people first inhabited the Ozarks 12,000 years ago. The Spanish arrived in 1500s, native people- Osage, Missouri, Illinois, Caddo tribe. French pioneers became the first permanent settlers but Scott Irish settlers who migrated from Appalachia eventually dominated the Ozarks and created a Appalachian culture. The Ozarks are located in the southern portion of the United States and occupies territory in the states of Kansas, Oklahoma, Missouri and Arkansa. 4. Bushwhacker- In Kentucky, we consider a bushwhacker as a person who lays in wait to rob or kill you or both. A person who is up to no good and is usually going to jail often is a bushwhacker for stealing cattle in every western I have ever seen. A guerrilla fighter named after William C. Quantrill of the Civil War. He led an attack on 150 people, who were shot, killed, or burned to death. His men were considered outlaws by Union forces, but they became an official Confederate troop in August of 1862. William Quantrill was considered the leader of what was to be called,,† Quantrill’s Bushwhackers†. 5. Scotch-Irish- They migrated from Appalachia eventually dominated the Ozarks and created an Appalachian culture. They were considered the primary heritage of people of Celtic culture Scotts, Scotts Irish. 6. Pre-modernity- Pre-modernity tended to see the events of life as being the result of the laws of nature, laws that could be understood by reason or rationality. In Appalachia, you can find people who tend to live according to many cultural values of the Celtics. Christians are more likely to be seen in and out of church and compartmentalize their lives. Living in clusters and developing their own communities where they live by whatever the laws of nature give them and be able to rationalize the reason. 7. Internalization- To incorporate the cultural values, motives of another or group as thru learning with socialization. In school, students have accepted multi- cultural education more when they think their peers accept inter-racial dating. Working or spending time with people from other races can lower one’s level of prejudice. Smith and Bylunds ,(1983) survey found that Appalachians are less likely to believe that racism is a large problem in the United States. Appalachian students may be less receptive to multicultural education. 8. Encyclopedia of Appalachian- Is the first encyclopedia dedicated to the region, people, culture, history, and geography of Appalachia. The encyclopedia has a collection of history, artifacts, and folklore and cultural and behavior patterns of the mountains. Included are history of the first settlers and ancestors and how they lived and raised their families. 9. Appalachian Museum/Norris Tennessee- The museum is located in the town of Norris in Anderson County. They offer viewing of a collection of historic buildings filled with artifacts and folk lore associated with Appalachian. It was established by John Rice Irwin on 65 acreas. The museum has been featured in national travel magazines, the Smithsonian magazine, and national and international newspapers. One of the most popular events, such as â€Å"Christmas in Old Appalachian, which attracts hundreds of Appalachian people who are musicians and craftspeople will introduce you to the cultures, beliefs, craft-making, making of foods and jelly. 10. Settlement patterns- Appalachia was slow to develop any substantial urban pattern. It shared with the rest of the south an emphasis on agriculture-that continued after other regions of the country had begun their rush toward manufacturing and urban living. People tended to stay where they were, and as time passed they became attached to the land, family and community. Film: A hidden America-Children of the Mountains, a documentary on 20/20/ABC News. Feb. 10, 2009. For two years, Diana Sawyer followed four Appalachian children who sleep in vehicles, avoid thievery, alcoholism and despair of their family and conditions surrounding the family. What they did not emphasize was that one boy was determined to better himself and he got a scholarship from football to attend college. Or the mother who walked 16 miles roundtrip, four hours total to get her GED. Which she did!!!!!! Or men who work 9 to 12 hours, 6 days a week underground despite the safety concern since it is the best paying job in the region. Also there are teachers, social workers, doctors and dentists reaching out and helping a population isolated by steep hills and lack of transport. They even showed a dentist who had converted a bus and traveled into the mountains to pull teeth, educate people on the importance of dental care. But what was discussed was the reason so many teeth had to be pulled out was that they drank too much mountain dew. This was stereotyping at its finest!!!!Most people I have ever known that was so poor that they couldn’t travel to the dentist, certainly didn’t have money to buy soda for themselves and their kids. It was usually† soupbeans and taters†!

How Bitcoin Works

How Bitcoin Works ABSTRACT Bitcoin is the simplest way to exchange money. Bitcoin is a software-based online payment system  described by  Satoshi Nakamoto  in 2008 and introduced as  open-source software  in 2009. Payments are recorded in a public  ledger  using its own  unit of account, which is also calledbitcoin.Payments work  peer-to-peer  without a central repository or single administrator, which has led the  US Treasury  to call bitcoin a decentralized currency. Although its status as a currency is disputed, media reports often refer to bitcoin as a  cryptocurrency  or  digital currency. INTRODUCTION Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and  everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. How does Bitcoin work? As a new user, you can  get started  with Bitcoin without understanding the technical details. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once Balances- block chain The block chain is ashared public ledgeron which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with  cryptography Transactions- private keys A transaction isa transfer of value between Bitcoin walletsthat gets included in the block chain. Bitcoin wallets keep a secret piece of data called a  private key  or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The  signature  also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called  mining. Processing- mining Mining is adistributed consensus systemthat is used to  confirm  waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a  block  that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends. Bitcoin for Individuals Mobile payments Bitcoin on mobiles allows you to pay with a simple two step scan-and-pay. No need to sign up, swipe your card, type a PIN, or sign anything. All you need to receive Bitcoin payments is to display the QR code in your Bitcoin wallet app and let your friend scan your mobile, or touch the two phones together (using NFC radio technology). Security and control over money Bitcoin transactions are secured by military grade cryptography. Nobody can charge you money or make a payment on your behalf. So long as you take the required steps toprotect your wallet, Bitcoin can give you control over your money and a strong level of protection against many types of fraud. Works everywhere, anytime Just like with email, you dont need to ask your family to use the same software or the same service providers. Just let them stick to their own favourites. No problem there; they are all compatible as they use the same open technology. Fast international payments Bitcoins can be transferred from Africa to Canada in 10 minutes. There is no bank to slow down the process, level outrageous fees, or freeze the transfer. You can pay your neighbours the same way as you can pay a member of your family in another country. Zero or low fees Bitcoin allows you to send and receive payments at very low cost. Except for special cases like very small payments, there is no enforced fee. It is however recommended to pay a higher voluntary fee for faster confirmation of your transaction and to remunerate the people who operate the Bitcoin network. Protect your identity With Bitcoin, there is no credit card number that some malicious actor can collect in order to impersonate you. In fact, it is even possible to send a payment without revealing your identity, almost just like with physical money. You should however take note that some effort can be required to  protect your privacy. The lowest fees out there Bitcoin’s high cryptographic security allows it to process transactions in a very efficient and inexpensive way. You can make and receive payments using the Bitcoin network with almost no fees. In most cases, fees are not strictly required but they are recommended for faster confirmation of your transaction. Protection against fraud Any business that accepts credit cards or PayPal knows the problem of payments that are later reversed. Chargeback frauds result in limited market reach and increased prices, which in turn penalizes customers. Bitcoin payments are irreversible and secure, meaning that the cost of fraud is no longer pushed onto the shoulders of the merchants. Fast international payments Bitcoins can be transferred from Africa to Canada in 10 minutes. In fact, bitcoins never have any real physical location, so it is possible to transfer as many of them anywhere with no limits, delays, or excessive fees. There are no intermediate banks to make you wait three business days. No PCI compliance required Accepting credit cards online typically requires extensive security checks in order to comply with the PCI standard. Bitcoin still requires you to  secure your wallet  and your payment requests. However, you do not carry the costs and responsibilities that come with processing sensitive information from your customers like credit card numbers. Get some free visibility Bitcoin is an emerging market of new customers who are searching for ways to spend their bitcoins. Accepting them is a good way to get new customers and give your business some new visibility. Accepting a new payment method has often shown to be a clever practice for online businesses. Conclusion We can Sendbitcoinfrom your computer, tablet, smart phone or other device, to anyone, anywhere in the world, day or night. Bitcoinis an innovative payment network and a new kind of money. Every informed person needs to know about Bitcoin because it might be one of the worlds most important developments. REFERENCES http://en.wikipedia.org/wiki/Bitcoin https://bitcoin.org/en/ https://www.weusecoins.com/en/

Effect Of Subliminal Advertising: Children

Effect Of Subliminal Advertising: Children Many of us find the idea of subliminal messages altering our thought processes to be horrifying today. Often seen as akin to brainwashing, the notion that advertisers rely on subliminal messages to prey on childrens minds, demanding their attachment to some new cereal, toy, or game, is equally if not more disturbing to many people. Yet despite the protests of those against advertising to children, the effects of normal commercials are hardly subliminal, and hardly cause uncontrollable or irreversible change in disposition or desire. Additionally, though the effects of product placement in movies and television may more compellingly be seen as subliminal, and likely impact children more than adults, the effects of such advertising are not necessary severe, irreversible, or long-term for children. In this essay, I review research findings related to subliminal advertisings effects on children. I argue that while product placement in movies and television does technically qualify as subliminal advertising that can be seen to significantly effect children (unlike traditional commercial advertising, which does not technically produce subliminal effects), neither product placement nor commercial advertising has been proven to have irreparable unconscious or subconscious effects that vary according to age. While children are more vulnerable to product placement advertising as subliminal messaging than are adults, children should nonetheless not be seen as victims of brainwashing, but merely as less-informed or autonomous actors in a world where we can avoid advertisings effects by critically receiving messages and providing an alternative voice or message to those less informed around us. Subliminal Advertising Versus Commercial Advertising As Rogers points out in his historical examination of the idea of subliminal market advertising, the idea of the subliminal advertisement came about in the late 1950s, when it was suggested that data projected briefly on television would reach the consuming public subconsciously, rather than consciously, providing a qualitatively stronger effect that could be advantageous to marketers. Despite a lack of scientific validation for this claim, which one early critic likened to the idea that a whiff of a martini is worse than a swallow (qtd. in Rogers 13), the idea caught hold in the popular imagination that subliminal advertising strongly effected people without their knowing it, in favor of advertisers interests. In one movie theater where messages to eat popcorn and drink Coke were projected quickly (and therefore subliminally) on the screen, it was claimed that sales skyrocketed (Rogers 13). Yet this early experiment was not confirmed by third parties or conducted with an eye to potential limitations, and other variables were not carefully considered. Additionally, organizations concerned with protecting ordinary citizens from subliminal messages, such as the Federal Communications Commission, did not find in their experiments that such messages had strong or even noticeable effects (Rogers 15). Later research adhering more closely to scientific standards confirmed on the contrary that a strong stimulus produces a strong response, and a weak stimulus produces a weak response, implying that zero perception equals zero response, and so subliminal means in practical terms no effect' (Rogers 15). It has been argued nonetheless that for young children who may not recognize the difference between television programming and advertisements, commercials serve as subliminal advertising, effecting their beliefs and behaviors without their control. As Goldstein notes, the argument repeated in nearly every document on advertising to children assumesthat commercials create wants because young viewers do not understand advertising and are therefore particularly influenced by it (Children and Advertising 5). However, Goldsteins review of empirical research highlights evidence suggesting that advertising to children does not strongly effect their behavior or attitudes, in comparison with other sources of influence and socialization (Policy Implications). Parents and peers play a role in shaping children, which is arguably stronger than that of any commercial or corporation. As Goldstein writes, children learn to be consumers in the same way they are socialized into politics or acquire the ir attitudes about the sexes-from a variety of sources, including family, friends, teachers, and the mass media (Policy Implications 9). Additionally, no research indicates that not comprehending an advertisement as such gives it a stronger impact. As with the claim regarding subliminal messaging more generally, if you cannot comprehend something, then there is no reason why it would more strongly influence you than would something you can comprehend. As Goldstein argues, if children cannot extract the commercial message, they are not in a position to act on it (Policy Implications 5). Studies in different countries and contexts additionally confirm that commercials have little impact on young children, despite intuitive but anecdotal evidence of children identifying goods and toys on commercials as things they would like to possess (Goldstein, Children and Advertising 6).. Thus, while the research remains open to interpretation in this complex area of study, claims that commercials extraordinarily impact the youngest should not be taken as the ultimate truth. In summary, the idea of subliminal advertising having a strong effect on children or people in general due to its incomprehensibility is not strongly backed up by research, despite its initial appeal. Neither adults nor children are necessarily effected strongly by advertising messages they do not consciously recognize as advertising, while it seems likely on the contrary that subliminal advertisements not consciously received have little to no impact. Product placement within television programming or movies better fits the description of subliminal messaging, however, as it does have an impact, albeit a manageable one, on people (such as children) who fail to notice it. Product Placement: Subliminal Advertising that We Can Manage While images flashing across the screen effect adults little more than commercials that children do not recognize impact children, subliminal messaging is likely more effective in advertising through product placement, where characters in a movie or television series smoke a particular brand of cigarettes or drink a particular kind of soda, whose brand is one very minor message that easily goes unnoticed in the context of a plot line or other character or story development. Research shows there are effects to product placement that go beyond those associated with traditional forms of subliminal messaging. However, the effects of product placement on children are not necessarily severe or irreversible, leading most to conclude that this form of advertising is not much more of a serious problem for children than are regular commercial advertisements. Though product placement can be understood as non-subliminal as products usually have exposure time measured in seconds rather than milliseconds, making the message easy to see, if one is looking for it, product placement may be considered subliminal nonetheless, as its effects can be taken to be tacit or implicit because recollection of the brands may be unreliable or unavailable (Auty and Lewis, Delicious Paradox 118). Studies have found that children do respond to this sort of subliminal messaging. In one study, half of the children were shown a clip from the movie Home Alone where Pepsi Cola is spilled during a meal, while the other half were shown a similar clip without the branded soda. The majority of the children who saw the Pepsi Cola chose Pepsi over Coke in a later research session, while the majority of those who did not see the Pepsi label in the clip chose Coke. These findings lead Auty and Lewis to conclude that given the tendency of young children to watch videos of t heir favorite films over and over again, the findings have ethical implications for the use of product placement in films targeted at young children who have not yet acquired strategic processing skillsthey have been affected by the exposure in some preconscious way (Childrens Choice 713). Another hypothesis of this study was that younger children would be more vulnerable to product placement than older children. This was not found to be the case, suggesting that age is not a major factor impacting a childs vulnerability to product placement messaging. However, whether one has advertising literacy, which can only be developed at adolescence, does impact the effects of product placement on an individual. As Auty and Lewis write, it appears as if a sophisticated understanding of advertising will actually militate against effective commercial communications because it will stimulate a counterargument (Delicious Paradox 127). When one recognizes an advertisement as a form of attempted manipulation, this critical orientation can disincline one toward the message to buy or desire a particular good or service. Because one requires a certain level of cognitive maturity to understand product placement and other forms of advertising in a critical manner, age therefore becomes cr ucial to understanding how it is that adults but not children can become immune to such messaging. Auty and Lewis regard this as a delicious paradox of product placement as subliminal advertising: adults can guard against preconscious perceptions simply by noting the appearance of a produce as a placement with a commercial origin while children 8-12 years of age need cues to produce counterarguments, thus failing to understand the product placement as a commercial message (Delicious Paradox 128). It seems, therefore, that product placement in film does effect children more so than adults as a form of subliminal messaging. Thus, while it remains the case that unnoticed messages often have little to not effect on people whatever age they are, adults can develop a form of immunity to product placement as subliminal messaging, whereas children are vulnerable to this form of messaging, though its impact remains variable and difficult to understand in a conclusive manner. Such findings have led to much scrutiny particularly of product placement of alcohol or tobacco products in films or television shows accessible by children. In the 1980s many felt certain that such subliminal advertising was inappropriately impacting young people, encouraging them to make unhealthy decisions in the interests of businesses. Yet there remains hope that, as with other forms of subliminal advertising, the effects of product placement on young people can be managed by parental influence and other shapers of young peoples behaviors and attitudes. As Goldstein argues, the best predictors of smoking are whether ones parents and friends smoke (Policy Implications 9). Advertisers have no monopoly in their influence, and on the other hand one can identify countries where smoking is prevalent while people have little exposure to cigarette advertisements (Goldstein, Policy Implications 10), suggesting that the relationship between advertisements and behavior is hardly inevitable . Thus, one can teach their children to critically view media messages and otherwise help shape choice so that the media does not do this for them. In conclusion, there is little reason to be afraid of subliminal advertisings effects on children. Research suggests that at all ages that which one does not comprehend will have a small to nonexistent impact on his or her behavior, attitudes, and desires, which implies that children who watch advertisements that they do not understand are unlikely to be brainwashed or effected in a strong way by the messages. Neither children nor adults are significantly impacted by subliminal messages or other commercials that go unrecognized as such, and thus we have little to worry about when it comes to the effects of subliminal advertising on children. On the other hand, product placement today comes closer to fitting the definition of effective subliminal messaging, as information can be delivered without audience recognition to create an effect on uncritical minds. Clearly children are disadvantaged with regard to product placement as they are not able to recognize product placement as a means of behavior manipulation, and thus this remains a cause of concern for those who fear that children are at risk of taking up bad habits due to product placement of alcohol or cigarettes, for example. Nonetheless, as with other forms of subliminal advertising we cannot recognize or comprehend, we should not be too fearful of the effects of product placement on children as a form of subliminal advertising, as the media is only one of many factors influencing children, including parents, friends, and educators. Subliminal advertising, while it may exist, thus has only a minor impact on children, overall, against other factors vying for childre ns minds.