A/ ASSESSMENT RECAP

Task: A report detailing the repercussions of the current economic development in Vietnam on the company you assessed in the previous report.

Research Areas:

●                  GDP analysis

●                  Factors affecting AD-AS

●                  Inflation, interest rates

●                  Financial markets

●                  International comparative advantage

●                  Trade agreements

I. Introduction

II. Macroeconomic Overview of Vietnam

III. Inflation and Interest Rates in Vietnam

IV. International Comparative Advantage and Trade Agreements

V. Conclusion and Recommendations

B/ DEFINITION

● Gross Domestic Product (GDP): The total value of all goods and services produced in a country within a specific time period, typically measured annually.

● Aggregate Demand (AD) and Aggregate Supply (AS): AD-AS model analyzes factors influencing the economy. AD represents total demand for goods and services, and AS represents the total supply. Changes in these factors can impact GDP and the price level.

● Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power. It is commonly measured as the percentage change in the Consumer Price Index (CPI).

● Interest Rate: The cost of borrowing or the return on investment, expressed as a percentage. Central banks use interest rates to influence economic activities and control inflation.

● Financial Market: A marketplace where buyers and sellers trade financial securities, including stocks, bonds, commodities, and currencies.

● International Comparative Advantage: The ability of a country or business to produce a particular good or service more efficiently than other countries, allowing for more competitive trade.

● Trade Agreements: Formal agreements between countries to facilitate and regulate trade. They often involve reducing tariffs, quotas, and trade barriers to promote economic cooperation.

● World Bank - Vietnam Historical GDP Data​​.

● Vietnam Inflation Rate

● Inflation, consumer prices (annual %) - Viet Nam

● What Causes Inflation?

● Vietnam Gasoline Prices

● Engineer shortage may harm US plan to turn Vietnam into chips powerhouse | Reuters

● Vietnam: real interest rates 2022 | Statista

Vietnam: deposit interest rates | Statista

● Chance for another rate cut this year: experts | Business | Vietnam+ (VietnamPlus)

● Central bank highly valued for flexible monetary policy governance | Business | Vietnam+ (VietnamPlus)

● S&P Global Market Intelligence, 2023. Vietnam Economy Moderates in Early 2023

● Vietnamplus, 2023. Vietnam’s inflation forecast to slow to 4% in 2023: ADB

● Reuters, 2023. Vietnam c.bank cuts refinance rate by 50 bps to support growth

● Vietnamplus, 2023. Central bank cuts policy interest rates to spur growth

● S&P Global Market Intelligence, 2023. Vietnam Economy Moderates in First Half of 2023 as Exports Slump

● Reuters, 2023. Vietnam cuts interest rates again as economic growth slows

● Tuoitrenews, 2023. Vietnam cuts interest rates again as economic growth slows

● Vietnam Briefing, 2023. Vietnam Q3 Labor Market Update: Increase in Workers, Employment

● Viettonkinconsulting, 2023. Socio-Economic Situation in Vietnam Q3 2023

● Vietnam.vn, 2023. First 5 months of 2023: CPI, inflation slightly increase

● The Saigon Times, 2023. Vietnam’s inflation forecast to reach 4.8% in 2023  

           I.     Introduction (suggest 100 words)

● Brief introduction of the company (name, industry, size, time of operation in the Vietnamese market, future strategy)

○ Concise overview of the company, including its name, industry, and size.

○ Duration and nature of the company's operations in the Vietnamese market.

○ Company's future strategic directions or goals within Vietnam.

Example: Momo, a prominent e-wallet in Vietnam, operates in the financial technology industry. Since its inception in 2013, it has grown significantly, becoming one of the leading digital payment platforms. With a focus on user-friendly services, Momo continues to play a key role in transforming Vietnam's digital payment landscape and aims to further enhance its services for future market expansion.

● The purpose of the report (understanding of the current economic landscape in Vietnam and articulate how these factors influence the specific company)

○ Explore and understand the current economic environment of Vietnam.

○ Factors influence the specific operations and strategies of the company.

○ Establish a context for the company's strategic decision-making in response to the economic conditions of Vietnam.

○ Identify potential opportunities and challenges for the company arising from Vietnam's economic landscape.

Example: The report aims to comprehensively analyze the current economic landscape in Vietnam and delineate its implications on the specified company. By scrutinizing factors such as GDP, AD-AS dynamics, inflation, interest rates, financial markets, and international trade, the report seeks to provide a nuanced understanding of the economic context, enabling insightful assessments of the company's performance and future prospects.

        II.     Macroeconomic Overview of Vietnam (suggest 400 words)

1.                    Vietnamese economy overview

Example: With an impressive annual GDP growth averaging around 6.5%, Vietnam's economy has soared to over 366 billion US dollars in 2021. The nation maintains a stable population growth rate. Projections from the IMF anticipate Vietnam's GDP per capita to reach 4,162.94 USD by 2022, positioning it at 117th globally. The economic structure reveals a diversified landscape, with Agriculture-Forestry-Fishery contributing 13.96%, Industry and Construction comprising 34.49%, and Services dominating at 43.44%. This economic overview showcases Vietnam's robust growth, strategic sectoral distribution, and a promising trajectory in the global economic landscape.

 Suggested ideas:

○ For the most recent GDP data: World Bank - Vietnam GDP Current US$​​.

○ For historical GDP data: World Bank - Vietnam Historical GDP Data​​.

Source:

● A brief overview of the Vietnam economy

● GDP bình quân Việt Nam năm 2000 xếp thứ 173/200 thế giới, năm 2022 thay đổi thế nào?.

● THE MAIN INDUSTRIES IN VIETNAM

● GDP năm 2022 ước đạt 8,02%, cao nhất giai đoạn 2011-2022

Example: Vietnam's economic landscape witnessed a remarkable upswing with a GDP growth rate exceeding 8%, a historic achievement after decades. The foreign direct investment capital realized soared to nearly 22.4 billion USD, marking a substantial 13.5% increase from the previous year, the highest in the last 5 years. Government spending surged, reaching VND 784,651.87 billion in 2021, a notable increase from VND 422,452 billion in 2020. The trade surplus expanded significantly, rising from $0.85 billion to $1.51 billion compared to the same period the previous year. The first four months of 2023 saw Vietnam maintaining a robust trade surplus of 6.35 billion USD, surpassing the 2022 figure of 2.35 billion USD.