1.

Political
1.1.1 Political stability
Political stability refers to the long-term viability and consistency of a government
system led by a political party.
According to statistics from the electronic financial magazine, Vietnam is one of the
world's top 78 percent of countries for electronic transactions, and one of the top 38
percent for consumer protection policies; 45 percent of countries have a policy to protect
personal data and Cyber Security Laws are in place in 75% of jurisdictions. The e-
commerce industry is also impervious to scams, such as supply of counterfeit products,
low-quality goods, and infringement of image copyrights and intellectual property rights.
A product image may be copied and posted on a variety of websites for a variety of
prices.
1.1.2 Tax
Vietnam's tax policy and administration system are increasingly being completed to meet
the criteria of enterprise growth and economic competitiveness, according to Law No.
38/2019 / QH14.
1.1.3 Law of e-economic
E-commerce is governed by Decree 52/2013 / ND-CP. Electronic commercial law
incorporates both traditional and modern codes. Legislation on e-commerce are
intertwined with laws from a variety of legal branches. France is a country in Western
Europe.
The e-commerce law is behind the times, so it is rapidly outdated. Goods and intangible
objects are covered by laws on covered electronic commerce. E-commerce laws are
primarily enforced on the network environment.
1.1.4 The minimum of salary
There will be several different work positions in the e-commerce industry:
- E-Commerce Assistant jobs pay between 3 and 4 million dollars/a month.
- E-Commerce Specialist salaries range from $7 million to $15 million per month.
- The salary for the position of Head of E-Commerce Department is between 15 and 20
million dollars per month.
- The salary of the Director of E-Commerce will rise as the company's profit after tax
rises of business.
- The National Wage Council decided to raise the provincial minimum wage by 5.5
percent by 2020 (an increase of 150,000-240,000 VND), ensuring that workers have a
living standard that is 100 percent of the national minimum wage.
1.1.5 The requirement of labelling product
- Article 9 of Decree 43/2017 / ND-CP on goods labels states that organizations and
persons responsible for labeling products, including additional labels, must ensure honest,
straightforward, and precise labeling that accurately reflects the nature of the products.
Labeling of products sold for domestic circulation is the responsibility of the production
group or individual of goods.
- Other organizations and individuals who carry out the labeling are also responsible
labels whether organizations or individuals responsible for labeling products need the
group.
- Other organizations and individuals who carry out the labeling
If the exported goods are unable to be exported, are returned, or are granted to a third
party and the associations or people who bring the products into circulation on the market
must label them according to the provisions of this decree.
1.1.6 The requirement of employee benefits
- When working at the company Karma, this is thought to be an always-on welfare of
workers. Employees would have access to a variety of benefits, including social security
and health insurance.
- At a rate that is subsidized by the industry, health insurance, unemployment insurance,
casualty insurance, ancillary benefits, vacations, and days allowances are offered.
1.2 Economic factors
1.2.1 Economical systems
- The current Vietnamese economy is a socialist market economy. The state business
sector plays a pivotal role in this multi-component, in-market economy.
- The following are some of the notable advantages of this economy: - It is a mixed
economy that operates under the market mechanism while still being regulated by the
government:
- Having a diverse economy with a variety of ownership structures and economic areas.
- Existing as a modern, globally integrated market economy.
. However, they have many limitations:
- The Vietnamese government has not created a really healthy business environment.
. Equality:
- The legal system of Vietnam still lacks uniformity, overlaps with many Laws
Having been promulgated for a period of time not yet implemented, it has been revised,
many laws have been enacted but does not go into practice.
1.2.2 The stability of exchange rate
- “Buying and selling prices of USD at commercial banks (commercial banks) by the end
of 2019 almost unchanged from the same period in 2018, hovering around 23,100VND /
USD (buy in) and 23,250 VND / USD (sell out). In comparison to previous years, when
the VND/USD exchange rate closely tracked market trends, this trend has reversed.
- The response was relatively strong exchange rate adjustment policy of the State Bank of
Vietnam, as quoted in Daily Finance Magazine on January 26, 2020. international
currency, particularly the movement of the CNY, as well as the response was relatively
strong exchange rate adjustment policy of the State Bank of Vietnam. Thanks to the
government's macroeconomic stabilization policy, the VND / USD exchange rate is
always is operated in a stable direction.
- This trend has not only been maintained since 2019, but it fluctuated within a narrower
range (about 1%). A stable VND/USD exchange rate would make it easier for foreign
investors to invest in the manufacturing of goods, thus increasing support for the supply
of goods for trade electronics such as Shopee.
1.2.3 Labor costs
- Mr. Paul Tonkes, Director of Industrial & Logistics Services Cushman &
“Low business costs, a booming middle class and a boom,” says Wakefield flexibility in
changing regulations has helped Vietnam reach 69th out of 190 countries in the World
Bank's "Favorable Business Ranking" gender, above the APAC regional averages and
above competitors in Indonesia, Philippines and Laos. Labor prices in Vietnam are the
third lowest in Asia, after Malaysia and China. Because labor in Vietnam is cheap, there
is a lot of manpower available for delivery. Shopee can be purchased in bulk for a low
price.
1.2.4 The growth rate of economy
- In 2019, the gross domestic product (GDP) increased by 7.02 percent to 265 billion
dollars, above the National Assembly's target of 6.6 percent to 6.8 percent. Agriculture,
forestry, and fisheries increased by 2.01 percent, manufacturing and construction
increased by 8.9 percent, and the service sector rose by 7.3 percent in the overall growth
of the economy. In 2019, Vietnam's export value to the South increased by 8.1 percent to
263.45 billion USD, while imports increased by 7% to 253.51 billion USD.
- The total value of products imported and exported was 516.96 billion dollars. The rise
in imports helps to increase the number of foreign products that can be traded through
trading E-commerce, giving consumers more choices.
1.2.5 Labor qualifications
- According to statistics from the General Statistics Office, diplomas and qualifications
only account for 22.37 percent of the total workforce (workers with graduate degrees or
higher account for 10.82 percent; college accounts for 3.82 percent; intermediate level
accounts for 4.65 percent; and main level accounts for 3.08 percent of the total
workforce).
- The number of trained workers is just a third of that of South Korea, Taiwan, and
Singapore, despite the fact that in many countries, the labor training rate has surpassed
50%. The amount of skilled workforce is low, making the work volume unsecured.
1.2.5 The inflation index
- Inflation in Vietnam is 2.73 percent in 2019, the lowest of the past three years (it was
3.54 percent in 2018 and 3.53 percent in 2017). Low inflation encourages people to save
and spend their money. Inflationary in nature. This level enables farmers to purchase raw
materials while still employing labor at a lower cost. They also aid in the stabilization of
the money market. Low inflation encourages people to invest in their homes and e-
commerce.