Business Statistices ECON1193

Assignment Task 1: Case Study Analysis

Topic Future of Vietnam

Student name Phan Ngoc Bach
Student number S3741090
Lecture name Sienney L
Class time 8-11 AM

 Part A: Article Reading- The Future of ASEAN

ASEAN, which is a political, economic, cultural and social alliance of Southeast Asian
Nations, create strong growth among countries and increase global stature. Vietnam is a
member of ASEAN, so the itinerary and development motivation of Vietnam is closely
associated with this organization. From the report of Price Water House Coopers (PWC),
Vietnam economy is estimated to reach $327 billion USD in GDP by 2022, with 6,2%
growth rate that helps it in becoming the largest economy in CLMV team ( Cambodia, Lao
PDR, Myanmar, and Vietnam). The prediction of the size of Vietnam’s economy is described
by the chart below.
Participating ASEAN delivers lots of opportunities for Vietnam to get foreign direct
investments (FDI) and investments of the internal organization. In fact, Vietnam is one of
two countries that attract the most FDI as well as intra-regional rise 14% which is showed in
the chart below, mainly concentrating on agriculture and mining aspects. Increasing
production investments and support policies of the government make a substantial
outstanding contribution to the positive FDI growth of Vietnam. Particularly, FDI create
conditions for Vietnam to produce higher value segments such as cars, electronic products,
instead of labor-intensive productions.
ASEAN stands out in its possession of an abundant labor force with low wages, with a scale
of 100 million workers and expected to add 59 million people from 2015 to 2030. Vietnam is
also one of the countries that contribute the most labor resources in the alliance, proving
through population scale and the percentage of people in working age. Specifically, the
population of Vietnam is 94 million people and the population growth is 1,3% that means
each year the labor force will be added 1 million people and ensure the stability of the labor
market due to 52% total population is in working age. The chart below shows the number of
Vietnamese employees has increased every year to confirm that Vietnam is a stable source.
Simultaneously, the educational level of workers rises 22% that is also a positive thing as the
knowledge standards set highly by international companies.

Vietnam leads the growth of per capita expenditure in ASEAN organization, with the
outstanding CAGR growth rate is 10,1%, based on the chart below. The number of
Vietnamese middle class is projected to reach 44 million people by 2020 with income per
capita is estimated $2,009 USD and 95 million people by 2030. Therefore, a fast-growing
middle class promotes a high demand for services and products.
Vietnam has the lowest penetration rate and density of banks in ASEAN, citing only 30,9
million people over the age of 15 who have bank accounts and an average of 3,8 banks serves
100,000 citizens. Thus, the financial market in Vietnam brings more challenges and
opportunities for international and national investors, if it is compared with stable financial
markets such as Singapore, Thailand, Malaysia, etc. In addition, due to rising income, people
have a prosperous life and increased urbanization process that makes citizens easier to access
financial services leading to high credit growth of 28,6% in 2016.
Vietnam is a potential market in ASEAN because it has not been exploited in all financial
market. First of all, digital financial services have low digital technology costs and the lowest
density in the region. Secondly, increasing income also makes citizens use health and life
insurance services. Besides, credit card growth is still low because the Vietnamese market is
mostly traded in cash and the growth rate of consumer loans is showing positive signs when
reaching $51,54 billion USD (65%). Importantly, the partnership can create a connection in
Vietnam between international and domestic companies to approach suitable customers.

Consumer goods sector (food and drinks, apparel and footwear, consumer electronics)
contributes to the growth of ASEAN economy and ASEAN is also the third largest consumer
market in the world, accounting for 26,3%. According to the chart below, Vietnam is one of
the leading good consumer markets in the alliance reaching 37,5%, is expected to expand
7,7%, so it is projected to lead growth with CAGR of 10,2%. That proved increasing incomes
and the number of middle class result in rising goods consumption.
Vietnam is one of the two largest agricultural exporters in ASEAN. Thus, the food industry
has many opportunities to increase skyrocket in Vietnam, if it is invested in applying science
and technology to large farms. Obviously, finding and attracting FDI through ASEAN assist
Vietnam in improving production and food processing.
Vietnamese people tend to buy goods online more strongly than other markets in ASEAN, so
e-commerce is growing rapidly but it still nascent. This is a potential chance which is for
foreign investors to cooperate with a Vietnamese company to explore this field, is convinced
by the chart below when comparing with other markets.

The major obstacle for Vietnam when integrating with ASEAN and the world is transport
infrastructure systems. Fundamentally, they affect the competitiveness of Vietnam in the
organization and become the strategic development of the government to improve them. In
fact, the infrastructure in Vietnam is lagging behind developed economies in ASEAN even
more than Indonesia and Philippines in term of infrastructure quality. Consequently, Vietnam
is increasing infrastructure investment and based on the chart below, the construction
investments reach 11,5% which is double GDP by applying public-private partnership (PPP),
in other words, attracting private construction investors. For example, 200km Dau Giay-Lien
Khuong Expressway (worth $ 3 billion USD) is applying the PPP method.
Vietnam gains many benefits and has many positive contributions for the growth of ASEAN
as a member of ASEAN which the third Asian economy and the world’s third largest labor
market. The increase in trade influence in ASEAN can affect seriously to dependent
economies like Vietnam if the economic growth declines. It is crucial for Vietnam to have
trade rebalancing between domestic and foreign as well as internal and external partners in
ASEAN. Moreover, almost all international investors are not satisfied with the policies and
laws in Vietnam, so it is necessary to streamline the legal system to facilitate FDI in
Vietnam.

Words count: 1005

Part B: Descriptive Statistics Analysis

Phantom in KW Lightspeed in KW
Mean 124,82 138,05
Median 119 129
Mode 124 114
Standard Deviation 52,08 55,11
Range 248 320
 Sample Size 94 96
Maximum 294 385
Minimum 46 65

Based on the data table above, it is easy to determine that Phantom is more powerful than
Lightspeed. Most of data show the mode of Phantom (124 KW) is more than Lightspeed (114
KW), in other words, 124 KW is the most common result of the measurement within 96
participating cars, or 124 KW is the most occurence rate. Importantly, although the median
of Phantom (119 KW) is less than table Lightspeed (129 KW), Phantom popular
measurement results located higher positions with the value of median, leading to Phantom
result more convinced than another. In addition, data was record standard deviation of
Phantom (52,08) is less than Lightspeed (55,11) that means the distance between mean and
measured values of Phantom is shorter than Lightspeed. Logically, the shorter distance
makes the mean value more reliable that results in the mean value of Phantom is more
exactly than Lightspeed. Beside that, it is crucial to explore the relationship between Range
and Sample Size of two data tables. From Phantom aspect, data present its Range (248) is
less than Lightspeed (320), and its Sample Size (94) is less than Lightspeed (96).
Specifically, the difference of Range between Phantom and Lightspeed is pretty huge (72),
while the deviation of their Sample Size is relatively small (2). Particularly, the aggregation
of Phantom cars is less than Lightspeed cars, but two aggregations of measured paticipation
of two types of car is nearly the same about size. Consequently, data of Phantom is more
convincing and reliable than Lightspeed because the possibility of errors is fewer in the
measurements. Looking at the picture below, it is easy to find the reaction of a outlier for
each type of car, the measured value of Lightspeed’s outlier (385 KW) is much larger than
Phantom (approximately 294 KW), while Phantom’s minimum measurement value (46 KW)
is smaller than Lightspeed (65 KW). Both the two factors affect the accuracy of the average
value even if the Lightspeed’s mean value (138,05 KW) is greater than Phantom (124,82
KW), that is still not convicing. Simply, the maximum and minimum values of Lightspeed is
more than Phantom, respectively 91 KW and 21KW that leads to mean value of Lightspeed
is lack of accuration if comparing with Phantom. Overall, from the results of statistics and
the analysis, Phantom’s results are accurate as weel as the possibility of data error fewer than
Lightspeed leading to the conclusion that Phantom is more powerful than Lightspeed.
Words count: 407