INTRODUCTION

Vietnam is a developing nation with a large population. In the past three decades, it has had to recover
from the devastation of war, the loss of funds from the former Soviet Bloc, and the rigidity of a centrally
planned economy. Vietnam is a country that is located in Southeast Asia.
After 1975, when North and South Vietnam reunited, the country's economy remained essentially
unchanged until 1985. This time span spanned the years 1975 to 1985. However, market reforms have
been implemented since then. These reforms have opened the country to global investment and
significantly altered the business climate in Vietnam. Because of these improvements, the business
climate in Vietnam has significantly improved.
Vietnam's economy has risen at one of the quickest rates in the world during the past several years. Each
year from 2004 to 2007, the GDP increased by more than 8%. After reaching a peak of more than 8%,
growth slowed to 6.2% and 5.3% in 2008 and 2009, respectively.
In 2009, the government employed both fiscal and monetary policies that stimulated economic
expansion. This ensured that the economy would grow sufficiently to survive the entire year. Individual
consumers' buying patterns are negatively affected by the growth in unemployment, the decline in
remittances, and the slowdown of foreign direct investment.
Due to the decline in economic activity and the stimulus package, the government deficit expanded
substantially in 2009. It is anticipated that the deficit would remain elevated in 2010. This is because the
deficit increased substantially in 2009. There is a significant likelihood that the government's debt will
continue to increase, and since half of it is denominated in a foreign currency, it will be susceptible to
fluctuations in exchange rates. This increases the likelihood that a sovereign nation will not carry out its
responsibilities.

POLITICAL RISK
Political risk is often described as the hazard that political instability or change poses to commercial
interests. Political risk exists in every nation on the earth, while its severity and character vary from
nation to nation. Changes in government policy to manage currency rates and interest rates may pose
political risks.

Vietnam Political Scenario

Vietnam is a one-party state ruled exclusively by the Vietnamese Communist Party (CPV). The
government then implements the primary policy decisions and strategic direction established by the CPV.
The CPV General Secretary, the State President, the Prime Minister, and the Speaker of the National
Assembly are referred to as the "four pillars" of government. Vietnam is one of the most politically stable
nations in Southeast Asia. Control is maintained by the CPV. In addition to sustaining the one-party state
system, safeguarding territorial integrity, and supporting social order, its fundamental purpose is
economic growth. Vietnam hopes to become a developed nation with a high income by 2045, an upper-
income nation by 2030, and a middle-income nation by 2025. Vietnam recognizes that additional
economic reform and sustained growth are necessary to attain this objective.

Recent Development Affecting Businesses

Economic Events
The EU-Vietnam Free Trade Agreement (EVFTA) goes into effect on August 1, 2020, after lengthy
negotiations. It is anticipated that Vietnam's GDP in the first three months of 2021 will increase by 4.48
percent compared to the same time the previous year, illustrating the country's adaptability.

Political Events
In January 2021, the Vietnamese Communist Party convened its thirteenth Party Congress. General
Secretary of the Party Nguyen Phu-Trong was re-elected for a third straight term. The three important
leadership positions, including President, Prime Minister, and National Assembly Speaker, were also
filled.

Government Policies
Foreign Investments
Foreign interests must be registered by foreign investors. Foreign investment projects may be approved
by the province Department of Planning and Investment or the board of administration of the industrial
zone or park where the project is located. Before they may be given to the local investment authority,
however, larger projects and projects in particular industries require "decision on in-principle investment"
permission from higher-level government entities, such as the National Assembly, the Prime Minister, or
the provincial People's Committee.

Restrictions on Foreign Shareholders

If relevant, foreign investors may also be obliged to adhere to investment criteria or restrictions. Foreign
ownership limitations are just one example of popular investment criteria and restrictions.

• Constraints on the business sector.

• Requirements for investment kind.

• Constraints due to location.

• Requirements for Vietnamese partners' eligibility.

• Other conditions or demands particular to industry sectors.

Restrictions on Stock Acquisition

Foreign investors who purchase shares are subject to the same restrictions as those who incorporate a
subsidiary. Therefore, international investors must comply with the constraints governing ownership
limits, investment scope, qualification of Vietnamese partners, and any other sector-specific conditions or
requirements.
Specific Industries
As a result of its 2007 entrance to the World Trade Organization (WTO), Vietnam has made numerous
service sector obligations under the Schedule on Specific Commitments in Services. If a foreign
investment incorporates the business operations described in these WTO agreements, the investment
criteria and restrictions outlined in those documents will apply in addition to applicable local law. If a
foreign investment involves commercial activity not defined by Vietnam's WTO commitments, only
domestic law applies. If domestic legislation is silent, foreign investment may nonetheless be permitted
on a case-by-case basis.

The Law on Investment of 2020 and its accompanying rules describe various economic activities for
which foreign investment is now prohibited or subject to conditions.

Restrictions on Conducting Business with Specified Nations,

Territories, Entities, Organizations, or Individuals
Typically, there are no limitations on conducting business with particular nations or territories. However,
Vietnam is not compelled to provide Cayman Islands and British Virgin Islands investors access to its
market. Foreign investment permission for these investors in Vietnam is given on a case-by-case basis.

Business Type : Ranking

Economic Risk
In the previous six months, both industrial and consumer spending have increased significantly,
propelling Vietnam's economic recovery forward. Standard Chartered Bank projects Vietnam's economic
growth to be 7.2% in 2023 and 6.7% in 2024, and inflation to be 1.1% in 2024. Vietnam's GDP growth
has increased to almost 8.02% in 2022, with a robust development in 2022. The annual inflation rate in
Vietnam rose from 4.55 percent in December 2022 to 4.89 percent in January 2023.

Potential threats include commodity price declines, interruptions in global supply chains, the introduction
of new COVID-19 variations, and a recession or stagflation in significant export markets. Domestic
challenges include continuing labor shortages, the potential for rising inflation, and heightened banking
sector vulnerabilities.

The Vietnamese economy has demonstrated resilience despite trade fears and China's lackluster
development. This fast economic expansion is the result of a change in labor from agricultural to
manufacturing and services, private investment, a developing tourism industry, increasing wages, and
urbanization. Some industries, such as industrial production, textile manufacture, electronics
manufacturing, and seafood production, are undergoing substantial expansion. Vietnam's exports account
for an increasing share of its gross domestic product. In 2020 and 2021, growth decreased due to the
COVID-19 outbreak, but remained favorable at 2.9% and 3.1%, respectively.

According to the IMF, the ratio of government debt to gross domestic product was 41.67% in 2020, up
from 41.29% in 2019 and 39.71% in 2021. In 2022 and 2023, it is expected that the rate will stabilize at
40.21 and 40.51%. This sluggish growth is attributable to the tightening of monetary policy and the
adoption of new restrictions on government guarantees. The economic expansion of Vietnam is
underpinned by an extensive trading network, growing wages, and domestic consumption. However,
labor prices remain competitive, which helps to attract foreign investment. Among the economic
constraints were inadequate infrastructure, an unfriendly business climate, anticipated public sector
changes, increasing inequality, and weak financial institutions. The budget deficit remained below 4% of
GDP in 2021 as a result of tax reform and the privatization of state-owned firms. (Financial Post, 2022).
Approximately forty percent of Vietnam's debt has a medium- or long-term maturity, which poses a
substantial risk because forty percent of this debt is denominated in foreign currencies and so poses a
currency risk. In spite of this, the government continues to intervene in both directions to keep the Dong
within a restricted range relative to major international currencies and to accrue foreign reserves.

The unemployment rate in Vietnam remains extraordinarily low. It rose to 3.3% in 2020 from 2.2% in
2019 and 2.8% in 2021. The rate in December 2022 was 2.32 percent, while the rate in the first quarter of
2023 is predicted to be 2.40 percent.

Fund Mondial economic, October 2021 Reduction of poverty, development of higher education, and press
freedom are examples of social issues. Vietnam is placed 77th out of 180 nations on the Corruption
Perceptions Index 2022 by Transparency International, up from 87th a year earlier.

Economic Freedom Indicator

The Economic Freedom Index measures ten components of economic freedom, including Rule of Law
(property rights, freedom from corruption), Limited Government (fiscal freedom, government
expenditure), Regulatory Efficiency (business freedom, labor freedom, monetary freedom), and Open
Markets. Regulatory Efficiency (business freedom, labor freedom, and financial freedom) and Open
Markets account for fifty percent of the total score (trade freedom, investment freedom, financial
freedom). Each freedom in these four categories receives a score between 0 and 100 out of a potential
200. Simply taking the average of those 10 rankings helps us to identify where a country stands on the
spectrum of economic freedom.

Score 60.6/100

World Rank 84
 Regional Rank 18

Business Environment Ranking

The methodology underlying the business rankings evaluates the quality or attractiveness of the business
climate in each of the 82 nations that The Economist Intelligence Unit analyses for its Country Forecast
reports. The order of these nations is from best to worst. It examines 10 distinct factors or categories,
such as the political environment, macroeconomic environment, market opportunities, government policy
regarding free enterprise and competition, and government policy addressing foreign investment.

Score 6.25/10

World Rank 46/82

Major Macro Indicators

Risk Assessment:
• Rate of growth will return to levels seen before the outbreak
It is projected that growth would accelerate in 2022, fueled by sustained economic recoveries among
trading partners and domestic demand. This is because it is anticipated that the global economy will
continue to expand. On the other hand, challenges linked with epidemics may continue to be a problem at
both the regional and the global levels. If outbreaks persist, the government may opt to implement
additional restrictions. This will continue to exert pressure on the manufacturing sector, which accounts
for 17% of the nation's gross domestic product, as well as the agricultural supply chains. On the other
hand, it is projected that the foreign demand would continue to be robust in the year 2022, notably for
electronics, textiles, and garments. Vietnam is no longer at risk of accruing punitive tariffs from the
United States, which labeled Vietnam a currency manipulator in 2020. As a result of restrictions, firms
reduced their production levels during the first nine months of 2021, although this had little to no effect
on Foreign Direct Investment (FDI). On the other hand, it is projected that it will make a comeback since
Vietnam continues to be intriguing to foreign investors who are seeking diversification and shifting firms
away from China. This is the primary reason behind the belief that it will return. The tourism industry,
which contributed around 10% of GDP in 2019, has been significantly damaged as a result of the closure
of international borders effective in March of 2020. As a result of ongoing travel restrictions in China (the
Zero COVID campaign) and cautious behavior on the part of Koreans, it is anticipated that the business
would recover gradually by 2022. Having said that, the good effects of government incentives on
domestic tourism should continue to somewhat outweigh the effects of the government's measures that
have a negative influence. It is projected that household spending, which accounted for 69% of GDP in
2019, will gradually recover provided that restraints are relaxed, mainly on manufacturers and workers. In
2019, domestic consumption accounted for 69% of the total. In the second half of 2021, the
unemployment rate reached record highs, reaching 2.9% in September 2021; it will take some time for the
economy to absorb the consequences of this record high. As a result of the recovery in domestic demand
in 2022, the inflation rate should gradually approach the target of 4%. Therefore, the SBV, which is the
central bank, should either maintain the status quo on its policy rate or raise it to the level it had prior to
the outbreak. Demand for credit ought to build up again in 2022, and it will continue to benefit from
credit easing measures up to June 2022. These steps could take the shape of debt restructuring or interest
rate reductions on existing loans; in either case, the demand for credit is likely to increase. On the other
hand, an increase in loans that are regarded to be non-performing is anticipated for the year 2022.
•The budget deficit is still quite high, although the current
account has improved
As the consequences of the COVID-19 outbreaks that began in late 2021 may continue to be seen in
2022, it is probable that the budget deficit will continue to be of a reasonably substantial extent. In
addition, the government's efforts to expedite the completion of ongoing public infrastructure projects
would lead to an increase in expenses. The progression of these projects was hindered due to the use of
containment measures at the various construction sites. In order to preserve equilibrium, a rise in
expenses must be counterbalanced by a rise in revenues, which must be supported by expanding
momentum. It is projected that the public debt-to-GDP ratio will continue its recent downward trend.
Despite this, the debt is still susceptible to fluctuations in currency values, as forty percent of it is
denominated in a foreign currency.
It is projected that the current account surplus would make a comeback, which will be fueled by an
increase in the trade surplus and robust demand from foreign clients. The nation has profited from the
relocation of industrial operations from other nations; to improve its trade balance, it should continue to
build its export-driven economy. As a direct result of the recovery of consumer and investment demand, it
is anticipated that imports will continue to exhibit signs of expansion. In addition, Vietnam is one of the
top 10 countries in the world to receive remittances, and its current account could gain from ongoing
remittances inflows (6% of GDP as of 2019), since the key sources of remittances are expected to resume
recovering in 2019. Vietnam is one of the top 10 countries in the world in terms of receiving remittances.
Canada, the United States of America, and Australia As of July 2021, the quantity of foreign exchange
reserves kept by the country is sufficient to cover imports for three and a half months' worth of goods.
• Toward a further level of collaboration with China
In Vietnam, the Communist Party of Vietnam (CPV) has strengthened its control over the government,
the media, and the military. As a result, the CPV has been effective in sustaining the country's unitary
government. Nguyen PhuTrong was elected by the Communist Party of Vietnam (CPV) to begin an
exceptional third consecutive five-year term as general secretary of the Communist Party at the start of
2021. This was a first in the history of the party. He will continue to advance the domestic agenda he is
already pursuing, with a special emphasis on the fight against corruption. As the leader's health has been
slowly declining since 2019, he should also make it a priority to build a new leadership that will be
elected at the next party congress to ensure a seamless transfer. This will ensure that the party's routine
operations continue throughout this period. Both the recent easing of limitations on commerce between
the two communist countries and the development of a strategy for expanded bilateral cooperation
between 2021 and 2025 have contributed to the improvement of the current situation of relations with
China. Despite the inconveniences caused by the outbreak in Vietnam, the pandemic has given Beijing
the opportunity to enhance its ties with Vietnam through its vaccine diplomacy. Despite the fact that
Vietnam has been disproportionately affected by the outbreak, this is the case. In respect to the South
China Sea issue, China has exerted pressure on Vietnam to abandon oil and gas projects backed by
international oil companies. These projects are currently being built in Vietnam. Despite the fact that the
United States has given Vietnam its backing in challenging Beijing in the South China Sea, it is highly
doubtful that Vietnam will accept this support in order to maintain its strong relations with China. It is
quite improbable that Vietnam will accept the assistance given by the United States in order to maintain
its good relations with China.

SOVEREIGN RISK

A country is vulnerable to Sovereign Risk when it fails to pay its debts and interest payments. In such
circumstances, a country's central bank modifies its monetary policy, affecting currency exchanges.

Effect of Sovereign Risk on Business

Institutional investors are frightened by sovereign risks, and they tend to remove their capital from the
country's market. Even when investors are compensated with high interest rates, many continue to
withdraw their funds and prefer to leave.
If a country is vulnerable to Sovereign Risks, businesses are largely susceptible to two key risks:
• Budgetary: An increase in the country's sovereign risk may result in tight fiscal measures, such as a rise
in tax rates, a reduction in subsidies, or a decrease in the value of implicit and explicit government
guarantees.
• Financial: An increase in sovereign risk deteriorates domestic financial health, causing pressures for
non-financial institutions as a result of a rise in bank lending rates.

Analysis of Sovereign Risk: Vietnam

According to the World Bank's Doing Business 2020 rankings, Vietnam ranks 70 out of 190 economies.
It compares favorably with other developing nations such as India, Brunei Darussalam, Indonesia, and the
United Arab Emirates.
Vietnam is placed in the "BB" category by Fitch, which classifies countries based on their debts and other
credit risks on a scale from "AAA to D." This demonstrates that Vietnam's sovereign risks are
considerably lower.

Balance of Payments Scenario of Vietnam

According to the World Bank's 2021 report, Vietnam's balance of payments is $ -3.81 billion, which is
nearly 1% of their GDP of $ 362.4 billion (2021). An examination of Vietnam's BoP over the years
reveals that it is very volatile, making it unsuitable for investors and business owners. These variations
result in modifications to the monetary policies of the central banks, which in turn affects businesses and
FDI flows.
 (Source: https://data.worldbank.org/country/VN)

The graph below depicts the rise and fall of FDI inflows relative to the movement of BoP in
the preceding section. This clearly demonstrates the connection between corporate and
sovereign risks.

(Source: https://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS?
 end=2020&locations=VN&start=2016)

TRANSFER RISK
Global transfer pricing policies are substantially identical, as they are frequently based on the same
notions and employ comparable approaches. Clearly, there are slight differences between Vietnam's
regulations and those of other countries, but the underlying principles are identical.
Before Decree 20 and Decree 132 were issued, transfer pricing restrictions in Vietnam were based on the
arm's-length principle. Therefore, the establishment of the substance-over-form notion has the biggest
influence; international investors should keep this in mind when building supply chains.
In accordance with the principle that substance trumps form, tax authorities dismiss the legal forms of
transactions and business agreements and focus on their economic substance.

Risk/Penalties
If tax authorities conclude that a transaction was not priced according to the notion of comparable
transactions, they will adjust the transaction's value and assess tax appropriately. In addition, in
accordance with the substance-over-form principle, expenses incurred for services provided only for the
purpose of providing benefits or values to other affiliates are not deducted from taxable revenue. Tax
avoidance can potentially subject businesses to criminal liability. Furthermore, the tax authorities publish
the data of non-compliant or irregular businesses on their national and provincial websites, severely
damaging their reputation.

Transfer pricing in Vietnam Transfer pricing has emerged as a significant tax issue for multinational
firms in a continuously expanding global economy. Foreign investment has flowed into Vietnam as the
country's economy continues to experience robust growth due to the expansion of its manufacturing and
service sectors. Managing transfer pricing risk is essential in the current corporate environment.
Vietnam's transfer pricing regulations are exhaustive and impose compliance and paperwork
requirements on taxpayers. The Vietnamese government has continued to emphasize transfer pricing's
significance. Organizations must comprehend the effect of Vietnamese transfer pricing legislation on
their risk profile, as well as the local compliance requirements and reporting obligations. As transfer
pricing is a primary focus of the government's risk evaluation and audits programme, the regulator is
currently subjecting taxpayers to regular queries. In addition, cooperative compliance solutions are now
being developed. Traditional solutions are insufficient; proactive transfer pricing governance control is
required.

In light of the recent international emphasis on tax and transfer pricing through the Base Erosion and
Profit Shifting (BEPS) programme of the Organization for Economic Cooperation and Development
(OECD) and in Vietnam through laws such as Decree 132, related/associated party transactions are
subject to increased scrutiny. To ensure compliance and the execution of appropriate risk mitigation
measures, it is vital that these firms acquire the necessary assistance.

EXCHANGE RATE RISK

Foreign Exchange Reserves
Foreign Exchange Reserves in Vietnam are the foreign assets held or controlled by the central bank. The
reserves consist of either gold or a specific currency. In addition, they may include special drawing rights
and marketable securities such as Treasury bills, government bonds, corporate bonds and stocks, as well
as foreign currency loans.

Exchange Rates Affecting Business

Businesses that import and export goods must keep a close eye on these exchange rates, as the pricing of
items are highly sensitive and alter rapidly in response to rate fluctuations. Even if a company just
conducts business within its own country, it must be aware of fluctuations in exchange rates because they
affect the entire economy.
• Selling abroad
If you own a company that exports goods or services, fluctuations in the exchange rate will have a direct
impact on your bottom line. How bills are distributed will affect the severity of the effect. If you send
invoices in a foreign currency and the exchange rate moves against you between the time you send the
invoice and the time you are paid, you may get less money than anticipated. If you send out invoices in
your own currency, it should have less of an impact, as the international purchaser will have to convert
their currency into yours in order to pay. Regardless of the currency rate, you will receive the full amount
of your bill. Changes in the currency rate could reduce the competitiveness of your prices, causing you to
lose market share to international competitors who do not need to account for transactional exchange rate
changes.
• Buying abroad
Similar to international sales, if your company contracts with a foreign supplier, it is susceptible to
fluctuations in the exchange rate.
If the exchange rate changed in the opposite direction, the same quantity of items would cost more. Some
firms decrease their risk by utilizing contracts that lock in exchange rates for a period of time.
• Indirect influence
Changes in the exchange rate might have an indirect impact on your business even if you do not buy or
sell goods or services abroad. For instance, if you utilize delivery trucks to transport items across the
country and the exchange rate increases the cost of fuel, you will wind up paying more to have your
packages shipped. Changes in exchange rates can also have an effect on competition. When the value of a
country's currency declines, it becomes more expensive to import goods, which could reduce imports.
This should be beneficial for domestic enterprises since it should increase sales, profits, and employment.
• Currency hazard

The currency risk rating is BB. The government chooses to exert considerable influence over the
exchange rate. However, this danger is offset by a prolonged current-account surplus, which helps to
maintain significant foreign-exchange reserves and low inflation.

• Economic structure risk

In recent years, the economy has been significantly more open to international trade. This has been the
primary catalyst for growth and structural transformation. This has resulted in a current account surplus
that has persisted for longer and is sustained by a diverse array of exports.
Terrorism and corruption are of great concern
Terrorism and corruption are the most destructive aspects for any nation. No one desires to reside in a
nation where terrorism and corruption are prevalent. Consequently, people typically protest to halt it.

Repercussions of Terrorism and Corruption on Business Terrorism and corruption have numerous effects
on business. Several of these are detailed below:

A) Economic loss:

Corruption in a nation will always result in an economic loss. From the citizens to the leader, everyone
engages in corruption. Normal individuals do it by not paying taxes and possessing black money, while
leaders do it by withholding a portion of the budget intended for public purposes. Occasionally by storing
illicit funds.

B) Violation of human rights:

When a person discovers a malicious act and tries to report it, they receive threatening phone calls. This
is a case of terrorism in which someone is apprehended for revealing the criminal action of another.

Analysis of Corruption Risk: Vietnam

Vietnam ranks number 87 out of 180 nations on the Corruption Perception Index for 2021, with a score of
39.
 (Source : https://www.transparency.org/en/cpi/2022/index/vnm)

Note: CPI Index is used as a global ranking of corruption in the world. It assesses the extent to which
academics and businesspeople believe a country's public sector is corrupt.

Pervading of Corruption in Vietnam

With a population of approximately 96 million, Vietnam is one of the developing nations. Due to the
international perception of corruption in Vietnam, Foreign Direct Investment (FDI) in Vietnam in 2022
stands at just US$27 billion.

Vietnam Terrorism Index

From the Vietnam Terrorism Index, it is evident that the index continues to decline annually. 2018 was
the year with the highest terrorism index, which was 1.522. Then, it gradually declined from 0.68 in 2020
to 0.41 in 2022.
(Source: https://tradingeconomics.com/vietnam/terrorism-index)

EASE OF DOING BUSINESS

It is a total that takes into account a variety of elements that influence the ease of doing business in a
country.
It is calculated by summing the scores for the distances of various economies from the frontier. The
distance to the frontier score compares economies using "regulatory best practises" as the criterion for
conducting business.
A "distance to frontier" score is computed for each of the indicators that comprise the "ease of doing
business" statistic, and then the scores are added together. The overall score is utilised to compute the
Ease of Doing Business Index. Permits for construction, registration, credit acquisition, tax collection
procedures, and other indicators are used to measure the distance to the frontier. Countries are ranked
based on this index.
Vietnam ranks 70 out of 190 countries on this measure. This demonstrates how robust Vietnam's business
environment is. Moreover, the country provides expedited clearances, tax incentives, and expedited trade
procedures for enterprises entering under the FDI channel, among other things. As evidence, the post-
pandemic migration of enterprises from China to Vietnam demonstrates business confidence in Vietnam's
capacity to support the global "China + 1" plan.

Human Development Index

The health dimension is measured by the life expectancy at birth, whereas the education dimension is
measured by the average number of years spent in school by adults aged 25 and older, as well as the
expected number of years spent in school by young children. The standard of life is measured using per
capita gross national income. The HDI employs the logarithm of income to demonstrate how the
importance of income decreases as GNI increases. Using geometric mean, the scores from the three HDI
dimension indices are put together to create a composite index. More information is available in the
technical notes. By comparing the levels of human development in two nations with comparable GNI per
capita, the HDI can be used to assess the worldwide effectiveness of national policies.
These disparities could spark a discussion regarding the primary goals of government action. In 2021,
Vietnam ranked 115 out of 191 countries. If a person lives a long and healthy life, he will be able to
contribute the most productive years of his life to achieving higher standards of economic growth; If he is
knowledgeable, he will be able to adopt the best practises of the industry with minimal training being
required to be provided by businesses; and a decent standard of living, as measured by the HDI, would
indicate a higher purchasing power.
 Conclusion

In conclusion, Vietnam has made significant progress in improving its ease of

doing business in recent years. The country has risen in the World Bank's "Doing
Business" rankings, reflecting improvements in areas such as starting a business,
dealing with construction permits, and resolving insolvency. However, there are
still challenges to overcome, such as access to credit and protection of property
rights. Overall, Vietnam's focus on economic liberalization and modernization has
created a favorable environment for foreign investment, making it an attractive
destination for businesses looking to expand in Southeast Asia.