Vietnam

The Socialist Republic of Vietnam is located in Southeastern Asia bordered by Laos, Cambodia, and China. It is slightly larger than New Mexico and covers an area of 329,560 sq. kilometers. Vietnam’s total population is about 86.97 million and growing at about 0.977% with 28% living in urban areas. The Vietnamese capital of Hanoi has a population of about 6.23 million with other major cities including Ho Chi Minh City (formerly Saigon, pop. 6.6 mil) and Haiphong (1.7 mil). Vietnam is a communist state where the primary language is Vietnamese and English is increasingly favored as a second language. The local currency used is the Vietnamese Dong and as of January 2008 Vietnam assumed a nonpermanent seat on the UN Security Council for the 2008-2009 term.Vietnam has gone through many hardships in the past 30 years, but has recently begun major reforms to their economy. Membership in the ASEAN Free Trade Agreement (AFTA) and the WTO, along with the US-Vietnam Bilateral Trade agreement, has greatly helped to improve the economic situation. Most of its trade partners are Eastern Asian countries including China, Japan, Singapore, Taiwan, South Korea, and Thailand, however 20% of its exports go to the US and 7% go to Australia. Its primary imports are machinery and equipment, petroleum products, fertilizer, steel products, raw cotton, grain, and cement. Exports consist of crude oil, marine products, rice, coffee, rubber, tea, garments, and shoes. Vietnam’s GDP (Purchasing Power Parity) is $241.8 billion and is growing at a real rate of 6.2% with an inflation rate of 24.5%. Vietnam ranked 92nd out of 181 countries in the World Bank Group’s Ease of Doing Business Ranking mostly due to concerns about corruption.

Demographic Data

Economic Data

Cultural & Other Data

GDP (PPP, $bn)

241.8

Capital

Hanoi

Area (sq. km.)

329,560

GDP Real

Growth (%)

6.2

Other Large Cities

Ho Chi Minh City (formerly Saigon), Haiphong

Population (million)

86.97

PerCap GDP ($)

2800

Primary Language

Vietnamese

Population

Growth %

0.977

Prime Lending

Rate (%)

11.18

Urban

Population %

28

% Population

Under 15yrs

19.8

Inflation Rate%

24.5

Urban Growth %

3.1

Population below

poverty line (%)

14.8

Unemployment%

4.9

Literacy

(% of population)

90.3

Agricultural Workers

(% of population)

56

Foreign Direct

Investment($bn)

43.06

Education spending

as % of GDP

1.8

Industrial Workers

(% of population)

19

Debt-External

($bn)

23.72

CPI Score

(1-10)*

2.7

Service Workers

(% of population)

25

Exports ($bn)

63.73

Corporate Income Tax %

25

Labor Force (mil)

47.41

Imports ($bn)

79.37

Ease of Doing

Business Ranking **

92

CURRENCY EXCHANGE RATE

05/14/09 $1 = 17768 VND

Franchising Laws Overview

Disclosure laws:

  • Franchisors must provide prospective franchisees with a copy of the franchise agreement and “franchise description document” at least fifteen business days prior to the execution if the parties do not have some other agreement.

Relationship laws:

  • Must operate for at least one year before franchising.

Registration laws:

  • Franchisors must register with the Ministry of Trade prior to commencing franchising.

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