Depends on your company. For a more accurate PEST analysis, it’s best to consider your company’s structure, product, and strategy. Anyway, here’s a very simple PEST analysis. Political – Vietnam is a Single Party Communist State. There is more likely to be higher government control and less autonomy for the organization wanting to enter the Vietnamese market. However, on the good side, Vietnam is more likely to have relatively greater political stability. Would be advisable to form good relations with the local government and negotiate favorable terms with them.
Economy – Vietnam is a developing economy. GDP per capita is USD2,942. 00. To cater for the largest demographic, it is best to use a price leadership strategy rather than rely on product differentiation. Sell a cheaper, and more basic product or service, rather than offer a premium quality or novelty product. Socio-Cultural – For a foreign organization, there are bound to be language barriers (most obvious factor). Ensure that the labels on the packaging is in Vietnamese if you’re selling a product. Vietnam is also predominantly Buddhist (85% of the population).
It is better to offer a product or service that respects the local values and culture, and is compatible. Technology – Infrastructure (an important factor) in Vietnam is adequate. Road, and rail infrastructure is well-developed. Railways are linked to other countries such as China, Laos and Cambodia. There are also 17 civil airports operating in Vietnam and pipelines to transport liquids such as petroleum. There are of course, ports (Ha Long City). Not sure if this helps. It would be better if we knew more about your business.