Investment in Vietnam

GUIDEBOOK ON BUSINESS AND INVESTMENT IN VIETNAM BERLIN, 2011 FOREWORD Over the past two decades, Viet Nam’s economy has bee n developing rapidly owing to its â€Å"Doi moi† (Renovation) policy and activeness to integrate itself into the global economy. W ith its enormous efforts and determination, and effective cooperation with international partners and friends worldwide, Viet Nam is taking firm steps towards industrialization and modernization.With a stable political environment and great economic potentials, Viet Nam is an attractive destination for doing business and investment. The Government of Viet Nam has been ceaselessly endeavoring to improve the investment climate with the aim at creating an increasingly business-friendly environment in Viet Nam. Germany is the biggest economic partner of Viet Nam in Europe. The economic cooperation between the two countries has been fruitfully burgeoning.In an effort to further strengthen the economic cooperation between Vie t Nam and Germany, t he Embassy of the Socialist Republic of Viet Nam in coordination with the relevant ministries of Viet Nam to publish the Guidebook on Business and Investment of Viet Nam, which is expected to provide German businesses with an overview of the Viet Nam’s economy and its business and investment climate.We are confident that German businesses can find helpful information and guidelines on investment and doing business in Viet Nam from the Guidebook, and thereby have a deeper understanding of the Viet Nam’s economy, a dynamically emerging and reliable destination for international investment flows. We deeply thank the Ministry of Foreign Affairs and the Ministry of Planning and Investment of Viet Nam for their kind support and assistance. We would like to express our sincere thanks to Dr.Andreas Stoffers, Board Member of German Business Association Vietnam and Member Executive Committee Euroean Chamber of Commerce Vietman for reviewing this book. W e al so heartedly thank Marktforschung und Kommunikation GmbH for her great cooperation and excellent coordination in publishing the Guidebook. Dr. Do Hoa Binh Extraordinary and Plenipotentiary Ambassador of the S. R. Viet Nam to the Federal Republic of Germany 2 ABBREVIATION ASEAN BCC BOM BOT BT BTO CEPT CIT CPC DOLISA DPI EIAR EL EPC EPZ EU EZ FIC FOB GDP HTZ IL IZ JVC LTT LUR LURC MFN MOIT MOLISA MONRE MOST MPI NOIP ODA PCT PIT PPP RO SBV TTC USD VAT VCAD VNDW TO Association of Southeast Asian Nations Business co-operation contract Board of Management of IZs, EPZs, HTZs and EZs Build-operate-transfer (including its derivative forms, BTO and BT) Build-transfer Build-transfer-operate Common Effective Preferential Tariff Scheme Corporate income tax Civil Proceedings Code Provincial Department of Labour, War Invalids and Social Affairs Provincial Department of Planning and Investment Environmental impact assessment report Enterprise Law Environment protection commitment Export processing zone European Union Economic zone Foreign-invested company Free on board Gross Domestic ProductHigh-tech zone Investment Law Industrial zone Joint venture company Law on Technology Transfer Land use rights Certificate of land use rights Most Favoured Nation Ministry of Industry and Trade Ministry of Labour, War Invalids and Social Affairs Ministry of Natural Resources and Environment Ministry of Science and Technology Ministry of Planning and Investment National Office of Intellectual Property Official development assistance Patent Cooperation Treaty Personal income tax Public Private Partnership Representative Office State Bank of Vietnam Technology transfer contract United States of America dollarValue-added tax Vietnam Competition Administration Department Vietnamese Dong W orld Trade Organisation 3 TABLE OF CONTENTS FOREWORD †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 VIETNAM AT A GLANCE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 I: KEY FACTS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 II: POLITICAL SYSTEM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ III: ECONOMY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 IV: INFRASTRUCTURE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 V: VIETNAM- GERMANY ECONOMIC RELATIONSHIP†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 21 LEGAL GUIDE FOR INVESTING AND DOING BUSINESS IN VIETNAM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 24 I: INVESTMENT REGULATIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 II:TRADE REGULATIONS â € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 30 III: TAXATION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 35 IV: CUSTOMS REGULATIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 42 V: LAND LAW †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 44 VI: FOREIGN EXCHANGE AND LOANS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 VII: EMPLOYMENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 52 VIII: COMPETITION LAW †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 58 IX: ENVIRONMENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 62 X: INTELLECTUAL PROPERTY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 64 XI: TECHNOLOGY TRANSFER †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 XII: DISPUTE RESOLUTION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 73 BUSINESS TRAVEL GUIDE TO VIETNAM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 77 APPENDICES APPENDIX 1: LIST OF SECTORS ENT ITLED TO INVESTMENT INCENTIVES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 80 APPENDIX 2: LIST OF GEOGRAPHICAL REGIONS OF INVESTMENT INCENTIVES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 84 APPENDIX 3: USEFUL CONTACTS AND ADDRESSES IN VIETNAM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 87 4 VIETNAM AT A GLANCE I: KEY FACTS ? Official name: The Socialist Republic of Vietnam. Capital: Hanoi. ? Largest city: Ho Chi Minh City. ? Administrative subdivisions: 58 provinces and 5 municipalities (Hanoi, Hai Phong, Da Nang, Ho Chi Minh and Can Tho). ? Official language: Vietnamese. ? Location: In the center of Southeast Asia, neighboring on China to the north, Laos and Cambodia to the west, and the East Sea and Pacific Ocean to the East and South. ? Area: 331,690 km2. ? Coast line: 3,260 km. ? Climate: tropical in south; monsoonal in north with hot, rainy season (mid May to mid-September) and warm, dry season (mid-Octobe r to mid-March). Population (2010): 86. 9 million, by area (urban: 30% and rural: 70%) and by age (less than 15 years old: 24. 7%, 15 -64 years old: 68. 5% and more than 65 years old: 6. 8%). ? Population density: 262 people/km2. ? Literacy: 93. 7%. ? Natural resource: Energy resources (oil, gas, coal, hydropower and wind power); minerals (bauxite, iron ore, lead, gold, precious stones, tin, chromate, anthracite, construction materials, granite, marble, clay, white sand and graphite); sea and tropical forestry resources and agricultural potential. ?Currency: Vietnamese Dong (VND). ? Exchange rate (April 2011): 1 USD = 20,725 VND. ? GDP (2010): 104. 7 billion USD. ? GDP per capita (2010): 1,204 USD. ? GDP real growth rate (2010): 6. 78%. ? GDP by sector (2010): Agriculture (20. 6%), Industry (41. 1%) and Service (38. 3%). ? Exports: Crude oil, garments, shoes, marine products, electronic products and components, funitures, rice, coffee, rubber, tea, pepper. ? Major export markets: US A, Japan, China, Australia, Singapore, Germany, South Korea, Malaysia, the Philippines, Netherland. ?Imports: Machinery & equipment, petroleum products, pharmaceuticals, fertilizer, steel products, metal, textile, garment and shoe inputs, vehicles. 5 ? II: Major import markets: China, Japan, South Korea, Taiwan, Singapore, Thailand, USA, Malaysia, India, Germany. POLITICAL SYSTEM The current Constitution was adopted in 1992 and amended in 2001. It clearly indicates that the State is â€Å"of the people, by the people and for the people†. The people access the State power through the National Assembly and People's Councils, which are composed of elected representatives who represent the people's will and aspirations.The Constitution endows all citizens, men and women alike, with equal rights in all political, economic, cultural and social spheres as well as in family affairs, the right to and freedom of belief and religion and the right to choose and practice a religion, the r ight to and freedom of movement and residence in Vietnam, and the right to go abroad and return home as stipulated by laws. The National Assembly is the highest representative body of the people, endowed with the highest State power of the Socialist Republic of Vietnam.It governs constitutional and legislative rights, decides fundamental domestic and foreign policies, socioeconomic tasks, and national defence and security issues, etc. It exercises the right to supreme supervision of all activities of the State. The State President is the Head of State, elected by the National Assembly from among its deputies to represent the Socialist Republic of Vietnam in domestic and foreign affairs. The term of office of the President is the same as that of the Chairman of the National Assembly.The Government is the executive body of the Socialist Republic of Vietnam. It has the same term of office as the National Assembly and administers the implementation of State affairs in the fields of poli tics, economics, culture, society, national defence and security and foreign relations. The government is headed by the Prime Minister and comprises Deputy Prime Ministers, Ministers and other government members. The Supreme People's Court is the judicial body of the Socialist Republic of Vietnam.It supervises and directs the judicial work of local People's Courts, Military Tribunals, Special Tribunals and other tribunals, unless otherwise prescribed by the National Assembly at the establishment of such Tribunals. The Supreme People's Procuracy oversees the enforcement of the law and exercises the right to prosecution, and ensures serious and uniform implementation of the law. III: ECONOMY Since the Doi moi (reforms) were introduced in the mid-1980s, Vietnamese economy has changed rapidly.Replacing the old centrally-planned economy, Vietnam has shifted to a new economic structure namely a socialist-oriented market economy, and has gained significant success. Today the aim of Vietnam is to become a basically industrialized country by 2020. 6 Overall achievements Vietnam embarked on Doi moi in 1986 and the country has seen many dramatic changes since. Over the last decade it has recorded an average GDP growth rate of 7. 3 percent per annum, ranking it second in the region after China. Its economy suffered from the 2008-09 economic crisis but recovered rapidly, with GDP growth rate of 6. 78 percent in 2010.ADB forecasts that the economy of Vietnam will increase by 6. 1 and 6. 7 percent in 2011 and 2012 respectively. Vietnam already became a lower middle income country with its GDP per capita of 1,204 USD in 2010. To a large extent, Vietnam has successfully transformed from a centrally-planned economy with heavy bureaucracy and subsidies to a socialist -oriented market economy characterized by strong dynamism and rapidly growing entrepreneurship. The country's economy has integrated deeply into the global and regional economies, bringing about a sharp rise in trad e volumes as well as an influx of foreign investment.The economy is well on the way to being a multi-sector model operating according to market mechanisms. The private sector has enjoyed very favourable conditions created by the Enterprise Law of 2000, which institutionalizes the freedom of all individuals to conduct business in areas not prohibited by law and removes a large number of administrative obstacles that hampered enterprises. With a view to raising the efficiency of the state -owned sector, the government has adopted assertive policy measures to reorganize the sector through equitization.As a result, more than 3,970 state-owned enterprises were equitized by the end of 2010. GDP of Vietnam, 2000-2010 120 9. 0 8. 0 7. 0 80 6. 0 5. 0 60 4. 0 40 3. 0 2. 0 20 1. 0 0 0. 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year GDP GDP growth rate Source: General Statistics Office 7 GDP growth rate (%) GDP (billion USD) 100 Progress in particular sectors As Vietnam's GDP con tinuously increases the country's economic structure has also seen notable changes. From 1990 to 2010 the share of the agriculture sector reduced from 38. 7 percent to 20. percent, while that of industry and construction increased from 22. 7 percent in 1990 to 41. 1 percent in 2010. The service sector remained relatively constant: 38. 6 percent in 1990 and 38. 3 percent in 2010. Agriculture still plays a critical role in Vietnam's socio-economic life since it generates about 57 percent of total employment and makes important contribution to the expansion of the country's foreign trade. Vietnam are among the leading countries in terms of agricultural exports such as rice, coffee, cashew nuts and aqua-products, etc.Industry continues to grow rapidly in terms of gross output, at an average rate of 10-15 percent per annum. Besides state enterprises, foreign-invested and the private enterprises play an increasingly important role in industrial development and exports. Services are growin g at an average rate of 7-8 percent. In 2010 the value added of service sector grew 7. 52 percent with good performances being recorded in the trade, finance, and hotels and restaurant sub-sectors as consumption and tourism remained buoyant. Industry and services continue to increase their sha re in the economy.This reflects market oriented reforms, a gradual reduction in barriers to competition and to private sector development, and improvements in physical infrastructure. Greater diversification in industrial production and services lays the foundation for further sustained growth in output and employment. VA growth rate by sector of Vietnam, 2000-2010 12. 0 10. 0 Percent 8. 0 6. 0 4. 0 2. 0 0. 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Agriculture Industry Source: General Statistics Office 8 Service International economic integrationVietnam has made major steps forward in its commitments to regional and international economic integration. Following the introduc tion of Doi moi it signed an economic and trade cooperation agreement with the EU in 1995, joined ASEAN in 1995, adhered to CEPT/AFTA in 1996 and became an APEC member in 1998. The Bilateral Trade Agreement (BTA) with the United States was signed in 2000, which resulted in a dramatic increase in the trade volume between the two countries. Vietnam became the 150th member of the World Trade Organization on January 11, 2007.Vietnam's commitments in the WTO increase market access for exports of goods and services of WTO's members and establish greater transparency in regulatory trade practices as well as a more level playing field between Vietnamese and foreign companies. Vietnam undertook commitments on goods (tariffs, quotas and ceilings on agricultural subsidies) and services (provisions of access to foreign service providers and related conditions), and to implement agreements on intellectual property (TRIPS), investment measures (TRIMS), customs valuation, technical barriers to tra de, sanitary nd phytosanitary measures, import licensing provisions, anti-dumping and countervailing measures, and rules of origin. At present, Viet Nam has established diplomatic relations with 172 countries and signed 55 bilateral investment agreements and 58 double taxation agreements with countries and territories including Germany. It has economic and trading relations with about 165 countries and territories. Vietnam holds membership in 63 international organizations and over 650 non-governmental organizations.The policy of â€Å"multi-lateralization and diversification† in international relations has helped Vietnam to integrate more deeply into the global and regional economies and increase trade and investment ties with nations all over the world. More importantly, Vietnam has improved its enable business friendly environment over time. World Bank recognized that Vietnam is one of the 10 most-improved economies in ease of doing business in 2010. Currently, its ranking is 78 and even higher than other Asia countries such as Indonesia, Philippines, China, India. Vietnam’s rankings according to various indices Index 2011-2010 rank 2010-2009 rankWorld Bank’s Ease of doing business 78/183 88/183 World Economic Forum's Global competitiveness index 59/139 75/133 12/top 20 12/top 25 (*) ATKEARNEY' FDI confidence index Note (*) data for 2007 9 International trade Total export volume of Vietnam increased by 18 percent per year on average in the last decade and its import volume also did so by 19. 2 percent per year. In 2010 its total trade volume reached $155. 6 billion ($71. 6 billion of export and $84 billion of import), equal to 149 percent of its GDP. Both the composition and quality of exports have improved significantly. The proportion of industrial products has risen considerably.The five biggest export items include oil, textiles, footwear, seafood and wood products. Vietnam is in the early stage of the industrialisation and modernis ation process and receives a large inflow of FDI therefore it relies largely on the imp orted equipment and materials. Trade relations with foreign countries, especially other countries in the region, have expanded over time. The biggest trading partners of Viet Nam include China, America, ASEAN, EU, Japan and South Korea. International trade of Vietnam, 2000-2010 160 70 140 60 120 50 100 40 80 30 60 20 40 10 20 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Year Export Import Trade in goods as % GDP Source: General Statistics Office 10 Trade in goods as % GDP (percent) 180 80 Trade (billion US$) 90 Top 10 export and import items of Vietnam, 2010 Garment Machinery & equipment Footwear Steel products Seafood Petroleum products Crude oil Fabric Electronic products Electronic products Furniture Vehicles Rice Platics Machinery & equipment Garment and shoe inputs Precious stone & metals Metals Rubber Animal feed 0. 0 5. 0 10. 0 15. 0 0. 0 5. 0 10. 0 15. 0 Import volume (billio n USD) Export volume (billion USD) Export item Import item Source: General Statistics OfficeForeign direct investment Since the introduction of the Law on Foreign Investment in 1987, by the end of 2010, 12,236 foreign investment projects were licensed with total registered capital of $193. 4 billion and total disbursed capital of over $61 billion. The investors from 92 countries and territories have committed investments in Viet Nam. Most of them are from Asia, Europe and America. Taiwan, Republic of Korea, Singapore, Japan and Malaysia and are the top five countries and territories investing in Vietnam. The next five countries and territories are British Virgin Islands, America, Hongkong, Cayman Islands and Thailand.These â€Å"top ten† countries and territories account for over three quarters of the total licensed projects and foreign registered capital in Viet Nam. Since 1996 there has been a tendency towards investment in producing goods for export, infrastructure constru ction, producing import substitutes and in labour intensive industries. There are more than 8,327 projects in the manufacturing and processing, real estate and construction industries with a total capital of about US$153,5 billion, accounting for nearly 80% of the registered capital.While there are foreign invested projects in all provinces and cities in Viet Nam, most investment has been in the key economic areas in the South including Ho Chi Minh City, Dong Nai, Binh Duong, Ba Ria, Vung Tau, and in the North including Hanoi, Hai Duong, Hai Phong and Quang Ninh. The foreign invested sector has increased rapidly, gradually asserting itself as a dynamic component of the economy, and has made an important contribution to enhancing the competitiveness and efficiency of the economy. In 20 10, the foreign invested sector has accounted for 21. 5% of the country's total investment, contributed 18. percent to GDP, 54. 2 percent to export volume (crude oil included), 44. 4 percent to industr ial gross output and employed 1. 6 million persons. 11 FDI Inflow of Vietnam, 2000-2010 Project number Registered capital Service, 10. 7% Telecom. & transportation 4. 1% Service, 19. 2% Processing & manufacturing 48. 7% Agriculture, 1. 6% Processing & manufacturing 59. 8% Agriculture 3. 9% Telecom. & transportation 7. 7% Real estate & construction 30. 8% Power, water, gas, 2. 5% Mining, 1. 5% Real estate & construction 8. 4% Power, water, gas, 0. 5% Mining, 0. 6% Source: Ministry of Planning and Investment FDI of Vietnam by sector, 2010 600 60 1400 1200 50 1000 40 800 30 600 20 400 10 200 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Disbursement Total investment Note: Accumulated inflow of FDI by the end of 2010 Source: Ministry of Planning and Investment 12 No. of project 1800 70 FDI inflow (billion US$) 80 Top 10 destinations and investors of Vietnam, 2010 Top 10 FDI receiving provinces Top 10 investing countries and territories Ho Chi Minh City Chinese Taipei B a Ria – Vung Tau Korea Republic Ha Noi Singapore Dong Nai Japan Binh Duong Malaysia Ha Tinh British Virgin Islands Phu Yen America Thanh Hoa Hong Kong Hai Phong Cayman IslandsQuang Nam Thailand 0. 0 10. 0 20. 0 30. 0 Total registered investment (billion USD) 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 Total registered investment (billion USD) Note: Accumulated inflow of FDI by the end of 2010 Source: Ministry of Planning and Investment IV: INFRASTRUCTURE ? Road network: – ? 171,392 km country-wide. 2 North-South pivot routes: (i) the 1A National Highway of 2,260km in length from Lang Son to Ca Mau and (ii) the Ho Chi Minh Highway of 3,167km in length from Cao Bang to Ca Mau. Railway network: – ? Total length of 2,632 km. 278 stations country-wide. Hanoi – Ho Chi Minh City line: 1,726 km (it takes 29. hours for express train). – Linked to China railways in two directions, one from Lao Cai province to Yunnan province and one from Lang Son province to Kwangsi p rovince of China. – Planned to construct the railway lines connecting with Laos and Cambodia. Inland waterway: – More than 2,300 rivers and canals with total length of 198,000 km. – Inland waterway system of 35,386 km. 13 ? Sea ports: – – ? Vietnam has 3,260km coastline, a strategic position close to international shipping routes and favored natural conditions of foundation, sea depth, current, tidal, sedimentation and channels for developing seaport business. 7 national level sea ports, 23 provincial level sea ports and 9 offshore oil and gas sea ports. Current major important ports include Cai Lan and Hai Phong in the North, Da Nang and Quy Nhon in the Centre and Sai Gon and Cai Mep in the South. Airports: – ? 8 international airports: Cam Ranh (Nha Trang), Cat Bi (Hai Phong), Da Nang (Da Nang), Lien Khuong (Lam Dong), Noi Bai (Ha Noi), Phu Bai (Hue), Tra Noc (Can Tho), Tan Son Nhat (Ho Chi Minh City). In 2010, Tan Son Nhat Airport receive d 15. 5 million passergers and Noi Bai airport did 9. 5 million passengers. 14 domestic airports: Buon Ma Thuot (Dac Lac), Ca Mau (Ca Mau), Chu Lai (Quang Nam), Co Ong (Ba Ria – Vung Tau), Dien Bien Phu (Dien Bien Phu), Dong Tac (Phu Yen), Dong Hoi (Quang Binh), Gia Lam (Ha Noi), Na San (Son La), Pleiku (Gia Lai), Phu Cat (Binh Dinh), Phu Quoc (Kien Giang), Rach Gia (Kien Giang), Vinh (Nghe An). Business development zones: – ? 3 high-tech zones (Hoa Lac, Da Nang and Ho Chi Minh City) with total area of 3,509 ha of land. ? 260 industrial zones and export processing zones with total area of 71,394 ha of land. 15 economic zones located along sea coast with total area of 638,633 ha of land.Energy: – Electricity output reached 92. 7 billion kWh. – Crude oil and gas exploited 23 million ton. – Coal exploited 44 million ton. Telecommunication: – 26. 8 million Internet users. – 153. 7 million mobile subscriptions. – 16. 4 million fixed phone subscriptions. 14 15 Vietnam rail network 16 National seaports of Vietnam No. Seaport Province Current capacity of ship (DWT) 1 Cam Pha Quang Ninh 50,000 2 Hon Gai Quang Ninh 40,000 3 Hai Phong Hai Phong 20,000 4 Nghi Son Thanh Hoa 20,000 5 Cua Lo Nghe An 10,000 6 Vung Ang Ha Tinh 30,000 7 Chan May Thua Thien Hue 30,000 8 Da Nang Da Nang 30,000 9 Dung Quat Quang Ngai 0,000 10 Quy Nhon Binh Dinh 30,000 11 Van Phong Khanh Hoa 50,000 12 Nha Trang Khanh Hoa 20,000 13 Ba Ngoi Khanh Hoa 30,000 14 Ho Chi Minh City Ho Chi Minh City 30,000 15 Vung Tau Ba Ria – Vung Tau 50,000 16 Dong Nai Dong Nai 20,000 17 Can Tho Can Tho 10,000 Source: Decision 2190/QD-TTg dated 24/12/2009 17 Number and size of IPs and EPZs in Vietnam 300 71,394 70,000 60,000 40,000 150 26,971 260 100 183 11,830 50 50,000 43,687 200 300 1 2,370 12 30,000 20,000 130 10,000 65 0 1991 1995 2000 2005 2007 Year Number of IPs Size (ha) Source: Ministry of Planning and Investment 18 2010 Size of IPs (ha) Number of IP s 250Economic zones of Vietnam 19 SWOT Analysis of Vietnam Strengths Weaknesses ? One of fastest growing economies ? Few skilled professionals in Asia with average GDP growth of available; 7. 2% per year over the last decade; ? High bureaucratic barriers; ? Stable political and social security; ? Weak infrastructure (power, ? Abundance of human resources transportation); (labour force of 46. 2 million people; ? Underdeveloped supporting young, motivated and educated industries. workforce; 60% of population under 35 years old); ? Competitive business and production costs (cost labor, industrial land rent, energy cost, elephone cost, marine transportation, taxation); ? Available mineral and natural resources (coal, oil & gas, iron ore, bauxite, rare earth,.. ); ? Central location in South East Asia, long distance coast. Opportunities Threats ? Global integration (ASEAN, APEC, WTO membership); one of the world’s most open economies; ? High inflation; ? High trade deficit; ? Deva luation of VND; ? Higher demand for consumer goods and capital goods with better ? Banking and finance sector in infant stage; quality because of being a lower middle income country, aiming at ? Low national reserves. an industrialized country and ncreasing urban population; ? Export oriented and labour intensive industries; ? Infrastruture (road, railway, seaport, airport, power) projects funded by international donors or foreign investors. 20 V: VIETNAM- GERMANY ECONOMIC RELATIONSHIP Trade Germany is the biggest trade partner of Vietnam in Europe. In 2010, despite the global economic downturn, bilateral trade reached nearly USD 6 billion, a substantial increase over the previous year. Total export value of Vietnam to Germany reached nearly USD 4 billion, accounting for 19% of total Vietnam’s export to the EU while its import value from German amounted to USD 2 billion.Vietnam’s main export items to Germany are garments, footwear, coffees, furnitures, see foods, leath er and leather apparel, office machinery, iron, metal products, articles of plastics, ceramic products, crude rubber. Germany is the second-largest market worldwide for robusta coffee and black pepper of Vietnam. Main import items from Germany to Vietnam include: machines (in mining, construction and civil engineering, textile, food and beverage,†¦), aircraft, units for electricity generation nd distribution, passenger cars, chemical products, pharmaceutical products, measurement, control and regulation technology products, industrial plants, plastics, lifting and handling equipment, medical equipment and orthopedic appliances, engines, iron, metal products, elec tronic components†¦ After WTO accession, Vietnam is becoming an emerging and lucrative market in Asia. As Vietnam is accelerating its industrialization process to become an â€Å"industrialized country† by 2020, the trend towards sophisticated production facilities is evident and it is likely to result in i ncreased demand for hi -tech machinery made in Germany.Investment There have been over 230 German companies operating and investing in Vietnam, including many Germany’s leading groups such as Siemens, Deutsche Bank, Mercedes, Metro, Bosch etc. By the end of April 2011, German companies have invested in 163 projects with registered capital of USD 825 million in Vietnam. Three fourths of total investment projects and two thirds of investment capital of Germany mainly concentrate in manufacturing, processing, technique services, information and communication technology, banking and finance services.Although German investment projects have been located in 26 locatio ns in Vietnam, most of them have been implemented in Ho Chi Minh City, Hanoi, Binh Duong and Dong Nai. In the upcoming time, the active implementation of mega infrastructure development and energy projects partially funded by German ODA such as the metro line No. 2 Ben Thanh – An Suong in Ho Chi Minh City (with length of 11 km and total investment capital of USD 1. 25 billion), O Mon IV thermo power, Phu Lac wind power, Vietnamese Green Line,†¦ will have positive impacts on promoting German investment flow into Vietnam.German foreign trade and investment promotion is well positioned in Viet Nam. German companies and investors can access to supports and advices from AHK Vietnam, German Business Association (GBA), a correspondent of Germany Trade and Invest (GTAI) in Vietnam. 21 Development cooperation Vietnam is an important partner of Germany in development cooperation. As one of the biggest donors among the EU members, Germany has provided Vietnam with more than EUR 1 billion in ODA since 1990. During 2011 – 2012, Germany committed nearly EUR 300 million for Vietnam. This is a clear evidence for strong support by Germany to the development of Vietnam.German-Vietnamese development cooperation focuses on the three priority areas: (i) Sustainable economic development and vocatio nal training; (ii) Environmental policy, conservation and sustainable use of natural resources; (iii) Health. German development cooperation has been utilizing effectively and contributing positively to socio-economic development of Vietnam, especially in vocational training, human resource development, infrastructure, clean energy source. During the visit of German Chancellor Dr. Angela Merkel to Viet Nam in October 2011, Hanoi Declaration was signed by Prime Minister Nguyen Tan Dung and Chancellor Dr.Angela Merkel. It is the start of the strategic partnership between Vietnam and Germany. Export and import between Vietnam and Germany, 2007-2010 4000 3500 Value (USD million) 3000 2500 2000 1500 1000 500 0 2007 2008 Export from Vietnam to Germany 2009 2010 Year Import to Vietnam from Germany Source: German Federal Statistical Office 22 Gernam investment flow into Vietnam by sector, 2010 Registered capital Service, 10. 5 Agriculture, Telecom. & 5. 4 transportation 0. 4 Real estate & c onstruction 1. 0 Project number Processing & manufacturing 53. 6 Processing & manufacturing 46. 7 Service, 34. 2 Agriculture 2. 0 Power, water & gas, 29. Telecom. & Mining, 0. 7 transportation Real estate & 10. 5 construction Power, water & gas, 2. 0 3. 9 Mining, 0. 0 Source: Ministry of Planning and Investment 23 LEGAL GUIDE FOR INVESTING AND DOING BUSINESS IN VIETNAM I: INVESTMENT REGULATIONS On 1 July 2006, the investment regime comprised of a unified Enterprise Law (â€Å"EL†), which regulates corporations, and a common Investment Law (â€Å" IL†), which regulates investment, came into effect. The promulgation of these two important legislations is considered a significant watershed for improvement of the legal environment on investment activities and corporate governance in Vietnam. . Overview To do business under the IL and EL, foreign investors are required to obtain investment certificates from an appropriate Licensing Authority. Under the IL, investors may inv est in all sectors not prohibited by law. prohibited by law include: Areas ? Investment projects detrimental to national defence, security, and the public interest; ? Investment projects detrimental to historical and cultural traditions and the ethics or customs of Vietnam; ? Investment projects harming people’s health or destroying natural resources and the environment; and ?Investment projects treating toxic waste imported to Vietnam and investment projects manufacturing toxic chemicals banned by international law. 2. Licensing Investors shall follow the licensing and registration steps depending on the size and the sector of the investment project. Investment Certification Process 24 Conditional sectors: Investment projects in conditional sectors shall satisfy certain conditions in order to be licensed. Conditional sectors include: ? Broadcasting and television; ? Production, publishing and distribution of cultural products; ?Exploration and exploitation of minerals; ? Est ablishment of infrastructure for telecommunications network, transmission and provision of internet and telecommunications services; ? Establishment of public postal network and provision of postal services and express services; ? Construction and operation of river ports, sea ports, terminals and airports; ? Transportation of goods and passengers by railway, airway, roadway and sea and inland waterways; ? Catching of aquaculture; ? Production of tobacco; ? Real estate business; ? Import, export and distribution business; Education and training; ? Hospitals and clinics; and ? Other investment sectors in international treaties of which Vietnam is a member and which restrict the opening of the market to foreign investors. Investment Registration: Foreign investment projects with a total invested capital of less than VND 300 billion (US$ 15 million) and not falling in a conditional sector are subject to â€Å"investment registration† and foreign investors of such projects shall carry out the procedures for investment registration in order to be granted an investment certificate.The investment certificate also serves as the business registration of the corporate entity. Enterprises can subsequently register additional investment projects without the need to create a separate entity. The investor should submit application documents for investment registration to the Licensing Authority. The Licensing Authority shall check the documents and issue the investment certificate to the investors within 15 workin g days of receiving the valid application.Investment Evaluation: Any investment project with a total invested capital of VND 300 billion (US$ 15 million) or more or investment projects falling in conditional sectors shall undergo â€Å"an investment evaluation† by the Licensing Authority and other relevant authorities. There are two different types of evaluation: ? evaluation for investment projects regardless of total invested capital falling into c onditional sectors; and ? evaluation for investment projects with total invested capital of VND300 billion or more that do not fall into conditional sectors.For the evaluation of investment projects with total invested capital of VND 300 billion or more, along with the application documents, the applicant must also submit an â€Å"economic – technical explanation† of the investment project to the Licensing Authority. This covers the economic – technical explanatory statement, 25 objectives, scale, location, investment capital, implementation schedule, land use needs, and technological and environmental solutions of the investment project.For the evaluation of investment projects falling in conditional sectors, in addition to the application documents, the investor shall also demonstrate compliance with requirements specific to that conditional sector. When assessing the application documents, the Licensing Authority may liaise with other relevant Ministries and authorities in evaluating the proposed investment project. Items to be evaluated shall comprise: ? compliance with master planning/zoning for technical infrastructure, master planning/zoning for land use, master planning for construction, master planning for utilization of minerals and other natural resources; land use requirements; ? project implementation schedule; ? environmental solutions. The time-limit for evaluation of investment shall not exceed thirty (30) days from the date of receipt of a complete and valid file. In necessary cases, the above time -limit may be extended, but not beyond forty five (45) days. Applying for Construction License Filing for Investment Certificate Applying for the approval of Report on environment effects evaluation Agreement on land/building/office renting Evaluating preliminary technical design Environmental protection ommitment Land/building/office renting contract 26 Projects subject to Projects subject to environmental protection constructi on license commitment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Investment Certificate Projects subject to Report on environmental effects evaluation To-Do List for Investors 3. Licensing Authority Licensing Authority 3. 1 The Board of Management (â€Å"BOM†) of industrial zones (â€Å"IZs†), export processing zones (â€Å"EPZs†), high-tech zones (â€Å"HTZs†), and economic zones (â€Å"EZs†) are responsible for licensing foreign investments within their zones. 3 . 2National important BOT projects and PPP projects are licensed by the Ministry of Planning and Investment (â€Å"MPI†). Oil and gas projects, credit institutions, insurance projects and law firms are licensed by Ministry of Trade and Industry, State Bank of Vietnam, Ministry of Finance and Ministry of Justice respectively. 3 . 3 The Provincial People’s Committee is the authority responsible for all other foreign investments. Licensing applications shall be su bmitted to these bodies, who will consult with other relevant governmental authorities (where so required) before issuing final approval. . 4 The Prime Minister will approve the following investment projects (unless they are not included in the approved master plan): (a) The following investment projects, irrespective of the source of investment capital and scale of investment: – construction and commercial operation of airports; air transportation; – construction and commercial operation of national sea ports; – exploration, mining and processing of petroleum; exploration and mining of minerals; – radio and television broadcasting; – commercial operation of casinos; – production of cigarettes; – stablishment of university training establishments; and 27 – establishment of IZs, EPZs, HTZs and EZs. (b) The following investment projects, irrespective of the source of investment capital but with a total invested capital of VND 1,5 00 billion or more in the following sectors: – business in electricity, processing of minerals, metallurgy; – construction of railway, road and internal waterway infrastructure; and – production and business of alcohol, beer; (c) The following projects with foreign-invested capital in the following sectors: – commercial operation of sea transportation; – onstruction of networks for and supply of postal and delivery, telecommunications and internet services, construction of wave transmission networks; – printing and distributing newspapers and printed matter, publishing; and – establishment of independent scientific research establishments. 4. Forms of Investment and Enterprise Under the â€Å"Law on Investment† and the â€Å"Law on Enterprises† foreign investors may choose the following forms of investment in Viet Nam: Investment forms: – Invest in business development; – Establish economic organizations (1 00% capital of foreign investors or joint venture); Purchase shares or contribute capital to participate in management of investment activities; – Invest in contractual forms of BBC, BO, BTO, BT, PPP; and – M of enterprises. While foreign investors are allowed to buy shares in many domestic companies without limitation, there are ownership limitations for certain companies listed on the Vietnam stock exchange and financial sectors. Foreign ownership cannot exceed 49 percent of listed companies and 30 percent of listed companies in the financial sector. Forms of enterprises: – Limited liability company (with one member or more than one member);

Australia vs. Netherlands Essay

Assignment 1: Cross-Cultural Dimensions Describe the effect of the cross-cultural dimensions of both Hofstede and Trompenaars on two subjects for both your home country as the country of your internship Trompenaars Australia 1. Universalism vs. particularism 2. Individualism vs. collectivism 3. Neutral vs. emotional 4. Specific vs. diffuse 5. Achievement vs. ascription 6. Sequential vs. synchronic 7. Internal vs. external control Leadership Leadership in Australia is very much based on rules. Therefore, clear instructions are given to the employees at all time, so that every single employee knows what he or she has to do. Because of the individualism, people all work for themselves. Together, however, they make sure the organisation’s result is positive. Group work is not really integrated in the Australian culture. Australians have the perception, because of their neutral character, that people can work together perfectly, without bonding in their personal lives. All of the above leads to a straight leadership. A manager talks to his or her employees to tell them what they have to do individually. No groups have to be monitored, so the manager can really concentrate on his own task and organise the workforce per individual. Organisational culture The organisational culture in Australia is also based on this individualism. As mentioned under ‘leadership’, Australian people mainly work individually. They believe that people should take their own decisions and must be self-reliant within a business and not dependent on managers or colleagues. Furthermore, the organisation is very strict. It is a loose and indirect organisation up to a certain extent. The communication between people within the organisation is very informal and direct. At the same time, the whole organisation is based on rules. Rules are more important than relationships according to the Australian culture. Netherlands 1. Universalism vs. particularism 2. Individualism vs. collectivism 3. Neutral vs. emotional 4. Specific vs. diffuse 5. Achievement vs. ascription 6. Sequential vs. synchronic 7. Internal vs. external control Leadership The Dutch leadership is based on the universalism, in other words on strict rules. Everything is determined with rules. However, the atmosphere at the working place is not strict. The communication from manager to employees is direct and formal. Employees know exactly what they are up to and can work on their work individually. Leaders trust their employees in this, they count on their employees to be self-reliant and independent in their work. Furthermore, Dutch managers work with strict deadlines. The Dutch culture is very much based on punctuality. They eat at 6 o’clock, they go to sleep at 11 o’clock. The same counts in the business-life. When a task is given to you, you are to make sure it is finished before the deadline set. Whenever possible, leaders give their employees reassurance that they are doing a good job. Employees also need this positive feedback to boost their self-confidence, which gives them a positive ‘get-up-and-go’ attitude. Good perf ormance is appreciated and rewarded. Organisational culture The organisational culture is mainly individual. The Dutch people want every single person to be happy. Therefore, they tend to give feedback all the time to boost self-confidence, they let everybody do their say in a discussion, etc. Furthermore, everybody is expected to have their work done before the set deadline. Dutch people are very punctual and therefore do not like people who show up late at meetings or who hand in their work too late. Next to these strict deadlines, almost everything is based on rules. Even to such an extent that rules come before relationships. Dutch people work together individually, which means that by all doing their work in the right way, they deliver a good organisation-wide result. Conclusion According to the cultural dimensions of Trompenaars, the Australian and the Dutch culture are very much alike. They only differ in one category, namely the internal vs. external control, where the Australian focus more on internal control, whereas the Netherlands concentrates more on external control. The other factors are all the same. Some are to a lesser extent, such as the achievement, which is far higher in Australia. However, it can be concluded that the Australian and the Dutch business culture are quite the same, certainly in the areas of leadership and organisational culture. Hofstede Australia 1. Power distance – 36 2. Individualism – 90 3. Masculinity – 61 4. Uncertainty Avoidance -51 5. Long-term Orientation-31 Leadership The hierarchical structure in Australia is nearly flat. To use Hofstede’s words: The power distance in Australia is relatively low. Managers are always easily accessible by employees and ask employees for their opinions. This kind of mutual information sharing leads to the best results for the workforce as a whole. If someone bosses the others around, a negative atmosphere arises and therefore the productivity might also suffer under these circumstances. This is not the case when information is shared on a regular basis, so that everybody knows what the company is up to and what is expected of him or her individually. This way, people can all work individually on what is expected of them and therefore, at the same time, deliver a good ‘group result’, because everybody does his own thing, so that everything is done eventually. People are not working closely together, because of the highly individualistic Australian culture, in which self-reliance is expected of the employees. Organisational culture The organisational culture is, as mentioned above, highly individualistic. There is some kind of cooperation, but this is not cooperation as we know it. Together, they make sure all the work is done, but this is not by really working together. The organisational culture is very transparent. Because of this transparency, every individual knows what is going on in the company and therefore knows what he or she is ought to do. Eventually, good individual work in all different departments adds up to a positive result in the organisation as a whole. This result is reviewed every quarter, because of the short-term-oriented Australian culture This individuality is because of the masculine character of Australian people. All people want to be the very best. They want to reach whatever their capacity allows them to achieve. And preferably as quickly as possible. Therefore, they mainly work for themselves and mainly care about their own well-being and the organisation is of secondary importance. Still, this characteristic is seen as an asset by many companies. People are hired on the basis of their winners mentality. This can, of course, be a good characteristic, but it should not be exaggerated, because then it can go at the cost of the organisation as a whole, which is of course not the intention. Netherlands 1. Power distance – 38 2. Individualism – 80 3. Masculinity – 14 4. Uncertainty Avoidance – 53 5. Long-term Orientation – 44 Leadership The power distance in the Dutch organisations is quite low. The hierarchical structure is quite flat. This, together with the feminine culture means that employees can communicate with their managers properly and managers also communicate with their staff. Therefore, the atmosphere in Dutch companies is generally good. The managers do not boss people around and they even ask their employees for their expertise and feedback. From an employee point of view, they can talk to the manager to ask for feedback, but only up to a certain extent. The individualistic culture of the Dutch organisations means that employees should be self-reliant and take initiatives. Organisational culture The Dutch organisational culture is one of punctuality, long discussions and impatience. First of all, the punctuality. The Dutch organisation is based on rules, punctuality and certainty. They want to avoid risk as much as possible and therefore try to make rules for everything, so that as little as possible can go wrong. The Dutch femininity means that they want the best for everyone. Therefore, discussions are mainly solved by compromises, which usually takes quite some time. In masculine cultures, decisions are made without looking at the preferences of certain groups, but because the Dutch believe in solidarity and equality, they want everybody to have their say, which leads to long discussions with compromises as end results. The Dutch impatience can be seen in their goal-mindedness. They want results to be achieved as quickly as possible. Furthermore, they want to keep up with the competition at every single moment. Therefore long-term plans are seldom made. Strategies are often adapted to that of their competitors, which makes it impossible to set a long-term organisational strategy. Conclusion Summarizing all of the above, the Australian culture and the Dutch culture do not differ that much. The only big difference is that the Dutch are feminine and the Australian are masculine, which makes the Australian organisational culture even more individualistic than the already individualistic Dutch culture. The Australians are more self-minded, whereas the Dutch want everybody to be equal and therefore do not take decisions themselves very often. When looking at the graph below, one can see that the two cultures do not differ all that much. Source: http://geert-hofstede.com/netherlands.html Assignment 2: Theoretical Models Relate to theoretical models to describe the above mentioned effect. Flat organisational structure. The model that can be found in both countries, Australia and the Netherlands, is the flat organisational structure. This means that managers do have a higher function, but do not act like they have a higher function. The flat organisational structure is the opposite of a highly hierarchical structure as described in Max Weber’s ‘bureaucratic organisation’ 1. In hierarchical structures, the organogram has several layers from top to bottom, whereas the flat organisational structure has one layer, in which the managers are besides the employees that work in lower functions. This means that managers and employees in lower functions work closely together. The employees can easily go to their managers to talk about business-related cases and the manager trusts on his or her employees’ expertise in the problem-solving of the organisation. This way, as Argyris also describes in his theory of adult personality2, a great mutual understanding and respect is created between managers and their employees. This mutual understanding and respect leads to a more positive attitude of all employees, which leads to better results for the organisation as a whole. Maslow’s theory of human needs A big difference can be found, when looking at Maslow’s theory of human needs. Maslow’s theory is based on two underlying principles, namely the ‘deficit principle’ and the ‘progression principle’. Mainly in the ‘progression principle’, there is a difference between Australia and the Netherlands. First of all, which are the human needs Maslow is talking about? In the ‘progression principle’, Maslow says that a need at any level is activated only when the next-lower-level need is satisfied3. In this definition, there is of course no difference. However, in the hierarchy of these needs, there is a difference. Because of the competitive character of Australian business people, as a result from their masculine background, the self-actualisation need in Australia is far higher than in the Netherlands, where people often still work together. Self-actualisation is the 5th need in Maslow’s hierarchy of needs. Based on t his higher self-actualisation in Australia, however, one can wonder if this is the fifth need in Australia as well. 1. Assignment 3: Cross-Cultural Differences Find out what the most important work related cross cultural differences are between your home country and the country of your internship. Explain them based on the cross cultural dimensions. Masculinity vs. femininity One of the biggest differences between the Australian and the Dutch business is the masculinity of Australia versus the femininity of the Netherlands. Australian masculinity is expressed in the urge of Australian people to be the best they can be and to reach the optimal allocation of their own strengths. Australian managers also pay attention to what people have achieved in the past, when hiring people. This makes the Australian market much more competitive than the Dutch market, because the Australian market is goal-oriented. This results in employees taking their own decisions, without consulting others. Contrary to this quick and efficient decision making, the Dutch tend to discuss problems with everyone until a compromise is reached. This is a highly feminine characteristic. Dutch people want to reach a consensus, before they take decisions. Internal vs. external control Another big difference between the two business cultures is the internal control versus the external control from Trompenaars, in which both countries differ. The internal control in the business culture of Australia is mainly recognisable in the behaviour of Australian managers. They tell their employees what to do and they trust that the work will be done before the determined deadline. They do not support their employees along the way or give them feedback on the work they are doing. The external control in the business culture of the Netherlands is mainly recognisable in the supportive behaviour of Dutch managers. They provide people with the right resources to do their job properly and afterwards give them feedback several times along the way. The Dutch employees are more ‘dependent’ on the help and constructive feedback of their managers/leaders. This gives them the self-confidence to do their work with a positive attitude. Wages The wages in the Netherlands are more fixed than the wages in Australia. In most Dutch businesses, people get a fixed salary, whereas in Australia, the salary is a low basis salary with on top commissions, which are linked to your performance. In some Dutch businesses, the strategy of incentives, bonuses or commissions is used as well, but in Australia, this wage strategy is quite common. Therefore, the Australian market is more competitive than the Dutch market. Australians have to sell products to get high wages, whereas Dutch business people know that whatever they sell, they will get the same salary, which provides much more security than the strategy the Australians tend to use. Do’s Be selfish; work by yourself and in this process, try to be the best you can be. This can lead to a higher salary because of commissions as well. When you do not grab chances, others will. Clearly state your qualifications; make a clear CV, in which you state everything you have done in the past that could be in any way relevant for that specific job. Be decisive; expect less monitoring than you would get in the Netherlands, so sometimes you have to take your own decisions. Be self-confident; Australian managers, as opposed to Dutch managers, expect that you can perform a task from start to finish without feedback along the way. Don’ts Expect extensive support; Australian managers do not give feedback along the way, whereas in the Netherlands this is usual. Try to reach a consensus; in the Netherlands, decisions are mostly reached by consensus, do not try this in Australia, where decisions are mainly made individually, quick and efficiently. Expect fixed wages; wages consist of a basis salary and bonuses or commissions, that are granted for good performance. Assignment 4: Questions/Hypotheses Clearly define at least two challenging business oriented questions/hypotheses which you want to have answered during your stay abroad. Hand in a clearly defined ‘ Plan of Action’ how you will come with the answers. Does the flat organisational structure also count for international interns? In other words, is an international intern also trusted for his or her expertise by people in higher functions? The best way to find this out is by going there and experiencing it. I want to go on an internship to really learn something, which is relevant for my future career in the business life. I am not going to Australia because of the nice weather and the white beaches. I am going to Australia to obtain relevant experience, which will be of great value for my career in business. Therefore, I want to get as important as possible within the company where my internship will be. That is why I wonder how important they allow me to be. Do they really involve me in decision-making? In other words, am I treated as an equal or not? To find this out, I will interview an intern that has already been to Australia to discuss the organisational differences and which qualities are appreciated most in Australia. Afterwards, I will make up for myself, together with a colleague, an employer and a co-student, whether I have these qualities and how I can use these the best in a company where I start as a stranger. Lastly, I will of course try to get involved as much as possible and in this process, I will find out if they really give me the chance of becoming important. Can I function the same when I am 17000 km from home? I am not only going to Australia to obtain working experience. I am also going there to grow responsibility and to obtain further social experience. I have lived with my parents for my whole life now and my stay in Marseille from September to December will me my first experience living on my own. However, from Marseille to the Netherlands is just 1100 kilometres, so if I need anything, I have the possibility to go home in the meantime. However, when I am 17000 kilometres from home, this is not a possibility anymore, so I really have to cope by myself. Another difference is that I am going to Marseille with two class mates. To Australia, I will be going alone, which makes is even more nerve-wracking. My stay in Australia will be my first experience completely on my own, far, far away from home. So for me, it is, next to an incredible working experience, also a real life experience. I am going to grow responsibility and maturity, which will change me as a person. I am curious whether this will have its effect on my behaviour on the work floor as well and if this situation allows me to function the same as I would do here. This question, I plan to answer by setting up a list of competences, which I will let one of my current employers, one co-student and one colleague fill in. After my stay in Australia, I will give the same list of competences to my internship coordinator and a colleague in Australia. By comparing the results of these lists, I can find out whether there are many differences and whether they are in my advantage or in my disadvantage. Besides, I will, of course, experience it myself and describe the process of my self-development on a personal level as well as on a business level in a process report. Bibliography Websites Austrade. (2012, March 23). Doing Business in the Netherlands. Retrieved May 21, 2012, from Austrade: http://www.austrade.gov.au/Doing-business-in-the-Netherlands/default.aspx Itim. (n.d.). Geert Hofstede. Retrieved May 21, 2012, from Geert Hofstede: http://geert-hofstede.com/ John Daly, S. S. (2004). Nursing Leadership. Retrieved May 21, 2012, from Google Books: http://books.google.nl/books?id=TrN3ZS0CNQcC&pg=PA28&lpg=PA28&dq=Trompenaars+Australia&source=bl&ots=mrfFE84Iuj&sig=Tqy2bx–eE6UhcfvYTqI7uKuNFc&hl=nl&sa=X&ei=O267T7XBEoWP-wbvpqjUDA&ved=0CGIQ6AEwAw#v=onepage&q=Trompenaars%20Australia&f=false Meehan, C. L. (2012). Flat Vs. Hierarchical Organizational Structure. Retrieved May 22, 2012, from Small Business: http://smallbusiness.chron.com/flat-vs-hierarchical-organizational-structure-724.html Mindtools. (n.d.). The Seven Dimensions of Culture. Retrieved May 21, 2012, from Mindtools: http://www.mindtools.com/pages/article/seven-dimensions.htm Sagepub. (2006, July 13). Dimens ions of Culture. Retrieved May 22, 2012, from Sagepub : http://www.sagepub.com/upm-data/11711_Chapter7.pdf Books Schemerhorn, J. R. (2010). Introduction to Management 10th edition. View as multi-pages

Learning to look Essay Example | Topics and Well Written Essays - 500 words - 2

Learning to look - Essay Example The advertisement also tries to emphasize on the natural nature of McDonald’s milkshakes, the milk is directly from the cow which feeds on the green pastures around it. This advertisement insists that nothing is added to the milk shake. The cow in the advertisement is also healthy further asserting that the milkshakes is healthy. Overall the advertisement is well colored and keeps the viewer in suspense as to what is going on. There are only four colors in the advertisement, all warm and appealing to the audience. A number of elements of design are well represented in the picture. The line plays its primary roles accordingly. It outlines the shapes of the cow and trampoline well. The line also creates movement and emphasis, and it finally it develops patterns and texture in the picture. The artistic elements of shape and mass are also consequently embodied in the advert; they elaborate the different dimensions and make the boundaries between the trampoline and the cow easily identifiable. The picture shows it is a bright day. The designer used the sunlight to create shadow patterns and also lead to the formation of dramatic effects. In design, value is the lightness or darkness of a color and its main purpose is to show the important aspects of the advert. The brightly colored cow is what is important in the advertisement. Finally color is the last element of design; it connects both physiologically and psychologically to the audience. The bright colors in the advert are inviting and create a positive attitude from the targeted people. This advert can be interpreted as having succeeded in its primary role of publicizing McDonald’s milkshakes. The fact that it is an advertisement about milkshakes, having a cow in it was a supplementary and complimented it a great deal. The trampoline serves the purpose of shaking the milk, and this is the height of creativity.

My Leadership Style Essay Example | Topics and Well Written Essays - 750 words

My Leadership Style - Essay Example According to the textbook Generalist Practice with Organization and Communities, written by Karen Ashman and Grafton Hull, leading entails â€Å"working with other systems, whether individuals, families, groups, organizations, or communities†(K., & H., 2008). In terms of the workplace, leadership is a key component in ensuring an organization’s success. A part of ensuring this success is a leader’s ability to communicate effectively. Within the article, â€Å"Ingredients of a Good Leader, communication has several purposes. If a leader is a good communicator, they will be able to keep a positive environment for their team(Andolsen, 2008). This is due to the fact that effective communication will eliminate confusion. In my own experience, I have dealt with projects where nobody knew what their role was or what they were supposed to be doing. As a leader, I sat everyone down and clearly spelled out what their own individual task was and how it would interconnect t o the overall project. The ability to supervise can be a rather tedious and difficult task. It is not easy to know how hands on to be or how hands off to be. A careful balance must be struck and a good leader will be able to identify that balance. There are a few key areas that a leader must be adept at when supervising others. Andolsen reveals that being able to recognize a person’s abilities, delegating tasks, and the ability to set standards and discipline are important factors in being successful at supervising(Andolsen, 2008). Delegation is where the leader hands out tasks that must be accomplished. Delegation goes hand in hand with recognizing someone’s abilities. If a person is particularly strong in one area, the leader should try to delegate tasks to this person that will play on those same strengths. In my own experience, I have been in charge of a few projects, both academic and professional, where I needed to hand over the reigns to another person and super vise their progress. It is difficult to do because if they mess up, the fault remains with the supervisor. Finally, a good leader needs to be able to work as a team. This is similar to the idea of leading by example in that the team needs to be able to see the leader in a more equal position. Team work is another way to do this. The first step in this process is to create a â€Å"spirit of team work. Andolsen defines this as â€Å"the belief that there is value in the work being done and that it can only be accomplished by a cooperative synergy among team members†(Andolsen, 2008). In a spirit of team work, everyone on the team must feel that they are an important asset and are of value. Team work and the spirit of team work can also determine how well the leader and their team will work together. In the article entitled, â€Å"Generosity and the Moral Imagination in the Practice of Teamwork† the importance of team work is discussed. â€Å"We should think carefully ab out the discourses within which we work and how needs are assessed and represented because these effect†¦ trust, interpersonal relationships, and†¦ultimately meeting staff needs†(Arber, 2009). When a leader is able to successfully incorporate a spirit of team work, they are likely going to strengthen their team in terms of being able to meet goals and also to instill a collaborative feeling for their team. In order to motivate other people to complete their goals, it is important to lead by example. Within the article enti

INTERNSHIP Essay Example | Topics and Well Written Essays - 500 words

INTERNSHIP - Essay Example I did get in touch with (name of the person) concerning the issue of internship in (company name). Who briefed me on the need to have a Human Resource Generalist so as to enhance customer services and relations between patients and the staff. During the internship, I would have to perform the following tasks in order to gain the required knowledge. First, I would strive to improve the client staff relation with each other. I would also ensure that we provide quality services to the customers every time. I would also channel for the advocacy of patients with an aim of improving medical providence in the hospitals. My supervisor during the internship period would be (name of the person). He or she would ensure that I carry out my actions as per the guidelines through the evaluation he will submit to my educational institution. The internship is quite beneficial to me as it will help me gain the knowledge and experience of a healthcare administrator in the future. I will utilize the skills acquired from my internship once I complete my studies at the university. It will be upon me to ensure that the relations between the customer and the hospital personnel has improved. The right form of communication will be used whenever passing on information from one section to the other. Would also ensure that the services offered by the company have risen to a considerable level. Together with Master’s degree, I also have other educational qualifications that give me an upper hand in the above-described job opportunity. I graduated from the Gardner-Webb University College Boiling Springs, NC with a Bachelor degree of Science in Health Care Management in December 2012. Personality is vital in the medical field to enhance the success. I am confident of my communication skills both in written and verbal form thus making it easier for me to communicate efficiently with the patients. I also have the

Enhancment of professional development and safe practice Essay

Enhancment of professional development and safe practice - Essay Example as an individual and a professional but the wider implications of having a mission in life, are much more meaningful and have widespread influence on his life. Reflection practices therefore, become important tool of self improvement. To facilitate personal and professional growth, it is not only essential to have identified goals but acquiring new knowledge and skills to improve professional expertise has also become a pre-requisite of the changing times. Reflective practices and exercise are important tools that are designed to add value to the over all personality of the so that they would be better able to meet the challenges of the time with equanimity and confidence. The art of effective communication is one of the most important ingredients of leadership. Reflective practices help to identify our shortcoming and promote wider understanding of the various methodologies to become more articulate and become familiar with the emerging new paradigms in the social dynamics. The reflective practices encourage confidence building so that they are better prepared to tackle critical situations and meet the challenges with more conviction and composure. It entails six steps of self evaluation practice for teaching and learning process that promotes personal and professional growth (Gibbs, 1988). The different steps are designed to provide an in-depth reflection on our actions that encourages us to look at our actions from the perspective of third person so that they (actions) could be evaluated and analyzed. The self analysis thus persuades one to improve and improvise our actions so that our performance outcome is improved, leading to professional growth with safe practice for oneself and others. This is the first step on Gibbs cycle and takes a look into one’s actions within the predefined situation. What happened? The whole episode that needs reflection is sequentially focused and all the facts as they happened are taken into account or recollected. This step

Research proposal Example | Topics and Well Written Essays - 1750 words

Research Proposal Example Gulf areas in general, and Saudi Arabia in particular, are oil rich regions with the economy being driven by the large oil producing organizations. The required financial support for the SMEs, in order to strengthen their capability to further contribute towards the progress of Saudi Arabia’s economy, is however somewhat lacking. This is despite the fact that SMEs have evidently exhibited great developmental potential. The current research aims to determine the role that SMEs play in the development of Saudi Arabia; as well as to identify any governmental and other business organizations’ support provided towards sustaining continued operations and growth of SMEs in the region. This paper be presented with a brief overview of studies and researches previously conducted on the subject through a literature review of SMEs, in general; the financial support of the government for SMEs in Saudi Arabia; and the role that SMEs play towards the development of the country. The ne xt section would focus on the research questions and methodology, which would identify the required method which would achieve responding to the main concerns identified within the discourse. Likewise, any limitation to the study would be presented; prior to delving into the ethical considerations, as required. Finally, the time scales which detail the tasks and time frames for the specific research portions would be detailed in the last section. 2.0 Literature Review There have been several studies conducted on the subject that aimed to determine the role of SMEs, in general; and SMEs within the Saudi Arabia region. Their definitions would be explored, including financial support and development role in the economy of Saudi Arabia. 2.1 Small and Medium Enterprises Though SMEs exist all over the world and in large numbers, there is still no concrete definition for SMEs due to various practical reasons. Fu (2011) suggested that defining SMEs differs from country to country and are ba sed upon different variables such as number of employees, revenue, nature of trade etc. (Fu, 2011). Normally, the number of employees for SMEs are defined at less than or equal to fifty for relatively small organizations whereas for medium organizations, the upper limit of number of employees is normally between 100 to 250 (Capitas, 2013). Thus, SMEs were clearly classified according to the number of employees, as well as the amount of sales revenues generated within a stipulated time frame. Within Saudi Arabia, various organizations define SMEs according to different criteria and are followed by different organizations. There are two important criteria used in defining SMEs within Saudi Arabia. One criteria followed by the SME Development Center is to have less than or equal to 20 employees for small organizations and 21-100 employees for medium organizations. However, Shalaby (2004) concentrated on suggesting that different criterion is being followed by Saudi Industrial Developme nt Fun, and it defines SMEs based upon the revenue criteria

The role of a project manager Essay Example | Topics and Well Written Essays - 2000 words

The role of a project manager - Essay Example roject manager is an individual who has the general responsibility for the successful planning, initiation, execution as well as closure of a project. A project manager is a person who is responsible for carrying out all the tasks and operations that are included in project management. Thus, the project success as well as failure centralizes on the project manager’s shoulders (Haughey, 2009). This paper presents a detailed analysis of roles and responsibilities that a project manager carries out. The purpose of this research is to analyze the impact of project manager’s performance on a project. This paper will also outline some examples of bad project management. Project management is a systematic way to scheduling and managing project activities and resources from beginning to end. Additionally, these project activities are divided into five phases, first phase is initiation, second is planning, third phase is executing, fourth is controlling, and last phase is completion or termination of the project. In addition, these phases of project management can be used in approximately any kind of project, since their purpose is to organize the different processes of project development (TechTarget, 2008).The fundamental reason for starting a project is to achieve particular objectives. In other words, the purpose for managing the processes as a project is to put attention on the jobs and control for the accomplishment of the objectives on small group or an individual. Additionally, a project is normally a temporary endeavor encompassing a lot of interconnected operations or processes, assigned a considerable cost, and continuing for few weeks or, months, or years. However, the management of a project is a complex and challenging task and the roles of project managers vary with the project requirements (Turban et al., 2005, p.309; Meredith & Mantel, 2006, p.13). The role of a project manager changes with the nature projects. Since, every project has unique nature,

Lyndon Baines Johnson Essay Example for Free

Lyndon Baines Johnson Essay In President Lyndon B. Johnson’s State of the Union speech in January of 1964, â€Å"The War on Poverty† was declared. Johnson personally appointed Sergeant Shriver to assist him in assembling a committee of academic and civil rights activists. Shriver asked Johns Hopkins University pediatrician, Dr. Robert Cooke, to gather a committee of the best specialists in all fields relating to children (University of Michigan, n.d.). All members of the committee met in January of 1965 to discuss a program intended to assist children in overcoming obstacles or setbacks caused by poverty. The University of Michigan (n.d.) Web site reports that among the suggested names for the program were â€Å"Baby Corps† and â€Å"Kiddie Corps.† Many of the committee members felt that having â€Å"corps† in the title would help link the program to positive political activism. However, it was ultimately agreed that the name Head Start was most suitable. The name refers to the intended close in the achievement gap between lower class students and their middle class peers. The program’s design afforded these students from lower class communities the opportunity to get academically closer to the assessed levels of their future fellow classmates (University of Michigan, n.d.). A few months later, in May of 1965, President Johnson publicly announced Project Head Start in the White House Rose Garden. The same year, Head Start began as an eight-week summer program for children from low-income communities on schedule to be enrolled in public schools in the fall. In that summer, more than 560,000 children across the country were served. The program provided preschool classes, dental care, medical care, and mental health services (University of Michigan, n.d.). The rationale for the institution of the Head Start program, and more importantly, its federal funding, is based on several factors. Children from low-income families are associated with higher rates of academic failure and are at a greater risk for being held back in grade school (Bendersky Lewis, 1994). There is a higher incidence of teen pregnancy as well as poorer adult employment records among those raised in poverty (Lamb, Land, Meadows, Traylor, 2005). Teens that have become pregnant are more likely to drop out of school and once out of school they are forced into accepting lower paying jobs. In turn, they raise their children in poverty. Of children raised in low-income families, 36% attend college, while 88% of students from affluent homes do so (Howard, 2001). Consequently, the disadvantage in terms of wage earning power is perpetuated. There has also been a correlation shown between poverty and an increased likelihood of smoking and illegal drug use (Klerman, 1991). In order to combat the negative consequences of poverty upon a childs outcome and disrupt the cycle, it was hypothesized that intervention programs in early childhood would positively affect long-term development. In fact, research results have borne this out. A great deal has been learned from research regarding the knowledge and skills required for children to be academically successful. Among preschool-aged children, letter knowledge, vocabulary, and phonological awareness, in addition to emotional and social factors, have significant impact on later academic success. For instance, predictions of tenth grade students’ reading scores can be, and have been, made with relatively precise accuracy based on knowledge of fundamental concepts such as the alphabet in kindergarten. As a matter of social policy, ensuring that children are equipped with the basic skills proven necessary to begin school ready to learn is a national responsibility (White House Bush Administration, 2004). Eighty percent of states in the United States have developed initiatives aimed at preparing young children for kindergarten. These 40 states recognize that children from low-income communities typically enter school several steps behind their more privileged peers with regard to skill and basic knowledge. The difficulty is on not only the student, but also the school in compensating for this variance. According to the Head Start Policy Book Web site (White House Bush Administration, 2004) more than half of the children growing up in today’s society are not cared for solely by their biological parents. These various guardianship arrangements play a role in preparation and take a toll on a child’s willingness or ability to focus and be ready to learn the offered curriculum. In 2001, states were given an additional reason for development of high-quality programs geared toward preschoolers with the No Child Left Behind Act. The Act holds states responsible for making sure that math and reading are proficiencies for all children. Based on research related to the positive effects of quality preschool programs coupled with the accountability factor on states for student performance, states should want to take control of delivering Head Start programs to provide a preschool experience that readies children for entering kindergarten (White House Bush Administration, 2004). Head Start’s comprehensive program includes activities intended to promote emotional, cognitive, and social development of children, in addition to providing health services for impoverished children. Taking into account studies on quality preschool programs discussed, seven presidents to date have felt that emphasis on early learning, and education as a top priority is the best method for preparing children for success in the long-term. Research shows that successful acquisition of specific language, reading, and social skills early on in a child’s development predicts future success not only in school, but also in life. This success in and out of the classroom has both a direct and indirect impact on the country as a whole. According to the Head Start Policy Book Web site, â€Å"Head Start sites that have implemented carefully designed programs that focus on school readiness have shown significant gains for children† (White House Bush Administration, 2004). The Strengths Framework has been utilized in composing this document. The first component of this framework states, â€Å"Social policies are societal responses to social problems.† Head Start is a policy that was designed as a direct response to poverty, which is one of America’s historically greatest social problems. In order for the policy to remain continuously successful for another 44 years, politicians must not lose sight of the positive impact that a high quality education has on children as they develop and ideally become productive members of society. Two of the most noted studies on early childhood intervention include the Abecedarian project, which began in 1972 and continued to monitor results for over 21 years, and the Perry Preschool study, which began in 1962 and concluded 27 years later. The findings of the Abecedarian project (Campbell, Ramey, Pungello, Sparling, Miller-Johnson, 2002) included higher cognitive test scores, higher scores for reading and arithmetic, a greater likelihood of attending a four-year college, and a lesser likelihood of becoming a teen parent or using marijuana, for those who participated in the program. Recounting the results of the Perry Preschool program, as a member of the research team, Dr. Lawrence Schweinhart (2002) reported that 7% of adult participants had been arrested five or more times compared with 35% of those who had not participated and 7% of participants had ever been arrested for a drug-related offense compared to 25% of non-participants. Participants were four times more likely to earn $2000 or more per month, almost 3 times as many own their own homes, and twice as many own a second car. Seventy-one percent of participants either graduated high school or received a GED compared to 54% of non-participants. When taking into account the results of higher earnings and income tax revenue, decreased utilization of special education and welfare services, and savings resulting from crime reduction, the study found that every public dollar spent on the program saved $7.16 in tax dollars. Early childhood is identified as the period between birth and age five. This period is a critical time as a child develops emotionally, physically, socially, and cognitively in a way that will affect the rest of his or her life. The pre-school learning is vital to success from kindergarten on into college (White House Bush Administration, 2004). Therefore, the overall goal of Head Start is to influence the level of social competence positively in children from families considered to be living at or below the poverty line. For the purpose of this paper, social competence refers to the child’s effectiveness in dealing with not only his or her current environment, but more about future responsibilities. The interrelatedness of intellectual and cognitive development, mental and physical health, and nutritional requirements are among the most important factors taken into account with social competence (City of Phoenix Human Services Department, 2008). In the 1998 Reauthorization of Head Start, Congress concentrated on perpetuation of the ideals that school readiness has a tremendous influence on the future of the nation. This was based, in part, on current research showing that improving the educational components of preschool programs is the best predictor of childrens future success in school. According to the White House Bush Administration (2004), â€Å"Congress set specific educational goals, including a requirement that at least fifty percent of Head Start teachers have an Associate degree or beyond by 2003, and required prioritized inclusion of reading and math readiness skills in Head Start curricula.† The Head Start program was created to provide comprehensive services to preschool children of low-income families. Included in these services are health services such as frequent medical screening, immunizations, nutritional assistance, and dental care. The services mostly associated with the Head Start program are cognitive development, school readiness, social skills training and enhancement, and mental health services. In addition, parents are given the opportunity to take part in the decision-making process as to the care of their children and as such, the program fosters parental involvement enhancing community cohesion. Additional support services for the families of Head Start participants are also provided. Originally, these services were only available to children between the ages of three and five. In 1994, Head Start was expanded to provide these services for infants and toddlers as well with the program extension of Early Head Start. The program also provides services to children with disabilities and their families. Head Start development programs are intended for low-income families. Family income is one of the primary factors in determining entitlement. The federal poverty guidelines, which are updated annually, are used to evaluate a family’s income. In addition, Early Head Start and Head Start programs must make at least 10% of their enrollment opportunities available to children with disabilities. A family is eligible for Head Start and Early Head Start services if it is able to meet the income guidelines and also one or more of the following: You have children from 6 weeks through 5 years, or You are pregnant, or You have children with special needs with an Individual Education Plan (IEP), or Individual Family Services Plan (IFSP), or You have foster children with high risk factors, or You are a parent with a disability and/or possessing disabling conditions. (Source: Parents in Community Action, Inc., 2009) Additionally, recent changes to entitlement eligibility under 37 U.S.C. 402a (g) allow children and spouses of members of the armed forces who receive supplemental subsistence allowance to withhold that income when being considered for Head Start services. The official verbiage states that any person â€Å"who, except on account of such allowance, would be eligible to receive a service provided under the Head Start Act, shall be considered eligible for such benefits notwithstanding the receipt of the allowance. The subsistence allowance would therefore not be counted in determining eligibility for programs authorized by the Head Start Act (Administration for Children Families, 2009). Grants are awarded by the federal government to local private and public agencies for the sole purpose of implementing Head Start programs to provide comprehensive child betterment and development services to families and children within their communities. Head Start was primarily enacted as a means of helping children, but it does provide services to low-income families as well in order to indirectly provide positive support to the child’s care system in the home. The mission of Head Start is to â€Å"promote school readiness to enable each child to develop to his or her fullest potential† (White House Bush Administration, 2004). As of 2004, more than 900,000 children annually had been reported as taking advantage of the services offered. These services included comprehensive health services, dental and physical exams, immunizations, and nutritional services, in addition to the education-related services. However, only 20% of the 900,000 children served in 2004 were enrolled in programs that provided full-day/full-year services for children of working families. In the fiscal year 2004, President Bush, according to the White House Bush Administration (2004) requested $6.8 billion in Head Start Program funding, which was an increase of more than $148 million over 2003. Beyond Head Start, federal legislation has created several other preschool programs aimed primarily at improving upon the academic growth of children considered poor and/or disabled. These include: Title I preschool program, which is intended to help prepare children for school in high poverty communities Early Head Start to promote healthy prenatal care for pregnant mothers and to enhance the development of infants and children under age 3 Special Education Preschool Grants, State Grants program, and the Special Education Grants for Infants and Families program, which between them provide funds for states to build early education programs for children with disabilities between birth and age 5. In addition to the preschool programs that have a primarily educational focus, the federal government provides states with $4.8 billion through the Child Care and Development Block Grant in order to pay for childcare programs. States have also used as much as $4 billion annually from the Temporary Assistance for Needy Families (TANF) block grant program to pay for childcare that serves working poor and low-income mothers (White House Bush Administration, 2004).

A Short Essay on Beauty Essay Example for Free

A Short Essay on Beauty Essay Beauty is defined as the quality present in a thing or person that gives intense pleasure or deep satisfaction to the mind, whether arising from sensory manifestations (as shape, color, sound, etc. ), a meaningful design or pattern, or something else (as a personality in which high spiritual qualities are manifest). However, beauty has been topic of debate in terms of its definition. In order to see what is special about pleasure in beauty, we must shift the focus back to consider what is special about the judgment of taste, which helps determine beauty in an object. For Kant, the judgment of taste claims â€Å"universal validity†, which he describes as follows:†¦ when [a man] puts a thing on a pedestal and calls it beautiful, he demands the same delight from others. He judges not merely for himself, but for all men, and then speaks of beauty as if it were a property of things. Thus he says that the thing is beautiful; and it is not as if he counts on others agreeing with him in his judgment of liking owing to his having found them in such agreement on a number of occasions, but he demands this agreement of them. He blames them if they judge differently, and denies them taste, which he still requires of them as something they ought to have; and to this extent it is not open to men to say: Every one has his own taste. This would be equivalent to saying that there is no such thing as taste, i. e. no aesthetic judgment capable of making a rightful claim upon the assent of all men. (Kant 1790, p. 52; see also pp. 136–139. However, having said that, there is art and architecture around the world which provides universal appeal. For example, the Cathedral of Notre Dame could easily enamor a Hindu family, without them having very little or no knowledge of its cultural or religious significance. The Taj Mahal and the Statue of David could exude great amounts of sublimity to people of every walks of life. What is it in Art and Architecture that arouses such pleasure and popularity? Corbusier once said, â€Å"The Architect, by his arrangements of forms, realizes an order which is a pure creation of his spirit; through forms and shapes he affects our senses to an acute degree and provokes plastic emotions; by the relationships which he creates he creates profound echoes in us, he gives us the measure of an order which we feel to be in accordance with that of our world, he determines the various movements of our heart and of our understanding; it is then we experience the sense of beauty. † The above stated personal opinion could very well be the reason of Art and Architecture being an inherent and quintessential part of the global cultural heritage. Also, Art and Architecture has also regarded as stimulants to generate happiness. As Fredrick M. Padelford mentioned, â€Å"Indeed, I think that we are not at all aware of the immense social asset that uniformly good architecture would be. Fancy a city in which all of the buildings are beautiful, and trace the influence on the lives of the inhabitants. In the first place, it would add greatly to the happiness of people, for, as has been observed, it is the normal function of beauty to make us happy. Unless we have allowed ourselves to become diseased, happiness will attend beauty as naturally as flowers turn to the sun† (Frederick M. Padelford, â€Å"The Civic Control of Architecture,† American Journal of Sociology, July 1908, 45-46). ] This short essay though it does not conclude with a well defined explanation of beauty, it will give one an idea about some the various elements, which forms a very prominent influence on beauty.