Vietnam used to be aSocialist republic and remains a communist dictatorship in the country.
During1986, after the economic liberalization began, Vietnam joined the World TradeOrganization in 2007. Currently Vietnam has a strong growth in the economic byexpanding in 6.7 percent this year. The exportation of the country is remainingstrong and moving forward on raising the exportation quantity in the future,due to strong investment from the foreign country by setting up productionfactories in the country. According to the Vietnam development Bank stated thatthere is a prediction of economic growth will increase more than 6 percent. Thisshows that Vietnam is in a really good condition to invest the rest of theproportion into the country by giving 40% for the rest of the equity that EagerBhd decided to invest. Besides that, the condition of construction sector is ina growth rate of 9.1% in 2016.
Which that the exchange rates of US dollar isconstant, this able Eager Bhd to make future financial decision more smoothly.The Vietnam government also had introduced a new country building projects tobuild public facilities and roads. This shows that although Eager Bhd investpart of the proportion in this country, but it has a high interest rate ofreturn during the long term investment in the country. The company is able togain profitability by doing business in the country with the government.Besides that, the exchange rate between home country and Vietnam, Earger Bhdable to import more goods and more capital in the country due to the homecountry rate is higher. The country also is one of the Asia’s most reliable marketsin opens for foreign investment. Which means that there is lower politicalbarrier for the investor to invest in Vietnam. In addition, Vietnam is alsohaving ease in buying the real estate for the local market and the foreigncompare to Malaysia and Thailand.
This leads to produce a large numbers ofdemand or fix demand that benefits the construction sector.In conclusion, EagerBhd is in a secure financial position to invest in both country. Improvementsin every area of the company are needed if the company is, in the first occasion,to continue surviving and then grow in the respective country in any conditionand risks. The main areas of improvement are the liquidity of the company,the measurement during having business and quality of working capital,profitability, and financial stability. Eager Bhd must address these areassimultaneously if the company is to overcome its present poor record.
