Vietnam strong growth in the economic by

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Vietnam used to be a
Socialist republic and remains a communist dictatorship in the country. During
1986, after the economic liberalization began, Vietnam joined the World Trade
Organization in 2007. Currently Vietnam has a strong growth in the economic by
expanding in 6.7 percent this year. The exportation of the country is remaining
strong and moving forward on raising the exportation quantity in the future,
due to strong investment from the foreign country by setting up production
factories in the country. According to the Vietnam development Bank stated that
there is a prediction of economic growth will increase more than 6 percent. This
shows that Vietnam is in a really good condition to invest the rest of the
proportion into the country by giving 40% for the rest of the equity that Eager
Bhd decided to invest. Besides that, the condition of construction sector is in
a growth rate of 9.1% in 2016. Which that the exchange rates of US dollar is
constant, this able Eager Bhd to make future financial decision more smoothly.
The Vietnam government also had introduced a new country building projects to
build public facilities and roads. This shows that although Eager Bhd invest
part of the proportion in this country, but it has a high interest rate of
return during the long term investment in the country. The company is able to
gain profitability by doing business in the country with the government.
Besides that, the exchange rate between home country and Vietnam, Earger Bhd
able to import more goods and more capital in the country due to the home
country rate is higher. The country also is one of the Asia’s most reliable markets
in opens for foreign investment. Which means that there is lower political
barrier for the investor to invest in Vietnam. In addition, Vietnam is also
having ease in buying the real estate for the local market and the foreign
compare to Malaysia and Thailand. This leads to produce a large numbers of
demand or fix demand that benefits the construction sector.

In conclusion, Eager
Bhd is in a secure financial position to invest in both country. Improvements
in 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 condition
and 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 areas
simultaneously if the company is to overcome its present poor record.

Categories: Construction


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