Internal Demand For Vietnam And Philippines


The Communist Party of Vietnam is the main party in this county and the center of power hence there is no strong opposition against government policies and imitative. The National Assembly is the only body mandated with legislative powers and oversights the executive. Vietnam has a stable socio-political environment committed to growth and this has been shown through implementation of policies for attractive business environment for foreign investors (100% permitted foreign ownership for most sectors). The Vietnamese government has in the past shown that it is committed to supporting and creating favourable conditions for investors. Vietnam’s Greenfield FDI Performance Index surpassed that of Thailand and Malaysia among the emerging markets in the region as a result of their depth and speed of economic integration and implementation of regulatory reforms. Free Trade Agreements has played a big role in in promoting investment opportunities in Vietnam.


The government has recently announced that it will implement a policy to promote linkage between foreign investment firms and local ones to have an industry with high technology usage and improve in the global market. Despite the successful efforts to woe investors, Vietnam’s has an underdeveloped productive domestic private sector. However, Vietnam has not had a favourable economic environment for the privatization of large scale state owned enterprises.

Privatization of Vietnam Airlines has been slow owing to laxity on the part of the government. There is a foreign investment limit of 49 per cent which was informed by the need to protect state interest. The cap on ownership has caused some investors to withdraw from the market or shy away from investing in it.


Philippines has a presidential form of government under a republican state. Philippines has had a challenging year in 2018 with regard to the political environment for business. President Rodrigo Duterte has faced accusations of running an authoritarian government and analysts have speculated that dictatorship may be formally instituted in the Philippines. Some of the key institutions like the courts have been undermined by the impeachment of the chief justice hence lowering public confidence in the judiciary. There is risk of insecurity especially arising from ISIS militants who have attacked cities like Marawi within the country. Therefore, democracy in this country is in a fragile state considering all the factors currently affecting the leadership.

The application of martial law and fight against drugs has no regard for human rights and has culminated in protests in Philippines. Despite the negative aspects of the Philippine politics, the government has been running the ‘Build, Build, Build’ initiative which is targeted at infrastructure development.

The government has thus been wooing investors into the infrastructure sector to boost growth. Infrastructure development and free enterprise are some of the principal objectives under the 2011- 2016 Philippine Development plan, aiming at increasing its global competitiveness. While the government has been undertaking nationalization of the nation’s industries, there has been focus on privatization of government corporations. Under the Build Operate Transfer Law, the government has set out policies to attract private investors as partners.

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  • Bao, T.B.N. (2017). Privatization of Vietnam Airlines: A successful Reform or A Timid Policy Step. NMBU. pp. 1-96
  • Doing Business in Vietnam. (2017). Retrieved [online] from
  • IATA. (2014). Strategic Opportunities for Vietnam Aviation: IATA. Retrieved [online] from
  • IMF. (2016). Vietnam: 2016 Article IV Consultation - Press Release; Staff Report; and Statement by the Executive Director for Vietnam. Country Report, 16/240: International Monetary Fund.
  • UNCTAD. (2017). World Investment Report 2017: Investment and the Digital Economy. United Nations Publication. pp. 99-150.

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