Vietnam used to be aSocialist republic and remains a communist dictatorship in the country. Aftermany year later, the economic liberalization has began, Vietnam joined theWorld Trade Organization in 2007. Currently Vietnam has a strong growth in theeconomic by expanding in 6.
7 percent this year. The exportation of the countryis remaining strong and moving forward on raising the exportation quantity inthe future, due to strong investment from the foreign country by setting upproduction factories in the country. According to the Vietnam development Bankstated that there is a prediction of economic growth will increase more than 6percent. This shows that Vietnam is in a really good condition to invest therest of the proportion into the country by giving 40% for the rest of theequity that Eager Bhd decided to invest. Besides that, the condition ofconstruction sector is in a growth rate of 9.1% in 2016. Which that theexchange rates of US dollar is constant, this able Eager Bhd to make futurefinancial decision more smoothly. The Vietnam government also had introduced anew country building projects to build public facilities and roads.
This showsthat although Eager Bhd invest part of the proportion in this country, but ithas a high interest rate of return during the long term investment in thecountry. The company is able to gain profitability by doing business in the countrywith the government. Besides that, the exchange rate between home country andVietnam, Earger Bhd able to import more goods and more capital in the countrydue to the home country rate is higher. The country also is one of the Asia’smost reliable markets in opens for foreign investment. Which means that thereis 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 andthe foreign compare to Malaysia and Thailand.
This leads to produce a largenumbers of demand 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.