Foreign companies’ investment

They may introduce the company's products to their friends. It's a way to reduce the advertising cost. And the reduction in costs brings more profits to the company. Canon launched two service centers in Vietnam, one in Ha Noi and the the other in Ho Chi Minh city.

"Our objective when establishing the two service centers is supporting consumers in a consistent way that adds value to their products. It is of primary importance to us that we are able to handle the broad scope of demands from our users at their convenience.", commented Mr. Mike Asao, Chief Representative of Canon Singapore in Vietnam.

We can see that Canon knows how to attract the new customers, keep, improve the loyal customers and satisfy them in order to gain benefits. The macro and micro environmental factors in Vietnam which might influence Canon's marketing decisions Company's making decision will be influenced by macro and micro environmental factors such as political, social, economic, technical enviroment; customers, employees, suppliers…

Macro environmental factors can be categorized by using the PEST model. PEST stands for political, economical, social and technological. When Canon came to Vietnam, the company had to pay attention to these factors. Political enviroment: Vietnam is a socialism country. Government policies control, support and encourage foreign companies' investment. This is an opportunity for Canon to penetrate to the Vietnam market. The Government knows that political stability is considered one of the most important factors that attracts the investors.

According to a survey by Japan Bank for International Cooperation in 2008, Vietnam has advantages in low labor cost, market growth potential and political stability. The political stability brings a safe to any Canon's business decisions in Vietnam. Besides that, tax policy, employment laws, environmental regulations, trade restrictions and tariffs in Vietnam are advantageous to Canon business affairs. For examples, The corporate income tax rate regulated in the Corporate Income Tax Law 2008 will reduce the general corporate income tax rate to 25% from the current 28%.

This reducing will help Canon to get more profit. Economic environment: In the 2006-2010 period, the country "basically stabilized the macro economy and maintained growth," the ministry of planning and investment said, according to the statement. According to a statement on the government's website that cited draft measures from the ministry of planning and investment, Vietnam's economy may grow between 7 percent and 8 percent annually from 2011 to 2015.

The economic growth makes sure that Vietnamese living standard' will be improved faster and they will be willing to buy Canon's products. This is a chance for the company to maximize the profit and increase the market share. Social environment: Vietnam's population is the 13th largest in the world, about 85. 2 millions people. The annual average growth rate of the Vietnam's population is 2. 23 per cent. The high population makes Vietnam become an ideal place to sell Canon products. Besides that, the working-age population has a bulge between the ages of 18 and 27 (see graph, below).