The PESTEL Analysis of Vinamilk:

The current environment have the huge influence the performance of company. Therefore, the PESTEL Analysis is very important for company to analyze the market. Political Environment: Vietnam is a country with a stable political institutions (th ch chnh tr) that facilitate doing business in Vietnam. Moreover, Vietnam is a peaceful country without war and terrorism. Top five of happy countries in the world. The government has many policies to support milk industry for running business. However, Vietnam is a mixed economy so government stills play the big role in market. Vietnam government decrease the foreign trade barrier to attract more investment. Especially the government have more tax policy to support the milk industry. Economics Environment: The Vietnams GDP trend increased day, it is a great opportunity for business. It means that the income and life will go up and the demand to spend money is high. However, the inflation rates is also high that mean the cost of production will increase. It will effect on the price of Vinamilk product in market. Vietnam is a member of WTO is a big pressure for local business to compete other foreign competitor. In addition, it is also help company to expand the business scales and attract more foreign investment. Social Cultural Environment: Vietnam is a young population country; it will lead the consumption of milk product in market. According WTO, Vietnam's average income 1300 USD each person in 2010 and the buyer in middle class is high. Therefore, they are the important customer that company should focus on. They will buy product not only for them but also for their children. The demand for improving the health and beauty increased so they need a product that can meet their satisfaction such as fresh milk. Technological Environment: Milk Joint Stock Company Vietnam (Vinamilk) is still the leading enterprises of the milk processing industry of Vietnam. Vinamilk leaders always factor in science and technology; depending on funding, market demand and product structure to convert technology investment timely. Therefore, customer will have a lot of information about company and company can build the trust and customers satisfaction. It play a big role in business therefore Vinamilk have a modern system from European countries of advances technology.

Environment factor: Company should focus on the waste disposal system in order to reduce the pollution. They need to use reasonable, saving natural resources, develop clean energy, renewable energy and boosting recycling, reuse and waste reduction. Company also develop and use the safe and fresh material. Legal factor: Vinamilk must ensure the production, which are safety and health for customer by using modern system. Company should follow the rule of food safety. Vietnam has many different tax rates so it will make difficult for any company. It also effect on the price decision of company.

The average GDP growth rate in the period 2004 - 2008 is high. Whereas the population growth was constrained led to the average level of income per capita GDP Increase year by year. In 2008, the landmark of economic development in Vietnam has moved from the group of countries with the lowest income to the group of countries low average income.