Policy analysis is the assessment and study of the implementation of a principle or course of action intended to resolve public issues including economic problems. Policy evaluation does not only help the government attract Foreign Direct Investment (FDI) but also provides foreign investors with a clear orientation while preparing to join the Vietnamese market.
Why is policy analysis important to foreign investors?
Investors, especially foreign investors, who intend to participate in Vietnam's dynamic economic sectors are likely to have questions about the local government's policies. Issues related to legal capital, taxes, labor, investment incentives, and investment restrictions are of great concern to investors. Hence, policy analysis helps investors gain more insights about investing conditions in Vietnam, maximizing current advantages and minimizing potential risks.
Inability to fully comprehend policies, on the other hand, can cause tremendous troubles for investors. For example, due to problems regarding the policy of project investment value payment, investors of the Hanoi-Haiphong highway have to pay an unexpected monthly interest.
The methodology of Viettonkin policy analysis
Analysts can choose between different methods such as cost-benefit and cost analysis, needs assessment, implementation studies, and outcome studies, among others. Thus, whichever methodology an analyst chooses, the process normally follows a certain order, from the preparation phase to analysis and interpretation.
Step 1: Preparation phase: This phase acts as an agenda-setting step for the whole process, playing a vital role in guiding the research. In this phase, analysts will clarify their customers' needs, identify external and internal stakeholders related to those demands, and gather existing resources.
Step 2: Design phase: In this phase, analysts will gather and synthesize information sources such as studies and interviews to consider a diverse amount of data and come up with a conceptual framework. For example, below is the recap of the research study concerning the digital economy in Vietnam:
Part 1: Digital economy in ASEAN
This briefly introduces the digital economy on the regional scale, its achievement, and the outlook for the coming years. Through this, we attempt to address key areas of collaboration for Singaporean and regional investors within the infra-ASEAN investment environment.
Part 2: Legal & policy framework governing the digital economy in Vietnam and its implications for investors
We want to highlight the national strategies and action plans together with all the prevailing regulations and policy frameworks related to the development of the digital economy in Vietnam and the increasing importance of technology and hi-tech for the country's socio-economic development.
Part 3: Sectoral analysis of the Vietnamese digital economy
The last but not least important part of the study concentrates on the industry-specific analysis of the Vietnamese digital economy. The part includes the industries as listed. Correspondingly, the analysis follows a determined order from the general background and situation to particular issues in Vietnam and a detailed analysis of each sector.
Step 3: Data collection: This is the phase when researchers reorganize and refine information from legal documents and government perspectives so that it is valuable for the decision-making process.
Step 4: Analysis and Interpretation: This final phase predicts future trends regarding policy implementation through careful analysis.
The outcome of policy analysis
After careful and detailed research, policy analysis can produce a wide variety of outcomes. Based on each outcome, investors will be provided with information to consider and act accordingly. When the policy is regarded as preferable, investors often seize the opportunity to build their wealth. On the other hand, when the policy is causing challenges for the investment process, policy analysis providers like consulting firms will clearly address difficulties for customers and give them solutions to disadvantages that arise. The last possibility is a neutral investment policy. In this case, investors should continue updating this policy and wait until the situation is more ideal.
Apparently, policy analysis is critical for the investment process, guiding investors to make the right decision. Thus, the evaluation process might be exhausting and overwhelming since the public policy is very dynamic and the procedure requires deep knowledge of the economic environment. With a team full of experienced experts in the field, Viettonkin Consulting believes that we can provide you with great help in this challenging task. Contact us now via our website to learn more about our services.
