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a) The business environment is divided into three main
types Macro-environment, Micro-environment and Internal

Business Environment.
Macro-environment has six main factors:
 The first is Geographical and Ecological Factors:
Geographical conditions influence decisions regarding the
type of industry and business that can be conducted in a
specific region. This is because people from a particular
geographical area tend to have similar tastes, preferences,
and demands.
 The second is Demographic Factors: The demographic
environment includes several sub-factors: the size, growth,
age, and sex of the population, education level, language,
class, religion.
 The third is Economic Factors: The development or
decline of a business heavily depends on economic
conditions. A developing economy provides a favorable
business environment for maximizing economic growth.
 The fourth is Political and Legal Factors: The political
and legal environment encompasses laws and government
policies related to business.
 The fifth is Socio-cultural Factors: The social
environment concerns the environment of the entire society,
in which everyone participates. The cultural environment is
a combination of all subcultures with their distinct concepts,
beliefs, and values.
 The last one is Technological Factors: Almost all goods
produced today are closely linked to the achievements of
science and technology.
b) The next is Micro-environment: There are five factors in
micro-environment
 The first, Competition among sellers: In business and the
supply of goods and services, there will always be many
suppliers for a particular type of good or service, making
competition among sellers inevitable.
 The second, Existence of substitute products and
services: In today's highly competitive economy, the
constant innovation of products and services is
understandable. With numerous production facilities
supplying products, these entities are compelled to
continuously innovate in the best ways to attract customers.
 The third, New competitors: With rapid economic
development and expansion, many new businesses are
starting up. The increase in the number of businesses results
in numerous new competitors.
 The fourth, Supplier power: Businesses are dependent on
suppliers of raw materials. If the dependence of businesses
is not significant, they can negotiate with suppliers.
Conversely, if the dependence on suppliers is high,
businesses will have limited bargaining power and may not
be able to negotiate the best prices.
 And the last Buyer power: As we can easily observe and
compare, consumer demands are increasing, and the criteria
for choosing products and services are also rising. Meeting
the increasingly demanding criteria of consumers is one of
the challenges for businesses.
c) About Internal Business Environment
It refers to factors such as shareholders, business leaders,
employees, labor unions, scientists and experts, and sponsors.
The business environment is also an important factor. A good
business environment is also a good business environment for
businesses to develop.
2. The next I will talk about Analysis of
Business Environment
 About Natural Geography and Ecology Factors:
In Vietnam Abundant natural resources such as minerals,
forests, seas, and rivers not only provide raw materials for
production but also create unique products with high value in the
international market. The country's favorable geographical
location facilitates connections with major markets, promoting
exports and attracting foreign investment.
However, frequent natural disasters such as storms, floods,
and droughts disrupt production, damage infrastructure, and
affect people's lives. The diverse and complex terrain hinders
infrastructure development and goods transportation, especially
in remote areas.
 Demographics Factors:
Vietnam is currently experiencing a "demographic dividend"
with a young and dynamic population. The abundant labor force
not only provides a low-cost labor source for businesses but also
creates a large domestic consumer market. This attracts foreign
direct investment and stimulates economic growth.
However, the quality of the workforce remains a significant
challenge. Although there is an abundant labor force, the
proportion of highly skilled workers is still low, hindering efforts
to improve labor productivity and integrate into the global
economy.
 Economy Factors:
Vietnam's GDP growth rate has been quite stable in recent
years, creating a favorable business environment. This attracts
both domestic and foreign investment and expands the market
scale. With a large population and increasing per capita income,
the Vietnamese domestic market is a large and promising
consumer market.
 Politics and Law Factors:
Vietnam has maintained political stability for many years,
creating a relatively stable business environment. This attracts
foreign investment and promotes economic growth. Participation
in free trade agreements such as CPTPP and EVFTA has created
many export opportunities, reduced tariffs, and attracted foreign
direct investment.
 Technology Factors:
The rapid development of technology is having a profound
and comprehensive impact on the business sector. The
development of automation technologies helps reduce manual
labor, increase productivity, and reduce production costs.
Moreover, the emergence of online sales allows businesses to
reach global customers, expanding their market quickly and
effectively. Therefore, businesses must constantly innovate to
keep up with trends and compete with rivals.

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a) The business environment is divided into three main

types Macro-environment, Micro-environment and Internal

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