When it comes to investing in Vietnam, one of the Asia countries, it would be a mistake if we do not analyze the country’s political risk. Beside other exposure, such as the economic exposure, when trading in Vietnam, there are several significant political risks that need to be concerned. First of all, the currency control in Vietnam is very different compared to the U.S. The Vietnamese dong is effectively pegged to the dollar and fluctuates within a very narrow band. However, in a good side, investors can make bets on its direction using forward contracts, which allow buyers to purchase a currency at a set price at some future date. Another risk that investors need to know is the changes in tax or labor law in Vietnam. Compared with other Asia countries, Vietnam has one of the most complicated tax-system. They required business licensing tax, turnover tax, exercising tax, natural resource tax, profit tax, personal tax, etc. These tax reductions could dramatically reduce the profit of the foreign companies that want to invest in Vietnam. Once again, in a good side to overcome the tax challenges, their labor law is quite flexible. Although they have been adopting more and more standard international labor requirement for the workers, the cost of labor in Vietnam has been cheap compared to other oversea labor costs. Last but not least in the political risk in Vietnam is their regulatory restriction. Vietnam is seen as the opened door for foreign business. Their regulatory requirement is not as strict as the other countries’. Thus, foreign investors have a better chance of “going around” in the way they system works. Overall, although the political risk in Vietnam is quite a challenge to overcome, especially if you are a foreigner, but, under the eyes of experts, Vietnam is a great place to invest in the future.