Vietnam - Market Entry Decisions
Vietnam - Market Entry Decisions
Vietnam - Market Entry Decisions
Timeline: 1975 1986 1986 1995 Socialist Republic of Vietnam Established Doi moi (Economic Renovation) was officially launched Inflation averaged 775% 17 conglomerates on the models of Chaebols formed in Vietnam
Economy of Vietnam: Total GDP - $19 million FDI averaged between $14M - $15M 4th largest source of FDI Local entrepreneurs faced shortage of capital GDP per capita: $235 EU gives MFN status to Vietnam
Forms of Market Participation: MNC Vietnam Import Agency MNC SOE Joint ventures Wholly Foreign owned organizations Processing contract (MNC using Vietnamese factory for production/assembly) Business co-operation Contract Build- operate transfer ventures Representative office
Doing Business in Vietnam - Critical Factors: Less Distribution (+) Corruption (-) Poor Infrastructure(-) Low workforce Costs(+)
Chemical Corporation: Strategy adopted: Independent distributors Strength: International Distribution Strategy Suggested: Can startup in IPZs Reason: Reduced Taxation Levels
Sports Corporation: Strategy Adopted: contracted out its operations Strength: Innovative design and marketing expertise Strategy suggested: Processing contract Reason: Less production costs, more returns
Children Corporation: Strategy Adopted: OEM customers to assemblers Strength: Understanding Children, optimized manufacturing operations, good marketing strategy Suggestion: JV with SOEs to succeed in retail
Page 1