The Socialist Republic of Vietnam, or more commonly known as simply Vietnam, rests on the Eastern shore of the Indochina Peninsula in South East Asia. Its boarders neighbor China to the North, and Laos and Cambodia to the West. The body of water on the Eastern shore is the South China Sea. This country has a rich culture and history, dating back to its independence from China in 938 ad. Their turbulent history has involved explosion of the French and conflict between the Northern and Southern halves, eventually leading to cold war-era conflict. Originally, the war started against France, then involved the United States after their backing of France. This ended with the fall of Saigon, and the South’s surrender. Today this communist run state is emerging from the shadows, and has bolstered an active emerging economy. The cultural environment involves religion, customs, and values of the people. In Vietnam these can become a barrier of entry for foreign or unfamiliar prospects. Understanding current economic struggles is also important when deliberating on whether to enter a market. This environment had seemed to be very promising, but has recently seen little success. Finally, analyzing the political environment may help cue in on Vietnams current standing with foreign powers, and overall governmental philosophies. The cultural, economic, and political environments are three factors that directly affect Vietnams business environment. Vietnamese culture is deeply engrained in everyday life, as well as the business environment, much like other Asian countries. It is important to understand and respect their culture, in order to build a relationship, before you begin to do business. Important values come from teachings of Confucianism, and the idea of “face” Vietnam is a highly collectivist community, where the needs of individuals are placed below those of the community. This can affect the business environment in many different ways. The business culture is seen to be quite hierarchical, where senior partners have the greatest influence. Younger employees are to respect their elders, and will not correct them even if they know they are wrong. This also ties into the concept of “face”. Vietnamese strongly encourage saving face, as Westerns would protect their reputations. Saving face is also seen in the business environment. When being pushed into a corner, Vietnamese will avoid confrontation in order to not upset another party. They will often either tell others what they want to hear, or not respond at all. This often leads to an abrupt end to a business partnership, or no repeat business. In order to do business, and affectively and penetrate the Vietnamese business market these traditions and values must be followed. Even with the Communists victory over the South in 1975, their capitalist ideals still remained. According to the text in, Japan and the Pacific Rim, “The Vietnamese government began to liberalize the economy in the mid-1980s”(Collinwood, 2011). This would eventually lead to Bill Clinton’s repeal of the economic embargo of Vietnam. Until recently, Vietnam has had the right senior to allow for their economy to thrive. The Vietnamese are infatuated with foreign products, and operate a market focused heavily on imports. Vietnam offers a large, natural resource-rich, agricultural center, with an ever growing literacy rate of their youthful population. These are all benefits that have helped the economy to survive and flourish in the past, though today the economy is going encountering many struggles. This started amongst the global financial crisis in 2008. According to Cox, “The global financial crisis dented the world trade and slowed foreign capital flows”(Cox, 2012). These failures are crucial keys to why Vietnam’s economy is currently struggling. Vietnamese banks have since stepped in to ensure the flow of money, offering loans and credits. To add to the downfalls, most capital flowing in to save
In what way does the political environment in Vietnam pose both an opportunity and a threat for American MNCs seeking to do business there?
Vietnam used to have a bad political environment for the United States to trade with due to the Vietnam War from the mid-1970s. However, Vietnam is now well on its way in establishing a vigorous trading relationship with the United States. In 1993, United States permitted the U.S. companies to take part in ventures in Vietnam that were financed by international…
political environment in Vietnam pose both an opportunity and a threat for American MNCs seeking to do business there?
Vietnam had close relation with the U.S.S.R because of the Vietnam war. In 1993, United States permitted the U.S. companies to take part in ventures in Vietnam that were financed by international aid agencies. Then a growing number of American firms began doing business in Vietnam. Vietnam is also the 150th member of the World Trade Organization. However, the economy of Vietnam has been…
instant coffee Joint Stock Company, Trung Nguyen coffee Limited Company, Vietnam Global Gateway Joint Venture and so on. Their major industries are manufacturing, processing and trading of tea, coffee; franchising and distribution services, modern retail like G7 mart.
Trung Nguyen is the first Vietnamese company who succeeded in applying a form of franchising in domestic and overseas markets and also the biggest exporter in Vietnam of processed coffee. Trung Nguyen now is having a network of nearly…
Cowan and design consultancy global brand network 8 mesh and representative offices around the world.
During that time, his loyalty to the business philosophy is simple: The talent, the good, long-term relationships with customers. So far, the nod from the owners of major brands such as Nestlé, Philip Morris, Coca-Cola, Heinz, Kraft Foods ...proved, business philosophy is simple but it is close to the foundation of success.
Opportunities for people to embrace
* Starting with the work of a marketing…
Case study: Vietnam
1. In what way dose the political environment in Vietnam pose both an opportunity and a threat for American MNCs seeking to do business there?
Since Vietnam has lagged behind other countries in Asia, it needs some improvement in economic growth. And the U.S trade embargo was lifted in 1994, it’s offering good opportunity for investors.
1). The implementation of the structural reforms which can modernize the national economy and produce more competitive…
competitors is moderate because KFC is the market leader in Vietnam with 75 restaurants. There are two main competitors: Lotteria and Jollibee (KFC Vietnam 2008). The threat may rise in 2010 because Lotteria will increase their restaurants to 80 outlets. Regarding to this competition, KFC also plans to growth total restaurant to 100 units and recently enhances their service by cutting short its delivery time to less than 30 minutes (Look At Vietnam 2008).
2.3 Competitor Analysis
adapt to different themes in the play. An important symbol O’Brien employs is that of a young girl, Mary Anne who was a soldier’s girlfriend. This girl, is said to have come visit the soldier in Vietnam. Although its unrealistic nature, this occurrence symbolizes the imperialistic approach America took in Vietnam and the effects it cause on people.
When Mary Anne first arrives everyone is in awe and disbelief. She is described as a young and innocent girl who brings…
abnormal and bizarre can be habitual to others. I have had the chance to experience a different culture which was familiar and unfamiliar.
My family is from Vietnam, a small country located in East asia near Laos and Cambodia. My parents told me many stories of them growing up and how difficult to make ends meet. They grew up during the Vietnam war where it was it was a difficult time for them, men were being drafted and women were being treated as slaves. After the war they were given the chance to…
of life (Vien, 2003). A change in social environments results in a change in culture as well, which is why Vietnam has three different regions. Many times, food is a factor that differentiates cultures from various areas. Within…
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A population of 85 million people
A huge potential electronics product consumer market
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Domestic Consumption Trends on the Rise
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Vietnam Country Profile Vietnam
• Population: 85 million
(~60% under the age of 30) 13th largest in the world
• Government: Socialist State • Literacy: 90.3% • Languages: Vietnamese (official), English (increasingly favored as second language)
Age Structure Age…