Read Case 2.1 - Vietnam's Market Potential and answer the following questions:
1. Discuss the market opportunities in Vietnam.
Vietnam is a centrally planned economy, and is not a member of the World Trade Organization. Virtually all aspects of doing business in Vietnam involve government approvals, dominated by state-owned companies which receive considerable protection, in procurement practices, as well as, through customs policy and administration. All product imports must be done through registered import agents. Many of these are newly established, with uncertain reputations.
Vietnam's human capacity and natural resources are impressive. Of its 80 million people, more than half are under the age of 25, 96 percent are literate, and most of these hard working people have an insatiable drive to learn English and Information technology skills. For example, manufacturers benefit from this low-cost literate workforce by paying total monthly salaries of only $40-50 for unskilled workers with a basic education, $200 for an English speaking engineer and $500 for project managers.
Compared to many places in China, that's a bargain. As important, Vietnam is rated as one of Asia's safest places to do business.
Vietnam is moving from a centrally planned and controlled economy to a market economy. The country's leadership believes that it must ready the country to join the World Trade Organization. With this opening of economic opportunity to the people of Vietnam, many businesses are looking for new markets.
Vietnam's consumer market is only now on the cusp of full blown market economic growth, the final vestiges of the communist, state-controlled economic system now being taken down. Only in Vietnam do you find a people who prefer Ford over Toyota and RCA over Sony. Give an average Vietnamese a choice between a Nike and a European-made show, and they will choose Nike. It's a...