Vietnam-Market Entry Essay

613 Words3 Pages
MKT9766-International Marketing Management Prof. Amitai Touval Sheryl Fan Vietnam: Market Entry Decisions case write-up There were 74 millions population in Vietnam, and growing at 2% per annum. It was the twelfth largest in the world. In addition, Its about 50% of the population was under aged 21, together with its workforce was also one of the best well educated among emerging countries in Asia. Other advantages of the workforce in Vietnam are that Vietnamese are relatively hard working and their salary standard is pretty low. Summing up the above attributes, it seems that it is a great opportunity to invest business in Vietnam. However, although the government launched the economic renovation including deregulation of prices, having the new commercial ownership laws to encourage private or foreign investment and so on, there were still few important concerns in this country, such as the notorious corruption, the bureaucracy, the lack of infrastructure, high range of tax depending on different products, and the Communist Party intended to keep controlling private firms. Chemical Co., one of U.S.-based MNCs, has excellent technics on producing chemical adhesives. If it could have invested the factory in Vietnam, It could enjoy the global distribution network. Its quality and wide applications of products can be another strength for its customers to purchase it. Though the price is higher than the product from China, the consumers can find its pricing-to-value for long-term saving. Yet, Chemical still has to encounter the high tax, 30%, of its product along with the lack of capability by its distributor or lack of ambition to dominate the market. Sport, another MNCs, has expertise on product design and the second largest market share in the world. It still has some concerns to enter this market, such as high tariff from 20% to 40%, counterfeit problem, and Vietnam
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