Swot of Vietnam

467 Words2 Pages
SWOT (VFG) Strength 1. The first company in Vietnam to produce glass with advanced technology. 2. VFG products have won big prestige in the market for word-class quality, suitable for use in various applications. 3. shares risk with Viglacera and cost- save money 4. They were issued with an investment license with registered capital of us118 milliom 5. Viglacera shares the advance technology that NSG has- float glass techonology. 6. Strong protection from government tariff and non-tariff measures Weakness 1. 2001 when VFG plant was fully operational- reduced sales and surplus inventory. 2. Just like any glass manufacturers in Vietnam- productivity problems, high capital investment costs, difficulty in matching the prices of imported glass. 3. Viglacera management, lack of customer focus and political and personal agendas overrode commercial considerations 4. Higher production cost compared to other glass company 5. Partner lacked critical management skills. Opportunities 1. Construction booming and rapid growth in 1995 2. Tax exemptions for foreign countries (reduce cost) 3. Country politically stable 4. 40% tariff on imports (increase protection for local industry) Threats 1. Asian financial crisis in 1997- poor sales 2. Local and foreign competitors- lower production cost 3. Illegal import of glass –cheaper price- consumers price conscious 4. Transport cost are high 5. Different culture – Vietnam –based on development and close ties 6. Difficult to attract skilled staff- jeopardizing productivity level 7. Joining member into ASEAN Free Trade Agreement (AFTA) will eliminate that 40% import tariffs 8. Joint venture with lousy partner 9. Social factors such as resistance to foreigners PEST Political • Tax exemptions for foreign countries • Joint venture with local company- condition for receiving a license • 40% tariff on
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