Vietnams Economic Transformation
Discussion Questions * Assess the market opportunities in Vietnam for both consumer-products companies and industrial-products companies. What is the nature of the opportunity?
When we consider the opportunities for foreign companies in Vietnam, we can make a list as follows, young population consist of large workforce with cheap labor cost, set-up cost and material cost, potential market which consist of competitors which are local companies with small capital and numerous economic laws and regulations have been changed to attract FDI. For consumer-product companies, the opportunities might be huge population. For the industrial-products companies, they were newly opened at that time to private sector, before joining WTO, most of industry companies were Government owned. We can also count its location as an opportunity; Vietnam is next to highly populated developing countries like China and India.
* Nike and several other well-known American companies are sourcing some of their production in Vietnam, thereby taking advantage of a labor force that is paid the equivalent of $2 per day or less. Are goods labeled "Made in Vietnam" likely to find widespread acceptance among American consumers?
Nike was one of the first US companies to shift its manufacturing to Vietnam. This act caused some criticism of poor working conditions. However, the majority of consumers are more value and brand conscious, and readily purchase products made in Vietnam. As it is seen in the table below there so many famous brands, which has highly acceptance among Americans, that produces its products in Vietnam. * Some critics have argued that Cuba is more deserving of diplomatic and trade relations with the United States than Vietnam. What are some of the factors behind this argument?
The reasons behind this argument might be there is more developed social state perception in Cuba such as highly developed medical care, education, and public transportation than
When we consider the opportunities for foreign companies in Vietnam, we can make a list as follows, young population consist of large workforce with cheap labor cost, set-up cost and material cost, potential market which consist of competitors which are local companies with small capital and numerous economic laws and regulations have been changed to attract FDI. For consumer-product companies, the opportunities might be huge population. For the industrial-products companies, they were newly opened at that time to private sector, before joining WTO, most of industry companies were Government owned. We can also count its location as an opportunity; Vietnam is next to highly populated developing countries like China and India.
* Nike and several other well-known American companies are sourcing some of their production in Vietnam, thereby taking advantage of a labor force that is paid the equivalent of $2 per day or less. Are goods labeled "Made in Vietnam" likely to find widespread acceptance among American consumers?
Nike was one of the first US companies to shift its manufacturing to Vietnam. This act caused some criticism of poor working conditions. However, the majority of consumers are more value and brand conscious, and readily purchase products made in Vietnam. As it is seen in the table below there so many famous brands, which has highly acceptance among Americans, that produces its products in Vietnam. * Some critics have argued that Cuba is more deserving of diplomatic and trade relations with the United States than Vietnam. What are some of the factors behind this argument?
The reasons behind this argument might be there is more developed social state perception in Cuba such as highly developed medical care, education, and public transportation than