Vietnam: A Better Place for a Factory
Vietnam: A Better Place for a Factory
Executive summary
After taking every possible factor into consideration, Vietnam is chosen as a better alternative to build a factory instead of Croatia and Botswana. The purpose of this report is to explain the reasons why Vietnam is an advisable choice, the selection of international direct investment as entry mode, as well as the risk assessment and management.
When it comes to the investment in Vietnam, the obvious reason first come to people’s mind is cheap labour, but in this report, a deep analysis of Vietnam will be done by adopting PESTEL, which analyse from the perspectives of political aspect, economic aspect, social aspect, technological aspect, environmental aspect, as well as legal aspect, the result turn out Vietnam is more feasible for mobile phone manufacture than another two countries. As to the selection of entry mode, direct investment will be the primary alternative for Vietnam, because most factors in the eclectic theory of Dunning can be settled in Vietnam. Further assessment and solution to the probable risks will also be given.
To put it into a nutshell, the research demonstrates the background and advantages of Vietnam as a destination to build factory, together with the decision of entry mode and risk management.
Introduction
Vietnam, a country which occupies an area of 329,000 square kilometres, locates in the southeast part of Asia. 3/4 of its territory is distributed with mountain and plateau. The number of its population is 86,160,000. As a developing country, its economy is developing rapidly. It maintains trade relationship with more than 150 countries around the global. Because of its astonishing economic growth, numerous enterprises are getting interested in establishing business in this country. Vietnam has for some years now been aggressively expanding its national infrastructure and growing its subscriber bases across all market segments. All kinds of industries are booming
Executive summary
After taking every possible factor into consideration, Vietnam is chosen as a better alternative to build a factory instead of Croatia and Botswana. The purpose of this report is to explain the reasons why Vietnam is an advisable choice, the selection of international direct investment as entry mode, as well as the risk assessment and management.
When it comes to the investment in Vietnam, the obvious reason first come to people’s mind is cheap labour, but in this report, a deep analysis of Vietnam will be done by adopting PESTEL, which analyse from the perspectives of political aspect, economic aspect, social aspect, technological aspect, environmental aspect, as well as legal aspect, the result turn out Vietnam is more feasible for mobile phone manufacture than another two countries. As to the selection of entry mode, direct investment will be the primary alternative for Vietnam, because most factors in the eclectic theory of Dunning can be settled in Vietnam. Further assessment and solution to the probable risks will also be given.
To put it into a nutshell, the research demonstrates the background and advantages of Vietnam as a destination to build factory, together with the decision of entry mode and risk management.
Introduction
Vietnam, a country which occupies an area of 329,000 square kilometres, locates in the southeast part of Asia. 3/4 of its territory is distributed with mountain and plateau. The number of its population is 86,160,000. As a developing country, its economy is developing rapidly. It maintains trade relationship with more than 150 countries around the global. Because of its astonishing economic growth, numerous enterprises are getting interested in establishing business in this country. Vietnam has for some years now been aggressively expanding its national infrastructure and growing its subscriber bases across all market segments. All kinds of industries are booming