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Vietnamese Market Potentials and Challenges - Case Study Example

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Vietnamese Market Potentials and Challenges

According to the research findings, it can, therefore, be said that many global companies have preceded Americans in venturing into Vietnam. Daewoo by South Korea was the only large investor but other companies that have heavily invested in Vietnam are Sony Honda, Toshiba, and British Petroleum bad Peugeot. The first US Company to market legally in Vietnam was Carrier, which windows air conditioners which appeared in Ho Chi Minh City and Hanoi stores. Pepsi and Coca-Cola companies were also first to venture in Vietnam. Experts believe that the market of Vietnam has great long-term potentials. However, compared to Thailand, it is less economically developed, and it might take it a minimum of two decades to reach the economic level of Thailand today. However, the location of the country at the center of Asia, together with enough low wage work-force powerfully attracts foreign investors into the country like a magnet. Presence of neighboring countries like Thailand and Malaysia which are fast developing has made Vietnam lag behind. Politically, the Vietnam War isolated it from the industrial West as well as the United States. Recently, the country has tried to solve many problems with the Chinese government and currently, China is an important economic ally of Vietnam. Vietnamese population is so poor that they only earn $200 per capita. This may still offer sufficient market for Pepsi products like tomato and chili sauces. Infrastructure is also underdeveloped where only 10% of roads are paved and electricity is also very unreliable. However, manufacture of Pepsi may not be affected because raw materials are readily available within the locality and labor force is sufficient and cheap. For every 100 people, there is rarely a telephone available and the system of banking is underdeveloped too. However, Vietnamese communist party is currently struggling to adapt market economy principle and bureaucracy. With layers built up in decades of the rules of communist, which slow change pace. State committee for investment and cooperation is the key agency and because every agency wants to make the final decision, then the investment climate must be improved if Pepsi and other companies are to thrive well in this country. ...Show more


This research is being carried out to evaluate and present Vietnamese market potentials and challenges and perception of Vietnamese Market Potentials and Challenges products. This essay also explores how western countries can help improve the political climate in Vietnam…
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