Vietnam International Business

2.1Country Background

Vietnam is in Southeast Asia bordering China in the north, and Laos and Cambodia in the west. On September, 1945, Ho Chi Minh proclaimed the independent Democratic Republic of Vietnam in Hanoi’s Ba Dinh square. The population in Vietnam is increasing, currently reach more than 90 Million in 2016. Nowadays, Vietnam has become a densely-populated developing country because it has been transitioning from the rigidity of centrally-planned economy since 1986. However, poverty in Vietnam has starting to decline, and the country working to create jobs to meet the challenge of labor force, since the population of people in Vietnam is growing more than one million every year. Hence, rapid development in Vietnam has generate demand for new vehicles in few years ago.

Country Development  

Vietnam entered its strategic development period 2011-2020 as a developing country of low-medium income. Vietnam has made a huge economic advances over the past 10 years. The goal of development for 2011-2020 is to become a modern industrialized. In recent year, Vietnam achieved as a fastest-growing economies in Asia. The quick improve of Vietnam economies has reduce the number of Vietnamese from poverty.  For Vietnam to sustain to economic growth and ensuring the benefit of nations is a challenge.

Vietnam‘s development goal for the period 2011- 2020 is basically to become a modern industrialized country of middle income. In my opinion, the country ‘s development strategies for 2011-2020 and for several decades after that must lay the ground for the country to successfully cut short its developing period, escape the “middle income trap” and become an developed industrial country of high income.

State-owned firms took off in Vietnam with the rise of post-war Communist government in 1980s. For example, development of oil and gas, phone service, run an airlines and the production of some dairy products and garments. Vietnam stat to privatize the state-owned firms, and the privatize pressure has increase in 2010 after state-owned Shipbuilding Industry Crop. defaulted on $600 million loan. Hence, number of purely government-owned firms has declined from 10,000 to 1,000. Besides, Vietnam has strengthen its trade and plan to increase foreign direct investment in manufacture sector, and to diversify its exports away from lower value products. The relation between Vietnam’s and US has shown the market improvement in Vietnam, Washington seeing Hanoi as a potential geopolitical ally in South East Asia.

Moreover, Vietnamese government seek to reduce the consumer prices and develop automobile industry by issued three additional licences for automotive assembly joint ventures. In 1996, Mitsubishi (Japan), Daewoo (Korea), and Daimler Benz (Germany) had start joint venture enterprises in HCMC ad Hanoi to assemble passenger vehicles, light utility trucks and passenger vans (Sturgeon, 1998).
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Country Prospect

In 2015, Vietnam integrates itself into global economy, so forecast to be a more opportunities for development. Vietnamese economy will improve quickly if Vietnam get sign the Trans-Pacific Partnership (TPP), Nguyen Huu Lam, director of Arirang Tour Service Company said. Trans-Pacific Partnership (TPP) is a secretive, multinational trade agreement that threatens to extend restrictive intellectual property (IP) laws across the globe and rewrite international rules on its enforcement. This mean that if Vietnamese business successful join markets with other 12 TPP member countries, the country economy will improve and benefit to various sectors.