Vietnam

Abstract

Vietnam’s communist political environment has made it an interesting market for many of American multinational companies who are willing to take a chance there. In this paper, I will discuss how Vietnam’s political environment poses both an opportunity as well as a threat for American MNCs seeking to do business there, why U.S. multinationals so interested in going into Vietnam, how much potential they offer, how Vietnam compares to China as a place of Business, and why there are opportunities in Vietnam for high tech American firms.

Vietnam Environmental Analysis

Overview of Vietnam.

Vietnam is a small communist state that has been fluctuating between growing and declining since the fall of their close communist allies, the U.S.S.R. With 679 people per square mile, Vietnam’s economy has started to boom. In fact, in the last ten years the economy has doubled in size yet its poverty rate was halved (Federal Research Center Library of Congress, 2011). This is prominently because they have moved their economy away from communist views; realizing that communism doesn’t inspire the progress and individual creativity needed for the advancing global economy. Even though Vietnam isn’t entirely away from governmental control, American MNCs do have opportunity if they are looking to do business there. There are several aspects U.S. MNCs are interested in, particularly in the technology sector. Partly due to political and geographical similarities, doing business with Vietnam is comparable to doing business with China. High tech firms in America could indeed find opportunity as well. The political, legal, and technological environments impact doing business with various countries.