Big Old Saggy Balls

William Bell

Case 2

September 6th 2013

In 2001, United States President George Bush signed a free trade agreement with Vietnam. For many years U.S. Presidents had been trying to open Vietnam to trade. When this happened United States companies immediately seized the opportunity to start business in Vietnam. Vietnam has the twelfth highest population in the world, therefore one would assume that Vietnam has a massive consumer base. However the fact that it took the United States so long to start trade with Vietnam many other countries already had companies controlling the Vietnamese markets.

Even though other countries had a head start I believe that opening trade with the Vietnamese is beneficial to both countries. Consumer companies should look at then fact that sixty percent of the population is under twenty five. Therefore companies will find a lot of young consumers therefore consumer products that are released in vietnam should be aimed for a younger crowd. Such as Coca Cola, Pepsi, Nike, Gillette, etc.. Other opportunity areas to look at are the location, which Vietnam is in a great location next to highly populated, developing countries, also the fact that the Vietnamese labor cost is very low creates a great opportunity for companies to take there business to vietnam.

Cheap labor and startup cost is good for United States companies to bring there business to Vietnam. This is a good opportunity for both industrial companies and consumer product companies. When less labor cost is used more profits can be made, which is obviously the goal for any company looking to enter any market. The opportunity of companies in Vietnam will allow big business to produce products at a lower labor cost than in the United States this both good and bad for both countries. United States stores will benefit from lower prices and higher profits for companies. However this is at the cost of the Vietnamese who are being paid next to nothing to create these products....