Essay on Case 1 - in the International Spotlight, Vietnam

1669 Words Nov 26th, 2011 7 Pages
Jason Proctor N00038265

Case 1:

In the International Spotlight, Vietnam

Management 4600 – International Management
CRN 85418 9/09/2011
1. In what way does the political environment in Vietnam pose both an opportunity and a threat for the American MNCs seeking to do business there?
The political environment poses an opportunity for American firms because the Vietnamese government is now working hard to attract U.S. investment. Their Government is continually being innovative and perfecting mechanisms and policies to encourage all non-state economic sectors to expand investment, including the U.S., to increase the efficiency
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Vietnam is also speeding up its negotiations with coal-exporting nations which include Australia and Russia. Vietnam has the need for even more power to fuel its power and industrial needs. To fill this need, Vietnam is looking to Russia to borrow funds to build its first nuclear electricity power plant. (WSJ) China has already implemented a nuclear program to help with their needs of electrical power supplement.

3. Will there be any opportunities in Vietnam for high-tech American firms? Why or why not?
Vietnam’s Chamber of Commerce says e-commerce will grow to $6 billion over the next three years, and consumers will pay $2 billion online by 2015 as 30 million internet users get comfortable with online purchasing. This leads me to believe that there are plenty of opportunities in Vietnam for high tech American firms. An example would be American high-tech solar panel maker First Solar. This company is investing in a $300 million factory in Vietnam that will employ 600 workers to make advanced semiconductor technology renewable energy products. Another example would be telecommunications. Companies that can offer cellular telephone and wireless technology will find Vietnam to be an excellent market to operate in. American firms can move in and build cellular towers at a lower cost than traditional buried and raised cable networks which means an

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