Vietnam: Sustaining the Growth of an Asian Tiger Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Vietnam: Sustaining the Growth of an AsianTiger Case Solution

COUNTRY BACKGROUND:

The case study is about the economy and national value proposition of Vietnam, which is a South-Asian country that has seen several ups and downs in its history as a nation and as an economy. The major resources of the country are fossils and minerals, sea, forests and energy. The country has a moderate population of roughly more than 80 million and the average age of the society is roughly 27 years which is a healthy sign for the future prospects of the country because youth is the foundation for development of a country.

The country had traditionally been a province of China in the early ages and the economy of the region has rationally relied on the agricultural sector and rice mainly. The country has a communist government setup with only one political entity in the power structure of the country the Communist Party of Vietnam. However, this was not achieved without struggle and consequences. The communist resistance of the country had to fight three global powers of the world at that time including Japan, France and the United States.

The company was also embargoed and sanctioned previously due to its aggressive intents and illegal occupation of the neighboring country Cambodia. However, that changed after the government of the country changed its approach and stance. This facilitated the government of the country to become a member state of regional and global organizations like U.N and ASEAN and simultaneously the trade and business embargoes were lifted from the country as the relationships improved with the neighbors and world powers.

This improved the strategy of the government of the country which reaped immense benefits and advantages for the population and economy of the country as the growth rate has been phenomenal over the years. Reforms for the business sector of the country have been constantly introduced and improved over the time and this has generated a lot of foreign investors’ motivation and confidence in the economy of the country as several multinational giants have shifted their value chains and resources to the country due to the close geographic proximity of the country.

However, problems still exist in the current value proposition of the country as there are several issues and challenges that are arising due to these problems that include inflation, rising stock markets of the country and the most critical of all comprises of the rising prices of land/ real estate of the country, which is a cause of a concern for the current government and the future government that may get the power.

FRAMEWORKS:

MICROECONOMIC COMPETITIVENESS:

NATIONAL BUSINESS ENVIRONMENT:

The national business environment of the country is very attractive for local as well as foreign investors least to say. The political stability of the country is the most important reason for this reason as there is a single party political setup in the country. The economic reforms of the country along with the growth rate of the company that is due to the infrastructure and business development reforms of the government has enabled the country to be seen as a potential market for the foreigners. Moreover,flexible laws and ease for the locals to start the business are the main reasons for the positive business environment of the country.

CLUSTER DEVELOPMENT:

The business and corporate sector of the country has also witnessed immense cluster development over the time due to the support of the government of the country. The most important reason for the cluster development of the country as an attractive place for the foreign entities and interconnected businesses is the geographic location of the country as it is much closer to the much potential suppliers and buyer market that are under the concentration of the world globally. The other added advantage for these inter-connected organizations is the cheap labor cost and attractive business environment of the country..................

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