DECISION:

Appropriate entry mode:

According to PEST analysis, porters DIAMOND model analysis and SWOT analysis the appropriate mode of entry in Vietnam shipping industry is GREENFIELD. Vietnam, as a Developing country often offer prospective companies tax-breaks, subsidies and other types of incentives to set up green field investments. Their Governments often see that losing corporate tax revenue is a small price to pay if jobs are created and knowledge and technology is gained to boost the country's human capital. So as a Greenfield investor, we expense our capital resources for using their natural resources of shipping industry. We also combine the local know-how & other assets for our technological development. According to PEST analysis Vietnams political side is stable, Economical side, along with GDP growth, FDI inflow and outflow is still rising. Moreover, their position in Shipping Industry of competitive ranking is so good. Beside their per capita income and living cost is not so high. So if we enter as a Greenfield investor its a plus point for us. Recently their Shipping industry gains a lot of technical advantages as well as human resources to attain successes. So by using their technological advantages we can make our investment profitable and can be a technologically strong shipping industry. Beside according to porters diamond model our factors endowment, demand condition of Vietnams consumer, Firms strategy, structure and rivalry as well as relative and supportive industries are so upgraded, beneficial, well managed, and decentralized. So as a manger of Maersk Line Multinational Company, we have decided to enter in shipping industry of Vietnam as a Greenfield investor.