Vietnam: Market Entry Decisions

Harvard Business School Case #597-020

Case Software #XLS-249

Copyright © 2011 President and Fellows of Harvard College. No part of this product may be
reproduced, stored in a retrieval system or transmitted in any form or by any means—electronic,
mechanical, photocopying, recording or otherwise—without the permission of Harvard Business
School.
Exhibit 1 Survey of Japanese Corporations: Most Promising Countries for Future Investment

During the Ranking in No. of 336 Ranking in No. of 238 During the Ranking in No. of 274 Ranking in No. of 284
Next Three 1995 Survey Respondents 1994 Survey Respondents Next Three 1995 Survey Respondents 1994 Survey Respondents
Years Citings Citings Years Citings Citings
China 1 248 1 169 China 1 215 1 265
Thailand 2 122 2 75 Vietnam 2 113 2 114
Indonesia 3 110 4 58 India 3 98 7 38
U.S. 4 108 3 72 U.S. 4 83 4 85
Vietnam 5 95 6 34 Indonesia 5 66 5 83
Malaysia 6 73 5 57 Thailand 6 66 3 92
India 7 57 10 14 Burma 7 40 - -
Philippines 8 52 10 14 Malaysia 8 35 6 44
Singapore 9 32 7 33 Philippines 9 31 10 19
U.K. 10 24 9 19 U.K. 10 16 - -

Source: Adapted from Export-Import Bank of Japan data.

Exhibit 3 Vietnam—Economic Data

1995 1994 1993 1992

GDP (US$ millions) 19,100 13,900 12,800 9,900

Real GDP growth (%) 9.5 8.5 8.1 7.8
Exports (US$ millions) 5,200 4,250 3,010 2,600
Imports (US$ millions) 7,520 5,850 3,900 2,550
Retail price inflation 14.2 15.5 6.5 17.8

Source: Adapted from Economist Intelligence Unit data.

Exhibit 5 International Distribution Organization of Multinational Corporations

Chemical Corp. Sports Corp. Children Corp.

Total Global Network:

Independent distributors 11 30 5
Joint ventures 0 11 1
Direct distribution subsidiaries 45 17 30

Asia Pacific Region:

Independent distributors Indonesia Australia Philippines

New Zeland Indonesia South Korea
New Zealand Taiwan
Thailand

Joint ventures (MNC ownership Philippines (33%)

50% or less) Hong Kong (33%)
Singapore (33%)
Malaysia (33%)
Thailand (28%)
Taiwan (25%)

Direct distribution subsidiaries Australia Hong Kong Australia

(100% unless shown) Hong Kong India (60%) Hong Kong
Indonesia South Korea (80%) Indonesia
Japan People's Republic of Japan
Malaysia China (66%) Singapore
People's Republic of Japan (51%)
China(75%)
Philippines
Singapore
Souith Korea
Taiwan
Thailand