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Global Glimpse |
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Vietnam-Development and Investment |
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June 30th, 2008 Traveling throughout the rural and urban areas of Vietnam provides insight into the rapid levels of business and economic development occurring at all levels of their economy. Examples include: · A semi tractor from the company Old Dominion in North Carolina transporting products on the highway. · A sprawling Canon printer assembly plant in an industrial park on the outskirts of Hanoi. · Korean duty free stores along the major roads. · “V Mart” the up and coming Wal Mart of Vietnam. Ford and GM cars and trucks are on the roads. Both Ford and Toyota have production facilities in Vietnam. The countries that have taken the lead in investing in Vietnam over the past five years are Korea, Japan and Taiwan. During this past week the Prime Minister of Vietnam visited President Bush to continue the dialogue of expanding economic and business relations with the United States. Additional information on the visit and major economic initiatives in Vietnam can be seen at the Embassy of Vietnam’s web site, www.vietnamembassy-usa.org. An interesting point is how closely the two economies are linked already. The respective stock markets, inflation and the real estate downturn are following similar patterns in both nations. Cooperative efforts to address these issues and other bilateral issues will continue in these national level discussions in the future. During a meeting with a multi location steel distributor in Da Nang, Vietnam, it was apparent that business people in Vietnam are very interested in expanded and close relations with U.S. companies of all types. This particular company is expanding into other industry segments such as tourism, hydro power and training and education as part of their expansion activities in this new developing economy. U.S. companies have been taking a wait and see approach to Vietnam until there was a level of confidence in the political, legal and economic systems to support broader foreign direct investment. Clear and direct steps have been taken by the Vietnamese government to address these concerns. U.S. companies with a global strategy and interests in Southeast Asia should seriously consider if opportunities in a nation of 85 million people should be pursued. Other countries such as those previously mentioned are positioning in Vietnam and the investment infrastructure will continue to improve.
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