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Status Of Transition From Socialism
Vietnam is a country whose economy is evolving. Its rapidly changing economy is facing significant alterations in the process of transition. Vietnam is moving away from its current economy, which is a non-market socialist one, towards a market economy with a socialist orientation. Vietnam is one of the poorest countries in the world with a Gross Domestic Product of only $300. High levels of population along with the proper training will allow Vietnam to effectively use its number one resource, people. Australia plays a key role in assisting Vietnam's economic growth and development through their aid programs.
Economic reforms are changing Vietnam from an agricultural rich economy to a service industry one. Throughout the years, agriculture, as a percent of Gross national product, has decreased from year to year, while service and industrial are increasing. This steady decline is because of the changing situation with its economy. With this decrease, migration to cities and towns is usually normal, but not in this case, as Vietnam has stayed primarily rural. The main agricultural cash crops in Vietnam are rice, coffee, cashews, corn potatoes rubber, soybean and tea. Clothing, computers and electronics are a growing part of the economy as well. Tourism is the largest industry in the service sector.
In Vietnam land sales are not permitted. This is because of the communist rule, and the ownership of all land by the state. During the current economic reform to a market system of economy, household farms have replace the once popular collective farms. Land rights are guaranteed to the families for twenty years on farmland and fifty years for forestland. Though the farmers can still not own land they do have the right to use it, rent it, inherit it, and well as claim it as collateral.
The changing economy has caused the industrial and service sectors to steadily expand. With this increase, many are being dominated by state owned industries.
Along with the escalating change towards a market economy, competition within the private sector has also risen due to the fact that state owned enterprises are increasing as well. If these state owned enterprises were private then economic efficiency would be increased as well. This in turn would benefit the Vietnam economy and people. The government has instated rules so this can happen. They have also forced the state owned enterprises to be self- sufficient. They are now highly self-sufficient. They are self-run, determine what their production inputs and outputs are, and are responsible for the financing and accounting of their firm. Though they seem to be individual entities, the government still has a strong hold on them because the governments has complete ownership of the firm, even though there are shareholders.
With the institution of Doi Moi the economy of Vietnam has experienced a very strong growth. The past decade the Gross Domestic Product averaged 7.5%. Throughout the most recent years the growth has not been as severe but still positive. It was gaining strength as 2000 began but has been slowing down. There is still a positive growth but not as significant as in the mid 90s. See following chart for the Real GDP Growth in %.
Towards the end of the 90s many factors accounted for this slow down. Economics reforms were slowing as well. State owned enterprises and banks were becoming inefficient as well. This, along with a decrease in demand and consumption, a decrease in foreign and local investing, as well as a decrease in outputs all contributed to the slow down in economic growth. So, as this slow down became evident, changes needed were made in order to increase the GDP. In the year 2000, certain things happened which did in fact raise the growth in real GDP. The world economy was growing and manufacturing and commodity prices were improving as well. Along with a rapid growth in the industrial sector as well as the non-state sector Vietnam was able to recover from a slowing GDP growth quickly.
In order to accelerate the economic growth more and reduce the poverty, which seems to be plaguing the country, the Vietnam Government installed Doi Moi reforms. This process was accelerated by the collapse of the Soviet Union, formerly Vietnam's ... more
Find essay on Political Systems
A firms international marketing program must generally be
modified and adapted to foreign markets. This international
marketing program uses strategies to accomplish its
marketing goals. Within each foreign nation, the firm is
likely to find a combination of marketing environment and
target markets that are different from those of its own home
country and other foreign countries. It is important that in
international marketing, product, pricing, distribution and
promotional strategies be adapted accordingly. In order for
an international firm to function properly, cultural, social,
economic, and legal forces within the country must be
clearly understood. The task of International marketing is
more difficult and risky than expected by many firms.
One of the most controlling factors of international
marketing is management. It is very important for managers
to recognize the differences as well as similarities in buyer
behavior. Many mistakes can occur if managers fail to
realize that buyers differ from country to country. It is the
international differences in buyer behavior, rather than
similarities, which cause problems in successful international
marketing. An international marketing manager is a
manager responsible for facilitating the exchange of
products between the organization and its customers or
clients. Sometimes an international marketing manager will
find difficulties in completing the exchange of products.
Many surprises in international business are undesirable
human mistakes. An international corporation must fully
understand the foreign environment before pursuing
business matters. Problems constantly crop up and many
times have unexpected results. Sometimes these
unexpected results are unavoidable. Other times they are
avoidable. To be sure those avoidable situations do not
occur, international marketing managers must be aware of
Cultural differences take place among most nations of the
world. Differences in culture are one of the most significant
factors in an international company. All nationalities posses
unique characteristics, which are unknown to many
foreigners. Many of the top international businesses are
unaware of these cultural differences. It is very important to
understand these cultures in order to market a product
successfully. As an example, different nationalities have
different beliefs on how business matters should take place.
Where some countries prefer to work with a deadline other
countries can take this as being offensive. Many countries
feel it is an insult to be asked to work under a set time
period. A country may feel that a deadline is threatening
and may feel backed into a corner. On the other hand,
other countries try to expedite matters by setting deadlines.
To be effective in a foreign market it is necessary to
understand the local customs. Knowing what to do in a
foreign country is as important as knowing what not to do.
Failure to understand local customs can lead to serious
misunderstandings between business people. The simple
rejection of a cup of coffee can lead to total confusion. The
decline of an invite is sometimes considered an affront. To
avoid making blunders, a person must be able to discern
the difference between what is acceptable behavior and
what is not acceptable behavior. Violations of a local
custom can be insulting, and can cause uncomfortable
situations. To be a successful manager of international
marketing, one must be able to discern the differences as to
what must and must not be done. It is almost impossible to
attain complete knowledge and understanding of a foreign
As established, culture plays an important role in the drama
of international marketing. Of all the cultural aspects,
communication may be the most critical. It is certain that
communication has been involved in a number of cultural
confusion. Good communication linkages must be set
between a company and its customers, suppliers, its
employees, and the governments of the countries where it
performs business activities. Poor communication can
obviously cause various difficulties. One source of difficulty
among starting companies is that of effective
communication with potential buyers. The problem is that
there are many possible communication barriers.
Sometimes messages can be translated incorrectly,
regulations overlooked, and economic differences can be
ignored. Other times when the message does arrive, its
ineffectiveness can cause it to be of no value. Every now
and then a buyer will receive the message, but to the
companies disappointment, the message was sent incorrect.
It is normal in multinational businesses to send and receive
messages on a regular basis. Many well-known people
have incapacitated public speech introductions by using
inaccurate titles and names. Not all communication
problems are verbal. Some serious problems have
occurred as a result of non-verbal communication.
Non-verbal communication exist in numerous forms.
Sometimes a persons appearance can convey a stronger
message than intended. Untidy attire, for example, can be
more offensive in some nations than in others. The local
people often are willing to overlook most of the mistakes
made by tourist. On the ... more
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Status Of Transition From Socialism Vietnam is a country whose economy is evolving. Its rapidly changing economy is facing significant alterations in the process of transition. Vietnam is moving away from its current economy, which is a non-market socialist one, towards a market economy with a socialist orientation. Vietnam is one of the poorest countries in the world with a Gross Domestic Product of only $300. High levels of population along with the proper training will allow Vietnam to effect...
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