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International Business Study
BUILDING UP
YOUR OWN DREAMS
After a long time effectively closing the door to foreign investors, VietNam
has opened them again in recent years. The government has pursued an economic
liberalization policy and introduced market - based reforms. Price controls in
many areas have been scrapped, restriction on foreign investment have been
loosened and so on. Let’s have a look at the factors of production that effect the
decision making of “ Direct foreign investment may take place through either the
acquisition of existing facilities or the new one (from the perspective of the host
country like Viet Nam)”
• Land:
The S- shaped country, which has 330.930 square kilometers area of land and more
than 3000 km length of the seashore, becomes more and more attractive. With a
strategic location in the heart of South east Asia, Viet Nam’s long run prospects are
too bright for many foreign investors to ignore. Investors can find a suitable place in
hundred of the industrial zones with a reasonable cost. Thinking about building a
large new factories or firms, expanding new offices, setting up new huge ware
houses… Viet Nam ‘s land is available because of the existing out mode facilities as
well as the lacking of new infrastructure investment
• Labors:
Young active Viet Nam’s labor force which are workaholic, easily trained and
adapted quickly to new methods, technology. According to the Central Institute for
Economic Management (CIEM): in 2001, the foreign investment sector alone
provided jobs to 354.000 people, showing an increase of 20.000 against the year
2000. In general, Viet Namese workers have a relatively high education – attainment
compared to that of other countries in the region; as much as almost 80%
economically active people in the country finished their primary education or higher
levels.
• Capital
One of the encouraging signs for FDI in Viet Nam is the large capital increase for