International Business

International Business: Vietnam

International Business: Vietnam

Introduction

In this era of globalisation as a result of which competition is further fuelled, organisations are increasingly looking to expand their business beyond national boundaries thereby involving in international business. With the shift in the economic infrastructure, economic as well as industrial level of development is increasing giving rise to newly industrialised countries (NICs) or economies. These countries are basically the derivative of less developed countries (LDCs) which are characterised as emerging economies due to their emerging position as major exporters of manufactured goods. It includes such countries as South Korea, Taiwan, Vietnam and Hong Kong among others. This globalisation and changing economic infrastructure posits significant opportunities to businesses operating across the world that if leveraged could catalyse business growth whilst contributing to its financial performance and longevity. However, the process of transforming any business into an international one and playing in an international field is not as simple as it appears to be, rather there are numerous factors at play here which are important to be focused upon for which purpose audit of international business opportunities is important for businesses to undertake prior to contemplating on entering in the international arena. The country that appears to be attractive in terms of profit potential, target market and across other important dimensions are usually selected so as to comprehensively audit the international business opportunities present in that particular country following which the process of international expansion starts, provided the audit provides favourable as well as feasible results. This process of the audit of international business opportunities is thus a critical factor that determines whether any organisation would extend beyond their national boundaries, and so it is imperative to be studied comprehensively. The purpose of this paper is inspired from this belief which is to audit international business opportunities in Vietnam which is an emerging economy. Conducting audit of international business opportunities in Vietnam is bound to further develop the concepts regarding the audit of international business opportunities, which in turn is considered to trigger effective decision making pertaining to international expansion.

Discussion

The Socialist republic of Vietnam is considered as a single party state with the only party assuming key political roles and influencing political activities being Community Party. Being the only political party of the country, they possess the power to exercise influence and control in a unique manner. Vietnam is the member of World Trade Organisation (WTO) and this is what could be indicated as one of the foremost factors that position it favourably for the countries, organisations and businesses seeking to direct their international expansion plan towards the emerging economy of Vietnam. World Trade Organisation mandates its member countries to continuously work towards the improvement of its business as well as investment environment, whilst strengthening its legal and political system so as to meet WTO's requirements and eligibility criteria. Recognising and abiding by that, Vietnam has been seen as involved in significant efforts in order to ensure that it remains in compliance with the standards ...