Mekong Corporation and the Viet Nam Motor Vehicle Industry
(11 pages of text)
Mekong, a joint venture among Japanese, Korean and Vietnamese auto assemblers, is facing significant changes in the business environment in Vietnam. As the government of Vietnam has implemented its economic and administrative reform program, foreign and domestic companies in Vietnam have had to deal with changes in regulations and competitive forces. In addition, Vietnam's membership in ASEAN (Association of South-East Asian Nations) has further complicated the business decisions that foreign companies have to make in this newly-opened economy. Students will be challenged to devise a strategy for Mekong as a multi-national company operating in the Far East.
This case can be taught in courses that discuss the environment of business, including courses that deal with the economics of international trade and investment. This case illustrates the difficulties involved in developing a new business in an emerging market. The case also illustrates certain aspects of Japanese investment in a southeast Asian economy, particularly the preparedness to operate in such an environment.
Vietnam, Small, 1996
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