Advantages and Disadvantages in setting up and managing a Captive Center in Vietnam

Abstract

This work concerns factors that Captive Centers would face when they operate in Vietnam. In other words, it purposes to perceive in detail what Vietnam offers to Captive Centers by identifying the advantages and disadvantages in establishing and managing Captive Centers in Vietnam from the perspective of foreign companies. Under the qualitative research method, the authors have done three interviews with the managers of two Captive Centers operating in Ho Chi Minh City, Vietnam, by sending them interview questions via email. Together with secondary data from the literature review mainly provided by Oshri, and information about Vietnam provided by national organizations, this thesis firstly describes the aspects such as definitions, trend or practical models of Captive Centers, then provides facts on economic conditions and business environment of the country together with some example countries. Then, by analyzing the answers from the respondents, specific information is used for the discussion to find out if cost saving, manpower supply, high market potential, and increasingly supportive business environment can benefit foreign companies. It also covers the conclusion that set up problems and human resource management are the two biggest obstacles companies face if they want to set up Captive Centers in Vietnam. The thesis is a one-sided perspective which discusses Captive Centers from the foreigner’s viewpoint, and does not examine how Captive Centers operate in Vietnam. This analysis concludes with the summary of the mentioned advantages and disadvantages faced by the two Captive Centers in Vietnam. Assumptions and recommendations for the development of the Captive Centers which are based on the provided theories are also presented. Finally, suggestions for further research are discussed.