Market research : SWECO Finland's potential entry in Vietnam in infrastructure consulting business
Nguyen, Duc Thanh (2019)
Nguyen, Duc Thanh
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019120424481
https://urn.fi/URN:NBN:fi:amk-2019120424481
Tiivistelmä
This bachelor thesis was conducted as a market research in the infrastructure consulting market in Vietnam. The necessity of the thesis resulted from SWECO Finland’s interest in exploring the expansion opportunities into the Vietnamese market. The main objective of the thesis was to provide the company with the necessary knowledge of the macro-economic and cultural characteristics of Vietnam. The purpose of the thesis was to research whether Vietnam would be an economically or culturally attractive market, thus supported SWECO Finland’s expansion decisionmaking.
The utilized theoretical framework for macro-economic factors was PESTLE analysis, and for cultural factors was Hofstede’s 6 cultural dimensions model. Resource audit was included to assist with the assessment of SWECO Finland’s hypothetical strength and weaknesses in the Vietnam market. The research findings and analysis of the Vietnamese market followed the frameworks covered in the theoretical background of the research.
Both primary and secondary data were utilized in this report. Secondary data was collected through public data sets, articles and journals from recognized research institutions, official Government statistics and reputable news outlets. Primary data was collected through observation and semi-structured interviews with people of relevant expertise. The analysis was conducted by a comparison between primary and secondary data, where the primary data would either serve as support or critic of the secondary data collected. Through the comparison, the most relevant data and conclusions concerning the Vietnamese market were drawn. Recommendations for the case company were based on those research findings and conclusions.
The research resulted in a comprehensive overview of the Vietnamese public infrastructure market. Primary data confirmed most of the secondary data collected while adding more supporting details, with no perceivable contradiction among data sources. Macro-economically, Vietnam emerged as a high-potential market due to the rapid economic growth, the massive infrastructure demand driven by urbanization and industrialization, and the Government’s recent efforts. However, there were market uncertainties that required careful consideration, with regulatory inefficiency and corruption being the most prominent ones. Culturally, Vietnam and Finland exhibited distinct differences. The thesis concluded that Vietnam was a market of high potentiality and medium risk. The author’s recommendations for market entry included a careful approach to mitigate risks concerning regulations, and the addition of a translator when negotiating to reduce the risk of cultural misunderstanding.
The utilized theoretical framework for macro-economic factors was PESTLE analysis, and for cultural factors was Hofstede’s 6 cultural dimensions model. Resource audit was included to assist with the assessment of SWECO Finland’s hypothetical strength and weaknesses in the Vietnam market. The research findings and analysis of the Vietnamese market followed the frameworks covered in the theoretical background of the research.
Both primary and secondary data were utilized in this report. Secondary data was collected through public data sets, articles and journals from recognized research institutions, official Government statistics and reputable news outlets. Primary data was collected through observation and semi-structured interviews with people of relevant expertise. The analysis was conducted by a comparison between primary and secondary data, where the primary data would either serve as support or critic of the secondary data collected. Through the comparison, the most relevant data and conclusions concerning the Vietnamese market were drawn. Recommendations for the case company were based on those research findings and conclusions.
The research resulted in a comprehensive overview of the Vietnamese public infrastructure market. Primary data confirmed most of the secondary data collected while adding more supporting details, with no perceivable contradiction among data sources. Macro-economically, Vietnam emerged as a high-potential market due to the rapid economic growth, the massive infrastructure demand driven by urbanization and industrialization, and the Government’s recent efforts. However, there were market uncertainties that required careful consideration, with regulatory inefficiency and corruption being the most prominent ones. Culturally, Vietnam and Finland exhibited distinct differences. The thesis concluded that Vietnam was a market of high potentiality and medium risk. The author’s recommendations for market entry included a careful approach to mitigate risks concerning regulations, and the addition of a translator when negotiating to reduce the risk of cultural misunderstanding.