A group of Mihaylo MBA students visited Vietnam in January to experience the interconnected economies of the Pacific Rim. Their visit to Vietnam afforded a firsthand look at a rapidly-expanding transition economy with emerging business opportunities.
Vietnam is among the fastest-growing economies in the world, rapidly transforming into a regional and global leader in attracting and retaining foreign investment in coming years. The country has enjoyed one of the highest GDP growth rates in the world over the past decade, reaching 6.5% in 2015, with industry and construction powering the nation’s expansion.
Vietnam’s rapid expansion is fueled by foreign direct investment (FDI) in manufacturing as companies relocate their operations to the nation from China in favor of Vietnam’s lower labor costs. FDI reached $10 billion in 2014 and was likely about $12 billion in 2015.
Experiencing Vietnam’s Dynamism
Experiencing a vibrant global business environment is a valuable learning opportunity for Mihaylo MBA students. This group of students visited Vietnam’s largest city Saigon, officially known as Ho Chi Minh City, as part of their study tour of Asia this January. Their tour of the modern metropolis of more than 8 million people included panel discussions and meetings at local businesses, including a stop at Intel Vietnam, the world’s largest computer chip plant, representative of Vietnam’s expanding technology industry. More than 80% of the company’s latest central processing unit (CPU) model have been made in the country. While meeting senior leaders at Intel, students gained a better understanding of the unique challenges facing businesses in Vietnam as well as opportunities for future growth.