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Case Question 2: Vietnamese government policymakers may entice your firm to locate the greenfield investment in Vietnam. Thus, your firm will want to negotiate for
Case Question 2: Vietnamese government policymakers may entice your firm to locate the greenfield investment in Vietnam. Thus, your firm will want to negotiate for a variety of government incentives. For example, your firm's negotiation team would want to address items such as free land for the investment, tax holidays, and possible low-interest financing from the Vietnamese government. In addition, the team could ask for other items, such as training the local labor force and infrastructure development to the greenfield site (including roads, electricity, water, and other utilities). As a team, brainstorm what potential government incentives should be considered for this foreign direct investment? Use the readings to augment your analysis. For example, what did you learn in the article on BMW in South Carolina that would bolster your response to obtaining government incentives from Vietnam? But remember that a "government incentive" has to be an item that you can negotiate for with the key decision-makers in Vietnam. An incentive is not part of the business environment that may be attractive, such as a low inflation rate. Be sure to review the Ministry of Planning and Investment for Vietnam website. Top 10 Foreign Direct Investment Incentives in Vietnam (Order the incentives from most important to least important.) 2. 4 7 8
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