An Innovative Business Modeling Approach of Long-term Strategic Decision-making for Foreign Enterprises in Vietnam

• Main Authors: Le, Quynh-Trang, 黎瓊庄
• Other Authors: Lee, Chung-Cheng
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/7u6jrk

碩士 === 朝陽科技大學 === 企業管理系 === 105 === Since the last decade of twenty century, China has been known as an attractive destination to foreign enterprises. However, the rising wage manufacturing very quickly in recent years has been one of the main reasons directly influence to FDI (Foreign Direct Investment) enterprises, especially who running business in labor-intensive industries in this country. Owning the same advantage in demographic bonus and relative lower salary level in comparison with China, Vietnam potential is undeniable. Nevertheless, not all the foreign enterprises can grab the potential and turn it into success. Thoroughly understanding this issue, in the study, we will propose an innovative business model to help foreign enterprises in making long-term strategic decision in Vietnam. The long-term success of a FDI enterprise is made up from many factors. However, we consider that the premise and prerequisite of the development and long-term stability of foreign enterprises come from the successful relationship between them and the host country. In fact, some of them because do not get insight about how important of the relationship; therefore, they even have wrong attitude and bad actions towards their host. That is one of the typical mistakes turn to failure of many FDI enterprises in Vietnam. To avoid these regrettable mistakes, the important things that we have to identify three issues: • Who are the main objects that FDI enterprises have to care? • What the right attitude they should have to the stakeholders? • How to do the right thing right with the right people? Therefore, we adopted the Business Model Canvas and Business Model Environment Analysis, proposed by Osterwalder & Pigneur (2010) as the main framework to specify the main objects in this case: Vietnamese’s Government, workers, and their families. On the other hand, based on these two methods, we also propose that mutually beneficial cooperation (or Gung Ho strategy, win – win strategy) is the key to solve the problem and respect each other is a right attitude that the enterprises should have to their Vietnamese friend. Keywords: Long-Term Investment Strategy; Foreign Enterprise; Innovative Business Model, Foreign Direct Investment