Mekong Corporation and the Vietnam Motor Vehicle Industry (B) Case Solution

In Mekong Corporation (Mekong) and the automotive industry of Vietnam (A) case, the 9A96H002 product, some analysts estimated that the Vietnamese automobile market was about to expand significantly. In 2007, the capacity of the industry has soared to almost 150,000. However, domestic sales increased by only about 40,000, and exports were negligible. This case (B) examines interventionist government policies that have stimulated the expansion of production capacity and minimize vehicle sales. A key element is the continuation of very high import duties and other taxes that have maintained a protected market for domestic manufacturers. In this context, the Mekong has continued to operate successfully. This case encourages students to consider the appropriate role of government to stimulate economic development, and the right business strategy in a protected market.
by
David W. Conklin,
Danielle Cadieux
Source: Ivey Publishing
5 pages.
Date Posted: December 10, 2007. Prod #: 907M74-PDF-ENG
Mekong Corporation and the automobile industry of Vietnam (B) Case Solution

Mekong Corporation and the Vietnam Motor Vehicle Industry (B) Case Solution
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