Foreign Effects
Globalization has allowed for the connection of our world. No matter where you're from, whether it be Asia, Europe, or America, a bond was formed between all people as a result of trade. Trade is the building block of a country's economy, up until the point that they are taken advantage of. This is often the case for countries who are in need of a boost. Vietnam is a developing country, it's trade is being established and it's economy is under construction. Foreign companies are taking advantage of the possible revenue that they may find. With the encroachment of foreign companies on Vietnam, economic growth and development have been limited.
The foreign implications on Vietnam's economy have molded it into it's present state. After finally becoming an independent country, Vietnam is working hard to get up onto it's own feet. Many people, including the Prime Minister (Chhompany), believe that in order to accomplish this they need to join the foreign market, and sell out their land to private companies. The government is looking for foreign investors to help build the economy (Vietnam's 2013). “One thing to claim is that European enterprises increasingly feel that Vietnam will be the center of ASEAN and it can be built into an economic center to well serve the whole region” (Vietnam's 2013). This quote shows the high expectations for Vietnam and their entry into the trade.
Foreign countries invasion of Vietnam has changed their economy. In 2007, Vietnam joined the WTO, World Trade Organization (Rousseau). This helps their FDI and other aspects of the economy. The FDI is the Foreign Direct Investment; where a company invests at least ten percent into a country other than their own. This can be done in three ways: Establishing a company in another country, buying a share of a company that already exists there, or joining in a partnership with other companies (Foreign Direct). In a test done about the real outcomes of foreign investment, three out of four regions (South Pacific, Asia, Africa, and South America) (Rousseau) showed that the foreign investment did not help. Despite the facts, many foreign investors (US, Asia, Australia, and Europe) are still looking forward to the long term investment of Vietnam (KKR Buys). Different types of foreign companies have set up in Vietnam, like the famous Coca Cola and Pepsi companies(International). Others include CMC Metals, Masan Group, and Mount Kellet (Partners).
For the exploitation of Vietnam and it's resources, the focus is on one company: Masan Group. According to the Masan annual reports, they are aware of the high levels of oil and gas and are preparing themselves ahead of time in order to get a jump on it. Vietnam's “mineral resources, agriculture, and energy” (Masan Group 2011) are also prime targets for Masan. Nui Phoa, a mine in Vietnam, was bought by Masan. This mine is expected to have around 55.4 million metric tons of materials and resources in it (Mount Kellet), half being tungsten. This mine will make approximately $300 million every year (Tudor), lasting for 16 years (Mount Kellet). Only professionals hired but Masan will be allowed to work and oversee the mine in order to get as much money out of it as possible