A case study of the construction and civil engineering industry

Abstract

The purpose of this thesis is to evaluate if there are opportunities for a Scandinavian company on the Vietnamese market for construction and civil engineering. A qualitative case study has been made in three steps to reach the purpose, namely an environmental analysis of Vietnam, an analysis of the Vietnamese construction and civil engineering industry, and an identification of the relevant strategies towards the Vietnamese government that can provide a company with competitive advantages.

Vietnam is a country that is in a transition from a centrally planned economy to a market economy, and although there have been many radical changes there is a great need for further reforms in order to make the country investor friendly. The largest obstacles are the bureaucracy and corruption, the insufficient banking system and legal framework, and lacking infrastructure that works as a bottleneck for further economic growth. Once the industrial growth accelerates, there will be a significant increase in demand for infrastructure, which provides great opportunities for Scandinavian construction and civil engineering companies.

The industry is highly competitive, and it is difficult for companies to differentiate themselves. In order to obtain competitive advantages, a company has to establish a network of trustful relations with key persons in the government which can lead to a favourable position in the negotiations for large infrastructure projects.