Michaelporter's Presentation in Vietnam

Only available on StudyMode
  • Download(s) : 47
  • Published : January 16, 2011
Open Document
Text Preview
Vietnam’s Competitiveness and the Role of the Private Sector

Professor Michael E. Porter Harvard Business School Ho Chi Minh, Vietnam December 1, 2008 This presentation draws on ideas from Professor Porter’s books and articles, in particular, Competitive Strategy (The Free Press, 1980); Competitive Advantage (The Free Press, 1985); “What is Strategy?” (Harvard Business Review, Nov/Dec 1996); “Strategy and the Internet” (Harvard Business Review, March 2001); and a forthcoming book. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Michael E. Porter. Additional information may be found at the website of the Institute for Strategy and Competitiveness, www.isc.hbs.edu. Version: November 18, 2008, 3pm 20081201 – PACE strategy.ppt

1

Copyright 2007 © Professor Michael E. Porter

The Need For An Economic Strategy

• Vietnam has experienced an impressive growth over the last two decades • However, reforms so far are insufficient to move Vietnam to a middle income economy • The next several years will determine whether Vietnam will follow the experience of Korea, or the Philippines • Vietnam’s reform have been piecemeal and reactive • Improving Vietnam’s standard of living will require a long term economic strategy – A set of interrelated policy changes, institutional structures, and rigorous implementation mechanisms

20081201 – PACE strategy.ppt

2

Copyright 2007 © Professor Michael E. Porter

1

Agenda
• Understanding Vietnam’s Economic Performance

• Assessing Vietnamese Competitiveness

• Identifying Action Priorities

• Organizing for Competitiveness

• Creating an Economic Strategy

• Integrating Corporate Social Responsibility

20081201 – PACE strategy.ppt

3

Copyright 2007 © Professor Michael E. Porter

Prosperity Performance
PPP-adjusted GDP per Capita, 2007

Selected Countries
USA

$45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000
Mexico Malaysia Chile Ireland Singapore Switzerland Iceland Netherlands Canada Australia Austria Sweden Finland UK Germany Taiwan Japan France Bahrain Italy Spain Greece New Zealand Portugal Israel Saudi Arabia Hungary Croatia Poland Romania Slovenia Korea Czech Republic Slovakia Lithuania Russia Argentina Estonia Latvia Hong Kong

$10,000 $5,000 $0 0% 2%

Brazil

Costa Rica South Africa Turkey Thailand Colombia Egypt Indonesia Sri Lanka Philippines Pakistan Nigeria Bangladesh

Vietnam
India Cambodia

China

4%
4

6%

8%

10%

12%

Growth of Real GDP per Capita (PPP-adjusted), CAGR, 2003-2007 Source: EIU (2008), authors calculations
20081201 – PACE strategy.ppt Copyright 2007 © Professor Michael E. Porter

2

Labor Force Utilization
Labor Force Participation Rate, 2007 65%

Participation Rates, Selected Countries

60%

China Iceland Norway Thailand Hong Kong Canada Australia Portugal Sweden Russia Japan New Zealand Germany Czech Rep. Latvia USA UK Finland South Korea Spain Slovakia Lithuania Taiwan Indonesia Slovenia India France Bangladesh Poland Romania Chile Austria Hungary Italy Mexico Argentina Malaysia

Singapore (6.16%)

55%

Vietnam
Ireland

50%
Brazil

45%

Colombia

40%
Sri Lanka

Philippines Nicaragua Morocco Bulgaria

35%
Turkey

30% -3%

Pakistan

-2%

-1% 0% 1% 2% 3% Change in Labor Force Participation Rate, 2003-2007 Source: Economist Intelligence Unit (2008)
5

4%

5%

6%

20081201 – PACE strategy.ppt

Copyright 2007 © Professor Michael E. Porter

Comparative Labor Productivity
GDP per employee (PPP adjusted US$), 2007

Selected Countries

USA Ireland Norway Australia Canada Italy Austria Hong Kong

France Finland UK Sweden Denmark Singapore Taiwan Japan Iceland Germany Israel Switzerland South Korea Spain Greece Slovenia New Zealand Portugal Argentina Poland Saudi Arabia Malaysia...
tracking img