Aim:

The purpose of this study is to explore the Vietnamese market for Electronic Road Tolls. Company X is a world wide supplier of electronic toll systems. They are focusing on systems that will reduce traffic congestion in cities or congestion created by road charge toll systems. Company X has been active in the South East Asia for over 10 years. Now they want to explore new markets in this region. The company is interested in developing countries where road infrastructure is expanding. Since Vietnam is one of the fastest growing economies in Asia Company X is interested in if it is a market they should enter.

Research questions: 

Should Company X enter the Vietnamese market?

If yes, which entry strategy should be used entering this market?

Method:

To analyze Company X’s internal and external environment I have used different theoretical methods, PEST analysis, Micro / Macro environmental analysis and with the SWOT framework I have summarized recommendations based on the facts I have gathered. I have also investigated different entry strategies to see what is most suitable for a Company X. I have collected data via interviews, literature and internet sources.

Result & Conclusions:

Short term Company X has the opportunity to come in with their products into Vietnam with a co-operation with Competitor A. They will set up a test system at one toll plaza between the airport and Hanoi with two lane dedicated for EFC and Company X is their first choice if they are competitive. This will give them the opportunity to be first on this market to implement microwave equipment in Vietnam and an opportunity to set the standard in the country for the future. 

Suggestions for future research:

The empirical data in this thesis is mainly gathered from secondary sources. The information would have been more accurate with more primary data.

Contribution of the thesis:

This thesis shows that large investments in road infrastructure are coming up in Vietnam. This thesis also shows that currently there is low activity from competitors using the same technology and this was not previously known by Company X.