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http://dx.doi.org/10.9715/KILA.2018.46.6.001

A Study on the Entry Strategies of Small and Medium Sized Landscape Contractors to Vietnam by Risk Analysis in Overseas Projects  

Tae, Jongwook (Dept. of Environmental Science and Ecological Engineering, Graduate School, Korea University)
Jeong, Daeyoung (Division of Environmental Science and Ecological Engineering, Korea University)
Hwang, Joon (Research Institute, ANSAN Landscape Architecture Co., Ltd)
Chon, Jinhyung (Division of Environmental Science and Ecological Engineering, Korea University)
Publication Information
Journal of the Korean Institute of Landscape Architecture / v.46, no.6, 2018 , pp. 1-16 More about this Journal
Abstract
The decline in the construction industry has led to a decrease the profitability of small and medium-sized landscape contractors. To relieve this situation, small and medium-sized landscape contractors have continued to proactively find ways to enter global construction markets. However, many small and medium-sized landscape contractors face risks due to their lack of capacity and insufficient preparations to extend the business abroad. Thus, this study aims to analyze the current condition of the Vietnamese construction market and the related risk factors. It then suggests strategies to improve the small and medium-sized landscape contractors' competitiveness in that market. We investigated the business climate and analyzed risk factors. Finally, we developed expansion strategies and conducted in-depth interviews with six overseas construction professionals. The study results first showed that efforts to improve infrastructure and the increased demand for housing in Vietnam will lead to more opportunities for small and medium-sized landscape contractors entering the Vietnamese construction market. However, changes in the Vietnamese business climate may act as a variable. Second, we found that small and medium-sized landscape contractors' risk factors are mainly related to laws and regulations, government finance, market fluctuations, public administration system, minimum wage increases, financing and bonds, contracting, trees and materials, and design errors. Finally, small and medium-sized landscape contractors are required to consider the following when seeking to enter the Vietnamese construction market: short-term strategy and mid-to-long-term strategy. This study will be used as the basis for small and medium-sized landscape contractors to plan to enter the Vietnamese construction market and to contribute to the expansion of the global construction market in the landscape industry.
Keywords
Vietnamese Construction Industry; Overseas Construction Competitiveness; Business Climate; Risk Factor; In-depth Interview;
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