earticle

영어

The business success of ACE Company Limited in Vietnam which Korean SME (Small and medium enterprise) invested, is studied. So far Vietnam played a role as a production base for Korean companies so that they can produce labour-intensive goods with low wage. However, ACE Company Ltd. has established a branch in Vietnam which develops a new product called SIGNATURE for which high technical skills are needed. Those products are manufactured in Vietnam and exported to mainland China. Thanks to the FTA (Free Trade Agreement) between Vietnam and mainland China, export to China is more price-competitive from Vietnam than from Korea. Factors of business success in Vietnam are as follows; First, plan was well prepared in advance. For example, ACE CEO stayed for 1 year in order to establish ACE Company Limited branch in Vietnam. and he himself directed factory building and checked market situation. Secondly, ACE company utilized a FTA successfully and made packaging machine which has a good brand and quality. They sticked to an independent packaging brand named SIGNATURE and did a marketing by participating in various types of global exhibitions. Thirdly, They managed Vietnamese workers efficiently and had a close relationship with home company in Korea. As a result of these efforts, all employees including Vietnamese employees had an ownership of the company. Furthermore voluntary leadership of Korean managers and perfect internal control contributed to the success.