Construction sector and construction firms in Vietnam: Strategic issues in the economic transition

Whilst Vietnam has been in a transition process from the centrally subsidised to a market economy to integrate into local and international markets, its construction sector must also form part of this process. The construction sector and its firms have been undergoing their own transition. This paper, as a part of an ongoing research project, aims to point out the strategic issues for Vietnamese construction sector and how construction firms should adapt to the new environment. It reviews the position of the construction sector in the economy and in the economic transition of the country. Then, it investigates the changing structure of construction sector and processes in terms of strategic management. Using PEST analysis, it analyses the current internal/external environment of the construction sector, also the external operational environment of construction firms. A (SW)OT analysis is used to point out the strategic position of Vietnamese construction firms in the new environment. The longer term research project intends to help managers of construction firms understand thoroughly the strategic position of their organisations in the new market and may be useful for them to draw out suitable policy and strategies to adapt to the new operational environment when Vietnam fully integrates into the global market place.