This overprotected and regulated system constrains skill and knowledge transfer from experienced foreign firms. The chance of developing a competitive industry is small. Bureaucratic top management handicaps implementation. Responsiveness of operational units can be high and willingness to improve can be impressive. But too many efforts are thwarted by a stiff and bureaucratic top management apparatus.
Improvement is discernable when new-generation managers make it to the higher level.
Rural and remote areas lack access to transport services. The transport system, despite substantial recent improvements, is overstretched, adding to costs and preventing many upland and rural areas from sharing in the benefits of Vietnam's growth. Funds are inadequate to maintain road investments. Rapid increase in motorization threatens cities. Capacity problems are looming with rapid motorization of cities, congestion, high accident rates and environmental pollution.