Some investors believe the pullout proves that Vietnam's stalled transition from a command economy to a market system remains too great a gamble for Americans. Unpredictable policy changes like tripling the number of vehicle joint ventures raises the risk. Others point to the Ford factory as proof that patient U.S. companies willing to weather the transition will be in position to reap profits in the world's 12th most populous country. But Ford and the remaining 12 auto companies, all of which will assemble cars from imported knockdown kits, must compete for a small customer base. For now, production is strictly for domestic consumption, but in the future, the companies may export to other parts of Asia.
Most people use bicycles, pedicabs or motorbikes for transportation.
Fewer than 30,000 new vehicles were sold last year and the market is expected to grow to about 60,000 by the year 2000, industry analysts said. The Chrysler factory could have assembled 17,000. Capacity at the Ford factory is 14,000. All joint ventures in operation would be able to assemble 180,000 vehicles annually. Gilbert, who in the 1970s oversaw a start-up Ford factory in Taiwan, said he is operating within 4 percent of his budget.