06 chiến lược gia nhập thị trường nhật bản của công ty cổ phần vinatea

TOPIC: VINATEA'S REPORT ON RESEARCH OF THE NEW JAPANESE EXPORT MARKET TEAM 06 - CLASS 06 LECTURER: NGUYEN THU HUONG 21TH MAY 2022 Team 06 NGUYỄN PHƯƠNG HẢI LINH - 22A4050239 PHẠM THỊ THÙY LIÊN - 22A4050031 NGUYỄN NHƯ HOA - 22A4050209 NGUYỄN THỊ THÚY - 22A4050006 PHẠM THỊ HẠNH -22A4050380 TRỊNH PHƯƠNG GIANG - 22A4050462 VŨ THỊ DUNG - 22A4050310 CONTENTS I INTRODUCTION REPORT - PAGE IV SELECT METHOD ADVANTAGES & DISADVANTAGE II COMPANY BACKGROUND V CONCLUSION III PESTEL ANALYSIS INTRODUCTION Tea industry is an important sector that has Japan is a difficul marker, but the demand been contributing to the socio-economic for tea of this nation is extremely huge Once development of Vietnam The industry has Vinatea successfully enters this market, it created a myriad of jobs for local people, will be a market that brings huge revenue alleviated poverty as well as provided stable and profits incomes for millions of growers across the This report is done for the main purpose of country There have been many successful reviewing and practicing the knowledge businesses in introducing Vietnamese tea to about international trade that had been the world mentioned in class by approaching a real of business and case of business From the perspective of a development, Vinatea is one of the leading specific trader, manufacturer, and exporter, enterprises which successfully exporting we present this report with the desire to high quality tea into many difficult markets clarify, in-depth the issues that exist around such as Germany, Czech Republic, the With more than 50 years Therefore, based experience, we on decided Vinatea's to export choose the search for new markets, business opportunities for exporters in general, and Vietnam exporters in particular Japanese market as the next target market for this business develop COMPANY BACKGROUND COMPANY BACKGROUND Company background and type of business Vietnam Tea Corporation - JSC (Vinatea) was established in 1958, which is a state-owned enterprise directly under the Ministry of Agriculture and Rural Development, and is the largest enterprise in terms of scale and operating area in Vietnam's tea industry, after shares (September 2017), Vinatea became a joint stock company Vinatea owns tea growing material areas and tea factories stretching throughout the Northern provinces of Vietnam such as: Phu Tho, Moc Chau, Thai Nguyen, Yen Bai, Nghia Lo, Lien Son, Ha Tinh, Ha Noi with the total tea growing area is nearly 4,300 with high yielding and good quality tea gardens Vinatea achieved the Rainforest Alliance international certificate on sustainable agricultural development for 70% of black tea growing areas and 50% of green tea growing areas; VIETGAP certification for 100% of green tea growing areas, complete and maintain a full value chain from raw material areas to factories according to SAN (Sustainable Agriculture Network) standards, with a team of staff, workers with professional qualifications and high skills COMPANY BACKGROUND COMPANY BACKGROUND Company background and type of business Vinatea with more than 50 years of experience provides clean, quality tea products, modern and convenient forms to meet the needs of both Vietnamese and international tea lovers Currently, the Company has commercial relations with more than 120 companies and trade organizations in over 50 countries and territories, with key product lines such as: Oolong tea, Orthordox black tea, and green tea according to Orthordox technology Japanese technology, herbal teas… Website: http://vinatea.com.vn/ Hotline: 0911933338 COMPANY BACKGROUND COMPANY BACKGROUND Reasons for finding a new foreign market An overseas market is a market outside the business organization's home country So, for a company based in Vietnam, the foreign market is anywhere outside of Vietnam By selling your products in foreign markets, you can reach a new customer base and those customers will bring you increased revenue even if you have saturated the domestic market Therefore, here are the reasons why businesses need to find a new foreign market Increase sales and profits Diversify your markets, making you less dependent on any one market Greater access to resources and talent Exposure to forex market opportunities Economies of scale and better margins as your production increases Achieve brand recognition as an international business In recent years, Vietnam's agricultural and fishery exports to Japan have grown rapidly and stably with a turnover of 10-30%/year Japan is Vietnam's third largest agricultural product export market In the first months of 2021, exports of agricultural, forestry and forestry products to this market reached over $1.9 billion The structure of import and export goods between Vietnam and Japan is not competitive but complementary Japan has a large import demand for agricultural, forestry, aquatic products, processed foods, consumer goods of all kinds, etc., while Vietnam has a great competitive advantage in these products COMPANY BACKGROUND Reasons for finding a new foreign market Regarding trade, Japan is Vietnam's number trading partner The two countries have given each other the most favored nation tax rate since 1999 Direct investment from the beginning of 2012 until now, out of 32 countries and territories having new investment projects in 31 provinces and cities of Vietnam, Japan is the leading country with newly and additionally registered investment capital of 2.86 billion USD, accounting for 67.1% of total new investment capital in Vietnam According to the Foreign Investment Agency (Ministry of Planning and Investment), up to now, Japan ranks 4th out of 94 countries and territories with foreign direct investment (FDI) into Vietnam with 1,664 valid projects effort, total investment capital is 23.6 billion VND In addition, Vietnam and Japan have signed Free Trade Agreements (FTAs), including the VietnamJapan Free Trade Agreement (VJEPA), the Regional Comprehensive Economic Partnership Agreement (RCEP) ), the ASEAN-Japan Free Trade Agreement (AJCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have opened up many competitive advantages for Vietnamese businesses in this market Japan is a difficult market If the export is successful, we will have a competitive advantage and a definite position in the international tea market COMPANY BACKGROUND Advantages and disadvantages of joint stock market Advantages of joint stock market Larger Capital The huge capital required by modern enterprises would not be possible under other forms of organizations like sole individual proprietorship and even in partnership The joint stock company by its widespread appeal to investors of all classes can raise adequate resources of capital required by large-scale enterprises Limited Liability Liability of the shareholders of a company is limited to the face value of the shares they have purchased It has a stimulating effect on investment The private property of the shareholder is not attachable to recover the dues of the company Stability of Existence The organization of a company as a separate legal entity gives it a character of permanence or continuity As an incorporated body, a company enjoys perpetual existence COMPANY BACKGROUND Advantages and disadvantages of joint stock market Advantages of joint stock market Economies of Scale The huge capital required by modern enterprises would not be possible under other forms of organizations like sole individual proprietorship and even in partnership The joint stock company by its widespread appeal to investors of all classes can raise adequate resources of capital required by large-scale enterprises Scope for Expansion As there is no restriction to the maximum number of members in a public company, expansion of business is easy by issuing new shares and debentures > With a population of nearly 126 million people and a per capita income of about $43,000 per person, Japan is a market with great consumption power > Japan is Vietnam's third largest agricultural product export market, in the first months of 2021, exports of agricultural, forestry and forestry products to this market reached over 1.9 billion USD > Tea, especially green tea, is the most important drink of the Japanese Every year, Japan consumes about 100,000 tons of tea, mainly green tea, of which about 85% is domestically produced green tea The most popular types of green tea in Japan are Sencha (75%), Bancha (10%), Tamarykucha (5%) and Matchu 1% > Imports into Japan reached 6.915 billion Yen in July 2021, up 28.5% from July 2020, to the highest level in the past three months, after increasing 32.7% in June 2021 > Inflation in Japan in October was 0.1% Excluding food and energy prices, the number is negative The BoJ expects 0% inflation in fiscal 2021 (ending March 2022) 11 Japan is a country with a tradition of drinking tea for thousands of years, tea in the minds of the Japanese people is not only a healthy drink, But moreover, drinking tea has become an art and a hobby for people old people with high income Tea, especially green tea, is the most important drink of the Japanese Every year, Japan consumes about 100,000 tons of tea, mainly green tea, of which about 85% is domestically produced green tea The most popular types of green tea in Japan are Sencha (75%), Bancha (10%), Tamarykucha (5%) and Matchu 1% The Gykuro type makes up less than 1% In Japan, tea is often grown on a small private farm, usually by a household Today in Japan, tea gardens that were once lush centuries ago are now abandoned In some cases the land is too expensive for farming, but most of the land is abandoned because older farmers are unable to continue their work According to Japan's Ministry of Agriculture, Forestry and Fisheries, the country had 59,248 tea farmers in 1995, and just 15 years later, the number of farmers has nearly halved Tea was quickly consumed in this land of tea lovers Therefore, exporting tea to Japan is a good opportunity for our country Specifically in terms of imports, Japan ranks fourth in the world in terms of imports of green tea in bulk, HS 090220, accounting for over 6% of the total world import turnover of this item and sixth in terms of imports of black tea HS 090240 (packed over 3kg), accounting for 5.71% These two items have increased import turnover, but Japan's import volume has decreased in the past years The main tea exporting countries to Japan are China (49.1%), Sri Lanka (24.6%); India (12.1%); UK (4.4%); Taiwan (3.4%); Kenya (2.2%); Indonesia (1.3%) 12 Vietnam's tea export turnover to Japan in 2020 is 1.2 million USD, accounting for only 0.7% of Japan's total tea import turnover - The tea products that Vietnam can export include: Green tea - packages over 3kg (HS: 090220, market capacity and exploitability is 81.6%); Black tea - packs over 3kg (HS: 090240, market capacity and exploitability is 99.6%) However, in recent years, tea exports to this market have decreased because Vietnam's tea has not yet met the tastes of fastidious Japanese consumers Japan is the largest importer of green tea from Vietnam with more than 50% of the volume of tea exported to this market being green tea However, Vietnamese tea accounts for only a small amount of Japan's total tea import volume (in 2007 this proportion was 0.6%) and the export price of Vietnam's tea is very low compared to the import price Japanese Japan is one of the countries with the highest per capita income in the world, purchasing power and prices of goods sold in the Japanese market are often many times higher than in other markets It can be said that this is a promising market for Vietnam and the fact that Vietnamese tea has access to this market has partly demonstrated the competitiveness of Vietnam's tea industry The signing of the Vietnam - Japan Comprehensive Economic Partnership Agreement (EPA) on December 25, 2008 in Tokyo will be a driving force for promoting free trade in goods and services, economic cooperation and investment between Vietnam and Japan countries in the near future It is expected that the EPA will take effect around mid-2009 According to the commitment of the Japanese side, the average tax rate for Vietnamese goods exported to Japan will be gradually reduced to 2.8% in 2018 favorable conditions for Vietnam's exports in general, including export tea Currently, there are more than 10 million Asians living and working in Japan Agricultural, aquatic and food products imported from Vietnam are becoming more and more widely known, well received by both the Japanese, the Vietnamese community as well as the people of other Asian countries, and have a good amount of consumption in the Japanese market In recent years, the tea industry has made great strides in tea growing, processing and trading The total area for tea production in the past years has been remained at around 130,000 According to the Food and Agriculture Organization of the United Nations (FAO), Vietnam's tea growing area ranked 5th in the world in 2018, after China, India, Kenya and Sri Lanka According to the plan to develop the agriculture sector to 2020, with a vision to 2030, approved by the MARD, the tea growing area is expected to remain stable at 140,000 from 2020 onwards 13 TECHNOLOGICAL ENVIRONMENT Green tea production is a lengthy process that involves growing the tea plant and processing the tea leaves Tea leaf processing is divided into two steps: preliminary processing of freshly picked tea leaves into raw tea and the process to turn raw tea into finished tea In Japan, the Tea Agriculture Association combines tea research institutes responsible for directing and providing technical services for tea production They will install automatic devices at certain locations, hourly to collect technical parameters, indicators, temperature, humidity, NPK content, and report the results to a computer for processing From there, the directions for using fertilizers, irrigation, etc are recommended to producers from the obtained parameters When products are successfully imported into the Japanese market, they must maintain product quality, selling prices and upgrade the export process in a professional manner; exchange to listen to the market for extensive product feedback including opinions on product quality, weight, packaging or usage instructions, find out recipes, how to use the product in accordance with the tastes and needs of customers from time to time and from region to region Safe tea production in Japan is mainly for domestic consumption Producers bring their products to the local Tea Agriculture Association for sale through an auction Besides the markets, there is a tea storage area to serve as a preservation service for buyers and sellers, and tea trading companies when there is a need for cold preservation Besides, there are also automation devices, automatic devices to transfer the goods to be returned to the door of the warehouse In terms of plant protection, recommendations on tea pest and disease control procedures are provided to producers in the form of a prevention calendar and specific instructions for farmers on the quality of semifinished tea (tannin) , solutes, caffeine, amino acids, ) The service fee that the association collects for services is about 2% of the value of the product provided on the service Due to the application of many quality standards, high cost, and shortage of area, the quantity of tea produced in Japan has not yet met the needs of the domestic market 14 ENVIRONMENTAL Environmental problems Although Japan is a wonderful country and has a high responsibility for protecting the environment, the environmental problems of Japan are also currently rising Since the end of World War II, Japan has strongly upgraded the industrial infrastructure and developed heavy-industrialization since about the 25th year of the Showa period A large amount of pollutants had been emitted because of the massive increase in industrial manufacturing Also because factories were built on waterfront areas to increase production efficiency, the sources of pollutant generation were concentrated Terrible pollution-related diseases, including four major diseases such as Minamata disease and Yokkaichi asthma, were triggered Rapid industrial development, economic growth, and the increase of the country's population have influenced the environment in Japan over the past decades Air, land, and marine pollution have become major issues, causing health problems, and contributing to climate change This figure illustrates the total environmental impact by impact category As the figure shows, resource consumption is the largest impact category (about 33%) followed by global warming (about 27%), land use (about 23%), and urban air pollution (about 11%) Other impact categories represent less than 2% of the total About climate change, Japan is making history and headlines for reasons that go far beyond technological breakthroughs Over the past decade, Japan has experienced a variety of record-breaking extreme weather events that only confirm what we know: that the climate crisis is not some far-away event, but a threat that endangers us today Rising temperatures are facilitating the spread of disease across Japan Insects like mosquitoes, which thrive in warmer climates, can spread serious illnesses like dengue fever — an alarming reality given that cases have already increased That climate change is hindering the production of this vital grain throughout Japan Even though the quantity grown has remained the same in many regions, the combination of hotter temperatures and higher CO2 concentrations can decrease the actual quality of the grain, making it increasingly fragile and less nutritious than before 15 SOME ISSUES OF THE JAPANESE GOVERNMENT 09 Nowadays, the Japanese government is implementing some issues to reduce the negative environmental impact in this country such as: waste management, effect of global warming, urban planning, electronic waste management, clean technology, enact measures to reduce greenhouse gas emissions and enact laws of environmental policies, One of the biggest environmental issues in Japan is waste management as a result of the massive amount of trash in modern Japanese society Due to the small size of the tiny island nation of Japan, there is a lack of space that can accommodate this trash production For the effect of global warming, Japan is also a participant of the Kyoto Protocol It is under the set obligations which requires it to reduce its CO2 emissions to a level 6% lower than what it was producing in 1990 Japan is also to take any other measure that will help to curb the effect of climate change For urban planning, Tokyo city experiences all sorts of problems such as high real estate prices, long commute hours, less space per capita, as well as social problems Even with strict planning rules, the human impact on the environment in Japan can really be felt through urbanization For environmental policies, in a 2010 report, the OECD Noted that Japan has made significant environmental progress through a series of aggressive policies In their report, the OECD stated that this progress is especially evident in terms of reducing air emissions, water usage and municipal waste generation Additionally, the report also noted that Japan has made a conscious effort to move away from a strictly ecological model of sustainable development to a more encompassing approach that is focused on identifying the connections that exist between ecological protection, economic growth and social values For clean technology, the Japanese government has strongly supported the research, development and adoption of clean technology By using developed-in-Japan LED lights, Japanese businesses are able to cut office electricity consumption by as much as 40% Additionally, Komatsu, which is a major Japanese machinery manufacturer, has found that they have saved over 40% in energy costs over the last three years by installing solar panels, using underground water for cooling and adopting clean manufacturing technology 16 LE GA L E NV IR O NME NT About consumer protection laws, the Food Sanitation Act prohibits the sale of food and additives, contain or are suspected to contain In Japan, as administrative regulations, there are the Consumer Product Safety Act toxic or harmful substances, are contaminated (shohiseikatsuyo-seihin-anzen-hou), the Act on or Control of Household Products Containing suspected to be contaminated with pathogens, or involve a risk to human health due to contamination by foreign substances, or Harmful Substances, (yugaibusshitsu- on other grounds The Product Liability Act kateiyohin-kisei-hou) and the Food Sanitation shall cause the manufacturer or importer, etc Act, amongst others As a civil regulation, the to be liable for damages arising from the infringement on life, body or property which is Product Liability Act is of particular caused by a defect in the "product" (a movable importance Despite not being under the property that is manufactured or processed) jurisdiction of the CAA, the Electrical Appliance "Defect" refers to a lack of safety that the product ordinarily should provide, taking into and Material Safety Act (denkiyohin-anzen- the hou), the Road Transport Vehicle Act (doro- ordinarily foreseeable manner of use, the time unso-sharyo-hou), which regulates the safety of account of the delivery, nature and of the other product, circumstances concerning the product Product liability is a responsibility without manufacturers, etc fault of cars, and the APMD are nonetheless important the 17 About investment rules, Foreign investment in Japan is governed by the Foreign Exchange and Foreign Trade Act (FEFTA) The Ministry of Finance (MoF) and the Ministry of Economy, Trade and Industry (METI) are primarily responsible for enforcing the act Other agencies such as the Bank of Japan may also be involved depending on the type of investment About restrictions and prohibitions on foreign investment, Japan has relatively few restrictions on inbound foreign direct investment However, some sectors of the economy, including broadcasting, are subject to tighter regulation of foreign investment than others And for investment in the following sectors, prior notification of at least six months must be given to the Bank of Japan: Agriculture, forestry and fisheries; petroleum, utilities and nuclear energy; aviation, maritime transport and defense; and leather making About intellectual property, the Japan Patent Office administers all applications for trademarks, designs and patents The trademark system, established under the Trademark Act, provides for the protection of the marks and logos used in commercially traded goods and services The protection of designs– including the shape, pattern, color and other characteristics – is regulated by the Design Act, and the Patent Act covers patents 18 METHODS OF ENTRY Japan is a country that is strict about all standards such as food hygiene and safety, absolute restriction of stimulant chemicals, so penetrating the Japanese market requires strategies and methods of penetration correct market Through the above PESTLE analysis, the team has drawn methods to enter a new market for Vinatea tea company 19 DIRECT EXPORT Direct export is that Vinatea Company will sell its products directly to agents in Japan, which can be direct agents or distributors This is the simple method known to be the most common and minimizes all risks for the business And on the basis of mutual benefits Reach local potential It is difficult to control the customers quickly as dealers or market price when exporting to distributors and distributors and distributors rely on the price understand and are all local customs (because business connections difference between buying and Controlling 4P's marketing selling, they can locate products strategies (especially for agents, and have post-sales services, so as agents have a greater rely on the selling price is very difficult product commissions, to control) businesses can easily control The company needs to invest marketing strategies more in terms of finance and accordingly) human resources Capture easily the psychology and tastes of customers to have a suitable change strategy 20 ADVANTAGES Little risk involved in the market and A high degree of market diversification legal (as exporting to a third party when responsible internationalization capabilities of an for distributing the product who are aware of the legal the company utilizes the experienced exporter in the market issues involved) Almost no export experience is required Vinatea company will export through independent organizations in foreign countries In this form, the company will not directly participate in marketing or market its products, which is completely entrusted to a third party abroad A market approach like this can be useful for a company that wants to expand its target market and export a lot of output DISADVANTAGES Unable to control marketing and sales factors It is difficult to grasp the customer preferences due to little directly contact with the sales market If there are more members in the goods supply chain, it will increase the costs incurred, thereby reducing profits of the manufacturer 21 Vinatea company can enter into joint ventures with customers, suppliers and distributors or even their own competitors in Japan The two parties will contractually agree, a separate entity will be created jointly owned by the two parties (but separate from the core business of the Vinatea Company) This ensures that each party provides strengths such as: local Japanese joint venture partners will provide markets, distribution channels, knowledge Vinatea's side will provide cash, high-qualified staff, key marketing ADVANTAGES Help the export company (Vinatea) quickly create a reputation, because the Japanese company may be a well-known company and help quickly bring prestige to the brand in the Japanese market DISADVANTAGES A joint venture in Japan risks handing control of its technology to a rival Lack of long-term, as in the long run which can lead to disputes over equity and control of the two parties Vinatea company built a new market, opened its own stores, trained professionals in Japan This will require all the operational, business and management skills of the business The level of risk is proportional to the battle ADVANTAGES Production in Japan helps reduce costs related to taxes and transportation Goods can be guaranteed to be available at all times, so there is no delay in the supply chain Pricing policies can be cheaper than all of the above accession methods due to fewer intermediaries Vinatea Company can directly control all sales and profit activities DISADVANTAGES Initially, construction may require a lot of money because it is a completely new investment => It can be said that this is the most expensive method of joining The company will face many economic and political risks Should only be applied to large and largescale companies, because the cost of 22 joining is very expensive DIRECT EXPORT => In summary: Through the above penetration methods, the team draws out: the form of direct export is the best methods, because they can ensure all risks and profits are at a safe level 23 Conclusion The PESTEL alalysis above showed that Vinatea have a good opportunity in the Japanese market Vinatea have its advantages such as traditional approach to production, board land setting, embeddedness of tea as cultural medicine, competitive prices and a new look to tea products The future is bright for Vietnamese tea, especially tea exporter like Vinatea Its presence is becoming increasingly well known on an international level, and production levels are continuing to grow Vinatea Enterprise will undoubtedly encounter a variety of opportunities and challenges to development at Japanese market, but if properly managed, there is incredible potential for growth The road ahead promises plenty Tea market has a very wide potential to grow with wide variety of tea available in increasing demand of tea worldwide Tea Trade has emerged as a new dimensio of trade to the world with ever increasing rise in consumption of tea, it has opened a wide new markets to explore and cater to their demand 24 TÀI LIỆU THAM KHẢO GTN Food (2022), Vinatea, http://gtnfoods.com.vn/business/vinatea VietnamCredit (2021), Overview of Vietnam's tea industry, https://vietnamcredit.com.vn/news/overview-of-vietnams-tea-industry_14207 https://vinatea.com.vn/ Robert Wenner, Duong Van Thanh, Ph.D (2011), The Deep Roots of Vietnamese Tea: Culture, Production and Prospects for Development, https://digitalcollections.sit.edu/cgi/viewcontent.cgi? article=2154&context=isp_collection Trading Economics (2021), Vietnam Exports of Tea to Japan, https://tradingeconomics.com/vietnam/exports/japan/tea Thị trường Chè Nhật Bản tiềm xuất chè Việt Nam, http://thainguyenche.net/tin-tuc/73-thi-truong-che-nhat-ban.html 25 ...Team 06 NGUYỄN PHƯƠNG HẢI LINH - 22A4050239 PHẠM THỊ THÙY LIÊN - 22A4050031 NGUYỄN NHƯ HOA - 22A4050209 NGUYỄN THỊ THÚY - 22A4050 006 PHẠM THỊ HẠNH -22A4050380 TRỊNH PHƯƠNG GIANG - 22A4050462 VŨ THỊ... packages over 3kg (HS: 090220, market capacity and exploitability is 81.6%); Black tea - packs over 3kg (HS: 090240, market capacity and exploitability is 99.6%) However, in recent years, tea... Vietnam Exports of Tea to Japan, https://tradingeconomics.com/vietnam/exports/japan/tea Thị trường Chè Nhật Bản tiềm xuất chè Việt Nam, http://thainguyenche.net/tin-tuc/73-thi-truong-che-nhat-ban.html