Toyotas adaptation to the vietnamese political and legal system

INTERNATIONAL BUSINESS TOYOTA'S ADAPTATION TO VIETNAMESE POLITICAL AND LEGAL SYSTEM G R O U P MEMBERS Nguyen My Tam Le Thanh Ha Nguyen Tran Van Anh Nguyen Khanh Linh Le Thuy Duyen Tran Hoang Mai Vu Nguyen Thu Trang Huynh Thi Thu Trang Pham Thao Vi MAIN CONTENTS Chapter 1: Overview of Toyota Chapter 2: Political & Legal system: Vietnam vs Japan Chapter 3: Toyota's adaptation to Vietnam CHAPTER Overview of Toyota 1.1 TOYOTA'S PROFILE President and Representative: Akio Toyoda Date founded: August 28, 1937 Toyota Motor Corporation (TMC) Capital: 635 billion Yen Employees: 70,170 Main business activities: Motor vehicle production and sales History of formation and development - A Japanese multinational automaker - Based in Toyota City, Aichi, Japan - One of the world's major automakers, producing over 10 million automobiles per year - Producing vehicles under brands + Daihatsu + Hino + Lexus + Ranz + Toyota - Major markets: the United States, the Czech Republic, China, India, and Vietnam MISSION To make ever-better cars, to build a future where everyone has the freedom to move VISION Toyota will lead the future mobility society, enriching lives around the world with the safest and most responsible ways of moving people Through our commitment to quality, ceaseless innovation, and respect for the planet, we strive to exceed expectations and be rewarded with a smile We will meet challenging goals by engaging the talent and passion of people who believe there is always a better way Product lines Hatchback segment - Yaris - Wigo Yaris Sedan segment - Camry - Vios - Corolla Altis Camry Product lines SUV segment - Land Cruiser - Land Cruiser Prado - Rush - Corolla Cross - Fortuner Multi-purpose segment - Alphard Luxury - Innova - Avanza Land Cruiser Prado Alphard Luxury 1.2 TOYOTA IN VIETNAM - 1995: one of the 1st car manufacturers investing in Vietnamese market - 1996: 1st product - The Hiace Model "Tomorrow must be better than today" “Through the support of the government and the administration’s policies to protect the local automotive industry, we have full confidence in Vietnam and the people here, whom we have come to appreciate so much.” said Toru Kinoshita CHAPTER Toyota's adaptation to Vietnam 3.1 Political System 3.2 Legal System 3.3 Achievements 3.1 TOYOTA'S ADAPTATION TO THE VIETNAMESE POLITICAL SYSTEM IMPACTS OF THE VIETNAMESE POLITICAL SYSTEM ON TOYOTA (1) Open business environment, transparent investment policy, and favorable profit-based incentives for businesses Quite stable natural and political environment The Government's commission about Toyota business IMPACTS OF THE VIETNAMESE POLITICAL SYSTEM ON TOYOTA (2) HOWEVER Continuously changing tax policy -> unable to calculate the revenue - cost problem in a long-term strategy Toyota’s adaptation to the Vietnamese political system Prevention sending a document to the Government requesting to import CBU cars Toyota's management proceeded these solutions Discussing the investment environment closely linking with domestic producers in terms of responsibilities and powers of the two parties Efforts for a better society Short-term profit maximization Increasing price Promotion signed a Memorandum of Understanding on Business Support Cooperation Project maintaining annual social contribution activities POSITIVE 3.2 TOYOTA'S ADAPTATION TO THE VIETNAMESE LEGAL SYSTEM Impacts of the Vietnamese legal system on Toyota Vietnam's legal corridor has had a great influence on foreign businesses investing in Vietnam NEGATIVE Unstable law due to shorttime changes Regulations on localization rate The increase in import tax on automobile components TOYOTA'S ADAPTATION TO THE VIETNAMESE LEGAL SYSTEM Regulations on localization ratio Organizing workshops on technology Toyota Vietnam is determined to implement a reasonable localization rate Introducing the Vietnamese potential market Introducing investment encouragement policy from abroad into the country Participating in the 2nd International Exhibition on Supporting Industry and Manufacturing Vietnam 724 components more than such as bodywork, chassis, seats, batteries, etc 324 new localized components 2020 - 2021 12/46 new suppliers recruited including Vietnamese suppliers 3.3 TOYOTA'S ACHIEVEMENTS AFTER ADAPTING TO VIETNAM Toyota set many RECORDS in over 50,000 vehicles in sales 22% approx 45 million USD ( exported value 12%) in 2015 45,000 vehicles in production outputs 30% TMV also contributes about 750 million USD to the State Budget In 2016 over 40 million USD in an annual export turnover Expanded business scope Contributed nearly $5 billion to the State Budget Provided stable jobs for approx 33,000 employees, dealers and 18 suppliers Despite being affected by Covid-19 in 2021, 70.8 million USD( 38%) in revenue billion USD contribution to the State Budget In the first half of 2022 43,986 vehicles 768,546 customers 47% in sales 14% in service sector 615 million USD 54% contribution to State Budget CONCLUSION Thank you for your attention! Q&A TIME ... to appreciate so much.” said Toru Kinoshita CHAPTER Toyota's adaptation to Vietnam 3.1 Political System 3.2 Legal System 3.3 Achievements 3.1 TOYOTA'S ADAPTATION TO THE VIETNAMESE POLITICAL SYSTEM. .. Toyota’s adaptation to the Vietnamese political system Prevention sending a document to the Government requesting to import CBU cars Toyota's management proceeded these solutions Discussing the. .. social contribution activities POSITIVE 3.2 TOYOTA'S ADAPTATION TO THE VIETNAMESE LEGAL SYSTEM Impacts of the Vietnamese legal system on Toyota Vietnam's legal corridor has had a great influence