Phân tích kinh tế, chính trị, văn hóa, xã hội, luật pháp,môi trường của công ty Trung Nguyên Tại Trung Quốc viết bằng Tiếng Anh. Trung Nguyên is a Vietnamese business group involved in the production, processing and distribution of coffee. The firm was founded in 1996 in Buon Ma Thuot, Dak Lak Province by Dang Le Nguyen Vu. It’s the largest domestic coffee brand within Vietnam. Trung Nguyen coffee is divided into 3 categories with 3 customer segments: highend, midrange, and regular. The most prominent of which is the G7 product line.
PESTLE model : Trung Nguyên -China Introduction About Trung Nguyên Trung Nguyên is a Vietnamese business group involved in the production, processing and distribution of coffee The firm was founded in 1996 in Buon Ma Thuot, Dak Lak Province by Dang Le Nguyen Vu It’s the largest domestic coffee brand within Vietnam Trung Nguyen coffee is divided into categories with customer segments: high-end, mid-range, and regular The most prominent of which is the G7 product line About China- " Billion Dollar Market" China is one of the world's leading economies with a population of more than 1.34 billion people and a strong economic growth rate that is always a potential market for any business.Coffee consumption culture in China is quite strong According to data from the China Coffee Association Beijing (CCAB), coffee consumption in the country is growing at an annual rate of 15% However, when penetrating into a large and colorful market like China, what obstacles will Trung Nguyen face? We will discuss it in this essay Political environment China is considered a relatively safe business investment environment because the political system follows the republican and democratic regime, has a single Party to lead, so it is quite stable, there are few conflicts and internal conflicts between the two countries government and people In addition, the national security situation is well maintained and guaranteed This helps businesses minimize the risks they may encounter Government view on international business With a focus on investment and export, the Chinese government always considers industrial production a top priority in economic development To stimulate investment, domestic commodity prices (including energy prices and environmental costs) are maintained at low levels Moreover, the Chinese Government has maintained low interest rates to attract investors; pegging the CNY to the USD at a low rate in order to keep the CNY at a lower price than it actually is This policy helps to make Chinese-made goods cheaper, increasing competitive advantage in the global market Besides, China's production and export costs are also actively supported by demographic factors The working-age population is growing at a faster rate than the population growth rate, and the low dependency ratio (the proportion of children and elderly people per population size) has helped China to have a powerful force abundant labor, especially low-cost unskilled labor in rural areas This model has brought China a period of high growth, becoming the second largest economy in the world International commerce Eliminate discrimination for imported goods into the domestic market, remove non-tariff barriers, open promotions for service industries such as banking, securities, telecommunications and allow Foreign companies to have increased ownership and facilitate distribution of goods in China China follows a policy model of continuing to promote export activities combined with trade liberalization in accordance with WTO accession rules and conditions Specifically, China enacted anti-dumping and anti-dumping laws for goods domestic and foreign goods can compete freely in the domestic market In addition, China also applies import management measures based on national and international standards, especially standards on food hygiene and safety and environmental standards This makes investors very secure and eager to invest in this market Political relations between Vietnam and China Economic cooperation, trade and investment achieved strong growth Twoway trade turnover between Vietnam and China maintained a good growth momentum in the context of the epidemic negatively affecting trade of most countries in the world Vietnam is continuously the largest trading partner in ASEAN (since 2016), China's 6th largest trading partner in the world (since 2020) => Political relations between the two countries are towards peace and friendship, making the commercial cooperation relationship between the two countries develop stably and sustainably This is good news for Vietnamese businesses in general and Trung Nguyen in particular, the company has been expanding its product export market to China This is a place to help promote official trade, creating conditions for many high-quality Vietnamese products and goods to be consumed in the Chinese market 3 Economic environment Economic growth and income growth The country's economic growth rate suddenly dropped to 2.3% in 2020, from 6% in 2019, due to the impact of the COVID-19 pandemic In 2021, growth returns to strong at 8.1% New sectors such as e-commerce and online financial services are gaining momentum in an economy dominated by export-oriented industries However, the growth rate will only return to 3.2% in 2022 (IMF Economic and Political Outlook, October 2022) GDP trends are expected to recover at 4.4% in 2023 Nguồn: The world bank China's GNI per capita (PPP) 2020 is 19,160.China is currently categorized as being poor they are growing more rapidly than many developed nations and are expected to become among the largest economies in the world Income gap China belongs to the group with the highest gap between rich and poor in the world 2% of the population accounts for 80% of society's wealth.The “China Merchants Bank Annual Report” shows that China's wealthy account for 0.07% holding 31.54% of assets The middle class accounts for 2.05% and holds 50.58% of assets Ordinary people account for 97.88% and only hold 17.87 % of total wealth in China).The main cause of the huge gap between the rich and the poor in China is the problem of official corruption.Besides, the boom in technology is also a prominent factor Economic relationship Interest rate In the current period, looking at the context of global economic risks decreasing, many central banks around the world have cut operating interest rates Without exception, the Central Bank of China (PBOC) has cut the reserve requirement ratio by 50 percentage points for all banks and 100 percentage points for eligible municipal banks The PBOC even cut the required reserve ratio at big banks to 13%, which is expected to add 900 billion yuan ($126 billion) in cash flow into the weak economy macro indicators are less positive Inflationary Weak domestic demand due to the impact of the Covid-19 epidemic also caused core inflation in China to fall to the lowest level in a decade Specifically, the core consumer price index (CPI) only increased at an annual rate of 1% in February, the slowest pace since June 2010 Weak demand also makes businesses not dare to increase the selling price of goods As a result, the producer price index even turned down 0.4% in February compared to the same period last year after increasing 0.1% in January Legal environment Accept each other's laws China's legal system is largely a civil law system China’s legal system covers laws that fall under seven categories and three different levels The seven categories are the Constitution and Constitution-related, civil and commercial, administrative, economic, social, and criminal laws and the law on lawsuit and non-lawsuit procedures The three different levels are state laws, administrative regulations and local statutes In each country, the Civil Code is the basic law, covering the basic principles of civil and commercial contracts According to regulations, Vietnam and China both recognize the principle of freedom of association, but also mention the interference and limitation of freedom of association, assuming the principle of freedom of this subject is not infringed interfere with the freedoms or interests of other subjects in society Vietnamese law and Chinese law have similar provisions on contract change and scoring as well as contract cancellation Signing of general agreement between Vietnam and China For example, Agreement on Mutual Legal Assistance in Civil and Criminal Matters, Agreement on Transit of Goods, Agreement on Trade The government's attitude towards foreign enterprises It can be said that China is currently "rolling out the red carpet" to welcome foreign investors Actively implement many measures to create more favorable conditions for foreign investors in some pilot free trade zones (FTZs) and nationwide 100% foreign ownership will be allowed in quite a few sectors China will also promote opening up in the service sector and encourage foreign investment in manufacturing and high-tech industries, and in the central and western regions of the country Besides, the government also helps foreign companies solve difficulties when investing in China According to China's Ministry of Commerce, foreign direct investment (FDI) in mainland China in January increased 14.5% year-on-year to 127.69 billion yuan, equivalent to 14.5 billion yuan $18.39 billion Korea, Germany and the UK are the countries with the largest investment capital in China in 2022 => This is a good opportunity for Trung Nguyen to penetrate the Chinese market Cultural environment Culture According to a ranking from Chnbrand (China), Trung Nguyen Legend's G7 coffee brand has become a popular instant coffee brand in the billion-people market, holding the second largest market share in the e-commerce market Product concept As two neighboring countries with one river, Vietnam and China have quite similar cultures in many aspects such as aesthetics, values, customs, attitudes, religion This helps Trung Nguyen easily faster in market research and development Power distance China has one of the highest PDIs in the world (80) indicating that inequality is tolerable and decisions by superiors are more likely to be accepted without discussion essay Therefore, there will be respect for superiors in the company, for the elderly and especially harmony and politeness in the working environment Therefore, assuming Trung Nguyen sends a Vietnamese manager to run the branch in China, this person will not have too many difficulties in human resource management and will also be respected by his subordinates Reference: hofstede-insights.com Individualism China is a highly collectivist culture (20), where people value cooperation and are more comfortable working in groups than working independently Therefore, Trung Nguyen can allow its employees here to work in groups in research, marketing, sales, etc., which will bring better work efficiency Traditional values China is a market with a long tradition of tea drinking However, in recent years, Chinese people are tending to see drinking coffee as expressing a new style, replacing the traditional practice of drinking tea, which is especially popular among young people Therefore, the fact that they have not yet formed the habit of drinking a certain type of coffee will be an opportunity for Trung Nguyen to take advantage of introducing and positioning its products Social environment Population China is the most populous country in the world with 1,450,980,405 people (danso.org) as of March 8, 2023, or 18.12% of the total world population Reference: Danso.org Age structure 0-14 years old: 17.29% (male 129,296,339 / female 111,782,427) 15-24 years old: 11.48% (male 86,129,841 / female 73,876,148) 25-54 years old: 46.81% (male 333,789,731 / female 318,711,557) 55-64 years old: 12.08% (male 84.827,645 / female 83,557,507) 65 years and older: 12.34% (81,586,490 male / 90,458,292 female) Based on the age structure of China, we can see that the age group from 25 to 54 accounts for a large proportion (46.81%) These people are of working age, have a high need to meet their friends and partners On the other hand, young people tend to step away from the traditional tea-drinking culture, so coffee is a popular choice Therefore, Trung Nguyen can choose this age group as the target customer ● Birth rate: 15.7 children/1000 people (2022) ● Mortality rate: 11 people/1,000 people (2022) ● Natural change = birth rate – death rate = 15.7 – 11 = 4.7 (2022) ● Net migration rate: - 0.38 people/1000 people (2022) ● Average life expectancy: 77.3 years (2022) In recent years, China's population structure has shown a marked aging trend as the number of children born is decreasing, the number of people of working age decreases, and the proportion of elderly people is higher than the average of the world Social trends Coffee is gradually becoming a familiar beverage to Chinese consumers However, compared to other major coffee consuming countries, the Chinese market is at an early stage of development, consumers still mainly use instant coffee Therefore, this will be an extremely potential market in the future Technological environment China has become a big player in many high-tech fields such as artificial intelligence, IoT, nanotechnology, biotechnology, quantum computing and big data From 2002 to present, on average every year This country has obtained more than 20,000 achievements in the fields of energy, agriculture, and environmental protection making its scientific and technological capacity constantly improve With 35 million people working in S&T fields, China currently ranks first in the world in terms of S&T human resources Due to being denied access to advanced US technologies, China is accelerating the development of "Made in China 2025" technologies.In 2021, China jumps two places to 12th in this ranking with total R&D investment reaching a new milestone of 2.44% of GDP After the outbreak of the COVID-19 pandemic, the speed of digitization continues to accelerate, and the shift from offline to online, especially personal shopping, is becoming a habit of Chinese consumers E-commerce systems such as Alibaba, Taobao, Tmall, JD, YiHaodian…and e-payment are very developed and dynamic in China 8 Ethics Perspectives on child labor China Labor Newsletter (China Labor Newspaper) in Hong Kong, an organization that conducted an on-site survey in China, said that child labor is rife in the country This is becoming a more and more serious problem There are no official figures on the number of children working in the country.According to the United Nations, poverty is the main reason why children enter the labor market at an early age In China, many places have an alarming level of poverty, even many parents "sell" their children to cover their ignorance or improve their financial situation Environmental perspective Along with the economic leap in the years 1990-2010 with an average GDP growth of 10.5%/year, China suffered from extremely serious environmental pollution Emissionrestriction policies and water-reduction policies were banned in 2014 and 2017 Supply tightening expansion These policies greatly affect other countries because China is the industry of the World Applying environmental protection policies causes production costs in China to increase, leading to an increase in the cost of finished products, thereby reducing the competitiveness of imported goods, but goods are affected in industries such as metal, garment, plastic Along with the government's tight environmental policies, Chinese consumers are also very conscious of environmental protection when they are ready to strongly boycott manufacturing enterprises that have a heavy impact on the environment water, air, and land Therefore, any enterprise entering the Chinese market must have a high sense of environmental protection in order to be allowed to enter the market and be accepted by consumers here Report the situation of corruption and bribery Money-power transactions and the use of power to take advantage of the problem of the "princeling party" elites using family power and power-hating relationships to control the country's economic lifeline and distribute wealth Public property is a fairly common problem Evidence shows that, from the 18th National Party Congress in November 2012 to the end of April 2022, nationwide disciplinary inspection and supervision agencies have investigated 4.39 million corruption and disciplinary cases million objects 9 Conclusion Opportunity The Chinese market has a diverse supply from nearly 80 countries, mainly from Guatemala, Ethiopia, Vietnam, Malaysia, Brazil According to statistics from the Vietnam Coffee-Cocoa Association, China is always the market Vietnam's large potential coffee consuming market, especially from 2018 to now From 12th place in 2018, to 2021 China is Vietnam's 8th largest coffee import market Along with cultural similarities as well as a very large population, China is an extremely potential market for Trung Nguyen In addition, policies to attract foreign investment and policies to protect foreign enterprises are strengths that help Trung Nguyen easily operate in a large market like China Challenge Nowadays, Chinese people tend to see drinking coffee as a new way to express their style, especially young people in big cities However, coffee companies around the world consider China to be a "fatty" market, so the competition is increasing Therefore, buyers will have more choices Besides, tea culture is still an indispensable part of Chinese people Therefore, in addition to having to compete with businesses from abroad, they have to compete with famous domestic enterprises such as The Alley, Taiwan coco => Today, the increasing number of coffee brands exporting to China causes huge competitive pressure in the industry for the Trung Nguyen brand of Vietnam 10 References https://www.vietnamplus.vn/the-gioi-trung-nguyen-legend-tai-trung-quoc-nang-tamcaphe-viet/819477.vnp https://vietnambiz.vn/nuoc-co-nao-cho-trung-nguyen-legend-tai-thi-truong-ca-phetrung-quoc-202292210375548.htm https://tapchigiaothong.vn/su-bung-no-cong-nghe-gay-ra-khoang-cach-giau-ngheolon-o-trung-quoc-18365680.htm http://quanlydoanhnghiep.edu.vn/chinh-sach-thuong-mai-quoc-te-cua-trung-qc/ https://chuyentienviettrung.vn/tin-tuc/bieu-thue-xuat-khau-va-thue-nhap-khau-otrung-quoc/ https://www.voatiengviet.com/a/a-19-2007-09-10-voa4-81484842/483422.html https://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD?locations=CN