(Tiểu luận) international bussinessreportvinamilk expanded businessmarket to japan

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSSINESS REPORT VINAMILK EXPANDED BUSINESS MARKET TO JAPAN LECTURER: TRAN THE NAM GROUP Ho Chi Minh City, November 2022 TABLE OF CONTENTS ACKNOWLEDGMENT TABLE OF CONTENTS CHAPTER 1: INTRODUCTION CHAPTER 2: ENVIRONMENT FACTORS 2.1 Political Environment 2.2 Economic Environment 2.3 Legal Environment 11 2.4 Cultural Environment 11 2.5 Social Environment .12 2.6 Technological Environment 14 2.7 Ethical Systems 16 CHAPTER 3: CONCLUSION 17 CHAPTER 1: INTRODUCTION Milk is an essential nutritional product for every family, because it not only contains many nutrients such as calcium, vitamins, but also is convenient to use and easy to find in supermarkets or groceries Therefore, some long-standing reputable dairy companies want to develop their businesses by investing in expanding markets in some potential oversea regions And Asia is always in the sights of large corporations because of the high demand and potential for business In this term, we chose Vinamilk as the successful corporation that will expand their business in Japan, an Asia country which has very high standards in nutritional products Vinamilk has always been in the top 50 largest dairy companies in the world in recent years This increases the popularity of the brand and gives the company a lot of advantages in bringing products to new markets The company built large production plants, along with that, built a clean raw material area, meeting technical standards, so the company mastered the quality of products to compete with other manufacturers on the market In addition, the variety of products with many products and types of products distributed by the company to the market is a great competitive advantage of the company over the rest of the competitors With more than 200 items, at the same time controlling product quality along with controlling the stages of raw materials, production and consumption, the company's price is very competitive in the market Thus, we can see that Vinamilk has built itself quite perfect competitive advantages in the market On the other hand, with a population of nearly 126 million people, Japan is a market with great consumption power In recent years, the number of Vietnamese living in Japan has also increased rapidly in the past decade, leading to an increase in demand for Vietnamese agricultural products and food For agricultural products, it is necessary to ensure food hygiene and safety standards, which are required to be produced and grown according to GAP, HACCP or JAS standards - Japanese Agricultural Standards In fact, if the quality of a product has been approved by the Japanese market, that product can compete well in other markets CHAPTER 2: ENVIRONMENT FACTORS 2.1 Political Environment Japanese politics is founded on the foundation of a constitutional monarchy and a representative republic (or parliamentary monarchy) Besides, Japan always upholds collectivism, so relationships and partnerships based on reciprocity and mutual concessions become extremely important for them According to the Institute for Economics and Peace (IEP), the GPI 2022 report shows a global peace index based on criteria such as: Level of social security and safety, domestic conflict, international According to that, Japan has a peace index in the top 10 countries in the world without domestic and foreign conflicts It can be seen that Japan is a perfectly suitable country for Vinamilk to expand its investment here Japan is a member of the United Nations and a non-permanent member of the Security Council; one of the "G4" members sought approval for a permanent member position Currently, Japan is also a member of many international organizations including the G8, the Asia-Pacific Economic Cooperation (APEC) and the East Asia Summit (EAS) and is a generous country in its activities International relief and development efforts accounted for about 0.19% of Gross National Income (GNI) in 2004 At the same time, Japan is also a comprehensive economic partner for ASEAN countries Japan supports ASEAN's increased economic integration In addition, the cooperation relationship between Vietnam and Japan in recent years has grown strongly and well in all fields such as strategic partnership in diplomacy - security - defense, trade partner, etc, In 2020 - 2021: Japan has actively supported Vietnam in the fight against Covid by providing equipment, technology, and vaccine support to Vietnam In addition, the tax reduction commitments in the Free Trade Agreements between Vietnam and Japan such as VJEPA, AJCEP, CPTPP, etc will make it easier for Vinamilk to penetrate this market 2.2 Economic Environment Economic growth in Japan: According to the Asian Development Bank (ADB), the Japanese economy in the second quarter grew by 2.2%, the third consecutive quarter of positive growth Spending on consumer services rebounded strongly after Covid-19 travel restrictions were lifted at the end of March Increased spending on consumer goods and services, travel and dining helped boost growth recovered in the second quarter Exports in the second quarter increased moderately Consumer price inflation from April to June reached over 2.0% over the same period last year The price increase was mainly due to higher import prices caused by the war in Ukraine and the devaluation of the yen against the US dollar due to the widening interest rate differential between Japan and the US However, inflation in Japan is still much lower than in other countries The IMF forecasts GDP growth of the Japanese economy at 1.7%, down 0.7% from the forecast made in April 2022 The OECD revised its forecast for Japan's 2022 economic growth forecast from 1.7% to 1.6% According to Trading Economics, GDP in the third quarter of 2022 of the Japanese economy is forecast to increase by 0.5% compared to the second quarter of 2022 and increase by 0.8% compared to the third quarter of 2021 Picture Extensive strategic partnership between Vietnam and Japan Picture Japan's growth assessment in 2021 and 2022 According to the IMF, GDP is based on purchasing power parity PPP (2022), Japan has the third highest index with a GDP of 4.3 thousand USD after the US and China Picture IMF DATAMAPPER Inflation situation: A survey by Mizuho Institute of Research and Technology shows that, after the outbreak of Covid, social classes were severely affected by the pandemic, along with the influence of high inflation, leading to the gap between rich and poor in Vietnam Japan is getting bigger Document continues below Discover more Kinh doanh from: quốc tế Đại học Tôn Đức… 231 documents Go to course Vinamilk- Business97 Strategy Kinh doanh… 100% (5) Chiến lược kinh doanh quốc tế điển… Kinh doanh… 100% (4) [123doc] - do-an30 thanh-toan-quoc-… Kinh doanh… 100% (3) Chứng từ xuất 104 hoa Kinh doanh… 100% (2) TCQT FULL - Tài quốc tế test… Kinh doanh… 100% (2) Báo cáo tập nghề 54 nghiệp Kinh doanh… 100% (2) Picture Impact of Pandemic on Annual Household Income Economic relations between Vietnam and Japan: On the other hand, the economic relationship between Vietnam and Japan is getting better and better, being a comprehensive strategic partner for peace and prosperity in Asia Japan continues to be Vietnam's top important economic partner, the fourth largest trading partner after China, the US and South Korea and the first G7 country to recognize Vietnam's market economy status South (October 2011) Trade between the two countries has always kept steady growth year by year In 2021, despite the Covid pandemic, the two-way trade turnover still raised 7.8% compared to 2020 In months of 2022, the total trade turnover between the two countries reached 27.3 billion USD, of which Vietnam exported to Japan 13.4 billion USD, imported 13.9 billion USD Picture Bilateral trade over the years 2.3 Legal Environment Currently, Japan is developing a "three arrows" economic policy including an active monetary policy, flexible finance, and a growth strategy for the private sector In particular, effectively cutting corporate tax to about 20-30% has helped create a better business environment for foreign companies Foreign companies entering Japan are committed to creating business opportunities, making it easier to access customers when expanding their markets, promoting the dissemination of new technologies, and supporting investment in resources and related knowledge Japan is also simplifying regulations and administrative procedures to help reduce legal procedures and attract more foreign investment in this market 2.4 Cultural Environment The fermented yogurt product is highly appreciated by the Japanese and recommended by experts because it contains many beneficial bacteria, helps to balance the intestinal microflora, promotes the digestive system to work better, and prevents many dangerous diseases, including cancer In this country, everyone, especially children, is encouraged to consume yogurt daily, which helps prevent intestinal diseases and strengthens resistance In 2007, Vinamilk also researched and launched its own product line of fermented yogurt, which is Vinamilk Probi with the use of strengthening resistance and preventing colds effectively This product is introduced to contain billions of the world's leading probiotics and has been clinically proven to significantly reduce the incidence and number of cold days (according to a study by the National Institute of Nutrition in 2016) Therefore, this product is very suitable for the Japanese market - where people are very concerned and focused on health protection Picture Types of yogurt drink live yeast In addition, Japanese people also have the habit of using soy products such as soy milk in their daily diet To provide energy for a working day, every morning Japanese people often drink a cup of nutritious soy milk Soy products are very beneficial to health, especially the ability to reduce cholesterol in the blood In particular, soy milk often contains a high amount of calcium, which is good for fast and healthy bone and joint development, so it is recommended, especially for children Currently, Vinamilk has its own product line of soy milk with many different flavors and ingredients Creating diversity in the shopping process will be one of the advantages to attract customers for Vinamilk when developing in the Japanese market 2.5 Social Environment Social environment is one of the essential factor in the composition of the marketing environment This element shows that customers show interest and love for the product/brand They can be a group of reference customers - people who directly buy goods at your business By participating in many large international fairs, Vinamilk had the opportunity to present its products to more and more customers Especially in Foodex Japan, Vinamilk participated in the Japanese fair with the aim of expanding customer segments in potential export markets - mainly in Japan and from there to Asia more widely Currently, Vinamilk exports condensed milk, nut milk and the last one is the condensed coconut milk, which has been very positively received in the market Picture The products of Vinamilk at Foodex Japan Vinamilk has successfully explored a number of condensed coconut milks to export to the Japanese market to meet strict standards and meet the growing demand for plant milk, vegetarian or heterosexual milk, cow's milk protein The product of this company is valued among partners and experts for its efficiency and nutritional standards "Vinamilk is impressed not only by the precise and flexible service quality, but also by the delicious products that meet Japanese standards The new product, condensed coconut milk, has excellent and promising potential in the market," said Japanese partner Jun Hamada Picture A number of coconut milks to export to the Japanese market As in Korean, Chinese or non-English markets, Vinamilk also designs products exported to the Japanese market with its own packaging, using local languages and images, colors according to consumer preferences Although this billion-dollar Vietnamese milk brand has adapted to the local culture, its product packaging still has a prominent "VINAMILK" logo 2.6 Technological Environment The impact of technological factors on corporate management Companies that have technical and technological conditions and apply them at an early stage of production and business operations will have great advantages in terms of quality and speed of production to exist and develop from there Picture Vietnam powdered milk factory applies 4.0 technology in production, ensuring product quality when reaching consumers Japan is famous for its electronics industry all over the world, and Japanese electronic products make up a large portion of the world market, compared to most other countries Japan is one of the leading countries in the fields of scientific research, technology, machinery and equipment, and medical research with the world's third largest budget for research and development, reaching 130 billion USD, with more than 677,731 researchers It is estimated that 16% of the world's gold and 22% of silver are contained in electronic technology products in Japan In Japan, Vinamilk can find technological solutions to optimize the quality of its products and production lines Besides, Japan is also a country that can expand dairy farms because of their modernization and automation technology The potential to expand the market by expanding the farm model in Japan is huge because of the support from the country's developed industry 2.7 Ethical Systems For Japanese morality, prestige is always a top priority for Japanese people because Japanese people always take it seriously and they have been taught about it since childhood Japan has been known as a difficult market and credibility is almost the top priority when cooperating with businesses Mr Hadam, a partner of Vinamilk, assessed that: "Vinamilk is an excellent company in the field of export Their responsibility as well as commitment to products, services and brands is the highlight most makes us long-term cooperation with the company” The management of Vinamilk has frequently cited the company's prestige and commitment to all of its efforts both internationally and as a guiding business concept This demonstrates how firms are aware that when they enter the global marketplace, each of their products will help to establish their nation's reputation there Mr Vo Trung Hieu, International Sales Director of Vinamilk shared: "Vinamilk always places its greatest duty on brand reputation, which helps the Company establish a billion-dollar brand like today" Instead of following the "seller-buyer" conventional method of exporting, Vinamilk's method is to shake hands with partners as companions in foreign markets, having a shared goal to expand the company and brand Vinamilk just received a rating as a prestigious exporter from Vietnam in 2019 This company has previously received recognition at the Asian Exporter Awards Ceremony in Singapore It may be claimed that Vinamilk has been building up for itself an immensely significant asset for the company, the government, and the government in addition to the "awful" stats with this sustainable and long-term international commercial approach reputation on the global mark CHAPTER 3: CONCLUSION Vinamilk produces a variety of products with different segments, meeting the needs and concerns of Japanese consumers Vinamilk's products are suitable for Japanese consumers' habits of always wanting to protect the health of themselves and their family members Japan has good relations with Southeast Asian countries including Vietnam, Since then, Japan has reduced corporate tax, as well as simplified some procedures, regulations and administrative procedures to facilitate foreign enterprises to invest in the Japanese market more In recent years, the Japanese economy has made remarkable progress in Southeast Asia, as evidenced by The IMF forecasts GDP growth of the Japanese economy at 1.7%, down 0.7% from the forecast made in April 2022 Moreover, the economies between Vietnam and Japan are closely linked in a positive direction, and trade between the two countries has grown rapidly over the years This shows that Japan is a very potential economy to export dairy products in Vietnam in general and Vinamilk in particular With the Japanese culture of promoting health, they believe in using high quality dairy products and Vinamilk Proby products can meet that It shows that Vinamilk's dairy products are consumed in large quantities in the Japanese market In addition, Vinamilk also diversified dairy products in the Japanese market, which shows that Vinamilk has a long-term strategy to focus on developing exports in the Japanese market Regarding the legal system, the Japanese market always creates opportunities for foreign businesses, including Vietnam, and Vinamilk has taken advantage of that to export milk through the Japanese market Japan has reduced corporate tax, as well as simplified some procedures, regulations and administrative procedures to facilitate foreign enterprises to invest in the Japanese market more Another advantage of Vinamilk is technology, with modern technology and production lines that can meet the quantity and quality of products in line with the strict requirements of the Japanese consumer goods market From the above characteristics, it can be seen that Vinamilk's milk export to the Japanese market is a right strategy, not only a success for Vinamilk but also an affirmation of the quality of Vietnamese products in the market abroad in general and Japan in particular Some other advantages come from the social environment, ethical system Vinamilk should export its dairy products to the Japanese market