group assignment grab contributes to promoting the development of a digital economy in vietnam

General information about Grab Vietnam Co., Ltd - Company name : Grab Company Limited - Abbreviated company name: GRAB - Method of the image: Limited liability company with 2 or more mem

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FPT University - Ho Chi Minh Campus

GROUP ASSIGNMENTMICROECONOMICS - ECO121

Lecturer: Nguyễn Thanh Tùng

Table of Contents

1.Itroduce 3

1.1 General information about Grab Vietnam Co., Ltd 3

1.2 Business areas 3

1.3 The Development of GRAB in Vietnam 3

2.Analysis of market opportunities 3

2.1 Macro environmental evaluation: 3

2.2 Economic factors: 3

2.3 The cultural and social factors: 4

3.Market share of Vietnamese technology car 4

4.The current unemployment situation in Vietnam 5

5.Survey on the level of universalization of car apps in Vietnam 7

6.Grab contributes to promoting the development of a digital economy in Vietnam 8

7.Grab and marketing strategy to "confess" in Vietnam 8

8.Advices for the government in VietNam 9

9.SWOT Analysis of Grab 10

10.Conclusion: 10

Reference: 11

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1.1 General information about Grab Vietnam Co., Ltd

- Company name : Grab Company Limited - Abbreviated company name: GRAB

- Method of the image: Limited liability company with 2 or more members - Date of establishment: 14/02/2014

1.2 Business areas

- Set up a computer

- Support other operational services related to transportation: freight forwarding, collection and delivery of shipping documents, support services, payment for goods - Delivery

- Information technology operations and other services related to computer

- Technical testing and analysis

- Client road transports within the inner city and suburbs

-Grab as well as a certain advantage compared to taxi businesses on business conditions

1.3 The Development of GRAB in Vietnam

One of the factors behind the rapid growth of the Grab application lies in the product development process Grab products and services are diverse: from GrabTaxi, GrabCar, GrabBike, GrabExpress, and most recently GrabShare Grab always develops its products to achieve the best quality, closely following the needs and desires of customers and that is why Grab launched GrabExpress

2.Analysis of market opportunities 2.1 Macro environmental evaluation:

The population of Vietnam on September 18, 2018 was 96,986,309 people according to the latest data from the United Nations, accounting for 1.27% of the world's population, the population density was 312 people/km2 and 34.07% of the population living in Urban opportunities: Large population size, urban population is more and tends to increase, market size of people using services is increasingly expanding

2.2 Economic factors:

According to the announced data of the CI, Vietnam's economic growth in the second quarter of 2018 reached 6.79% of the positive growth service sector at 6.9% in the first two quarters of the year, the increase was high

According to data from the Vietnam National Administration of Tourism, the number of international visitors to Vietnam in the first 6 months of the year reached 7.9 million visitors

Opportunities: Collection of people as well as the amount of money spent on products

and services is increasing

Challenges: Labor costs are increasing 2.3 The cultural and social factors:

Vietnamese people rarely use public transport, still prefer to use personal traffic, especially motorcycles In 2016, statistics recorded more than 45 million motorcycles and motorbikes in Vietnam Currently, 85% of the Vietnamese population is using motorbikes as a means of transportation as well as to make a living every day According to the survey determined the proportion of vehicles in a car, up to 85.8% of the car is motorbike, 12.3% are cars preferring motorbikes to create favorable conditions for Grab to deploy types of GrabBike or recently GrabCar

3.Market share of Vietnamese technology car

Grab is still the most popular application when accounting for 74.6% market share, while Be and Gojek are chasing fiercely

Research has just released a report on the Vietnamese technology car call market in the first 6 months of 2020 Accordingly, Grab is still the leading technology car company with the completion of 62.5 million car hoes in the first half This year, accounting for 74.6% of the market share, giving light compared to 73% in the first half of 2019

Grab accounts for 74.6% of the market share of technology cars in Vietnam Source: Abi Research Graphic: Le Quy

Meanwhile, Be was gradually caught by Gojek (Goviet in the first half of this year)

Specifically, the Vietnamese -original application accounts for 12.4% of the domestic car market while the opponent from Indonesia ranked right after 12.3%

Another Vietnamese -original application, Fastgo, accounted for 0.7% of the market, down slightly compared to 1% last year

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The COVID-19 epidemic had a strong impact on the Vietnamese ride-hailing market in the first 6 months of the year Source: ABI Research Graphics: Le Quy.

4.The current unemployment situation in Vietnam

Vietnam has 24 million young people, accounting for about 44% of the labor force However, the unemployment rate in this group is 3 times higher than in the whole country 60% of bachelor

are doing the job

The unemployment rate of the country and comparison in rural - urban areas in 2017

Labor allocation of our country today (Photo: Zing.vn)

However, these are only the forecasts that are present, the unemployment rate in the urban youth group, especially those with university training, is still increasing at the eye.(<Grab=) announced it will invest US$500 million into Vietnam over a period of five years to tap opportunities in fintech, new mobility solutions, and logistics, in order to spur the development of the country’s digital economy and create millions of income opportunities that will elevate the quality of life for all Vietnamese.

Grab has helped hundreds of thousands of driver-partners better their livelihoods, with accumulated earnings of nearly US$1 billion, and encouraged millions in the country to adopt cashless payments via a strategic partnership with Moca.GrabFood merchants have also seen their incremental business revenue grow by 300% within 2-3 months of joining the platform.

Lifting communities from poverty: Grab aims to expand the benefits of the digital economy to 63 cities/provinces nationwide and empower millions of Vietnamese to have the means to earn their own living as micro-entrepreneurs, which include driver-

7 partners, delivery partners, and merchant-partners This seeks to elevate the quality of life for the currently unemployed, poor, and near-poor households, especially in the rural provinces, and increase their access to higher-than-minimum wage incomes and greater business revenues These activities are expected to also contribute to the national target of keeping the urban unemployment rate low below 4%.–

5.Survey on the level of universalization of car apps in Vietnam

The survey was conducted to assess the level of Vietnamese users' awareness of hailing applications and compare some aspects of Grab and new applications

ride-Image of key players in Vietnam Market and Highlight:

-Grab is dominating the car market in Vietnam And, Go-Viet is currently ranked 2nd after Grab

-Although only starting to operate at the end of June, more than 60% of users recognize the Grab brand and 8% of them become regular users of this application

-Internet and word of mouth are still the main communication channels to promote the brand

-Grab needs to decrease fees at rush hour, while Go-Vietnam needs to increase the service area more

6.Grab contributes to promoting the development of a digital economy in Vietnam

Data from Grab shows that, since entering the Vietnamese market, Grab has grown stable over the years, with the number of trips increased by about 29% in 2019 Not only connecting transportation, automatically the priority choice for passengers whenever they want to move as "call Grab", the application of Grab technology over 4 years of development in the Vietnam market also promotes development The field of food awareness, promotes the economy to limit cash consumption In the field of food and food delivery, GrabFood, the number of orders receiving nearly 1,800% in 2019 GrabExpress is one of the fastest-growing freight platforms in Vietnam, with an outstanding growth rate of 97% Grab express is currently a reliable partner of commercial enterprises and e-commerce platforms in Vietnam and Southeast Asia such as Sendo, Shopee Impressive growth of 77% Use from 2 services of Grab or higher each month each year

7.Grab and marketing strategy to "confess" in Vietnam

Grab's car platform has become the No 1 choice of Vietnamese people and continuously achieved stable growth over the years, with the number of 29% increase in 2019 In addition, according to a newspaper Fox of independent market research unit, Abi Research, in the first 6 months of this year, Grab led the market with 73% market share, followed by 16% market share and Go-Viet with 10%.

Statistical table of car applications in Vietnam today:

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Obviously, in the most core battle, the car is "the eldest" Grab still maintains a stable performance, if not "invincible" for many years, despite the race has always "heaven Variable universalization = Grab's the overwhelming world can be explained by "long-term" in the market, which helps this platform develop a large driver partner force with a dense coverage, ensuring that only customers need customers Set is a car right away

8.Advices for the government in VietNam

The problem now is that the management agency needs to create an environment that ensures the freedom of business and fair competition Allowing Uber and Grab to operate is to allow changes and reforms in the business of enterprises But requiring a sudden change with traditional taxis when there are no open mechanisms equal to Uber, Grab should be considered Therefore, the government needs to have soon new management measures to promptly respond to local state management of the technology-based taxi business, and create an equal competitive environment between traditional taxis and Grab

Because of such unequal conditions, in the past, businesses and taxi associations across the country have had a lot of petitions sent to the ministries and branches to propose considering the right type of business such as: Grab to make management policies true to reality It is necessary to determine the right type and management measures for taxis, avoid swapping concepts, deliberately falsely classifying the wrong type, causing inequality for the benefit of the group

Regarding the case of Vinasun suing Grab, from a legal perspective, the authorities have taken care of it However, the feedback is that if Grab really loses the lawsuit and has

to compensate Vinasun and so can create a bad precedent and an unfavorable environment for technology taxis

9.SWOT Analysis of Grab

To better understand the SWOT analysis of Grab, refer to the infographic below:

10.Conclusion:

As a brand that has just entered the Vietnamese market, but with only 4 years Grab has dominated the market share of Southeast Asia, knocking Uber even though Grab is the one who comes later Thanks to the market penetration strategy associated with the right brand strategy, meeting the needs of market characteristics and competition, the positioning is suitable for Insight customers, thereby offering product strategies, distribution Especially, the appropriate price and promotion of Grab have been completely successful with the Vietnam market penetration strategy

In fact, if you look at the development of ride-hailing giants, from claiming to be just an intermediary between drivers and customers, these applications have now expanded to other services to make the most of their resources Huge data from users bring along with that Grap shows us how successful they are in gaining a competitive edge in the motorbike taxi market in Vietnam and they have to compete not only with Other

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technology taxi companies but also with traditional Taxis in Vietnam, then we can see that this application is aimed at focusing on instant customers and transparent prices Therefore, the business model of applying technology in the Vietnamese market is growing strongly compared to previous years, and it is also a worry for traditional taxis At that time, Grap needs to develop more fields because the Vietnamese market is very potential and this is also a country on the way to economic development today

Reference: 1.Introduce

https://www.slideshare.net/nataliej4/n-phn-tch-chin-lc-marketing-ca-grab-ti-2.Analysis of market opportunities

3.Market share of Vietnamese technology car

https://vietnambiz.vn/thi-phan-goi-xe-cong-nghe-viet-grab-chiem-3-4-gojek-4.The current unemployment situation in Vietnam.

https://www.grab.com/vn/en/press/business/grab-se-dau-tu-them-500-5.Survey on the level of universalization of car apps in Vietnam.

https://qandme.net/vi/baibaocao/khao-sat-ve-muc-do-pho-bien-cua-cac-6.Grab contributes to promoting the development of a digital economy in Vietnam

https://congthuong.vn/grab-gop-phan-thuc-day-phat-trien-nen-kinh-te-so-o-7.Grab and marketing strategy to "confess" in Vietnam.

https://vietads.net.vn/goc-nhin-marketing/grab-va-chien-luoc-marketing-de-8.Advices for the government

https://vneconomy.vn/khoang-trong-phap-ly-trong-kinh-doanh-van-tai-nhin-9.SWOT Analysis of Grab.

10.Conclusion