tiểu luận report analyzing characteristics andattractiveness of japan for vietnamese enterprisein fruit products

Figure 2: Index of Japan’s Economic Freedom...6Figure 3: Japan International property rights index...11Figure 4: Hofstede’s demensions in Japan and Vietnam...12... Second and most import

THE UNIVERSITY OF DA NANG

DA NANG UNIVERSITY OF ECONOMICS

International Business REPORT ANALYZING CHARACTERISTICS AND

ATTRACTIVENESS OF JAPAN FOR VIETNAMESE ENTERPRISE

IN FRUIT PRODUCTS

Lecturer: Phung Nam Phuong

Class: IB2001_48K01.1

Members:

Da Nang, 2023

TABLE OF CONTENTS

I INTRODUCTION 1

II GENERAL INTRODUCTION ABOUT SUNRISE FRUITS COMPANY 1

1 Business Objective 1

2 History of formation and development 1

3 Business fields 2

4 Equipment system 2

5 Staffs 2

III JAPAN’S POLITICAL SYSTEM 2

1 The political system in Japan is collectivist or individualist? 2

1.1 Definition about Collectivism and Individualism 2

1.2 The collectivism in Japan 3

2 The political system in Japan is democracy or totalitarianism? 3

2.1 Definition about democracy and totalitarianism 3

2.2 The democracy in Japan 4

IV JAPAN’S ECONOMIC SYSTEM 5

1 The mixed economy in Japan 5

2 Assess Japan's level of economic openness: 6

3 Advantages and Disadvantages of level of economic openness in Japan 7

3.1 Advantages 7

3.2 Disadvantages 7

V JAPAN’S LEGAL SYSTEM 8

1 Civil law 8

2 Common Law 8

3 Traditional Law 9

4 Property rights 10

4.1 Defination 10

4.2 The property rights in Japan 10

VI HOFSTEDE’S CULTURAL DIMENSIONS IN JAPAN AND COMPARISION WITH VIETNAM’S 12

1 Hofstede’s power distance dimension 12

2 Individualism versus collectivism dimension 13

3 Hofstede’s Uncertainty avoidance dimension 13

4 Hofstede’s masculinity versus femininity dimension 14

5 The long-term versus short-term orientation dimension 15

VII FORECAST BENEFITS/COST/RISKS WHEN SUNRISE FRUITS DOES INTERNATIONAL BUSINESS IN JAPAN 16

1 Benefits 16

2 Costs 17

3 Risks 18

VIII CONCLUSION 19

TABLE OF FIGURES Figure 1: Democracy Index of Japan 4

Figure 2: Index of Japan’s Economic Freedom 6

Figure 3: Japan International property rights index 11

Figure 4: Hofstede’s demensions in Japan and Vietnam 12

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International business is becoming increasingly popular because it providesmany opportunities for businesses to grow and earn profits As a business planning to

do international business, evaluating the characteristics of the target country is the key

to determining the success of the business Therefore, it is important to understand thecharacteristics of the country's economic, political, legal and cultural systems Fromthere, it is possible to consider whether that country is an ideal market for internationalbusiness enterprises or not through evaluating criteria such as benefits, costs and risks.First, the report will review brief information about the Vietnamese enterprise -SUNRISE FRUITS Second and most importantly, this report is to conduct an in-depthunderstanding of factors related to the political, economic and legal system of Japan,where SUNRISE FRUITS conducts international business through specific indicatorsand data In addition, through the hofstede model, we will explore 5 cultural values ofJapanese people These will be the basis for assessing the opportunities and challenges

of the Japanese market as an investment destination for Vietnamese businesses Fromthere, SUNRISE FRUITS can decide whether to target the Japanese market or not, orcreate business strategies that suit the needs and desires of this country

II GENERAL INTRODUCTION ABOUT SUNRISE FRUITS COMPANY

SUNRISE FRUITS fruit export company is one of Vietnam's fruit exportenterprises The company has more than 5 years of experience in this field, and hasachieved many significant achievements

1 Business Objective

The company specializes in exporting high quality fruit to foreign markets andfocuses on Japan, one of the major markets of Asia The main goal is to provide fresh,safe and diverse products from Vietnamese agricultural products to Japaneseconsumers

SUNRISE FRUITS Fruit Export Company was established in 2018, co-founded

by a group of SUNSEE young people The company specializes in exporting fresh fruit

to the Southeast Asian market In 2022, the company achieved fruit export turnover of

100 million USD In 2023, the company decides to expand its export market to moredemanding markets such as Japan

3 Business fields

SUNRISE FRUITS fruit export company is currently doing business in thefollowing main areas: Export of fresh, frozen fruits (Mango, dragon fruit, rambutan,longan, lychee, jackfruit, ), export of processed fruits Dried fruits)

4 Equipment system

SUNRISE FRUITS Fruit Export Company currently owns a modern equipmentsystem, fully meeting fruit export standards.The company's factory system has a totalarea of more than 5,000 m2, fully equipped with fruit processing, packaging andpreservation equipment.The company's cold storage system has a total area of morethan 1,000 m2, meeting the needs of preserving fresh fruit for a long time

5 Staffs

SUNRISE FRUITS fruit export company currently has a staff of more than 300people, professionally trained and experienced in the field of fruit export.Thecompany's staff is always dedicated, enthusiastic, and always tries their best to bringhigh quality fruit products to customers

III JAPAN’S POLITICAL SYSTEM

1 The political system in Japan is collectivist or individualist?

1.1 Definition about Collectivism and Individualism

Collectivism is defined as a political system that prioritizes collective goalsbefore individual goals There, the needs of the collective are considered more

2

important and individuals may be constrained if their interests are contrary to thecommon good of the collective [1]

Individualism goes against collectivism There, personal interests come first,more important than state interests Individuals have the freedom to pursue economic

as well as political activities [1]

1.2 The collectivism in Japan

Japan is considered a collectivist country People often consider themselves andothers as members of a collective unit or group (family, business, organization ) That

is proven through the following specific evidences:

Japan has an IDV number of 46, based on Geert Hofstede's IDV number.According to the IDV index, Japan has a strong inclination toward collectivism [2]Japanese people typically work together to accomplish shared objectives.Japanese people are known for establishing harmony with others around them at work

by putting aside their egos to further the common good Teams sometimes worktogether to accomplish a shared objective, like beating a foreign rival Thus, losing thegroup's honor is the ultimate taboo [3]

Japanese individuals have a tendency to put other family members' needs ahead

of their own They frequently give up money, time, and effort to look after and supportother family members

Japanese communities often participate in community-building events likefestivals and neighborhood clean-up days that foster a sense of cohesion and sharedresponsibility for the community's well-being After a game during the 2018 SoccerWorld Cup in Russia, Japanese fans reportedly cleaned up the stadium, according tointernational media [4]

In times of crisis or disaster, Japanese society often comes together to supportone another The concept of collective responsibility is evident in the way communitiesand individuals rally to help those in need

2.1 Definition about democracy and totalitarianism

Democracy is a form of political system where citizens exercise their powerdirectly or through elected representatives By choosing representatives torepresent them, citizens may actively participate in decision-making Directdemocracy was the first type of democracy Representative democracy is now themost prevalent type of democracy [5], [6]

A totalitarian system is one in which a single individual or political partycontrols every aspect of daily life and outlaws the support of other political parties.Autocrats frequently hold political power in authoritarian nations [6], [7]

2.2 The democracy in Japan

Japan is considered a democratic country Japan has a parliamentarygovernment and a constitutional monarchy as its form of government The electedlawmakers hold actual political authority; the Emperor of Japan is only aceremonial head of state The 1947 Constitution of Japan serves as the foundationfor Japan's political system [8]

Key reasons of Japan's democracy include:

Figure 1: Democracy Index of Japan

4

the Japanese Constitution establishes the people's sovereignty over therights of judges through the "citizenship examination" system for SupremeCourt judges The review was conducted through a referendum The votecoincides with the House of Representatives election.

Japan has a strong legal system based on the rule of law The judiciary isindependent, and the legal framework ensures that individuals are treated fairlyand have access to due process

Japan has a free and independent media that plays a crucial role inproviding information to the public Freedom of the press is protected,contributing to the transparency and accountability of the government

IV JAPAN’S ECONOMIC SYSTEM

1 The mixed economy in Japan

An economic system that incorporates elements of socialism and capitalism iscalled mixed [10] Japan's economy is regarded as mixed because it is regulated by thegovernment and also managed by private companies That is proven through thefollowing specific evidences:

Japan has a thriving private sector with numerous private companies, but italso has a significant public sector with government involvement in variousindustries For instance, Japan has state-owned enterprises (such as Japan Post and

Japan Railways) and government agencies that regulate and support various sectors

of the economy

The government has compensated for the shortcomings of the marketeconomy, prevented the destructive ill-calculated activities of the free competitionmechanism, directed enterprises to invest in production Prominent is theAbenomics policy aimed at curbing deflation and stimulating economic growth.Joint venture, economic linkage, development of Keiretsu model Keiretsu is

a large family consisting of many members, which are large corporations closelyassociated with the bank This bank controls and creates guarantees for theactivities of companies in the system Keiretsu is the origin and foundation of aseries of super brands today, corporations with an extremely high level ofdiversification such as Honda, Toyota, Mitsubishi, Nissan, To some extent,Keiretsu became an invincible system of competition between Japanese and foreignbusinesses [11]

In 2018, Japan was the fourth-biggest exporter in the world as well as thegreatest exporter in its own country With around 1,300 billion USD in foreignexchange reserves, this nation ranks second [12] Japan's trade policy follows twodirections: (1) Actively participate and promote its role in regional and internationaleconomic organizations, (2) Focus on developing bilateral and multilateraleconomic cooperation

6

Figure 2: Index of Japan’s Economic Freedom

A more economically open Japan would likely have lower trade barriers, such astariffs and quotas This facilitates easier access for foreign fruit producers and reducesthe cost of market entry

A highly open economy tends to have well-established supply chains Foreignexporters (SUNRISE FRUITS) can benefit from efficient logistics and distributionnetworks, ensuring timely delivery of fresh produce

3.2 Disadvantages

Despite its economic openness, Japan can still impose tariffs and importrestrictions Strict safety and quality standards in Japan can pose challenges forbusinesses in terms of compliance This can increase the price of imported fruit andcreate challenges for SUNRISE FRUITS

A highly open market can also mean fierce competition Enterprises entering thefruit market may face competition from both other domestic and internationalproducers, which requires an effective differentiation strategy

Because of economic openness, international trends have an impact on markets.Businesses may see our success tied to Japanese consumer trends and changes in thesetrends may impact demand

V JAPAN’S LEGAL SYSTEM

1 Civil law

Concerning the court system: Japan's court system is based on the court systems

of civil law nations, namely Germany and France, and is monitored by lawenforcement authorities However, following WWII, Japan's judicial system was nolonger susceptible to political control, but instead enjoyed a constitutionallyautonomous status within the governmental structure Today's Japanese court system,like the legal systems of continental European countries, is divided into tiers

In terms of law: Written law is the most significant law in Japan, similar to civillaw systems And, like many other nations in this family, the Court's judgment (alsoknown as precedents, precedents, trial practices) is not formally recognized as a source,despite the fact that it is a significant source of additional law The German Civil Codeand the French Civil Code have both affected Japan's Civil Code

Legal practice is the second most significant and favored source of legislation.The Court's decision is not formally recognized as a source of law, but in reality, as incontinental European nations, the court's decision serves an important function as asource of additional legislation

8

In Japan, like in many civil law countries, the Court's decision is a practicalsource of law The Supreme Court's decision is significant because it binds subordinatecourts while also putting light on established legal standards and addressing gaps inwritten law.

Legal Education: The legal education system in Japan is comparable to those ofnations with a civil law system, particularly France and Germany In Japan, law is stillmostly taught through lectures in large-scale courses of more than 500 people, with thediscourse focused solely on theory

2 Common Law

The Civil Law has a great impact on Japanese law However, following WorldWar II, Japanese law has seen tremendous transformation, with not just Civil Law butalso Common Law beginning to enter Japan and influence its legal system Thesurrender of Japan's allies in World War II, as well as the US occupation of Japan forseven years, facilitated the common law family (which has a crucial impact on thedevelopment of Japanese law) The Common Law's effect on Japanese law is mostvisible in laws governing people' rights and responsibilities, as well as procedural andinstitutional legislation governing the judicial system

The establishment of citizens' rights and responsibilities was explicitly stated inthe 1946 Japanese constitution and the 1947 Civil Code Citizens' rights andresponsibilities, according to the 1946 Constitution, are constitutional provisions thatcannot be violated

In terms of litigation, the Common Law's influence on Japanese law inprocedural regulation is most obvious in criminal procedure laws With the exception

of the jury system, which Japan did not accept under US law, Japan's CriminalProcedure Code 1948 was written in the style of the US Criminal Procedure Code.During the procedures, the idea of litigation is stressed; judges only perform a limitednumber of arbitration duties; the major role in the proceedings is reserved for the

Concerning the court system: The Common Law family's effect on Japanese law

is also significantly apparent in legislation governing the formation of the Courtsystem The American legal system had a strong effect on the 1946 constitution, theCourts Act, and the Prosecutors' Law, all of which were implemented in 1947 The Supreme Court has been given the authority to investigate the validity oflegal texts A sentence in Japan can be appealed twice (first instance, appeal, and firstinstance) since the court system is not organized according to administrative level

3 Traditional Law

Regarding dispute resolution: The Japanese legal system maintains therequirements of traditional law despite being greatly influenced by contemporaryJapanese law This is evident in the limitations on marriage and family, inheritancelaws, dispute resolution processes, and the application of legal resources AlthoughJapan has a high level of democracy, Japanese people dislike co-governmentalactivities and are hesitant to meddle in civil law without the court system, which is stillwidely used in Japan

Law source: Written law, as in other European nations, is the most importantsource of law in Japan In practice, however, this is not always the case In somesituations, judges may depend on techniques that violate the law in order to reach asatisfying conclusion In civil law, if the implementation of the law does not providefor public policy, the parties might omit it and substitute it with opposing legalpractice