Report Subject International Business.pdf

Recognizing Trung Nguyen's ability to supply coffee to the global market and Singapore as a potential market, our team has chosen Trung Nguyen Legend and the Singapore market as a topic

TON DUC THANG UNIVERSITY BUSINESS ADMINISTRATION FACULTY INTERNATIONAL BUSINESS

ĐẠI HỌC TÔN ĐỨC THẮNG

TON DUC THANG UNIVERSITY

REPORT SUBJECT: INTERNATIONAL BUSINESS

LECTURER: Tran Thé Nam CLASS: 01

GROUP: 04 STUDENT’S NAMES: Duong Ngoc Tuyét Anh 721V0028

Tran Ngọc Minh Nhật 721V0050

Ho Chi Minh, 04/2023

Contents

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1 INTRODUCTION

Hitherto, coffee is not only a beverage but also a key export product in Vietnam, accounting for the second-largest agricultural export in terms of turnover As a result, the coffee industry plays a significant role in the national economy When it comes to coffee, it's impossible not to mention Trung Nguyen Legend, which is a close and well-known brand to many customers Trung Nguyen Group Jomt Stock Company was formerly a small coffee shop founded by Chairman Dang Le Nguyen Vu in Buon Ma Thuot Trung Nguyen Group is an enterprise that specializes in coffee production, processing, trading, franchising, distribution services, modem retail, and tourism In the field of coffee production, the company offers typical products such as G7 instant coffee, Weasel coffee, etc Trung Nguyen's products have been exported to more than 80 countries worldwide, including the United States, Canada, Russia, and so on

Singapore, a small country in Southeast Asia, is one of the wealthiest countries in the world, having established itself as a famous financial center, the world's busiest port, and a strategic location for investment Singapore culture is the intersection of many different cultures, making it extremely unique and diverse However, coffee has become an indispensable beverage in the daily lives of both residents and foreign tourists

Recognizing Trung Nguyen's ability to supply coffee to the global market and Singapore

as a potential market, our team has chosen Trung Nguyen Legend and the Singapore market as

a topic for discussion in the International Business subject

2 POLITICAL ENVIRONMENT

2.1 Singapore’s political

Singapore is considered one of the most politically stable countries in the world The current political environment in Singapore is stable and has one of the most effective and transparent governments in the world In recent times, Singapore has faced a number of challenges, but Singapore remains one of the most developed and successful countries in the world

2.2 The Singapore government’s attitude of international business and international trade

The Singapore government has a very positive attitude towards international business and international trade Singapore is one of the countries with the most open economy in the world, with favorable policies and regulations for international businesses to invest and operate

in the country The Singapore government aims to become the leading financial, commercial and economic center of Southeast Asia and has made efforts to attract international businesses

to invest in Singapore through tax policies low cost, good infrastructure and favorable business environment

Singapore is also a member of many international and regional organizations such as the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Cooperation Council (APEC), and the World Trade Organization (ASEAN) (WTO) Singapore appreciates the role of international trade in economic development and promotes global economic integration

The legal system is highly appreciated, and the regulations are clear In addition, Singapore also has an effective anti-corruption agency, which helps ensure transparency and honesty in economic and political transactions

2.3 Relationship between Vietnam and Singapore

The relationship between Vietnam and Singapore is considered to be quite good in recent times The two countries established diplomatic relations in 1973 and have since strengthened their comprehensive partnership since the signing of the Agreement on Strategic Partnership between the two countries in 2013 Both countries are willing to cooperate in areas such as education, health, science, and technology Economic ties between Vietnam and Singapore are increasingly strengthened, with Singapore being one of Vietnam's largest trading

partners

3 ECONOMIC ENVIRONMENT

3.1 GDP

According to official data from the World Bank, Singapore's GDP in 2021 was worth 396.99 billion US dollars, which increase of 51,69 billion USD compared to 2020 Singapore's

Ministry of Industry and Trade (MTT) released data that Singapore’s economy expanded by 3.6% in 2022, which is lower than the earlier estimate of 3.8% This data also declined significantly compared to the growth rate of 8.9% in 2021

Besides, the Economist Intelligence Unit predicts that the increase in global coffee consumption will decrease to 1.6% in 2019/20 from the estimated growth of 1.9% in 2018/19 because of the economic recession Therefore, economics plays an important role in the business activities of the coffee industry

3.2 Income

In general, the majority of Singaporeans currently have higher incomes and greater wealth than they have ever had before In most developed countries, Singapore also experiences income inequality, with a gap between the rich and the poor being prevalent Table 1: data on the average monthly household income per member (inclusive of employer CPF contributions) of the bottom 10% and top 10% (smartwealth.sg)

Top 10% ($) 12,773 13,215 13,581 13737 | 13,400 Difference ($) 12,230 12,661 13,011 13,140 | 12,840

3.3 Economic Relations Between Vietnam & Singapore

Vietnam and Singapore have a strong economic relationship, which has grown significantly in recent years In 2022, the total import-export turnover between Vietnam and Singapore will reach 9.1 billion USD; up 11.6% compared to 2021 (In which, Vietnam's exports to Singapore reached 4.3 billion USD Vietnam's imports from Singapore reached 4.8 billion USD)

- Vietnam, and Singapore establish a green economy partnership

February 2023, when the two countries are preparing to celebrate their 50th anniversary of diplomatic ties, Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart

Ly Hién Long have agreed to establish a digital and green economy partnership

A digital platform: promoting digital transformation in priority areas such as population management, finance, banking, land, and e-commerce

A green economy, Singapore will support Vietnam in a fair energy transition, eyeing zero emissions by 2050

The promotion of electricity grid connection between Vietnam and Singapore is expected to be

a model for cooperation on trade and electricity connectivity in ASEAN

4, LEGAL ENVIRONMENT

4.1 Legal system

Singapore is a republic with a parliamentary government structure based on the Westminster Model Our legal sources are our Constitution, legislation, subsidiary legislation (e.g., Rules and Regulations), and judge-made law The Constitution is the ultimate law of the nation, establishing the fundamental foundation for the three branches of government: the President, the Legislature, and the Judiciary The Government owns the Constitution, which is led by a Prime Minister appointed by the President from among the members of the National Parliament The government is administered by a cabinet The law is owned by the National Assembly and the President - Judicial: Supreme Court and lower courts

Singapore's investment laws is unusual in that it lacks a separate investment law to govern direct foreign relations, despite the fact that foreign investment relations are governed

by the same business law as foreign investors Singapore generally acknowledges the laws of

other nations, particularly Vietnamese law Interactions between domestic investors In Singapore, such a corporation is obliged by law to hire a secretary The person working as a secretary must be a permanent resident of Singapore This might be a guarantee of safety and transparency in commerce for overseas businesses, as well as a binding of Singapore law

4,2 Government's attitude and behavior towards foreign enterprises

Singapore is a truly open market, and the government grants foreign investors preferential treatment through transparent regulations, an effective management system, and administrative machinery Singapore is often regarded as a corruption-free jurisdiction Most commodities may be imported into Singapore without any limitations, with the exception of a few things, such as chewing gum and firearms, which are forbidden Singapore, on the other hand, has highly severe food hygiene and safety requirements, as well as consumer protection legislation

5 CULTURE

5.1 A traditional beverage in Singapore

Singaporean culture has Chinese identities; therefore, tea is regarded as one of the most important aspects of Singaporean life When Chinese immigrants migrated to Singapore, they brought their traditional beverage - tea into Singaporean life Since then, tea has become a distinctive feature of the Chinese community living in Singapore

However, few people are aware of a culinary culture that is both unique and familiar to all Lion Island residents That cultural feature is the renowned coffee shop, Kopitiam Kopi in Malay means coffee, while 7Ziam in Hokkien, one of many Chinese dialects, means store For many Singaporeans, Kopitiam is the heart of their lives

5.2 Singaporean tastes in coffee

Nowadays, many Singaporeans have been accustomed to drinking instant coffee from the United States and Italy Hence, when Vietnamese coffee entered the Singapore market, people were drawn to Vietnamese unique filter coffee

Trung Nguyen has successfully introduced Vietnamese bittersweet coffee to the Singapore market, receiving a positive response from customers In contrast, some people still think it's too bitter and get a sore throat after drinking it Nonetheless, it is still a promising indicator that the taste of Vietnamese coffee 1s accepted widely in Singapore

5.3 Singaporean consumers’ behavior and lifestyle

Consumers in Singapore are increasingly demanding for sustainable and nutritious products to maintain healthy lifestyles; however, they are hesitant to pay more for that reason When making purchasing decisions, Singaporeans also consider other factors such as price, quality, and service Hence, large package discounts and promotions can be used as tools to grab their interest and persuade them to buy

Also, Singaporean shoppers frequently consult friends, relatives, and online reviews before making a purchase Trung Nguyen must therefore cooperate with experts and influencers who can promote the brand and give it credibility

6 SOCIAL ENVIRONMENT

The population of Singapore is 5,977,939 people according to the latest figures from the United Nations (danso.org), equivalent to 0.07% of the total world population, which also means that Singapore is one of the countries with the lowest total population in the world

SINGAPORE / Population

7,000,000 5,876,885

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

L] - percentage of population under 15

L]- percentage of population between 15 and 64 years old

[| - percentage of population 65+

Based on Singapore's age structure, we can see that the age group from 15 to 64 amounts

to a vast majority (77%) These citizens are of working age and have a very strong desire to connect with their friends and partners Besides, young people tend to step out of the conventional tea-drinking culture, thus, coffee is an ideal option Therefore, Trung Nguyen can select this age group as its target customer

LÌ 65+ [|

|

As we can see from this bar chart ( estimate):

- 851,115 young people under 15 years old ( 441,033 males / 410,082 females)

- 4,755,665 persons between 15 and 64 years old ( 2,312,348 males / 2,443,317 females)

- 571,013 persons above 64 years old ( 255,575 males / 315,438 females)

+ Birth rate: 8, 336 children / 1000 people (2023)

+ Death rate: 5, 208 people / 1,000 people (2023)

+ Net migration: 4,570 people / 1000 people (2023)

+ Average life expectancy: 84 years old