Đưa doanh nghiệp việt nam cạnh tranh nhiều hơn trên thị trường thế giới e

Topic Select a country and a product or service you feel will be a wise and a long term investment potential for your Vietnamese company expansion into a foreign country Why did you select this country? Support your choice with good documentation and reliable data Why did you select this product or service? What is your projection on the competition you will have in this country? Please document and explain your rationale What are the strengths and weaknesses of your country and product/ service choices? Please be specific What specific research or background information would you need to consider before entering into this sometimes risky but often very profitable international business venture? Where would you find pertinent data/ quality sources to help you start the business? Please include specific sites and a short description of what is contained in the site data Try to make this assignment a realistic investment endeavor Copied papers will result in zero grade – Please write your own paper Please use creativity and innovation in your paper Assignment Select the country to invest To find a potential nation for wise and long-term investment in order to expand your business into foreign countries, the most wisdom choice for a Vietnamese company is that: selected country must be a potential market (good business opportunity, largeenough market size, low cost and well disposable natural resources, etc) and be ranked as on top of easy-to-do business by the WB Obviously, it is necessary to cautiously consider the factors in terms of geography and language, etc  Based on criteria of Top countries easy to business We will prioritize investing a country ( or some countries) highly ranked from first ranking to tenth one such as: Singapore, Hong Kong SAR, China, New Zealand, United States, Denmark, Norway, United Kingdom, United Kingdom, Georgia, Australia Table 1: Top Countries Easy to Business Nation year 2011 12 11 10 14 20 91 Singapore Hong Kong SAR, China New Zealand United States Denmark Norway United Kingdom Korea, Rep Georgia Australia Finland Malaysia Sweden Japan China year 2011 10 11 12 13 24 91 Source: http://search.worldbank.org/all?qterm=world+doing+business  Based on criteria of countries where the most popular languages are used, we will prioritize selecting countries in which English, Chinese, Portuguese, Japanese, Spanish are spoken We put the highest priority on English-speaking countries for English is recognized as the international language and is used by the largest number of people and countries compared to other languages Table 2:  Based on criteria of countries which are geographically close to Vietnam, China, Japan or South Korea are our priorities Figure 1: World map  The best selected countries are those which have stable political condition and monetary system (highly-ranking countries in Table 1) in order to avoid risks of political and legal systems’ changing that foreign investors probably face Those countries are the US, the UK, Germany, Japan, Singapore, etc  Based on market size and development perspective, we prioritize selecting – - China: Population: more than 1.3 billion people High growth rate, China’s GDP is the second highest one compared to other countries’ ones in the world ($7.32 thousand of billion in 2011 ) Source:http://www.chinadaily.com.cn/business/2012-01/17/content_14460323.htm - The US Population: 311.6 million people GDP is the highest one in the world (15.09 thousand of billion in 2011) Source: http://www.bea.gov/newsreleases/industry/gdpindustry/gdpind_glance.htm - Japan: population is 127.8 million people, GDP in 2011 reached 5.869 thousand of billion dollar, ranking third in the world Table 3: Population and GDP of some countries in the world Country name Population 2011 GDP 2009 GDP 2010 GDP 2011 China 1,344,130,000.00 4,991,256,406,735 5,930,529,470,799 7,318,499,269,769 France 65,436,552.00 2,619,685,000,757 2,549,027,263,158 2,773,032,125,000 Germany 81,726,000.00 3,298,635,952,562 3,258,947,368,421 3,570,555,555,556 India 1,241,491,960.00 1,361,057,169,927 1,684,323,716,503 1,847,981,853,638 Japan 127,817,277.00 5,035,141,567,659 5,488,416,495,785 5,867,154,491,918 Russian Federation 141,930,000.00 1,222,648,134,225 1,487,515,608,183 1,857,769,676,144 United Kingdom 62,641,000.00 2,171,386,109,462 2,251,898,461,538 2,431,588,709,677 United States 311,591,917.00 13,863,600,000,000 14,447,100,000,000 15,094,000,000,000 Vietnam 87,840,000.00 97,180,304,813 106,426,845,157 123,960,665,229 Source: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD http://search.worldbank.org/data?qterm=population+total&language=EN&format= Population, total The final selecting decision: We are determined to select: - The first choice: the US: large market size, the highest GDP in the world, English is used there, ranked as fourth (2010, 2011) in terms of easy-to-startbusiness, dollar is a strong currency, modern technology, comprehensively and transparently legal system, etc Geographically, as an American country, the US is quite far from Vietnam in the Asia - The second choice: China: large market size, the second highest GDP in the world, the largest population, stably high economic growth rate, geographically close to Vietnam However, intellectual rights infringement is commonplace Corruption is nationwide Despite being secondly-high used language in the Internet, it is difficult to learn and not the international language China is only ranked as 91st (2011) by the WB in the list of ranking countries easy to business China also devalued the Yuan to gain advantage for China’s export - The third choice: the EU: a large market consisting of 27 countries with the population of more than 500 million people and developed economy - The fourth choice: Japan: large market, third highest GDP in the world, population of more than 123 million people Legal system is transparent It is also ranked as 20th among countries easy to business in 2010 and as 24th among those in 2011 Japanese is the fourth common language in the Internet Japan and Vietnam has a close relationship Yen has high value Altogether, we decide to select the US with its transparent and large market to expand our investment Moreover, we are fluent in English, whereas, Chinese and Japanese are difficult to learn, and no-one among us could use them Nevertheless, China and Japan are very potential markets and we will consider for the next investment expansion Select products and investment form - Product: fisheries as strong products of Vietnam - Form of market entry: exportation Agriculture and agricultural products are advantages of Vietnam It has 3260 long coast line, 112 rivers, creek and more than 2km2 of water area, etc fisheries products exported by Vietnam are tra, basa, shrimp, sea fish (especially, tuna), etc Aquaculture area of Vietnam is 1.095.618 and the output reached 2.742.888 ton in 2010 Currently, Vietnam is exporting fisheries products into the markets of the US, the EU, Japan and China, etc We select exportation as market entry form since exportation is a production activity that requires materials area in Vietnam, skilled employees, low hiring cost and easy to hire workers Table 4: 2001-2010 aquaculture area of Vietnam (Source: Summary Report - Overall development planning of the fisheries sector in Vietnam up to 2020) Unit: N Territory Red River Delta Midland and mountainous areas of Vietnam North Central and Central Coast Vietnam Hightlands Southeast of South Vietnam Mekong delta Total 2001 2003 85,600 20,900 97,900 22,400 54,800 2005 2007 2008 2009 2010 107,800 31,100 117,200 36,200 121,200 37,900 124,900 40,000 127,571 44,640 Growing (%/year) 4.5% 8.8% 66,200 73,600 78,900 77,900 79,600 80,529 4.4% 5,700 41,500 6,200 47,400 8,300 51,800 9,300 53,400 10,700 52,700 11,100 51,500 19,150 54,680 14.4% 3.1% 546,800 755,300 621,300 861,400 679,900 952,500 723,800 1,018,800 752,206 1,052,606 737,600 1,044,700 769,048 1,095,618 3.9% 4.2% Sourece: General Statistics of Vietnam, Provinces Agriculture and Rural Development, 2011 Table 5: 2001-2010 Aquaculture production of Vietnam (Source: Summary Report - Overall development planning of the fisheries sector in Vietnam up to 2020) Unit: ton N Territory Red River Delta Midland and mountainous areas of Vietnam North Central and Central Coast Vietnam Hightlands Southeast of South Vietnam Mekong delta Total 2001 2003 131,950 20,953 180,666 29,487 59,323 2005 2007 2009 2010 234,267 37,005 304,200 48,849 363,384 55,374 392,277 78,913 Growing (%/year) 12.9% 15.9% 84,810 114,422 141,245 174,238 201,961 14.6% 8,012 45,259 10,958 62,367 11,344 78,138 13,017 89,412 16,122 91,308 18,864 104,943 10.0% 9.8% 444,394 709,891 634,798 1,003,095 1,002,805 1,477,981 1,526,557 2,123,280 1,869,484 2,569,910 1,945,930 2,742,888 17.8% 16.2% Sourece: General Statistics of Vietnam, Provinces Agriculture and Rural Development, 2011 Source: http://www.agroviet.gov.vn/Lists/appsp01_lawdocumentlist/Attachments/83/BCTT_QHTT_nganhTS.pdf U.S seafood market characteristics and opportunity for Vietnam The US import seafood to meet 85% its internal market In 2011, according to a statistics, the US import seafood worth 16.6 billion dollar and export that worth 5.13 billion dollar http://www.commerce.gov/) (Source: http://www.st.nmfs.noaa.gov/st1/trade/documents/TRADE2011.pdf and Supply is limited while demand is large, that is a good opportunity for our company - The South East Asia countries are playing a more and more important in providing seafood to American market In the context that fish stocks are increasingly depleted and overfishing are taking place in many developing countries, the US included, countries with developing fisheries, including Vietnam, have a big opportunity to offset the shortage in such huge market as the US Particularly, the Southeast Asian countries affirmed their prestigious in American market Imported seafood from the Southeast Asian countries into the US accounted for 31% of total imports in 2010 and is expected to rapidly increase following the development direction of marine aquaculture industry in those countries Little supply, big demand Volume of global annual fishing stagnated at the amount of 90 million ton since the middle period of 1990s, meanwhile seafood consumption rapidly increased For instance, the US imported about 2.5 million ton of seafood in 2010, domestic aquaculture output uncounted The amount increased by 5.7% compared to that of 2009 and consumption trend continuously increases (the fact that the US’s residents now only consume half amount of seafood recommended to use by the Government) Importation accounts for 84% total seafood consumption of the US Meanwhile, it is so difficult for seafood producers to meet the demand of consumption The stagnated supply source and increasing demand require the US should expand its seafood market In 2010, seafood trade deficit of the US reached approximately billion dollar, making seafood to be natural resource which has the second largest deficit ratio, following crude oil and natural gas Southeast Asian countries (3.4 billion dollar), China (2 billion dollar), Canada (1.6 billion dollar) account for majority of total seafood importation worth 11.2 billion dollar of the US in the last year Source: http://www.asiamattersforamerica.org/asean/the-us-seafood-market-and-southeast-asia In spite of the fact that half imported seafood of the US comes from domestic supply, the US’s industry only meets about % total consumed seafood Growth prospects of the marine aquaculture industry in the U.S are very dim due to uncertain impact over environment and unfavorable regulations Besides, farming cost in the US is higher than in other countries where this industry is not supported The US has a few options, but certainly will boost aquaculture importation With natural seafood stocks failing to meet increasing demand, along with domestic aquaculture production’s slow development, the future supply sources will depend on aquaculture industry of foreign countries Opportunity for Vietnam Source: http://www.asiamattersforamerica.org/asean/the-us-seafood-market-and-southeast-asia The Southeast Asia aquaculture industry is very diverse, varying from freshwater fish, aquatic plants, crustaceans, saltwater fish and invertebrates Shrimp and freshwater fish have the highest value within Southeast Asian farming products Total output of Southeast Asian seafood has times increased, from million ton in 1990 to million ton in 2005; the average production rate in 2000s increased times compared to that in 1990s With such remarkable results, Asian countries are alleged of dumping price of seafood in the US market since 2000, particularly catfish (tra, basa) and shrimp Most recently, in 4/2011, USDOC continued to impose anti-dumping duty over some kinds of seafood imported from Brazil, China, India, Thailand and Vietnam Besides, Southeast Asian seafood industry must confront with stringent regulations relating to quality and safety standard in the US market Regardless of many difficulties, the Southeast Asian exporting countries are making efforts to expand market share in the US The Wall Street has lately reported that Indonesia, the fourth largest exporting seafood country to the US, is modernizing infrastructures in an effort to increase its seafood market share in the world, towards the goal of increasing amount of exporting seafood by 70% in the three years to 10 come VASEP said that Vietnam’s catfish exportation into the US from early 2012 to now has increased by 85.5% in volume and 105.5% in value compared to that of same period in 2011, reaching 39 million ton and 135 million dollar, because catfish supply source in US domestic market has continuously decreased compared to that in last year and also since the early 2012 up to now, since domestic area of fish decreased The US continues to take a lead in single market importing Vietnam’s catfish, accounting for more than 16% of catfish export turnover Monthly volume and value of basa exportation continued to increase in comparison to that in the same period last year Average exporting price in the US in the first six months increase by 12%, reaching 3.51 dollar per kg Vietnam’s shrimp production are increasingly developing, surpassing other countries in the region in terms of exportation into the US According to the statistics of NOAA announced in 11/08, volume of imported shrimps from Vietnam and Indonesia (fourth and second largest shrimp suppliers, respectively) increased from 21.4% and 19.8% to 37.1 million lb and 77.7 million lb, respectively in the first six months of 2011, in the meantime, that of imported shrimps from other suppliers, including Thailand, Ecuado, China and Mehico, decreased The seafood professionals said that in the last months, the US market still attracts Vietnam’s exporting basa producers, particularly given encouragement from the result of POR in the period 1/8/2009 -15/2/2010 Accordingly, the DOC announced to chose Bangladesh as the third country used to calculate the dumping margin for Vietnam’s catfish and adjusted to grant basa antidumping tax of 0% for IDI and THIMACO Us imports: fish and other marine products, 2011 No Originate Canada China Thailand Chile 2010 2.034.891 1.910.701 1.061.430 601.634 11 2011 2.222.984 2.131.584 1.111.639 937.520 increase, decrease (%) +9,24 +11,56 +4,73 +55,83 10 … Indonesia Vietnam Ecuado India Mexico Norway … 50 El Savado 79 other market Total 734.350 687.419 589.319 345.632 357.950 513.557 … 872.746 837.370 707.481 569.289 454.232 327.797 … +18,85 +21,81 +20,05 +64,71 +26,90 -36,17 … 9.650 9.067 139.140 131.407 11.824.595 13.351.930 -6,04 +12,9 http://www.vasep.com.vn/Thong-ke-thuy-san/124_2970/Nhap-khau-thuy-san-cua-My-ma-HS-03-nam-2011.htm Some difficulties in exporting seafood into the US + High competition Competitiveness will be high when products from Vietnam must sharply compete with cheap products, especially originating from China, Thailand, Malaysia, etc + Some barriers Vietnam’s business should be necessarily more cautious at increasing trade barriers in the US The US has a complicated legal system with many technical barriers in trade Particularly, given difficult economic situation, protectionism trend granted for products of domestic business is more and more increasing In fact, most of main imported products from Vietnam into American market must either struggle with anti-dumping and counter-subsidize cases such as catfish, base, textile, PE bags, steel products and hangers, etc, or face the risk of being sued such as furniture and seafood, etc 2011 saw not only the fact that the number of Vietnam’s business initiated against by the US increased but also that the US enacted more Acts to create trade barriers to Vietnam’s entrepreneurs, proven by the case of steel products: Vietnam’s business producing steel hangers were officially initiated in the end of 2011 Moreover, the approval of such Acts as Food Safety Modernization Act (FSMA): which requires test of Residues Of Plant Protection Products In all shipments; Intellectual rights infringement in IT Act in order to ban exporting businesses from using illegal software in all business activities, etc have caused many troubles to businesses 12 + Difficulties in exporting agricultural products into American market According to the judgment of pundits, in the coming time, Vietnam’s exported agricultural products into the US will meet a lot of troubles as the US carries out testing quality of imported agricultural products in accordance to the FSMA recently enacted by its Government Specifically, accordingly, from 2012, the Us will apply stringent test procedures to imported products from all exporting countries, including agricultural products, foods and drinks Also according to FSMA, American Agricultural Department will be entitled with the right to check or recall products exported into the US if they are found to fail the quality standard Plan of the US seafood market entry Favorable market condition for us - As mentioned above, demand of seafood in the US is so high, whereas supply is limited (high demand is an advantage) - Seafood exportation into the US promises to see a breakthrough as the Department of Commerce has recently announced the administrative review results regarding shrimp and basa products exported into the US market Accordingly, the anti-dumping taxes in the POR are much lower than they were in POR In terms of basa products, tax is 0% in the preliminary review Increase competitiveness: According to official result of the fifth period of Review regarding Vietnam’s frozen shrimp products (in the period of 1/2/2009 -31/1/2010), tax of reviewed companies decreased In which, taxes of three mandatory respondents decrease from2.95% to 1.15%; that of Nha Trang seafood decreases from 4.89% to 0%; that of Camimex decreases from 3.92% to 0.83% Taxes of 28 non-respondents also decrease from 3.92% to 1.04% The official result of POR itself also decrease by large amount compared to the preliminary result announced by the DOC March 2011 (majority of companies are taxed by 1.52% at that time) Decreasing anti-dumping taxes compared to that of previous POR means that such companies could be paid back partial amount of cash deposits, and cash deposits in the next period of exportation will also decrease Moreover, new tax will increase competitiveness of Vietnam’s shrimp products in the US given the context that the competitors of Vietnam are being taxed at low rate 13 consecutive years with tax of 0%: In the meantime, according to the official result of POR regarding Vietnam’s tra exported into the US in the period of 1/8/2009 – 31/7/2010, Vinh Hoan corporation has become the first Vietnamese seafood company that escaped from the US’s anti-dumping lawsuit Beside Vinh Hoan, other companies as respondents in this review are taxed by approximately 15% Active tax reduction: According to VASEP, one of the reasons that Vietnam’s seafood companies have low anti-dumping tax in this review is that the price of exported products into the US has increased To count dumping margin, the US DOC compares price of exported products from Vietnam to normal price, meaning that the higher price (of shrimp, catfish) from Vietnam is, the lower dumping margin is In regard to shrimp products, in the recent POR 5, the US continued to apply zeroing which was dismissed by the WTO in the recent case between Vietnam and the US “Now, the period of appellation doesn’t expire so that the US hasn’t yet used that method If the US doesn’t’ apply that method any longer, tax that Vietnam’s businesses are granted will be lower” Difficulties: Exporting price decrease due to big competitiveness with such countries as: Bangladesh, India, Thailand, Malaysia etc Plan - Begin to import into the US from the first Quarter of 2014 - Assign Investment Department of the Company to establish specific plan to select: market size, expected sales, expected benefit, needed capital, how to raise capital, investment payback, etc completed by 31/12/2012 - 2012: plant construction, production line purchase, worker selection, supply chain and high-quality materials build, food safety, environmental protection based on the standards of the US, the EU and Japan, etc completed by 9/2013 Need to be well-done: Products must have high-quality and meet the food safety standard and other standards issued by the US Build up comprehensive marketing strategy - Establish good websites to sell products and to seek for trade partners - Participate in seafood and fisheries fairs domestically and internationally to advertise the company and its products 14 - Participate in professional associations to get as much information about market and trade partners as possible - Enlist the assistance from the relationship with Vietnamese businessman living in the US, Vietnamese Government’s offices and other relationships - Find trade partners via other ways - Hire good lawyers to counsel issues regarding international trade law, importing countries’ law and Vietnam’s law in order to avoid trading risks - Complete legally registration procedures in American authorities according to the US’s law For example, under the provision that from 1.10 to 31.12.2012, food producing and processing facilities who want to exports products into American market must register their information with Food and Drug Administration and Food Safety Modernization Act … 15 ... investment Moreover, we are fluent in English, whereas, Chinese and Japanese are difficult to learn, and no-one among us could use them Nevertheless, China and Japan are very potential markets... Quarter of 2014 - Assign Investment Department of the Company to establish specific plan to select: market size, expected sales, expected benefit, needed capital, how to raise capital, investment... initiated against by the US increased but also that the US enacted more Acts to create trade barriers to Vietnam’s entrepreneurs, proven by the case of steel products: Vietnam’s business producing