International market penetration of viettel global investment joinstock company

Lunghwa Universityof Scienceand Technology Department of Business Administration Thesis for a Master’s Degree International Market Penetration Of Viettel Global Investment Joinstock Company Researcher: Le Van Cuong Supervisor 1: Dr.Dinh Van Toan Supervisor 2: Assoc.Prof Zhiwin Wu January 2018 Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis International market penetration of Viettel Global Investment Joint-stock Companypublished by Mr.Le Van Cuongin the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board: Board Members: Advisor: Chair: Date: …… /……/2018 ABSTRACT Thesis title: International market penetration of Viettel Global Investment Joint-stock Company Number of pages:89 Name of the university: Lunghwa University of Science and Technology Faculty: Business Administration Date: ……/… / 2018 Researcher: Le Van Cuong Level: Master Supervisor: Dinh Van Toan : Zhiwin Wu Thesis contributions This thesis has clarified some disputed issues about the international market penetration of Viettel Global Investment JSC (Viettel Global) in telecommunications industry The thesis also carried out an extensive research in real situations when deciding in target markets, implementing marketing strategies and evaluating results, identifying limitations in the activities of international market entry of Viettel Global Depending on these findings, the author proposed some feasible solutions to enhance and foster the activities of international market penetration of Viettel Global during the period of 2017-2020 The findings from this thesis can be used as references for other research and studies in the future Thesis structure: The thesis can be divided into main parts: Chapter 1:Literature review of the international market penetration in telecommunications business Chapter 2:The international market penetration activities in Viettel Global Investment JSC Chapter 3:Solutions for fostering the penetration of international market in Viettel Global JSC ACKNOWLEDGEMENTS During my study and completion of this thesis, I have received the valuable guidance and supports from my lecturers and my colleagues I would like to express my sincere thanks to the head and lecturers at International School and Lunghwa University of Science and Technology who have created the most favorable condition for me to complete this thesis I also would like to show my deep gratitude to Dr.Dinh Van Toan, AssocProf.Zhiwin Wu who have devoted time to support and guide me to the right direction during my time studying and carrying out the research Meanwhile, if it had not been for the assistance from the leaders and related departments of Viettel Global Investment JSC in providing reports and collecting data, I could not have accomplished this thesis Having finished my master thesis, I have received a lot of supports and encouragement from my friends, my colleagues and my family whom I would like to express my deep gratitude to Despite all my efforts, the limitations of this thesis are unavoidable Therefore, I wish to receive valuable comments from the lecturers and colleagues to deliver the better results of this research Hanoi, ……/……/2018 Author Le Van Cuong CONTENT ABSTRACT…………………………………………………………….2 ACKNOWLEDGEMENTS……………………………………………3 The necessity of the thesis The objectives and missions of the thesis Subject and the scope of the thesis Methodology of the research Contributions of the thesis Thesis structure CHAPTER 1:.………………………………………………………….10 LITERATURE REVIEW OF THE INTERNATIONAL MARKET PENETRATION IN TELECOMMUNICATIONS BUSINESS…………………………………………………………… 10 1.1 The overview of the research topic 10 1.1.1 Research in Vietnam 10 1.1.2 Research in foreign countries 11 1.2 The overview of international market penetration 12 1.2.1 Definitions of international market penetration 12 1.2.2 Roles of international market penetration 13 1.3 The matter and requirement of international market penetration in telecommunications business 15 1.3.1 Selecting the target market 16 1.3.2 Deciding on the market penetration strategies 22 1.3.3 Developing and implementing marketing policies to penetrate the telecom market 27 1.4 Criteria for evaluating the results of international market penetration for telecommunication enterprises 34 1.5 Factors affect the international market penetration activities of telecommunications business 35 1.5.1 Cultural environment 36 1.5.2 Political and legal environment 36 1.5.3 Market size 36 1.5.4 Costs of production and transportation of products 36 1.5.5 Assets and resources of the enterprises 37 1.5.6 International investment experiences of the enterprises 37 CHAPTER 2:………………………………………………………….38 INTERNATIONAL MARKET PENETRATION ACTIVITIES IN VIETTEL GLOBAL INVESTMENT JSC.…………………………38 2.1 Introduction of Viettel Global Investment JSC 38 2.1.1 The establishment and development of Viettel Global Investment JSC…………………………………………………………………….38 2.1.2 Business philosophy and development perspective 39 2.1.3 Organizational Structure 39 2.1.4 Main business areas and characteristics of products and services… 40 2.1.5 Trading and producing results 44 2.2 Selecting target market in Viettel Global 47 2.2.1 Factors affecting the target market selection of Viettel Global 47 2.2.2 Analysis of competitive forces in the international market 53 2.4.1 Market research – classifying customers and selecting target market segments 57 2.4.2 Product policies 59 2.4.3 Price policies 60 2.4.4 Distribution policies 61 2.4.5 Trade promotion and supporting policies 62 2.5.1 International market penetration results 64 2.5.2 Difficulties and limitation 67 CHAPTER 3: 70 SOLUTIONS FOR FOSTERING THE PENETRATION OF INTERNATIONAL MARKET IN VIETTEL GLOBAL INVESTMENT JSC…………………………….…………………….70 3.1 Developing orientation of Viettel Global Investment JSC 70 3.3.1 Solutions from the company 72 3.3.2 Solutions from the government 82 CONCLUSION.……………………………………………………….85 TABLES OF DATA………………………………………………… 87 INTRODUCTION The necessity of the thesis Most of the businesses worldwide always aim at foreign markets Engaging in the international market will give the business many benefits, for example, opening up more opportunities for development and providing higher rates of return The international activities of a company can be described straightforward as exporting a product directly to a country or in a more complicated way, it is the establishment of 100% foreign-owned companies in different countries Since 1986, Vietnamese enterprises have participated in the international market, mainly in the form of direct export However, direct export is not the only way to access the international market An enterprise can choose a variety of ways to reach the international market such as licensing, franchising, joint venture or setting up 100% foreign-owned companies The underlying issue is how to enter the international market successfully In order to penetrate international markets successfully, it is important for enterprises to select the appropriate method which is in line with their business objectives and strategies The penetration method will affect the performance of the business functions in the way that the new market and the performance of the business will allow them to meet the international developing goals Therefore, the study of the international market penetration strategies becomes crucial for companies which aim at expanding their business in other countries In Vietnam, there is a fierce competition among telecommunicationscompanies Telecom market share has been occupied by large enterprises such as Viettel, Mobifone, VinaPhone, FPT, etc In order to expand the market, increasing the profits and number of customers, the companies should find additional investment opportunities abroad, looking for markets that are rich of potential opportunities and further development Some telecom companies in Vietnam have found new business opportunities by themselves while maintaining their domestic market share and expanding their business to the international markets such as FPT, VNPT, etc So far, by launching overseas projects, the total foreign investment of telecom enterprises in Vietnam has reached hundreds of millions USD Not only limiting the business in regional markets like Laos, Cambodia , many telecom enterprises in Vietnam are continuing to seek for business opportunities in Europe, America Searching new opportunities in the international market is a way to help strengthen business activities so that they can stand up and overcome the unstable periods of the economy and gradually assert themselves in the international arena The typical example for the Vietnamese company expanding its business tointernational market is Viettel Global Investment Joint-stock Company (Viettel Global), established under the Viettel Military Telecommunications Corporation After 10 years of non-stop investment activities, Viettel Global was ranked in the top 100 largest telecommunication brands in the world for the first time However, besides the successes achieved in foreign markets, Viettel Global has encountered many difficulties in penetrating foreign markets such as exchange rates fluctuation risk, technological difficulty when the world has shifted to 4G and 5G technologies, and the orientation for building product policies is slow while marketing has not been deep enough to enter so that the results of Viettel Global penetration activities are not high Based on the reality at Viettel Global, the author has chosen the topic to study intensively "International market penetration of Viettel Global Investment Joint-stock Company" in order to propose measures to promote the international market entry strategies of Viettel Global become more scientific and practical The objectives and missions of the thesis 2.1 The objectives of the thesis The thesis focuses on a number of theoretical and practical issues on international market penetration, evaluating these activities at the Viettel Global, and recommending solutions and recommendations to promote the activities of foreign markets entry inViettel Globalwhen the economic integration among countries are becoming more popular 2.2 The missions of the thesis - Systematizing theoretical issues of international market penetration - Analyzing and evaluating the current status of international market penetration inViettel Global, thereby drawing on the successes and limitations as well as the causes of these shortcomings - From the analysis of the causes of the remaining aspects, the author proposed solutions and recommendations to promote the international penetration activities inViettel Global Investment JSC Subject and the scope of the thesis 3.1 Subject of the thesis The subject focuses on a number of theoretical and practical issues of international market penetration for telecommunications services and enterprises Specifically, the actual selecting procedure of the target market, the penetrating methods and the implementation of marketing strategies 3.2 Scope of the thesis - Thesis content: Research topic is about the penetration of international market for telecommunication services of enterprises Specifically, it focuses on three main topics: target market selection, penetration methods decision and implementation of marketing activities - Scope: The project is being implemented in Viettel Global Investment JSC and the markets that the company has been investing in Asia, Africa and America - Research period: The research data were collected over years from 2011 to 2016 and try to propose solutions for the period of 2017-2020 Methodology of the research To achieve these above goals, the research methods acquired in this thesis are: - Method of secondary data collection: Internal data sources: Collecting reports on business results, market reports, market share of the company Besides, the data on the company's capacity profile, organizational structure, human resources, material facilities and financial situation are also considered External data telecommunications sources: business Gathering environment, information other about related the markets, telecommunications information through journals, books and related scientific works Monitoring information on telecom market fluctuations in foreign markets, changes in tax policy, exchange rates, etc Collecting information related to competitors from other countries such as England, Sweden, - Method of processing and analyzing secondary data: Statistical methods: From the secondary data collected from two sources inside and outside the company The author revises all the collected information, then evaluates the importance of the information to the research From that information, the author then produces statistics and presents them in Microsoft Word to serve the research later - Comparing method: Based on the market share of the telecommunications business enterprises collected by the author, by comparing these figures,the author can view the position of the enterprise on the target market From these data, the author will identify the main competitors of the business to be able to provide the suitable content for market penetration - Analytical method: This method is used in the whole process of the thesis to analyze and synthesize assessments of actual implementation of market penetration activities of the company for the period 2010 – 2015 - During the analysis process, based on a qualitative analysis, it helps to clarify the theoretical and practical implications of market penetration of the company, thus showing the results achieved and not achieved in penetrating the international market of Viettel Global Investment JSC Contributions of the thesis The thesis contributes to further clarification of the theoretical and practical basis of penetrating international markets in the telecommunications industry, giving an overview of the current status of this activity at Viettel Global Investment JSC (Viettel Global) in particular and Viettel Military Telecommunications Corporation in general The thesis presents a number of solutions with scientific basis and feasibility to promote market penetration for Viettel Global in the period 2017 - 2020 Thesis structure Apart from the Introduction and Conclusion, there are main parts of this thesis: Chapter 1: Literature review of the international market penetration in telecommunications business Chapter 2: The international market penetration activities in Viettel Global Investment JSC Chapter 3: Solutions for fostering the penetration of international market in Viettel Global JSC - In the future, in what direction will the target market change? - How does Viettel Global meet the demand of this market in terms of how often it changes? 3.3.1.4 Improving the quality of the products and services In the current international competitive environment, to attract customers, one of the important issues that Viettel needs to is to improve the quality and diversify its services  Improving service quality Improving the quality of service is reflected in two aspects: improving the quality of service, and improving the quality of service • Improving the technical quality of the service: Improving service quality is achieved through various measures, with the ultimate aim of providing customers with the best quality of service in terms of service access time, access speed, safety rate, service error rate (sound quality, transmitted image, lost contact rate ) This can be achieved through the modernization and network adaptation so that customers can establish the best quality contact, while customers in different areas have access to each types of services and communication easily In addition, Viettel should have detailed survey parameters to timely upgrade, expand and maintain the network, ensuring the supply to meet the demand, avoid congestion during peak hours • Improving customer service quality: Customer service quality is reflected in the following stages: - Pre-sales activities (marketing, advertising): This is the first step to create the image of Viettel in the eyes of customers Strengthening propaganda activities, especially the introduction of new services and additional services of Viettel - Sales/service provision activities: It is necessary to simplify administrative procedures, shorten service acceptance time, repair service time to ensure fast customer service and most convenient - After-sales/customer care: calculate and collect charges to ensure accurate, quick; troubleshooting: Intermediate stages in the mining process need to be reduced to restore service to the customer in the shortest time possible; troubleshooting: set up centers, hotlines, telephone numbers for customers  Diversification of services: 75 In the context of globalization of the economy, in order to maintain and expand the market abroad, Viettel must introduce a strategy of diversifying services to satisfy the information needs of customers Service diversification can be achieved through the application of new technologies and technical solutions that enable Viettel to provide more services to users For example, the introduction of digital exchanges can help businesses provide additional services such as alarms, call restriction, slider dialing, call recognition At the same time, Viettel also needs to deploy and implement more effective valueadded services to bring more convenience to users From there to expand the scope, users and service providers In addition, Viettel should take measures to stimulate and stimulate the needs of customers in rural areas to understand the convenience of different types of services and research and expand services in different regions This is through dealer networks, kiosks Specifically, Viettel can diversify services by implementing the following activities: - Studying and inquiring into market demands in order to devise policies to diversify the structure of products and services suitable to the corporation's production and business conditions in each stage of development - Boldly investing, purchasing more modern machinery and equipment, contributing to diversify the types of services while reducing costs for production of products and services - Changing the structure of products and services in accordance with the current needs of customers At the same time create a number of new services suggestive of demand Especially for value added services, corporations need to research to introduce new types of services 3.3.1.5 Introducing the flexible pricing policy According to Viettel Global's market penetration into the market in Chapter 2, although the policies on calling rates, text message rates and data tariff rates in Viettel Global are cheaper than competitors, I have not been flexible yet Price is a direct factor in the ability to consume services The optimum price is the price that maximizes the market demand and achieves the business goals Price is also an important factor determining the competitiveness of enterprises If other factors 76 are considered to be close to each other, lower-priced businesses will attract more customers to help them increase market share, increase profits, and increase sales and the position of the business on the market In the new phase of investment in foreign markets, the right determination of price policy plays a very important role in determining the existence and sustainability of viettel in new markets Developing flexible pricing policies Viettel should pay attention to the following issues: - Factors influencing prices: inputs, technological advances and supply-demand relationships in the market - The competitive situation in foreign markets, the impact of the trend of price fluctuations on the world market - Charges must be in line with the solvency of consumers and promote healthy competition To develop a reasonable tariff policy, Viettel may apply the following measures: - Determine cost policies for service business so as to draw up reasonable charge policies and reduce service expenses - Find out the market and suppliers of the best machinery and equipment and the most reasonable prices, try not to buy through intermediaries to reduce transportation costs, commission costs - Strengthen the relationship with domestic and foreign suppliers Thereby select the organization that offers reasonable price, optimal quality - Research and apply scientific and technical achievements to make use of available machines and invest in more machines to reduce the cost of procurement, reduce the cost of creating services, reduce costs 3.3.1.6 Establishing the widespread distributing channels In order to sell the products, it is necessary to set up a system of distribution channels, select markets and market research, and then propose policies to distribute products reasonably and effectively to meet the needs of customers row Establish a reasonable distribution channel, suitable for each type of products and services of the company, each segment of the market and different customers will shorten the connection time, ensuring the information Information on the service to be with customers fastest, thereby increasing the trust of customers about the prestige of the business Building a strategy of distribution of products and services will help Viettel in 77 the market to boost consumption of products, make the most of equipment capacity, get maximum profit To so Viettel should: Identify the sales channel components:  Direct channel: Build a direct channel down the line to the district level and business units, customer care and management agents, collaborators in the area  Agents: These are shops selling telecommunication services and have contracted with Viettel's network in the market The role of the dealer is focused on selling and incorporating image building The number of dealers as much as possible and unlimited quantity Direct sales staff: Sales and agency staff, point of sales, collaborators and direct sales to large customers in the area  Selling points: These are shops, telephone booths, small traders who want to sell products to Viettel's network in the market and sales agreements The role of the point of sale is to ensure coverage everywhere, creating maximum convenience for customers Quantity as much as possible, not limited  Contributors: These are agents who contract salesman with Viettel's network in the market and receive salary and selling fee Common orientation in each commune in the market will be one to two sales associates, collect and make other services  Direct sales staff: Sales staff and agents, sales, collaborators and direct sales to large customers in the area  Other sales channels such as online sales will grow as diverse Policy for each part of the sales channel: To establish an effective sales policy, Metfone should pay attention to the following points:  Define the location for each channel and the target customers to sell, so as to avoid overlapping in sales and customer care  Sales policy is always defined for a specific audience and improved sales effectiveness (such as: policy for collaborators, agent policies, selling points ) and follow-through channel development  Policy must be attractive and flexible for each stage and compete with competitors in the market  Policies must be unified and balanced to facilitate the development of channel members (eg, when agent policy is too high, developing collaborative purchasing is difficult, Large purchases led to large agents developing market control ) 78 3.3.1.7 Improving the customer services quality Customer service plays a very important role in creating product differentiation among telecoms enterprises and improving the competitiveness of enterprises This is also becoming increasingly indispensable for businesses in the service sector in general and especially in telecommunications services business in particular This activity is not only profitable for businesses but also brings benefits to customers when they enjoy the best quality of service and care In the modern selling point of view, customers are the focus for all business activities of the business towards Customers are the ones who decide the success or failure of business activities of enterprises, especially in the trend of boom of the world economy as now, customers show their position clearly in the upward development of the business Therefore, the care of customers in enterprises is now very interested According to a study, the cost of a business to attract a new customer is seven times the cost of keeping an old customer, the business has to spend a lot of time and effort to convince a customer Being satisfied with their competitors makes them switch to using the company's products The formula "10-1 = 0" also shows that there must be 10 more new customers to compensate for the loss of an old customer, losing an old customer means losing the opportunity to make a profit Therefore, for managers, the relationship with the big customer must be to maintain existing customers, make the current customers buy the product is the target of the company and then expand the market to attract more customers new This further underscores the importance of postsale customer care, which is a very effective way to promote the customer's use of the service Improving the post-sale policy is also the activity to promote attracting customers market in the future Especially for markets that Viettel just penetrated Careful service will be a solid support for customers who use the service will continue to use the services of Viettel Based on the list of customers who have used the company's products and services (using corporate packages), employees need to classify customers according to their level of loyalty Suitable for each level of intimacy) For loyal customers, customers who use only Viettel services, the company should have more incentives for them, try to meet all their needs and inquiries about the service They should be listed as "special customers" as customers "gold", "silver", 79 "diamond" These are the customers will receive the caring attention and receive many other incentives that Viettel special for this class of customers Letter of thanks: is one of the best care practices In the holidays, Tet or National Day Viettel should have letters to thank customers (customers "gold, silver, diamond" ) or thank letter through message to the guests Customers are using the service of Viettel The letter was written to thank customers for their choice of service This will be noticed by customers, better performance because customers feel they are respected whether they are just a customer does not know Customer service and after-sales service are indispensable in telecommunication service companies today, but in order to provide more regular and regular care to customers, Viettel should have a budget The book is designed for customer care activities such as giving presents on New Year's Day, company anniversary, customer's birthday, customer conferences, getting information useful for the work of customers, taking the initiative to inform customers They will be very grateful and pleased to cooperate with the company Customers will have no reason to leave a company with such thoughtful customer care 3.3.1.8 Fostering the development and applying new technology 4G LTE technology is trending around the world and Viettel Global is not in this trend, in new markets penetration Viettel Global needed to deploy immediately 4G network instead of deploying 2G and 3G, for the market The school has deployed a roadmap to upgrade technology from 2G, 3G to 4G With the explosion of technology, the transmission network needs to meet enough bandwidth for the purpose of transmitting traffic at higher speeds, improving the speed of broadband access Accordingly, Viettel Global needs to upgrade the transmission network in the market to meet the increasing demand for bandwidth Specifically, it is necessary to migrate from SDH to Metro/IP/MPLS Viettel Global should promote the application of information technology solutions in management, production and business activities to optimize resources and tighten control of networks and services 3.3.1.9 Resolving the problems of electrical grid The solution to solve grid problems for the operation of BTS stations is very important and necessary in the penetration of Viettel Global markets It is necessary to 80 develop automated systems for running an explosive or power conversion system from solar energy Investing in the use of solar PV systems to supply electricity to BTS substations for the current gasoline generator in areas without electricity 3.3.1.10 Designing the efficient promotion and trading support programs • Promoting advertising and introducing products and services In addition to the use of advertising on the mass media such as newspapers, magazines, television, radio, Viettel also need to pay attention to the advertising at the post office system And our agents across the country through the means such as posters, posters, brochures, banners, beacons In addition, Viettel should use the website more efficiently In the world economic integration, working, living or traveling in other countries is normal Therefore, it is necessary to build a website in English language to facilitate foreigners seeking information In addition, Viettel needs to focus on designing and updating the website more often In the days of information technology, Internet advertising and website business is the fastest, most effective and least expensive advertising method A professional website can help businesses improve their image, improve the efficiency of dealing with customers and leave a mark for anyone (from customers, visitors to reporters) access to that • Improve customer service Customers are directly consuming products, services and generating revenue for enterprises; The higher the frequency and the more productive consumers are, the greater the revenue Therefore, caring for and encouraging customers in a timely manner is extremely necessary In order to take good care of our customers, apart from the most basic of services, we also have to other good things such as creating a good impression and attracting customers' attention to products services of the corporation In order to so, the leaders of the units need to regularly open a comment box to capture and process the feedback from customers, to build a polite and considerate style when dealing with customers To promptly explain and explain the complaints of customers In conclusion, it is necessary to keep up the business motto “Giving pleasure to both comers and leavers” • Actively organize and participate in customer conferences 81 Successful customer conferences help businesses to compete confidently in the marketplace, aiming to foster long-term customer loyalty and attract more potential customers to the service products of your business This is the occasion to tighten the relationship between customers and businesses, thereby strengthening the belief of customers about the services that Viettel provides Therefore, Viettel must hold annual customer conference to convey new messages to customers, while listening directly to the honest feedback from the customer However, for customers to come to this type of dialogue is an art in the marketing strategy of each business Human psychology in general and customers in particular will be very interested in the customer conference where there are opportunities or benefits for them as the possession of valuable prizes or promotions attractive from the vendor side Therefore, Viettel needs to understand this two-way relationship to be able to match the psychology and tastes of customers, from which the new customer conference is highly effective In addition, before the customer conference, Viettel needs to know the information related to customers through customer management system so that employees - people directly dealing with customers can build the content dialogue with customers Normally, attendees are very passive so Viettel can organize games with prizes such as logo jigsaw puzzles, package pictures, etc This activity will be very attractive to participants and can transmit the message of the business in a lively and attractive 3.3.2 Solutions from the government State support to Vietnamese enterprises in general and telecommunication enterprises in particular in the process of entering the foreign market is indispensable But supporting how to bring real business benefits is not easy to implement Many people think that supporting the business is providing capital and facilities for them That's right but not enough because what businesses really need is government support by creating a healthy economic environment, with concrete and effective policies to help businesses reach the bottom line Desire to increase, competitiveness with foreign competitors Participating in bilateral, regional and multilateral trade agreements, expanding market access for telecommunication products to international markets Strengthen the development of long-term cooperation at the central and provincial levels between Vietnam and other countries, signing bilateral trade agreements (especially with countries with information and telecommunication 82 infrastructure conditions) low circulation), maintain stable trade relations will create favorable environment for investment in production and business, limit the passive status as the last time In particular, improved trade relations between Vietnam and other countries provide opportunities for enterprises to increase direct sales with their foreign counterparts, thereby improving the efficiency of their operations Doing business in foreign markets The Government negotiates to ease non-tariff barriers to unify sanitation standards, technical standards, mutual recognition of technical standards and labor safety standards to "pave the way for" Enterprises export goods and services in a convenient way Establishing Viet Nam Trade Representative offices in Viettel countries, especially in markets where Viettel Global has been investing These offices serve as a bridge between domestic and foreign enterprises and have the important function of gathering market information and catching up with changes in consumer demand and taste in the country Promoting the role of trade promotion of commercial counselors in other countries in promoting Viettel brand, seeking and providing market information for enterprises Promoting trade promotion, promoting and step by step affirm the brand name of Viettel Group in the world telecommunication market Organizing fairs and exhibitions on telecommunications and information technology with international friends Organizing trade missions of the Government and associations to work with the foreign telecom market, thereby establishing new relationships and visiting the production and business of telecommunications services in Vietnam In addition, the Ministry of Defense and related ministries should facilitate favorable conditions for Viettel Global to open representative offices abroad, to increase direct access to foreign consumers consolidate and develop the market, strengthen economic and trade relations with foreign partners The State should create a stable and tight legal framework in order to create maximum favorable conditions for offshore investment activities of enterprises First of all, it is necessary to revise the system of laws, adjust regulations which are no longer in line with international practices or are not transparent, especially with the provisions of the Law on Commerce and the Law on Investment The State should continue to 83 promote administrative reform in the field of trade in the direction of abolishing the investment procedures, import and export troubles 84 CONCLUSION The thesis of "International market penetration of Viettel Global Investment JSC" has focused on studying systematically thebasic theoretical regarding theforeign market entry activities of Viettel Global so that it can be used as a premise for the promotion of investment and business in the international markets At the same time, the study considered the topic in real conditions at Viettel Global including analyzing the factors affecting the target market, penetration method and marketing strategy, in order to identify the positive and negative sides of the issue After that, some feasible solutions based on Viettel's objectives and orientation are proposed to combine the efforts of the company with the Government in order for the improvement of international market entry activity in Viettel Global It can be said that foreign markets are always fertile land for businesses in Vietnam in general and telecommunications businesses in particular Especially in the current condition of globalization, the competitive environment becomes intensive and the domestic market is in a "saturated" stage Consequently, the option of expanding the market is considered to be the right path and the most suitable point of view However, the path to these markets is not simple because of the invisible and tangible barriers of nations For Viettel Global Investment JSC, the opportunities are still ahead but also many challenges and risks are waiting In order to survive and growth in foreign markets, Viettel needs to be active in business, always explore and be creative to be in line with the trend and market changes In the next few years, people mentioned Viettel as a "giants" not only in the telecommunications industry in Vietnam but also in Indochina Viettel subscribers can move freely between the three countries without concerning about the costs they pay There is an expectation that Viettel would change the picture of technology and telecommunications industry among Indochina countries Due to the limitations in capacity, experience and time and the fact that most of the information resources in Viettel are mainly confidential documents which are not allowed to be publicized, the research results are also limited and cannot as perfect as the author desired Therefore, if there is more favorable condition, further research should be conducted to promote and improve the efficiency of the overseas investment activities of Viettel Global, thereby, drawing lessons for other companies to follow and to contribute effectively to the national economy and to raise the Vietnam's position in the international market 85 REFERENCES A Assoc Prof Dr Vu Tri Dung, Prof Dr Tran Minh Dao, International Marketing, National Economics University Publisher, 2010, p.6 B Phan Minh, Viettel success due to Laos, The Vietnam Post News, Issue 48, 2011 C Master Nguyen Minh Phuong, Le Nhu Quynh, Telecommunications investment in Laos: experiences from the success of Viettel, The economy and forecast review, Issue 9, 2013 D Ph.D Nguyen Van Thanh, International Financial Management, Statistics Publisher, 2004, p.24 E Summary from: Public Announcement, Viettel website: http://www.viettel.com.vn/Thong_cao_bao_chi.html, http://viettelglobal.vn/thong-caobao-chi.html F Thanh Thuy, The journey of bringing Vietnamese Brands to the world, The Government e-paper, 2014, http://baodientu.chinhphu.vn/Thi-truong/Hanh-trinh-duathuong-hieu-Viet-ra-the-gioi/192079.vgp, 02/2014 G Viettel website, VIETTEL CAMBODIA official opens Metfone to commit bringing telecommunications to everyone, Viettel website, 2009, http://www.viettel.com.vn/332-1-1001-VIETTEL-CAMBODIA-chinh-thuc-khai-truong-mang-Metfone-cung-camket-mang-dich-vu-vien-thong-toi-moi-nguoi.html, 06/2013 H Chau Anh, Earning enormous profits, Viettel “overpasses” VNPT, VTC News, 2012, http://vtc.vn/1-360579/kinh-te/dat-doanh-thu-khung-viettel-vuot-mat-vnpt.htm, 06/2013 I Introduction of Happy Zone package, Vietteltelecom website, http://vietteltelecom.vn/di-dong/goi-happy-zone-gia-cuoc-thap-nhat/gioi-thieu-goicuoc-8.html, 07/2013 J Ha Thanh, Viettel officially opens business in Mozambique, Dan Tri News, 2012, http://dantri.com.vn/suc-manh-so/viettel-chinh-thuc-kinh-doanh-tai-mozambique596357.htm, 05/2013 K Viettel_website, Viettel Millitary Telecommunications Corporation website, 2015, http://viettel.com.vn/3-32-1-2449-Viettel-2014-Tang-truong-ngoan-muc.html, 01/2015 L Summaryfrom the website ofViettel Group, Vietteltelecom website, http://3g.vietteltelecom.vn/Tin-tuc/Viettel-nam-trong-10-doanh-nghiep-lon-nhat-VietNam.html, 07/2013 86 TABLES OF DATA Table 1: Comparison of international market penetration strategies Strategies Licensing Advantages Disadvantages - Low risk rate - Losing control of technology - Low development costs - The licensed enterprise can become a - Overcoming barriers to trade competitor - The "know-how" is shared - Licensing time is limited Franchising Joint Venture - Low development costs - Lack of quality control - The risk rate is not high - Difficult to coordinate globally - Share development costs - Large differences in management culture - Share the risk ratio - No strict control of technology - Leverage the resources of both - Sharing experience, knowledge, know-how businesses - A partner can become a competitor later - Understand the market - Requires more investment in resources, - Better apply the skills Direct Investment - Not sharing the know-how capital, and commitment - Difficulties in management of local resources - The risk ratio is higher than other methods Table 2: Capital structure of market companies Market Capital until 2015 Ownership rate Joint venture Total Million USD Viettel Viettel Cambodia 44,88 90% 10% 100% Star Telecom 59,47 49% 51% 100% 25 100% Natcom 98,33 60% 40% 100% Movitel 0,5 70% 30% 100% Viettel Timor Leste 0,5 100% Viettel Cameroun 0,04 70% Viettel Tanzania 100% Viettel Burundi 0,003 85% Total 233,72 Viettel Overseas partner 100% 100% 30% 100% 100% 15% 100% Table 3: The Financial indicators of Viettel Global from 2011 - 2015 87 Indicators Revenue (USD) 2011 2012 2013 2014 2015 541,118,819 757,332,036 992,753,349 308,770,531 524,354,785 578,124,120 726,214,748 769,903,660 289,958,296 411,982,615 478,617,845 585,902,407 712,161,139 18,812,235 112,372,170 99,506,274 140,312,341 57,742,521 28,668,760 105,783,503 172,142,270 283,680,624 324,367,557 35% 38% 31% 32% 30% 6,2 11 13 16,5 9,500 12,000 15,864 18,600 27,774 39,000 60,000 77,370 96,660 125,782 1,211,528,584 1,322,828,213 Consolidated revenue (USD) Consolidated costs (USD) Consolidated before tax profits (USD) Accumulating consolidated profits (USD) EBITDA Margin Accumulating subscribers (million) Number of station (2G+3G) Fiber optic cable (km) (Source: VTG’s 2015 Annual Report) Table 4: Economic indicators in recent years Year 2012 Total GDP (trillion USD) GDP growth rate (%) GDP per person (USD) Inflation rate 2013 2014 2015 2016 115,93 135,54 155,82 171,39 180,82 6,4 6,2 5,2 5,4 5,6 1.333,58 1.543,03 1,755,27 1,910,51 2,028,00 8,9 18,7 9,1 6,6 6,2 Table 5: The Cambodian Telecom Market 2005 Population Country (million people) GDP/person/y Total subscriber ear (US$) (1000) Telephone density/100 people CARG (%) (2000-2005) Singapore 4,33 26,835 4,384 101,38 9,8 Brunei 0,37 17,632 205 56,26 21,3 Malaysia 26,00 5,040 19,545 75,17 30,7 Thailand 62,02 2,577 16,158 26,60 39,5 Indonesia 222,78 1,259 46,910 21,06 66,5 Philippines 83,06 1,159 32,810 39,50 38,4 88 Population Country (million people) Vietnam GDP/person/y Total subscriber ear (US$) (1000) Telephone density/100 people CARG (%) (2000-2005) 84,24 640 9,000 10,68 62,7 5,92 463 638,2 10,77 119 Cambodia 14,07 375 1,062 7,55 52,1 Myanmar 54,00 97 183 0,34 68,8 Laos 89 ... 2: INTERNATIONAL MARKET PENETRATION ACTIVITIES IN VIETTEL GLOBAL INVESTMENT JSC 2.1 Introduction of Viettel Global Investment JSC 2.1.1 The establishment and development of Viettel Global Investment. .. intensively "International market penetration of Viettel Global Investment Joint-stock Company" in order to propose measures to promote the international market entry strategies of Viettel Global become... overview of international market penetration 12 1.2.1 Definitions of international market penetration 12 1.2.2 Roles of international market penetration 13 1.3 The matter and requirement of