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Promoting trade promotion at vietnam association of seafood exporters and producers (vasep)

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ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION COURSE Topic: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Producers (Vasep)" Instuctors: Dao Hoang Tuan, PhD Student name: Nguyen Viet Nam Student ID: 5073106060 Class: KTĐNCLC7B Ha Noi, June 2020 ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION COURSE Topic: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Producers (Vasep)" Instuctors: Dao Hoang Tuan, PhD Student name: Nguyen Viet Nam Student ID: 5073106060 Class: KTĐNCLC7B Ha Noi, June 2020 OPENING The urgency of the topic In the current trend of globalization and international economic integration of Vietnam, businesses have difficulties in accessing information, customers, distribution market, goods, business opportunities Other, in the global race, there are many risks because they not understand the law, the commercial environment So in addition to fully equipped with the necessary information and skills, businesses need support Directly from the government or the organization trade promotion to overcome difficulties and achieve long-term goals Businesses want to find markets, promote product introduction, find partners, customers and promote product sales, trade promotion is the only way for businesses to achieve those goals Trade promotion activities (trade promotion) always hold an important position for domestic consumption and export, contributing to economic economic transformation towards industrialization and modernization, competitiveness and efficiency, business results of enterprises solve the immediate difficulties Trade promotion helps businesses respond quickly to market changes and capture market trends in a timely manner to make their business more efficient Trade promotion is a bridge to bring businesses closer to customers, to the market It can be seen that Vietnam's economy is increasingly developing with open market policies, limiting export and import tariff barriers Therefore, competition among businesses in Vietnam is becoming more and more fierce Domestic enterprises are mainly small and medium-sized enterprises, so they are limited by limited capital, human resources, professional skills and weak management Therefore, Vietnamese enterprises must have appropriate longterm business strategies to survive and develop in the market Marketing in general and trade promotion in particular are effective tools of competition for businesses today However, in reality, Vietnamese enterprises or governmental organizations have not paid enough attention and invested properly to build an effective trade promotion policy Vietnam Association of Seafood Exporters and Producers (VASEP) is an association established by the state and businesses to support businesses to promote trade, organize trade promotion activities, etc Through the process of observation and research at the Association, I realize that there are still limitations in the trade promotion activities organized by the Association that can be seen through the issue of costs, capital, and effectiveness fruit In addition, other promotion tools, though they are available, have not been paid attention and have not been effective Therefore, the Vietnam Association of Seafood Exporters and Producers (VASEP) needs solutions and policies to promote trade promotion activities more effectively, in order to improve the competitiveness of businesses Vietnamese enterprises on the market From practical needs, I chose the research topic: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Producers (Vasep)" as my project Research purposes  General purpose Developing trade promotion policies of the Vietnam Association of Seafood Exporters and Producers (VASEP)  Purpose of detailed study With the thesis topic: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Producers (Vasep)" in the period of 2017 - 2019, the specific objectives include: Firstly, Systematize the theoretical basis of trade promotion and develop trade promotion activities in Vietnam Association of Seafood Exporters and Producers (VASEP) Secondly, Clarify the current situation of trade promotion activities at the Vietnam Association of Seafood Exporters and Producers (VASEP) From that point out the remaining limits in the trade promotion policies of the Association Thirdly, Proposing a number of trade promotion solutions at Vietnam Association of Seafood Exporters and Producers (VASEP) Research scope  Research subjects The study of trade promotion activities and development of trade promotion activities at Vietnam Association of Seafood Exporters and Producers (VASEP)  Study time Collect data and results related to trade promotion activities held in the latest years 2017-2019; Proposed solution until 2021  Research space Domestic and foreign trade promotion activities organized by Vietnam Association of Seafood Exporters and Producers (VASEP) Research Methods 4.1 Methodology Method of dialectical materialism and historical materialism From the study of theoretical systems, theses, recent reports to comparative analysis, refining the necessary information from the above documents Method of analyzing the system of synthesizing, comparing and assessing the status of trade promotion activities at Vietnam Association of Seafood Exporters and Producers (VASEP) 4.2 Specific research methods  Secondary data collection method Because external data sources are abundant and diverse, the information is sometimes inaccurate So to get high quality information, I follow this process: Identify infomation Needed for Reaserch Hình 1.1 Data collection process The secondary data included: - The data of the Association's trade promotion activities for years from 2017 to 2019 - Data on investment sources as well as money sources provided for trade promotion activities of the Association - Performance of competitors Performance of some competitors was collected through searching and aggregating information on media such as newspapers, magazines, internet  Data analysis method Using a number of economic analysis methods learned such as: data analysis method, statistical method, comparison of collected data so as to have appropriate results to analyze and assess the situation of the company Essay structure In addition to the thank you, the table of contents and the appendix, the structure of the graduation thesis with the theme: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Producers (Vasep)" consists of chapters: Chapter I: Theoretical foundations of trade promotion activities Chapter II: Actual situation of trade promotion activities at Vietnam Association of Seafood Exporters and Producers (Vasep) Chapter III: Proposing some solutions to promote trade promotion at Vietnam Association of Seafood Exporters and Producers (Vasep) CHAPTER I THEORETICAL BACKGROUND OF TRADE PROMOTION ACTIVITIES 1.1 The concept and role of trade promotion 1.1.1 Concept of trade promotion According to the Ho Chi Minh City Institute of Economic and Trade: “Trade promotion is the essential support activities that impact (directly or indirectly) on the process of producing, distributing, circulating goods or providing services It aims to promote and seek opportunities to buy and sell goods and provide services to increase the efficiency of trade activities and to meet the increasing trade needs of the society '' According to Eastern European economists' view: Trade promotion is a tool, a trade policy aimed at motivating and influencing the orientation between the seller and the buyer, a form of trade activity Communication to reach the target of attracting attention and pointing out the benefits of potential customers about goods and services According to the Commercial Business Administration curriculum (Faculty of Commerce - National Economics University): "Trade promotion is an activity to promote and seek opportunities to buy and sell goods and provide services including promotion, commercial advertising, display and introduction of goods, services and trade fairs " The concept of trade promotion is to a certain extent understood as trade development, but trade promotion is often used when the business environment is stable and healthy, when countries have gone through the period of replacement production Exports, began to shift to export-oriented production The concept of pharmaceutical trade development is used when countries have gone through the early stage of "export-oriented production", starting the period of "industrialization." and boost export” This concept is particularly suitable in the context of international integration, richness and diversity of foreign economic 1.1.2 The role of trade promotion activities Trade promotion is the bridge between businesses and consumers, customers, or between businesses Trade promotion is the way businesses use to bring the company's image, product capacity, and reputation to create consumer interest and attract them This leads to the need to buy, own the product, used the item as well as the type of service Demand for products of consumers is always changing over time, never fixed, so trade promotion forms contribute to changes in consumption structure Help find, awaken the hidden needs of customers, stimulated consumers willing to pay for new products launched Trade promotion also supports sales activities, making the sale of businesses become easier and more dynamic Becoming a channel to bring businesses' goods into a reasonable and beneficial distribution chain with businesses, thereby reducing costs and achieving high sales Trade promotion activities in the market are extremely diverse with typical activities such as advertising, promotions, fairs, trade shows, displays, product launches, seminars and associations Meeting customers, visiting surveying, analyzing and searching markets, providing information, consulting for businesses Therefore, it is extremely important for enterprises to realize the importance of trade promotion to enhance its position in a market economy 1.2 Content of the form of trade promotion 1.2.1.1 Form of trade promotion a Commercial advertising concept According to Wikipedia: Commercial advertising is a trade promotion activity of traders to introduce to customers about their goods and service trading activities According to Prof.Philip Kotler: Advertising is a form of non-direct communication, conducted through paid media and clearly identifying the source of funding The promotional advertising products include visual information, voice, action, light containing commercial advertising content b Means of commercial advertising Businesses will base on the characteristics of goods, products, consumer needs, advertising projects, business goals Since then choose the commercial advertising method with the highest efficiency In the current era, there are many advertising methods such as through the mass media, internet, radio, television, newspapers, hoarding Thereby has classified the means of advertising into forms, including:  The mass media;  The news media;  Types of publications;  Boards, signs, banners, panels, posters, stationary objects, vehicles or other moving objects;  Other commercial advertising Figure 2: The chart shows the number of business booths participating in Vietfish 2018 Vietfish Fair can be considered as a central symbol of domestic trade promotion activities with a very large number of businesses involved Comparing the Vietfish fair of 2018 with the Vietfish fair of 2017, we can see a clear growth in the number of businesses, booths, visitors participating in the fair 2018 also marks a new milestone when Vietfish Fair has the participation of foreign businesses for the first time when there are 15 booths participating in the fair are entrepreneurs from 14 neighboring countries In particular, businesses also have the opportunity to interact, exchange experiences from experts and successful entrepreneurs who go ahead 33 Vietfish 2018 has become an opportunity for businesses to promote high quality products such as catfish, shrimp, tuna, squid, fresh seafood, frozen seafood, mixed products, dry food, fish sauce and all kinds of machinery, equipment and equipment for processing and preserving aquatic products to invent inventions to support aquaculture and seafood processing Besides, the success of the fair after surpassing the 10,000 visitors the fair exceeded 5.8% of the fair's visitors in 2017 Within the framework of VIETFISH 2018 Fair, VASEP Association is expected to organize 09 specialized seminars with hot and current topics of the fisheries industry such as: Sustainable aquaculture, the trend of seafood supply and demand, The impact of trade war on fisheries, sustainable labor use, social insurance, IUU fishing, climate change, research and modern technology applications This will be an opportunity for stakeholders to update the industry's latest information, seafood consumption trends in the world, search for research partners, apply research in production, enterprises plan development strategies The seminar was presented by famous experts from Trømso University (Norway), Matis (Iceland), Stirling University (UK), Syntesa (Denmark) and Kotali (Norway), Nha Trang University, Dow Chemical Pacific (Singapore) Pte Ltd, HALAL Certification Office (HCA), Government Office for Religious Affairs, D-Fish, ILO Vietnam All seminars are free to attend 34 2.2.3 Vietfish 2019 Following the success of Vietfish 2018 Fair with the message "Asia's Home of Seafood - The Seafood of Asia", the Vietnam Association of Seafood Exporters and Producers (VASEP) has continued to organize an exhibition fair 21st International seafood (Vietfish 2019) Vietfish 2019 takes place in the context of Vietnam's seafood market is in a period of great development When the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially came into effect with Vietnam in early January, it opened a great opportunity for businesses to develop when the tariff barriers of fishery products have be removed With two major agreements, the FTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), it shows that 2019 is a golden time for Vietnam's seafood industry Figure 3: Vietfish 2019 opening ceremony 35 Figure 4: Stalls of Vietfish Fair 2019 The fair took place with the participation of 376 booths from 14 countries and territories such as Korea, Japan, Germany, Singapore, China, Taiwan (China) With 254 applications exhibitors showed that the number of participants in the fair compared to 2018 increased by nearly 9%.with many culinary activities taking place for visitors, customers to buy The Vietfish Fair 2019 has passed the number of visitors with 16,000 visitors compared to 2018 with 10480 visitors, the fair held in 2019 has increased by 6.04% In addition to the fair, the Vietnam Association of Seafood Exporters and Producers (VASEP) has organized six conferences to work with foreign experts to solve outstanding issues in the production seafood export There are also more forums to create prospects for developing cooperative relations in the field of fisheries with Southeast Asian countries 2.3 Some limitations are still encountered in the Association's trade promotion activities (VASEP)  The number of enterprises involved in trade promotion activities is still small 36 It can be seen that in national trade promotion activities held in Asian and European countries, the number of business units participating in trade promotion activities is still low The cause, the state budget investment, financial support for businesses involved in trade promotion activities is still limited  The size of the event being held is still small The scale of the organized trade fairs is still small when the amount of money paid for by the state budget or enterprises spontaneously closes from VND billion to VND 10 billion Given the small size of trade promotion programs, it may not be as effective as trade promotion programs organized by major countries The reason, due to the main funding for organizing a trade promotion program, is often from the state budget, but it can be seen that the state budget provided to organize activities remains limited with limited procedures  The number of foreign businesses participating in the event remains low and limited The number of businesses participating in trade promotion events is still limited It was not until the beginning of 2018 that the growth in the number of businesses participating in trade fairs and seminars on trade promotion of fishery products was not seen before, but before 2018, there was almost no number of businesses and water pavilions As a result, it restricts the exchange of information on trade and aquatic products that are likely to disappear in the country The reason, the state or leading ministries and agencies still have not many policies to attract foreign enterprises creates a big barrier for the participation of enterprises 37 CHAPTER III PROPOSING A NUMBER OF STRENGTHENING TRADE PROMOTIONS AT THE EXPORT AND PROCESSING ASSOCIATION (VASEP) 3.3 Some solutions and future orientations of the Association (VASEP) 3.3.1 Orientation of activities of Vietnam Association of Seafood Exporters and Producers (Vasep)  Promote the scale of trade promotion activities Promote the scale of trade promotion activities by injecting additional state budget into trade promotion organizations, seeking funding sources, calling businesses to contribute development development activities dynamic The state of organizational activities has policies to promote domestic businesses, calling on foreign businesses to create an environment with few barriers to facilitate trade and trade  Agreement on cooperation with a number of prestigious organizations in the world in the fields of engineering, marketing, training, conservation and sustainable development Businesses of organizations must learn to learn the technical fields from which to create quality products to consumers Besides, training qualified human resources to help develop more in stages such as organization, meeting and conferences Preserving the key core values of the fisheries sector with abundant resources, the protection and conservation of those gold values has become indispensable Not only must it keep the economic development in parallel but must accompany development in the future 38 Some typical organizations: (CBI (Netherlands), MARKET (USA), FIP Project of Green Crab Kien Giang (WWF and NFI), project to develop standards for Southeast Asian shrimp (USA)…  Performing a good role as a bridge to organize and introduce member companies to meet and cooperate with many domestic and foreign partners Vietnam Association of Seafood Exporters and Producers (VASEP) continues to act as a bridge between the state and fisheries enterprises to timely have policies and programs to develop and promote businesses seafood goes up In addition, the Association has also become a bridge for seafood businesses with foreign partners with programs, fairs, conferences and forums on promoting trade in fisheries Bringing the products of businesses closer to the consumer end of production and sales Some typical activities are: (Working with Japanese experts' delegation on JCM project "F-gas destruction model in Vietnam"; Working with Walmart on labor issues; Participating in EU-VN Workshop developing trade and Sustainable shrimp production in Belgium, cooperating with Embassy of Indonesia in organizing the Forum "Prospects of Cooperation in Vietnam Indonesia TS", )  Establishing relationships with many foreign organizations and businesses in key markets such as the US, Europe, Japan, Korea, China, Australia and the region, taking advantage of the support and support to deliver market development, information sharing and trade disputes issues, technical barriers… Establishing relationships with large organizations and businesses around the world in key markets such as the US, Europe, Japan, Korea, China and surrounding areas is a necessity in the moment Vietnam market is on the rise 39 With the major agreements signed with the FTA or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), it has opened up many opportunities for businesses to accelerate development in the production and sales race In addition, the establishment of relationships also brings the share of technology and technology of the countries leading from there to create high-quality goods and goods to increase the value of the product It also solves trade disputes that take place between countries, with the protection of large organizations   International cooperation Continued cooperation with NFI (USA) in antidumping cases and catfish inspection program  Program to improve the green crab fishery in Kien Giang (FIP project) and expand the FIP for red crabs  Collaborate with Miss Australia's DTTS to propagate TSVN and update information and regulations in this market  Enhancing cooperation with the Korean Association of Phytosanitary (KFTA)  Cooperating with ILO VN, VCCI for programs on CRS, Labor  Collaborate with Vietnam Embassy in India, Indian Fisheries Association in implementing B2B program in India 3.3.2 Solutions to promote trade promotion activities at the Vietnam Association of Seafood Exporters and Producers (Vasep) 3.3.2.1 Completing management policies, encouraging trade promotion activities ` Like all other economic activities, in order to develop trade promotion activities, meeting the task requirements of the immediate 10 years, our Government needs to have uniform legal documents defining the organization 40 and functions , tasks, management, content management on trade promotion activities There is a need for more comprehensive measures to improve the management of trade promotion activities It goes hand in hand with the amendment of the Commercial Law, especially when joining international economic organizations Management concepts and systems should conform to international practices Before the request to encourage all economic sectors to participate in promoting trade promotion activities, according to a general orientation of the economy, another requirement posed as a sufficient condition when establishing measures to perfect the trade promotion system , that is the liberalization of trade promotion activities State management must be based on a uniform legal system Regulatory measures will be through planning, planning, financing, etc The time has come to apply for registration of operations, and introduce the form of operating licenses So far, the form of overseas trade fairs still requires a license, so the forms of advertising The liberalization of trade promotion activities, methods of management and inspection need to be applied immediately when drafting ordinances on trade fair, advertisement activities and amended Trade Law 3.3.2.2 Building a budget source for trade promotion Although trade promotion activities are very wide and undertaken by many economic sectors, the infrastructure of the trade promotion system must be undertaken by the State Especially in the early stages of industrialization and modernization of the country This is completely consistent with the objective laws of the market economy Budget sources are allocated as economic non-business expenses, special economic activities to build infrastructure, information, even for trade promotion On the other hand, funding sources can be established such as export reward funds deducted from export taxes and so on The funds and budget 41 resources will be managed through the focal points at ministerial level, or Ministry of Planning and Investment and Ministry of Finance Fund usage regime will be regulated through inter-ministerial circulars In addition, businesses need to create support funds to the state budget or can stand on their own through independent NGOs, typically the Processing Association and Vietnam Seafood Export (VASEP) 3.3.2.2 Supplying information and research for trade promotion activities The necessary information to serve trade promotion activities such as: ¬ Information about domestic and foreign investment is important for businesses, because domestic and foreign investment directly contributes to the expansion of domestic production, the amount of goods produced is more and more diversified abundance of types, quality is raised, costs reduced due to technical improvements, gradually meet the requirements of foreign markets The ability to sell in foreign markets will increase Information on product quality, medical standards, food safety and environment, compliance with the requirements of international standards Information about infrastructure supporting exports such as currency markets, banking systems, export credits, international shipping, export insurance, international payment systems and payment methods maths Information on trade practices, consumer psychology preferences and the laws of foreign markets Regulations on management of import and export business activities of foreign countries.Thông tin đánh giá, dự báo biến động giá thị trường nước ngoài, biến động tỷ giá hối đoái Information on equipment and technology to help businesses in renewing equipment and technology to improve product quality 42 Information on trade promotion forms (such as advertising, fairs, exhibitions, market surveys, etc.) Information on the Government's export incentive policies such as information on the forms of freight subsidies, subsidies or loans to boost exports, with priority policies for enterprises entering new markets and export new products Information on the development of e-commerce allows businesses to conduct business around the world, improve the competitiveness of businesses, shorten the supply cycle of goods and services, reduced spending costs, price The state's interest in and sponsorship of export promotion information activities is necessary and many countries have also done, considering this as export support and assistance recognized by countries in the process international economic integration Trade information in general and information for export promotion are important infrastructure for promoting exports and improving the competitiveness of enterprises Enterprises must pay attention to investing in information technology infrastructure, using all forms of information provision to improve the ability to process and receive information 3.3.2.2 Some of the other solutions  Increase the application of science and technology Information technology has turned many fields of social life upside down The same goes for trade promotion Advertising companies, fairs, information agencies are always confronted with the rapid change in information technology Therefore, the need to develop a Trade Information Development Fund model will operate under the motto that the State and people build together The State supports commercial information development projects to develop and research information needs of enterprises to provide free 43 information and support In addition to adequate technology investment for trade promotion activities, it is necessary to ensure the quality of information products, store information and store development, to achieve high efficiency in trade promotion  Strengthen the help of authorities The variety of export support agencies sometimes leads to a overlap of functions and tasks, leading to the ineffective operation of agencies, so the role of Trade Promotion Department is very important Coordination, binding agencies operating in the direction of a common strategy is the main function of Trade Promotion Department, absolutely not specific operational activities Because specific operational activities must allow agencies of all economic sectors to participate in an equal game The functions and contents of trade promotion activities at micro level need to be promoted include: Dialogue between the Government and businesses Assess the export potential of businesses Preparing, designing and developing products Packing Quality standards and inspection Trade information Directory of businesses Publications about the country and the market Trade delegations Trade show fair Human resource development Through the demand survey, promotion organizations need to support businesses in services such as: Searching for inputs and outputs for businesses Marketing consulting for businesses 44 Business advice Advertising help Access to funding sources Access to business opportunities Advice on standard contract Assisting in market disputes  Reinforcing the help of advisory councils Currently, due to difficulties in establishing communication channels between the Trade Promotion Organization and the exporting enterprises, exporters not trust the Trade Promotion Organization's ability to support activities their export, and a number of other causes The above situation can be effectively overcome through the establishment of an advisory council composed of selected members from exporters Advisory councils are set up to deal with issues related to a specific product group or to consider a functional area that affects export performance This Council, together with Trade Promotion Organization, will study arising issues and recommend solutions to Government officials and Agencies This Council can also act as Advisory group to the Trade Promotion Organization on common issues  Support businesses to expand markets In order to survive, compete and thrive in the current conditions, international business enterprises need to know and understand the market as well as expand the market Businesses actively seek partners through seminars, field trips with the help of ministries and industries acting as organizers, mistakenly connecting future benefits 45 CONCLUSION Through internships at Vietnam Association of Seafood Exporters and Producers (VASEP) and learn about trade promotion activities I realize that the VASEP Association is a bridge and a solid support for seafood businesses in the country Become a place to connect consumers with businesses, between businesses and businesses, between businesses and organizations However, there are still some limitations in typical trade promotion activities such as barriers between continental countries Or the lack of capital leads to small and limited scope of trade promotion programs The State has not had many policies to promote domestic and foreign enterprises to help them develop The report was conducted under the guidance of officials and employees at the Vietnam Association of Seafood Exporters and Producers (VASEP) and Dr Dao Hoang Tuan to help me understand the trade promotion methods informally organize fairs and conferences Thereby it is possible to see the importance of trade promotion for businesses, only to see that our country with great potential in the fishery industry will be able to develop more in the future 46 47 ... in Vietnam Association of Seafood Exporters and Producers (VASEP) Secondly, Clarify the current situation of trade promotion activities at the Vietnam Association of Seafood Exporters and Producers. .. situation of trade promotion activities at Vietnam Association of Seafood Exporters and Producers (Vasep) Chapter III: Proposing some solutions to promote trade promotion at Vietnam Association of. .. solutions and future orientations of the Association (VASEP) 3.3.1 Orientation of activities of Vietnam Association of Seafood Exporters and Producers (Vasep)  Promote the scale of trade promotion

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