485 FRONTSHEET assingment 2 (1)

LO3 Sử dụng các ví dụ hiện đại để chứng minh ảnh hưởng tác động tích cực và tiêu cực của môi trường vĩ mô đối với hoạt động kinh doanh. LO4 Xác định điểm mạnh và điểm yếu bên trong của các doanh nghiệp cụ thể và giải thích mối quan hệ qua lại của chúng với các yếu tố vĩ mô bên ngoài. Kịch bản chuyển nhượng . Bạn đang làm việc với tư cách là nhà phân tích tại JP Morgan, một ngân hàng đầu tư nổi tiếng nhằm mục đích tìm ra các công ty năng động trên khắp thế giới để đầu tư vào. đầu tư sinh lời. Cô ấy yêu cầu bạn viết một bản phân tích về môi trường bên trong và bên ngoài của công ty đã chọn. Lần này, bạn cần làm như sau: 1. Cùng một công ty trong Nhiệm vụ 1 hoặc một công ty khác, bất kể quốc tịch (được gọi là công ty được chọn) 2. Quốc gia hoặc một tỉnh cụ thể trong nước, nơi công ty được chọn cung cấp sản phẩm hoặc dịch vụ của mình, để thực hiện một nghiên cứu về ảnh hưởng của các yếu tố môi trường bên ngoài.

ASSIGNMENT FRONT SHEET Qualification BTEC Level HND Diploma in Business Unit number and title Unit 1: Business and Business Environment Submission date 20/12/2019 DateReceived1stsubmission Re-submissionDate DateReceived2ndsubmission Student Name DUONG BINH LAM Student ID GBS18053 Class GBS 0802 Assessor name NGUYEN THI QUYNH Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism I understand that making a false declaration is a form of malpractice Student’s signature Grading grid P4 P5 P6 M3 M4 D2 Summative Feedback: ResubmissionFeedback: Grade: AssessorSignature: InternalVerifier’sComments: Signature&Date: Date: P4 Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples PESTEL: The PESTEL model is one of the most common tools used by businesses to analyze position and external market impacts Businesses often analyze PEST to understand and adapt to the future business environment of the business Influence of PESTEL PEST analysis helps people become aware of Awareness of how political and regulatory knowledge can impact business And how the economy (past, present, and future) affects an industry It allows people to understand consumers, who they are, what they buy and why they are not And finally, it determines which technology is necessary for the development and success of a product, business or industry It shows people what affects the quality, success or failure of businesses and industries We cannot prevent influencing factors, but if we are aware of them and their impact, we can plan around, counter or have specific solutions to address them The PESTEL model is a type of analysis that looks at six important business factors The six categories are: Political Economic Sociocultural Technological Environmental Legal Political This factor determines the extent to which a government can affect an economy or a certain industry For example, the government may impose new taxes or duties, as the entire revenue generation structure of organizations may change Political factors include tax policy, fiscal policy, trade tariffs, etc that the government may tax in the fiscal year and it may affect the business environment (economic environment) to a great extent Economic This factor is a determinant of the effectiveness of an economy that directly affects business and has a lasting impact For example, an increase in the inflation rate of any economy will affect the way companies value their products and services In addition, it will affect consumer purchasing power and change the supply/demand model for that economy Economic factors include inflation rate, interest rate, exchange rate, economic growth model, etc It also accounts for the proportion of FDI (foreign direct investment) depending on specific industries Sociocultural These factors help businesses scrutinize and have specific plans for the market's social environment It is information that helps businesses assess decisive factors such as cultural trends, demographics, population analysis, etc An example of this might be the trend of buying Asian clothes such as Vietnam, which is in high demand during the holiday season Technological These factors are related to the technological innovation of the country It may affect the performance of the industry and the market It could be either favorable or unfavorable This refers to automation, research and development and the amount of technology awareness that the market owns For example, Southeast Asian countries like Vietnam, Laos, and Cambodia are low-tech countries Environmental These factors include all those factors that are influenced by or determined by the environment in which the business operates This aspect of PESTLE is very important for a number of industries, especially tourism, agriculture, agriculture, etc The elements of business environment analysis include but are not limited to climate, time, and climate weather, geographic location, global changes in climate, environment, etc Legal These elements are both external and internal There are certain laws that affect the business environment in a given country while there are certain policies that companies maintain for themselves Legal analysis takes both these angles into account and then outlines strategies according to these regulations Examples: consumer laws, safety standards, labor laws, etc APPLICATION Introduction about the company As a subsidiary of Vingroup, VinFast is Vietnam's first bulk car manufacturer and will be the first company to participate in the International Motor Show The company is currently developing and producing world-class innovative vehicles As a Vietnamese enterprise with an international vision, VinFast is working with leading European design, engineering and components companies to create products that meet international standards and customer expectations in terms of design, quality, engine power, features in the car and the driver experience Source: (Vinfast) Vietnam's environment is where Vinfast will conquer and devise strategies for business development Therefore, the environment outside the business list in Vietnam is very important Political Structure and apparatus Vietnamese politics follows the model of a one-party socialist state The new constitution was adopted in November 2013, reaffirming the leadership of the Communist Party of Vietnam in politics and society, outlining government reorganization and strengthening market reform in the economy International International Although Vietnam is a one-party state, the Party's official ideology has reduced the importance and priority of its goals for economic development and national security Commitments of Vietnam and EU in some key areas of EVFTA and IPA: Cut import and export taxes Tariff quotas Rules of Origin Services - Investment Government procurement Intellectual property Trade and Sustainable Development IPA Agreement The reason why Vietnam has become a "promising land" for Asian businesses is political - economic stability (41%), customers with great and increasing demand (40%), tax rates incentives and favorable regulatory environment (35%), incentives from the Government (28%) On the other hand, the economic growth rate of 6.7% in 2015, the young labor force accounting for 60% of the total population also attracts investors Stable politics, favorable conditions, a young population and a growing middle class are the reasons why many Asian businesses choose Vietnam as a destination Economic Economic growth GDP of 2018 increased by 7.08%, the highest increase since 2008 This year's growth rate exceeded the 6.7% target set as a result of the drastic management of the Government, the Prime Minister and efforts of all levels, sectors, localities, business community and people country In the growth rate of the whole economy in 2018, the agriculture, forestry, and fishery increased by 3.76%, contributing 8.7% to the general growth; industry and construction sector increased by 8.85%, contributed 48.6%; service sector increased by 7.03%, contributing 42.7% In terms of GDP used in 2018, final consumption increased by 7.17% compared to 2017; Accumulated assets increased by 8.22% Inflation is under control The consumer price index (CPI) in December 2018 decreased by 0.25% compared to the previous month; Average CPI in 2018 increased by 3.54% compared to 2017, below the target set by the National Assembly; CPI in December 2018 increased by 2.98% compared to December 2017 Core inflation in December 2018 increased by 0.09% over the previous month and by 1.7% over the same period last year The average core inflation in 2018 increased by 1.48% compared to the average in 2017 CHALLENGES, MOTIVATION AND SOLUTIONS FOR 2019 Vietnam's international economic integration has shifted to a new stage, closely linked to the regional and global economy, marking the time when our country has completed the roadmap of commitment to join the Trade Organization World and tariff reductions under the ASEAN Trade in Goods Agreement, beginning implementation of FTA commitments with a wide range of reductions Vietnam has signed and prepared to deploy new-generation FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the VietnamEU Free Trade Agreement (EVFTA) with commitments sweeping, high standards and wide open in many areas These FTA agreements create the driving force for our country's economic growth with high openness of the economy, and at the same time enhance opportunities to attract and utilize FDI inflows in 2019 and subsequent years A strong development of the private economy will be an important foundation to contribute greatly to Vietnam's economy Recently, the business environment of our country has improved markedly, the business community has benefited much from reforms through the reduction of business investment conditions and simplification of administrative procedures policies and policies to support businesses' development The start-up wave has mobilized capital for the economy: In 2016, more than 110 thousand enterprises were newly established; in 2017, there were nearly 127 thousand enterprises; In 2018, there were more than 131 thousand newly established enterprises With the total of newly registered capital and additionally registered capital, in 2018, businesses estimated to supplement the economy with nearly VND 3.9 million billion Economic restructuring not only takes place between economic sectors but also a positive trend within the industry will contribute to promoting economic growth both in speed and quality in time next The economy is growing and integrating It will open up many advantages for private businesses Source: (google.com) Vingroup predicts a major boom in the passenger car market At present, car ownership is 23 cars per 1,000 people, compared to 204 cars per 1,000 people in neighboring Thailand and 790 cars per 1,000 people in the US It is estimated that car ownership in Vietnam will increase to 50 out of 1,000 in the next few years, as the middle class is growing rapidly, continuing economic growth and investing heavily in national road infrastructure Source: ( GDP VietNam) Socialcutural People's living standards this year have generally improved In 2018, the average income per person per month was estimated at 3.76 million VND (an increase of 660 thousand VND compared to 2016), the average period of 2016-2018 increased by 10.2% / year The poverty rate according to the multi-dimensional approach in 2018 was estimated at 6.8%, down 1.1 percentage points compared to 2017 The number of employed laborers aged 15 and over in economic sectors in 2018 was estimated at 54.3 million people, an increase of 579.7 thousand people compared to 2017 The overall unemployment rate of the whole country in 2018 was 2.00% , of which urban areas are 2.95%; rural area is 1.55% The underemployment rate of working-age labor is estimated at 1.46%, of which the urban underemployment rate is 0.69%; The underemployment rate in rural areas is 1.85% People's living standards this year have generally improved In 2018, the average income per person per month was estimated at 3.76 million VND (an increase of 660 thousand VND compared to 2016), the average period of 2016-2018 increased by 10.2% / year The poverty rate according to the multi-dimensional approach in 2018 was estimated at 6.8%, down 1.1 percentage points compared to 2017 Source: (google.com) Technology First of all, globalization helps Vietnam's science and technology step by step integrate and exchange with the world's science and technology, creating favorable conditions for Vietnam to learn from experience and acquire public scientific achievements world technology to serve the socio-economic development of the country The transfer of advanced technological and scientific lines from the world to each specific industry and field in Vietnam such as the Technology of automobile production The proposed solution is to strengthen links between science and technology organizations and enterprises; Linking houses: government, scientist, entrepreneur, and farmer Strengthening international cooperation on science and high technology must be a priority direction in international integration Therefore, the new science and technology of Vietnam is not out of place and lagging behind the world Open up many opportunities for business development Environment Natural Vietnam's waters belong to the South China Sea, located on the maritime routes and arteries that trade between the Indian Ocean and the Pacific Ocean, between Europe, the Middle East and China, Japan and other countries in the region area; On all four sides, there is access to the Pacific and Indian Oceans via the straits Outside of Vietnam, the South China Sea is surrounded by eight other countries: China, the Philippines, Indonesia, Brunei, Malaysia, Singapore, Thailand, and Cambodia Convenient agent location suitable for business development And trade with foreign countries Demographic Here are the main figures for the population in Vietnam in 2018: - Natural population growth: 997,715 - Migrants: -47,369 people -47,967,516 males as of December 31, 2018 -48,996,442 women as of December 31, 2018 -The current population of Vietnam is 97,847,216 people on 12/13/2019 according to the latest figures from the United Nations Vietnam's population currently accounts for 1.27% of the world population Vietnam is ranked 14th in the world in the population rankings of countries and territories The population density of Vietnam is 316 Not yet a floating brand in the market This is the first factor that users consider when choosing a car, If the businessmen want to find a car to exalted elegance and fitness Currently, VinFast is not an option Clearly at this point, the Toyota Camry really dominates Because of the pioneering advantage, Camry has been positioned in the mid-range customer mind of luxury cars because it was born long after the brand walls of Toyota, Honda, Hyundai, etc At this time, when joining the brand of VinFast, it has not penetrated into customers' hearts The cost of warranty, warranty service and maintenance have not satisfied customers Although the dealer network has been expanding, the source of components is being manufactured at affordable prices, but it is clear that the company has just entered the market Therefore, the number of dealers, as well as the popularity of VinFast's repair components, are weak compared to its predecessors, especially Toyota There is an advantage that VinGroup has a relatively good service culture, hoping to bring it to the automotive industry to balance its position for VinFast in the market The ability of Marketing and PR for VinFast products It is not an advantage for car buyers, they will choose the car models suitable for certain personal styles In particular, suitability with individual style is also determined by the marketing power of the store Meanwhile, marketing is not a strong capability of Vingroup The effectiveness and success of Vin comes from thinking on the horizon, heat resistance, superior quality of products and services compared to other domestic suppliers rather than from their marketing capabilities Opportunities Vinfast has started to start by cooperating with strategic partners such as Italian design company or BMW group This is also a trend applied by many car manufacturers in the world, the fact that we know more Enjoying and utilizing the technology from partners to put into production, creating products suitable for the masses will be a strong point that has a decisive factor to the existence of Vinfast Besides, when the trend of automatization is widespread in Vietnam, the establishment of Vinfast can be likened to following the "popular heart" It can be said that up to now, Vinfast is the first company with the ambition to produce cars and has the ability to turn that ambition into the highest reality After many expectations of the Vietnamese people about having a car of the manufacturer, from the efforts of the brand Vinaxuki, before the 1975s in Vietnam, there was also a cult brand assembled such as: La Dalat, this shows that Vinfast dominates as a "leader" in the Vietnamese market At the same time, according to a statistic, automobile consumption in Vietnam is the strongest increase in the ASEAN region With a young population, and a relatively stable income, it is understandable to want to own a car And because it is the first car "made in Vietnam", it also makes young people curious and want to own or try it Not to mention, the tax for a car when imported into Vietnam is quite high so when a domestic car appears to receive the response of the majority of people Challenges Source: (Auopro) Besides the opportunities for Vinfast above, there are also significant challenges for the first "made in Vietnam" car company In the car market, Vingroup has not had any experience, which makes it difficult for car production and installation as well as access to this new market We can see the market share of cars in 2015 in Vietnam with Toyota accounting for 37%, Thaco accounting for 35%, and Ford accounting for 11%, This shows that Japanese and American car companies have a relatively high market share in Vietnam This is more emphasizing about the outward preference of Vietnamese people Car market share of automakers in Vietnam 2015 Car market share of automakers in Vietnam 2015 In addition, supporting industries in Vietnam have not really developed For a car, the details that make up are not simple Therefore, the company has components factories approved for investment policy, in the stage of contract signing and factory design, with diversified partners from Germany, USA, France and Thailand This emphasizes even more, to be able to produce a car made in Vietnam 100% absolutely not easy In addition to cars, Vinfast also produces electric cars and electric scooters - the first model to appear in Vietnam market In addition to the opportunities and challenges of the car market in Vietnam, electric vehicles are also an important milestone, marking the transformation of a new era of Vietnam's industry in the future criteria determine Vinfast's strengths and weaknesses Strengths Core value or Mission or Vision Vinfast is always proud of its values This is a strong point for vinfast to have more motivation to develop Vision Vinfast aims to develop into a leading automobile corporation in the region, constantly innovating and creating to create an ecosystem of high-class products and services, contributing to improving the quality of life of Vietnamese people and raising the bar position of Vietnamese brand name in the international arena Mission For a better life for Vietnamese people Core values World-class quality: Converge on the quintessence of the world car industry to create cars of international standards Optimal value: Brings advanced features to serve the modern lifestyle of customers Customers are companions: Connecting customers to the Vingroup ecosystem to ensure value and long-term experience for VinFast owners Source: (Vinfast) Human resources The human resources is one of vin fast's strengths Leadership A total of people are on the main board of VinFast Three of them are Vietnamese They hold key positions in the company such as Chairman, General Director, Deputy General Director until being in charge of main divisions Ms Thuy The first person to mention is definitely Ms Le Thi Thu Thuy as the Chairwoman of VinFast Ms Thuy has had years with Vingroup and held a new position at VinFast since August 2017 She has held many key leadership positions there, having more than 22 years of experience in finance and real estate Since 2000, Ms Thuy has been the Vice Chairman of Lehman Brothers - the fourth largest securities group and investment banking group of the United States Since 2008, Ms Thuy moved to Vingroup and held the position of CEO and Vice President Mr James DeLuca Mr James DeLuca is holding the position of General Director of VinFast This is the famous leader of General Motors With more than 16 years working with the major US automobile company, he has held many production management positions and eventually rose to the position of Executive Vice President of Global Manufacturing Operations After deciding to retire at GM in 2016, the former leader of the company has been recruited to VinFast since September 2017 for his outstanding talent finance and real estate Mr Vo Quang Hue Vingroup's Deputy General Director in charge of VinFast belongs to Mr Vo Quang Hue - the next Vietnamese on the executive board He has a "terrible" biography when he was CEO of Bosch in Vietnam for nearly 10 years He also served as BMW's chief representative in Egypt for nearly years Ms Nguyen Thi Van Anh The second person to hold the position of Deputy General Director is Ms Nguyen Thi Van Anh Ms Van Anh has high expertise in the field of personnel Up to now, she has worked for year and months at VinFast Previously, she was the head of VPBank's human resources department, and held the positions of Regional Director and CEO of Navigos Search Vietnam The remaining positions are Mr Sam Casabene - Deputy General Director, Purchasing Division, Mr Kevin Fisher Chief Engineer, Mr Shaun Calvert - Deputy General Manager, Production Division, Mr Markus Leitner - Director, Automotive Institute , and Mr Roy Flecknell - Deputy General Manager, Program Management and Product List The leader a lot of experience It is a strong point helping Vinfast to dominate the Vietnamese automotive market Financial strength / factors This is one of the strong factors that vinfast has With the support of Vingroup, we are ready to spend large sums of money to help businesses in business activities With this strength, it creates a springboard for further vinfast Increasing dominance gradually th5 Vietnam car market Source: ( Vingroup.com) We can see that Vingroup's profits are very high That is a strong financial fulcrum for vinfast Weaknesses Brand name or brand equity Vinfast is still too young to confirm its reputation In Vietnam, cars are not merely seen as a means of transportation, but also a valuable asset in the family Therefore, price-keeping and durability are always the top concerns of users The brand name is quite new, so the skepticism and anxiety of customers is still high, which is the weakness of Vinfast in branding Technology base or Research and Development Supporting industry in Vietnam is still in its infancy In the case of Vinfast, the supporting industry in Vietnam is still very weak Specifically, the current localization rate is only 7-10%, while the long-term goal is to reach 60% by 2010 This feature makes the production of a car "Made in Vietnam” becomes difficult Market resources This is a weakness of the business Market resources in Vietnam are extremely large, but vinfast has not had enough potential to meet the needs of the market Explain how strengths and weaknesses interrelate with external macro factors Vinfast will choose Investment as the main business development strategy To reduce the influence of suppliers and create high profits for businesses Investment in the ancillary industry complex At the end of November, VinFast Manufacturing and Trading Co., Ltd was approved by the Chairman of Hai Phong People's Committee to implement the VinFast auxiliary industrial production complex investment project in Van Phong and Nghia Lo communes, CatHai district The project aims to produce auxiliary industries for cars and other vehicles, with a production scale of about million products of all kinds/year; Estimated land-use area is about 48ha The implementation progress of the project includes the third quarter of 2019 to the first quarter of 2020 implementing legal procedures, investment preparation, and liberation; Quarter II / 2020 to Quarter III / 2022 deploying synchronous construction of technical infrastructure of factories and other works; fourth-quarter / 2022 completed and put into operation The project, when completed and put into operation, is expected to contribute to the growth of the city's industrial production value and the localization of automobile products, creating conditions to promote the city's supporting industry Invest in technology Vinfast does not have many solid technology platforms in the field of car production So Vinfast acquired some of the rights to develop new vehicles that are common in the four-wheel industry Companies with great potential but no technological experience will take shortcuts to create models like other brands Safety technologies such as three-point belt, ABS, electronic body balance control Before BMW, Vinfast said it cooperated with Bosch, Siemens, Magna Steyr, AVL to make cars The company is using the way to order all the details from different manufacturers in the world, then aggregate them into a complete vehicle This approach saves time, research costs and is especially suitable for companies without mechanical and automotive technology platforms Vinfast invests heavily in technology, to create a solid technological foundation for businesses Combining with many big brands will help the product to reach high standards and quality Before BMW, Vinfast's car company said it cooperated with Bosch, Siemens, Magna Steyr, AVL to make cars The company is using the way to order all the details from different manufacturers in the world, then aggregate them into a complete vehicle This approach saves time, research costs and is especially suitable for companies without mechanical and automotive technology platforms Invest in brand promotion Strengths Abundant financial resources from VinGroup enable Vinfast to invest in infrastructure and technology According to Vingroup's separate financial statements, by the end of September this year, the company has invested VND 12,847 billion to contribute capital to this car and electric vehicle manufacturer The investment has doubled compared to the beginning of the year and is the second-largest capital contribution to the subsidiary after Vinhomes Joint Stock Company (VND 22,981 billion) Good human resources help Vinfast operate smoothly and the money invested in the right place helps bus insets achieve high profits Source: (Zing.vn) Weaknesses he disadvantages of vinfast is that its technology does not have a good foundation That makes it difficult for investment and technological development Need to focus on researching and developing well technology platform The next category of businesses is the name too young Because Vinfast just launched its first product on September 3, 2019, in the automotive market Vinfsat is hard to win customers' trust That reduces the motivation to invest in the localization of auxiliary products of industry Most Vietnamese people have little faith in the work that is the invention of Vinfast Creating an analysis of the SWOT model is really useful, it will greatly affect our investment in the future Therefore, to achieve the highest efficiency, vinfast's SWOT strategy requires the participation of a group of members representing many different departments and divisions Everyone should have a seat on the team that develops the SWOT strategy analysis An example of Vinfast automobile manufacturing business Strength: Location: Crowded residential area Unique point: Is the first Vietnamese car brand in the world Management team: All people with wide expertise Weakness: Lack of technology: Only technology from abroad and from other investors Lack of credibility: This is the first car manufacturing and market participation in the region Opportunity: Development prospects: Vietnam market grows 8.5% per year Prospects from the target audience: More and more families have higher incomes Improved infrastructure Challenge: Competition: Many other stores have loyal customers “Post-launch” problem: Customers may not return when the national spirit is no more Comparing potentials and limitations of Vinfast and Mazda Vinfast potential: There is no need to regulate the level of import And all other expenses are reduced because it is the first Vietnamese brand Limitations Vinfast: is a relatively young name in the automotive market, so customers are always skeptical about quality and reliability Mazda potential: Mazda is a popular line of cars with affordable prices combined with Japanese technology and dynamic models Limitations: Is to respect a lot of transport costs No factory in Vietnam so the price is very eye-catching Source: (google.com) Fiscal policy As of December 31, 2018, the state budget balance was estimated at 1,422.7 trillion dong, exceeding 103.5 trillion dong, up 7.8% compared to the estimate, up 64.3 trillion dong from the number of reports In the National Assembly, the rate of mobilization in the state budget reached 25.7% of GDP, taxes and fees alone were 21.1% of GDP (the target for the period 2016-2020 is 23.5% of GDP and 21% of GDP respectively) In particular, central budget revenue is estimated at 104.3% of the estimate, local budget revenue as a whole reaches 112.5% of the estimate, mainly due to excess land use levy collection; However, due to the lack of compensation between localities, so excluding land use fees and collecting lottery, there are still some localities reduce the local budget balance Comparing with the estimation, there are 9/17 revenue and taxes are quite good, in which some revenue has been completed such as: Land use fee is about 125.8%; land rent is estimated at 137.3%; revenue from granting rights to exploit minerals and water resources was estimated at 129.3%; other revenue is estimated at 120.9%; Lottery revenue is estimated at 99.9% There were 4/17 low revenue (less than 88%), of which some large revenues were very low, such as: State-owned enterprises (SOEs) were estimated at 82.5%; foreign-invested enterprises were estimated at 75.6%; Environment protection tax is about 86.5% Compared to 2017, there are 14/17 revenue and taxes have grown such as: SOEs revenue increased by 5.8%; FDI sector increased by 13.1%; non-state sector increased by 19.3%; personal income tax increased by 21.5%; registration fee increased by 15%; fees and charges increased by 2.5%; land rent increased by 30.2%; land use fee increased by 9.3% The government's fiscal policy influences the investment and development process of the business Monetary policy To develop economy, there should be factors: Labor, capital and technology These factors are also known as scarce resources For our country, the labor force is abundant, but the capital is too small and the technology is backward Of course, technological innovation also requires capital Therefore, capital is a key issue in financial policy at the current stage many barriers make it difficult for businesses to access and develop products Macro environment influences decisions Economic Vietnam's economy is a socialist-oriented market economy, highly dependent on crude exports and foreign direct investment [9] This is the 6/11 largest economy in Southeast Asia; 44th in the world in terms of nominal GDP size or 34th largest in terms of purchasing power parity (2016), 127th in terms of nominal GDP per capita or 117th if GDP per capita is calculated per capita according to purchasing power parity GDP GDP in 2016 was 202 billion USD in nominal or 595 billion USD in purchasing power parity This facilitates the decision to invest in the product Because in the future the market's purchasing power is very high The additional investment in factories and branding help businesses gain market share Politicial The ambitious project of Vinfast will enjoy great tax incentives "The corporate income tax rate of 10% is applied for 15 years from the date the project commences production and business activities Exemption of enterprise income tax for years from the date of taxable income and 50% reduction of payable tax amount for subsequent years This is a big discount compared to the current normal tax rate of 20% Vingroup on September plans to produce 500,000 cars in 2025, including cars, motorbikes powered by gasoline and electricity This project received consensus from the government Prime Minister Nguyen Xuan Phuc attended the groundbreaking ceremony of VinFast Automobile Production Complex project on September in Dinh Vu Economic Zone, Hai Phong Government support gives businesses more incentive to invest in the future of their products Recommendations and potential of the Vinfast Group in the context of the Vietnamese automotive market Potential 1.Dense dealer network With 14 authorized sales and service centers nationwide, Mercedes-Benz Vietnam (MBV) owns the largest luxury car dealership system in terms of quantity On the side of VinFast, this company also quickly acquired the whole system of GM Vietnam dealers right before launching new models The system consists of 22 agents, 1.5 times more than MBV As a big player in real estate and construction, Vingroup will not be difficult to expand the size of its vehicle distribution system, especially when they have many commercial centers for display 2.Abundant, affordable supplies and spare parts? A separate ancillary industrial park was built within the premises of VinFast's factory complex in Hai Phong Auto parts and accessories will be shipped from here Abundant supply, not subject to import costs and government tax support for domestic products is VinFast's advantage over other brands like Mercedes-Benz Genuine MercedesBenz parts still have to import from Europe, the price is not cheap Assuming the same amount of 1.5 billion to buy a Mercedes-Benz C-Class and VinFast sedan, the cost of replacement and maintenance of VinFast cars may be lower Even though Vietnamese people still focus on branding issues, especially with expensive items, VinFast is quite new, but the way Vingroup builds its car company image will help accelerate brand value 3.Prerequisite for developing a popular car Car manufacturers often apply new and advanced technology too expensive products first, then normalize to include more popular cars Take, for example, the touch key used on the first and current BMW 7-Series, available on the 6-Series and 5-Series Then came the high-resolution dual screen that appeared on the S-Class, then it became popular on other models Currently, the new A-Class has this technology Therefore, the first launch of luxury products of VinFast is not uncommon The technology on this model will be researched and optimized so that it can be applied to lower-end models produced in the following years Making luxury cars also helps VinFast balance the cost of countless items to serve the mass production of many cars Building brand image, can not start with cheap cars Through Vingroup's strong investments in building VinFast brand as well as developing car models, it can be seen that the Vietnamese car company wants to put quality first VinFast's senior management apparatus is mostly those who used to hold senior positions at GM VinFast cars carry the technology of BMW, GM, or Bosch, Siemens, designed by the world's leading Pininfarina studio Starting with high-class cars will create trust from customers and partners The long-term development strategy of both brand and product does not allow VinFast to make cheap cars right from the first days of joining the market The competitive factor in price and sales at that time was secondary Building a new company, developing a new field to finally make a profit, but perhaps with VinFast, that's the next step First, branding is still vital for businesses that have just entered this market Vingroup is having large financial resources in other fields, typically real estate, to pour capital into automobile development Recommendations The VinFast project was born at a time when Vietnam was facing an important turning point in participating in the global value chain: we should continue to develop in the direction of being the foundation for export and intensive in assembling, or taking advantage of the opportunity from the current relatively high growth rate to diversify and rise up, to engage in stages of higher value The answer is maybe we should both at the same time One suggestion is that instead of building their own brands to compete from the beginning, VinFast and domestic enterprises should establish joint ventures or alliances with foreign car companies first, prioritizing partners in ASEAN can enjoy intra-regional tax incentives, gradually dominate the market, improve the localization rate and affirm its position in the global value chain Exchange of experience and technology To dominate the domestic car market Reference list Tam T (2019) ‘Mơ hình PESTEL gì? – Tất tần tật cơng cụ phân tích kinh doanh khơng thể thiếu’ Atpsoftware Availablefrom:.[ Accessed Dec.2019] Blog (2019) ‘CƠ HỘI VÀ THÁCH THỨC CHO VINFAST TẠI VIỆT NAM’ Bota Availablefrom: .[ Accessed Dec.2019] Khoi, Duc (2019) ‘ Chân dung người lèo lái VinFast vượt tốc độ kỷ lục giới mà tỷ phú Phạm Nhật Vượng đề ra’ Cafef biz Available form: [16 December 2019] TỔNG CỤC THỐNG KÊ (2018) ‘ Tổng quan kinh tế - xã hội Việt Nam năm 2018’ TỔNG CỤC THỐNGKÊ.Availableform: [16 December 2019] Brands (2019) ‘Xe VinFast giá tiền tỷ: Lợi cạnh tranh ông lớn Việt Nam?’ Brands VietNam Available form:< https://www.brandsvietnam.com/16496-Xe-VinFast-gia-tien-ty-Loi-the-nao-canh-tranh-cac-onglon-tai-Viet-Nam > [16 December 2019] ... includes the third quarter of 20 19 to the first quarter of 20 20 implementing legal procedures, investment preparation, and liberation; Quarter II / 20 20 to Quarter III / 20 22 deploying synchronous... mobilization in the state budget reached 25 .7% of GDP, taxes and fees alone were 21 .1% of GDP (the target for the period 20 16 -20 20 is 23 .5% of GDP and 21 % of GDP respectively) In particular, central... improved In 20 18, the average income per person per month was estimated at 3.76 million VND (an increase of 660 thousand VND compared to 20 16), the average period of 20 16 -20 18 increased by 10 .2% / year