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Acknowledgements

With sincere, firstly I very much appreciate and would like to thank Drs. J.Vos at
Department of Business Administration of Hogeschool Zeeland, as well as my
graduation internship tutor. It goes without saying that his devotion and wise advices
have largely contributed to my knowledge foundation and to the success of my thesis
as well.

Another special thank goes to my in-company mentor Marcel P.A. van Boven from
The Work Zone B.V. During my working period at Applied Research Centre, he is
one of the most responsible individuals in helping me complete this dissertation. On
the whole, his kindly support and instruction give me ideas of how to create a frame
for the project, how to manage time, problems and all issues related to my plan. In
other words, he shows me the direction to achieve my target.

I am also greatly indebted to many professors and staff of Hogeschool Zeeland,


especially, Drs.J.M.Weggemans, who is always enthusiastic and supportive in
coaching and mentoring in most cases.

Besides that, my truly thanks to Hai Le and all friends for being by my side and
giving the greatest supports of all.

Last but not least, I would like to express my deep gratitude to my family with all
sincere.

1
Seafood Market Research for
Dutch and Vietnamese Enterprises

By
Nhung Nguyen

A Thesis
Submitted to Hogeschool Zeeland
For the Degree of Bachelor of International Business and
Management Studies

Copyright © By Nhung Nguyen


The content of this thesis report is the intellectual property of Nhung Nguyen and it
must not be sold, licensed, transferred, copied or reproduced in whole or in part, in
any manner or in any media to any person without the permission of Hogeschool
Zeeland, TWZ-ARC and the writer

2
APPROVED
By

HZ TUTOR

Dr. J.Vos
Department of Business Administration
Hogeschool Zeeland
Edisonweg 4
PO Box 364
4380 AJ Vlissingen

Date Signature

IN-COMPANY MENTOR

Marcel P.A. van Boven


Medewerker
Stage & Detacheringen
TWZ, The Work Zone B.V.
Tel: 0118-479 207
Fax: 0118-465 963

Date Signature

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Executive Summary
As living condition is improving, people continue to pay increased attention to health
and diet. Accordingly, fish and seafood rapidly become one of the most popular food
groups. Today, seafood business has been tremendously growing up in term of
product-variety, quality, and technique as well. As far as it’s concerned, it is now one
of the busiest market place in which more parties, higher investment, and wider
attention are involved. Particularly some countries even consider fishery is its national
major profit source. Speaking generally, the higher profit shows the higher success of
the organisation. In that case it should be never underestimate the importance of how
to define and match the supplies with demands (or demands with supplies), how to
find the best partners, the greatest advantages in a win-win situation.

This thesis was set up to take shape the seafood market research in Vietnam and the
Netherlands. Furthermore, analyses and strategies are dissected to point out possible
direction to the biggest benefits for Dutch and Vietnamese companies in this business.

The goals are aimed to achieve following by some main parts as:
 Initially, chapter 1 Introduction will be presented with concern about
Problem definition, Objectives, Structure.
 Then the chapter 2 Situation Analysis is demonstrated with the overview of
Netherlands Economy, Vietnamese Economy and the Cross Culture.
 Subsequently, the thesis is not only talking about the Vietnam Market
Analysis, but also the Netherlands Market Analysis to give a preview in many
aspects, such as: Fishery industry, Segmentation, Competitors, Market
access, Buying Behaviour, and SWOT.
 One of the most important issues is Strategies, which conducts some
suggestion to improve the current business, for instance, strategy for
Branding, Competition, Products, Price, Place, Promotion, Purchasing, and
Negotiating.
 Apart from this, Risks and Hedges are also showed up.
 Conclusion and Recommendation will come right after.
 As one may expect, Bibliography and Appendices is as well mentioned.

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Table of Content
1 Introduction.................................................................................................................6
1.1 Problem definition................................................................................................6
1.2 Objectives.............................................................................................................6
1.3 Structure...............................................................................................................7
2 Situation Analysis.......................................................................................................8
2.1 Economy overview...............................................................................................8
2.1.1 Dutch economy.............................................................................................8
2.1.2 Vietnamese economy..................................................................................10
2.2 Cross culture.......................................................................................................11
2.2.1 Theory of cross culture................................................................................11
2.2.2 Dutch business culture................................................................................12
2.2.3 Vietnamese business culture.......................................................................15
3 Vietnamese Market Analysis....................................................................................18
3.1 Exporting............................................................................................................18
SELLER......................................................................................................................19
BUYER.......................................................................................................................19
3.2 Vietnamese fishery.............................................................................................22
3.3 Segmentation.....................................................................................................26
3.4 Competitors........................................................................................................27
3.5 SWOT.................................................................................................................28
3.5.1 Strengths......................................................................................................28
3.5.2 Weaknesses.................................................................................................28
3.5.3 Opportunities...............................................................................................28
3.5.4 Threats.........................................................................................................29
4 Dutch Market Analysis..............................................................................................30
4.1 Dutch fishery......................................................................................................30
4.2 Dutch market access...........................................................................................33
4.2.1 Regulations.................................................................................................33
4.2.2 Customs duties...........................................................................................34
4.2.3 Tax rates.....................................................................................................34
4.3 Buying behaviour...............................................................................................34
5 Strategies...................................................................................................................37
5.1 Theory of strategic management........................................................................37
REWARD....................................................................................................................37
RISK............................................................................................................................37
5.2 Strategies for Vietnamese exporters...................................................................38
5.2.1 Branding......................................................................................................38
5.2.2 The 4P’s strategy mix..................................................................................39
5.3 Strategies for Dutch importers...........................................................................42
5.3.1 Purchasing...................................................................................................42
5.3.2 Negotiating..................................................................................................42
6 Risks and Hedges......................................................................................................43
6.1 Definition of hedging.........................................................................................43
6.2 Risks and hedging..............................................................................................43
6.2.1 Currency risk ..............................................................................................43
6.2.2 Price risk......................................................................................................44
6.2.3 Payment risk................................................................................................44
6.2.4 Political risk ................................................................................................44

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7 Conclusion and Recommendation.............................................................................45

1 Introduction

1.1 Problem definition

Seafood market is tremendously developing and promising today. Demands are


increasing significantly. The Netherlands seems to be a good market to penetrate,
and Vietnam should be a name to be more popular when Dutch importers are
looking for seafood sources. However, Most of Dutch seafood companies do not
know well about the seafood market in Vietnam. They normally import from
China, Bangladesh …In comparision, Vietnam is more competitive in term of
price, quality, products variety…With the evaluated product quality and the
reasonable price, Vietnam seafood market should be a popular name for Dutch
importer. The question is wondered how to find more opportunities in importing
seafood from Vietnam?. For whom it may concern, the thesis gives more
information and market analyses in every aspect of Dutch and Vietnamese
seafood markets. The problem definition turns out to be How to improve the
seafood business situation between Vietnamese and Dutch enterprises .

1.2 Objectives

Regarding to the problem definition, this project is carried out, firstly to give an
overview of Vietnamese and Dutch market, and hopefully can find a possible
solution for a better business in Dutch and Vietnamese seafood. The thesis plan is
based on researching for seafood market information, then giving analyses in the
track of these objectives:
• To verify information and potential opportunities about Vietnamese and Dutch
seafood markets
• Giving researched facts, figures, collected data, compact analysis…
• Giving the best information, or view for both parties
• Analysing both parties in all weaknesses, strengths, opportunities, threats
• Strategies
Recommending some solutions, which can help a better successful business
partners (Dutch and Vietnamese) in order to achieve the greatest benefit/profit for
both sides.

The thesis is content of both theoretical and practical parts, which are combined to
assist. For achieving the expected objectives, the research progress has been
proceeded based on desk researching and some practical activities as following:
 Researching, collecting data from many sources for information, facts
 Gaining knowledge from studying books, searching other networks, self-
experiences.

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 Theoretical part is conducted from literature-books, and 4- year studying
period at Hogeschool Zeeland.
 Practical part is conducted by self-analysis, interviews, questionnaires.
 Contacting: face to face interview with Dutch wholesaler in Domburg,
online interview, phone interview with Vietnamese exporter in Ho Chi
Minh city, Dong Thap province, questionnaires are sent to many
Vietnamese and Dutch seafood companies (see appendix 9) by e-mails.

1.3 Structure

The thesis consists of 7 main chapters.


Chapter 1 is the introduction about the problem giving by problem definition, the
objectives which are aimed to achieve, and structure.

Chapter 2 is giving the analyses of situation with the overview of economy and
culture from the Netherlands and Vietnam, also the theory of cross culture.

Chapter 3 is involved in analysis about Vietnamese market with all aspect of


exporting, Vietnamese fishery industry, segmentation, competitors and SWOT
analysis.

Chapter 4 gives relevance to the Dutch markets by showing analysis about Dutch
fishery industry, and tools to access Dutch market.

Chapter 5 will be talking about theory of strategic management, as well as the


suggested strategies for Vietnamese exporters and Dutch importers.

Chapter 6 comes to potential risks and possible hedges.

Chapter 7 is conclusion and recommendation.

Last but least, it is following by bibliography and appendices.

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2 Situation Analysis

2.1 Economy overview

2.1.1 Dutch economy


Generally, the economy of the Netherlandsapp.1 is very open and relies on
international trade. In addition, it has a prosperous economy, which depends on
industry, particularly chemicals and metal processing, intensive agriculture and
horticulture, and on its infrastructure, which takes advantage of the country's
geographical position at the heart of Europe's transportation network. Its economy
is as well noted for stable industrial relations, moderate unemployment and
inflation, a sizable current account surplus, and an important role as a European
transportation hub. Industrial activity is predominantly in food processing,
chemicals, petroleum refining, and electrical machinery. The Netherlands, along
with 11 of its EU partners, began circulating the euro currency on 1 January 2002.
The country is one of the leading European nations for attracting foreign direct
investment.
The economy overview of the Netherlands in the recent years is as following:
(Figure 2.1)
2005 2006

GDP (Purchasing power parity) $501.6 billion $629,911 billion


GDP-Real grow rate 0.7% 2.9%
GDP-Per capita (PPP) $30,600 $38,500
Unemployment rate 6.5% 3.8%
Inflation rate 1.7% 1.3%

The labour force by occupation of the Netherlands is services (64%), manufacturing


(29%), agriculture (4%). From the list of countries by GDP app.2 , the Netherlands is
the 16th largest economy of the world at this moment.
The Netherlands has focused its industry in some main sectors such as:
agriculture, metal and engineering products, electronic machinery and equipment,
chemical, petroleum, construction, microelectronics, fishing. In particular, the
agriculture and fisheries sector and traditional Dutch activities account for some
2% of GDP.
Alternatively, the Dutch economy has been positively growing with a lower
deficit (from 2.1% of GDP in 2004, to 0.3% of GDP in 2005). In the early
nineties, its public debt stood at 80% of GDP, and now down to 53% in 2005,
51% in 2006, and is expected to fall below 50% in 2007.

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Based on recording, trading business is seemed to be strong and developing. The
Netherlands, which derives more than two-thirds of GDP from merchandise and
services trade, continued to have a strongly positive balance of goods and services
trade for 2005 of $42.2 billion, close to 7.7% of GDP, and the main contributor to
a current account surplus of close to 8.8% of GDP.

(Figure 2.2)

2005 2006

$365.1 billion $400.5 billion


Exports
Germany(25%) EU (76.8%)
Belgium(12%) Germany (23.6%)
France(10%) Belgium (11.9%)
UK(9%) China (0.9%)
Italy(6%) U.K. (9.3%)
US(4%) U.S. (4.9%).

$326.6 billion $355.8 billion

Imports Germany(17%) EU(55.0%)


Belgium (9%) Germany(19.0%)
China (9%) Belgium (10.7%)
US(8%) China (7.7%)
UK (6%) UK. (6.3%)
France (5%) US. (8.0%).

Although the private sector is the cornerstone of the economy, the Netherlands has
an important and vibrant public sector. The government plays a significant role
through permit requirements and regulations pertaining to almost every aspect of
economic activity. The Netherlands generally pursues its foreign policy interests
within the framework of multilateral organizations. The Netherlands is an active
and responsible participant in the United Nations as well as other multilateral
organizations such as NATO, the EU, OSCE (the Organization for Security and
Cooperation in Europe), CoE (the Council of Europe), the OECD, the WTO, and
the IMF (International Monetary Fund) app. 3 (abbreviation)
(Figure 2.3)

The Dutch economic forecast for 2007


GDP $710.6 billion
GDP-Growth rate 3.1%
GDP-Per capita (PPP) $42,763
Inflation rate 1.6%

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2.1.2 Vietnamese economy

Vietnamapp.4 has lately being considered as a dynamic, stable, and fast-growing


economy.
In general, the overview of its economy is quite promising:

(Figure 2.4)
GDP-PPP $203.7 billion
GDP-real grow rate 7.2%
GDP-Per capita $2,500
Unemployment rate 6.1%
Agriculture 63%
Industry and services 37%
Industrial growth rate 16%

Its industrial products are mainly food processing, garments, shoes, machine
building, mining, cement, chemical fertilizer, glass, tires, oil, coal, steel, paper…
In 2004 Viet Nam’s economic growth for the first eight months of the year was
estimated at 7.5 % and reach the year-end target of 8 %. Up to the end of the year,
the country earned $ 24 billion from export revenue, a 19 % increase year-on-year.

By 2006, Vietnam has reduced the percentage of its people living in poverty less
than $1 a day, means 8% (when it was 10.5% in 2003, 51% in 1990). Deep poverty,
defined as a percent of the population living under $1 per day, has declined
significantly and is now smaller than that of China, India, and the Philippines.
Vietnam is working to promote job creation to keep up with the country's high
population growth rate. Furthermore, private sector obtained strong growth of 37%
with investment up by 32%. The sector has generated between 1.6 and 2 million
jobs so far this year. As a result, the government has made progress in reducing
poverty and maintaining robust rates of economic growth.

The value of industrial production reached 354 trillion VND in 2004, 16 % more
than in 2003. The proportion of industrial production value in the country’s GDP
rose to 41.4%. Of the total industrial production value, the private sector accounted
increasingly for 26%, and the foreign-invested sector is 37%, the highest level so
far.

Economists say Vietnam's economy is making impressive strides recent years. As


follows, it shows a huge growth in exports and imports. The export value of
industrial products continued to grow year-on-year, and stood at an estimated
$18.59 billion in 2004, accounting for 72.1% of the country’s export value.
Accordingly, the export figure is 6% higher than the target set by the National
Assembly for the whole year. Based on balance of payments data, in 2005 exports
reached $32.4 billion, up by 22% year on year, while the import bill increased by
around 16% year on year to $33.3 billion.

Going along, Vietnam economic growth is expected to top 7% in East Asia and the
Pacific (in top 3 after China, Singapore), while developing economies in the region
are expected to expand by more than 8% (the World Bank forecast).

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With a lot of favorable signs, Vietnam has become key partner of the EU in
Southeast Asia. In 2005, two-way trade between Viet Nam and the EU reached $9.7
billion and total registered investment capital of the EU in Vietnam posted $5.25
billion. Regarding investment, EU countries were among the first investors to come
into Vietnam. By the end of 2004, they had invested a total of $6.9 billion,
accounting for 9% of foreign investment in Viet Nam. Then the EU poured more
than $293 million into Vietnam, representing 64.8% of the total foreign direct
investment (FDI) flow into the country in the period.

Last but not least, Vietnam's accession to the World Trade Organisation on January
11th 2007, will provide an important boost to the economy and ensure the
continuation of liberalising reforms during the forecast period, as well as help
Vietnam to improve the country's business operating environment.

2.2 Cross culture

2.2.1 Theory of cross culture

As an idiom people usually say: “In Rome, do what Romans do”, since a long time
people realize that culture is a big side of every country and appreciation is always a
“should” to do.
Nowadays, business in the world becomes more and more international, global as
well. Naturally, the top goal of any company in this world is making the greatest
profit. Especially companies in international trade, a good partnership is
recommended for its business to cash in overseas. Culture is different from every
continent, and obviously different from each country. In other words, understanding
the ways of the earth’s other people is an essential skill.
Someone said “All human being are completely the same, completely different, and
partly the same, and partly different”. For instance, people have cultures, however
the culture of each is different from others. The concept may be simply illustrated
as:
(Figure 2.5)

Personality

Culture

Nature

Culture is powerful and invisible. The effects of it may be out of reach. Culture is
mostly defined as “The grand total of all the objects, ideas, knowledge, ways of
doing things, habits, values, and attitudes which each generation in a society passes

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on to the next”. In other words, culture is a pattern of beliefs and expectations
shared by the organisation.
Moreover, it is also noticed in different types:

(Figure 2.6)

CU
LT
UR

Culture as Culture as Culture as a Culture as


Culture as
Furthermore, people within
worldview the symbols
same culture will stabilizing
carry different evolutionary
cultural
civilization
layers/level in their mental programming: mechanism psychology

Furthermore, people within the same culture will carry different cultural layers/levels
in their mental programming:
(Figure 2.7)

Cul
tur

National Regional Gender Generation Social class Corporate


level level level level level level

On the whole, every culture has three major key elements: Shared values, Beliefs,
and Behavioural Norms. It is said to be difficult to be well acquainted with people
in the same culture. That means it is even more difficult in order to get used to the
new culture. In a cross-cultural situation, the problem is mostly doubled because
we then have to know the Shared values, the Beliefs, the Behavioural Norms from
two cultures, not from one as before. This is to say the need to study, understand
and integrate the new culture is largely necessary when we are doing business
with organisations that are from other culture. To sum up, the better understanding
of culture/cultural differences, the greater success in business and target market.

2.2.2 Dutch business culture

General speaking, the Dutch society is egalitarian, individualistic, and modern.


The people are modest, tolerant, independent, and self-reliant. They value
education, hard work, ambition and ability. In addition, they have pride of their
cultural heritage, rich history in art and music. They are greatly involving in the

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international affairs. When having business contacts with a Dutch firm, there are
some points that the foreign party should take into account.

When you first meet the Dutch partner, the Dutch will shake hands and say their
last name, not “Hello”. Identify yourself is considered important mandatory to a
Dutch. When entering a meeting room, if you are not introduced by your
acquaintance, you do it yourself. It is customary to shake hands with everyone
presenting there. Shake hand again when you leave.

It is appropriate to discuss during lunch or dinner. Business breakfasts are not very
common. One should always ask if the host expects your spouse/partner to be
present at a business function. In most cases, it is considered rude to leave the
table during dinner (even go to the bathroom).

Having an appointment with Dutch is a serious punctuality. In case of lateness,


missed appointment, postponements, or changing the time of appointment, it
should manage in a timely manner. However, those cases mostly lead to a bad
impression from Dutch. Therefore, awareness of being on time is a “must”.

When doing business in the Netherlands, the appropriate wearing for men are suits
and ties. It’s better not to roll up the sleeves of your shirts. Sometimes sport coats
are acceptable. Women should wear suits or dresses. In a conversation, one should
not mention “Holland” as a synonym for the Netherlands because “Holland” is
only a region in the Netherlands.

The Dutch tend to get right down to the business. They maintain lots of eye
contact while speaking, as regard to honesty. Dutch people are frank and direct,
hence they give straight “Yes” and “No” answers. When they have a
disagreement, perhaps they will argue but rarely means an offence. The Dutch
avoid giving superlative compliments. Mostly, “Not bad” or “OK” is remarked as
praise.

At business meeting, gifts are not generally expected. Besides, business cards are
exchanged during or after the conversation. On the whole, the business
presentation should be practical, factual, and sloppiness is never acceptable.

As far as it is concerned, Dutch have a small difference in negotiation process,


compare to Vietnamese. During the negotiation process, the Dutch will pay more
time for the decision-making process. They tend to carry it very carefully, step by
step with a well-prepared knowledge and great care of research. Once the decision
is dealed, it would be rare to change it, and the work will be implemented soon
and steadily. On the contrary, the Vietnamese may go the other way around, their
decision-making process may take less effort. However, on the way of
implementation, it may speed down, it may have unexpected negotiation to gain
more profit. The explanation can be expressed in brief, as being showed
following:

(Figure 2.8)

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DUTCH
Fast

Slow

Decision-making Implementation

VIETNAMESE

Fast

Slow

Decision-making Implementation

Some other aspects that should pay attention to, such as:

• Ostentatious behaviour is avoided.


• The Dutch value privacy and seldom speak to strangers
• Do not discuss money, salary or ask personal questions
• Do not use the middle finger to point.
• Keep your hands out of your pockets while talking to someone or shaking
hands.
• Always ask before lighting up a cigarette.

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2.2.3 Vietnamese business culture

Culture variations app 5 and Bureaucracy and Culture app 6 can affect the way people
communicate. As a Communist Asian country, Vietnamese culture more or less
has characters belong to high-context communication. Perhaps some people may
find difficult to deal with this because one Vietnamese word has many meanings,
non-verbal gestures may have different meanings in different circumstances.
Despite the complexity, you will understand and get used to it if you pay a little
attention.
In general, Vietnamese culture stresses on tradition showing by their great
importance to family and honouring their ancestors.

In business, when you are initially contacting with a Vietnamese organisation, it is


often the best to be introduced through a third party which is acquainted by the
organisation. In case you want to have self-introduction by your own, it is better to
begin with an explanation of what led you to contact this particular organisation.
In Vietnam, the business meetings, and face-to-face discussions are more favoured
than telephones calls or letters. Normally, the first meeting is organised as a
formal introductory session.

The common greeting in Vietnamese is saying “Xin chào” + given name + title.
“Xin chào” is used both when you want to say hello and goodbye. The
Vietnamese shake hands with both men and women at the beginning and the end
of the meeting. Particularly, members of the same-sex may hold hands or putting
arm around someone as regarded as being friendly.

However, they rarely give women a greeting kiss on her cheeks or hands because
it is mainly offensive to Vietnamese women. Instead, you may shake hands or
bow your head slightly to show respect as the following picture:

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In majority, Vietnamese names are structured as:
Family name + Middle name + Given name.
Women always keep their family names once they marry.
In honorific case, a person will be addressed as: Mr./Mrs…+given name, instead
of their family names because there are many people with the same last namesapp.7.
For example: Trương Đức Trung, will be addressed as Mr.Trung

Family name + Middle name + Given name

Trương Đức Trung

When meeting, business cards are always exchanged in the beginning. Asian in
general and Vietnamese in specific view the exchange of business cards as a very
necessary opening ritual. “The Vietnamese often use both hands to receive and
give cards and also slightly bow their head to indicate respect”. In order to show a
greater appreciation, you may take a look at the card to pronounce the name and
title of your counterpart. In particular, the card is always given to the most senior
first.

Business wearing may be a suit and a tie for men and suit or dress for women. The
trend in the South is to be more casuals, suit jackets are worn only on very formal
occasions and first meeting. Moreover, be aware that it may lead to miss-
considered if women wear heavy makeup or have revealing clothing.

Vietnamese in meeting seldom give opinion due to the fact that behind the scenes
is complicated and the apparent decision-making is mostly not summed up by
only one person.

“Business gift is fairly given at the end of a meeting or during a meal in honour of
your business associates”. The perfect gifts could be something with your
company logo or typical souvenirs from your country. Nevertheless, it should be
very careful when giving gifts in an office, because in most cases, it is
accidentally assumed as a bribe.

Apart from that, there are some other aspects should be also noticed, for example:

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• Do not touch someone’s head
• Do not stand with your hands on your hips, especially when talking to elder or
senior people
• Do not place one or both hand in your pockets when walking.
• Do not put one’s feet on a table or desk. It is consumed as being rude in
Vietnam.
• Do not pass anything over someone’s head.
• Pass objects with both hand to elder people
• Do not cross middle finger over fore finger because it is obscene in
Vietnamese culture.
• Sometimes nodding only means they are listening, it does not mean “Yes” in
this case.
• Avoid summoning someone with a curled index finger. People might beckon
someone who is younger or lower “status”. To beckon, it should extend your
arm, palm down and move your fingers in a scratching motion.
• When Vietnamese receive compliment, normally they deny it. They consider
it as the modesty.
• Dates are shown in day/month/year format.
• Decisions are made by committee.
• Corruption is still widespread.

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3 Vietnamese Market Analysis

3.1 Exporting

The effect of export

Obviously, selling abroad helps to gain economy in production at home, which


means lower prices to consumers of domestic products. Export brings in foreign
exchange, lowers the balance of payment, increases quality of life and raises the
Gross National Product (GNP) of a country. Moreover, for the individual firm, a
lowering of products costs tends to improve its competitive position both at home
and abroad. In general, export may also have an influence on the general business
conditions of a country. Particularly, for its individual firm, export may help to
enhance domestic competitiveness, increase sales and profits, gain global market
share…
“During a domestic business downturn, exports generally tend to hold steady and
sometimes even increase, thereby softening the effect of the recession”.
Namely, exports will tend to have a positive effect in a country.

Methods of international payments

There are many ways to make and receive payment in international trade. Due to
the physical distances between buyer and seller, and the fact that the transaction
may have taken place without the two parties actually meeting, minimizing
exposure to risk is on the minds of both parties. The buyer wants to make sure
they receive their order in acceptable condition and on time, and the seller needs
to know they will get paid for it.
Here are some common methods of payments that have been applied during
international trades:

Letters of Credit (L/Cs)

This is an ideal method in international trade of regulating the interests of buyers


and sellers in an even-handed manner. A letter of credit represents a bank’s
commitment to pay a specific sum to the supplier of merchandise, against receipt
of a specified list of documents with an agreed time frame.
The flow diagram can be simply drawn as:

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(Figure 3.1)

SELL Contract BUY


ER ER
Step 1

Credit application
Step 2
Step 4
Advice

Step 3

Seller’s Bank Credit


Buyer’s Bank
(Advising (Issuing Bank)
Bank)

• Step 1: The buyer and the seller conclude a pro-forma invoice


or sale contract providing for payment by documentary credit.
• Step 2: The buyer instructs his/her bank (issuing bank) to issue
a credit in favour of the seller
• Step 3: The issuing bank asks another bank which is usually in
the country of the seller, to advise/confirm the credit
• Step 4: The advising bank informs the seller that the credit has
been issued.

With this method of payment, the process works both in favour of both the buyer
and the seller. It verifies that the payment will be guaranteed when the bank is
presented with concrete documents. Most letters of credit are "irrevocable", once
the importer has had them sent, which means it cannot be changed unless both the
buyer and seller agree.
In most cases, Vietnamese exporters apply for 90-day L’Cs, which means the
importers need to pay within 90 days since the goods are on the ship.

Bill of exchange/Draft

A bill of exchange is a negotiable instrument that is easily transferable from one


party to another. Normally this instrument is used when exporters and importers
have established good relationships. In short, the bill of exchange is a written
order from the seller to the buyer to pay a specific sum of money on a specific
day. The exporter ships the goods, and then gives the documents (including the
bill of lading necessary to claim the goods at the foreign port) to his bank
(advising bank), which will forward them to a bank in the buyer's country (issuing
bank), along with instructions on how to collect the money from the buyer. When
the issuing bank receives the documents, they will contact the buyer and provide
documents to the buyer only when the buyer pays.

(Figure 3.2)

19
Goods
SELLER BUYER
Step 1

Money
Document

Step 2

Step 3

Step 4 Document

Advising Issuing
Bank Bank
Money
Step 5
• Step 1: As soon as the seller receives the credit, which can meet
terms and conditions, the seller is in a position to load the
goods and dispatch them.
• Step 2: Then the seller sends the documents to prove that the
shipment to his advising bank.
• Step 3: The advising bank checks the documents against the
credit. If the documents meet the requirements of the credit, the
bank will pay/ accept/ negotiate, according to the terms of the
credit.
• Step 4: The advising bank sends the documents to the issuing
bank.
• Step 5: The issuing bank checks the documents, if they meet the
credit requirements, issuing bank will reimburse the advising
bank who has paid/ accepted/ negotiated under the credit.

Cash in advance

In some cases, exporters might request cash payment in advance of shipment. This
is the easiest payment from and is typically used when samples or small quantity
shipments. It is also used between buyers and sellers who have already established
a mutual trust. On the buyer’s behalf, this method of payment assumes absolute
confidence in his seller. For the seller, it is the fastest and simplest form of
payment.

For Vietnamese exporters, they might accept the payment of cash after three or
four times transfer with their clients by L/Cs. In principle, buyers pay first 20% of
total amount in advance, next 20% when the goods are on ship, and last 60%
within two or three months coming up.

Sales on open account

20
With this method, goods are paid after delivery. Namely, the exporters receive
payment after the importers has received and inspected goods. This technique is
frequently used in selling between intra-corporate to its branches or its
subsidiaries. Sales on open account is more often in the area where exchange
controls are minimal and exporters have long-standing relations with buyers in
nearby or long-establish market.

Incoterms

Incoterms are a set of rules for the interpretation of the most commonly used trade
terms in international trade – International Commercial Terms. The International
Chamber of Commerce (ICC) first published them in 1936. The latest update was
in 2000.
The terms describe the condition of delivery, the passing of the risk from seller to
buyer, customs affairs and the splitting of cost in detail. Delivery, risks and costs
are known as the critical points. Most of all, the main purpose of Incoterms is to
clearly set out the obligations of the seller and the buyer in relation to the delivery
of the goods and the division of functions, costs and risks related to the delivery.

In general, the thirteen Incoterms are split into four distinct groups:
(Figure 3.3)

Group E

Departure- Where the


goods are made available EXW Ex Works
to the buyer at the seller's
premises

Group F
FCA Free Carrier

Main Carriage Unpaid-


Where the seller must FAS Free Alongside Ship
deliver the goods to a
carrier appointed by the
buyer FOB Free On Board

Group C
CPT Carriage Paid To

Main Carriage Paid-


Where the seller must CIP Carriage and Insurance
contract for the carriage
of the goods without Paid to
-assuming risk of loss of,
or damage to the goods or
CFR Cost and Freight

21
additional costs due to
events occurring after CIF Cost, Insurance and
shipment Freight

Group D
DAF Delivered At Frontier

Arrival- Where the seller


has to bear all costs and DDU Delivered Duty Unpaid
risks required to bring the
goods to the place of
destination DDP Delivered Duty Paid

DES Delivered Ex Ship

DEQ Delivered Ex Quay

In case of carriage of good by sea, most of Vietnamese exporters and their clients
agree in term of FOB. By this term, the seller has to pay for the costs for transport,
and the buyer is the one who choose the ship and pays for the freight. Once the
goods have passed the railing of the ship, the seller is no longer at risk concerning
them.

Costs and risks sharing as following:

(Figure 3.4)

Costs Risks
Packing Seller Seller
Pre-forwarding Seller Seller
Outwards customs clearance Seller Seller
Loading onto the main transport Depending on contract Depending on contract
Main transport Buyer Buyer
Transport insurance Buyer Buyer
Uploading off the main transport Buyer Buyer
Inwards customs clearance Buyer Buyer
Post-forwarding Buyer Buyer

3.2 Vietnamese fishery

Fortunately, Vietnam has a great favour in its fishery industry due to the
advantages which are brought by its natural environment. With its particular
terrain, rivers and oceans in Vietnam give a special condition for fish app 8 growing.
Especially, every part of the country has its own region which has a strength in
some particular products. For example: Mekong-Faces of a River, Ô Môn-

22
Rosenberg Shrimp, Cà Mau- The Shrimp Delta, Bến Tre-The White Clams, Cần
Thơ-The Land of Pangasuis, Phú Yên-The Tuna, Nha Trang-Street of the
Lobsters. That is the reason why Vietnamese fisheries have their products in
variety and diversification. Especially, the Tra fish, Basa fish, which are very
popular now, can be only raised best here with the taste and quality that no
products from other countries can compare to. Vietnamese Tra and Basa catfish
now are available in 65 countries and territories worldwide.

The catching field is distributed as follows:

(Figure 3.5)
Southeast 48,6% of catchments

Southwest 12,1% of catchments

Central coastline 14,3% of catchments

Ocean floating 7,1% of catchments

Tonkin Gulf 17,9% of catchments

In recent years, the Vietnam Fisheries Association has focused on reorganizing its
operating structure from the central down to local levels, implementing modern
fisheries encouragement models, expanding international co-operation and
promoting trade, export and investment activities. Besides, Vietnam is now the 6th
largest seafood exporting country worldwide, and it will be a significant global
player in the seafood market in the years to come. Major exported products are
frozen shrimps, cuttle-fish, octopus, various types of fish, and dry sea food, of
which fish products made up 371,000 tons, while frozen shrimps accounted for
138,000 tons.

In 2005, seafood from Vietnam was exported to 105 countries and territories in
the world. Moreover, the export to reach these markets has strongly increased:
196% in Russia, 53% in Belgium, 55% in France, and 82% in the Netherlands.

23
In 2006, Vietnamese seafood has the most signficant growth in EU market,
increase 87% compare to previous years. (Figure 3.6)

Value of seafood exporting in EU market, 2006


Value (Million$)

102
100
98
96
94
92
90
88
y

ly

in

m
an

nd

Ita

iu
Sp
m

rla

lg
er

Be
he
G

t
Ne

Countries

Since the beginning of 2006, the fisheries sector has net 3.4 million tons of
seafood, a rise of 8% over the same period last year, of which aquaculture
breeding products reached over 1.5 million tons. During this year, Vietnamese
seafood export value reached $3.3 billion, $500 million above the target,
increasing of 21.6%.

(Figure 3.7)

Main exported products in 2006

27%
42% Shrimps
Frozen fish
Cephalopod
4% Others

27%

24
Accordingly, markets and seafood structures also made significant progress. With
regard to a report by non-governmental organisation Inforfish in Asia, Vietnamese
seafood export increased 983-fold in the past 10 years.
In addition, total 209 Vietnamese enterprises are allowed to export seafood to the
EU, and Vietnam is included into the EU first list of seafood exporters. So far, the
EU takes 23.4% of Vietnam’s total fishery exports, ranks the second biggest market
of Vietnamese seafood export.
(Figure 3.8)

Value of Vietnamese seafood exporting in 2005,


2006

1400
1200
Value (million$)

1000
800
600
400
200
0
Japan USA EU Others
Countries

Year 2005

Year 2006

In the year 2006, Vietnamese seafood exports significant grow in three main
markets: Japan, US and especially EU. Moreover, in 2007, prediction will sate
a 10%-15% increase in order from EU customers.
(Figure 3.9)
Quota of Vietnamese seafood exports in 2006
Vietnamese segmentation

Japan
Market

1 US
EU

0 50000 100000 150000 200000 250000 300000 350000


Tons

25
3.3 Segmentation

Market segmentation is always one of the significant issues in a company’s


business. Segmentation is breaking down the market for a particular product into
segments of customers. By doing so, the firm can frame policies to the need of its
specific segmentation, which means can help to obtain greater profits.
To exporters, the issue of segmentation is even more important due to some
differences between countries, for example: economic, cultural and political
environment, buying behaviour...
There are at least 4 points that segmentation should meet to be effective:
• Measurability: the degree to which segments can be identified or measured
in term of size, and purchasing power.
• Accessibility: the degree that the segments can be effectively reached and
served.
• Profitability: the degree to which segments are large or profitable enough
to serve.
• Actionability: the degree to which effective programs can be formulated
for attracting and serving the segments.

In general, Vietnamese exporters tend to use geographical and demographical


aspect to segmenting their business markets.
• Geographic: world region, country, country region, city or metro size...
• Demographic: industry, company size, location...

They want to diversify their export markets. Currently, three major clients of
Vietnam are EU, US, Japan. In particular, the EU is a large and stable market
which consumes about 20% of Vietnamese seafood exports. Moreover, Dutch
clients account for about 13%-15% of Vietnamese seafood exports with the major
customers are wholesalers, distributors…
In general, the Netherlands is one of the big markets of seafood importing in
Europe. In order to fulfil the strong growing demand, it imports seafood from
many countries in the world. Even it does not have a big population, but it still
ranks as the 2nd biggest exporter in EU due to its re-exporting to neighbour
countries. This is to say, Netherlands is a very potential market for Vietnam to
expand.

26
(Figure 3.10)

Volume of Dutch seafood imports

1000

800

600
Tons

The Netherlands
400

200

0
1990 1995 2000 2003 2004
Year

In particular, The Netherlands is considered an important and distribution centre


to its position as a gateway to Europe with a big international seaport, extensive
train system, and routes linking with other countries. The advantage supports a
stronger development in two-way trade between Vietnam and the Netherlands.
Recently, it has seen tremendous growth in the volume of exports from Vietnam
to the Netherlands with the value of seafood export is about $31.5 million.

3.4 Competitors

Seafood market is a very competitive and tough place for business players.
Changing the structure of seafood exploitation, the sharp increase of seafood
demand, the strengthening of protection measures and changes in consumption are
bucking the global fisheries sector. The changes in the seafood market have made
great influences on seafood processors and traders. About 180 countries are
involving in the world seafood market.
As one may expect, Vietnam seafood has been growing to be a big supplier in
international market even it still has some competitors from the same continent.
China is one of Vietnam’s competitors in seafood market. Due to a huge
population, China has strength in labour aspect, especially the low labour costs.
With a quick response to the new trend in the market, China has a large
aquaproduction volume in the world. Recently, China buys catfish breeds from
America, raises and re-exports to international market. That is to say China
becomes Vietnam’s competitor in catfish category.
Other competitor may be assumed as Thailand. Thailand is a very price
competitive and is able to supply the fish variety, and shrimps in particular.
Thailand is also a neighbouring country which provides distribution advantages to
its live fish suppliers.
Bangladesh, Myanmar, Indonesia, India have advantages when EU give those
countries a tax rate of 0%, while the tariff for Vietnam is 4%.

27
However, Vietnamese seafood is more competitive than Indonesian and Indian
products in terms of quality, the most important factor for importers.

3.5 SWOT

3.5.1 Strengths

• Resources: natural condition brings back a lot of advantages and


strengths for the fishery industry. The country has a coastline of
3260km, with 112 river mouths, creeks, with the sea territory of
226,000km2, with 4000 big and small islands, creating many harbours,
gulfs, lagoons, and catching fields with the marine resource of almost 3
million tons.
• Product speciality and variety: due to the natural character of water
where sea products are raised, some products from Vietnam have the
typical taste and quality that other competitors cannot achieve, for
example: catfish, Tra fish, Basa fish, tiger shrimp…
• Product prices are competitive. In general, Vietnamese material costs,
labour costs, manufacture costs…are assumed as low. As the result, the
product selling prices are vying and acceptable.
• Basically, Vietnamese workers are hard working, flexible, and adaptive.
They’ve learnt and trained to keep up with the changing trend in its
business.

3.5.2 Weaknesses

• Weak management capacity: the legal systems of Vietnam’s importers


are quite different from its systems. As a result, competitiveness and
capacity in settling trade disputes would be limited unless management
acknowledge the differences.
• The fisheries sector’s scale is also still modest, focusing on in-shore
catches, while the application of advanced technology in the sector
worldwide has expanded widely.

3.5.3 Opportunities

• Vietnam joins WTO. There will be opportunities for Vietnamese


fisheries products in particular to enter the world market. Preferences in
terms of tariffs, product origins and non-tariff barriers as well as fair and
equal treatment in commercial disputes will create favourable conditions
to improve the competitiveness of Viet Nam’s fisheries products. And in
return, Vietnam can proceed against any foreign partners if they violate
international commercial rules.

28
• Vietnam gains important achievements in term of stability and economic
development. It may give a better impression for foreign customers to
establish business relationships.
• High growth in consumption of marine and aquatic products: people
have a greater concern about seafood due to many scientific researches
conclude that a regular consumption of aquatic products is very good for
health. Especially, Dutch people have a large passion for seafood.
• Tourism is significantly developing. People are more enjoy eating out.
As a result, the demand is possibly increasing.
• Recently, Vietnamese government give many supports to boost the
seafood exports, especially Tra fish and Basa fish.
• According to ASEAN commitments, Vietnam will reduce tariff to 0-5%
by 2006, and 0% by 2010. It goes without saying that there will be less
tariff barrier for trading, and trades will favourably grow.
• EU imposes low tariff, 4%, when importing seafood from Vietnam while
Thailand gets the rate of 14%.
• Recently EU offers preference on investment and technology.
• Increasing in bilateral or long-term business relationships, it helps to
save time and costs, enhance the efficiency in quality control,
phytosanitation right, phytosanitation standard (sanitary requirement) …

3.5.4 Threats

• Natural resources are exhaustively exploited, with very little possibility


for renewal
• Few Vietnamese exporters only pay attention to profits and ignore
product quality matter, or exceed the antibiotic level allowed. It may
cause bad image for Vietnam seafood on the whole, when EU gets
stricter in phytosanity standard and quality control.

29
4 Dutch Market Analysis

4.1 Dutch fishery

The Dutch fisheries sector is becoming more international. Dutch shipping


companies are owners or co-owners of German, French or British trawler fleets.
Dutch shipowners are also very active in countries outside the European Union
(EU). The cutter sector has business interests in many EU member states.
In the context of the Common Fisheries Policy of the EU annual catch quotas are
allocated to prevent stocks from being depleted. The Dutch policy aims to
improve a responsible fisheries based on sustainability. In implementing this
policy, the focus is on the distribution of responsibilities in fisheries between the
industry and the government and on the relation between fisheries and nature.

The Netherlands is an important trader in fish. In 2000, its imports were about 1.4
billion euro. Dutch households have spent increasing amounts on fish products
between 1995 and 2000. In 2000, 315 million euro was spent on fish products, up
by 39 % compared to 1995. The Dutch fishing industry can be divided into sea,
coastal, inland and shell-fish fisheries. Sea fishery comprises commercial harvest
of varieties outside the coastal waters, by either cutters or trawlers. The biggest
cutter fleet in the Dutch fishery consists of over 400 fishing-boats.

The agriculture and fishery sector account for 3% of the Dutch GDP. About 60%
of agriculture products are exported. Marine fishery is the most important sector
in the Netherlands’ fishing industry. The global fish catch in 2000 was valued at $
81 billion, and the international fish trade was worth $ 55 billion. Over the last
thirty years, demand for seafood products has doubled and is anticipated to grow
at 1.5 % per year through 2020.

(Figure 4.1)

Stocks Total food


Production Imports Exports
variations supply

Ton live weight

Fish for direct human


453 321 777 585 921 706 71 486 380 686
consumption

30
Value of landings by fish auction ($ million)
(Figure 4.2)

Site 1997 1998 1999 2000 2001 2002

Urk 133 147 165 156 157 141

Ijmuiden 71 67 66 62 59 52

Den Helder 52 57 64 66 63 52

Goedereede 44 44 44 44 44 40

Harlingen 37 43 57 53 62 11

Lauwersoog 36 76 46 44 45 37

Vlissingen 41 37 40 44 44 40

Scheveningen 27 27 26 27 26 21

Breskens 13 13 13 13 19 17

Den Oever 10 13 19 14 22 15

Colijnsplaat 9 10 12 10 12 9

TOTAL ($ million) 475 501 553 535 552 471

By foreign vessels 137 142 160 156 164 138

Marine farming in the Netherlands is dominated by mussel culture on designated


culture grounds in the delta of Zeeland, particularly in the Eastern Scheldt, and the
Wadden Sea. Some 51 companies in 2002 produced in total 45,000 tons,
representing a total value of some $86 million. Production stands currently at
about half the level of the late nineties.

(Figure 4.3)

Estimated employment (2002):


Fish production sector: 2650
Fish auctions: 400

Aquaculture sector: 350

Processing and wholesale sector: 8120

31
Marketing: 5000

Landings sea and coastal fisheries: $ 597 million


Shellfish fisheries (mussels only): $ 86 million
Inland fisheries: $ 8 million
Aquaculture (freshwater): $ 39 million

A further 120 companies acted as wholesale importers. The turnover of wholesale


companies that do not process fish was $0.9 billion.

(Figure 4.4)

Companies (%) Turnover (%)

Processing
Round and flat fish 31 38
Herring 8 7
Smoking(salmon, eel) 8 4
Shrimps 2 15
Shellfish 11 11
Wholesalers (national) 19 12
Sea frozen pelagic fish 2 12
Others 19 1

Total 280 companies $ 2.3 billion

Wholesale/importers 120 companies $ 0.9 billion

Fish accounts for approximately 7.3 % of the average daily protein intake of
Dutch (7.8 g per day per capita). The Netherlands have a supply of 24.5 kg per
year per capita of fish and fish products. The Netherlands is one of the few EU
member states with a positive trade balance in fishery products. In 2002, it
imported 641,000 tons valued at $1.6 billion while the exports were $2.5 billion.

32
(Figure 4.5)

Companies (%) Turnover (%)

Processing
Round and flat fish 31 38
Herring 8 7
Smoking(salmon, eel) 8 4
Shrimps 2 15
Shellfish 11 11
Wholesalers (national) 19 12
Sea frozen pelagic fish 2 12
Others 19 1

Total 280 companies $ 2.3 billion

Wholesale/importers 120 companies $ 0.9 billion

Fish accounts for approximately 7.3 % of the average daily protein intake of
Dutch (7.8 g per day per capita). The Netherlands have a supply of 24.5 kg per
year per capita of fish and fish products. The Netherlands is one of the few EU
member states with a positive trade balance in fishery products. In 2002, it
imported 641,000 tons valued at $1.6 billion while the exports were $2.5 billion.

4.2 Dutch market access

4.2.1 Regulations

Certification and documentation requirements for shipments into EU member


states differ depending on the product. For most product groups, requirements are
harmonized. Seafood products imported into the Netherlands need to be
accompanied by a veterinary certificate.

In accordance with its European Union membership, the Netherlands applies the
EU rules that are in force in all EU countries. While the Netherlands has a rather
liberal foreign trade policy, there are a certain number of restrictions, especially
on farm products, following the implementation of the CAP (Common

33
Agricultural Policy), for instance: Certification of Processed Foods with Animal
Products, Certification of Seafood Products…
Exporting countries must have a competent authority that is responsible for
official controls throughout the production chain. In Vietnam, NAFIQUAVED
(National Fisheries Assurance and Veterinary Association) is the agency
recognized by the EU as the official seafood quality examination body in
Vietnam.
About the sanitary conditions, the Netherlands agreed on seafood imports with
Chloramphenicol residue of less than 0.3 ppb gram.

4.2.2 Customs duties

In the Netherlands, trade within the EU is totally free from customs duties,
provided that the country of origin of the goods is one of the European Union
Member States. Nevertheless, when introducing merchandises into the
Netherlands, exporters shall fill in an Intrastate Declaration.

When the country of origin of the goods which are exported to the Netherlands is
not part of the European Union, customs duties are calculated on the CIF (Cost,
Insurance and Freight) value of the goods, in accordance with the Common
Customs Tariff (CCT).
The duties for non-European countries are relatively low, however food-
processing industry sectors have average duties of 17.3%.

4.2.3 Tax rates

Value of importing tax = Value of imported good X Tax rate

In particular, value of imported good is calculated in term of CIF which includes


cost of good, cost of packaging, cost of exporting procedure, exporting tax (if
required), cost of exporting documents, cost of transport to departure harbour, and
insurance.
Tax rate is depending on product categories and origin of imported goods.
Agricultural products are usually imposed at high tax rate, from 0%- 470.8%.
Dutch Value Added Tax is 19%, and reducing fair is at 6%.

4.3 Buying behaviour

In business to customer aspect, seafood is highly popular in the Netherlands. With


a high living condition, Dutch people take good care of health and good attention
to nutrient food. The conviction is even greater when researches come to
conclusion that seafood contains less fat and cholesterol, provides vitamin,
protein, especially omega 3 which helps anti cancer. The average seafood
consumption in the Netherlands is increasing year by year. The average seafood
consumption per person per year in the Netherlands is 23kg, which is higher than
the average of EU in general, 21kg.

34
(Figure 4.6)

Average seafood consumption per


person per year in the Netherlands

25

20

15
Kg

10

0
1988 1990 1992 1994 1996 1998 2000 2002
Year

Moreover, the buying seafood decision is often consequent by awareness of


health, environment or simply by buyers’ personal taste.

(Figure 4.7)

Main reasons for seafood buying decision of


Dutch consumers

15%

48% Health
Environment
Personal taste
37%

In business-to-business consumption, for the most part, importers make a buying


decision process in stages as following:

35
Problem Information Evaluation of Purchase Post purchase
recognition search alternatives decision behaviour

Based on the questionnaire researches app.9, Dutch customers pay much attention to
information of the client and client’s products that they are going to have business
with. In advance, they will contact the exporters to question all their concerns.
Contact would be by e-mail or phones…Then the evaluation is processed with the
most influent points are quality and price of the products, selecting among
alternatives. When the entire requirement is content, importers make their
purchase decision or purchase. In the Post purchase stage, the importers may
experience some level of satisfaction or dissatisfaction. In other to have a long-
term relationship, exporters should monitor and lead their partners to a Post
purchase satisfaction stage.

36
5 Strategies

5.1 Theory of strategic management

Definition of strategic management

“Strategy is a comprehensive action plan that identifies long-term direction for an


organisation and guides resource utilization to accomplish goals with sustainable
competitive advantage, as well as fulfil stakeholders’ expectations.”

In other aspect, strategic management is the process of formulating and


implementing strategies:
(Figure 4.8)

Identify: Analyze Revise


mission, external and mission,
objectives, internal objectives, Implement Evaluate
and environments and then strategies results
strategies select new
strategies

Strategy formulation Strategy implementation

The Knowledge Framework

Knowledge framework helps to structure the issues the companies face and make
choices that improve performance in complex situations where businesses meet
businesses and organisations need to balance risks and rewards across several
decision makers – typically a much more difficult situation than consumer
analysis and sales.
(Figure 4.9)

Knowledge you have


Structural S
t
REWAR r
D
U Dangerous
Knowledge you don’t have n
c
Information
You know you RIS You don’t know
need K you need

Disinformation
37
• Structural: it is where obvious information is enhanced:
management information systems, knowledge management systems...
• Strategic: it is where thought and consideration are foremost in
deriving value from existing information which has not yet brought
value: quantitative or statistical studies of customers, correlations
between customers and revenue or profit, segmentation analysis,
portfolio analysis or scorecard development.

• Uncertain: the area where patterns need to be challenged and


anomalies become paramount
• Dangerous: the area of poor knowledge or gaps about competitor
information and analysis, market research of client perceptions,
regulatory futures…

The 4P’s of Marketing

(Figure 4.10)

Product Price

TARGET
MARKET

Promotion Place

Marketers mostly use the Marketing Mix model- 4P’s as a tool to assist in
defining the marketing strategy. Marketing managers use this method to attempt to
generate the optimal response in the target group by blending the 4 variables in an
optimal way. Moreover, it as well intends to meet the changing needs of the target
market in a dynamic marketing environment.

5.2 Strategies for Vietnamese exporters

5.2.1 Branding

A successful brand is the most valuable resource a party has. The brand name
encompasses the years of advertising, good will, quality evaluation, product
experience and other beneficial attributes the market associate with the product.
Brand image is at the main core of business identify and strategy. In addition,
owning a successful brand name gives the party a uniform worldwide image that

38
enhances efficiency and cost savings when introducing other products associated
with the brand name.

In researching, it presumes that the Dutch market has limited information about
Vietnam seafood. They are not aware that the country is the seventh largest
supplier of seafood in the world and the third biggest producer and exporter of
shrimp. Importers, wholesalers, producers and processors know about Vietnamese
suppliers but they hide the identity of origin, in major.
In general, brand names of Vietnamese seafood did not receive the appropriate
attention while the creation of a brand is a priority for the sustainable development
of the Vietnam seafood industry. This is to say Vietnam needs building brand
name recognition for seafood.
The enterprises must determine which branding strategy to build a brand name.
According to specialists, the strategy for branding comprises six basic steps:
objective identification, market study, product analysis, the creation of "product
characteristics", brand-name design, and finally property registration.

5.2.2 The 4P’s strategy mix

5.2.2.1 Product

Vietnamese sea products are abundant from fresh to frozen, and farmed. However,
the biggest increase is in sales of frozen seafood. The variety in fish categories
also contributes to the reputation of Vietnamese sea products.
The export core should be set to shift to high-value rather than raw products under
a long-term strategy.
Product decisions also include aspects such as function, appearance, packaging,
and warranty…
Figure below is The Product/Market Expansion Grid, a device for identifying
growth opportunities
(Figure 5.1)

Existing Products New Products

Market Product
Existing market
penetration development

Market
New market Diversification
Development

With existing products and the existing market, in order to be more prosperous in
Dutch market, Vietnamese seafood should develop their Market penetration
strategy for its products. This is to say Vietnam indentifies and develops new
market for its current products.

39
In priority, it should be working as well to improve the quality of breeds, quality
of products, and help fishermen and seafood processors reach higher standards of
efficiency and hygiene.

5.2.2.2 Price

“Pricing decisions should take into account profit margins and the probable
pricing response of competitors.”

Vietnam has great resources for producing sea products. Moreover, low cost of
labour and manufacture lead to an advantage for Vietnam in the market price
competition. With the low tariff, 4%, when export to EU market, the price of
Vietnamese seafood is acknowledged as being acceptable and competitive.
However, more and more competitors enter the market, the price competition is
getting closer to the boiling point, for example, Thailand is a price competitive in
shrimp products, China is competitive for catfish….For this reason, Vietnam may
apply a price strategy to keep on the price leader in this market.

With regard to the setting of price, the party will dominate the market if it has
lower costs than its rivals. Low-cost price leadership is considered for Vietnamese
exporters. This gives so much power to the low-cost party (the leader) because the
follower (the rival) will prefer a higher price for a higher profit. By time it turns
out that the follower cannot set the price but accept the price given in the market,
due to the leader in the market has set a lower price. It is even worse when the
rival cannot afford to get into the price war. With this strategy, the price will
come down to a point where the leader can still make profits, but the higher cost
producer will be driven out of the market.

5.2.2.3 Place

Place decisions are those associated with channels of distribution that serve as the
mean for getting the product to the target market or target segmentation. The
distribution system performs transactional, logistical functions.
More distributors are optimistic about the state of the seafood-distribution industry
these days.
Target market is the Netherlands, regard it its location, Vietnam would have some
support its distribution. One of the biggest assets of the Netherlands is its harbour
zone. It is a country with a high level of purchasing power and its market is very
open to competition. On the other hand, the Netherlands is known for being
attracted to its neighbourhood stores and having developed its unique cultural
identity. The distribution market in the Netherlands is comparable to that of other
European countries. Distribution is often done through agents and large
importers/distributors. The Dutch market is very competitive and “price” is the
determining factor for importers who often demand exclusivity on product
distribution from manufacturers. Importer-distributors are very specialized,
segmented into a large number of markets niches. The most important exhibitions
take place in Amsterdam, Utrecht and Maastricht. There are also permanent
exhibition centres which allow the various players in an industry to meet (agents,

40
importers, suppliers have show rooms to greet their clients). It is essential to
participate in these show room activities as Dutch entrepreneurs are often wary of
new suppliers. To achieve this target, the fisheries sector needs to implement
comprehensive measures such as the building of foreign seafood distribution
networks.

5.2.2.4 Promotion

Vietnam urges to expand and increases market share in the Netherlands in seafood
business. Hence, promotion has played an important part in the strategy to achieve
that goal. In fact, The Vietnamese Ministry of Fisheries plans to boost exports this
year by spending more on trade promotion, about $630,000. The funds will be
channelled through the Vietnam Association of Seafood Exporters and Producers.
Proactive investment promotion is an essential feature of a successful national
export strategy. It follows that the organizations concerned with investment
promotion, and those responsible for establishing and maintaining an
internationally competitive investment environment for the country, should be
effectively integrated into the national trade support network. The key word here
is “effectively”. Export promotion should focus on importers, distributors and
merchandisers.
Currently, the common advertising activities that Vietnamese exporters have
applied are: join international fairs (Vietfish in Vietnam, Bremen in Germany,
Conxemar in Spain, Brussel in Belgium…), building websites, advertising by
international fishery magazine…
Speaking generally, depending on the budget allowed, it may choose the best
media for its advertisement strategy.
(Figure 5.2)
Newspaper, magazines (local daily, weekly…)
Business publications (national, regional,
Print media international audiences)

MEDIA
Broadcast television
Electronic Cable television
media Radio
Internet

Others Outdoor
Transit
Direct mail advertising
The most effective way could be join the trade shows for seafood business,
advertising by International Fishery magazine or promoted on many commerce
websites. Moreover, establishing an official website for its own company is highly
inefficient, and saving cost. Besides, direct mail advertising is always the cheapest
method.

41
5.3 Strategies for Dutch importers

5.3.1 Purchasing

Importing is a big decision of purchasing. In order to meet with success,


purchasing should be a process which includes stages such as: information
research about products and products’ supplier, analysis of the market in general,
and evaluation in particular, or being critical to an exporter’s success. Through
some reliable resources, agencies, organisation, importers may find the best
business partners. In addition, purchasing management understands that suppliers
should also be involved in the process. Understanding the sensitivities of suppliers
and learning what can be done to reduce supplier costs will ultimately benefit the
importers’ bottom line.

5.3.2 Negotiating

Dealing with a partner is not an easy work, particularly it is even more difficult
when the partner is from a culture different from yours. As being analyzed in term
of Cross culture, Dutch and Vietnamese have several points which differ from
each other in the negotiation process.
In the aim to gain the best situation for both parties, suggested strategy is interest-
based bargaining, other name is cooperative bargaining. It is a negotiation strategy
in which parties collaborate to find a "win-win" solution to their dispute. In
conclusion, this strategy focuses on developing mutually beneficial agreements
based on the interests in term of the needs, desires, concerns, and fears important
to each side.

42
6 Risks and Hedges

6.1 Definition of hedging

A hedge is an investment which is made to reduce, cover or even completely


eliminate the financial risk of another investment, or the risk of adverse situation
that may occur during the business movements. A part from this, it purchases an
offsetting position or financial instruments for the purpose of offsetting the profit
or loss. In other words, “it is a strategy designed to minimize exposure to an
unwanted business risk, while still allowing the business to profit from an
investment activity”.

6.2 Risks and hedging

Exporting is a business trade spreads widely from countries to countries.


Obviously, it may not only give so many profits, but also some challenges, and
risks. Following are some common risks that Vietnamese exporters possibly
encounter in their business. Besides the risk identifying, the possible hedges are
recommended as well.

6.2.1 Currency risk

• Risk identifying: This risk arises from the change in price of one
currency against another. Namely, the business will be affected (gain
or loss) by changes in exchange rate when currencies are converted. At
this moment, the exchange rate from Vietnamese currency (VND) to
Dutch currency (Euro) is approximate:

2003 2007
1VND= 0.0001 Euro 1VND= 0.00005 Euro
1 Euro = 10,000 VND 1 Euro = 20,000 VND

Namely, VND depreciates against Euro. This is to say the value of


Euro has been growing strongly against the value of VND.

• Possible hedge: this risk is possibly controlled by a forward contract. It


is a pre-agreement states that the holders are obligated to buy or sell
the currency at a specified price, at a specified quantity and on a
specified future date. That is to say, it protects products' value in a
foreign currency against unexpected rate fluctuations for a specific
amount of time.

43
6.2.2 Price risk

• Risk identifying: Basically, it's the risk causes a loss due to unexpected
changing in the market price of the products owning. As the matter of
fact, no one can predict exactly the prices of products whether go up or
down in the future. Here it concerns two cases that exporters may
suffer a loss when:
 The price of raw product goes down just after the exporter
makes his purchasing.
 The price of product in the market goes up just after the
exporter sells products to his clients.

• Possible hedge: the potential hedge in this case is essentially opening a


position “Sell to open”, and close options position by using “Buy to
close”. Namely, it is holding a short position (contract writer) can sell
to open (enter a contract) or buy to close (close a position). In
summary, it will open by signing a Sell Future Contract in the seafood
market at the current price and close the business by signing a Buy
Future Contract at the price the exporter predicts that it can drop to.

6.2.3 Payment risk

• Risk identifying: in some unfortunate cases, the payments of clients are


not guaranteed as it is called delayed payment, and sometimes non-
payment. That is the most major payment risk.

• Possible hedge: as being illustrated in the previous part, some methods


of international payments can be taken into account as hedging, for
example: cash in advance, letters of credit, bill of exchange/draft…

6.2.4 Political risk

• Risk identifying: selling products abroad is highly profitable due to


great margin and brisk demand. However, changes in political term of
regions can quickly result a risk to seller value such as: the creation of
laws that prevent the movement of capital, corruption or prejudicial
actions against companies from foreign countries…

• Possible hedge: some options are using market knowledge and


leverage to obtain the highest quality protection, conducting a research
on the riskiness of a country, or purchasing political risk insurance.

44
7 Conclusion and Recommendation
Vietnamese seafood is more and more popular and appreciated in the international
market. With its reputation and success, there will be a big door for Vietnam to
expand in seafood market of the Netherlands.

Dutch market is open and dynamic, however, it is assumed as competitive, and


very strict in sanitary and quality. Establishing a long-term business relationship
with Dutch partners will take time and should be done together with developing
in every aspect , for instance, in product quality, quantity, brand name…

To the Dutch side, a successful partnership will lead to a successful in business.


Possibly the suggection is to begin with information researches, analysis... Well-
prepared information background and effective middlemen, liaisons also help to
shorten the way to organisations’ goals.

Following the knowledge Framework, the position of Vietnamese seafood is


standing at Strategic area. Vietnamese seafood is newly getting to be well-known
in the international market. In order to be more successful in this competitive
market, Vietnamese seafood shall find the strategy which is appropriate the most,
then implement and develop to derive knowledge, opportunities, and strengths to
virtual values.
Based on the analysis of SWOT, which is mentioned in previous chapter, the 4P's
strategy is greatly suggested to help enterprises succeed. Moreover it needs to
implement, and support measures for the strategy to maintain and expand market
for aqua product exports, some recommendations is briefly summarized as
following:
• Improving the competitiveness of export aqua products.
• Quality is always the most concern from importers, there is a necessary to
improving the quality of Vietnamese sea products. Product producers and
exporters have to apply the HACCP standard, as well as ISO 9000,
completing the quality control system, sanitary requirement. Moreover,
products should be diversified. The product structure would be: live and
fresh products, value added products, frozen processed products.
• Developing in trademark, brand name to achieve a greater recognition.
• Other aspect is improving the price competitiveness of Vietnamese sea
products, increasing raw material supply, opportune giving capital
investment for fishery activities.
• Promotion is one of the keys to a positive result in business. Spending
proper budget in promoting marketing activities, with more marketing at
the macro level.
• Creating direct product distribution may help in cost and time savings.
• In this globalize business, there will be more advantages when enhancing
international cooperation which may contribute to funding, transfer
technology, human development, and market expansion.

45
Bibliography
• Books

“International Marketing”, 2002, Philip R.Cateora & John L.Graham, ISBN:


0071123121

“The Economics of Industries and Firms”, 2002, Ken Heather, ISBN: 027365585X

“Principle of Marketing”, 10th Edition, Philip Kotler & Gary Amstrong, ISBN:
0131212761

“International Marketing and Export Management”, 1998, Gerald Albaum, Jesper


Strandskov and Edwin Duerr, ISBN: 0201419645

“Global Marketing”, 3rd Edition, Warren J.Keegan & Mark C.Green, ISBN:
0130669989

“Management”, 2002, John Schermerhorn, ISBN: 0471435708

“Practices of International Product Trade”, 2003, O.Van Geuns, ISBN: 9080211532

• Websites:

https://www.cia.gov/cia/publications/factbook/print/nl.html
http://fita.org/countries/nl.html
http://www.lei.dlo.nl/publicaties/PDF/2005/PR_xxx/PR_05_10_summary.pdf
http://www.pvis.nl/engels/home.html
http://www.siamcanadian.com/product.htm http://www.seafood.com/Default.aspx?
tabid=30 http://www.euroseafood.com/07/public/enter.aspx
http://www.seafoodtrades.com
http://www.vneconomy.vn/
http://news.bbc.co.uk/2/hi/business/6084910.stm
http://www.boston.com/news/world/asia/articles/2006/11/16/vietnams_economy_mak
ing_strides/
http://www.siamcanadian.com/vietnam-seafood/exports.htm
http://www.foodproductiondaily.com/news/news-ng.asp?n=59553-eu-delegation-to
http://www.sea-ex.com/cgi/ssearch.cgi
http://economist.com
http://www.seafoodfromvietnam.net
http://www.fistenet.gov.vn
http://www.pmforum.org/library/papers/2004/CultureBudapest.pdf

• Others:

Handout of “Strategic Management” course, by professor Bosma, Hogeschool


Zeeland.

46
Appendices
Appendix 1

The Netherlands

Country name:

conventional long form: Kingdom of the Netherlands


conventional short form: Netherlands
local long form: Koninkrijk der Nederlanden
local short form: Nederland

Location: Western Europe, bordering the North Sea, between Belgium and Germany

Capital: Amsterdam; The Hague is the seat of government

Government type: constitutional monarchy

Administrative divisions: 12 provinces

Area:
total: 41,526 sq km
water: 7,643 sq km
land: 33,883 sq km

47
Appendix 2

List by the International Monetary Fund

Rank Country GDP (millions of USD)

--- World 44,454,843


--- European Union 13,502,800
1 United States 12,455,825
2 Japan 4,567,441
3 Germany 2,791,737
4 China 2,234,133
5 United Kingdom 2,229,472
6 France 2,126,719
7 Italy 1,765,537
8 Canada 1,132,436
9 Spain 1,126,565
10 Brazil 795,666
11 South Korea 787,567
12 India 771,951
13 Mexico 768,437
14 Russia 763,287
15 Australia 708,519
16 Netherlands 629,911

48
Appendix 3
Abbreviation
AAF Asean Aquaculte Federation
ADB Asean Development Bank
AFTA Asean Free Trade Area
APEC Asia-Pacific Economic Cooperation
ASEAN Association of South East Asian Nations
CAP Common Agricultural Policy
CCT Common Customs Tariff
CoE Council of Europe
FAO Food and Agriculture Organization
FDI Foreign Direct Investment
FOB Free On Board
GMP Good Manufacturing Practice
GNP Gross National Product
HACCP Hazard Analysis Critical Control Point
ICLARM International Center for Living Aquatic Resources Management
IMA International Marinelife Alliance
IMF International Monetary Fund
INCOTERMS International Comercial Terms
ISO International Standards Organization
IUCN International Union for Conservation of Nature
MRC Marine Research Corporation
NACA Network of Aquaculture Centres in Asia-Pacific
NAFIQUAVED National Fisheries Assurance and Veterinary Association
NATO North Atlantic Treaty Organization
OECD Organisation for Economic Cooperation & Development
OSCE Organisation for Security and Cooperation in Europe
SEAFDEC South East Asian Fisheries Development Center
SIPA Sea product Import and Processing Association
SWOT Strengths, Weaknesses, Opportunities, Threats
UNDP United Nations Development Programme
VASEP Vietnam Association for Aquaproduct Processing and Export
WB World Bank
WTO World Trade Organization
Appendix 4

Vietnam

49
Country name:

conventional long form: Socialist Republic of Vietnam


conventional short form: Vietnam
local short form: Viet Nam
abbreviation: SRV
local long form: Cộng Hoà Xã Hội Chủ Nghĩa Việt Nam

Capital: Hanoi

Location: Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and
South China Sea, alongside China, Laos, and Cambodia

Map references: Southeast Asia

Government type: Communist state

Administrative divisions: 58 provinces

Area:
total: 329,560 sq km
land: 325,360 sq km
water: 4,200 sq km

Appendix 5
Culture variations

• High-Context Culture:

50
“It refers to a culture’s tendency to cater towards in-groups. An in-group being a
group that has similar experiences and expectations, from which inferences are drawn.
In a high context culture, many things are left unsaid, letting the culture explain. High
context cultures are more common in the eastern cultures and in countries with low
racial diversity. It is also conducive to high context situations, where the small group
relies on their common background to explain the situation, rather than words. High
context cultures have a strong sense of tradition and history, and change little over
time”.

• Low-Context Culture:
“It refers to a culture’s tendency to cater towards in-groups. An in-group being a
group that has similar experiences and expectations, from which inferences are drawn.
Much more is explained through words, instead of the context. Low context cultures
change drastically from one generation to the next. Conversations between two
businesspersons from a low-context culture will be direct and structured, specific.
Shared background is not assumed. The person from the low-context culture will
place a much higher value on the words spoken than on the non-verbal aspect of
communications.”

Low-Context Culture High-Context Culture

1. Overtly displays meanings through 1. Implicitly embeds meanings at


direct communication forms different levels of the sociocultural
context
2. Values individualism
2. Values group sense
3. Tends to develop transitory personal
relationship 3. Tends to take time to cultivate and
establish a permanent relationship
4. Emphasizes linear logic
4. Emphsizes spiral logic
5. Value direct verbal interaction and is
less 5. Values indirect verbal interaction and
able to read nonverbal expressions is more able o read nonverbal
expressions
6. Tends to use “logic” to present ideas
6. Tends to use more “feeling” in
7.Tends to emphasize highly structures expression
messages, give details, and place great
stress on words and technical signs. 7.Tends to give simple, ambiguous,
noncontexting messages

Source: http://www.cba.uni.edu/buscomm/nonverbal/Culture.htm
Appendix 6
Bureaucracy and Culture

51
Low uncertainty avoidance
VIETNAM

Marketplace Personnel
Bureaucracy Bureaucracy

Low power distance High power distance

Full Workflow
Bureaucracy Bureaucracy

NETHERLANDS
High uncertainty avoidance

Bureaucracy:

Bureaucracy is a concept in sociology and political science referring to the way that
the administrative execution and enforcement of legal rules are socially organized.
This office organisation is characterized by standardized procedure (rule-following),
formal division of responsibility, hierarchy, and impersonal relationship.

Power distance:

It is the degree to which members of a society adhere to distinction of importance and


accept or adapt to inequalities of status. In other words, it is the index measure the
degree of inequality that exists in a society.

 High power distance: use power and authority as golden rule (mostly). Social
relationships are authoritarian and based on one’s status within the hierarchy.
Demographic differences are magnified.

 Low power distance: tend to minimize inequalities and encourage individual


differences. Roles are lass rigid and demographics are not very relevant.

Uncertainty avoidance:

It is the index measures the extent to which a society feel threaten by uncertain or
ambiguous situation.

Appendix 7

52
The most common Vietnamese family names

The Most Common Vietnamese Family Names

40.00%

35.00%

30.00%

Nguyen
25.00%
Tran
20.00% Le
Pham
15.00% Phan
Vo
10.00% Dang

5.00%

0.00%
1
Family Names

53
Appendix 8
Fish Dictionary

Vis
Fish (English) Cá (Vietnamese) Pescado (Español) Poisson (Français)
(Dutch)
Bluefish
Anchovy Ansjovis / cá trổng boquerón, anchoa anchois
Sardine Sardine / cá mòi sardina sardine
Mackerel Makreel / cá thu caballa maquereau
Bonito echte bonito / cá ngừ bonito thon rouge (bonite)
Tuna Tonijn /cá ngừ Califonia atún thon blanc
Albacore /cá ngừ thon blanc, germon
yellowfin tuna albacore
amberjack pez de limón
pompano gewone pompano/ cá mục palometa blanca
smelt Spiering / cá ốt-me eperlan
sprat Sprot / cá trích cơm espadin brisling, sprat, esprot
herring Haring / cá trích arenque hareng
whitebait Zeebliek / cá trắng nhỏ goujon
Bream or Porgy
dorade royale,
gilt-head dorado
daurade royale
béryx commun, béryx
red bream rode brasem /cá tráp đỏ besugo
rouge
dentex dentón denté, denti
redfish Blauwrugzalm / 1 loạicá mòi sébaste
scorpion fish Schorpioenvis / cá mũ làn cabracho, rascacio rascasse
grande castagnole,
pomfret, Ray's bream Braam / cá chim palometa negra
brème de mer
sea bream, porgy Zeebrasem / cá mùi dorade, daurade
Couch's sea bream,
pagre
porgy
Seabass family
loup de mer
seabass Zeebaars lubina (Atlantic), bar
(Mediterranean)
meagre, croaker Ombervis corvina

54
grouper, sea perch tandbaars, zaagbaars/ cá rô mero mérou
red snapper rode snapper / cá chỉ vàng huachinango vivaneau
Mullet
red mullet Mul / cá đối đỏ salmonete rouget-barbet
grey mullet Harder / cá đốI xám lisa mulet, muges
Flat fish
turbot Tarbot / cá bơn rodaballo turbot
whiff, megrim Bot / cá bơn gallo
halibut Heilbot / cá bơn lưỡi ngựa hipogloso flétan
brill Griet / cá bơn vỉ rombo, rémol barbue
plaice School / cá bơn sao solla plie
flounder Bot / cá bơn platija flet
sole Tong / cá bơn lenguado sole
angler, monkfish Zeeduivel / cá vảy chân rape lotte
pez de San Pedro,
John Dory Zonnevis Saint Pierre
gallo
dab Schar / cá bơn limande
skate, ray Rog / cá đuối raya raie
Hake and its relatives
hake Heek / cá meluc merluza merlu, colin
cod Kabeljauw / cá tuyết bacalao morue
saltcod stokvis, zoutvis bacalao morue salée
haddock Schelvis / cá êfin eglefino haddock, églefin
whiting Wijting merlán merlan
carbonero o
pollack Koolvis / cá minh thái lieu noir, colin noir
fogonero
ling Leng / cá tuyết hồ maruca lingue
Freshwater fish
pike Snoek / cá chó lucio brochet
perch Baars / cá rô perca perche
trout Forel / cá hồI trucha truite
carp Karper / cá chép carpa carpe
eel Paling / con lươn anguila anguille
salmon Zalm / cá hồi salmón saumon
pike perch Snoekbaars sandre
salmon trout Zalmforel trucha asalmonada truite saumonée

55
Other fish
gurnard, tubfish rode poon / cá chào mào perlón, rubio grondin
weever Pieterman vive
catfish Meerval / cá trê pez gato poisson chat
dogfish doornvis / cá nhám góc pez perro roussette
pez espada,
swordfish Zwaardvis / cá mũi kiếm espadon
emperador
sailfish / cá cờ pez vela
Smoked fish
smoked Gerookte / hun khói ahumado fumé
buckling (smoked
Bokking / cá bẹ hun khói hareng fumé
herring)
gerookte haring / cá trích muối
kipper
hun khói
Roe
roe Kuit / trứng cá hueva oeuf de poisson
caviar Kaviaar / trứng cá muối caviar caviar
salmon roe Zalmkuit / trứng cá hồi hueva de salmón Oeuf de saumon
Crustaceans
jumbo shrimp, prawn Steurgarnaal / tôm panđan langostino
shrimp Garnaal / con tôm gamba crevette
langoustine Langostine cigala langoustine
lobster Kreeft / tôm hùm bogavante homard
rock lobster Langoest langosta langouste
crab Krab / cua cangrejo crabe
freshwater crayfish Rivierkreeft / tôm đồng cangrejo de río écrevisse
Molluscs
oyster Oester / con hàu ostra huître
clam Schlep / con sò almeja clovisse
cockle Kokkel / con sò berberecho coque
mussel Mossel / con trai mejillón moule
venus shell Venusschelp concha fina
olive de mer, haricot-
wedge shell coquina
de-mer, flion, vanneau
razor-shell, razor
messchede, mes heft / con điệp navaja couteaux
clam
scallop Sint-Jacobsschelp / con điệp vieira coquille St.Jacques

56
winkle Alikruik / ốc mút bígaro bigorneau
whelk Wulk / ốc xoắn caracola buccin
Others
sea urchin Zeeëgel / nhím biển erizo de mar oursin
squid Pijlinktvis / mực ống calamar calmar
tiny squid kleine pijlinktvis chipirón, chopito
cuttlefish inktvis, sepia / con mực jibia, sepia seiche
octopus Octopus / con bạch tuộc pulpo poulpe
snail Slak / con ốc sên caracol escargot

Appendix 9
Questionnaire for Vietnamese seafood exporters
Company name:

57
Business:
Website:
Email:

Number of employees in your company

4-20
21-50
50-100+

Annual trade in average

< €500,000
€1 million- €2 million
>€2 million

Do you export seafood products to the Netherlands?

Yes (please go to part A)


No (please go to part B)

Part A

1. What are top 3 seafood products you mainly export to the Netherlands?
     
2. Dutch clients weigh in your total foreign clients:

<25%
25-50%
>50%

3. What is the most influent point in your decision-making to export to the


Netherlands?

Quantity demand
Profit
Partnership
Other

4. Dutch clients pay most attention to:

Quality
Price
Brand name/ packaging

58
Other

5. Which advertising activities you apply the most for your company when intending
international business?

Trade show
Website
Magazine
Brochures/Flies
Other

6. In your opinion, who is the biggest competitor to Vietnamese exporters in the


international seafood market?

China
Japan
USA
Germany
Belgium
Other

7. Do you face any difficulties when export to the Netherlands as below:


(You may choose more than 1 option)

Quality standard/Quality control


Quantity shortage
Political issues
Competitors
Others

8. Have you ever been in the risk of: (you may choose more than 1 option)

Currency risk /Exchange risk


Price risk
Transport risk
Payment risk
Political risk

9. Are use using hedge(s) to cover risks:

Yes
No

59
10. The most common method of payment in your international transaction:

Letter of Credits (L/Cs)


Cheques
Bill of exchange/Draft
SWIFT
Open account
Cash in advance
Other

11. You often contact your Dutch clients by: (you may choose more than 1 option)

Email
Fax
Phone
Liaison
Other

12. Do you have any cultural conflict(s) when doing business with Dutch partner?

Yes, the problem cannot be solved


A little, but we are still good in cooperation
No, not at all

13. Do you want to keep a long-term relationship with your Dutch partner?

Yes, sure
Not sure
No idea
Other comment…

14. Do you have any comment/opinion about exporting seafood to the Netherlands?

     

Thank you very much for your time

Part B:

1. Who is your major customer at this moment?

USA
China

60
Japan
Germany
Belgium
Other

2. The reason you are not doing export to the Netherlands:


(You may choose more than 1 option)

Political issues
Quality control standards
Quantity demand (example: shortage/surplus)
Cultural conflict(s)/contact difficulties
Other

3. Do you want to expand your business in Dutch market?

Yes (please continue with question 5)


No (please continue with question 4)
No idea (please continue with question 6)

4. Please give your main reason(s)

     

5. What do you expect when you plan to expand business in Dutch market?

Increasing market share


Gaining higher profits
Having contribution to your brand name
Other

6. Do you have any comment/opinion?


     

Thank you very much for your cooperation

Questionnaire for Dutch seafood companies


Company name:
Business:
Website:

61
Email:

Number of employees in your company:

4-20
21-50
50-100+

Annual trade in average

<€1 million
€1million - €5million
>5million

Do you import seafood from Vietnam?

Yes (please go to part A)


No (please go to part B)

Part A

1. What are top 3 seafood products you mainly import from Vietnam:

     

2. What do you think about the quality of seafood product from Vietnam?

Very good
Good
Just ok
Bad

3. You think the price of Vietnamese seafood is:

Cheap
Acceptable
High
Too expensive

4. Do you feel it is difficult to bargain with Vietnamese clients:

Yes
No
no idea

62
5. You mostly contact your Vietnamese clients by: (you may choose more than 1
option)

Email
Fax
Phone
Others

6. Have you ever had complaint(s) about seafood products you import from
Vietnam?

Yes (please go to question 7)


No (please go to question 8)

7. The complaint is mostly about:

Quality
Quantity (example: sellers do not supply enough as your requirement…)
Packaging
Delivery (example: late, slow, not on time…)
Price (ex: Sellers change price, or bargain even the contract is signed…)
Other…

8. Do you think Vietnamese seafood products meet your requirement

Yes
No
no idea

9. Specialists predict Vietnamese seafood market will have a huge development in


the near future, do you agree?

Strongly agree
Lightly agree
Disagree
Strongly disagree
no idea

10. Do you have any cultural conflict(s) when doing business with Vietnamese
partners?

Yes, the problem cannot be solved


A little bit, but we are still good in cooperation.
No, not at all

11. You think Vietnamese seafood industry should pay most attention to:

63
Quality
Quantity
Advertisement/Brand name
Other

Thank you very much for your corperation


Part B

1. Where is your biggest source to import seafood?

USA
Germany
Belgium
China
Others

2. What are top 3 products you import from your sources?


     

3. Which do you prefer the most in contacting your clients:

Email
Fax
Phone
Face to face conversation
Others

4. Are you familiar with Vietnamese seafood market?

Yes, very well


Yes, just a little bit
No

5. What is the most influent point in your decision-making?

Price
Quality/Quantity
Brand name
Others

6. In the near future, do you want to import seafood from Vietnam:

64
Yes
No
I’ll think about that
no idea

7. Do you have any comment/recommendation for Vietnamese seafood exporters?


     

Thank you very much for your time

Docifish Interview Minutes

Company DOCIFISH (Sadec Aquatic Products Import Export Enterprise) is an official member of
Vietnam Association of Seafood Exporters and Producers (VASEP).
Head office:
Lot 6, Sadec Industrial Zone, Sadec town, Dong Thap province, Vietnam
Tel: (+ 84.67) 762429 - Fax: (+ 84.67) 762430
Email: docifish@hcm.vnn.vn
HCM city office :
364 Pham Hung St., Ward 5, Dist 8, Ho Chi Minh city, Vietnam
Tel: (+ 84.8) 8506805 - Fax: (+ 84.8) 8506805
Email:docifishhcm@hcm.vnn.vn

Interviewee: Mr. Hung Nguyen- Director of Docifish


Date: 30 March 2007
Topic: Vietnamese Exporting Seafood Market- View from Docifish

1. List prices of main exporting products:

Fish fillet (Block, FOB price): $3.55/kg


Fish fillet (IQF-FBO price): $3.6/kg
Fish skewered fillet: $4.2/kg
Fish rolled fillet: $4/kg

2. What are advertising activities of Docifish in its business?

- The company have participated in many international fair such as: Vietfish
in Vietnam, Bremen in Germany, Conxemar in Spain, Brussel in Belgium
- Advertising on Vietnamese website: www.vasep.com.vn
- Advertising on English magazines every 6 months: “International fishery”
- Building its own website: www.docifish.com.vn

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- Brochures and flies for customers
- Quality control system: ISO 9001:2000, HACCP, GMP
- Maintaining the products’ quality and quantity

3. Docifish SWOT

Strength Weakness
- In general, it’s not used to some
-Products’ sources are from local region knowledge of foreign commerce,
- Its major products are Tra and Basa international law, lawsuit, international
fish which are very popular now. business culture. Therefore it sometimes
- Strict and modern total quality control leads to some difficulties when facing
disputes in the market.

Opportunity Threat

- Environment (Cuu Long delta) gives - Increasing of unfair-competition


the best natural condition for raising sea within inland competitors about
products, that no other places have this Tra and Basa fish
advantage. - Exporting Tra fish now is dealing
- Vietnam economy is tremendously with quality control due to some
growing lately. famers ignore some steps of
-Recently, Vietnamese government give product raising process
many supports to boost the seafood
exports, especially Tra fish and Basa fish
- Vietnam is now official member of
WTO

4. Does Docifish have any clients from the Netherelands?

“Yes, it does. The company has had good business relation with Dutch partners for
years. Dutch customers weight about 20% of total company’s clients. On the whole,
Dutch customers gain 22% of total Vietnamese seafood exports”.

5. Who are the big competitors of Vietnam in international seafood business?

“In the maker, American Catfish is the competitive product to Vietnamese Tra and
Basa. However, the US Catfish cannot meet the demand of US market, therefore US
also have to import fish from Vietnam.
In the other hand, China has purchased Catfish breed to raise in China, then export
Catfish products back to US market. In conclusion, China is now the biggest
competitor in Catfish market”

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6. Does Vietnam have any advantages or disadvantages as being WTO
member?

“After being a WTO member, Vietnam has more favourable aspects in lawsuit, for
example America will reconsider about its accusation of Vietnamese dumping price
in Tra fish and Basa fish. In addition, EU will possibly loose some unreasonable
barriers of technology that it requires. ”

7. In your opinion, are there opportunities for Vietnam in the international


seafood market?

“ In fishery industry, Vietnam has marine riches and opportunities which contribute
to its developing. Nature gives it the greatest gift with many rivers, delta where water
contains particular micro-organism that provides the best condition for particular
fish. For example, the CanTho delta is the best place for Tra fish and Basa fish. That
is also the reason why Vietnamese Tra fish and Basa Fish have a special quality and
taste. Moreover, the producing cost of Catfish is very low compare to America, or
even Thailand, Cambodia, Mianma, India…Manufacturing labour cost and farming
labour cost are also low. Best of all, Vietnam is successful in applying technology of
artificial fish birth-giving. In my opinion, Vietnamese seafood will definitely develop
well in the international trade”

8. What is opinion of foreign clients about Vietnamese seafood product (quality


and price…)?

“As far as I’m concerned, they consider the price as being acceptable, or even low,
compared to many other competitors. Customers also highly appreciate the quality of
Vietnamese seafood, and Vietnamese seafood products are rather variable. American
and European are really fond of the taste of Vietnamese Tra fish and Basa fish.
Particularly, those kind of fish contain Omega 3 which help anti-aged, and provide
high nutrition to your health”.

9. Do you think Dutch market is a promising client in a long term?

“Speaking generally, Dutch people have a passion for seafood and they really like
Vietnamese Tra fish. With the imported products, Dutch traders sell to domestic
consumer, a part of that they also export to other neighbour countries like Germany,
Belgium, France…Hence, even though Dutch population is not huge, Vietnam still
has great opportunities to penetrate the seafood market in the Netherlands”

Companies list

Vietnamese Seafood Companies

Company DOCIFISH (Sadec Aquatic Products Import Export Enterprise) is an official


member of Vietnam Association of Seafood Exporters and Producers (VASEP).

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Head office:
Lot 6, Sadec Industrial Zone, Sadec town, Dong Thap province, Vietnam
Tel: (+ 84.67) 762429 - Fax: (+ 84.67) 762430
Email: docifish@hcm.vnn.vn

HCM city office :


364 Pham Hung St., Ward 5, Dist 8, Ho Chi Minh city, Vietnam
Tel: (+ 84.8) 8506805 - Fax: (+ 84.8) 8506805
Email:docifishhcm@hcm.vnn.vn

Company name: AGIFISH (An Giang Fisheries Import & Export Joint Stock
Company)
1234 Tran Hung Dao, Long Xuyen City, An Giang Province, Vietnam
Tel: (84.76) 852939 - 852368 - 854241 - Fax: (84.76) 852202
E-mail: agifishagg@hcm.vnn.vn - Website: www.agifishco.com -
www.agifish.com.vn

Company: Seaprodex export center


Address: 2-4-6 Dong Khoi St., Dist 1, Ho Chi Minh City
Tel: (84.8) 8291066 - 8293227 - 8290560 - 8222362 – 8230685
Fax: (84.8) 8226211
Email: export@seaprodexvn.com, binhsvn@hcm.vnn.vn

Company name: Cuu Long Aquaculture Co., ltd


Email: macvntrade@hcm.vnn.vn
Office address: 53C Huynh Khuong Ninh St., Dist. 1, HCMC, TP HCM
Tel: 8202214 - 8202252 Fax: 8202214 - 8202252
Description: Food & Beverage,Seafood
Director: Do Quoc Buu

Company name: The East South Asia Co., Ltd - ESACO


Email:esaco@hcm.vnn.vn
Office address: 17 Tran Quoc Thao St., Dist. 3, TP HCM
Tel: 8243102-8295080 Fax: 8290193
Description: Seafood and fruit
Director: Tran Viet Dung

Company Name: Cau Tre enterprise - CTE


http://www.ffa.com.vn/index.pl/members/cautre
admin@cautre.com.vn
Office Address: 125/208 14th road, Tan Binh district, Ho Chi Minh city.
Tel. 84.8.8565543, 84.8.8550072 Fax. f.84.8.8550057

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Company Name: An Giang fishery import - export company
Office Address: 1234 Tran Hung Dao street, Long Xuyen town, An Giang province. Tel.
84.76.852368, 84.76.852939 Fax. 84.76. 852202

Company Name: SEAPRODEX TIEN GIANG


Office Address: Tan My Chanh village, My Tho city, Tien Giang province.
Tel. 84.73.850020, 84.73.850021 Fax. 84.73.850024

Company Name: Thuan Phuoc seafoods and trading corporation - THUAN


PHUOC CORPORATION
Office Address: 20 Thanh Bo street, Hai Chau district, Da Nang city.
Tel. 84.511.828118, 84.511.822654, Fax..84511.825872

Company Name: Kiengiang seaproduct import and export company, Kien Giang
export fish processing enterprise - KISIMEX
http://www.kisimex-vn.com/index_eng.asp
Office Address: 62 Ngo Thoi Nhiem street, An Hoa precinct, Rach Gia town, Kien
Giang province.
Tel. 84.77.866719, 84.77.861541, 84.77.800580 Fax. 84.77.862677, 84.77.800570

Company Name: Song Huong import export seafoods company- SOSEAFOOD


Office Address: 165 Thuan An street, Hue city, Thua Thien Hue province.
Tel. 84.54.823541, 84.54.822245 Fax. 84.54. 823541

Company Name: Can Tho animal fishery products processing export enterprise
(CAFATEX VIETNAM)
Office Address: Km No. 2081, 1 National road, Chau Thanh district, Can Tho province.
Tel. 84.71.847979, 84.71.846737, 84.71.846134 Fax. 84.71. 847775, 84.71.846728

Company Name: Ca Mau Frozen Seafood Processing Import Export Corporation


(CAMIMEX - FACTORY II)
Office Address: 333, Cao Thang street, Sub - ward 2, Ward 8, Ca Mau city, Ca Mau
province
Tel. 84.780.831600, 84.780.831223, 84.780.836137 Fax. 84.780.832297

Company Name: MINH PHU SEAFOOD PTE


Office Address: Industrial Zone, Ward 8, Ca Mau city, Ca Mau Province.
Tel. 84.780.839391, 84.780.838262 Fax. 84.780.833119

Dutch Seafood Companies

Ibro Mar Bv

Address: Max Euwelaan 57

69
3062 MA, Rotterdam, the Netherlands

Business: Import and export company of frozen fish and fishproducts. We specialize in
raw materials /half fabricates for the seafood industry throughout Europe. We have a
selection of standardized products in stock in Holland and we produce and develop
special products for/with clients to improve production results.
tel: 31-10-4532050
fax: 31-10-4529055
http://www.ibromar.com
Email: info@ibromar.com

IbroMar BV Vietnam Representative Office

Address: Floor 2nd, Quoc Hung Building


178A Nguyen Van Troi Str.
Phu Nhuan District, HCMC, Vietnam

Tel.: +84 (0)8 8478757


Fax.: +84 (0)8 8478766
Email: ibromar.vn@ibromar.com

Noordzee Breskens

Address: Deltahoek 5
P.O.Box 57
4510 AB Breskens, Netherlands

Tel: 0031 (0)117-38 60 00


Fax: 0031 (o) 117-38 12 04

Business: Fresh fish wholesaler


Managers: Hanny Oosterbaan, Adri van Hanegem, Henk van Hanegem
Sale Manageress: Rianne Clarisse
Customers : importers, wholesalers, supermarkets, C&C markets
Employees: 45

Fieret's Vishandel

Office address: Industrieweg 13


4501 PM Oostburg, the Netherlands

Email: info@fieretvis.nl
Tel. (+ 31) (0)117-453551
Fax (+ 31) (0)117-454128

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Representative Shop address: Kaai 18-20
4524 CK Sluis, the Netherlands

Bond’s Seafood Creations

Address: Gijzenveld 9
4817 ZE, Breda, the Netherlands
http://www.bondseafood.com/
info@bondseafood.com
tel: 0031 76 57 11 666
fax: 0031 76 58 12 896

Na-pi Exitic Fish

Address: Gedemte Burgwal 45, 2512 BS, Den Haag, the Netherlands
Business type: Trading company, established 2003
Industry focus: Frozen Food , Aquatic Products ,
Employees: <5 people
Annual sale ranges (USD): <$1 million
Contact person: Mr. Ike Nassy, Director/ CEO/ General Manager
Tel: 31-70-3020069
Fax: 31-70-4274003
Mobile: 31 6 239 10967
Wcs-Van Limited
Address: V.D,Goes Straat 71, Honselersdijk, 2675 TT, the Netherlands

Business: Importing live tropical fish and aquarium equipments

Tel: +(31)-(174)-641509

Fax: +(31)-(174)-641509

Vishandel Brassem
't Groentje 4
4357 BC Domburg
0118-582390
Website: http://www.vishandelbrassem.nl/

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