BANKING ACADEMY

INTERNATIONAL TRADE AND FINANCE

LECTURER: NGUYEN THU HUONG

STRATEGY TO BRING CASHEW NUTS INTO

THE US MARKET

GROUP 3 HA NOI, MAY 2022

MEMBER OF
GROUP 3

Duong Phuong Nhung

22A4050404

Trinh Trung Kien

22A4050108

Luong Thuy Dung

Cao Thanh Giang
22A4050073
22A4050202

Le Thi Hong Ngoc

Cao Minh Trang 22A4050352
22A4050307

Nguyen Thi Thu Mai

22A4050043

Vu Ha Trang
22A4050406


CONTENT
GROUP 3 -

CONTENT
Company Introduction 4

Why Eubiz finding a new market? 5

About US market 6

7 PESTLE analysis of US market

9 Method of entry

12 Conclusion
PREFACE
Occupying nearly 50% of the cashew area and more than 54% of the country's cashew
production, Binh Phuoc is considered the "capital" of Vietnam's cashew trees. Farmers'
income in Binh Phuoc comes mainly from collecting cashews and selling them to
processors at low prices; the output is unstable due to crop failures and falling prices.
Seeing the hardships of the cashew farmers here, EUBIZ and their associates grew
worried and wondered: How can farmers be helped? How can brand value be
increased? How can we bring high-quality cashew nut products to the world?

Stemming from that spirit and will, EUBIZ and their associates left Hanoi and met Binh
Phuoc farmers, organized them, built factories, assisted in purchasing, enhanced
processing, and began exporting cashew nuts.

However, exporting to a difficult market like the US is not easy. Therefore, group 3
chose the topic: "Strategy to bring cashew nuts into the US market" with the desire to
be able to advise on the advantages and disadvantages through the PESTLE model
and which method of accession is appropriate. through the knowledge has been
approached in the subject of International Trade to help the company achieve the goal
of maximizing profits and improving the export output of Vietnam's cashew nuts.
 Company Introduction
It was established in 2019 and is a pioneer in cashew processing and cashew nuts
exporting located in Binh Phuoc, Viet Nam. EUBIZ Group has been manufacturing and
exporting cashew nuts & dried fruits.
Manufacture

Address 1: 192, Village 3, Thong Nhat Ward, Bu Dang District, Binh Phuoc province,
Viet Nam.
Address 2: DT.741 Street, Tan Luc VillageVillage, Bu Nho commune, Phu Rieng
District, Binh Phuoc Province, Viet Nam.

OF EUBIZ
MISSION
HEALTH: The highest demand for organic, non-
GMO, and vegan products comes from the US and
Europe. EUBIZ aims to bring a healthy and nutritious
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product and help treatment of Obesity, diabetes, and

heart disease.
COMMUNITY: EUBIZ wants to promote and expand
the scale and create jobs for farmers in Binh Phuoc,
Vietnam, to have stable incomes.

SUSTAINABILITY: From securing economic and

social sustainability for families and farmers in rural
areas in Binh Phuoc, Vietnam, ensuring our products
are packaged sustainably and reducing our carbon
footprint.
 WHY EUBIZ FINDING THE NEW MARKET ?
Organizational factors
Enterprise Size International attractiveness
EUBIZ is a small and medium-sized Due to the significant demand for cashew
company. Currently, the government nuts, Vietnam has the advantage of being
has issued many policies to help this a country with many exports. High quality
group develop, such as improving the and low price give this product a
business environment, enhancing competitive advantage and quickly expand
competitiveness, and creating favorable its market share in the world market.
conditions for international integration. Specifically, according to the Import and
Besides, in Binh Phuoc, EUBIZ has had Export Department (Ministry of Industry
a manufacturing plant labeled and Trade), 2021 will be a successful year
international fair trade for seven years. for Vietnam's cashew exports, with an
It acts as a special passport for cashew export volume of 579,800, worth 3.64
nuts, which gives EUBIZ a competitive billion USD, up 12.6% in book and 13.3%
advantage over other domestic and in value compared to 2020.
foreign enterprises.

Environmental factors
The voluntary proposal
Eubiz's supply chain is connected with
Amazon, Alibaba, and several E-
Commerces Platforms across Asia, with
headquarters from Vietnam. This is one
of the first supply chains to be included
in Walmart - the sourcing package is
the most comprehensive tracking and
sustainability response in the wholesale
market → , Facilitating meetings and
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The "pull" effect
Competitors in the domestic market often
tend to capture each other's strategies.
When one business expands to the
international market and can bring a
competitive advantage, the remaining
companies do not want to be left behind,
gradually internationalizing. Therefore, the
internationalization of businesses
sometimes creates the effect of enticing a

getting recommendations from series of other companies, and EUBIZ in

distributors and retailers. particular and cashew nut trading
companies, in general, are no exception.
The attractiveness of the host country
The United States and Europe have a habit of consuming fast food, which increases the
rates of diabetes, obesity, and high blood pressure in your countries. As a result, the
demand for non-GMO and vegan products is increasing. EUBIZ creates energy-rich,
cholesterol-free, low-sodium, low-fat products with a high percentage of fiber and vitamins,
helping to improve the health of people in different countries without changing their eating
habits. Besides, high income makes stable product consumption and large purchasing
power is also a motivation to enter new markets.
 US IS A POTENTIAL MARKET
Consumption rate:
The United States is the second-largest
consumer of cashew in terms of
volume, with a share of 34% of the total
global consumption, as of 2019.
Cashews are also being increasingly
used as a constituent in muesli, energy
bars, cookies, chocolates, and ice
creams. Therefore, high demand from
direct consumers and cashew milk
processing industries in the United
States are the critical stimulants for
cashew consumption in the country.
Vegetarians are prioritizing a plant-
based diet, including plant-based
sources of protein. Cashew nuts are a
good source of plant protein. This has
increased the per capita consumption
of cashew nuts in the country.
According to the International Nut and
Dried Fruits Council, the per capita
consumption of cashews in the country
increased from 0.46 kilograms in 2018
to 0.48 kilograms in 2019
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List of importing market for the cashew nuts exported by Viet Nam in 2021 - ITC
Import rate:
The US market is currently the
leading import market for Vietnam's
cashew nuts, with a total import
volume of over 163 thousand tons in
2021, worth about $1,080 million, an
increase of 10% in value compared
to 2020. (According to data from
Trademap - List of importing markets
for the product exported by Vietnam
in 2021). Next, according to the
Vietnam Import-Export Department,
cashew nut exports to the US are
increasingly favorable. In January
2022, the average price of cashew
nuts imported to the US reached
6,709 USD/ton, up 9.4% compared
to January 2021. The volume of US
cashew nuts imported from Vietnam
reached 11,780 tons, worth about
78.24 million USD, up 8.9% in book
and 19.1% in value over the same
period in 2021.
 PESTLE
POLITICAL
America is a multi-party country (Democracy,
Republican, ...) Since then, the political
mechanism and economic structure can
change more or less through each
presidential term.
The US has applied many quotas and
difficulties on each item of Vietnam. Although
the US has not yet imposed sanctions,
quotas or tariffs on Vietnamese cashews,
businesses need to prepare well to be able
to penetrate the US market in the near
future.
Corruption Perception Index (CPI)
According to a report by Transparency International, the US in 2021 ranks 27th in
this ranking with 67/100 points. This is a good indicator level for a country and
lays the foundation for the penetration of foreign companies to invest in this
market.
ECONOMIC

The average household income in the US in 2020 is about $67,500, down 2.9%
from 2019 and considered a significant decrease over the past decade. However,
this is still considered a high level compared to other countries in the world.
On December 30, 2021, the US Department of Labor released data showing that
the country's unemployment rate is now at 4.2%, the lowest level in 52 years
when the number of new jobless claims continued to decline in the week ending
December 25.
Page 7 -

TECHNOLOGY
The US is rated as the world's number
one power in AI development capacity in
all fields, from basic research to
applications. In 2015, the US
Government's investment in research and
development of AI-related technologies
(not classified as confidential) reached
approximately $1.1 billion.
 SOCIAL
Cultural environment

Since the 1960s in North America, the

Hippy style spread - Eat clean was born
and continues to develop until now.
Cashews are one of the most widely
used nuts in this diet.
Americans love breakfast with cereals
containing nutritious nuts. People here
often use cashews to make snacks and
combine them with milk, so the US is one
of the leading cashew consuming
countries in the world; from 2010 to now,
the demand for cashew nuts has grown
by 53%

LEGAL
Formulation and enforcement of American legislation in environmental
protection law. In some states, environmental control and management of
projects and works are based on environmental impact assessment (EIA) tools and
permits.
Trade compensation law (including anti-dumping law) and anti-subsidy tax law
are two laws that any business entering the US market must pay attention to
because these are two US tools applied. Frequently on imports that affect domestic
US production.

The US technical standard fence

includes many regulations:
FDA BRC SGS TESTING ISO
Regulations on labels and
trademarks; Regulations on codes
and symbols; Regulations on
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intellectual property rights;

Certificate EUBIZ obtain for respond US required Regulations on product liability, and
sanitary and phytosanitary standards.

ENVIROMENT

The United States is located between the two oceans and belongs to the Asia-
Pacific economic region, which is convenient for Vietnamese businesses to
exchange goods by sea.
There are many climates, so it is challenging to grow cashews nuts.
 METHOD OF ENTRY

Choosing a way to enter foreign markets is a big issue that EUBIZ needs to consider. It
is a combination of two main factors: ownership and level of investment; the form of
entry is export, which includes direct and indirect exports.

DIRECT EXPORT
EUBIZ should use direct exporting as a method of
Direct exporting could be
entry because of its advantages that can control all
challenging, but it also
of our manufacturing processes, thus avoiding the
presents an opportunity for
risks associated with production overseas (e.g.,
high profits when markets are
poor production standards, use of child labor) and
chosen carefully. It can be a
the risks related to political instability in a foreign
suitable entry method for long-
market. The most significant advantage of direct
term growth in an international
exporting and why EUBIZ should use it is that it
market.
can obtain in-depth information about trade in the
target market and be closer to customers, enabling
it to make future decisions about whether to invest Recommend Export partner
in facilities in the market. - https://www.amazon.com/
However, there are disadvantages that EUBIZ - http://www.costco.com/
might need to consider, such as greater financial - https://www.walmart.com/
risk or limited market coverage, or insufficient - https://www.target.com/
knowledge of the market and culture. But I think
these are the risks that EUBIZ is willing to face to
get to know about the market and have the
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information about their customers so that it

operates in the company's best interests. Although
U.S. customs regulations are complex and often
different from those used by other countries,
shipping goods across the border can be relatively
uncomplicated if we are well prepared.

Get in touch: PREMIUM CASHEW NUTS

MADE IN VIET NAM FROM THE LEGENDARY LAND
www.Eubizfood.com
 INDIRECT EXPORT

Besides direct exporting, EUBIZ could use indirect export as well.

Indirect exporting means selling to an intermediary who sells EUBIZ products either
directly to customers or to importing wholesalers. The easiest method of indirect exporting
is to sell to an intermediary in their own country - Vietnam. When selling by this method,
EUBIZ is typically not responsible for collecting payment from the overseas customer or
coordinating the shipping logistics.

Management Companies

An export management company (EMC) is one such Helpful tips:

intermediary. A good one will act as a global extension
of EUBIZ's sales-and-service presence. EMCs offer a
wide range of services, but most specialize in exporting Several ways to find EMC
a specific range of products to a well-defined customer
base in a particular country or region.
For example, an EMC might specialize in exporting Rely on your local chamber of
commerce or small business
cashew nuts to nursing home customers in the US.
assistance center. They
generally know who has been
Other common compensation structures used by
in the export trading business
EMCs include commission and buy-and-resell, start-up for a while. At the very least,
or project fee-only, fee plus commission, or fee plus they can point you to an

commission and buy-and-resell. An EMC will

carry out excellent online exporting
directory.
all aspects of the export transaction:
Identifying international markets for cashew nuts

products
Locating customers overseas
Arranging agent/distributorship relationships
Preparing, negotiating, and handling all Freight forwarders and
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communication, documentation, and shipping logistics experts also might

logistics provide you with the names of
EMCs that use their service.
Exhibiting at international trade shows
Traveling overseas to meet with potential
under

Search the internet for listings

"Export Trading
customers Companies" or "Export
Setting up appropriate distribution channels Management Companies."
 Trading Companies
EUBIZ might also use the services of an export trading company (ETC). ETCs are virtually
identical to EMCs, but they tend to function on a more demand-driven basis, by which the
demand of the market compels them to buy specific commodities. They usually have long-
standing customers for whom they source products regularly.
For example, they might get a request from a customer to find a supplier of cashew
nuts who can provide twenty container loads a month for a given number of months.
The ETC will then seek out a reputable manufacturer who can handle the demand at
an economical price and then arrange to transport the goods to the customer.

You can track down a good ETC via the same channels
recommended above for finding an EMC
Helpful tips:

Intermediaries
Indirect exporting can also involve In some instances, the overseas
selling to an intermediary in the agent might request that they are
country where EUBIZ wishes to allowed to handle the shipping,
usually because they receive special
transact business, which sells its
transportation rates from carriers with
products directly to customers or other
whom they've done volume business
importing distributors (wholesalers).
for years. In this case, EUBIZ will
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Under these circumstances, they will
not know who their ultimate consumers
are. When selling by this method, they
are generally responsible for collecting
payment from the overseas customer
and coordinating the shipping logistics.
need to arrange for the cargo to be
ready by shipment. They must still
collect payment from the customer,
but their actual involvement in the
transaction is minimal. It is nearly as
easy as a domestic sale.

TRANG 1 SỐNG XANH

 Advantage

It's an almost risk-free Depending on the intermediary

way to begin with which you are dealing, you
don't have to concern yourself with
shipment and other logistics.
It allows you to
continue to concentrate
on your domestic
business.

Disadvantage
PROFIT Your profits are lower.
You lose control over your foreign sales.
You rarely know who your customers
are and thus lose the opportunity to
tailor your offerings to their evolving
needs.
r

Lo
ila

When you visit, you are a step removed

se
ucts sim

control

from the actual transaction. You feel out

of the loop.
The intermediary might also be offering
Prod

products similar to yours, including

Page 12 -

directly competitive products, to the

se same customers instead of providing

er
Lo

in
for s t om exclusive representation.
m a tio n c u

Only you can determine which export strategy suits your needs.
Conclusion Your choice will depend on your goals, available resources, and
the type of business you run.
 Bạn muốn hành tinh của mình tươi
đẹp hơn?

CONCLUSION

In the development of the country, Vietnam has accelerated the process of

globalization and is deeply integrated with the region and the world. In
particular, the Party and State have always paid attention to the
development of agricultural products because this is the strength of our
country. Seizing that opportunity, EUBIZ Vietnam Joint Stock Company,
with the mission of bringing the image of cashew nuts to the West -
America, has many positive development signals.

Through the analysis process of group 3, when EUBIZ joint-stock company in

particular and cashew export companies, in general, chose to penetrate the US
market.
We can see that besides the great benefits
that internationalization brings, there are also
many difficulties. However, when the team
analyzed the factors through the Pestle model
- a useful analytical tool that helps businesses
understand the "big picture" of the business
environment in which they are operating,
identifying potential opportunities and threats.

In addition, the team has also

come up with many suitable
entry methods based on the size
of the business and the current
capacity to optimize costs and
grow revenue in the US market.
 REFERENCES

https://eubizfood.com/
https://www.ceintelligence.com/content_manager/contentPages/vi
ew/us-market-entry-strategies
https://www.transparency.org/en/countries/united-states
https://en.vietnamplus.vn/vietnamese-cashew-nuts-occupy-
nearly-90-percent-of-us-market-share/209643.vnp
https://www.medicalnewstoday.com/articles/309369#_noHeaderP
refixedContent
https://www.danielmachine.com/tin-tuc/tin-tuc-chung/us-still-
surpassed-china-to-become-the-number-1-market-to-import-
cashew-nut-product-of-vietnam-12417.html
https://ustr.gov/sites/default/files/2022%20National%20Trade%20
Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
https://www.pewresearch.org/social-trends/2022/04/20/covid-19-
pandemic-pinches-finances-of-americas-lower-and-middle-
income-families/