HS code – harmonize system –

Thêm phầ n over about the product and about the company
Mac map

Michael Porter’s Diamond model

1. Factor Conditions:
 Basic factor: climate, location, debt captial, labor skills
 Advanved factor: educated personnel, university research, advanced
technology.
 Generalized factor: highway system, debt capital
 Specialized factor: narrowly specialized trained personnel
2. Demand conditions:
 Home demand composition
 Demand size and Pattern of Growth
 Internationalization of Domestic Demand
Strong home demand gives a clearer picture of emerging buyer needs.
“Early warning indicators”
e.g.the early success of US companies in the fast-food industry reflect not only the US desire
for convenience but also the spread of those taste to the rest of the world.

Inudustrial production does not take place in isolation

Related industries: exellent IT, siemens and SAP
e.g. Shenzhen is the birthplace of many technology providers

Rivalry: Mercedes, BMW

Government invested in education institutions and infrastructure.
 Automobile industry in Vietnam
1. Factor condition
Human resources and knowledge resources: cheap workforce but not many
high-skilled labor, little centre in VN has staff related to Automobile sector.
Raw materials: The localization rate of the auto industry is just over 10%
(there are businesses less than 1%), because most of the components are
imported from abroad and the localization details are just simple details. This
shows that: businesses are just taking advantage of high tariff barriers to
increase profits while operating at half the capacity in that industry of other
countries.
Investment capital: For the automobile industry, capital investment is a
prerequisite, only a few leading corporations are able to invest strong capital in
the development of the industry such as Thaco "poured" more than 20,000
billion VND. expanding Chu Lai auto mechanic industrial park from 2016; By
2019, Vingroup has invested nearly 31,000 billion VND in the VinFast project
complex. Investors would rather spend money on small, medium industry, not
the automobile.
Machinery/technology: Currently, there are production facilities with modern
equipment, machinery, and technology such as Bus Thaco factory which is the
largest bus manufacturing and assembly factory in Vietnam; The most modern
Mazda car factory in Southeast Asia; VinFast automobile factory.
Để hã ng xe sả n xuấ t mộ t dò ng xe hơi

2. Demand Conditions
Market outlook: According to Business Monitor International (BMI), Vietnam
is currently the country with the lowest car ownership rate in the region when
only 4-5% of families have a car.
Affordability: The ability to pay for cars of individuals and organizations is
constantly increasing. Sales of domestically assembled cars decreased by 12%,
while imported cars increased by 82% over the same period in 2018. Car
demand in Vietnam is highest in January, February and December 2019,
lowest in February, April and August 2019
VinFast, an electric vehicle maker of the Vietnamese conglomerate Vingroup,
said on April 26 that it had got a fresh round of funding pledges worth 2.5
billion USD serving its future development.
Vietnam government did have some protection on automobile.
Khi tư vấn chính sách về năng lực cạnh tranh của 1 quốc gia trong ngành ô tô.
Khi khảo sát về doanh thu hay mong muốn sở hữu xe ô tô, chúng ta không thể
đánh giá được số tiền người tiêu dùng chi trả cho ô tô nội địa (Vinfast). Trong
thị trường việt nam thị phần của Vinfast là 12.5% tính đến cuối năm 2022.
Điều kiện nhu cầu của Việt Nam khá thấp và chúng ta là trung tâm sản xuất và
tiêu thụ cho những công ty nước ngoài

3. Related supporting industry

To serve automobile assembly, in the period 2010 - 2016, Vietnam imported
various spare parts and components mainly from Japan (23%), China (23%),
Korea (16) %) and Thailand (16%)
Local content: many companies locate their brand in Vietnam and also FDI in
Vietnam since we have cheap labor, and those compaines have the CSR to
inprove automobile industry.

4. Firm strategy, structure, and rivalry

- Firm strategy: Vietnam's automobile industry to 2025, with a vision to 2035,
focusing on developing passenger car products suitable for Vietnamese people
and developing trends such as environmentally friendly cars: eco car, hybrid,
electric car. For trucks and passenger cars: To focus on developing all kinds of
domestically produced products with advantages and products for
agriculture, including multi-purpose small trucks for agriculture, mid-range
and mid-range passenger cars. short, concrete trucks and special security -
defense vehicles.
- Structure: there are a diversity of ownership, Private (VF), joint stock
(Thaco, Toyota). The local market in VN is quite high competitiveness.
- Rivalry
 Brand image: Country brand has a strong influence on customers'
willingness to pay for a car product. There is no denying the attraction
of imported car brands, but with the best of efforts, Vietnamese brands
are also gaining a foothold. Typical is the Vietnamese car company
Vinfast of Vingroup.
 Technology: Vietnamese domestic manufacturers are still under
pressure because they are still backward and weak in technology and
R&D. While technology is considered as the biggest source of
competitive advantage of car companies today. Other big names have a
leading position in the industry thanks to the world's most modern
automotive technology.
 Supply and distribution system: Vietnam's leading automobile
manufacturers are all trying to build a great system. wide distribution of
 products because the expansion and domination of the distribution
market is considered a trend chosen by most auto businesses to gain a
competitive advantage and maintain market share in Vietnam.

Global value chain

Global value chains (GVCs) refer to international production sharing, a
phenomenon where production is broken into activities and tasks carried out
in different countries. They can be thought of a large-scale extension of
division of labour dating back to Adam Smith’s time. In the famed example
attributed to Smith, the production of a pin was divided into a number of
distinct operations inside a factory, each performed by a dedicated worker. In
GVCs, the operations are spread across national borders (instead of being
confined to the same location) and the products made are much more complex
than a pin.
When globalization was not popular, value chain was kept within a country.
With the Global value chain, company can locate each step in different
desntination, not only manufacturing step but also R&D, design… are alsp
seperated  a country can focus on a specific task to develop and support.
Trading in tasks

- Value imported/trade value: kim ngạ ch, giá trị thương mạ i (cà ng cao thì
tỉ lệ thâ m nhậ p thị trườ ng cà ng tiềm nă ng)
- Trade balance: cá n câ n thương mạ i (= xuấ t – nhậ p)
e.g. nhậ p cao, xuấ t cao  nhậ p phụ tù ng để sả n xuấ t hà ng và xuấ t khẩ u
- So sá nh annual growth trong 5 nă m  đá nh giá thị trườ ng và xem lượ ng
tă ng là bao nhiêu.
e.g. Mỹ có kim ngạ ch tă ng 33% nhưng lượ ng tă ng 17%  giá sả n phả m
đang tă ng và kim ngạ ch vẫ n cho số liệu tích cự c. Annual growth củ a nă m
gầ n đây nhấ t giả m  đá nh giá nguyên nhâ n và xem dự đoá n tă ng trưở ng
trong nhữ ng nă m tớ i để đá nh gia tương lai củ a thị trườ ng
- Share in world import: thị phầ n nhậ p khẩ u trên thế giớ i
Nướ c có thị phầ n lớ n  thu hú t nhiều đố i thủ và cạ nh tranh cao  cầ n phâ n
tích lợ i thế cạ nh tranh củ a doanh nghiệp trướ c khi tiến và o thị trườ ng
- Average distance of supplying countries: khoả ng cá ch trung bình củ a
nhữ ng quố c gia xuấ t khẩ u đến Mỹ  Mỹ thườ ng nhậ p khẩ u mặ t hà ng
này từ khu vự c nà o, sự ưa chuộ ng đố i vớ i sả n phẩ m củ a từ ng vù ng nhấ t
định
- Concentration of supplying countries: mứ c độ tậ p trung củ a cá c nhà
cung cấp trong 1 thị trườ ng. Khi con số tiệm cậ n đến 1  mứ c độ độ c
quyền đố i vớ i sả n phẩ m này cao. Vớ i con số tậ p trung >0,18 thì quố c gia
có mứ c độ tậ p trung khá cao, khô ng quá đa dạ ng về nhà cung cấ p.