1.

Executive summary
2. Table of contents
3. Introduction
4. Company and Product Background
5. Country and Product Market Attractiveness
6. Market Selection with Justification and Opportunity Statement
7. Marketing Objectives
8. Entry Strategy
9. References

4. Company and Product Background

Overview
In 1997, Chanh Thu Fruit Import - Export Group Joint Stock Company, formerly known as
Chanh Thu Co., Ltd was established. Throughout its many years of business, the company has
provided a wide variety of fresh and frozen fruit products to the international market for more
than 20 years.
With factories in the provinces of Ben Tre, Khanh Hoa, and Dak Lak, Chanh Thu is able to
export more than 300,000 tons of fruits annually to markets in the United States, China,
Australia, Japan, and Europe. According to the FSSC 22000 standard and the "packer code"
issued by the Vietnamese government, the packer has received approval for food safety. The
markets of the United States, Australia, and New Zealand can all receive fresh fruit exports.

About the history of company

Chanh Thu started out as a small collector, buying fruit from local farmers and selling it to
bigger dealers or other enterprises. With an annual export volume of 2000 tons, this business
specializes in the export of fresh produce to China.

2009 - The model was changed from a private company to a limited company (Chanh Thu Fruit
Import and Export Co., Ltd) with the intention of constructing packing houses and orchards that
adhere to Vietnamese and international standards as well as expanding into more competitive
markets like the Middle East.

2022 - Development of a packing factory

The factory in Dak Lak province, which has a 10-hectare area, is still being developed by the
company in order to boost capacity to 200,000 tons annually with new technologies and storage
systems.
The story of improving product value is not the story of the business alone, but the story of the
product chain, and the roots of the farmers.

✓What is the product and what needs does

it satisfy? Product: durian
International consumption market in China, US,
✓Who is the target market for the Canada, EU, Dubai, Hongkong, Korean, Japan,
product? Taiwan, Aus, New Zealand
✓How has the product (brand) been
performing? Sales, market share,
revenues/profits. Link
✓Is the company already engaged in
international marketing? What countries is
it operating in? What entry strategies is it Yes: China, US, Canada, EU, Dubai, Hongkong,
implementing? Korean, Japan, Taiwan, Aus, New Zealand
✓What resources does the company have
to go overseas (assets, HR / skills,
experience, etc)? Exprience,

5. Country and Product Market Attractiveness

● US
Macro environment

- Political
Political stability: 0 - global rank 96
security threat index:5 - global rank 95
crime rate 6.52 (2020)
Corruption index: 69/100
Rank 24/180 countries

Since the end of World War II, U.S. trade policy has generally sought to increase the country's
economic growth and competitiveness by lowering trade and investment barriers internationally,
fostering an open, transparent, and nondiscriminatory rules-based trading system, including
through the World Trade Organization (WTO), enforcing trade agreements with allies and U.S.
trade laws, and providing assistance to American businesses and workers who have been
negatively impacted by "unfair" foreign trade practices.
The global market started to show a protectionist trend as soon as the US-China trade war started
and the US intensified its use of trade remedies against Chinese goods. On the other hand, the
trade conflict between the United States and China has raised the potential that China may leak
goods through a third country, raising the risk that the United States will use trade remedies
against the third country. In actuality, Vietnam is suffering the most as a result of American trade
remedy policies. For instance, certain steel products coming from Vietnam were immediately
subject to anti-dumping taxes once the United States filed anti-dumping trade remedies under
Act 232 against Chinese steel imports. Up to a 250% devaluation is feasible.

However, the US Government is now looking into 14 cases of anti-dumping trade remedies and
6 cases of anti-subsidy trade remedies involving imported goods from Vietnam. In parallel with
the examination of the products imported from China, 13/14 anti-dumping trade remedy cases
and 6/6 anti-subsidy trade remedy cases are being litigated.

- Social and cultural environment

Population size: 331.9m
Culture: Lifestyle: If you ask an American to imagine dinner, he or she will probably imagine
meat: perhaps a steak with potatoes, perhaps spaghetti and meatballs, maybe a hamburger,
maybe roast chicken. If you ask an American to list a dessert, he or she will start with the creamy
and chocolatey: mud pie, ice cream, peanut butter pie, cheesecake, etc. Even the fruity desserts
will usually be fruit with a lot of stuff: perhaps strawberry shortcake, with plenty of sugar, biscuit
topping, and whipped cream.
 - Economic

Compared to 2021, when it rose by 10.7% percent, or $2.25 trillion, current-dollar GDP
expanded by 9.2%, or $2.15 trillion, to a figure of $25.46 trillion in 2022.

The wealthiest 10% of earners owned 68.2% of all wealth in the US as of the fourth quarter of
2022. In contrast, only 3% of the total wealth was owned by the bottom 50% of earnings.

In the US, the annual inflation rate rose from 3.2 percent in 2011 to 8.3 percent in 2022. This
indicates that the value of the U.S. dollar has decreased recently.

As the COVID economic relief measures come to an end and the Federal Reserve (the Fed)
continues to tighten monetary policy, the economy is anticipated to slow down, bringing core
Personal Consumption Expenditure (PCE) inflation to the Fed's medium-term target of 2 percent
by late 2023. But if inflation persists longer than anticipated, the Fed will have to tighten even
more, which will cause the economy to slow down even more. The majority of workers' wages
have not kept up with inflation, diminishing household purchasing power and resulting in severe
hardship.
The mixed economy of the United States is very advanced. By nominal GDP, it has the biggest
economy in the entire world, and by purchasing power parity (PPP), it is second only to China in
size. As of 2022, its nominal per capita GDP ranks seventh globally and its PPP per capita GDP
ranks eighth.

Technological
With significant development anticipated in industries including artificial intelligence (AI), 5G
networks, e-commerce, renewable energy, and cybersecurity, the United States is anticipated to
maintain its position as a global leader in technology innovation and adoption in 2022.

15 of the 81 GII 2022 innovation indicators, including global corporate R&D investors, venture
capital investors, the caliber of its universities, the caliber and impact of its scholarly output, and
the value of corporate intangible asset intensity, give the United States the best global rankings.

- Agriculture
Fruit in the US is commented upon as: "You cannot begin to experience the wonderful taste that
the fruit ought to have if you only buy the items you can obtain at the supermarket. Eating a
grocery store grape is similar to eating a hologram of a grape because just the shape and color are
present.
Horticultural products, such as fruits, vegetables, tree nuts, wine, essential oils, nursery stock, cut
flowers, and hops, account for 50% of all agricultural imports into the United States. In 2015,
less than 18% of agricultural imports were sugar and tropical goods like coffee, cocoa, and
rubber. Vegetable oils, processed grains, red meat, and dairy goods imports have increased
dramatically in recent years.

China

1. Political environment:
China is a vast country located in East Asia, known for its rich history, diverse culture, and rapid
economic growth. Despite being one of the world's major powers, China ranks 113th on the
Political Stability Index, with a score of -0.48. This suggests that there may be some degree of
instability within the country's political system.
Additionally, China has a crime rate of 30.14, ranking it 108th in the world. While this figure
may seem high, it is important to note that China is a massive country with a population of over
1.4 billion people, and as such, crime rates may vary significantly from region to region.

According to Transparency International's Corruption Perceptions Index (CPI), China has a score
of 45 out of 100, indicating a moderate level of corruption within the country. Corruption can
manifest in various forms, such as bribery, embezzlement, and nepotism, and can have
significant negative effects on a country's economy and society. However, it is worth noting that
China has made significant efforts to combat corruption in recent years, including high-profile
prosecutions of government officials and the establishment of anti-corruption watchdogs.
China's economic freedom score is 48.3, making its economy the 154th freest in the 2023 Index.
Its score is about the same as last year. China is ranked 34th out of 39 countries in the Asia–
Pacific region, and its overall score is well below the global and regional averages. The
implication of it is that, China is not so much open for foreigners open company there.

2. Foreign relations/trade:
China has actively pursued free trade agreements (FTAs) with other countries and regions to
expand its trade and economic ties with the rest of the world. As of 2021, China has signed 17
FTAs with 26 countries and regions, including with the Association of Southeast Asian Nations
(ASEAN), South Korea, Japan, Australia, New Zealand, and Pakistan.
The FTAs have helped China to increase its trade volume and diversify its trading partners, while
also creating opportunities for foreign businesses to access the Chinese market. The agreements
cover a wide range of areas, including trade in goods, trade in services, investment, and
intellectual property rights.
One of the most significant FTAs for China is the Regional Comprehensive Economic
Partnership (RCEP), which was signed in November 2020. The RCEP is a free trade agreement
between China and 14 other Asia-Pacific countries, including Japan, South Korea, Australia, and
New Zealand. The agreement is expected to boost regional trade and investment, and further
integrate the economies of participating countries.
3. Social and culture environment:
China is the world's most populous country, with a population of over 1.4 billion people as of
2023. The population density in China is relatively high, with an average of 153 people per
square kilometer or 397 people per square mile. Despite this high overall density, China is a vast
country with significant regional variations in population density.
One of the defining characteristics of China is its cultural and ethnic diversity. The country is
home to 56 officially recognized ethnic groups, with the Han Chinese comprising the majority of
the population. The other ethnic groups include Tibetans, Mongolians, Uyghurs, and many
others, each with their own unique cultural traditions, languages, and customs.
The cultural diversity of China is also reflected in its religious landscape, with a range of
different faiths practiced throughout the country. The dominant religions in China are Buddhist,
Taoism, and Confucianism, although Christianity, Islam, and other religions also have significant
followings.

In terms of China, Hofstede's research suggests that the country has a relatively high power
distance, meaning that people tend to accept unequal distribution of power and authority in
society. China also scores high on collectivism, suggesting that the country places a strong
emphasis on group harmony and cooperation, rather than individual achievement. Additionally,
China scores 87 in this dimension, which means that it is a very pragmatic culture. In societies
with a pragmatic orientation, people believe that truth depends very much on situation, context
and time. They show an ability to adapt traditions easily to changed conditions, a strong
propensity to save and invest, thriftiness, and perseverance in achieving results.

4. Economic:
After a period of uneven growth in 2022, China's economy is expected to recover in 2023. The
country's continued adaptation of public health policies will be essential in mitigating public
health risks and minimizing further economic disruption.
As the world's second-largest economy in terms of nominal GDP, China's economy is a
significant player on the global stage. In 2021, China's GDP was valued at $17,734.06 billion,
accounting for 7.94 percent of the global economy. However, China's GDP per capita ranks
lower at around $12,800 in 2021, indicating that there is still significant room for growth in
terms of improving the standard of living for the average Chinese citizen

The annual inflation rate of China has decreased from 5.4% to 2% from 2011 to 2022, which
means that the purchasing power of Yuan has been increasing in recent years. Compared to other
major economies in the world, China has a moderate and stable level of inflation. The inflation in
China is on average lower than in other BRIC countries, although China enjoys higher economic
growth rates

5. Technological:

6. Agriculture:
China has a long history of agriculture and has always placed high priority on its development.
With a huge rural population, the Chinese government has implemented policies and reforms to
ensure the growth and modernization of its agricultural sector.
It ranks first in the world in terms of the production of cereals, cotton, fruit, vegetables, meat,
poultry, eggs, and fishery products. China has also built close links with other countries in the
field of agriculture, establishing exchange and cooperation with major international agricultural
and financing organizations, as well as over 140 countries.
Through south-south cooperation, China has been actively providing assistance to other
developing countries in support of their agricultural development.

- Micro environment
 US
1. Product Market Analysis
5. Country and Product Market Attractiveness
Micro

US

Product Market Analysis

The U.S. fruit and vegetables market size was valued at USD 92.88 billion in 2022 and is
expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2023 to 2030. Over
the same time frame, US fruit and vegetables market demand is predicted to show a similar
expansion. Simultaneously, the durian fruit market has gained remarkable popularity and market
demand for this kind of fruit has increased year-by-year.

The U.S.'s consumption of fresh fruits and vegetables was significantly affected by the
coronavirus outbreak. There was a significant demand for fresh fruits and vegetables despite the
fact that their supply was limited due to logistical and transportation issues. Since customers'
greater emphasis on eating healthfully and adding more fresh produce in their meals rather than
processed or frozen items was the reason behind this. For instance, the fresh fruits and vegetable
category prevailed in the US Market in 2022 by holding the largest market share of more than
80%.

The US is among the most demanding markets, but their demand for fresh fruit imports is still
significant. Annually, this country consumes about 12 million tons of fruit, of which domestic
production can only meet 70%, the remaining 30% (equivalent to 3.6 million tons) must be
imported (2022). Mexico is by far the largest supplier of U.S. imports of fresh fruit and
vegetables.In 2020, 58% of U.S. imports of fresh fruit and vegetables were from Mexico, higher
than the amount from the rest of the world combined. Other major suppliers, Canada, Peru,
Chile, and Guatemala accounted for 9%, 8%, 6%, and 5%, respectively. The United States is
among the largest importer of Durian in the World, most of its Durian come from Thailand,
Vietnam and China.

We can easily see that durian is not among the most consumed and favorite kinds of fruits in the
US like strawberries, bananas, grapes, etc. due to several reasons. Regarding durians, fresh
durians and frozen durians are the two main segments of durian besides durian related products.
However, frozen durian is the most-easily found since it is the tropical fruit native to Southeast
Asia. It is obvious that just a small amount of fresh durian can be harvested in Hawaii.
America is where the durian market is growing. Additionally, the product has become more well-
liked as a flavoring ingredient in the culinary business. In recent years, consumers have become
more open to experimenting with new meals, including those that have exotic flavors. All of
these elements are predicted to significantly increase the demand for durians throughout the
forecast period.

Three main distribution channels are Supermarkets and Hypermarkets, Convenience and
Specialty stores, and Online Platforms. Among the three above channels, Supermarkets and
Hypermarkets is the key channel providing customers a choice to physically verify products
while we can see the development of Online platforms recently, especially after the covid-19
pandemic. However, customers can easily find it at Asian supermarkets, Asian markets, and
some specialty stores.

Competitive analysis

The main suppliers of Durian in the US are overseas, Thailand remains the key player in this
market. The top 4 shipment records (to US) show that Thailand accounts for the most number of
durian shipments (3722), followed by Viet Nam (1705), Malaysia (1245), and China(337).
Vietnam nowadays accounts for about 1/3 US Durian market share. However, Vietnamese
enterprises are competing, even competing in our own 1/3 of the market share we have captured.

A number of durians' suppliers can be named in the US Durian Market. One of the famous local
retailers there is Miami A Fruit- a distributor that provides tropical fruits grown locally. They
provide both fresh and frozen durian. Regarding Fresh Durian market, Research finds the recent
significant developments by the leading vendors and innovation profiles in the United States
Fresh Durian Market, including Apek Durian, Fresh Pasteurized Durian Co.,Ltd, Hernan
Corporation Sdn. Bhd., Ingenious Durian Sdn. Bhd., MiraFoods, MUSPREME SDN. BHD.,
Oresco Plantation Sdn Bhd., Siam Oriental Food and Beverage co.,ltd., Sunshine International,
Thai Ao Chi Fruits Co., Ltd., and Thai Foods International Co., Ltd., most of them are Thai's
suppliers. In reference to the frozen durian market, durian pulp and paste, the major sold in the
US market, most of the wholesalers/suppliers joined the US market provide similar products of
frozen pulp and paste, whole durians. Some of the global FDA durian suppliers can be listed:
New Grand Ocean International Co.(Thailand/801 shipments), Tan Hue Vien Food Processing
Co.(Vietnam/12 shipments), Phuong Ngoc Cai Be Ltd. (Vietnam/8 shipments), etc.

Our biggest competitor in the US is Thai's suppliers, thus we cannot immediately and directly
compete with them. However, their frozen products are mainly second- and third-class products,
and are not as beautiful as our own. Thus, we can definitely make better products, to expand our
market share while Thai's market is still the leader. With the competitive advantages of a tropical
country, proper conditions of weather, kind of soil, and so on. Particularly, Chanh Thu focus on
tree care in the cold season, marking tree codes, using symbols to track fruit until harvest, pest
management as well as standard organic care are core values for Chanh durian. Collect quality
standards, reach out to the world market. It is our strategy to provide the US market with fatty,
fleshy and less sweet durians so as to match this region's taste.

Buyer analysis

According to David Sprinkle, research director for Packaged Facts, millennial consumers
increasingly seek healthy foods, and with the added convenience, they are likely and able to
purchase more fresh fruits and vegetables. Therefore, millennials remain the main consumers of
fruits and vegetables in the U.S. due to their increased digital presence. Online retailers adopt
strategies like offering large discounts and cashback, which are expected to attract this
demographic over the forecast period. With more frequent snacking habits among millennials
and their concerns about the costs have made online stores an attractive alternative.
The COVID-19 pandemic has changed consumer behavior, US' customers are looking for
healthy products. In addition, consumers are also more interested in products with convenience
and high preservation technology, as evidenced by the way Americans have received frozen
durian products in recent times. Consumers always compare fresh durian and frozen durian,
these two products have obvious differences in purchasing power and price. However, this gap is
gradually narrowing, and the consumption of frozen durian is increasing.

They aim at people of Asian descent who want to enjoy the taste of their homeland, those who
are open and willing to try and taste new, different kinds of things, fruits, as well as the one
taking care of health and realizing durian nutrients.

China
Product Market Analysis

The global demand for durian has increased in recent years. It is forecasted that the durian
demand, as well as durian market will continuously rise in the next few years. Thus, there is no
exception for China, the biggest durian importer all over the world. Likewise, China's durian
market size expands year by year. Over 4.2 billion dollars' worth of fresh durian was imported
into China in 2021 in the amount of 821.6 million kg. Fresh durian imports from China rose
more than sevenfold in annual value between 2017 and 2021.Nowadays, durian still creates a
fever in China. This kind of fruit became the leading import item of the country, both in volume
and in value thanks to the high and rise in demand of the people . It is estimated that China
spends US$ 4.2 billion on importing durian per year. In the next few years, China's demand for
durian rose in general despite some fluctuations. For instance, for the first time in many years,
China decreased its durian imports by 5% in 2022. Since durian is a fashionable and pricey fruit
for the Chinese, who spend billions of dollars on it every year, this suggests issues with the
country's economy and a likely decline in the income level of the populace. In the first 11 months
of 2022, durian imports to China totaled 767 000 tonnes, which is 42 000 tonnes less than during
the same period in 2021.

As the world's largest market for the fruit reopens after Covid,
competition for exporting durian to China is increasing between
established player Thailand and newcomers Vietnam and the
Philippines, of which Thailand is still the long-time and key player,
accounting for 60 percent of the import volume. Additionally, China
has a large and growing population, with a rising middle class and
increasing disposable income, which has led to an increased demand
for fruits and other agricultural products. Therefore, China
attracted many foreign companies. The top 10 fruit exporters to
China in 2022 by export value were Thailand ($6.28 billion, −3.8% YOY),
Chile ($3.35 billion, +40.8% YOY), Vietnam ($1.27 billion, +42.7% YOY),
the Philippines ($0.67 billion, +3.1% YOY), New Zealand ($0.63 billion,
−1.6% YOY), Peru ($0.57 billion, +39% YOY), South Africa ($0.26 billion,
+4% YOY), Cambodia ($0.25 billion, +19% YOY), Australia ($0.21 billion,
−32.3% YOY) and Indonesia ($0.21 billion, +0% YOY).

The two major categories are Fresh Fruit, Processed Fruit. By 2027, volume in the Fresh Fruits
segment is anticipated to reach 45.57 billion kg. In 2024, it is anticipated that the Fresh Fruits
segment will experience volume growth of 7.9%. In the area of Fresh Fruits, the average volume
per person is anticipated to reach 24.77kg in 2023. The segment's revenue for processed and
frozen fruits is expected to reach $8.88 billion in 2023. The market is anticipated to expand at
11.74% yearly (CAGR 2023-2027). The volume of the Processed & Frozen Fruits category is
anticipated to reach 1.78 billion kg by 2027. To reach private end customers (B2C), there are
both online and offline sales channels. Out-of-home consumption is not covered by the market; it
solely addresses at-home consumption.

Competitive analysis

Chanh Thu as well as many international fruit companies also compete in the Chinese fruit
industry to meet the demand for exotic and imported fruits among Chinese consumers. Locally,
despite failing multiple times, Chinese businesses continue to try and grow the fruit in the
provinces of Yunnan, Hainan, and the Guangxi region. As a result, durian grown on the tropical
island of Hainan in southern China will go on sale in June in amounts of about 2.45 million kilos.
Globally, Vietnamese durian majorly has to compete with Thai’s and Philippines’, Malaysian
durian, of which Thailand has been the key-player for a long time. For many years, Thai durian
has been "covered" in China. China Customs statistics show that by 2022, durian imports will
have increased by almost four times since 2017 and will total 825,000 tons, with 780,000 tons of
Thai durian making up the majority of that total. The Thai durian is a favorite among Chinese
consumers. In 2023, this market's overall orders were more than 200,000 tons.

Exporting companies in Thailand, Malaysia, etc. normally provide customers with products
similar to Vietnamese companies in general, and Chanh Thu in particular. However, the
difference is that Thai companies export both fresh and frozen durian, focusing on exporting
frozen durian; Malaysia just export frozen durian while we concentrate on fresh durian. Fresh
durian is also our competitive advantage compared to Thai’s and other competitors for several
reasons. As Thai’s durian is the main competitor to Vietnamese ones and Chanh Thu, we can
consider Queen Frozen Fruit Co, Ltd, among one of the biggest durian exporting companies in
Thailand as a main competitor. They signed a contract with an enterprise group on trading 5000
containers of both fresh and frozen durian, a tremendous amount when looking at and compared
to Vietnamese corporates and also Chanh Thu. To efficiently reach consumers, Queen Frozen
Fruit leverages partnerships with regional distributors, wholesalers, and retailers to develop
effective distribution networks and marketing channels throughout China. The promotion of the
distinctive features of their durian goods, the development of brand awareness, and interaction
with Chinese consumers via various marketing channels are possible marketing initiatives.
Furthermore, Queen Frozen Fruit establishes a competitive price strategy based on market
conditions, production costs, and competitors' pricing in terms of pricing and competitive
strategy. They might also develop a plan to set their durian products apart from those sold by
competitors, such as emphasizing premium quality, rare types, or specialized packaging. In
reference to supplier selection, Queen Frozen Fruit makes a rigorous selection of reputable
durian suppliers in Thailand and other nations, taking into account elements like quality, pricing,
volume capacity, and supply consistency. To guarantee a consistent supply of premium durian
for the Chinese market, developing strong ties with reliable suppliers can be essential.

According to the Vietnam Fruit and Vegetable Association, the Vietnamese durian has
advantages over durian grown in Thailand and the Philippines for sale to China. While Vietnam
permits exports throughout the year, those two countries can only do so during certain times of
the year. Additionally, it only takes 1.5 days to transport durian from Vietnam to China,
preserving the fruit's freshness. Transportation expenditures, particularly in Vietnam, are less
expensive than in those nations. Chanh Thu strictly checks the quality of products instead of just
looking at the quantity in combination with expanding the area of standard durian growing area.
We take advantage of the Vietnamese durian goodwill with the wonderful and best taste in
comparison to premium durian brands Musang King of Malaysia, Chanee and Monthong of
Thailand even though Vietnamese durian has not been good in branding. Especially,
concentrating on the time, specific time to harvest and transport for customer proper
consumption also taken into consideration.

Buyer analysis

The durian is considered a special fruit by the Chinese and should be consumed frequently. For
them, the demand for durian is really advantageous. When Chinese business people visit to put
orders prior to collection plans, they are delighted. Chinese people are willing to pay for durian
pleasant taste and view it as a premium product

Chinese shoppers frequently base their purchases on a product's brand. The public is familiar
with Malaysia's Musang King durian and Thailand's Monthong. Durian is particularly so among
young people, according to data released by Jingdong Supermarket in November 2022. Over 60
per cent of durians in the country are bought by consumers aged between 16 and 35. Besides,
there has been a growing awareness of health and nutrition among Chinese consumers, leading to
an increased preference for fresh fruits as part of a healthy diet. Thus, we target the ones who
want to try the exotic, special taste, can spend and are willing to pay for quality, expensive
products.

On the other hand, the biggest concentration of durian is currently found in Southeast Asia in the
Chinese city of Xishuangbanna in the Yunnan region. There are always a lot of vendors, visitors,
and tasty imported durians in this neighborhood. The market consumes about 1 ton of durians per
day during the peak tourist seasons

Opportunities: Threats
● Having FTA with Vietnam ● Extensive competition from other
● Demand for fruits has grown at a fast countries
pace in past decade ● Having insecure political environment
● Geographical location ● Consumers quen với các nhãn hiệu sầu
● Low inflation rate đến từ Thái Lan, Malay
● Người tiêu dùng Trung Quốc thích
hương vị sầu riêng

Hello cho điền với US China

Marco Environment ● High inflation, rising ● Low scores of political

Factors prices ⇒ weaken stability
consumption power ● High score of crime rate
● Average score of
● Fostering an open,
corruption
transparent, and ● Take advantage of tax
nondiscriminatory incentives because of
rules-based trading joining FTAs
system ● Dense population
● Fast-food culture ● Culture and ethnic
● diversity
● Promoting collectivism
● Low inflation rate
● Concentrate on
technological
development
● Experience in
agriculture development
Micro Product ● The U.S. fruit and
Environment Market vegetables market
Factors Analysis size was valued at
USD 92.88 billion in
2022
● It is expected to grow
at a compound annual
growth rate (CAGR)
of 4.1% from 2023 to
2030.

Competitive ● The main suppliers of

Analysis Durian in the US are
overseas, Thailand
remains the key
player in this market.
Thailand account for
the most number of
durian shipments
(3722)
● Miami Fruit- the
famous local retailer
who provides tropical
fruits grown locally.
They provide both
fresh and frozen
durian

Buyer ● Millennials remain ● về khẩu vị, người tiêu

Analysis the main consumers dùng Trung Quốc thích
of fruits and ăn trái sầu riêng chín
vegetables in the U.S mềm. Link
● The COVID-19
pandemic has
changed consumer
behavior, US'
customers are looking
for healthy products.
● Consumers are also
more interested in
products with
convenience and high
preservation
technology,
● Consumers always
compare fresh durian
 and frozen durian,
these two products
have obvious
differences in
purchasing power and
price. However, this
gap is gradually
narrowing, and the
consumption of
frozen durian is
increasing

We have identified both the United States and Chinese markets as promising for market
penetration, but ultimately plan to focus on entering the Chinese market.
Despite being one of the first countries affected by the COVID-19 pandemic, China's economy
has managed to maintain growth. In fact, the decreasing inflation rate over the past few years
suggests an increase in China's buying power.
Moreover, the Chinese market has a high demand for durian fruits. In 2021 alone, China
imported 900,000 tons of durians, with the number expected to continue to rise, indicating a
market with long-term potential. Another advantage for the company is its proximity to China,
allowing for a reduction in logistics costs. Additionally, the Chinese market is now open for
Vietnamese durians after four years of negotiations. In 2022, Vietnam officially exported over
100 tons of durians to China. The company can also benefit from free trade agreements, as the
current export tax rate for durians to China is 0%.
Although the Chinese market for durian fruit is highly lucrative, there are significant challenges
that Vietnam faces when exporting to China. The biggest challenge is competition from other
Southeast Asian markets such as Thailand, Malaysia and the Philippines.
Recently, Thai durian exporters and China's Vannam Dimiao E-Commerce Company signed an
agreement worth 500 million baht ($14.6 million) allowing the Chinese company to purchase
durians from Thailand for the next five years. Thailand is also the first country to have its durian
officially exported to China, and it holds the largest market share in this industry.This agreement
poses a threat to Vietnamese durian exporters as it intensifies the competition in the Chinese
market. To compete effectively, Vietnamese companies need to maintain high-quality products
and efficient logistics to ensure timely delivery. Despite these challenges, the Vietnamese durian
industry has great potential, and with the right strategies and investment, it can penetrate the
Chinese market and secure a significant market share.
In addition to the challenges posed by competition from other countries, the Vietnamese durian
market also faces internal difficulties. Although the Chinese market is open to Vietnamese
exports, only a few regions have been approved, and the amount of durians approved for export
from these regions is small compared to the demand. As a result, there have been cases of fraud,
which, if left unchecked, could significantly affect the quality of Vietnamese durian products and
the industry's reputation.
Competition is inevitable when companies seek to enter any market, and this is also true for
Chanh Thu, despite the intense competition from both local and foreign organizations. However,
the company sees competition as a means to improve and develop itself in the future. Chanh Thu
always sets its own standards, no matter which market it enters. For example, when it comes to
the Chinese market, the value that the company wants to bring to Chinese consumers is high-
quality products. Ngo Tuong Vy, the representative of Chanh Thu Corporation, aims to establish
standards that connect all parties involved in the supply chain, including farmers, cooperatives,
businesses, and other participants. This will ensure that Chanh Thu's products meet the same
quality standards, regardless of their origin.
Entering the Chinese market not only brings profits to Chanh Thu, but also provides an
opportunity for the company to fulfill its mission of building trust and establishing a national
brand for its products. By maintaining its standards and focusing on quality, Chanh Thu can
establish a strong reputation in the Chinese market and contribute to the development of
Vietnam's agricultural sector.

Tại sao không lựa chọn các cách entry market khác:
Hiện tại, Chánh Thu đang vào thị trường trung quốc theo cách exporting và strategic alliances
(non equity) với một số chuỗi siêu thị. Đây là một cách thức phù hợp để có thể vừa giảm thiểu
rủi ro, vừa đạt được mục đích về kinh tế của công ty.
Cách thức này được xem là phù hợp hơn với những cách thức khác vì có thể nói, đây là một
thương hiệu tương đối mới mẻ với người trung quốc vì vậy contractual agreement gần như là
không hợp lý.
Đối với việc establishing a subsidiary, greenfield nhà máy sản xuất là điều không được khuyến
khích. As mentioned in macro economic part. China is a country with low market freedom mark.
As a result, green fields will gain more threats than opportunities. Also, Chánh Thu want to
branding them self as a high quality Vietnamese brand, that is not necessarily trying to producing
product in foreign market.

V. Marketing objectives:
Target Market share:
Theo CFNA, Thái Lan chiếm 96% kim ngạch nhập khẩu sầu riêng của Trung. Các nguồn ít ỏi
khác bao gồm Việt Nam, Philippines, Malaysia và cả Campuchia.Điều này giúp kim ngạch xuất
khẩu sầu riêng của Việt Nam năm 2022 đạt gần 400 triệu USD, trong đó 300 triệu USD sang
Trung Quốc. Link kim ngạch xuất khẩu sầu riêng đã đạt 420 triệu USD. Link
Báo cáo của Viện Chính sách và Chiến lược phát triển nông nghiệp nông thôn cho thấy, chỉ sau
một tháng được cấp phép, xuất khẩu sầu riêng đã tăng khoảng hơn 4% so với cùng kỳ 2021, vượt
qua thanh long để trở thành loại trái cây có giá trị xuất khẩu lớn nhất sang Trung Quốc. Tính đến
cuối năm 2022, trong tổng kim ngạch xuất rau quả hơn 3,3 tỷ USD, trái sầu riêng mang về gần
400 triệu USD chỉ sau ba tháng góp mặt vào danh sách xuất khẩu chính ngạch.
Lô sầu riêng hàng trăm tấn (khoảng 20 container) được xuất khẩu chính ngạch lần đầu sang thị
trường Trung Quốc kể từ ngày 17/9. Trong đó, công ty Chánh Thu được xuất 3 container (mỗi
container khoảng 18 tấn) Link

Mục tiêu xuất khẩu 20.000-30.000 tấn sầu riêng sang Trung Quốc trong năm 2023.

Năm 2022, sầu riêng tiếp tục là loại trái cây nhập khẩu số 1 của Trung Quốc với tổng khối
lượng nhập khẩu là 825.000 tấn, đạt 4,03 tỉ USD. Theo CFNA, Thái Lan chiếm 96% kim ngạch
nhập khẩu sầu riêng của Trung. Các nguồn ít ỏi khác bao gồm Việt Nam, Philippines, Malaysia
và cả Campuchia. Vào tháng 9/ 2022, Trung Quốc đã cho phép Việt Nam xuất khẩu sầu riêng
vào thị trường của họ theo con đường chính ngạch. Và Lô sầu riêng hàng trăm tấn (khoảng 20
container) được xuất khẩu chính ngạch lần đầu sang thị trường Trung Quốc kể từ ngày 17/9.
Trong đó, công ty Chánh Thu là một trong 5 doanh nghiệp xuất khẩu sầu riêng được xuất 3
container (mỗi container khoảng 18 tấn). Báo cáo của Viện Chính sách và Chiến lược phát
triển nông nghiệp nông thôn cho thấy, chỉ sau một tháng được cấp phép, xuất khẩu sầu riêng đã
tăng khoảng hơn 4% so với cùng kỳ 2021, vượt qua thanh long để trở thành loại trái cây có giá
trị xuất khẩu lớn nhất sang Trung Quốc. Tính đến cuối năm 2022, tổng kim ngạch xuất khẩu sầu
riêng của Việt Nam đạt gần 400 triệu USD, trong đó 300 triệu USD sang Trung Quốc. Tổng thư
ký Hiệp hội rau quả Việt Nam (Vinafruit) Đặng Phúc Nguyên cho biết, năm 2023, nếu thuận lợi,
kim ngạch xuất khẩu sầu riêng của Việt Nam có thể đạt trên dưới 1 tỷ USD. Đứng trước những
cơ hội vàng, mục tiêu của Chánh Thu là xuất khẩu 20.000-30.000 tấn sầu riêng sang Trung
Quốc trong năm 2023.
Bên cạnh đó, mục tiêu của Chánh Thu trong năm 2023 là xây dựng thành công sản phẩm với
thương hiệu trái cây “Chánh Thu – Made in Việt Nam” để mở rộng thị trường tại Trung Quốc
và làm tiền đề tiếp cận thêm nhiều quốc gia khác trên thế giới.

Target marketing segmentations:

Pricing:
Sau thông tin Việt Nam được xuất chính ngạch sang Trung Quốc, giá sầu riêng tại nhà vườn
đang tăng mạnh lên 60.000-70.000 đồng một kg. Link

Position:
Chất lượng cao,

Branding:
Chanh Thu Fruit Export Group Joint Stock Company, revealed her intention to export 20,000-
30,000 tons of durian to China in year 2023. Link
Các bước xd branding Link
XD thương hiệu trái cây Made in VN Link : xây dựng thành công sản phẩm với thương hiệu
trái cây “Chánh Thu – Made in Việt Nam” để mở rộng thị trường tại Trung Quốc và làm tiền đề
tiếp cận thêm nhiều quốc gia khác trên thế giới. Link
Entry Strategy
Chanh Thu is now entering into the Chinese market through exports and non-equity alliances
with various supermarket chains. This is an appropriate strategy for reducing risk and achieving
the business's financial objectives.
To access the China market, we decided to form non-equity strategic alliances. This is an
appropriate strategy for reducing risk and achieving the business's financial objectives. In order
to collaborate in trade promotion, Chanh Thu will specifically look for and work with retailers
like China hypermarkets, supermarkets, etc. Retailers will pick up the products from Chanh Thu
at the border, transport them to their warehouses, and distribute them through distribution
networks. We selected this entrance method over others because: when Chanh Thu deals directly
with retailers rather than going via intermediaries like wholesalers, the company will have better
control over the product's distribution channels and pricing or marketing strategies. With the
objectives of building a brand associated with quality and prestige - not only of Chanh Thu but
also of Vietnamese fruits, signing a long-term cooperation with retailers instead of simply
exporting will be the first step to lay the foundation for the relationship between Chanh Thu and
the Chinese distributors. Chanh Thu also will save money because wholesalers won't be
involved, which may be put toward other business ventures or utilized to more competitive
pricing on the products they sell. It can be seen that strategic alliances are superior to other
strategies for a variety of reasons. For instance, it is not advisable to establish durian farms and
factories in China because of, as stated in the macroeconomic research section, the country's
current low level of political stability, its high rate of crime, and—most importantly—its climate
and soil conditions. Vietnam is a better place than China to grow durians.

There are some risks, though, and we need to carefully consider them in order to mitigate them.
First off, when an exporter doesn't completely comprehend the target market or has no prior
experience exporting to that market, doing business directly with the retailers may lead to
logistical and business dangers. Chanh Thu's financial potential and size have also prevented the
corporation from setting up office in China, making it more challenging to oversee commercial
operations there. The second potential risk is that buying durian does not ensure its high quality.
CEO Ngo Tuong Vy claims that certain farms in Vietnam still export products without a quality
guarantee, harming the reputation of Vietnamese fruits. If this situation does not change, there is
the danger that Chanh Thu will not purchase enough durian production as outlined in the plan,
will not have enough supply for partners, and will thus have an impact on their relationship
collaboration in business between the parties.

Có rất nhiều cơ hội cho Chanh Thu trong việc establish strategy alliances với China retailers, nổi
bật nhất trong số đó là việc Trung Quốc đã cho phép Việt Nam xuất khẩu sầu riêng chính ngạch
kể từ 2022.
Establishing a subsidiary: e.g. establish a factory

The reasons why we choose this entry strategy instead of other strategies are