Slide 15

Thailand is said to be a potential market for Vietnamese dairy exporters. Mr. Tran Thanh Hai,
Senior Executive Vice President of Central Group Thailand, said that many Vietnamese
enterprises have always thought that Thai and Vietnamese goods have similar characteristics, so
they are hesitant when exporting goods to Thailand because they think that their products cannot
compete in price and quality with Thai products. However, if Vietnamese businesses can see the
advantages and differences in products, the opportunity to penetrate this market is still very large
(VNBussiness, 2018).

Trade and services between Vietnam and Thailand have increased steadily over the years, even
during the outbreak of the pandemic. With only 10 months in 2022, trade between the two
countries has reached 17.8 billion USD, increasing faster than 2021's 18.8 billion USD/year
(Thanh nien, 2022).

In addition, according to Vietnam's Deputy Minister of Industry and Trade Do Thang Hai, in
recent years, the Vietnamese Government has created favorable conditions for businesses to
promote direct exports to distribution systems in other countries, including Thailand. Moreover,
the ASEAN Trade in Goods Agreement states that dairy products importation entering the Thai
market is taxed at a rate of 0% and not limited by import tariff quotas (Cong thuong, 2018).

Slide 17 – CHART GDP

As for the opportunity of transportation, thanks to the geographical location of the East-West
corridor to move goods through the sea, the Bangkok port, or to use the transport route from the
central region - Lao Bao border gate (Quang Tri) to the Savannakhet region of Laos to the Thai
border, Dalat Milk can conveniently export goods to this market (Dananf Port, 2022).

Besides, Thailand has a milk consumption per capita 1.3 times higher than Vietnam (Thailand
consume about 35 liters per person in a year, much higher than the consumption of 28 liters of
Vietnam) (Sai Gon Giai Phong, 2022). This proves that the demand for milk among Thai people
is very high. With a lifestyle with many cultural similarities, Dalat Milk can take advantage of
this similarity to reach Thai consumers. In anticipation of the healthy eating trend of Thai people,
people spend a lot on dairy products, so this is a potential market for Dalat Milk to develop.
Dalat Milk's products are at an average price, neither too high nor too low, so when entering the
market with a GDP of $7.63/person/year (2022) - the second largest in ASEAN, Dalat Milk's
products with Such a cost would be easily consumed (Cafe F, 2022).

Slide 18
In addition, the Thai dairy market is expected to grow at CAGRs of 4.7%, 6.2%, and 4.8%,
respectively, for the three main dairy lines during the forecast period 2018-2022 (Nguoi Dong
Hanh , 2022). Overall, with such strong growth, this is an opportunity for Dalat Milk to enter this
market.

Slide 19

Any enterprise's globalization process must be ethical and sustainable for the betterment of
humankind and the business world. Therefore, in this part, I am going to introduce to you how
the ethical and sustainable factors affect the operation of Dalat Milk when the company intends
to enter the Thai market.

According to Singh (2019), ethics is a crucial element of every company. This is a set of
regulations that have been used to control a business and certain methods. In its corporate
responsibility statement, Dalat Milk pledges to be the kind of company that society. The crucial
part of this commitment is how the firm treats its colleagues, suppliers, and business partners.
This policy describes the steps Dalat Milk is taking to end slavery, forced labor, human
trafficking, and child labor in all of its activities. In truth, globalization has had a significant
impact on how corporate ethics have evolved in many nations over the past few decades.
Therefore, the corporation must take the surrounding ethics into account before making specific
decisions for the penetration process. The organization will be motivated by ethical concern to
pursue ideas and ventures that are good for the overall scope of the business environment.
Additionally, it was recognized that the reputation of a Dalat Milk will be affected by the ethical
choice, thus great care must be used while choosing an ethical path.

Slide 20

In the 21st century, sustainable globalization represents a turning point and a sea change in how
people approach conducting business internationally. Much like digital transformation, driving
sustainability requires Dalat Milk to transform every division of its business by applying
innovative technology. Or the efforts to improve bottling and recycling,... have helped Dalat
Milk consolidate its sustainability for a long time. However, in 2021, Dalat Milk Company
violated the law on environmental protection and water resources by discharging wastewater
without a license and was fined up to 300 million VND (Kinh Te Tap Doan, 2021). Therefore, if
Dalat milk want to enter a new market, it needs to quickly overcome this problem so that the
products of Dalat Milk will lead to perfect image and lasting impression on consumers so that the
companies can attract a better number of people in the market they want to enter.

Slide 21 – CHART

Culture is one of the factors that greatly affect people in many aspects, one of which is the
economy. One of the problems that Dalat Milk needs to solve when it wants to penetrate globally
is cultural differences. To be able to succeed in another culture, managers need to understand and
master the specific cultural factors in the country they want to penetrate. As for cultural factor,
we will use Hofstede model to compare the similarities and differences of Vietnam and Thailand
culture.