BUSM3030 INTERNATIONAL BUSINESS PROJECT

SPRING 2023

International Market Entry Feasibility Study Report

VIoT, LaaS, South Korea

IBP Group 1

Vo Tran Duy Tan (22049933), 22049933@student.westernsydney.edu.au

Vu Nguyen Duc Khoi (22026976), 22026976@student.westernsydney.edu.au

Dang Uyen Nhi (22027847), 22027847@student.westernsydney.edu.au

Van Quoc Minh (22084695), 22084695@student.westernsydney.edu.au

Truong Nguyen Long (22068568), 22068568@student.westernsydney.edu.au

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 Table of Contents

Executive Summary..................................................................................................................................................

Updated Summarised Market Profile/ Requirements..........................................................................................

Updated Previous Market Entry Experience.........................................................................................................

Marketing Analysis...................................................................................................................................................

A. Solution Description........................................................................................................................................

B. Channels of Distribution..................................................................................................................................

C. Targeted Consumer Analysis for Nominated Market......................................................................................

1) Broad Market..............................................................................................................................................

2) Initial Market Segmentation.......................................................................................................................

3) Initial Targeting and Positioning................................................................................................................

4) Competitors analysis..................................................................................................................................

5) Product/Service Strategy............................................................................................................................

6) Discussion on Relevant Expression of Product or Service Into Service for Nominated

Market.............................................................................................................................................................

7) E-Marketing Strategies...............................................................................................................................

Selection for entry approach...................................................................................................................................

Additional Considerations affecting Entry Mode..................................................................................................

1. Financial attractiveness and incentives.............................................................................................................

2. Government considerations and incentives......................................................................................................

3. Distribution.......................................................................................................................................................

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 4. Discussion on Market Entry Option into Nominated Market as a Possible Platform for

Entry into Other Market.......................................................................................................................................

Legal Consideration.................................................................................................................................................

A. Trade policy.....................................................................................................................................................

B. Governmental policy on foreign investment....................................................................................................

C. Registration of company..................................................................................................................................

D. Ownership of the entity...................................................................................................................................

E. Intellectual protection.......................................................................................................................................

Risk Analysis.............................................................................................................................................................

A. Political Risk....................................................................................................................................................

B. Trade Risk........................................................................................................................................................

C. Economic Risk.................................................................................................................................................

D. Property Expropriate Risk...............................................................................................................................

E. Capital Repatriate Risk....................................................................................................................................

Financial Support.....................................................................................................................................................

A. Type of Financing for Proposed Project..........................................................................................................

B. Sources of Financing........................................................................................................................................

I. Initial Equity or Capital For Venture and Market Entry.............................................................................

II. Internal Sources.........................................................................................................................................

III. External.....................................................................................................................................................

Financial Analysis.....................................................................................................................................................

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 A. Financial Analysis Assumption.......................................................................................................................

1. Market Segments Size and Value...............................................................................................................

2. Price............................................................................................................................................................

3. Sale Estimation...........................................................................................................................................

4. Revenue......................................................................................................................................................

B. Key Financial Indicators..................................................................................................................................

1. Income Statement.......................................................................................................................................

2. Cash Flow Statement..................................................................................................................................

3. Break-Even.................................................................................................................................................

4. Summary discussion on Indicators.............................................................................................................

5. ROI.............................................................................................................................................................

Management Team...................................................................................................................................................

A. Discussion on Local and Expatriate Composition...........................................................................................

B. Structure including alignment with Head Office.............................................................................................

CONTROL STRATEGIES.....................................................................................................................................

A. Difficulty of IB................................................................................................................................................

1. Distance......................................................................................................................................................

2. Diversity.....................................................................................................................................................

3. Degree of certainty.....................................................................................................................................

B. Centralized versus decentralized Policy..........................................................................................................

Sustainability.............................................................................................................................................................

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 A. Government Regulations and Incentives for Sustainability............................................................................

B. Company’s Orientation Toward Green Growth and SDGs Recommendation................................................

Timetable for Implementation i.e., Market Entry.................................................................................................

Conclusion.................................................................................................................................................................

References..................................................................................................................................................................

Appendices................................................................................................................................................................

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 List of Abbreviations and Acronyms

Abbreviations/Acronyms Definition

AKFTA ASEAN Korea Free Trade Agreement

CLP Connected Luminaire Platform

FTA Free Trade Agreement

ROK The Republic of Korea

ROKG The Republic of Korea Government

ICT Information and Communications Technology

LaaS Lighting as a Service

RCEP The Regional Comprehensive Economic Partnership

SGD Sustainable Development Goals

SROV Social Republic of Vietnam

VKFTA Vietnam Korea Free Trade Agreement

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 Executive Summary

This report will evaluate and provide a detailed analysis of the South Korean (ROK)

market penetration strategy for VIoT Group, a trailblazing Vietnamese startup dedicated to

cutting-edge IoT solutions for intelligent cities (VIoT, n.d.). The report will update the summary

of the ROK market profile and the company's market penetration experience. Accordingly, the

market and legal environment analysis will recommend an appropriate market entry and digital

marketing strategy. When entering the South Korean market, VIoT should apply the greenfield

method and build a representative office to take advantage of government subsidy policies for

the sustainable development industry. In particular, the structure and personnel composition of

the representative office needs to be streamlined and effective with the contribution of the local

workforce to create a multicultural working environment. Multiculturalism in the work

environment ensures the quality of work is reinforced from many perspectives. For the e-

marketing strategy in the B2B sector, VIoT's top priority is to create a video introducing the

business and the solution it is providing to promote on the B2B sourcing platforms and social

networks used. popular in South Korea. The study also analyzes risks and points out bright spots

in each risk that VIoT can exploit to minimize negative effects. Finally, VIoT needs to ensure

compliance and revolve around the responsibility of sustainable development, which highlights

Goals 8, 9, 11, and 12 of the 17 SDGs.

Updated Summarised Market Profile/ Requirements

Political and trade regulations are inter-correlated with overseas execution and supply

chain capabilities of businesses in the B2B environment (Wang & Xiao, 2022). Korea maintains

stable trade relations with countries and economic regions worldwide and implements an

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international trade strategy for reaching the Southeast Asian market (Feiteng, 2022). However,

corruption to "grease the wheel" has become the norm in the political-economic relationship in

Korea. These are the opportunity costs that help "lubricate" the project; These costs will

influence the choice of marketing solution and entry method. The ROK's market context

promises many development prospects for enterprises operating in green technology. In addition,

the Ministry of Economy and Finance also reduced the basic corporate income tax from 25% to

22% for multinational enterprises and 10% of corporate income tax, especially for SMEs (Ernst

& Young, 2022) (Appendix A). Koreans have a high and long-term awareness of environmental

conservation and emphasize detailed planning in corporate culture. Understanding the difference

in corporate culture could assist VIoT Group in effectively establishing partnerships.

Table 1: Political and Legal Environment

Political ● Democratic Republic.

● Launching an international campaign for strengthening ties with

ASEAN and India (Ballbach, 2023).

● High level of corruption (Figure 1).

Figure 1

South Korea Corruption Index in 2022

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 Adapted from (Trading Economics, 2022)

● Pioneering nation implementing measures to prevent light

Legal pollution (Cha et al., 2014; Guanglei et al., 2019).

● Regulatory opacity and unanticipated regulatory changes.

Table 2: Economic and Trade Outlook

Economic Indicators Export/import value & trade ● Export: $52.2 billion

deficit (May 2023): ● Import: $54.3 billion

(CEIC Data, 2023) ● Trade deficit: $2.1 billion

Inflation rate: ● Service and utility prices is

increasing due to the core

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 inflation rate remained steady at

4% (OECD, 2023) (Appendix B).

● ROKG promotes green technology and infrastructure and strives to

implement renewable energy and energy-saving initiatives to

Trade Outlook maintain its energy security (Park & Koo, 2018).

● Despite substantial corruption levels, ROK enjoys robust

economic growth (Trabelsi, 2023) (Appendix C).

Table 3: Target Market Profile

Total population: 51,401,221 (Worldometers, 2023)

Population ● Seoul (9,668,008)

(Statista, 2022) ● Incheon (2,849,000)

● Gyeonggi-do (13,930,000)

Language ● Korean 100% and English 10.3% (Worldometers, 2023).

Culture ● Koreans emphasize detailed planning to minimize risk and

uncertainty (Buja, 2016) (Figure 2).

Figure 2

Countries Culture Comparison Using Hofstede Framework

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 Adapted from (Al-Alawi, 2016)

● Citizens demonstrate a high degree of understanding and concern

about climate change (Rosenberg, 2021).

● Huge demand for remote management software.

Table 4: Infrastructure

● Finish overhauling the public transport system by 2024 (Mordor

Transport Intelligence, 2020)

● The Fourth National Railway Plan would allocate KRW 114.7 trillion

to modernizing the rail network (Jensen, 2023)

● Internet penetration rate reached 98 percent of the total population in

E-readiness 2022 (Kemp, 2023)

● Ranked 6th Government AI Readiness Index (Statista, 2023).

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 Updated Previous Market Entry Experience

Most born-global firms are technology ventures (Tanev, 2012). Currently, VIoT's

operation model is following the Uppsala model to initially gain experience overseas by entering

culturally and institutionally close markets, and later progressively heading to far-off countries

(Johanson & Vahlne, 2009). VIoT products and services are creative solutions that were trusted

by global partners and customers in over ten countries such as France, the Netherlands,

Australia, Korea, and Taiwan (VIoT, n.d.). Having a lighting management solution that is highly

compatible with a variety of low-frequency wireless waves and the growing demand for

sustainable development in Korea, VIoT has a high opportunity to build its position in this

market. Moreover, the company's experience participating in technology competitions, seminars,

and trade connections also strengthens its ability to penetrate foreign markets. A detailed analysis

is provided in Appendix D.

Marketing Analysis

A. Solution Description

Sejong Connected Luminaire Platform (CLP) software helps users to program the

lighting operation remotely, in detail to each shade, and automatically turn on, off or adjust the

brightness (dimming). Two critical components of the service are CLP software and smart

switchboard control equipment for efficient lighting management (Figure 3). However, the

customer is not responsible for managing the lighting performance or maintaining the electronic

equipment, but the VIoT side will take full responsibility for these activities.

Figure 3

Operational Structure Diagram of CLP Solution

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 Adapted from (VIoT, 2017)

B. Channels of Distribution

In order to optimize costs and efficiency, VIoT needs to build its supply chain closely

with upstream and downstream partners to provide and deliver LightUp services. For upstream

partners, VIoT should cooperate with electrical components suppliers such as L&S LED,

Kerlink, and INNODEP. For downstream partners, VIoT should build relationships with

construction and installation contractors. The downstream relationship aims to perform routine

installation and maintenance work for customers under the guidance and supervision of VIoT.

C. Targeted Consumer Analysis for Nominated Market

1) Broad Market

With more than 51,4 million people (Worldo Meter, 2023), ROK has a wide market to deploy. In

addition, ROK has an aging population when the median age was 42.8 in 2020 (O’Neill, 2023).

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The situation requires a densely invested lighting system to assure the safety of citizens.

Moreover, ROKG has planned to establish ten special economic zones by 2027 (Im, 2023). More

than 44 industrial complexes and 2 smart industrial zones (The Korea Bizwire, 2019), Korea is a

broad market to penetrate.

2) Initial Market Segmentation

VIoT is suggested to initially divide the portfolio into 2 segments which are B2B and B2B2G.

In the B2B market, VIoT should rely their segmentation on some approaches such as

firmographic, customer-need base, and behavior. Mostly, those are based on the need of

economic advantages, VIoT can expose and win the market share when VIoT helps to cut costs

(Appendix E.1).

Exposing the B2B2G market, it is recommended that VIoT should categorize 2 main portfolios

including manufacturing industry and public infrastructure. It is not only because ROK has a

wide industrial zone coverage but also because of the aging situation of public infrastructure.

Penetrating to this fertile market will boost the company’s business growth (Appendix E.2).

3) Initial Targeting and Positioning

Apparently, the target customers that VIoT should concentrate on are real estate developers,

industrial complexes, etc. VIoT offers an advanced and updated technology with numerous

quantities that meet the expectation of even the picky customers. With the clear vision of

sustainability and the high-quality service, VIoT is an accurate choice to collaborate with.

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 4) Competitors analysis

a. Domestic competitors

In comparison with other domestic competitors in the Vietnamese market, Rang Dong

Corporation, the indirect competitor for VIoT Group in implementing quality management

system into their LaaS system namely LEAN 6 Sigma and TPM management tools (Rang Dong,

n.d). Recently, Rang Dong had strategic partnerships with Seoul Semiconductor Vietnam (SSC)

and Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) in

developing the LED 4.0 ecosystem (Rạng Đông, n.d). However, Rang Dong currently lacks

financial transparency and had previous failures with foreign collaboration partners (Appendix

F).

In contrast, Vilight, direct competitors with VIoT has proved their significant

involvement in large-scale domestic projects (Vilight, 2022). Zigbee 2.4GHz wireless

transmission and Nema controllers are the modern control systems that position Vilight in the

Vietnamese LaaS industry. Nevertheless, Vilight lacks experience working with foreign entities

in either local projects and global markets.

b. International competitors

The Merlot Laboratories stands out with its variety product range, especially the M1000

and M3500 chips for light bulbs and high-power resources. Additionally, Merlot's advantage

comes from a strategic location as its headquarters and factory are in Seoul, South Korea along

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with a significant investment fund of 6111.7 million Won, which is estimated at 480,000 USD

(Crunchbase, n.d)

Seoul Semiconductors is the most direct competitor for VIoT in the Korean market,

which its WICOP chip competes directly with the LightUp project. The company currently

possesses 1.3 trillion KRW (approximately $1 billion USD) in revenue with impactful global

presence (Statista, 2022). However, shortage in retention rate of employees and customer

services investments are the company's current problems(Appendix F).

5) Product/Service Strategy

VIoT’s service strategy should be strategically demonstrated. It is hard for duplicating the

same strategy as existing competitors but brand indulgence and UI/UX are potentially

developing (Appendix G).

6) Discussion on Relevant Expression of Product or Service Into Service for Nominated

Market

Service contributes 58.2% of total ROK’s GDP in 2022 and employs 70% of total employment

in ROK in 2021 (World Bank, 2022). VIoT can create online specialty LaaS retail, a lucrative

niche sector in the coffee industry, as a result of the rising demand for online services (Appendix

E.3).

7) E-Marketing Strategies

a. Presence, customer interface.

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 A website is one of the most crucial digital marketing tools since it acts as the focal point

for all marketing initiatives (Rizvanović et al., 2023). B2B companies must prioritize investing in

the website's effective and friendly user interface (UI) to increase visitor-to-customer conversion

possibility. However, VIoT's website interface is space-occupied and unprofessional. Therefore,

a business introduction video and the Sejong CLP solution introduction video are recommended

for VIoT based on the 7Cs marketing model of Rayport and Jaworski (2002). Specifically, the

solutions better visualize the company’s services to ensure that clients are fully understood.

b. E-Commerce Capabilities

The development of digital infrastructure has led to the explosion of e-commerce and

online sourcing in B2B. According to Statista (2022), the ROK's eCommerce market is expected

to generate US$85.48 billion in revenue in 2023 and is the 6th largest in the world. The

developed e-commerce environment facilitates reducing cost pressure for VIoT startups because

the company can compare and choose the most optimal and cost-effective advertising channel.

c. Customer Relationship Management

Businesses that build and nurture strong B2B relationships can differentiate themselves

from rivals and gain from client loyalty, retention, and referrals (Faridani, 2022). Specifically,

VIoT should use CRM tools to increase customer interactions and take care of customers through

direct email. The forms of customer care can be mentioned such as updating market news,

business news, and announcing promotion packages for early birds.

d. B2B Information Management

The information and communication between VIoT and its partner can be managed via mutual

agreements between parties, email or related channels.

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 e. Collaborative and E-Marketing Approaches

VIoT can do electronic marketing in the form of pay-per-click (PPC) and search engine

optimization (SEO) through KakaoTalk, Google ads, Youtube ads, and Naver. These social

media platforms have dominant users in all areas, namely social networks and search engines,

accounting for 92%, 70.8%, 88.8%, and 23.9% respectively. total population (Jobst, 2023). In

addition, VIoT can market through B2B product and service sourcing platforms such as

GlobalSources, TradeKorea, or EC21 (Figure 5). Finally, VIoT can also market via email

because it is the most effective marketing channel for B2B companies with the highest ROI

(Lesonsky, 2020).

Figure 5

GlobalSources B2B Sourcing Platform Interface

Adapted from (Global Sources, n.d.)

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 Selection for entry approach

It is suggested that the most effective and appropriate with VIoT is direct foreign investment, and

the branch proposed is greenfield. This method gives VIoT the greater control on decision and

operation (Maverick, 2022). Therefore, greenfield FDI ought to have a bigger effect on growth

(Harms & Meon, 2012). Initially, when entering the South Korea market, in order to facilitate the

process and hold the pattern of software systems, VIoT should establish the limited company as

the physical performance in ROK.

Additional Considerations affecting Entry Mode

1. Financial attractiveness and incentives

Labour

Working in an advanced industry requires VIoT to establish a professional and high-

skilled workforce, specially, employees in ROK. Additional market researchers and

representation management staff are needed in South Korea as a result of the market expansion.

In a B2B setting, the representative managers are in charge of identifying, choosing, managing

clients, and monitoring the process.

Tax incentives and allowances

Since 2005, Vietnam and ROK have participated in many regional agreements such as

AKFTA in 2005, VKFTA in 2015. Those FTA open a free trade zone for bilateral parties which

incentivize the trading and integration between two countries. The ROK and the SROV have

19
unanimously facilitated the trading activities by eliminating the imported tariffs, also

strengthening intellectual property protectionism.

Raw material

Most of the partners of VIoT are based in ROK, hence, penetrating this market will

optimize the business of VIot by cutting the time for ordering and escalating the customer

satisfaction. Therefore, semiconductor is really important for the service, and South Korea is one

of the top leaders in semiconductor manufacturing.

2. Government considerations and incentives

Stability

Even though ROK is a multi-parties country, political stability is appreciated. According

to The Global Economy (2022), ROK possessed a decent level of political stability when ranking

at 59th out of 194 countries.

Specific Sustainability Policies, Incentives and Grants

Greenstart Movement and Green New Deal are those two campaigns that the government

of ROK has pursued for years. The main purpose of those are to mitigate greenhouse gas

emission and focus on the industrial sector, green infrastructure, and renewable energy. The

NDC registry and 2050 Carbon Neutrality Strategy submitted by the ROKG show the effort to

mitigate the effect of climate change, and raise the sustainability responsibility of ROK.

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 3. Distribution

VIoT can utilize the sale and the satisfaction of customers by distributing via two main channels

which are website and applications, and a physical store to maximize the real experience of

customers. As aforementioned, expressing the business through some famous platforms will

bring economic benefits for the company. And the offline refers to a physical store to increase

the customers experience and satisfaction, also a zone to be the servicescape.

4. Discussion on Market Entry Option into Nominated Market as a Possible Platform

for Entry into Other Market

It is projected that the ecommerce market in ROK by the end of 2023 is $85.5 billion, ranking

above France and standing at 6th with the CAGR 2023 - 2027 is 2.9% (Statista, 2023). Hence,

the data reflects the potential scenario for VIoT to do business through ecommerce. Naver

shopping, eBay, Amazon are those selected ecommerce that reach most customers and have a

mass coverage.

Legal Consideration

A. Trade policy

The VKFTA agreement is built on the AKFTA framework in which Korea is committed

to opening the door to investment for Vietnamese IT enterprises to compete fairly. In addition,

the RCEP has also eliminated or reduced tariffs on some electronic components (Huong, 2022).

21
This facilitates the export of electronic components for VIoT's LightUp project to the Korean

market.

B. Governmental policy on foreign investment

ROK is one of the most attractive destinations for foreign investment because of the

government's diversified investment attraction policy (U.S. Department of State, 2022). The

most popular forms of FDI support include tax support, cash grant, and industrial site support

(Partners, 2021). The ROKG also spent $40 million to encourage FDI in carbon neutrality and

$26 million to assist in locating factories (U.S. Department of State, 2022). However, foreign

investors continue to express significant concerns about the regulation's clarity (Santander,

2022). See Appendix H for further information.

C. Registration of company

A foreign enterprise that wants to operate in Korea must comply with an initial

investment of 100 million KRW, which is equivalent to $80.000 USD, to be perceived as a

foreign direct investment and be granted a business license (Ecovis, 2010). Moreover, the

Korean government wants to boost cooperation via FDI according to the implementation and

ratification of the KORUS FTA in 2012 (The International Trade Administration (ITA), n.d).

Following the aforementioned factors, VIoT Group has to operate as according to the steps

indicated in Figure 1 to legally enter the Korean market with the LightUp Project

(InvestKOREA, n.d).

Figure 5

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Steps to register a business in Korea

Adapted from (Partners, P. &., n.d.)

D. Ownership of the entity

VIoT Group should operate as a Limited Company in ROK since it helps the foreign entity to

have full control of their assets and liabilities according to their existing investment. Moreover,

most foreign companies prefer to enter the Korean market as limited companies (Practical Law,

23
n.d), since its credibility facilitates stronger bonds with Korean customers, suppliers, and

counterparts in business. Therefore, it enhances VIoT Group's overall competitive advantage in

the Korean market.

E. Intellectual protection

While the regulation of trademarks in Korea is enacted under the Trademark Act by the

Republic of Korea, the trademark is granted and accounted for its operation by the Korean

Intellectual Property Office (KIPO) (GOV.UK, n.d). Before legally executing in the Korean

market, the Lightning-as-a-Service (LaaS) of VIoT Group requires a trademark, which is valid

for 10 years and takes approximately seven to ten months for the registration process (United

Kingdom Government, n.d.).

Risk Analysis

A. Political Risk

In general, ROK has a low level of medium and short-term risk (Figure 3). However, the

Korean party system is unstable and weakly institutionalized, resulting in a weak connection

between the central government and lower agencies (Wong, 2014; Lee, 2022). Spearhead

conglomerates in Korea (chaebols) and the government has established an extremely intimate

reciprocal relationship (Chiang, 2017). This relationship might make VIoT’s potential

competitors grow stronger and exacerbate the competitiveness gap.

Figure 6

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Overall Country Risk Rating

Adapted from (Huang, 2022)

B. Trade Risk

The trade deficit problem which tends to be more serious between the two countries. In

2022, the trade deficit between Vietnam and ROK reached $37.8 billion due to the difference in

export commodities which indicated limited direct competition (Thanh, 2023). Fortunately, the

governments of Vietnam and Korea promoted many activities to increase trade between the two

countries such as organizing the Korea-Vietnam Partnership Fair with the participation of the

Korea Trade-Investment Promotion Agency (KOTRA) (Vietnam News, 2023).

C. Economic Risk

Economic data indicate that ROK's overall health is due to weak exports (Loe, 2023). In

2022, the corporate debt in the electricity/gas sector skyrocketed to 228.7%, which harmed the

whole credit market (Kang, 2022). The decline in corporate bond creditworthiness may partly

reflect the business's financial health and customers' payability. However, one reason for the

25
large trade deficit in Korea is the increasing value of energy imports accounting for 29.4% of the

total import quota in the first eight months of 2022 (Feiteng, 2022); This increases demand for

energy-saving initiatives, and this could be an opportunity for VIoT to enter the market.

D. Property Expropriate Risk

The risk of expropriation in Korea is moderate (Australian Government, 2023). However,

the Korean Constitution enshrines people's property rights and regulations on expropriation. The

government has a responsibility to fully compensate expropriated property at its objective value

(Choi, 2014). Expropriation of private property in Korea is conducted in a non-discriminatory

manner and is paid at or above fair market value (U.S. Department, 2020).

E. Capital Repatriate Risk

ROKG adopts a floating exchange rate regime corresponding to OECD standards (Ryoo

et al., 2014). The repatriation of profits to the overseas parent company must be in the form of

dividends and subject to a withholding tax rate of 22 percent but may be exempted or reduced

depending on the tariff agreement between Korea and the partner country (Facey, 2016).

Therefore, VIoT needs to carefully study the tariff agreement between ROK and Vietnam to

ensure its rights and avoid violating the regulations.

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 Financial Support

A. Type of Financing for Proposed Project

With the size of existing headcounts, VIoT is considered to be a small business. Moreover, VIoT

is a typical startup, hence, most of the financial flow will be exogenous. It is suggested that VIoT

should partially adapt the external funding and the internal resources. Ideally, VIoT can execute

the funding from financial institutions such as Commercial Bank. Company should raise the file

for around $50,000 initially.

B. Sources of Financing

I. Initial Equity or Capital For Venture and Market Entry

It will initially cost about $80,000 to maintain VIoT operation in the UK for the first half year,

and it will rise to about $150,000 in the first year. Therefore, a sufficient funding source will be

given priority to ensure the project's success.

II. Internal Sources

To serve for the expansion of company’ business in the South Korea market, the financing is

projected to be a $100,000 surplus in the first year.

III. External

As aforementioned, the issue of filing the external financial support is for choosing the

appropriate commercial bank with affordable interest. With interest of 7.5%, BIDV is reasonable

to provide a loan for VIoT to support the project. BIDV can provide a $100,000 loan with 7.5%.

27
 Financial Analysis

A. Financial Analysis Assumption

1. Market Segments Size and Value

With numerous campaigns executed by the Republic of Korea government such as “Green Smart

Building”, “The NDC”, “2050 Carbon Neutrality Strategy”, the South Korea market reflects the

enormous absorb of smart

2. Price

It is suitable for VIoT to categorize service as a project. VIoT should divide the portfolio into 2

segments which are manufacturing industry and public infrastructure, according to appendix I.1.

3. Sale Estimation

In the first year in the South Korea market, it is projected that VIoT will have around 8 projects.

Then rise gradually in the next year. For the last period, there is a significant increase in sales

projects (Appendix I.2).

4. Revenue

The revenue is discussed by the table below.

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 2024 2025 2026

Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4

Sales Revenue 320000 340000 925000 1210000 1490000 2265000

B. Key Financial Indicators

1. Income Statement

According to appendix I.3, VIoT will experience a loss in income for the first three periods as a

result of reduced gross profit (low sales, high COGS), as well as increased sales and marketing

expenses. Because of economies of scale and decreased marketing expenses, VIoT will

eventually make a profit after paying interest and taxes for the last three semi years

2. Cash Flow Statement

As illustrated in I.4, due to the high operating cost from the initial period making a huge

deduction, the cash flow is recorded negatively even though there is a surplus of $50,000 from

external loans from the inception. VIoT should mainly focus on operating, therefore, the

investing activities have no cash flow record and only the initial period records a positive flow of

financing. Furthermore, the fee for legal and registration will be examined in appendix I.5.

3. Break-Even

According to appendix I.6, VIoT will break even in the last semi year of 2025 with 33 projects.

29
4. Summary discussion on Indicators.

Those tables reflect the financial health of the first three years that VIoT penetrates the South

Korea market. As the indicators, VIoT will record the loss in the three semi years to the middle

of 2025 due to the high operating expenses, then the increase of sales projects boosts the

revenue. Since July 2025, VIoT has witnessed positive net income. Moreover, relying on the

statement of cash flow, most of the period the company has observed the deficit in cash, it is

marked the last 3 semi years when the project creates the positive cash flow. Finally, VIoT is

required to have 33 accomplished projects in total and takes one and a half years for VIoT to

break even.

5. ROI

Initially, the ROI for this project is negative. However, with the gradual growth of business

through the years, the VIoT’s ROI stands at 21% for the 3-years period (Appendix I.7).

Management Team

A. Discussion on Local and Expatriate Composition

Culture can improve a company's success by introducing innovative thinking, creativity,

and other positive traits to the company (Morris, 2023). Establishing a representative office in a

foreign market requires a compact, efficient structure and a highly qualified workforce that takes

on multiple roles. Positions that can use foreign workers are those that help the model operate

such as Business development officers and marketing executives. These positions require an in-

depth understanding of aspects of the target market. Positions that are more about business

30
management can use expatriates such as Chief Representative and Manager of the R&D

department (Appendix J.1).

B. Structure including alignment with Head Office

For effective communication and delivery, it's important for VIoT to have a consistent

oversea branch-office structure that connects corporate headquarters (Appendix J.2). Which

organizational structure makes sure that all locations are working towards the same goal and

communication between corporate headquarters and branch offices is Seamless (Kaplan &

Norton, 2005).

Figure 7

31
 CONTROL STRATEGIES

A. Difficulty of IB

1. Distance

With the establishment of VIoT's representative office in the Korean market, geographical

distance is considered the biggest barrier of our company because of the difficulty in business

management. Furthermore, the company has significant challenges conducting business in this

market due to the technology gap. Therefore, to overcome these disadvantages remotely, VIoT

should have a monthly action plan and the ability to improve technology based on existing

Korean technology (Appendix K.1).

2. Diversity

Korea is known as a country with thousands of years of history, the difference in culture and

language will be one of the great challenges of VIoT (Appendix K.2) . On this basis, VIoT

should diversify the office culture. In particular, the organizational chart shows that there is a

mix of Vietnamese and Korean nationalities. However, cultural diversity in the workplace can

create communication problems (Manaf, Yazen, 2021). Korean employees bring unique

perspectives, but colleagues may have difficulty communicating because of the language barrier.

3. Degree of certainty

VIot's certainty control strategy sets a minimum level of certainty for the company to operate in

the country. The pandemic has spurred more countries to adopt digital technology (UNCTAD,

32
2021). Korean companies and businesses are increasingly inclined to use clean energy with a

policy called "Green New Deal" that aims to accelerate the transition to a low-carbon, friendly

economy. environmentally friendly that the country has been preparing for over a decade (Lee,

H., & Chae, S., 2020). Moreover, Korea's highly qualified workforce, along with access to

technology and expertise, will remain a key factor in attracting skilled human resources for VIot

to invest in. into Korea.

B. Centralized versus decentralized Policy

The establishment of the office should be done with a decentralized and empowered plan. Due to

the difference in time zones and cultural contexts, VIot's representative office in Korea to make

better decisions needs Head Office approval and additional research, the office will use a

decentralized structure that will give leaders and employees great power and problem solving

experience to accumulate skills. Ultimately, decentralization will improve communication and

collaboration between managers and employees, leading to increased productivity. Moreover,

using a decentralized structure will greatly help development because the Korean government

still does not have many strict policies to ensure that each business can promote its strengths

(Kim et al., 2022).

33
 Sustainability

A. Government Regulations and Incentives for Sustainability

ROKG established the "National Strategy for Green Growth (2009-2050)" and the "Five-

Year Plan" as two fundamental and detailed legislative frameworks for green growth in the short

and long term (OECD, 2009). In addition, ROKG provides subsidy programs for sustainable

development initiatives (OECD, 2021). However, ROKG prioritizes economic growth, and green

development initiatives are only approved if they contribute to economic development (Stiftung,

2022). Even so, the VIoT initiative can still position the brand and align with the government's

direction. Details are provided in Appendix L.1.

B. Company’s Orientation Toward Green Growth and SDGs Recommendation

ROKG has been strongly encouraging businesses' environmental, social, and governance

(ESG) practices (U.S. Department of State, 2022). Meanwhile, VIoT has not yet completed its

Social-Environmental impact reports and sustainable development policies. Indeed, the company

must build an operational policy framework around SDGs to achieve global sustainability

certifications such as Leadership in Energy and Environmental Design (LEED), Green Seal,

Carbon Neutral Certification, and Fair Trade Certification. This is the basis to capture the

government and investment funds' attention. Therefore, VIoT needs to emphasize the four SDGs

(Goals 8, 9, 11, 12) as the company’s core sustainable development strategy in general and of the

LightUp service in particular (Appendix L.2).

Timetable for Implementation i.e., Market Entry

34
The timetable for penetrating the South Korea market is divided into 2 phases which are before

and after launching. Appendix M.1 shows the detailed plan before the official execution in South

Korea. Then appendix M.2 reflects the second phase which is after the official launch.

Conclusion

The report's overall goal is to assess if VIoT can successfully join the ROK market. When VIoT

enters the UK market, the research analyzes the potential and threats there. VIoT should export

LaaS to the ROK market with the company’s vision at an accessible price. Moreover, VIoT is

advised to use greenfield FDI to establish a business in ROK. Even if there is a political, trade,

property, and financial risk alert, it is still possible and safe for VIoT to enter the UK market,

according to the risk assessment. Finally, the research suggests that VIoT concentrates on Goals

8, 9, 11, and 12 of the UN SDGs in its sustainability plan.

35
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https://data.worldbank.org/indicator/NV.SRV.TOTL.ZS?locations=KR

Worldometer. (2023). South Korea Population (2019) - Worldometers. Worldometers.

https://www.worldometers.info/world-population/south-korea-population/

48
Worldometers. (2023, July 3). South Korea Population (2023) - Worldometer.

https://www.worldometers.info/world-population/south-korea-population/

WTO. (n.d.). Chapter 11 Trade and Investment Opportunities Between Korea and

RCEPCountries. Trung Tam WTO. https://trungtamwto.vn/download/21469/rcep

%E7%94%B5%E5%AD%90%E6%8C%87%E5%8D%97chapter-11-.pdf

Yun, S. (2010). Not So Green : A Critique of South Korea ’ s Growth Strategy.

https://www.semanticscholar.org/paper/Not-So-Green-%3A-A-Critique-of-South-Korea-

%E2%80%99-s-Growth-Yun/6fecd5e3563e3d853088fa1f7bb7ed93e1bed915

49
 Appendices

Appendix A

South Korea Corporate Tax Rate by Company’s Income (Ernst & Young, 2022)

50
 Appendix B

ROK’s Inflation Rate as of April 2023 (OECD, 2023)

51
 Appendix C

Grease The Wheels Hypothesis: Korea is Gaining Economic Advancement Although High-

corruption Levels (Trabelsi, 2023)

Corruption and bribery have become the norm in the political-economic relationship in

Korea that develops as a symbiotic relationship. The Park Geun-Hye administration offers

capitalists low-cost credit and privileged access to local markets in exchange for "kickbacks"

from corporations, or a percentage of their profits (Rock, 2017). As a result, this has led to the

formation of large family-owned corporations (chaebols), which exerted a powerful influence

over the national economy and politics. Even so, these corporations have taken advantage of

special incentives for research, investment, and development that bring tremendous economic

benefits to South Korea.

52
 Appendix D

VIoT’s Characteristics and Previous Experience to Become A Born Global Start-up

1) Founders’ Global Mindset

Founders' global mindset is the center of a venture's international growth and

opportunities (Englis & Wakkee, 2015). VIoT's management team and personnel have many

years of experience in working and running businesses operating in the ICT field.

Figure 1

53
Experienced Founders in The ICT Industry with Global Mindset

2)

Early In-depth and Comprehensive Market Research

Before establishing the project, the company took time to research and understand the

market comprehensively to understand the dilemma of the market, the competitive situation, and

the urgency of the demand. VIoT started to explore the home market (Vietnam) first because the

54
proximity and temporary solutions of the government open up opportunities for businesses to

demonstrate their capabilities. This demonstrates the ability to seize opportunities and adhere to

the Uppsala model of the business side in general and the executives in particular.

Figure 2

In-class Client’s Sharing Slide About In-depth Research of the Vietnam Market

After researching the domestic market, the company demonstrated its capabilities through B2B

and B2G cooperation projects. This is the most effective way to help businesses attract the

sympathy of the government and investment funds for sustainable development and strengthen

their position in the domestic market simultaneously.

Figure 3

55
VIoT’s Projects in Vietnam

Note. VIoT Deployed Smart Lighting and The CLP Platform at Trung Nam IT Park (VIoT,

2022)

Note. The First Smart Street Light System Successfully Connected to The NB-IoT Network in

Vietnam (VIoT, 2021b)

3) Technology and Experiences in Previous Tech Contests/Expos/Conferences

56
 With the advanced IoT 4.0 products and solutions that bring benefits to sustainable

economic development, VIoT Group has participated in many technology competitions and

attended seminars, conferences, and trade shows.

Figure 4

VIoT’s Experience and Participation in Global Contests/Expos/Conferences

Adapted from (VIoT, 2021a)

4) Network and Partnerships:

The network of partners of a born global startup is very diverse and global in nature

because the startup's products and services are widely accepted from all customers.

Figure 5

In-class Client’s Sharing Slide About VIoT’s Partners & Customers

57
 Appendix E

Target Customer Analysis

Working in the B2B and B2B2G field, VIoT should base on some metrics for segmentation to

determine who is ideal. Firmographics, customer-needs based, and behavior reflect perfectly the

tendency of LaaS. Moreover, segmenting into portfolio naming manufacturing industry and

public infrastructure is rational.

Appendix E.1: Initial Market Segmentation for B2B

Initial Target Segment (B2B)

Firmographic Industry:

● VIoT aims to penetrate industries consume much electricity

such as manufacturing, construction, agriculture

Business size:

● Medium to large business size ranging from 50 to more than

58
 250

Company location:

● Inner Seoul Metropolitan Area

Customer-needs based Economic need:

● Cut cost by mitigate the use of electricity

● Pay for the real consumption

● Reduce the initial cost

Environmental need:

● Decrease the greenhouse emission

Behavior Level of engagement:

● High level of engagement with brand

● Purchasing cycle & buying decision ( How long is a business

willing to sign in a contract and the scale of contract)

Appendix E.2: Initial Market Segmentation for B2B2G

Initial Market Segment ( B2B2G)

Manufacturing Zone Industrial zone:

● 44 industrial complexities and 2 smart

industrial zones

59
 ● Focusing on the Greater Seoul

Metropolitan Area and along the southeast

coastal region because they are home to

the majority of the country's industrial

complexes (National Atlas, 2014).

Public Infrastructure ● Seoul promotes the “Smart Pole” with the

adaptation of integration between lighting

and ICT

● Public infrastructure is degrading due to

its 40-year longevity.

● High density of using lighting requires

significant energy.

Appendix E.3: Expression of VIoT’s service

Process: The management of the consumer purchasing process is necessary on the brand's online

retailing platform. VIoT may add a special touch to the purchasing experience by researching

client preferences and suggesting products that would satisfy them. VIoT may stand out in the

market due to its distinctive marketing proposition.

Physical Evidence: Customers can judge VIoT’s service based on its online presence, which can

be found on the company's website. Layout, design, color, and a catchy tagline may all have a

big impact on customers’ experience and their buying decision. Therefore, it is crucial that the

60
brand utilizes appealing colors that fit the company’s core values such as yellow, and green with

a straightforward structure to create an alluring appearance.

People: People element is the core element in the service industry due to their frequency of

interacting with customers. VIoT may offer its staff a professional and motivated training

program to comprehensively acknowledge the company's service and product and its inspiration.

Moreover, staff’s attitude should be presented as professional, confident, and caring.

Appendix F

Detailed Competitors Analysis

Name Strengths Weaknesses

Domestic Rang Dong ● Apply ISO 9001:2015 ● Lack of financial

Competitors Quality Management transparency

System, LEAN 6 Sigma, 5S, ● Previous failure in

TPM management tools. partnering with

● Collaborating with domestic certain foreign

and foreign experts to train partners.

teams in Science and

Technology and

Management Science.

● Strong partnership with

domestic and foreign

61
 businesses: Rang Dong

Corporation has officially

signed a strategic

partnership with Seoul

Semiconductor Vietnam

(SSC) and Vietnam Export

Import and Construction

Corporation (Vinaconex) to

develop the LED 4.0

ecosystem

Vilight ● Large-scale domestic ● No experience with

projects: Roundabout 6 Nha foreign partners in

Trang City, PVGAS Fine local projects

Art Lighting (ViLight, n.d) ● No experience in

● Cutting-edge & diverse international markets

control systems: Zigbee

2.4GHz wireless

transmission, Nema

standard controllers,

connecting wirelessly via

RF, Lora...

62
 Merlot ● Diversified in product lines: ● Lack of branding &

Laboratories M1000 and M3500 chips reputation

for bulbs and high-power

resources

● Head office &

manufacturing factory are

based in Seoul, South Korea

● Strong investment funding:

International
6111.7 million Won
competitors
(~480.000 USD)

Seoul ● Diversified product ● High turnover of

Semiconductors categories (WICOP, employees

SunLike, Acrich, ...) ● Low investments into

● Revenue: 1.3 trillion KRW customer-oriented

(~1 billion USD) services

● Strong global presence ● High cost of replacing

existing expert

63
 Appendix G

Product/Service Strategy

Issues Strategies

Brand Indulgence - Participating in electronic and technology industry

exhibitions, and trade conferences to expose the

uniqueness of the service.

- Hosting some technical conferences with prestigious and

famous experts to increase the service of the company.

- Providing comprehensive and motivated training

programs and engaging programs for talent acquisition.

UI/UX - VIoT should develop an application for users to track the

performance and how much electricity is consumed.

- The application should be updated and user-friendly to

facilitate the use of customers.

- The website will include the feedback’s functional click

for the interaction between the customer and the company.

And it should be well-designed rather than the existing

one.

64
 Appendix H

Legal Consideration for LightUp Project

1. Trade Policies

The VKFTA free trade agreement, which took effect on December 20, 2015, plays an

important role not only for tax-exempt items but also acts as a policy to ensure a healthy

competitive environment and fair for foreign investors. The VKFTA agreement builds on the

AKFTA agreement but has a higher level of liberalization tariff commitments. In terms of goods

trading, Korea has strengthened its trading relationship with partners from the Asia-Pacific

Economic Cooperation (APEC) and ASEAN, which contribute the bulk of the total import-

export turnover rate in Korea at 77.5% and 17.4%, respectively.

2. Government Policies for Foreign Investment

Except for sensitive industries that are protected by the government, ROKG has

facilitated many initiatives to help attract FDI and created the most favorable conditions for

technology startups to penetrate the market and grow steadily.

Important policies ● The Foreign Investment Promotion Act (FIPA) simplifies the

support FDI FDI registration procedure, it also clearly stipulates the legal

protections for investors including the risk of expropriation

(UNCTAD, 2017).

● The government established the “Startup Campus”, the largest

startup complex in Pangyo City, in the south of Seoul to

support business registration, market penetration, and

expansion (UNCTAD, 2016).

● Employing local workers is not compulsory by the government

65
 for businesses, however, enterprises must confirm that foreign

employees need a valid work permit (U.S Department of State,

2022).

Forms of Investment Aid ● Tax support: reduce corporate income tax, acquisition and real

(Santander, 2022) estate taxes, exception from custom duties

● Cash grant: land acquisition cost, lease cost, and job,

education, and training assistance.

● Industrial site support: factory-locating support, sale price

variation for subsidies, and reduced-subsidized rental.

66
 Appendix I

Financial Analysis

Appendix I.1: Price

Type of project Price COGS

Manufacturing Industry 75000 68000

Public Infrastructure 95000 85000

Appendix I.2: Sale Estimation

2024 2025 2026

Segment Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4

Manufacturing Industry 3 2 6 6 11 15

Public Infrastructure 1 2 5 8 7 12

Total 4 4 11 14 18 27

Appendix I.3: Income Statement

Income Statement

2024 2025 2026

Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4

67
Sales Revenue 320000 340000 925000 1210000 1490000 2265000

COGS 289000 306000 833000 1088000 1343000 2040000

Gross Margin 31000 34000 92000 122000 147000 225000

Operating Expenses

Salaries + Bonus and

Commissions 50000 50000 62500 62500 70000 70000

Rent 5000 5000 4500 4500 4000 4000

Phone 500 500 500 500 500 500

Utilities 4000 4000 6000 6000 9000 9000

Shipment 1500 1500 2000 2000 3600 3600

Marketing Activities 15000 15000 20000 20000 30000 30000

Total operating expenses 76000 76000 95500 95500 117100 117100

EBIT -45000 -42000 -3500 26500 29900 107900

Interest 1500 1500 1500 1500 1500 1500

EBT -46500 -43500 -5000 25000 28400 106400

Corporate Tax VN (20%) 0 0 0 5000 5680 21280

Corporate Tax South

Korea (22%) 0 0 0 5500 6248 23408

Appendix I.4: Cash Flow Statement

68
 Statement of Cashflow

Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4

Operating Activities

Sales Revenue 320000 340000 925000 1210000 1490000 2265000

COGS 289000 306000 833000 1088000 1343000 2040000

AR - - - - - -

AP - - - - - -

Salaries + Bonus and

Commissions 50000 50000 62500 62500 70000 70000

Rent 5000 5000 4500 4500 4000 4000

Phone 500 500 500 500 500 500

Utilities 4000 4000 6000 6000 9000 9000

Shipment 1500 1500 2000 2000 3600 3600

Marketing Activities 15000 15000 20000 20000 30000 30000

Legal Fee 13556 - 8000 - 8000 -

Interest Expense (Payable) 1500 1500 1500 1500 1500 1500

Net cash provide by

operating activities -60056 -43500 -13000 25000 20400 106400

Investing Activities

Net cash provide by

investing activities 0 0 0 0 0 0

69
Financing Activities

Net cash provide by

financing activities 50000 0 0 0 0 0

Net change in cash -10056 -43500 -13000 25000 20400 106400

Cash at the beginning 0 -10056 -53556 -66556 -41556 -21156

Cash at the end -10056 -53556 -66556 -41556 -21156 85244

Appendix I.5: Legal & Registration Fee

Legal & Registration fee

Tax resident (without travel) US$1,000

Office legal registered legal fee (Annual) US$ 3,650

Application for Trademark US$ 56

Incorporation fees US$3,500

Accounting, audit & tax filing fees (Annual) US$4,350

Establishment of rights registration US$1,000

Total US$ 13,556

Appendix I.6: Break-even Statement

70
 2024 2025 2026

Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4

Unit Sale 4 4 11 14 18 27

Revenues 320000 340000 925000 1210000 1490000 2265000

Expenses

COGS 289000 306000 833000 1088000 1343000 2040000

Operatin

Expense 76000 76000 95500 95500 117100 117100

Taxes 0 0 0 10500 11928 44688

Interest

Expense 1500 1500 1500 1500 1500 1500

Profit/Loss -46500 -43500 -5000 14500 16472 61712

Overall Units

Required To Break-

Even 33

Duration When

Break-Even Is

Happened Q3-Q4 2025

71
 Appendix I.7: ROI

2024 2025 2026 Total

EBIT -87000 23000 137800 73800

Investment 150000 95000 106000 351000

ROI -0,58 0,2102564103

Appendix J

Management and Structure

Appendix J.1: Discussion on Local and Expatriate Composition

With the criterion of being a representative office in ROK, VIot needs to recruit positions that

can use foreign workers, which are positions that help the model operate such as Business

Development Officer, Marketing Director.

Moreover, using local human resources enables the company to better understand the economic

situation in Korea (Jung, 2022). Meanwhile, non-professional foreign workers face many human

rights violations which may occur because they are managed under employer-friendly policies

(Carr, 2017).

Appendix J.2: Structure including alignment with Head Office

Alignment is the process of applying tactics and ideas to make sure that every employee,

from starters to top managers to success, shares a common vision for the organization in 2018.

Therefore, VIot also has important management positions with the task of maintaining and

developing close relationships between branches and the parent company. The common goal is

72
to be able to bring our high quality products to domestic and foreign markets clients. Thus, the

branch manager is the person in charge of all aspects of that branch office, including hiring

staffing, overseeing loan and line of credit (LOC) approvals, marketing, nurturing neighborhood

relationships to attract customers, assisting with customer service, and helping the branch meet

its goals and objectives on schedule. This is one of the essential positions to be able to link the

organization.

73
 Appendix K

Control Strategies

Appendix K.1 Distance

Given the weakening cultural gap disadvantage, evidence indicates that the globalization of

markets and the increasing cross-border mergers and acquisitions (M&A) deals could see issues

that are often seen as detrimental being significantly addressed. Companies entering countries

with cultural and psychological differences may find it difficult to develop exploits of the

knowledge and business practices on which they previously relied. In doing so, it can be inferred

that organizations facing completely new problems and different cultural backgrounds have

many learning opportunities. (Park, H. Han, K. & Yoon, W. ,2018)

Appendix K.2 Diversity

South Korea is a largely homogenous country and this has historically posed many challenges for

multiracial Koreans. Due to FDI into Korea over several decades, learning is indirectly related to

system and language differences as well as unique Korean characteristics. Cultural gaps can

create knowledge and thus affect organizational learning. It can be argued that the activities and

innovations required to adapt to different cultures will stimulate organizational learning, and

ultimately positively affect a company's performance. (Park, H. Han, K. & Yoon, W. ,2018)

Appendix L

Sustainability

Appendix L.1: Government Regulations and Incentives for Sustainability

74
 Starting in 2009, ROK was among the trailblazing countries to embrace a green economic

model as the national strategy (World Bank, 2013). Some sustainable development policies and

government subsidies for green initiatives:

● Global Green Growth Institute: hosting the Green Climate Fund and providing resources

(money and expertise).

● Korea's 2020 Green New Deal: a subsidy fund worth USD 188bn for green infrastructure,

low-carbon, and decentralized energy (OECD, 2021).

● Five-Year Plan: ROKG will deduct 2% of its annual GDP to invest in green growth

projects, especially toward national infrastructure systems (Bank, 2014).

● The Ministry of Environment expands loans for funding (up to 370 billion won by 2023)

and, at the same time, financing and development consulting for startups (from 1 to 250

million won each from 2023) (Ministry of Environment, 2023).

UNEP (2018) defined a green economy as low-carbon, resource-efficient, and socially inclusive.

Meanwhile, ROKG believes cutting CO2 emissions and environmental pollutants constitutes

"green" growth, they use the word "green" to cover their pursuit of economic development; such

as switching to nuclear energy because it produces relatively low CO2 despite the unresolved

problem of nuclear waste disposal (Yun, 2010). Thus, this has led to a lack of consistency in

green growth policies (Figure 1) leading to major unresolved environmental issues (Figure 2),

and the Korean government received much criticism from the people. Therefore, VIoT's smart

lighting management software solution that helps save electricity consumption might be the

optimal solution to the Korean government's dilemma, especially in the context of continuously

increasing energy import prices.

Figure 1

75
The Effectiveness of the Korean Government's Environmental Policies

Adapted from (Stiftung, 2022)

Figure 2

Overview of South Korea’s SDGs Performance

Adapted from (Sustainable Development Report, 2023)

Appendix L.2: Detailed SDGs Recommendation Strategy

76
 a) Goal 8:

The human factor is always the focus of development and directly affects the productivity and

image of the business. VIoT must ensure that human resources are the focus that needs to be

monitored and nurtured in its value chain. Activities to help achieve this include:

● Have a full compensation plan and have policies to support and train employees.

● Ensure the construction partner fully develops and complies with the labor safety policies

for employees, and appropriate payment regulations through binding contracts.

● Having the policy to recognize the employee's contribution process to increase the

corresponding remuneration, and motivate employees to actively contribute.

b) Goals 9, 11, and 12:

The achievement and level of implementation of the Sustainable Development Goals

need to be shown in the form of data and images because that is the most explicit demonstration

of how effective the solution is. Credible information and evident metrics are critical for each

company to set objectives, make decisions, and monitor performance (Lafortune et al., 2020).

Therefore, the three strategies suggested to help businesses achieve SDGs 9, 11, and 12 all

involve improving the user's interaction with elements on the company's website:

● Adding several elements to the website, such as a tab indicating accumulated certificates,

another tab exhibiting pictures of its Corporate Social Responsibility (CSR) activities to

fulfill Sustainable Development Goal 9, which revolve around sustainable initiatives

related to “Industry, Innovation and Infrastructure” of VIoT.

● Providing real-time updates on statistics of the VIoT lights temperatures in different

regions as well as weather updates or forecasts to indicate the efficiency of the VIoT

Group wireless lighting control system.

77
 ● Cooperating with local municipalities to ensure legitimate and sustainable measures,

safety practices, and eco-friendly initiatives in terms of lightning and energy usage.

● Providing an interactive tool to educate customers about energy consumption

responsibility. This measure helps offer users with energy utilization insights and ways to

deduct energy waste and eco-friendly lighting usage options to keep users informed about

the alignment with sustainable energy consumption.

Appendix M

Timetable for Implementation

Appendix M.1: Detailed Plan for before launching

No. Goal KPI Person in Position Time

Charge

1. Appoint the project Appoint the Project Manager to Mr. Viet CEO & 01/01/2024 -

manager monitor the whole project Nguyen Founder 14/01/2024

Create pitching for consultant

teams

2. Assemble the Finalize the successful Mr. Viet CEO & 16/01/2024

project team consultant team Nguyen Founder

3. Build a master Thoroughly identify further Consultant Consultant 19/01/2024 -

plan information including risks, team team 25/01/2024

opportunities, trends, current Branch Branch

situation then summarize and

78
 develop the plan to be detailed manager manager

Collaborate with branch

manager to develop the plan

4. Legal process Collect and complete the Ms. Quynh CFO 20/01/2024 -

required legal document for Tran BD Manager 27/01/2024

both Vietnamese and Korean Mr

governments Mr. Trung

Nguyen

5. Open a physical Coordinate with local agencies Mr. Trung BD Manager 25/01/2024 -

office to research for location, do Nguyen CEO & 30/01/2024

legal and contractual Mr. Viet Founder

document Nguyen

Design the interior space

6. Recruiting and Hunting the appropriate MR. Viet CEO & 25/01/2024 -

training personnel (Vietnamese for Nguyen Founder 05/02/2024

branch manager - Korean for

official staffs )

Providing them with training

program

7. Build up a Product strategy: Mr. Trung BD Manager 05/02/2024 -

strategic plan - Customize the Nguyen CIO 22/02/2024

appropriate product Mr. Vinh Bui CTO

lines for every Mr. Mitchell AIoT R&D

79
 segment. Tiongson Director

- Prepare a detailed Mr. Hoang CEO &

short-term and long- Mr. Viet Founder

term plan Nguyen

Promotion strategy:

- Finalize the digital

marketing channel

- Set up a complete

metrics, budget, KPI

Business strategy:

- Prepare a detailed plan

for business strategy in

short-term and long-

term

- Detailed plan for Sales,

KPI

Review and modify plans

between departments

8. Marketing Prepare the materials for doing Branch Branch 15/02/2024 -

channels advertising and promotion Manager Manager 25/02/2024

campaigns

Build VIoT’s social media

through suitable channels to

launch promotion activities

80
9. Preliminary launch Hold an events for preliminary Branch Branch 29/02/2024 -

launch with initial customers Manager Manager 07/03/2024

and stakeholders Ms. Mayar PR Manager

Collect the feedback Nguyen

10. Finalize the Analytically review, adjust, and Mr. Trung BD Manager 08/03/2024 -

business model finalize the service features Nguyen 13/03/2024

11. Grand opening Officially introduce the South Branch Branch 15/03/2024

Korea branch of VIoT to the Manager Manager

market

Appendix M.2: Detailed Plan for after official launch

No. Goal KPI Person in Position Time

Charge

1. Customer service Customer service goes into Marketing Marketing 18/03/2024

operation with customer center Manager Manager

in which customers detect to

be advised, support

2. Social media Officially launch the promotion Marketing Marketing 18/03/2024 -

advertising campaigns’ materials through Manager Manager 01/04/2024

suitable social media platforms.

3. R&D Continue develop the R&D Mr. Hoang AIoT R&D 01/04/2024 -

81
 activities for South Korea Director 30/04/2024

market

Appendix N

PEER EVALUATION

Team: Group 1

Course: International Business Project

Lecturer: Dr. Pham Thi Bich Ngoc

Date: 13/08/2023

No. Member Tasks Teamwork Signature

contribution

1 Võ Trần Duy Tân Marketing Analysis, 100%

Financial Analysis,

Entry Selection for

Nominated Market,

Timetable for

Implementation

2 Vũ Nguyễn Đức Executive Summary, 100%

Khôi Updated Summarised

Market profile

/Requirements, Updated

Previous Market Entry

82
 Experience, Risk

Analysis

3 Đặng Uyên Nhi Marketing Analysis, 100%

Legal Considerations,

Competitor Analysis,

Sustainability

4 Trương Nguyễn Management Team and 60%

Long Structure, Control

Strategies

5 Văn Quốc Minh 0%

83