A Study On Factors Affecting Business Activities at Glovimex Company Limited

MINISTRY OF FINANCE
ACADEMY OF FINANCE
--------------------
Student: ĐỖ THỊ NGỌC

Group: CQ55/51.05
GRADUATION THESIS
TOPIC:
“A STUDY ON FACTORS AFFECTING BUSINESS ACTIVITIES AT
GLOVIMEX COMPANY LIMITED”
Major : Faculty of foreign language

Student code : 17522202010154
Supervisor : M.A Bui Thi Tuyet Mai
Hanoi – 2021
Academy of Finance Graduation Thesis
DECLARATION
I, Do Thi Ngoc, hereby declare that this thesis and the study presented in it are
my own and have been generated by me as a result of my own original research, no
copying on any prior work.
Thesis: “The study on factors affecting business activities in Glovimex
company limited”
Hanoi, May 2021

Student
Đỗ Thị Ngọc
Đỗ Thị Ngọc CQ55/51.05 2

ABSTRACT
The study researched the factors affecting business activities in Glovimex

Company Limited. The paper aims at finding out the achievements and drawbacks
in Glovimex Company limited business activities, and more importantly, suggesting
main methods to improve the business’s value and efficiency in general and Rattan
and bamboo products in particular. In order to achieve these aims, the graduation
paper surveys the current performance of export activities in the company and point
out whether it is effective or not. From received results, the study argues the most
practical implications in Glovimex Company Limited to improve the efficiency of
export activities at the company in the future years.

ACKNOWLEDGMENTS
I would like to express my deep gratitude to all those who have given me the
possibility to complete this graduation thesis. In preparing this graduation thesis, I
have had generous help and advice from my teachers, my colleagues, my family and
my friends. I would like to express my great thanks to all of them.
To begin with, I would like to express my deepest gratitude to my supervisor,
M.A. Bui Thi Tuyet Mai, lecturer of Academy of Finance, for her guidance and
instructions. It is whole-heartedly appreciated that your great advice for my study
proved monumental towards the success of the study.
Besides, I wish to show my sincere thanks to all my teachers at Academy of
Finance, who have provided me with worthy lessons throughout 4 years of study.
Moreover, I am indebted to the staffs of Glovimex Company Limited for their
valuable supports during the internship. I am extremely thankful and indebted to
them for sharing expertise, and sincere and valuable guidance and encouragement
extended to me.
Furthermore, I would like to send my loving thanks to my family whose great
love and care in both spirit and health to encourage me to complete the thesis.
Last but not least, I also place on record, my sense of gratitude to one and all,
who directly or indirectly, have lent their hand in this thesis.

LIST OF ABBRIVIATION
1. GDP: Gross Domestic Product

2. NTFPs: Non-Timber Forest Products
3. SBV: State Bank of Viet Nam
4. VND: Vietnam dong
5. USD: United States Dollar

LIST OF FIGURES AND TABLES
List Pag
e
Figure 2.1: Organization of management of Glovimex company 27

TABLE OF CONTENTS

INTRODUCTION
1. Rationale of the study

Economic development is always the top target of all countries in the
world. Especially, in the current process of economic integration, stable
development is a crucial goal for each country in order to improve its
competitiveness in the international market. It can be seen that enterprises are not
only business entities, but also decisive factors for the development of the country.
Production and business activities of enterprises are the factor driving the national
economic growth. And one of the most effective forms of business is the import-
export activity. Import-export business is an indispensable activity in the
development process, which is an inevitable result of the trade liberalization.
Therefore, any country that wants to be powerful must join this field. In Vietnam, in
recent years, there are many small and medium enterprises participating in this
field. As a business operating in import-export business, GLOVIMEX company
limited has achieved certain successes in the economic market. With the goal of
becoming a big domestic enterprise, the Company has been doing its best to be able
to improve efficiency for the business. But in reality, during my training time and
experiences I got from the internship, I find that there are still certain difficulties
and the less optimal business efficiency. Therefore, I have chosen the topic "a study
on factors affecting business activities in Glovimex company limited". With the
hope that the factors mentioned in the thesis will help partly find the shortcomings,
then offer timely solutions and improve the efficiency of business activities.
2. Aim of the study

The aim of this study is to understand the current factors affecting business
activities in Glovimex company limited and therefore, to suggest strategies and
solutions to improve and strengthen the efficiency of Exporting activities in
Glovimex company.

3. Research question of the study

The following question guide the study:
1. What factors affecting business activities in Glovimex Company Limited?
2. What strategies are being used by the company that have effective and
viable exporting activities?
3. How to improve the efficiency of exporting activities in Glovimex
Company Limited?
4. Methods of the study

Based on knowledge at university, books and self-accumulation and to these
above objectives, several methods of studying the thesis are used as follow:
- Figure collection: from websites of Glovimex company limited, books, internet and
internal information of the corporation.
- Inductive, deductive and statistical method
- Figure comparison, data evaluation, judgment and conclusion.
- Method of analyzing, summarizing, synthesizing materials and books from the
theoretical background.
5. Scope of the study

The study is performed at Glovimex Company Limited, No. 47 Nguyen
Hong Street, Dong Da District, Hanoi city, Vietnam. The study is based on data
provided by the company from 2017 to 2020. The object of the study is business
activities at Glovimex Company Limited.
6. Organization of the study

Besides the Introduction, Conclusion and References, the thesis includes 3
chapters:
Chapter1: Theoretical background of import – export activities; General
overview of bamboo rattan handicraft products export

Chapter 2: Factors affecting to business activities in the company: The

main part of the thesis which gives the general overview of business activities and
the factors affecting business activities in this corporation.
Chapter 3: Some solutions to improve efficiency of business activities in
Gloximex company limited: This chapter gives the orientations for the future
development of Glovimex Company and provides some practical recommendations
and solutions to improve the efficiency of export activities of this company.

CHAPTER 1: THEORETICAL BACKGROUND OF EXPORT

ACTIVITIES; GENERAL OVERVIEW OF BAMBOO RATTAN
HANDICRAFT PRODUCTS EXPORT
1.1. Overview of export activity

1.1.1. Definition of export activity
Export means the sale of goods or the provision of services to a foreign
country on the basis of using currency as a means of payment.
Export is the activity of selling goods to foreign countries which is not
only an act of individual sale but also an organized sales system both inside and
outside in order to make profit, promoting developing, transforming economic
structure, stabilizing and gradually improving people's living standards. Export is an
easy business activity to have dramatic results. Expanding exports is to increase
foreign currency revenues, facilitate imports and promote export-oriented economic
sectors, and encourage economic sectors to expand their exports with the aim to
create jobs and increase foreign currency revenue.
The basis of export activities is the sale and exchange of goods, including
both tangible and intangible domestic goods. As production develops and the
exchange of goods between developed countries, the international division of labor
resulting from this activity will help extend beyond national borders, the domestic
market with export processing zones in the country. Export activities are
indispensable activities of countries in the development process. The difference in
natural conditions, geographical location, human resources, and resources leads to
differences in advantages in different fields of countries. to maximize advantages
and overcome limitations, take advantage of opportunities and limit challenges to
create equity for factors in the production and consumption process. countries must
exchange goods and services for each other. However, exports do not only take
place between countries that have advantages in one sector or another, but even
when countries do not have advantages in natural conditions, resources, and natural

resources. These countries can still reap the significant benefits when participating
in export activities
1.1.2. The role of export activity

The export of goods is the activity in the distribution and circulation by an
extensive process of re-production with the aim of linking production with
consumption by one country with another. That activity takes place not only
between individuals, but also involves the participation of the entire economic
system with the regulation of the state. Goods export is the global trading activity.
Commodity exports play a great role in the socio-economic development of each
country. How a country's social production develops depends greatly on export
activities. Thanks to exporting, it is possible to increase foreign currency revenues,
improve the balance of payments, increase budget revenues, stimulate technological
innovation, transform economic structure, create jobs and improve living standards
of citizen. For countries with low economic level like our country, the potential
factors are natural resources and labor, and the shortage factors such as capital,
market and management capacity. The export-oriented strategy which is essentially
the economy's open solution to take advantage of foreign capital and technology,
and combine them with the domestic potential of labor and natural resources to
create strong growth for the economy, contributing to shortening the gap with rich
countries. In particular, export plays a role in the following subjects:
 Global economy:
As we all know, merchandise exports appear very early. it is a cross-country
(international) trade. It is not an unilateral trading act but a whole system of trading
relationships in the global trade organization. And the goal is to consume goods in
particular for the whole country in general
Exporting is a key element of foreign trade and the first activity of
international trade. Export plays a particularly important role in the economic
development of each country as well as in the world.

Commodity exports are in the circulation of goods. It is one of the stages of

the production expansion. This is the link between production and consumption
from one country to another. It can be said that the development of exports will be
one of the main factors to boost production.
 each country's economy
Export is one of the factors creating momentum, promoting growth and
development of each country According to most theories of economic growth and
development, it has been confirmed and clearly stated that in order for economic
growth and development, each country needs four conditions: human resources,
natural resources, capital, technology and technology. . As most developing
countries (like Vietnam) who lack of capital and technology needed to engage in
import-export activities.
a. Export creates capital for import, serving the industrialization and modernization
of the country
For all developing countries, the most appropriate step is to industrialize and
modernize the country to overcome poverty, backwardness and underdevelopment.
However, the industrialization process requires a large amount of capital to import
advanced technology and equipment. In fact, to have imported capital, countries can
use the main mobilized capital as follows:
+ Foreign investment, borrowing from aid sources
+ Revenue from service tourism activities, domestic foreign currency
collection
+ Revenue from export activities
The importance of foreign investment is undeniable, but mobilizing them is
not easy. Borrowers have to suffer some unfavorable conditions and will have to
pay later if they use these funds. Therefore, exporting is the most important source
of capital activity. Export sets the stage for imports, which determines the size of
the growth rate of import activities. In some countries, one of the main causes of
underdevelopment is a lack of capital potential.

b. Export promotes economic restructuring, promotes production development

Under the impact of exports, the structure of production and consumption of
the world has been changing dramatically. Exports have shifted the economic
structure of countries from agriculture to industry and services.
There are two views on the impact of exports on production and economic
restructuring.
Firstly, only export products that are left over for domestic consumption. In
the case the economy is backward and underdeveloped, production is basically not
enough for consumption, if only passively waiting for the excess of production, the
export will be limited to a small scale. Therefore, manufacturing industries have no
opportunities to develop.
Second, based on the development of the world market to organize production
and export. This viewpoint has a positive impact on economic restructuring to
promote exports. It is shown on:
+ Export creates a premise for industries with the same development
opportunities. This can be easily seen through for example, when developing the
textile and garment industry for export, other industries such as cotton, spinning,
dyeing, ... will have conditions for development.
+ Export facilitates the expansion of a country's ability to provide inputs for
production and consumer markets. It allows a country to consume all the goods in
quantities that are greater than the limit of its production capacity, even those that it
cannot produce.
+ Export contributes to promote specialization and increase production
efficiency of each country. It allows for production specialization to develop in both
width and depth. In today's global modern economy, each product is researched and
tested in the first country, manufactured in the second country, assembled in a third
country, consumed in the fourth country and payments in the fifth country. Thus,
goods produced in each country and consumed in one country show the opposite
effect of specialization on exports.

Using currency as a means of payment is an important feature that contributes

to a country's foreign currency reserves. Especially for developing countries that
cannot convert currencies, the foreign currency gained through exports plays an
important role in regulating the supply of foreign currencies, stabilizing production,
thereby contributing to the increase. economic growth and development
c. Export has a positive impact on solving jobs, and improving people's lives.
For jobs, exports attract millions of workers through the production of goods
for export. On the other hand, export creates foreign currency to import consumer
goods, meeting the increasingly diversified and plentiful requirements of the people.
d. Export is the basis to expand and promote the development of external
economic relations
Both exports, external economic relations, and diplomacy have reciprocal
interactions and are interdependent each other. Export activities are a solid premise
to build external economic relations in the future, thereby dragging each other to
develop such as international tourism, international insurance, international credit ...
On the contrary, the development of these industries has a negative impact on
exports as the basis for export growth.
It can be said that exports in particular and international trade in general will
lead to changes in international trade, which will lead to changes in the
consumption of goods in the economy by two ways:
+ allows the volume of consumer goods to match the number of goods
produced
+ leads to a beneficial change in accordance with production characteristics
However, depending on the specific conditions of each country, the impact of
export to different countries is different.
1.1.3. Main types of export
1.1.3.1. Direct export
Direct export is a situation in which a company sells its products directly to
customers in another country without using another person or organization to make
arrangements for them, or a product that is sold in this way.

Accordingly, the buyer and the seller will directly sign a foreign trade contract
with each other. Provided that this contract must comply with the laws of each
country, and the standards of the international sale and purchase chart at the same
time. The seller can be the unit directly producing the goods or a trading company
that collects the domestic goods and then signs a foreign trade contract with the
foreign country. Direct export can be applied to all types of businesses, products and
services. The advantage of this method is that businesses will be more active in
exchange and purchase activities. As a result, the brand will have the legitimacy,
affirm the position of the business. This contributes to the eventual development of
business in the international market.
Besides, direct export poses high requirements for businesses such as:
capital must be large enough; the staff is competent, capable and qualified to
conduct export activities directly.
Through direct negotiation and exchange with each other, the two party
can easily come to a common agreement, so that:
 Increase profits and revenue for businesses because minimizing costs for the
intermediaries.
 Facilitate promoting the independence of the business
 Be proactive in consuming goods and products produced by their own enterprises
However, there still exist some certain disadvantages such as:
 Implementation costs for the transaction are quite high, so the volume of exported
goods must also be large to offset the costs.
 · Risks are easy to happen. Because if the staff is not qualified and experienced in
handling the work, the contract procedures will be able to make unfortunate
mistakes.
1.1.3.2. Entrusted export
Entrusted export is a form in which a third party (a company specializing
in import and export entrustment) is performed on behalf of a company to export
products (goods) for its company abroad (trading partner)
Specifically, the Commission based agent and the owner of the goods will
sign an export trust contract with each other. Then, the they will sign an export

contract, carry out delivery procedures, make payment with overseas buyers on
behalf of the exporter. they will receive a corresponding commission. This type of
export is often used by small businesses that are just starting out. The reason is that
they do not have much experience in the export market at the moment, as well as
limited human resources, barriers to procedures and state regulations…
Consequently, we can easily see the benefits that it brings as follows:
 The third party is the person who understands clearly the market and legal
procedures, so the trade is accelerated faster.
 the Commission based agent do not need to invest capital into the business but still
get a significant amount of revenue.
Therefore, companies choosing this form to export goods will face some
shortcomings as follows:
 The import and export unit may lose the link with the market due to having to
satisfy the policies and requirements of the intermediary.
 Profits are not completely retained and must be shared with an intermediary…
1.1.3.3. Counter – trade

Countertrade is any commercial arrangement in which sellers or exporters
are required to accept in partial or total settlement of their deliveries, a supply of
products from the importing country. In essence, it is a nation’s (or firm’s) use of its
purchasing power as a leverage to force a private firm to purchase or market its
marginally undesirable goods or exact other concessions in order to finance its
imports, obtain needed hard currency or technology. Although the manner in which
the transaction is structured may vary, the distinctive feature of such arrangements
is the mandatory performance element that is either required by the importer,
importer’s government or made necessary by competitive considerations.
 Types of countertrade:
 Barter: A classic barter arrangement involves the direct exchange of goods/services
between two trading parties.
 Switch trading: This is an arrangement in which a switch trader will buy or market
countertraded products for hard currency. The switch trader will often demand a
sizable fee in the form of a discount on the goods delivered.

 Clearing arrangements: Two governments agree to purchase a certain volume of

each other’s goods and/or services over a certain period of time, usually a year.
Each country sets up an account in one currency, for example, clearing dollar,
pound, or local currency. When a trade imbalance exists, settlement of accounts can
be in the form of hard–currency payments for the shortfall, transfer of goods,
issuance of a credit against the following year’s clearing arrangement, or by switch
trading.
 Buyback: In a buyback or compensation transaction, a private firm will sell or
license technology or build a plant (with payment in hard currency) and agree to
purchase, over a given number of years, a certain proportion of the output produced
from the use of the technology or plant.
 Counter-purchase: A firm sells goods and/or services to an importer, promising to
purchase from the latter or other entities in the importing nation goods that are
unrelated to the items sold.
 Offsets: An offset is a transaction in which an exporter allows the purchaser,
generally a foreign government, to “offset’’ the cost of purchasing its (the
exporter’s) product. Such arrangements are mainly used for defense-related sales,
sales of commercial aircraft, or sales of other high-technology products. The offsets
can take the form of sub-contractor production, joint production, technology
transfer or investments.
1.1.4. Factors affecting import – export activity
It is necessary to consider factors affecting the business in general and
the export in particular. these factors below often affect the results as well as the
future export activities of the enterprise:
 Factors affecting in the domestic:
 Outside factors the business:
This is a group of influencing factors located within the country but not under
the control of the business. These factors are:
• Strategies, socio-economic development, policies and laws related to export
activities of the State.

This is a factor not only affecting the export performance of enterprises

now, but also in the future. Therefore, enterprises must comply with and respond to
it at present, on the other hand, enterprises must have appropriate future export
plans.
Today, Vietnam is implementing an export-oriented strategy. This is a
strategy that focuses on creating export products that are increasingly in line with
the needs of the world market on the basis of better exploitation of the needs of the
national market. The State has specific development policies for each period in
order to encourage all individuals and economic organizations to participate in
export activities, including foreign trade enterprises.
The encouragement of export activities is reflected in policies and
measures related to creating sources of goods for export, creating a favorable
environment for export, and providing financial support for enterprises participating
in export.
• Current exchange rate: Exchange rate is the price of foreign currency in local
currency, or the relative value comparison between local and foreign currencies.
In export activities, enterprises must pay attention to this factor because it
relates to the exchange of foreign currencies into their local currency, thus directly
affecting the export performance of enterprises.
If the exchange rate is larger than the export foreign currency rate, the
enterprise can carry out export activities. Conversely, if the exchange rate is less
than the export foreign currency rate, the enterprise should not export.
In order to know the exchange rate, the enterprise must have the state's
current exchange rate management mechanism and monitor its fluctuations from
day to day.
• Ability to produce export goods of each country: This ability ensures the source of
goods for the business, which is reflected in the products that can be produced with
the volume, quality, specifications, designs whether they are suitable for foreign

market or not. This determines the competitiveness of products when the business is
offered for sale in the international market.
When participating in export activities, enterprises will have great
conditions if a country has a developed scientific and technological level, capable of
creating a variety of products with international standards and quality which are
designed to ensures high aesthetics and affordable price. On the contrary, the weak
domestic production capacity, with the monotonous and rudimentary products, will
greatly delay the competitiveness and export expansion of enterprises.
Currently, in our country, the production capacity of export goods is
still low, the export products are simple, the quality has not met international
standards. This is a difficulty for foreign trade businesses to engage in export
activities.
• The level of competitiveness of domestic exporters: Competition, on the one hand,
has the effect of promoting the rise of businesses, on the other hand, it also crushes
and "drowns" weak businesses. The level of competition here denotes the number of
firms exporting in the same industry or of the same interchangeable goods.
Currently, the State has a policy of encouraging all enterprises, all economic sectors
to participate in export, leading to an explosion in the number of enterprises
participating in export activities, thus sometimes leading to unfair competition. This
is a challenge for foreign trade businesses today.
• The country's technical infrastructure development:
This is a factor in the export infrastructure. It includes the development of
the transportation system, the broadcast level of the communication system. These
factors can enhance or limit the trading capacity of the enterprise, expand the export
market of the enterprise, and increase or limit the export transporting services of the
enterprise.
 Internal factors of a business:
This is an internal factor in the business. Enterprises can control and
adjust it in a positive direction for their export activities. These factors are:
• Leadership and business administration capabilities of the board of directors:
This is a very important factor, decisive to the success of the business of the

business. Because the qualifications and ability of business management of the

business management board will help businesses get the right business strategies. It
also helps to ensure that businesses can take advantage of international market
opportunities based on their inherent capabilities.
• Export business knowledge and capabilities of a team of sales staff in
enterprises: Sales staff are those who directly perform the work of exporting goods.
Therefore, their qualifications and capabilities in export activities will determine
their performance. These will determine the business performance of the entire
enterprise.
• The financial ability of the business: This is reflected in the firm's capital size.
The size of the business capital has the ability to work continuously. The company's
financial capacity also has many aspects. It may be a corporate restriction.
Sometimes it can help the company expand to other possibilities of the business.
Because capital is the premise for all business activities of the business.
• The business strategy of an enterprise has a significant impact on the business
performance of the enterprise. If the right business strategy makes the business lose
money, leading to bankruptcy and is still appropriate (in the right direction), it will
develop well.
• Factors of natural and geographical resources: Geographical location as well as
natural resources are what nature gives, through which countries exploit its potential
for export.
Natural resources are one of the important factors that serve as the basis
for the country to build industry and regional structures for export. It contributes to
the type of goods and size of the country's exports.
Geographical position acts as either a positive or negative factor for a
country's economic development as well as exports. Favorable geographical
position is a condition that allows a country to take advantage of the international
assignment of labor, or promote the export of services such as tourism,
transportation, banking, etc.
 Factors from foreign markets:
These are factors outside of national control that directly or indirectly
affect the export activities of enterprises. The following factors can be mentioned:

• The economic development of the export market: This affects the needs and
solvency of export customers, and thus affects the export performance of the
business. Factors reflecting the economic development of the export market are
gross domestic product (GDP), income of the population, inflation, interest rates.
• Political situation and international cooperation: It manifests itself in the trend
of cooperation between countries. This will lead to the formation of economic and
political blocs of a group of countries, thus affecting the situation of the export
market of enterprises.
• The socio-cultural characteristics and changes of the export market: This has a
great influence on the needs of the customer, thus affecting the customer's buying
decisions and affecting the export performance of the business.
• The scientific and technological development level of the export market: This
will affect many aspects of the socio-economic life of that market, thus affecting the
needs and purchasing power of customers.
• Trade policies of the countries with the export markets of the business: It may
limit or create favorable conditions for enterprises to export to that market. A
country with a free trade policy will make it easier for businesses to export to that
country and often bring high economic efficiency. In contrast, a country with a strict
trade policy will create many difficulties for businesses when exporting to this
market.
• The level of international competition: Expressed in the pressure from
enterprises and international companies to enterprises when participating in a
certain export market. The greater this pressure, the more difficult it is for
businesses to enter, maintain and expand their export markets. The influence of the
world socio-economic situation: In the condition that each country relies on its
advantages as well as the world consumption market to organize production and
export, the connectivity and dependence between countries is increasing. Because
of this, each fluctuation of the socio-economic situation in foreign countries has
certain effects on domestic economic activities. The field of export activity is a field
of direct relations with foreign actors, influenced and influenced by foreign factors,
so it is even more delicate. Any change in export policy, inflation, unemployment or

economic recession growth ... of other countries will affect the export performance
of exporting enterprises in our country.
1.2. Overview of bamboo and rattan handicraft products export

Bamboo and rattan industry in Vietnam is considered as one of the
industries with great development potential.
Currently, there are more than 1,000 bamboo and rattan crafting villages
nationwide, accounting for 24% of the total number of craft villages in the country.
In which, the Northern and Central regions focus on bamboo, rattan, leaf and sedge
products, and the Southwestern region concentrates a lot of water hyacinth products.
The famous bamboo and rattan crafting villages are: Phu Vinh bamboo and rattan
craft village; Tang Tien bamboo and rattan crafting village; Bamboo and rattan craft
village in Ninh So; Thach Cau bamboo and rattan crafting village; Ngoc Dong
bamboo and rattan village; Bao La bamboo and rattan craft village in Quang Phu -
Quang Dien - Thua Thien Hue …
Nowadays, bamboo and rattan products, and other handicraft products are
consumed both domestically and export; but enterprises pay more attention to
export.
The domestic market has had a rapid growth in the past 6-10 years, more
than 15%, mainly serving the home furniture industry, hotels and resorts. In
addition, international tourists are also interested in businesses.
The potential for consumption in the domestic market for rattan and
bamboo products is huge, but in fact the market share of this products in the
domestic market is still modest. The reason is partly due to the fact that enterprises
in the industry mainly focus on producing products for export. In addition, the
distribution system in the domestic market is limited, unprofessional, and has not
met the value chain.
 Specifically when talking about Exports:
Among products exported from rattan, bamboo other handicraft products
of Vietnam, accounting for the highest proportion are plaiting products (products

made of plastic...), accounting for 25, 5% of total export turnover in the first 11
months of 2018, reaching 57.50 million USD, up 44.1% over the same period in
2017. Next is hyacinth weaving products, with export turnover in the first 11
months. In 2018 reached 50.68 million USD, up 14.8% over the same period in
2017. Export of sedge products reached 48.63 million USD, up 28.6% over the
same period in 2017. Export of rattan products reached 23.55 million USD, down
7.9% over the same period in 2017.
The EU and the US are the two main export markets for Vietnamese
rattan, bamboo, sedge and other handicraft products. Particularly, exports to these
markets accounted for nearly 70% of the country's total export turnover of
handicraft products.
In the first 11 months of 2018, the export of rattan and bamboo handicraft
products to these two markets increased. In which, exports to the US market
increased sharply, reaching 61 million USD, up 26.7% over the same period in
2017; raising the proportion of exports to this market from 24.7% in the first 11
months of 2017 to 27.1% in the same period in 2017. Knit hyacinth is the product
most exported to the US market in the first 11 months of 2018. , reaching 23.42
million USD, up 38.3% over the same period in 2017. Next are products made of
plastic wire, sedge and bamboo.
Export of rattan, bamboo, sedge and other plaiting products to the EU
market in the first 11 months of 2018 reached 94.62 million USD, up 6.2% over the
same period in 2017. Among the markets in the EU, Germany, France, UK,
Netherlands, Spain ... are the largest import markets for Vietnamese rattan, bamboo,
rush and other plaiting products. The sedge is the most exported product to the EU
in the first eleven months of 2018, reaching $ 27.22 million, up 32.9% over the
same period in 2017. Next is the plastic wire products; Knitting bamboo and
knitting water hyacinth.
In addition to the two main markets mentioned above, rattan, bamboo,
rush and other plaiting products are also exported to Japan, Australia, Korea, China,
Canada ...

 Difficulties of Vietnam rattan and bamboo industry

Although the export of bamboo and rattan products of Vietnam has
achieved positive results over the past time, the export sector of Vietnamese rattan
and bamboo still faces many difficulties. Vietnam is increasingly integrating more
deeply into the international economy. Vietnamese enterprises in general and
bamboo and rattan enterprises in particular are facing great challenges because
Vietnamese enterprises are not have enough experiences in many aspects and the
facilities for production of enterprises are still limited. In fact, bamboo and rattan
products are handicrafts that need to be preserved well while the facilities of many
enterprises are still poor. The material quality of overseas bamboo and rattan
producers is very good. Because of the limited capital, the bamboo and rattan
enterprises cannot afford to build specialized facilities for their production.
Moreover, due to the lack of production space, the factory is still utilizing, not yet a
production system. Production facilities all have difficulty in production premises,
material gathering yards, and product delivery shops …
In addition, the trade promotion of our country's bamboo and rattan
enterprises is also facing many difficulties. The vital thing of enterprises in the
foreign bamboo and rattan market is that product designs must be constantly new
and attractive, but in general, our innovation and design have not met the demand.
Currently, most of our enterprises are producing according to foreign models, the
enterprises that are standing in the field of bamboo and rattan are mainly
outsourcing for foreign corporations to export according to their designs. should be
under price pressure; That is not to mention the enterprises and craft villages that
mainly export goods through domestic intermediaries. Therefore, profits from
bamboo and rattan production of enterprises are not high and the income of
employees is still low.
The lack of initiative in raw materials is also a problem. In the past, it was
relatively easy to source raw materials. However, in the past few years, this has
become more difficult because the forest areas providing raw materials in Dong

Nai, Binh Thuan… people have cut down for cultivation. The increasing purchase
price of raw materials, high transportation costs, lack of initiative in the supply of
raw materials ... have a great impact on the price, selling price and competitiveness.
The ability to access the market is still weak. We are used to the motto to
produce fast, good, cheap, but how to sell fast and lot is still a new problem. The
domestic market system is not stable, many people do not know to whom to sell
their products, goods are backlog, slowly circulating ... In rural areas, people have
little opportunity to access new products. Introducing products at international fairs
is expensive, businesses have little experience in exploring foreign markets and still
face many difficulties in mastering international conventions, understanding Market
demand, approaching to foreign partners, experiences creating a binding mechanism
for partners to pay for payments on time. Domestic enterprises have not yet been
attached to a strong block in their relationship with foreign partners, all
relationships are separate, so they do not have great strength in competition.
CHAPTER 2: FACTORS AFFECTING TO BUSINESS ACTIVITIES IN THE

COMPANY
2.1. General overview of business activities in Glovimex company

2.1.1. General information about company
 Contact address:
 Company name: Glovimex Company Limited
 International transaction name: GLOVIMEX Company Limited
 Type: Limited Liability
 Address: No. 18/67 Chua Lang Street, Dong Da District, Hanoi
 Phone: 0902162567
 Email: sale1.glovimex@gmail.com
 Representative office: No. 72, Lane 2 Tran Phu Street, Quarter 1, Mo Lao Ward, Ha
Dong District, Hanoi
 Established on June 27, 2015, establishment license No. 0108342665 issued by Ha
Dong District Tax Department on June 28, 2015.
 Website: www.glovimex.com

 Company size: 11-50 employees

 Key products: Handicraft Products made of Bamboo, Rattan, Jute, Seagrass, Water
Hyacinth such as: Lamp Shade, Basket, Tray
Other products: Handicraft products, Encaustic Cement Tiles, Eco-friendly
Utensils.
a. Function and Mission

 Function:
• As a major company in the field of exporting bamboo and rattan products,
Glovimex Co., Ltd. has been asserting its position with domestic and international
customers –
• Company mainly exports products made from bamboo and rattan such as bamboo
and rattan products, rattan chairs, bamboo and rattan decorations ... and mainly
exported to Japan, the US, some EU countries.
• Through export activities, the company has the opportunity to enter and access
world markets. If it is successful, this will be the basis for businesses to expand
their markets and production capabilities.
• Export combined with import in the context of a multi-sector commodity economy
will contribute to promoting joint ventures between domestic and foreign
enterprises voluntarily, expanding business relationships, exploiting and using
effectively existing resources and solving jobs for employees.
• High income generates foreign currency to import raw materials to serve the
production of goods and meet the market demand.
• Acutely absorbing business strategies, grasping consumer tastes to draw effective
business tactics, expanding scale, promoting sales, reducing costs, and getting
maximum profit, ensuring the company to keep stable market share in the
increasingly fierce competition conditions.
• Increasing investment, purchasing modernized technology machines and production
lines, consolidating, and training highly skilled staff to meet the development needs
of business in the new conditions.
 Mission:

• Making Glovimex company to become one of the biggest names in the bamboo and
rattan manufacturing and exporting industry in Vietnam.
• Mobilizing and using capital according to the requirements of the owners,
complying with the current regime and ensuring profitable business.
• Making long-term and short-term production and business plans in accordance with
the company's goals and missions and suitable to the market.
• Fully complying with commitments in the signed contracts with customers, partners
and suppliers.
• Expanding cooperative and joint venture relationships, and developing markets,
fair competition, fulfilling tax obligations to the State and improving the living
standards of workers.
• Maintaining and developing brand in the domestic and international market as well.
b. Formation and development
Glovimex Co., Ltd was officially established in 2015. The first two years
were a relatively difficult period for employees in the company because they were a
very young company in domestic and international markets. Facing the current
situation of economic development and international integration, the company's
leaders clearly define the current goals, exporting is identified as the focus of
business activities of enterprises. Besides, focusing on promoting production to
create a stable source of goods for export and supply to the domestic market to not
only maintain and develop foreign markets but also actively expand the domestic
market to create stability and durability in business. Thanks to that, in the recent
years, the company's export turnover has always increased from 20% to 30%, The
company's export market continues to maintain over 45 countries and regions
around the world, still keeping the traditional customers and brand prestige and
constantly improving as well as affirming their position in domestic and
international markets.
After more than 6 years since its establishment, with the efforts of the
managers and staffs, it was quickly transformed from a small-scale company into a
big one and got numerous of remarkable achievement, including the long-term
relationships with more than 200 customers in Asia, Europe, America.

 The feature of Bamboo and Rattan products

Rattan and bamboo are important products in the group of NTFPs in our
country and play an important role in the export structure of handicrafts in recent
years. Vietnamese rattan and bamboo products are quite diverse with many models
and category such as products from bags, baskets, trays, lamps and many other
household products. The feature of this item is that it can create many diverse and
attractive sizes and designs. We can create many patterns from classical to modern,
from complex to simple, even patterns can be reduced to all patterns to bring the
closest. Bamboo and rattan products are produced with 2 main uses: household
products commonly used in daily life (production tools and living tools) and
handicraft products. However, they are very rich in categories, especially handicraft
products. Types of products (often called product codes) are distinguished in great
detail with the differences in pattern lines, colors or combinations of materials.
Especially in recent years, the bamboo and rattan industry has added a handicraft
product using water hyacinth in the Mekong Delta and it is considered as a new
innovation in the condition that natural resources of rattan and bamboo are
exhausted. The bamboo and rattan industry is also integrating with the international
economy with the emergence of non-traditional products such as flooring, pressed
furniture, assemblies, etc. With these non-traditional products, businesses are
growing and the daily industry system is increasingly rich and complete.
2.1.2. Organization of management in Glovimex Company

Figure 2.1: Organization of management of Glovimex company
The above diagram describes the current organization structure of

Glovimex. At the highest position is Board of Director. Following is the
Departments, each of them has one Representative or one team leader who performs
professional work; plans and coordinates work with the Board of Director; proposes
reward and punishment
 Board of director:
• General Director, Mr. Tran Le Hai, is the head of the company, directly manages the
capital contribution, represents the company in accordance with the Law and
manages all activities of the company.
• Secretary of director who assists for General director
 Management departments:
• Financial accounting department manages, inspects, guides and implements the
accounting regime. In addition, statistics and manages of financial revenues and
expenditures, asset in accordance with the company's financial regulations. Meets
financial needs for all production and business activities of the company as planned;
preserving and developing the company's capital.

• Sale department is in charge of bringing in revenue for the company.

Take general responsibility for the business situation of the Company, plan,
develop market by month, quarter, year, set sales goals, build promotions, sales
policies, check professional control of the sales team under his authority.
Sales staff: Search for customers, build and manage customer data by location,
take care of potential customers, report daily and weekly with direct supervisors.
• Administration and HR department is responsible for the administrative sector such
as managing paper documents, incoming documents, drafting administrative
documents, managing stamps and performing regular administrative operations.
Responsible for human resources: Recruiting, doing contracts, managing
records, receiving records or quitting jobs; timekeeping; insurance
• Import-Export department establishes and implements plans of receiving and
exporting goods to meet production's and customer's requirements
- Implement and monitor the opening of declarations to receive goods on time
- Prepare and deploy customs reports as required by the customs law
- Propose to the direct superior about each creative idea to improve the work
quality of the department
- Import-Export staff:
- Perform, negotiate, and sign contracts with customers and suppliers
- Complete import and export procedures and documents
- Manage and track orders
2.2. Factors affecting business activities in Glovimex Limited company
2.2.1. Internal factors
2.2.1.1. Marketing strategy
Marketing strategy is an indispensable part of business operations of all
types of businesses. But specifically, in order to target foreign markets, to satisfy the
needs and desires of foreign customers, businesses need to build a good export
marketing strategy for themselves. The marketing process of a business usually
consists of 5 basic steps: analyzing marketing opportunities, researching and
selecting target markets, designing marketing strategies, planning marketing
programs, organizing and testing marketing strategies. But in the scope of this topic,
the article only goes into depth researching the issue of export marketing programs
of Glovimex Co. Ltd.

a. Based marketing program planning

 The needs and wants of the customers
Nowadays, when most companies plan their business programs towards
customers, it is very important to learn about the needs and wants of their target
customers to satisfy those needs.
A natural need is a sense of lack of something that human beings feel.
Discovering and evoking customers' need helps the company create unique and
suitable products, thereby improving its competitiveness in the market.
 Convenience: In addition to meeting the needs and desires of customers at a
reasonable cost, businesses need to create convenience for customers when buying
through a product distribution system.
 Information: In the condition that businesses all focus their resources on marketing
with advertising programs, promotions,... make customers doubt about the
authenticity of the source of that information. Therefore, in order to win the
competition and gain the trust of customers, the company needs to regularly provide
information about products, businesses as well as promotions to customers and
ensure completeness and the accuracy of such information.
b. The marketing strategies of the Glovimex limited company
 Product strategy:
− International product policy:
• Direct expansion policy: is the introduction of an enterprise's products to a foreign
market without any changes, particularly the EU market. In essence, this is a policy
based on the point of view of standardization of products. However, the company
has not been successful in expanding its market through this policy. Because
bamboo and rattan products are highly competitive in the international market,
besides products made with other natural materials. in particular, there is fierce
competition with countries that have traditionally produced handicraft products such
as India, China and some other Southeast Asian countries such as Thailand and the
Philippines.
• Product adaptation policy: is to change products to satisfy the needs and tastes of
foreign markets. The company has done very well in this strategy when regularly

updating market trends, diversifying. product models depending on each market

segment. However, due to the limited financial potential and considerable expense,
this policy has not really brought about high efficiency.
− Quality management: Product quality control in foreign markets requires that
businesses comply with product technical standards. Product technical
standardization has a great influence on an enterprise's ability to penetrate overseas
markets. GLOVIMEX Company has strictly followed the technical procedures to
ensure the best quality of exported goods to consumers. The company has built a
team to check product quality carefully before delivery to partners and distributors.
With the motto of bringing the best and most complete quality to consumers,
satisfying the most demanding customers, Glovimex has been doing very well in
the process of product quality control before delivery.
 Pricing strategy:
The price of a product or service is an amount of money that a buyer must
pay the seller for the right to own or use that product or service. Determining an
international price policy is one of the most important activities that businesses pay
special attention to if they want to thrive in the international market. In essence, it is
a component of international marketing policy that implements the most direct
growth in sales and profits. Every mistake in this area quickly affects the results.
This is because price has a special place in the reproduction process. The principle
of determining prices is that consumers should feel that they have received a value
commensurate with their money. At the same time the business must make a profit
either short term or long term depending on the overall goals of the business.
− Factors affecting product price decisions in foreign markets: In order to determine
the price structure, it is necessary to first consider the basic factors that affect the
price of products in the domestic market. out. These are the factors:
• Product cost: is the basis for determining the product's floor price, including: All
costs associated with the release of a product, from strategic planning costs to
product release.
The cost to bring products to different foreign markets through export,
investment, contract-style cooperation.

All costs for bringing the product to consumers (distribution and product
promotion).
Costs after sales: customer care, warranty ...
For each different foreign market conditions, the levels of the
factors that make up the costs are also different and usually companies must add to
the cost of covering risks for each particular market.
• Market demand: is the basis for determining the ceiling price when selling products.
The demand for a product will change inversely with price and proportional to
income. The basic factors of market demand that can affect prices are:
Purchasing power of customers: Marketing department of the company has
very detailed researches on the number of potential customers, per capita income
and average product consumption per person for each potential market, from which
to offer the right price for each market segment
The cultural and social environments of different markets also have a great
influence on demand and thus on acceptable prices in that market.
 Distribution strategy:
An important part of an export marketing strategy is distribution.
Distribution solves the issue of how goods and services are presented to consumers.
Distribution decisions are often complex and have direct effects on all other areas of
marketing.
When choosing distribution channels, marketing managers often base on
product characteristics, market characteristics and enterprises' ability to choose
channels. There are two ways to bring the company's products to foreign
consumers: direct distribution and intermediary distribution.
Glovimex has applied the form of intermediary distribution. This is a form
of distribution in which goods from the company through marketing intermediaries,
through distribution channels of foreign importers. The company directly builds
sales website, promotes brand image, closes contracts with partners and plans
product distribution strategy. This form of distribution has brought about a quite
positive effect for businesses, because the advantage it brings is low cost. However,
there is still a drawback that is the ability to directly contact the end consumer.
 Promotion strategy:

The nature of promotional activities is to spread product and business

information to customers to persuade them to buy. The five-component (tool)
composite promotion coordination structure is advertising, propaganda,
commercial, personal sales and direct marketing. Solution on advertising:
advertising is generally understood as the use of media to convey information about
a business's products to potential customers. When advertising in foreign markets,
the company has carefully studied the environmental factors of advertising, selected
advertising means as well as designed advertising content in accordance with the
characteristics of each market. school. The forms of advertising often used by
exporting enterprises:
+ Introduce about businesses on TV, radio, newspapers, internet
+ Catalogue
+ Participate in trade fairs and trade fairs.
+ Direct mail
Glovimex Company has been interested in communication activities and
developing export promotion tools for rattan and bamboo. Budget and resources for
promotion have been invested, often defined
based on sales but the numbers are very small. The export promotion planning
and implementation of enterprises in the exploiting markets is not really clear and
effective.
In recent years, the company has started to invest in trade promotion
activities, but the cost for this activity is limited to 2% of sales in that market. The
company's international trade promotion activities only focus on importers,
information to end consumers has not been disseminated:
 Advertisement:
Advertising goals are aimed at generating attention and buying selections
of customers. The company's customers are advertised through the main platform
of sending sales samples, letters of advertising, catalogs, newspapers and magazines
to customer. Sending samples to the company's representatives in the EU and EU
companies in Vietnam in order to introduce their products to large buying
organizations, and provide other necessary information to transact with customers.
Moreover, e-commerce is becoming more and more important in international
transactions. Both buyers and sellers find it convenient and cost effective to make

transactions by the internet. The company also uses the form of product advertising
through websites in Vietnam and around the world, websites of trade promotion
organizations WWW.Vietrade.gov.vn. Advertising through the internet helps to
promote more widely the image of the company's products not only to importers,
trade organizations but also to end-consumer, customers. This form saves a lot of
money compared to other forms and bring high efficiency, because the EU is a very
developed market for electronics.
 Selling directly to customers
The company sends sales orders directly to customers, introduces products
via web, fax. The direct meeting and working with customers is only done mainly
at the exhibition fairs, looking for new partners and customers. At international
fairs, the company has made the most of the opportunity to meet, exchange directly
with customers, actively offer and look for new products. At the company's
showrooms, communication activities to stimulate sales are also focused on
promoting sales quality and staffs are trained the basic knowledge.
 Promotion
The company often sends gifts to familiar customers and importers to
promote and maintain good relationships with customers. Besides, Glovimex
Company also sends some unique and new products to potential customers in order
to find more new customers and potential new markets. For lots of large quantity,
the company discounted prices to promote buying behavior of corporate customers
2.2.1.2. Human resource management

The existence and development of an enterprise depends greatly on the
exploitation and efficient use of resources: capital, facilities, scientific and technical
advances, employees. These factors have a close relationship and interact with each
other. Many factors such as: machinery, equipment, material possessions,
technology can be purchased, learned, or copied, but humans cannot. Therefore, it
can be affirmed that human resource management plays an essential role in the
existence and development of an enterprise.

Human resource management contributes to solving the socio-economic

aspects of the labor problem. It is a common problem of the society that all
economic activities, in general, have the same goal: how to make employees enjoy
the results they make. Human resource management is associated with every
organization, any organization should have a human resources department. Human
resource management is an important element of the management function. Human
resource management plays an important role in all departments. Any level of
management has staff under its authority, so there must be human resource
management. Human resource management creates a cultural atmosphere for a
business. This is also one of the decisive factors to the success or failure of an
enterprise.
 The importance of human resource management in the enterprise:
One of the first roles of human resource management is to help build,
orient and monitor the human resource apparatus to work in accordance with the
strategic objectives outlined by the organization. In addition, effective human
resource management also affects the working environment of employees, helping
to increase labor productivity, increase revenue and profit for businesses.
The importance of human resource management will be evident through
the following goals:
• Cultural tracking, assessment and development of corporate culture
environment.
• Managing talent as a whole
• Responsible for recruiting a high quality workforce.
• Salary proposition based on market assessment.
• Proposed employee benefit programs.
• Organize and ensure programs work in the workplace.
In fact, Glovimex has been developing a human resource management
strategy according to a certain process. The company is always proactive and active
in recruitment strategies and staff training before and during the working process.

And to have such success, it is impossible not to mention the role of the
management team in managing and maintaining corporate culture. And here are the
recruitment processes that the company has adopted:
 Recruitment
Recruitment is the process of attracting human resources capable of
working to meet the actual needs of the organization from many different sources to
work for the organization. To be highly effective in this work, human resource
managers must follow closely the set strategy and plan, strictly comply with the
goals and quality of human resources. Determine the exact level of recruitment,
require working skills, limit the cases in which the company cannot do the re-
training. To save maximum time and cost in recruitment, it is necessary to focus on
candidates with a profile that meets the minimum basic requirements that the
company has set out.
Recruitment source:
The company conducts recruitment with a wide range across the country
by means of mass media or sends notices to training institutions, human resources
are not limited by space, time, and conditions. The simpler the demand, the more a
large workforce will be attracted to participate in the recruitment process, including
the following sources:
Internal source: This is a very safe source of labor, because they are familiar
with the working environment, organizational discipline and other laws.
Organizations conduct statistics on vacancy positions, encourage internal people
who have the needs and abilities to fit the position and feel better at the job, should
participate accordingly recruitment.
External resources: This approach is widely applied when organizations
expand the scale of production or add a new field of production. This source is
mobilized from: Recruitment from universities, colleges, professional high schools
or vocational schools. Recruitment from friends, relatives of internal human
resources: Through the recommendation of employees in the organization, their

friends or relatives may be in need of a job but are able to hold the position. Need to
recruit can join the application.
Recruitment from former employees: Although this human resource is not
much, it is also the target of recruitment for organizations. Former employees who
may be fired, retire, quit their job, or change jobs because they do not match their
professional qualifications in a particular field can now also be recruited into new
positions.
Recruitment from customers: Customers with aspirations and the ability to
work suitable for the job to be recruited can join the recruitment. Customers who
also know a lot about the organization, so it's easy to apply.
Recruiting from other sources: It is possible through job placement centers to
advertise jobs to job seekers.
 Recruitment of human resources
Recruitment is the process of evaluating candidates according to many
different aspects based on the requirements of the job to find out who matches the
requirements set out among those who are attracted in the recruitment process.
Selection process is a multi-step process, each step is considered as a
screening barrier, the number of steps is dependent on the complexity of the job,
recruitment rates, talent. key, the reliability of the information obtained.
Step 1: Initial reception and preliminary interview: It is the first step in the
selection process to establish the relationship between employers and job applicants
and identify qualified individuals. is suitable for continuing the relationship with
that candidate.
Step 2: Screening through the job application: This is an important content of
the recruitment process and the job application is often designed by organizations
and applicants simply fill out and approve the job application. There will be
information about experienced skills, current knowledge, personal psychological
characteristics, dreams, expectations, and other special abilities.

Step 3: Test of personnel in selection: Help recruiters understand the

psychological qualities, other special skills of the candidate. However, in order to
build up the tests to achieve the purpose, it is necessary to have people who are
knowledgeable about the job, research carefully about the job, especially job
descriptions, job orders for candidates.
Step 4: Selective interview: The process of verbal communication through
asking and answering questions between employers and job applicants, this is one
of the methods of information income for selection decisions. . The interviewing
method helps us to overcome the shortcomings that the job application research
process does not understand, or the types of diplomas and certificates do not cover.
Step 5: Physical examination and fitness assessment of candidates: To ensure
that healthy candidates work for a long time in the organization and avoid improper
demands of the recruited In terms of ensuring long-term working health in the
organization and avoiding improper demands from the recruited regarding health
security, the next important step is to conduct medical examinations and physical
assessments of applicants. tablets. This step is for the health professional in charge,
the resource department should provide the fitness standards for the positions for
which medical professionals can select. This step should be considered and
evaluated objectively, avoiding the phenomenon of appearance, through
loudspeaker.
Step 6: Interview by the direct leader: Interview by the direct leader: To ensure
the consistency from the selection committee to the person in charge of directly and
the employer, an interview is required. direct consultation of the person in charge to
evaluate more specifically the candidates.
Step 7: Verify the information obtained in the selection process: To determine
the reliability of the information obtained through the selection steps, we must
perform the step of verifying the accuracy of the information.
Step 8: Visiting the job: The job applicants always expect job satisfaction, so if
they create job frustration due to insufficient information, it will cause a lot of
disadvantages for people. just got a job. Therefore, in order for job applicants to

make final decisions about employment, the organization can give the candidates a
tour or listen to a full explanation of the jobs that, after being recruited, will have to
do.
Step 9: Make a selection decision: After completing the above steps and the
recruitment information has met the selection requirements, the selection board will
issue a recruitment decision. apply for job.
 Human resource training and development
Human resource training is an activity aimed at improving the capacity,
professional and professional skills of the employee to make the working process
more effective.
This process continues throughout the establishment and development of
the company, improving working skills, increasing understanding and creative
thinking ability for people, in order to contribute more. further for the development
of the company.
Training content:
Training to improve working skills for employees
Group work training: To guide staff how to integrate and work in groups in
the most effective way.
Training to perform many functions: This content aims to equip employees
with a vast and complete knowledge base, ability to perform many jobs, highly
integrated thinking ability, flexibility in work. .
Training creativity for employees: In this form of training, the staff is given
priority to work in a special environment, free to think creatively according to their
personal preferences, to promote their creativity. created without being controlled
by any control system.
Human resource development:
This is the foremost task of organizations, especially in the current global
integration context. Human resource development includes performance

assessment, professional training and retraining for employees, creating a maximum

working environment for their inherent intellectual abilities.
 Promotion
Promotion is to move the employee's job position to a higher position
with heavier responsibilities, consistent with the staff's professional qualifications
and ability to work. At the same time with this task is to receive a greater salary and
power than before, asserting its position in the organization.
 Motivating employees who want to be in a higher position to perfect their
work for promotion opportunities.
 Motivate employees to try to work and contribute to the organization
worthy of what they enjoy.
 Avoid the risks when recruiting human resources from outside due to lack of
understanding of their capacity and ethical qualities.
 Help the organization retain talent by giving them tasks that are worthy of
their abilities.
Promotion is the result of tracking both employee's work history and
dedication, a measure of the importance of each individual to the organization. A
person gets promoted when the organization finds that they have the qualifications
and qualifications to take on a new job. Promotions must be made openly and
transparently between the organization, without stealthily giving preference to the
unworthy. Promotion positions must be open and the organization must have a clear
statement of potential candidates. Promotion is often associated with training to
improve the professional skills needed for the new job position
 Personnel remuneration policy
This is the method that affects the employees' psychology. Benefits are the
satisfaction of human needs, the first manifestation of it is the economic shown
through the relationship between employees. The stimulus to the main benefits is
the stimulus in the production process, the employees' enthusiasm for work. After
working process, I will get what is the question that all the workers are most

concerned about. The greater the benefits, the greater the motivation, the more they
will work harder, be more efficient and have better quality, in contrast a company
with poor performance, low wages without remuneration, working conditions. If
bad, there is obviously no motivation to work or just coping because they think that
what they get is not worth what they spend. Workers' needs force them to work, but
benefits are the direct and most powerful motivator for them to work with high
efficiency. work, season, frequency, working capacity of individuals as well as skill
level, creative ability. The applicable remuneration policies are:
Salary policy: The managers evaluate the working capacity, the efficiency of
human resources, and then build a system of salary policies in line with the labor
results.
Bonus policy: Besides salary as the main source of income, bonuses are also
the concern of the employees. They want to get the benefits they deserve from their
efforts. The larger the bonus, the more employees are interested in working because
this is the amount they receive in addition to the salary.
Other remuneration policies: Allow transport, liaison for managers, maternity
leave for female workers, build a housing system for people in need, which have
benefits issued in case of illness and illness ...
2.2.2. External factors

2.2.2.1. Competitors and their products
In the past 4 years, despite many difficulties in all aspects: The
competitive environment in the EU is increasingly fierce, the market is particularly
difficult with designs, designs and quality of goods. In addition, the strong
economic volatility in recent years has a great impact on the production and export
activities of the company to the EU market, but with the efforts of all staff,
Glovimex Company has been in the stage of effective business. The company's
products are present in many markets and are increasingly popular with more than
partners of 30 countries around the world. In Europe countries such as Italy, UK,
France, Germany, Spain, The Netherlands, Switzerland, Sweden, Denmark, the

Americas such as America, Canada, Venezuela, Brazil, Chile, Baharnas ..., Asia as
Japan, Korea, Hong Kong, Taiwan.
Sales and exports to the EU market have certain growth over the years.
New markets are continuing to be exploited effectively, especially the Nordic
market. The selling price in this market is much higher than the selling price in the
regional market, helping the company get higher profits. Although this proportion
of export is not enough compared to the potential of blooming, but with a high
growth rate, this shows that the potential for market development is still much for
the company.
Due to the impact of the global economic crisis since late 2008, the people
of the EU as well as other countries in the world fell into a difficult situation with
high inflation, so they must implement austerity measures. While the company's
bamboo and rattan products are mainly decorative items, these are not essential
items, so the purchasing power has not been stable over the years. In addition, the
EU is an attractive market, the company always faces many domestic and
international competitors in terms of design and price while research activities,
market access of the company is still incomplete and methodical. Therefore, the
company is facing many difficulties and especially the competitiveness is still poor,
typically with Chinese exporters and other domestic rivals.
In China, Rattan is a long-standing traditional product of rural households.
Now the production of bamboo and rattan products has been expanded and become
an important part of the economy. practice. The estimated trade value of this item in
China is $ 2 billion. The ability to learn and design fast products makes Chinese
products have diverse models but the quality is not guaranteed.
In addition to competing on designs and styles, the company's products'
application culture that is most interested by consumers is what Vietnamese
businesses and Glovimex Limited Company are still unable to meet when exporting
to foreign markets.
Chinese products have a wide variety of types, designs and sizes. Besides,
Chinese enterprises also offer very competitive prices with potential markets that

Glovimex cannot offer, because if they do so, the company's profits will not be
guaranteed, greatly affecting future development strategies. In particular, if the
profit on the total of goods sold is too low, in the short term it will lead to the
budget deficit of the company, limit the ability to meet the development policies in
the future, and in the long term, the company will not be able to meet the financial
resources to continue operating. In fact, China is able to offer this price because its
goods are produced in very large quantities, making the cost of production per
output much less. And most importantly, China is the most populous country in the
world, so the human resource is extremely abundant, the labor cost is cheap. On the
contrary, Glovimex's scale is still small, unable to mass produce goods, so it is
impossible to cut costs in this stage.
Chinese firms are also very quick to grasp market trends. They always
innovate products with many high applications in life but still satisfy consumers'
tastes.
However, both Vietnam and China are facing some major problems that
the product has not had its own design or brand, as well as the quality of the product
can not compete with countries such as Canada, USA, EU...
2.2.2.2. Fluctuation of the domestic and international market

The trend of consuming goods in the world is constantly fluctuating. The
current outstanding feature in the global home and decorative goods market is the
rapid development of fashion, style, design, color changes ... making the product
life cycle shorter . Previously, bamboo and rattan products could be left in inventory
for years, recently the product life cycle is only about 6 months. This requires
manufacturers to constantly develop new products and designs.
Rapid changes in the product life cycle have limited the role of copyright
or intellectual property protection. Maintaining copyrights for such short lifecycle
products in terms of cost and design changes are ineffective. Since it is very
common to follow or to diversify home decor products, the best competition policy

for businesses is to continually introduce new designs, in order to keep pace with
the rapidly changing market.
It is forecasted that bamboo and rattan weaving market will have many
changes in household decoration products in general and bamboo and rattan
products in particular due to the huge competition among wholesalers and retailers.
In the next 5 -10 years, the product life cycle will shorten to about 3 months. This
will put a great pressure on manufacturers to come up with new models and more
flexibility in delivery. For developing countries, this trend increasingly puts
pressure on manufacturers because they have to capture market information faster to
better respond to customer requirements. Facing the complicated development of
covid 19 globally, the partners stopped importing goods, the manufactured goods
had to be stored, so the company had to narrow the scope of operations for a while.
Enterprises rarely receive new orders but only complete orders before the Lunar
New Year, however this number is not much. While the whole country is
implementing social isolation, production cannot be concentrated in factories as
before, but must be brought to families of workers to do.
Since the complicated translation of COVID-19 took place, it was also the
time for domestic and foreign partners to request production facilities to suspend
production and delay contract performance.
However, during that difficult time, the company still maintained its
operation and diligently created new models, applied material improvement
technology, built market development direction, prepared conditions for recovery.
back into production when the disease passes. develop a strategy for reorganizing
management methods, retraining human resources to adapt to the new situation.
2.2.2.3. Others
 Exchange rate
Choosing any exchange rate system is always a conundrum for all
countries. Reality has proven it is a profession. Historically, many countries have
succeeded in choosing an appropriate exchange rate regime. Besides, non-Italian

countries have to pay a high price for the wrong choice of gas exchange rate regime.
In order to have an exchange rate policy suitable to the market economy to help
stabilize the economy, the Prime Minister has allowed the application of a floating
exchange rate system under management of country. This is a correct policy, in
accordance with the conditions and circumstances of Vietnam in the process of
macroeconomic innovation that allows us to implement an independent monetary
policy while complying with the law of market supply and demand. while
promoting the role of the State's flexible management and regulation in order to
achieve the economic development goals and requirements. With this policy, the
State Bank of Vietnam (SBV) has coordinated with other ministries in the economic
sector such as the Ministry of Finance - Ministry of Trade - Department of Planning
& Investment in policy making as well as law enforcement. In the process of
implementing the exchange rate policy, the State Bank has changing the way of
foreign currency management, renewing the exchange rate management mechanism
and mechanism towards Replacing administrative measures, forcing state-owned
economic units with foreign currencies to sell to the Bank at a stable exchange rate
by economic measures such as: opening a foreign currency transaction center for
businesses and banks to exchange and buy and sell foreign currencies with each
other as agreed.
Vietnam is a direct intervention mechanism by fixing the official
exchange rate with the transaction amplitude at the corresponding time up to + 10%,
since February 25, 1999, the State Bank of Vietnam has announced 2 decisions:
Decision No. 64/1999 / QD - NHNN on the announcement of the exchange
rate of VND with foreign currencies
Decision No. 6/1999 / QD - NHNN on the principles of price determination
foreign currency trading by organizations licensed to trade foreign currencies.
On February 26, 1999, the State Bank only announced the average exchange
rate covering the average real exchange rate on the interbank foreign currency
market (TTNTLN) of the previous transaction date. On that basis, commercial

banks allowed to trade foreign currencies shall determine the spot exchange rate of
buying and selling foreign currencies not exceeding 0.1% of this rate.
This adjustment of exchange rate python enhances the competitiveness of
Vietnamese exports, reducing the balance of VND against USD, moving billions of
families to an equilibrium state.
Thanks to the exchange rate adjustment mechanism, the exchange rate
situation in Vietnam is very stable, not fluctuating many times, the exchange rate of
VND and USD fluctuates in the range of 14, 000-14, 014 đ/1 USD.
 The influence of the world socio-economic situation.
In the condition that each country relies on its advantages as well as the
world consumption market to organize production and export, the connectivity and
dependence between countries is increasing. Because of this, each fluctuation of the
socio-economic situation in foreign countries has certain effects on domestic
economic activities. The field of export activity is a field of direct relations with
foreign actors, influenced and influenced by foreign factors, so it is even more
sensitive. Any change in export policy, inflation, unemployment or economic
recession growth ... of other countries will affect the export performance of
exporting enterprises in our country.

CHAPTER 3: SOME RECOMMENDATIONS TO IMPROVE EFFICIENCY

OF BUSINESS ACTIVITIES IN GLOVIMEX COMPANY LIMITED
3.1. Exploiting untapped areas and promoting core products

In recent years, Glovimex has built a certain foothold in international
markets in general as well as potential markets in particular. According to recent
researches, bamboo and rattan export markets of Vietnam are mainly: the United
States, Japan, Germany, Russia, France, and the UK. turnover of 11.9 million USD,
accounting for 22.1% of market share. Japan is seen as a potential market for
exporters in general and is also the primary focus that should be focused on in the
market development strategy of glovimex company.
Among Vietnam's handicraft products exported to the Japanese market,
ceramics, wooden furniture and bamboo and rattan products are the main export
items. In the first three months of the year, Japan imported US $ 8.5 million of
bamboo and rattan products from Vietnam.
In order to conquer the Japanese market, a very potential and difficult
market, businesses must understand the Japanese consumer tastes.
In the process of surveying the business experience of a number of
Vietnamese enterprises (enterprises) with Japan, many enterprises have the same
opinion: “Understanding consumer tastes and Japanese culture is the top priority
because doing business successfully with Japan is doing business with all the other
fastidious partners”.
Japanese consumer tastes
The proportion of elderly people in Japan is increasing rapidly. If in 1970,
people aged 15 accounted for nearly 25%, until now only approximately 14%.
Meanwhile, those between 15 and 65 and over 65 are growing very rapidly. It is the
growth rate of the "old population" that has affected many aspects of social life,
especially the shopping habits of the Japanese. Therefore, the Japanese are now
more careful, preferring products with high sophistication, and strict in quality of
goods.

According to many businesses to create business relationship with Japan,

it is necessary to ensure four basic factors: quality, product hygiene, packaging and
standard of goods transportation. But, this does not mean trying to create quality
products that exceed the required requirements, so will increase the cost of the
product.
While the Japanese are very careful in measuring the prices with the
product features they want. When dealing with any partner, the Japanese not only
pay attention to quality but also pay special attention to price. That is why countries
with price competitiveness like China are so dominant in the Japanese market. The
reason why Japanese people, especially housewives pay special attention to change
price changes as well as product designs are due to the fact that many women do not
have to work, they have a lot of time to pay attention to this issue, so every small
change they are sensitive to grasp. Despite the increasing raw material prices, we
always try to preserve the old prices and product quality so that the corporation can
continue to exist in this market.
Seasonality and product diversity
Another interesting thing is that the consumer demand and tastes of
Japanese people are very "seasonal". Meanwhile, over 50% of Vietnamese
enterprises who have done business with Japan do not know this consumer practice.
With most types and colors of goods, the Japanese choose according to
the season, so when exporting to Japan, businesses should focus on regularly
changing product categories, features and colors.
In addition, Japanese people also like to choose many designs in the
same category to choose the best product, requiring a foreign enterprise when
exporting to Japan needs to show diversity in products. Therefore, for products,
with a line of designs, businesses want to export to we rush to build a new model
Japan after each shipment.
Currently, over 50% of Japanese prefer to buy at small stores called
"Mom and Pob", which only sell domestically. Meanwhile, foreign goods exported
to Japan are located in large department stores, full of famous brands in the world.

Therefore, introducing a typical product with a Vietnamese brand is the most

important thing, avoiding the situation of "clash" in the product lines which is not a
strength.
Therefore, Glovimex needs to meet the following specific requirements:
Firstly, to meet the expectations of the Japanese market including
Japanese consumers and Japanese importers of bamboo and rattan products.
For consumers: to meet the requirements of product quality, color, design and
use value, artistic value, traditional value.
For importers: As Japanese consumers plus on-time delivery.
Secondly, managing the supply activities Researching and selecting
suppliers of craft villages, cooperatives, and households producing bamboo and
rattan products) to meet the product requirements accepted by the Japanese. Study
supplier constraints and participate in remediation together.
Third, actively researching and searching markets for products by
penetrating the actual market through trade promotion programs, supporting to
introduce products and searching for appropriate distribution intermediaries.
Determination of distribution through importers who are intermediaries.
Fourth, implementing the motto of competition by quality, the desired
suitability from the value of use, not price competition with Chinese products.
Build a penetration marketing plan
 Product :
• For the time being, focus only on products that have been accepted by the
Japanese market.
• Only focus on products suitable for the use of Japanese climates and spaces.
• Only select products that meet the standards of Japanese concern: Quality,
materials used, elegant natural colors, handcrafted products with traditional values.
 Promotion

• Actively participate in fairs, trade promotion programs in Japan to introduce

products and seek partners, as well as observe and learn more about the Japanese
market.
• Enlist the support of Japanese consultancy and promotion organizations to
approach reputable importers.
Besides, product factor is also an important factor in the strategy to
penetrate the Japanese market:
The focus of the Glovimex bamboo and rattan product strategy should
focus on the quality and design of goods because Japanese customers require very
high in this aspect, they are very difficult with strict regulations for quality. quantity,
design, label. On the other hand, for the price and quality to match with each other
because Japanese people are not price sensitive customers but they prefer
reasonable prices. Meanwhile, lowering the company's price is very difficult
Product quality is an important competitive tool of the company. Currently, due to
many different reasons, the quality of the company's products is not high.
In fact, the Glovimex Limited Company is also aware that at present, the
company's price competition for bamboo and rattan products is ineffective because
Japanese people do not need to buy cheap goods. What they need is reasonable
prices in relation to product quality, plus the current efforts of the Glovimex Limited
Company in particular and companies in the industry in general.
Entering a difficult market requires product quality to be really good,

meeting not only quality but also application of the product. In fact, glovimex's core
product that is able to compete with its competitors and gain a foothold in the
Japanese market are handcrafted bamboo decorative products.
Decorative bamboo and Rattan hanmade products are becoming more

and more common in fashion industry. They come in a variety of styles, shapes and
sizes so there are plenty of options to choose from regardless of the décor of style.

It can often last longer than furniture made with leather or wood. They are not only
eco-friendly but also trendy.
3.2. Building a strong marketing strategy
From the point of view of modern marketing, the implementation of a

marketing strategy will both provide added value to customers and help the business
achieve its goals. Modern marketing theory states that, when customers choose, the
decision to buy is not simply buying the pure material they decide, they trust, they
are loyal to a product or a brand, that because they want to receive more added
value from the business with the same amount of equal satisfaction. The added
value that a business provides to customers is the difference between the total value
the customer receives and the total cost that the customer pays.
The total value that customers receive is all the benefits that customers receive
from the purchase and consumption of products and services that the enterprise
provides: value of products or services, value of human resources, price image
treatment. The total cost that customers expect to spend includes: money, time,
energy, psychology.
3.2.1. The content of implementing export marketing strategy
 Market analysis
There are many reasons, motivations for businesses, industries to export to the
world market, as follows:
Firstly, taking advantage of the comparative advantage in international trade
The theory of comparative advantage shows that different countries have

different labor productivity due to their natural, socio-economic, specialization, and

faculty qualifications. learn different techniques. Therefore, countries all have their
own advantages and disadvantages in the creation of goods or services. Through
exchanges, it is possible to promote advantages, limit disadvantages and thereby,
improve the economic efficiency of the country.
Second, seeking new markets, expanding consumption markets
Currently, Vietnam has the potential to develop the production of rattan and
bamboo products, but the purchasing power of the domestic market is limited, so it
can inhibit production. This situation can be overcome if Vietnam finds an export
market. On the one hand, it promotes development of production, on the other hand
improves the worker's life and solves a series of other production problems. In
addition, the level of competition in domestic markets has become increasingly
fierce, forcing businesses to always look for new markets and expand markets.
However, due to the heterogeneous level of competition in regions and countries
dominated by many factors, in business activities, enterprises on the one hand must
find all measures to improve the competitiveness of their products. enterprises'
reputation and reputation, on the other hand, look for potential markets, new
markets in order to avoid competitiveness in the existing market.
Third, exploiting the advantages of the product life cycle
The lifespan of a product is often different in different markets and countries.

Therefore, a product in this market has been in a relaxed stage, preparing to be
rejected, but when it moves to a new market, the product has a chance to grow.
Fourth, the handicraft industry has a great impact on the economy and
society, especially in poverty reduction and rural development.
This category has a large contribution to income generation in rural areas,

helping to narrow the gap in living standards between rural and urban areas. The
handicraft industry accounts for about 20% of Vietnam's total export revenue. Thus,

it can be seen that there are many goals when exporting a commodity to the world
market, depending on the characteristics of each industry, each enterprise has
different options.
 Select target market
The company see Japan as a potential market in the coming period. Therefore,
the budget and human resources will be given priority to focus on exporting to
Japan. With the goal of finding a certain place for your business in the next 2 years.
 Implementing mixed marketing strategy for export products
On the basis of shaping marketing strategy development goals for export

products, the enterprises continue to develop mixed marketing strategies. This is
considered as a central strategy, playing an important role in developing a marketing
strategy for export products. The implementation of a mixed marketing strategy for
export products includes the following activities:
− Implementing export product strategy
To attack foreign markets, 3 out of 5 related strategies are needed: product

standardization, product adaptation and product innovation ( Johny K. Johansson
(1999), [106] Product standardization: Demonstrating the homogeneity of physical
factors such as size, weight, color, packaging, etc. This is considered to be effective
and cost-effective but suitable for large companies and multinational operations
Product innovation: This shows the need for enterprises to constantly improve
both the quality and design of their products in accordance with different stages in
the product's life cycle. This usually costs a lot for businesses, especially for
businesses that need to improve but still have to maintain the distinctive traditional
elements in the product. If the product innovation does not take away that

competitive factor, this is a viable and long-term solution that businesses should
consider in their product development strategy.
Product preference: In addition to constantly improving and innovating

products and meeting standards acceptable to the market, businesses must also take
into account the preference of their products when approaching other export
markets. together . If it is not too expensive to approach a new mayor, it will be a
great advantage for businesses to minimize initial costs. For businesses, this needs
to be calculated more carefully before forming a product strategy view to avoid
unnecessary costs.
− Implementing price strategy for export products
Price is an important competitive tool of any exporting business. Enterprises

can determine the selling price of products by many different methods and choose
different strategies. However, most businesses often rely on production costs to set
prices for importers or add circulation costs to set prices for end consumers. It is not
easy to have a competitive pricing strategy that both benefits customers and ensures
profits for businesses, especially for businesses that are still limited in many aspects
today. Cost-based pricing is sometimes not appropriate, even reducing the product's
competitiveness. Therefore, businesses need to consider pricing based on
competitors, customers' psychology or the specificity and difference of products in
the target market.
− Deploying distribution strategy for export products
The first thing that an exporting enterprise usually does when making
decisions regarding the distribution of products to foreign markets is to define the
characteristics of the customer. consumption (commercial intermediary or end
consumer). In fact, every business wants to have a short distribution channel to
minimize circulation costs as well as promptly update the change in consumer

demand of customers as soon as possible. However, for handicrafts, after being

shipped, to end consumers in foreign countries, they have to go through a lot of
intermediaries. The participation of commercial intermediaries, besides facilitating
the sale of products for businesses, also makes the company's products closer to
consumers and more stable, especially in regions where Infrastructure is still
limited. Currently, it is common for businesses to be small, so one of the appropriate
approaches is to choose one or several export middlemen with the ability,
experience and knowledge of the consumer market Finally, through this
intermediary, it is possible to reach target customers. Enterprises can consider a
number of forms of organizations participating in export channels in countries of
consumption such as looking for direct or indirect market representatives in those
countries or combining with partners to use. same distribution channel, if the
product of the business and the partner's product can complement each other and
also meet the needs of the target customer group.
− Implementing Communication Strategy and Export Promotion
In addition to understanding what the nature of communication is, businesses

need to answer any questions related to developing their communication strategy
when implementing their strategy. This requires businesses to link together and
combine with programs implemented from the government to bring more efficiency.
Even businesses have to consider hiring international media companies, not simply
like the media in the domestic market, the position the media wants to influence is
foreigners with many differences in culture. preferences and consumption behaviors
that businesses do not fully understand
− Brand strategy implementation for export products
Brand name is a collection of perceptions of customers about a company, a

product or service with all aspects: brand identities, brand values, brand attributes,
brand personality, the brand that is tied to consumers through brand - consumer

relationship). In terms of brand identity as a name or sign that identifies a product, a

successful brand marks a product as having a sustainable competitive advantage.
Louis Vuiton, GUCCI, Dove, Tide ... are typical examples of product branding,
Product branding is an intangible ingredient but an essential component of a
business. Once the products have reached levels that are almost indistinguishable by
their properties, characteristics and utility benefits, the brand is the only factor that
distinguishes the products the brand speaks for. Trust and safety, Building a brand
requires a lot of effort and investment over the years. But when there is a famous
brand, brand management (brand management) also requires no less effort and
resources Many businesses are somewhat fortunate in the branding process, or due
to a sense of importance. the brand's inadequate level, underestimated the
management of the intangible assets, leading to the brand's rapidly deteriorating in
value. Brand strategy is one of the important components in product strategy in
particular and marketing strategy in general. Evaluation and positioning of existing
brand Decisions related to brand strategy must start from the export of rattan and
bamboo enterprises must evaluate the existing brand position clearly in the mind of
target customers at three levels: the first level is through product attributes; the
second level is that brands are better positioned through the association of the name
to the benefit of expecting from the product; The third level is the brand positioned
best through the beliefs, values and emotions brought to the customer. Rattan and
bamboo exporting enterprises need to correctly identify their brands of products at
the brain level in order to choose a suitable brand strategy.
• Choosing the brand sponsor
The rattan and bamboo enterprise for export depends on its ability and
resources to choose one of the sponsors such as: being sponsored by the bamboo
and rattan enterprise selling to the house distribution; Rattan and bamboo
enterprises can buy copyrighted brands, and rattan and bamboo enterprises can also
associate with organizations, trade intermediaries and co-sponsors of trademarks.

• Choosing brand name
Brand name always plays an important role in the success of the business.
However, the development and selection of a brand name always makes businesses
face many difficulties. To be successful, the branding for the product and for the
business must start from carefully considering the special interest of the product, the
different benefits of the product, the target market. and marketing tools for export.
Enterprises of rattan and bamboo for export can think of developing specific brands
for the products produced by the rattan and bamboo enterprises or can also think
about building and developing a common brand name for handcrafted products and
even a unique combination of a business name.
− Implement sales, customer service and relationship marketing strategies
The sales and customer relationship marketing strategy is mainly oriented

towards the sales representatives for the business. Developing enterprise export
sales force: Sales person must be identified as a direct bridge between the business
and customers, as the representative for the business to create and nurture customers
Sales force is to bring to the business important intelligence information obtained
from customers and competitors. In order to achieve this, the company needs to first
think about developing its organizational structure such as: developing goals. sales
perspective, export sales development; develop the structure, scale and quantity of
export goods; Development of budget and remuneration for export sales ...
Developing strategic decisions in sales force management: To do this, the company
need to recruit sales representatives, coaching and motivating also has a method of
evaluating them during implementation. Salespeople also need to be trained in sales
skills, art of selling, identifying visitors frequency of visits, civilized selling
standards, and making effective use of their time.
Developing customer service and relationship marketing strategies:

In business, managers are well aware that the customer is the person who
fosters the business, help businesses survive and develop. Therefore, in this strategy,
the enterprise tries to build and develop sustainable and mutually beneficial
relationships with large customers, distributors and agents by strong physical and
social relationships. The end result is the formation of a large asset block for the
business, which is the marketing network. This network encompasses the business,
its suppliers, distribution intermediaries and its customers through strong, trusting
relationships. When the network is large enough in size and tight enough to tie the
profits, profits will flow back to the business.
 Organizing resources to implement marketing strategies for export products
Marketing organization in enterprise:
In enterprise, if a marketing organization is formed, arranged and organized

properly, creating conditions for marketing staff. By promoting the ability, all
marketing plans will be carried out smoothly, the likelihood of success will be high.
Basically, the types of marketing organizations in an export bamboo and rattan
enterprise include: by function, by geography, by market, or by mixed organization.
The choice of organization form depends much on the views of the leaders of rattan
and bamboo export enterprises.
Human resources marketing
Human resources for marketing play an important role in the success of each
strategy. If the craftsmen with skillful hands and constant creativity to create
sophisticated products that contain the cultural province of the nation, the marketers
will help present this product. Throughout the five continents, Marketing Human
Resources needs to be trained and updated in marketing skills regularly and
continuously.
Marketing budget:

The marketing budget should be optimally allocated to target markets, based

on market size, marketing medium and frequency, identity or identity required,
products New products being introduced and marketing growth targets. The
marketing budgets of exporting bamboo and rattan enterprises can be planned from
top-down or bottom-up methods. Marketing Information System: Marketing
Information System includes people, machinery and equipment used. to collect,
classify and process information and deliver reliable, meaningful numbers for
business executives to get accurate marketing decisions in a timely manner.
 Examining and evaluating the implementation of the export marketing strategy
In the process of developing a marketing strategy for export products, a solar

enterprise should conduct regular and continuous inspection and evaluation. the
necessary jobs of any activity to help this person know the achieved results
compared to the set target, and thereby also find out the cause of the problems faced
by the business, The company can check the marketing strategy for export products
oriented to the target market or not, the feasibility of the task, test the marketing
objectives and targets, measure the results, test suitability of marketing objectives
with firm's competitive position, resources and opportunities, check the clarity and
convincing level of export marketing strategy, suitability of the strategy to stages
different segments in the product's life cycle
3.3. . Improving customer service
Currently, the company sells mainly through the Alibaba e-commerce site,
so a customer care policy before and after sales is very important in developing
customer files as well as maintaining relationships with customers.
Customer care after sales or after-sales service (remarketing) are activities

that take place after a sale. These activities take place after the customer has
purchased or used the services of the business with the aim of ensuring final

customer satisfaction, retaining the customer and increasing the ability of the
customer to buy back.
After-sales customer care - Remarketing is the different activities to ensure

that customers are as satisfied as possible with the products and services of the
business, thereby stimulating acquisition and promoting the brand. Remarketing is
an important stage of the sales process and cannot be ignored.
Why need customer care after sales?
 Increase sales: After-sales customer care will create a large number of loyal
customers by pleasing them and the possibility of redemption is huge. The value of
this group of customers to the business cannot be denied. That's why the saying
"keeping old customers is more important than having new customers".
 Brand promotion: When a customer has been satisfied with the company's products
and services for a long time, they will talk well about that brand to those around
him, thereby promoting the brand of the business. more widely.
 Better Customer Relationship: A thank you email for a purchase or a happy birthday
message is enough for a relationship between the customer and the business to
become close. Maintaining a sustainable and long-term relationship with customers
is something every business wants to achieve.
The secret to effective customer retention
Easy to say, but very difficult to do. Start with the smallest things is to
keep and track customer information such as customer details, especially phone
number, email, date of birth, customer transaction documents. Here are a few tips
for effective after-sales customer care:
 Customer satisfaction survey

There should be a separate section on the website of the business so that

customers can submit their reviews and comments.
Build a dedicated mobile phone number for customer care, where customers
can call and answer questions so that they can find out customers' attitudes towards
products and services.
Send an automatic email to customers each time they complete a purchase so

that customers can leave feedback on products or services they just bought.
 Comply with commitments
The sales team, marketing often tend to "overstate" about the features and
quality of the product to be able to sell. This is completely not good at all. Always
make sure that the products you sell are exactly what your customers promise you.
These commitments include all issues related to product quality, service quality,
warranty policy, and return of goods. This is the source of a good relationship
between customers and businesses.
 Show gratitude to customers
“Thank you very much for using our service"
"Thank you for purchasing our products"
"Thank you for believing in our products" ...
The sentences seem simple but will bring effective after-sales that you did not
expect here. Or more simply, just a message of thank you to customers enough to
see that you truly respect and care for them. And if you want to take care of your
customers more, find yourself a customer care system where you can send thank
you messages, birthday email messages and so on automatically but still contain
your interest to your customers.

 Stay in touch and never forget the customer
After a long sales period, get back in touch with your customer and find out
about the usage status of the product or service you have sold to them. Resolve all
the problems they encounter, if any, to make sure they are comfortable using them.
And make sure you don't ignore any customer calls, texts or emails.
 Incentives for loyal customers There should be incentives, promotional products for
longtime customers or perhaps a small gift to them to feel that their loyalty is
valuable. That must be a reward for loyalty.
We can refer to some strategies for building incentives and promotions with:
• Earning points and classifying customers on the system
• Membership card program, loyal customers
• Manage promotions and offers
 Help customers to solve problems
Whether you wish your birthday a hundred times or send dozens of gifts and
the customer's problems are not resolved, everything will become meaningless.
Sometimes your customers will have complaints, frustrations or even anger, so
quickly soothe them.
"Very sorry about the problem you have, we will forward it to the technical
department now"
"Please don't worry, we can solve this problem."
"We would be more than happy to exchange for you another similar product
with a better quality"

Absolutely avoid the argument with customers that give customers a feeling of
comfort as possible.
3.4. Recommendation policies to facilitate export activities
In addition to the tax benefits from free trade agreements, the bamboo
and rattan export industry also has great potential thanks to high world demand.
However, there are still many barriers that make it difficult for this industry to rise
in the near future.
In recent years, in order to promote all economic sectors to develop, the

National Assembly and the Government have issued a number of legal documents
with many supportive policies for rural occupations, including industry crafts
The State encourages, creates favorable conditions and supports rural

trade promotion establishments in accordance with the current provisions of the
National Trade Promotion Program.
The State organizes related trade promotion activities to support rural

business establishments, including: Building a website to introduce products and
sell goods online; Designing product models, packaging; Branding, geographical
indication of origin of goods, trademark ownership protection; Vietnam Handicraft
Products Contest. Rural establishments participating in trade promotion activities
specified in this Decree are supported by the state budget: Expenses for hiring
consultants and direct support for rural business establishments. The maximum
level of support is 50% of the cost, but not more than 50 million VND / facility.
Support 100% of the cost: Rent a product demonstration space; organize contests;
accommodation, travel.
Science and technology: The rural industries in general, the handicrafts in

particular have the drawback of slow innovation in product designs, low quality,
diverse adaptability to gas environments. low end. Accordingly, the issue of

bringing science and technology into production to overcome the shortcomings is

essential in order to increase competitiveness in domestic and foreign markets,
especially when Vietnam is a member of many trade agreements. new generation.
Decree 152 stipulates quite specifically the support policy on science and
technology for rural occupations, specifically as follows:
Rural industry establishments, when implementing activities of applying

scientific and technological results, innovating technologies, producing new
products and performing science and technology services or receiving scientific
progress Learning techniques from domestic and foreign organizations and
individuals will enjoy preferences according to policies and financial mechanisms
that encourage enterprises to invest in scientific, technological, agricultural and
rural activities.
Rural industry establishments conduct research projects independently or

coordinate with scientific research institutions to create new technologies, perfect
research products with commercialization in the agricultural sector. The village is
supported by the State with funding from the funding for the cause of science and
technology according to the current regulations.
Law to support small and medium enterprises
The law provides for the principles, content, and resources to support
small and medium enterprises; Responsibilities of agencies, organizations and
individuals related to SME support Enterprises established, organized and operated
in accordance with the law on enterprises, meeting defined criteria SMEs in
accordance with this Law and agencies, organizations and individuals involved in
assisting SMEs.
As can be seen, for the handicraft industry, only establishments producing

and exporting handicraft products are established, organized and operated under the

Enterprise Law, meeting the criteria. specified in the Law on support for small and
medium-sized enterprises to enjoy the support policies of the Law.
Support policies are specified in the Law
Regarding credit access support: In each period, the Government decided

to support policies to support credit institutions to increase outstanding loans for
small and medium enterprises; encourage credit institutions to provide loans to
small and medium-sized enterprises based on their credit rating and other suitable
measures; encourage the establishment of an independent advisory organization to
give credit rating to small and medium-sized enterprises; Get support from
agencies, organizations and individuals to develop feasible production and business
plans, enhance corporate governance, management skills and financial transparency
to improve accessibility Credit; To be provided with a credit guarantee at the Small
and Medium Enterprise Credit Guarantee Fund in accordance with Article 9 of this
Law.
The small and medium enterprise credit guarantee fund is an off-budget

state financial fund, operating not for profit, established by the People's Committee
of the province; Performing the function of providing credit guarantees for small
and medium enterprises; Based on collateral or feasible production or business plan
or credit rating of small and medium enterprises; To properly and fully comply with
the committed guarantee obligations; may not refuse to sponsor small and medium-
sized businesses to sponsor. Tax and accounting support: Small and medium-sized
enterprises are allowed to apply for a limited time the corporate income tax rate
lower than the normal tax rate applicable to enterprises according to the provisions
of the law on corporate income tax.
Tax and accounting support: Small and medium-sized enterprises are

allowed to apply for a limited time the corporate income tax rate lower than the
normal tax rate applicable to enterprises according to the provisions of the law on

corporate income tax. ; Micro enterprises are allowed to apply simple tax
administrative procedures and accounting regimes according to the provisions of the
law on tax and accounting.
Support for production premises: Based on the actual land fund

conditions in the locality, the People's Committee of the province shall submit to the
People's Council of the same level for decision on the allocation of the land fund to
form and develop the industrial cluster; Concentrated area for processing
agricultural, forestry, aquatic and marine products for small and medium-sized
enterprises in accordance with the approved land use planning; Based on local
budget conditions, the People's Committees of provinces shall submit to the
People's Councils of the same level the decision to subsidize the rent for small and
medium enterprises in industrial parks, hi-tech parks, and public clusters. industry
in the area. The maximum support period is 05 years from the date of signing the
lease contract; The support for ground rent for small and medium-sized enterprises
specified in Clause 2 of this Article shall be done through price compensation for
investors in infrastructure of industrial parks, hi-tech parks or industrial clusters to
reduce prices for renting the premises for small and medium enterprises. The price
compensation amount is subtracted from the land rent amount or supported from the
local budget; The support for production premises specified in this Article does not
apply to small and medium-sized foreign-invested enterprises, small and medium-
sized enterprises with state capital.
Technology support; Support for incubators, technical establishments,

and co-working areas: The State adopts a policy to support small and medium-sized
enterprises in researching, renewing technologies, receiving, improving, perfecting
and mastering technologies. through research, training, consulting, search,
decoding, technology transfer and the establishment, exploitation, management,
protection and development of corporate intellectual property; Ministries,
ministerial-level agencies, and provincial-level People's Committees establish or

participate in the establishment of public-private partnerships at incubators,

technical establishments, and working areas. Other enterprises and investment and
business organizations may set up incubators, technical establishments and co-
working areas; Incubators, technical establishments and co-working areas are
entitled to: Exemption or reduction of land rent, land use levy, and non-agricultural
land use tax in accordance with the law; Exemption or reduction Definite term
corporate income tax in accordance with the law on corporate income tax.
Support for market expansion: Ministries, ministerial-level agencies,

provincial People's Committees establish or participate in establishing product
distribution chains in the form of public-private partnerships. Other businesses and
investment and business organizations may set up product distribution chains;
Enterprises and organizations investing in and trading in product distribution chains
with at least 80% of small and medium-sized enterprises participating in the supply
of the chain of products manufactured in Vietnam are entitled to the following
supports: Exemption or reduction land rent, land use levy, non-agricultural land use
tax in accordance with the law, and exemption or reduction of corporate income tax
for a definite period in accordance with the law on corporate income tax; Micro
enterprises and small enterprises are entitled to incentives in the selection of
contractors in accordance with the bidding law.
Legal, advisory and information assistance: The following information is

published on the National Small and Medium Enterprise Support Portal, websites of
ministries, ministerial-level agencies, and People's Committees Provincial people,
social organizations, socio-professional organizations: Information on plans,
programs, projects, and activities to support small and medium-sized enterprises,
business guidance information; information on credit, market, products, technology,
business incubation; other information according to the needs of the enterprise in
accordance with the provisions of law.

Ministries and ministerial-level agencies shall, within the scope of their

duties and powers, build a network of organizations and individuals that provide
consultancy services to small and medium enterprises (called a network of
consultants). Small and medium-sized enterprises are exempted or reduced
consulting costs when using consulting services belonging to the network of
consultants. Ministries, ministerial-level agencies, agencies and organizations,
within the scope of their respective tasks and powers, carry out activities to provide
legal support to SMEs such as: Construction, management and maintenance
maintain, update, exploit and use legal database; develop and organize the
implementation of legal assistance programs to provide information, foster legal
knowledge, legal advice.
Support for human resource development: Small and medium-sized

enterprises are exempted from and reduced costs to participate in training courses
using the state budget on business start-up and corporate governance, vocational
training for employees. jobs in small and medium enterprises; The State organizes
the implementation of online training programs, training programs on other mass
media for small and medium enterprises; support direct training activities at small
and medium enterprises in the field of manufacturing and processing.
Support for small and medium-sized enterprises converting from

business households: Small and medium-sized enterprises converting from business
households are supported if they meet the following conditions: Before establishing
a business, a registered household business and operate in accordance with the law;
A business household has been engaged in continuous production and business
activities for at least 1 year up to the date of being granted the first enterprise
registration certificate.
Support for small and medium-sized creative startups if they meet the
following conditions: Having an operation period of no more than 5 years from the
date of being granted the first business registration certificate; No public offering of
securities for joint stock companies ...

Investments in small and medium-sized innovative startups: Investors for

small and medium-sized innovative start-ups including innovative startup
investment funds, domestic and foreign organizations and individuals conducting
activities do business through capital contribution to the establishment, purchase of
shares, capital contribution of small and medium-sized innovative start-ups.
Support for small and medium enterprises to join industry clusters and
value chains in the manufacturing and processing sector will be supported if they
meet one of the following conditions: Creating products with a competitive
advantage in quality and price; Innovating technological processes, materials,
components, machines and equipment.

CONCLUSION
Good export activities bring huge benefits to exporters. Being in the exporting
industry, Glovimex has always understood the importance of marketing efficiency
in its development process. In recent years, the company always pays attention on
improving the efficiency of marketing management, human resources management
and customer services. However, besides achievements, the company still has some
limitations in the exporting activities. Deriving from the actual situation in the
company and the knowledge learning from university, I made the research on the
application of expoting activities at the company. Thereby, I boldly proposed some
solutions to improve the efficiency of Exporting Activities at Glovimex Limited
Company. However, improvement of business activities in Gloximex company
limited is a complex problem. It needs investigating deeply and approaching
realistically. So during internship and writing this essay, mistakes are unavoidable. I
look forward to receiving valuable contribution from the lecturers and other readers.

REFERENCE
1. Kotler, Philip. (1987). Marketing — An Introduction. Englewood Cliffs, NJ:

Prentice-Hall.
2. Wernerfelt, B. (1989). "From critical resources to corporate strategy." Journal of
general management
3. Van Manen, M. (1990). "Researching lived experiences." State University of New
York Press, Albany
4. Kaynak, E. and W. K.-y. Kuan (1993). "Environment, strategy, structure, and
performance in the context of export activity: an empirical study of Taiwanese
manufacturing firms." Journal of Business Research
5. https://vietnambiz.vn/xuat-khau-truc-tiep-direct-export-la-gi-thuan-loi-va-kho-
khan-20191202151546512.htm
6. https://news.timviec.com.vn/xuat-khau-la-gi-vai-tro-cua-hoat-dong-xuat-khau-
doi-voi-nen-kinh-te-55726.html
7. https://text.xemtailieu.com/tai-lieu/cac-phuong-thuc-xuat-khau-chu-yeu-tai-viet-
nam-thuc-trang-va-giai-phap-189618.html
8. http://6.https//dictionary.cambridge.org/vi/

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MINISTRY OF FINANCE

Student: ĐỖ THỊ NGỌC

Major : Faculty of foreign language

Hanoi, May 2021

Đỗ Thị Ngọc CQ55/51.05 2

The study researched the factors affecting business activities in Glovimex

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1. GDP: Gross Domestic Product

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LIST OF FIGURES AND TABLES

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1. Rationale of the study

2. Aim of the study

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3. Research question of the study

4. Methods of the study

5. Scope of the study

6. Organization of the study

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Chapter 2: Factors affecting to business activities in the company: The

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CHAPTER 1: THEORETICAL BACKGROUND OF EXPORT

1.1. Overview of export activity

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1.1.2. The role of export activity

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Commodity exports are in the circulation of goods. It is one of the stages of

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b. Export promotes economic restructuring, promotes production development

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Using currency as a means of payment is an important feature that contributes

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1.1.3.3. Counter – trade

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 Clearing arrangements: Two governments agree to purchase a certain volume of

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This is a factor not only affecting the export performance of enterprises

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business. Because the qualifications and ability of business management of the

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1.2. Overview of bamboo and rattan handicraft products export

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 Difficulties of Vietnam rattan and bamboo industry

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CHAPTER 2: FACTORS AFFECTING TO BUSINESS ACTIVITIES IN THE

2.1. General overview of business activities in Glovimex company

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 Company size: 11-50 employees

a. Function and Mission

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 The feature of Bamboo and Rattan products

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Figure 2.1: Organization of management of Glovimex company

The above diagram describes the current organization structure of

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