1.

Introduction

Case company Trung Nguyen

Trung Nguyen is a young coffee brand in Vietnam, just born in 1996. However,
Trung Nguyen has quickly built up a reputation and become a familiar name for
domestic and foriegn customers. In the early days, Trung Nguyen was just a small
coffee shop located in Buon Ma Thuot. After 10 years, Trung Nguyen has risen
strongly and has become a powerful corporation with 6 member companies: Trung
Nguyen Joint Stock Company, Trung Nguyen Instant Coffee Joint Stock
Company, Trung Nguyen Coffee Co., Ltd. Nguyen, G7 trading and service joint
stock company and Vietnam Global Gateway (VGG) joint venture company.
Trung Nguyen Group deals in the following main lines of business: production,
processing and trading of tea and coffee; franchise and modern distribution and
retail services. The group will also develop other diversified businesses in the
future.
As a leading enterprise in applying the franchise business model in Vietnam, Trung
Nguyen has a network of more than 1,000 franchised cafes stretching from North
to South. At the same time, Trung Nguyen's franchised coffee shops also appear in
8 countries such as: USA, Japan, Singapore, Thailand, China, Cambodia, Poland,
Ukraine. Trung Nguyen's coffee and instant coffee products are present in 43
countries around the world. Not stopping there, Trung Nguyen also continued to
build a chain of more than 1000 convenience stores and G&Mart distribution
centers nationwide.
According to the latest report by the end of 2013, there were 13,265,826,449 cups
of Trung Nguyen coffee sold, 60 countries around the world imported Trung
Nguyen coffee and 11 million/77 million Vietnamese households bought products
from this brand . This is really a respectable number for a young brand like Trung
Nguyen

Aim of the study

The study's goal is to examine the advantages and disadvantages that the Trung
Nguyen Coffee Company would face if it decides to pursue Korea as a possible
market. The research uses the PEST model, which will replicate the coffee
company's arrival into Korea, to accomplish the main goal. The research will
develop a business strategy based on the examination of the business environment
that will help the firm advance once it enters the Korea coffee industry
appropriately.

Based on the analysis of Vietnam's comparative advantages as well as the current

situation of Vietnam's choice of export goods to Korea in the past time, I find that
Vietnam's exports have achieved certain successes.Export turnover of goods from
Vietnam to Korea: In addition to the main export partners of Vietnam, after the last
10 years, Korea has emerged as a potential export market of Vietnam. The latest
customs statistics show that in the period from 2006 to 2016, bilateral trade
turnover between Vietnam and South Korea continuously achieved a positive
growth rate. As the fourth largest export market, Korea is always an important
trading partner of Vietnam, after China, the US and Japan. Thereby, it can be seen
that the selected products are increasingly bringing success to Vietnam's exports to
Korea.

Conclusion

SWOT model of Trung Nguyen company

Strengths Oppotunities

 Guaranteed organic offee  Korea is a potential market

 Ensure the require quality
assurance coffee due to self-
control in product supply form
model building experience
cofffee farm since 2014
 Business development potential
online business
 In the Asia region, the understanding
consumer culture will easier
 The geographical distance will help
save money,and save on transportation
and operating costs
 Between two countries there are many
free trade agreement
 High percentage of Internet users, data
at 96%, Naver and Daum are 2 search
engines main sword data
 Korea is not strong in growing coffee
and Viet Nam is a country that export
 a large amount of coffee in the world.

Weaknesses Threats

 Because it's organic coffee so the
selling price is still high, so not
many people choose
 The product's reputation in the
Vietnamese market is not
coverage and strong enough.
 The people have a high level of
ethnicity,prioritize using domestic
products
 Importers and consumers may not
know many kinds of coffee export
from Vietnam
 Consumers tend to drink cheap instant
coffees

The Trung Nguyen case was successful, and that much is certain. Trung Nguyen,
which started off as a modest business, quickly rose to become the most well-
known coffee brand in Vietnam. The PESTEL and SWOT model was used to get
a comprehensive image of the Vietnamese coffee market. It is clear that the
expansion of Trung Nguyen coffee both nationally and regionally was made
possible by the company's leadership, consumers, social dynamics, and legal
framework. Trung Nguyen must take into account several challenges, nevertheless,
if it wants to increase its size on a worldwide basis. It is a young, fledgling
business from a developing nation. Trung Nguyen coffee, however, is without a
doubt unique and may be used as a competitive advantage when entering the
worldwide market in general and Korea in more detail.

REFERENCES

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3, 2023).

Phan, T.H. and Jeong, J.Y. (1970) An analysis of Korea-Vietnam Bilateral Trade Relation,
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