In recent years, the global cable industry has faced increased global competition, rapid

technological change and geopolitical instability. The global cable industry continues to grow
strongly, projected to grow 3-5% annually over the next five years. The key growth drivers
are urbanization and global infrastructure development. Increased investment in smart
upgrades, power transmission and distribution systems, and smart grid development will
actively drive market growth.

https://globalcio.com/articles/main/digitalization-of-business-processes-at-the-cable-
company-the-key-to-increasing-competitiveness/
CADIVI is a leading Vietnamese company in the field of electrical cable manufacturing,
operating with the slogan "Bringing light everywhere." The company's products hold a 90%
market share for household cables in the Southern region, 20% in the Northern region, and
70% in the Central region. Nationally, the company holds a 30% market share, with a
distribution network of 200 primary agents and 2,000 secondary agents, according to self-
reported dat
https://cadivi.vn/en/cadivi-company-is-listed-among-the-top-25-leading-brands-in-the-
personal-and-industrial-consumer-goods-company-category-as-voted-by-forbes-
vietnam-.html

Supplier
The supplier reflects the relationship between the supplier and the business in terms of
profitability, price increase or decrease, and quality of goods when conducting transactions. It
directly affects the price and quality of the company's products. The company will therefore
influence customer response. Suppliers can influence a business due to the dominance or
monopoly ability of a small number of suppliers.
For the electric wire and cable manufacturing industry, the raw materials used in the industry
cannot be met domestically, so companies often have to import them. Because of the
dependence on imported raw materials, price and quality greatly affect the strategic plans of
companies. When developing new product lines according to market needs, finding overseas
suppliers that meet the requirements is very difficult.

Customers
Customers are a competitive pressure that can directly affect the entire production and
business activities of the industry. In the market mechanism, customers are considered
"benefactors or merchants" and are inseparable in the competitive environment. They can
increase or decrease a business's profits by requiring higher product quality. at lower prices.
Suppliers all want to best satisfy customer needs, which is closely linked to the market share
rate that the business wins.

For the power array and cable industry, due to the typical nature of the products that are often
used in construction projects that transmit power from the state level to households, the
companies' target customers are also important. Particularly, such as State land units, public
enterprises, or electricians responsible for building and installing electricity transmission lines
in homes.

New entrants
As more businesses join the industry, it becomes more difficult for businesses to hold their
market share, leading to the danger of large competitors entering the industry. The appearance
of competitors will increase competition intensity and reduce profits in the industry. If
businesses have solutions to raise barriers to entering the industry, they will limit the risk of
potential competitors entering the industry. For the electric wire and cable manufacturing
industry, the barriers to entry are quite high. Due to product characteristics, raw materials
must be imported from abroad, which leads to large investment costs. In addition, businesses
want to add customers, usually businesses constructing large projects or state power units.
Spham thay thế
That is the pressure from new products and services that can satisfy needs equivalent to
products and services already available in the industry. The more similar the substitute
products are to the products of businesses in the industry, the greater the threat from substitute
products, limiting the sales volume and profits of businesses in the industry.
This and electric cable industries have important functions serving the needs of power
transmission nationwide. Products used for this purpose require strict standards and testing to
ensure safety. Therefore, the pressure from substitute products in the industry is not
significant
Đối thủ cạnh tranh
Competitors are a constant pressure and direct threat to the company. Businesses doing
business in the industry will compete directly with each other, creating pressure on the
industry, thereby generating competitive intensity. The more competition an existing
company has in the industry, the more it threatens the company's ability to profit, survive and
develop. Because this competition forces companies to increase investment costs to
differentiate products and services, access the market or reduce initial prices. Each competitor
wants and finds every way to meet the diverse demands of the market. They take full
advantage of their business's advantages, exploit their competitors' weaknesses, and take
advantage of quick opportunities to gain an advantage in the market.
Currently in the array and cable industry. Vietnam has typical large enterprises such as: LS
Vina, Tran Phu electromechanical, Cadivi, of which, Cadivi is the enterprise currently leading
the industry in terms of market share in the residential electrical wire market segment (90% of
the South). 30% Central region: 20% Northern region - according to Report of Bao Viet
Securities Joint Stock Company). Therefore, within the framework of this report, the author
will focus on analyzing Cadivi company to highlight the strengths that Thinh Phat needs to
promote, as well as the weaknesses compared to competitors so that Thinh Phat has a strategy.
suitable to help guide the long-term development path for this segment.
Strategy
In the upcoming development strategy, the Company aims to bring CADIVI from national
brands to international brands. In the period from 2020 to 2025, the Company will
approach and effectively use the mobilized capital sources to focus on investing,
developing and expanding production lines in the North and the Central; diversify types of
products to meet the fastest, the best needs of customers; maintaining traditional export
markets such as the US, Myanmar, and Cambodia ... and expanding export markets to
countries like Japan, Australia ...
https://cadivi.vn/en/cadivi-company-dynamic-to-further-development.html#:~:text=In%20the
%20period%20from%202020,customers%3B%20maintaining%20traditional%20export
%20markets

Mission: CADIVI is committed to providing the society and community with safe, saving
electricity, high quality and eco-friendly electrical cables and equipment.
* Vision: To be one of the leading electric wire and cable manufacturers in Southeast Asia.
https://cadivi.vn/en/mission-vision.html

In 2022, CADIVI continues to maintain the number one position in market share (2021-
2023), is a brand trusted by customers with a wide distribution agent system nationwide
(according to market survey results of the Association Enterprise of high quality Vietnamese
goods). The company also continued to be voted as Vietnam's National Brand for the 8th
consecutive time.

In 2023, CADIVI's Board of Directors assesses that the market will continue to have many
unpredictable fluctuations, so the Company sets a target of consolidated revenue of 12,079
billion VND, consolidated pre-tax profit of 450 billion VND, equal to 107% and 93%
respectively compared to implementation in 2022
With the underlying market, CADIVI determines to continue to maintain the market through a
dealer system with transparent sales regulations, increasing dealer interest with customer
conferences, focusing on traditional products. has a high proportion of revenue and profit. For
export markets, the Company advocates keeping traditional partners, growing revenue in
these markets, and at the same time looking for new partners and potential markets. In
production, the Company builds close links with manufacturing factories to process orders
quickly and operate the production process to provide full products to customers, with a good
balance between material supply and customer needs to reduce costs and increase production
efficiency.

The company proactively captures technology and materials information to update new
technology, improve features, lower product costs, and optimize product design, propose
research to improve and shorten product design. stages, reducing production costs, thereby
increasing competitiveness.

In addition, the Company also enhances the application and regular improvement of product
quality management and control systems; Attract and retain talent with appropriate
competition policies, building a team of highly capable and skilled personnel..

https://kinhtevadubao.vn/dhdcd-cadivi-thong-qua-muc-tieu-450-ty-dong-loi-nhuan-truoc-
thue-trong-nam-2023-26323.html
CADIVI always aims for stable growth over the years in both profit and market share
structure in the market. With the Company's core business activities of producing and trading
electric cables and electrical tools, the Company also takes advantage of opportunities to
cooperate in trading raw materials to help bring high profits, creating a foundation to support
the company. remanufacturing. Along with the orientation "Maintaining home ground to
reach out to others", the Company always strives to develop business and maintain market
share in the field of electric cable production in the domestic market and long-term
orientation, vision to 2030. , CADIVI will become one of the leading electric cable
manufacturers in the region. In addition, in addition to investment policies and business
development, CADIVI also focuses on sustainable development goals, investing in research
and development of energy saving and environmental protection products.

Throughout the process of operation and development, the Company always sets the central
goal of bringing quality products to customers, maximizing profits for shareholders and
ensuring benefits for the Company's employees. The company always researches, improves
and launches new diverse and effective products to meet the increasing needs of customers.
At the same time, CADIVI focuses on recruiting and training qualified human resources,
quality and industrial style to ensure effective production and business. The company also
implements economical production management policies, applies scientific and technical
innovations to improve operational efficiency, in addition to building a positive corporate
cultural environment and upholding the spirit of responsibility in social security work.
https://cadivi.vn/vn/cadivi-cong-bo-bao-cao-thuong-nien-nam-2022.html
CADIVI not only targets stable growth in profits and market share structure in the market, but
also strives to develop business and maintain market share in the field of electric cable
manufacturing in the domestic market. At the same time, the Company also takes advantage
of opportunities to cooperate in trading raw materials to bring high profits and create a
foundation to support remanufacturing work. With the orientation of "Maintaining home
ground to reach out to others", CADIVI is promoting development and expanding export
markets to become one of the leading
Leading electric cable manufacturer in the region.
In addition, CADIVI also focuses on investing in research and development of energy-saving
and environmentally friendly products, creating favorable conditions for consumers in
choosing products while aiming at industrial trends. green industry in the future. This is also
consistent with the Company's long-term development strategy, demonstrating CADIVI's
vision and commitment to environmental protection and sustainable development of the
community.

For customers
CADIVI operates with 3 mottos: "Good product quality is the foundation for the Company's
existence and development", "Satisfying the needs of customers".
Customer needs are CADIVI's goal" and "The benefits of customers and related parties are
also the benefits of CADIVI". Therefore, the company always focuses on developing and
innovating products with quality aimed at customer benefits and satisfaction.
For shareholders
Manage, use and invest capital effectively with the purpose of optimizing long-term benefits
of shareholders

For the environment, society and community

To achieve green development goals, CADIVI needs to balance three factors: economic,
social and environmental. Therefore, the Company always tries its best every day and
commits to fully fulfilling its responsibilities and obligations to the environment, community
and society, joining hands to contribute to building a good society and sustainable
development. Solid
For workers
y Establish a safe, cohesive and effective working environment.
y Attract and retain talented people with policies that are fair, competitive and consistent with
the Company's strategic direction.
y Personnel are assigned reasonable work, oriented and have clear development opportunities.
y Personnel are trained in professional expertise, working skills and administrative capacity to
improve the quality of human resources and increase employee performance.

Investment activities in general generate cash flow with an erratic increase and decrease from
2019 to 2022. In four years, cash flows from investing activities (CFI) were negative which
represents the business expanding its investment, because the business has to spend money to
increase capital investment abroad.. However, it can be seen that the investment cash flow in
2019 plummeted compared to other years, CADIVI INVESTS 2 MILLION USD
IMPLEMENTING SAP TOTAL ENTERPRISE RESOURCE PLANNING SOLUTION to
serve management and development strategy.

https://cadivi.vn/vn/cadivi-dau-tu-2-trieu-usd-trien-khai-giai-phap-hoach-dinh-tong-the-
nguon-luc-doanh-nghiep-sap.html

Cash flow from financing activities (CFF) experienced a fluctuated trend.

According to their original maturity, the loans can be divided into three categories: short-term,
medium-term, and long-term loans, with the latter making up about half of all loans. Loans of
a short or medium duration often have steady growth rates and little fluctuation in their
length. They aid in limiting credit and interest rate risks and guaranteeing TPBank's viability.
Furthermore, the quantity of long-term loans offered by TPBank has consistently grown over
time; for instance, the growth rate for 2022 is 40%, compared to 35% for 2022.