Considered company goals and business strategies to create key decision factors for assessing potential investment opportunities. Then conducted market research to leverage different location's competitive advantages and presented overall findings.
2. Table of contents
III - Our Vision
XI - Markets Challenges
IV - Road Map
XII - Domestic Market Consumption
V - Bilateral Relations
XIII - International Market Consumption
VI - Bilateral Relations II XIV -
Final Results
VII - Logistics Performance XV -
Bibliography
VIII - Logistics 2
3. Our Vision
We have a goal of maximizing a new investment with a
long term strategy by importing meats into Vietnam and
exporting seafood.
- There are very strong U.S. Vietnam agricultural relations and a need for
domestic consumption of diversified proteins like poultry and chicken, but
especially pork.
- The country’s large and growing agricultural economy is a great place to
enter, but leaves room to enhance global competition.
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5. Bilateral Relations
● Aggregate Exports (Bill USD) - Goods or services exported from a
country or region; expressed in billions of U.S dollars. World Trade
Organization stats
● Openness to foreign participation - Combination of three
variables - Ease of hiring foreign labour - business impact of rules
on FDI - openness to multilateral trade rules. World economic
forum
● Total trade (% of GDP) - Sum total of merchandise goods and
commercial services imported and exported; represented as a
percentage of GDP. World Trade Organization stats
(All of these definitions come from the RCII)
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6. Bilateral Relations - Export to Vietnam
“U.S.-Vietnam bilateral trade has grown from $451 million in 1995 to nearly $52 billion in 2016. In 2016, Vietnam
was America’s fastest growing export market. U.S. exports to Vietnam grew by 77 percent between 2014-2016.”
U.S Department of State, U.S Relations with Vietnam, 13 September 2017, 16 Nov 2017; State Department Bilateral Relations Fact Sheet: Vietnam
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7. Logistics Performance (LPI)
The LPI uses six key dimensions:
1.Efficiency of the clearance process
2. Quality of trade and transport related
infrastructure
3. Ease of arranging competitively priced
shipments
4. Competence and quality of logistics services
5. Ability to track and trace consignments
6. Timeliness of shipments in reaching
destination within the scheduled or expected
delivery time
“Indonesia Country Score Card 2016” , n.d., Date acessed 11/6/17:
https://lpi.worldbank.org/international/scorecard/line/128/C/IDN/2016#chartarea
(Ranked out of 5)
Indonesia: 2.98
Vietnam: 2.98
Thailand: 3.26
https://lpi.worldbank.org/international/scorecard/radar/254/C/VNM/2016/C/THA/2016/C/IDN/2016
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8. Logistics
“With a coastline stretching
3,200 kilometres along the
South China Sea, Vietnam has
a particularly advantageous
geographical location, one
that gives it access to the
world’s major seaborne trade
routes.”
Yuen, Jacqueline, “Vietnam’s Logistics Market: Overcoming the
Challenges”, 28 Jan 2015, Date Accessed 26 November
2017:http://economists-pick-research.hktdc.com/business-
news/article/Research-Articles/Opportunities-in-Thailand%E2%80%99s-
Logistics-Market/rp/en/1/1X000000/1X0A2LSH.htm
8
https://www.google.com/search?q=vietnam+map&r
lz=1C1KMZB_enUS586US586&source=lnms&tbm
=isch&sa=X&ved=0ahUKEwiwspm3sODXAhXD6iY
KHaaPBTwQ_AUICygC&biw=1366&bih=637#imgr
c=spLvnua-vS0HnM:
“To ensure a reliable service,
many logistics companies have
established strong ties with
local agencies that specialise in
various aspects of the logistics
process, such as customs
brokerage, documentation and
warehousing services. This is
often cited by leading logistics
companies as a key element in
the smooth running of
transportation operations in
Vietnam.”
Yuen, Jacqueline, “Vietnam’s Logistics Market: Overcoming the Challenges”, 28 Jan 2015,
Date Accessed 26 November 2017:
http://economists-pick-research.hktdc.com/business-news/article/Research-
Articles/Opportunities-in-Thailand%E2%80%99s-Logistics-
Market/rp/en/1/1X000000/1X0A2LSH.htm
9. Market Overview
“A business needs a successful community, not only to create
demand for its products but also to provide critical public assets and
a supportive environment.” - Michael E. Porter & Mark R. Kramer
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10. Markets Access
“The cold storage market in Vietnam is
over-built for current operations. The
organized retail sector is just starting to
take off, and thus, most players are
keeping an eye on the situation. There is
potential for companies with a longer-term
approach.” -Richard Tracy, Global Cold
Chain Alliance
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11. Markets Challenges
“Too many companies have lost sight of that most basic of questions: Is our product good for our customers? Or for our
customers’ customers?” -
(Porter & Kramer, 2011:7)
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12. Domestic Market Consumption Opportunities
“By increasing access to inputs,
sharing technology, and providing
financing, companies can improve
supplier quality and productivity while
ensuring access to growing volume.” -
(Porter & Kramer, 2011:10)
https://www.ipsos.com/sites/default/files/2016-08/meat-market-in-vietnam.pdf 12
14. Final Results
Because of the abundance of agricultural demand and supply, the emerging economies in Indonesia,
Thailand, and Vietnam remain attractive destinations to gain entry, but gaining access to the agricultural
markets proves to be more difficult in Thailand and Indonesia, which leaves them to be better potential
opportunities in the future.
The more stable and liberal economy of Vietnam better suits AJC’s goal of maximizing profits with a long
term strategy. Specifically by reconceiving the protein market by inputting a healthier/more sanitary supply,
we can help make the industry more competitive, which will increase the value of the area and our profit.
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15. Bibliography
❏ de Koning, Jotte Ilbine Jozine Charlotte, et al. "Sustainable Consumption in Vietnam: An Explorative Study among the Urban Middle Class."
International Journal of Consumer Studies, vol. 39, no. 6, Nov. 2015, p. 608. EBSCOhost. Date accessed 20 November 2017:
ezproxy.gsu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=edb&AN=110568771&site=eds-live&scope=site.
❏ Southan, Jenny. "Growth Market." Business Traveller (Asia-Pacific Edition), Oct. 2017, pp. 28-32. EBSCOhost. Date accessed 20 November 2017:
ezproxy.gsu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=125347877&site=eds-live&scope=site
❏ Yuen, Jacqueline, “Opportunities in Thailand’s Logistics Market”, 8 June 2015, Date Accessed: 21 November 2017:
http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Opportunities-in-Thailand%E2%80%99s-Logistics-
Market/rp/en/1/1X000000/1X0A2LSH.htm
❏ Yuen, Jacqueline, “Vietnam’s Logistics Market: Overcoming the Challenges”, 28 Jan 2015, Date Accessed 26 November 2017:
http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Opportunities-in-Thailand%E2%80%99s-Logistics-
Market/rp/en/1/1X000000/1X0A2LSH.htm
❏ The World Bank, “Transforming Vietnam’s Agricultural Sector Will Stimulate Higher Growth”, 27 September 2016, Date Accessed 22 November 2017:
http://www.worldbank.org/en/news/press-release/2016/09/27/transforming-vietnams-agriculture-sector-will-stimulate-higher-growth
❏ Vo Thanh Kiet, Tran Quoc Quan, Bui Huong, & Ward, Michael, Vietnam Exporter Guide 2015, 27 March 2015, Date Accessed 22 November, 2017:
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Hanoi_Vietnam_3-27-2015.pdf
❏ Entzian, Mareike, “The Seafood Industry in Vietnam”, 4 November, 2015, Date Accessed 25 November 2017:
http://www.vietnam-briefing.com/news/seafood-industry-vietnam-aquaculture-year-plans-tpp.html
❏ Porter, Michael, & Kramer, Mark, “Creating Shared Value”, (Harvard Business Review, 2011) pgs. 7-10.
❏ Kinver, Mark, “UN: Global Fish Consumption Per Capita Hits Record High”, 7 July 2016, Date Accessed 18 November 2017:
http://www.bbc.com/news/science-environment-36716579
❏ U.S Department of State, U.S Relations with Vietnam, 13 September 2017, 16 Nov 2017;
State Department Bilateral Relations Fact Sheet: Vietnam
❏ “Indonesia Country Score Card 2016” , n.d., Date acessed 11/6/17
: https://lpi.worldbank.org/international/scorecard/line/128/C/IDN/2016#chartarea
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