Tài liệu Japanese market and penetrating ability of vietnamese companies

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN VIỆT DŨNG JAPANESE MARKET AND PENETRATING ABILITY OF VIETNAMESE COMPANIES THỊ TRƯỜNG NHẬT BẢN VÀ KHẢ NĂNG THÂM NHẬP CỦA CÁC CÔNG TY VIỆT NAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN VIỆT DŨNG JAPANESE MARKET AND PENETRATING ABILITY OF VIETNAMESE COMPANIES THỊ TRƯỜNG NHẬT BẢN VÀ KHẢ NĂNG THÂM NHẬP CỦA CÁC CÔNG TY VIỆT NAM Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS. NGUYỄN VIỆT KHÔI Hà Nội - 2018 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration. Hà nội, Feb,2018 Author, Nguyen Viet Dung ACKNOWLEDMENT I have gained huge knowledge, skill and insights from my MBA course. The course raised my capacity of administration and management up to the next level. I am now very confident in my position of management. I would like to extend my sincerest thanks and appreciation to all those who have made this thesis possible. I woud like to express my great gratitude to my supervisor, Assoc. Prof. Nguyen Viet Khoi, for him useful comments, remarks and engagement during my process of doing this master thesis. Sincere thanks are extended to the Hanoi School of Business & Management – Viet Nam National University, Ha Noi for equipping me with huge knowledge and skills through various interesting and practical subjects. I also would like to thank my classmates for their friendship and reciprocal encouragement to make our class time unforgettable time. Last but not least, during the process of writing the thesis, although the effort has been made, due to the limitations of the level of knowledge, practical experience, experience in scientific research, the thesis is inevitably limited. I would like to receive the comments of researchers, teachers and readers so that the thesis is more complete both scientific and practical reason. Hà nội, Feb, 2018 Author, Nguyen Viet Dung TABLE OF CONTENTS LIST OF ABBREVIATIONS ............................................................................ i LIST OF TABLES ............................................................................................ ii LIST OF FIGURES.......................................................................................... iii INTRODUCTION ............................................................................................. 1 CHAPTER 1. THEORETICAL FRAMEWORK AND OVERVIEW OF JAPAN MARKET ............................................................................................ 3 1.1. Literature Review................................................................................... 3 1.2. THeory framework.................................................................................. 8 1.2.1. The essence of the distribution system of goods ............................... 8 1.2.2. Classification of goods distribution system ...................................... 9 1.2.3. Structure distribution system .......................................................... 10 1.2.4. The intermediate types of goods distribution ................................. 13 1.2.5. Organizing goods distribution system ............................................ 15 1.3. japan economics overview and economics relationship with vietnam . 20 1.3.1. The Japanese Economics ................................................................ 20 1.3.2. Trade relationship Vietnam – Japan .............................................. 23 CHAPTER 2. JAPAN MARKET CHARACTERISTIC OVERVIEW AND DISTRIBUTION SYSTEM CHARACTERISTIC......................................... 28 2.1. Japan Import - Export Overview and Japan Market Characteristic Overview28 2.1.1. Import – Export current stage ........................................................ 28 2.1.2. Japan Market Characteristic .......................................................... 29 2.2. Characteristic of distribution system in Japan market .......................... 46 2.2.1. Great number of small-scale retailing store................................... 46 2.2.2. Various level of immediate retailers ............................................... 48 2.2.3. Role and influence of general trading company on distribution system ........................................................................................................ 48 2.2.4. The Keiretsu distribution system .................................................... 49 2.2.5. “Special” Custom ........................................................................... 49 2.3. Transforming trend in distribution system in Japan ............................. 51 2.3.1. The Use of Third Country ............................................................... 51 2.3.2. M&A between Immediate Wholesales ............................................ 52 2.3.3. Direct Import in Retailers ............................................................... 53 2.3.4. Penetrating of Foreign Retailers to Distribution System in Japan 54 CHAPTER 3. DISTRIBUTION SYSTEM OF KEY IMPORTED PRODUCTS FROM VIETNAM AND PENETRATING ABILITY OF VIETNAM COMPANIES .............................................................................. 55 3.1. Texttile and garments ............................................................................ 55 3.1.1. The characteristics, exported and imported products and distribution system of Japan’s textile and garment industry .................... 55 3.1.2. The current state of import and distribution of Vietnam’s textile and garment products in Japan’s market ........................................................ 58 3.1.3. General assessment of the penetration of Vietnam’s textile and garment companies into Japan’s market .................................................. 62 3.2. Wood and wood products .................................................................... 65 3.2.1. Characteristics and distribution system of wood and wood product in Japan’s market ...................................................................................... 65 3.2.2. The current state of export and distribution of Vietnam’s wood products in Japan’s market....................................................................... 67 3.2.3. General assessment about penetration to Japan’s market distribution system of Vietnam’s wood and wood product exporting companies ............. 72 3.4. General assessment of the state of penetration into Japan’s goods distribution system of Vietnamese enterprises ................................................ 75 3.4.1. Achievement .................................................................................... 75 3.4.2. Existing limitations and their reasons: ........................................... 77 CHAPTER 4. RECOMMENDATION FOR ENHANCING PENETRAING ABILITY OF VIETNAMESE EXPORTED PRODUCTS TO JAPAN ........ 79 4.1. Development prospect and orientation of Vietnam’s some key export products to Japan’s market........................................................................... 79 4.1.1. Development prospect and export orientation of Vietnam’s products to Japan’s markets. ................................................................................... 79 4.1.2. Development prospect and orientation of Vietnam’s some key export products to Japan’s markets. ......................................................... 79 4.2. Some solutions aimed to improving penetration ability to distribution system in Japan’s market of Vietnam’s export products ............................. 81 4.2.1. General solutions ............................................................................ 81 4.2.2. Separate solutions for each export sector ...................................... 84 CONCLUSION ............................................................................................... 94 REFERENCE .................................................................................................. 95 LIST OF ABBREVIATIONS No. Abbreviations Meaning 1 ASEAN Association of Southeast Asian Nations 2 CIT Corporate income tax 3 CITES The Convention on International Trade in Endangered Species of Wild Fauna and Flora 4 FDI Foreign Direct Investment 5 FOB Free on Board 6 GPD Gross Domestic Product 7 JAS Japanese Agricultural Standards 8 JETRO Japan Export Trade Research Organization 9 JIS Japanese Industrial Standards 10 METI Ministry of Economy, Trade and Industry 11 MOFA Ministry of Foreign Affairs of Japan 12 SME For small and medium enterprises 13 USA United State of America 14 VCCI Vietnam Chamber of Commerce and Industry 15 VJEPA Vietnam- Japan Economic Partnership Agreement i LIST OF TABLES Table 1.1: Japan Economics Current Indextes ..........................................................21 Table 1.2: Vietnam- Japan Trade Turnover (Measured in Billion US Dollar) .........24 Table 1.3: Japan’s official development assistance to Vietnam ...............................25 Table 2.1: Tastes and habits of consumers in regions of Japan ................................40 Table 3.1. 3 main categories of imported textile products in Japan .........................56 Table 3.2. Vietnam's total garment and textile export value during 2011-2015 .......58 Table 3.3. Preliminary statistics on export performance to Japan in the first 9 months of 2015 by the General Department of Customs ..........................................59 Figure 3.3 Main distribution channels of wood industries in Japan .........................66 Table 3.4. Composition of wood products exported to Japan in July 2014 in compare to July 2015 (thousand USD) .....................................................................68 ii LIST OF FIGURES Figure 1.1. The distribution system of popular personal consumption goods ..........11 Figure 1.2. The distribution system for popular industrial goods .............................13 Figure 1.3. GDP Partern of Vietnam 2015 ................................................................20 Figure 1.4: Vietnam- Japan export, inport and trade turnover from 2007 to 2014 ..........24 Figure 1.5: Vietnam- Japan Import, Export and Balance of Trade from 2009 to 2013......25 Figure 1.6: Total FDI in 2014 ...................................................................................26 Figure 1.7: Total FDI in 2013 ...................................................................................27 Figure 2.1: Japan Import-Export 1005 - 2013...........................................................28 Figure 2.2 The structure of household spending in Japan.........................................29 Figure 2.3 Distribution system of imported goods in Japan .....................................30 Figure 3.1: Distribution channels of textile and garment products in Japan’s market........57 Figure 3.2: The composition of Vietnam’s textile and garment product export to Japan ..........................................................................................................................59 Figure 3.3 Main distribution channels of wood industries in Japan .........................66 Figure 3.4 Mechanism of distribution of wood products from Vietnam in Japan’s market ........................................................................................................................70 iii INTRODUCTION 1. Rationale Japan is one of the largest economies in the world, as well as a potential export market of many countries including Vietnam. In these current years, two way turnover, especially export from Vietnam to Japan keeps growing, showing the rapid development of bilateral trade relations. However, compared to the total turnover of the Japanese import, the import turnover of Vietnam is still very small. Although Vietnam's products are constantly improved, in quality and design, style... Vietnamese enterprises are still small-scale enterprise in compare to domestic and foreign competitor in Japan market, we have limited resource of information as well as finance to understand and experience the market, and therefore, the penetration in the Japanese market remains a challenge for Vietnamese enterprises. To be able to penetrate the Japanese market more easily, Vietnamese enterprises need to understand the characteristics of this complex distribution system and on that basis develop a strategy to penetrate the market in line with the scale of the business, achieve high efficiency. Looking at the distribution system on the Japanese market, proposing the solutions to penetrate this difficult markets are urgency and tremendous practical significance problems for Vietnam enterprises. 2. Research Questions - What is characteristic of distribution system of Japan market – one of the largest export markets for Vietnam? - What is the current situation of export as well as penetrating ability of Vietnam enterprise to Japan market? What are our achievements? What are our challenges? - From that situation, where are the opportunities for Vietnam enterprises? What we can do to get those opportunities? 3. Subjects and Scope Subjects: The ability to participate in the chain of distribution of textile products and woods into the Japanese market of Vietnamese companies Scope: 1 - Content The study focused mainly on distribution system of Japan market and current situation of two key groups of Vietnamese exports: textile product, wood and wood products. The reason for choosing these commodities: these are all commodity groups evaluated as the focus of Vietnam exporters, with export turnover among 15 items Japanese exports (www.vinanet.com.vn). Each item has its advantages and initially receives good response from Japanese consumers, especially the group of wood product. These are the items which are considered as potential exporters to exploit the advantages of Vietnam on the Japanese market. - Space: the chain of distribution of textile products and woods - Time:The statistics were taken from 2006 to the end of the month 3/2016. 5. Research Methodology - Qualitative data finding, collection: This study contains collected secondary data that are related to concepts, opinions, values and behaviors of the subject in the studyfor the purpose of analyzing. - Data analyses: This study conducts processes and procedures whereby we move from the qualitative data that have been collected into some form of explanation, understanding or interpretation of the people and situations we are investigating. 6. Structure of Research Study This thesis has 3 chapters: CHAPTER 1. THEORETICAL FRAMEWORK AND OVERVIEW OF JAPAN MARKET CHAPTER 2. JAPAN MARKET CHARACTERISTIC OVERVIEW AND DISTRIBUTION SYSTEM CHARACTERISTIC CHAPTER 3. DISTRIBUTION SYSTEM OF KEY IMPORTED PRODUCTS FROM VIETNAM AND PENETRATING ABILITY OF VIETNAM COMPANIES CHAPTER 4. RECOMMENDATION FOR ENHANCING ABILITY OF VIETNAM EXPORTED PRODUCTS TO JAPAN 2 PENETRATION CHAPTER 1. THEORETICAL FRAMEWORK AND OVERVIEW OF JAPAN MARKET 1.1. Literature Review Distribution System has not drawn enough attention from reseachers. There is not much paper on this field so far. The most influent researchs on this paper are listed below. Le Thuy Ngoc Van – “Vietnam-Japan Trade Relationsin the 1 st Decade of the 21 st Century” Since the early years of the past century, the expansion of integration and economic cooperation has become an inevitable trend for economic development of countries. The globalization has opened up significant economic opportunities to countries that no one can deny. In such context of the international division of labor is going strong, the international economic cooperation has become the best way for states to promote their maximum advantage, as well as fully exploit the benefits of the other countries to serve their country namely, Singapore, Malaysia and Thailand.Vietnam, too, to accelerate the process of industrialization and modernization, the Communist Party and government have been implementing the foreign policy of openness and diversification and multilateral international economic relations, taking the objectives of peace and development as the standard for all external activities. Unexceptionably, both Vietnam and Japan have found each other in the favorable conditions, as well as the mutual national economic benefits to develop and strengthen bilateral cooperation relationships between the two countries. The pinnacle of this relation was marked by the Vietnam-Japan Economic Partnership Agreement signed in 2008. After over three years of implementation, there have been a significant benefits and opportunities gaining from the Vietnamese-Japanese trade relations. Besides the positive results achieved in the trade relations, there have been some limitations that need to be surmounted, removed to further develop the full potential of the two countries, to strengthen the relationship between the two nations. 3 The purpose of this research is to evaluate economic effects of Vietnam’s accession to Vietnam-Japan Economic Partnership Agreement (VJEPA) by implementing tariff elimination, logistics enhancement, and reduction in service trade barriers. The hypothesis is that two participating countries can benefit from the accession, resulted in higher real GDP and economic development. The research has found out that VJEPA is an important step on a longer journey of partnership between the two countries through the evidences of new opportunities for both but there is still a lot of work to be done on both sides to take full advantage of the relationship Motoshige Itoh – “The Japanese Distribution System and Access to the Japanese Market” There has been an increasing amount of criticism from both inside and outside Japan about the efficiency of the Japanese distribution system and the difficulty in obtaining access to the Japanese import market. According to this criticism, the Japanese distribution system is quite complicated, Japanese business practices are outdated, the system is inefficient, and it leads to trade barriers. The following points are often made: (1) The Japanese distribution system has many small-scale firms, both wholesale and retail, and a multilayer structure that consists of many layers of wholesalers. (2) There seems to be a strong linkage among the domestic producers, wholesalers, and retailers. It is not easy for new entrants, foreign or domestic, to penetrate the market. This paper concentrates on the economic mechanisms that underlie the Japanese distribution system and its business practices. Itoh presents a rough overview of the system; discuss the theory of repeated and long-term transactions; analyze structural change in the Japanese distribution system using apparel distribution as a case study; and, consider the issue of access to the Japanese market. Itoh and Maruyama present new evidence to the effect that value-added per worker, gross margin, and retailer and wholesaler operating expenses relative to sales and profits relative to sales are all lower in Japan than in the United States or Germany. 4 Itoh makes the added point that even vertical arrangements that efficiently resolve problems in the marketing of products can nevertheless impede entry. But the reason entry is made less profitable and is impeded is that the arrange- ments lead incumbents to expand output, which lowers prices. Efficient vertical contracts, although they may indeed deter imports, cannot logically explain why identical products have higher prices in Japan than elsewhere. Nguyễn thị Vân - “Business Culture of Japan market and Access Ability of Vietnam enterprises” As global markets want to get closer, besides achievements we also confront challenges that are more complicated. Experts identify the root cause of this comes from difference in culture. Therefore, business culture is getting more and more attraction. Japan is one of Vietnam’s most important partners. In the last 30 years, Japan and Vietnam enterprised have been processing on assess to other’s market. They all confront challenges in cross-culture environment and this leads to other difficulties in doing business. From these reason, this paper goes deeper to understand Japan business culture and assess ability of Vietnam enterprises. The author went from overview about business culture and its influence on assess ability of foreign firms. Following that, author wrote in detail challenges and opportunities of Vietnam enterprise and finally, came up with solution. Kobe University – “Is the Japanese distribution system becoming more accessible to foreign firms?” This discusstion papers are a series of research papers in their draft form, circulated to encourage discussion and comment. Complexities in the Japanese distribution system are well-publicized. An emerging body of literature has documented recent changes in the Japanese distribution system. In this paper, it is examined whether foreign firms’accessibility to Japanese distribution system has changed in a favorable direction in recent year. Furthermore, as foreign firms vary widely in term of institutional barriers and complexity they face in the Japanese market, the authors also investigate the 5 determinants of inter-firm heterogeneity in thỉ assessment of the Japanese distribution system. VCCI – Market Profile: Japan This paper provides overall information about Japan market with up-to-date data (April 2015). This paper starts with a quick look at Japan as a coutry with knowledge about history, geography, culture, business culture … After that, the paper focuses on information about economics, diplomacy – policy relationship, economics relationship with Vietnam and cooperation with VCCI. Thank to the paper, I utilized information about current economics performance between Vietnam and Japan for my thesis. Dr. Đinh Văn Thành, Dr. Trương Đình Chiến, Master. Vũ Bá Sơn – “Solution for Improving Distribution System of Vietnam Export in term of Economics Integration” In front of pressure to compete in free trade environment in term of international economics integration, Vietnam enterprises are forced to improve competency in distribution system, in not only domestic market but also exported market. Only from that, enterprises show their abilities to produce and serve market demand and create premise to improve production onshore. These demands are ones of the most important support that enterprises ask from the government in the time of integrating into international economics. This research project is under Trade Affair. In the project, the definition and role of distribution system is first mentioned. The project explains the operation and management of distribution system. After explaining theory framework, authors raise the current situation of distribution system for Vietnam exported products, state their judges about achievement, and learning; limit and reasons behind; challenges to take. In the third chapter of the research, solutions for develop distribution system of Vietnam exported products is researched and presented. This final chapter is started with the forecast about opportunities and challenges for distribution system. From that, they propose the direction for distribution system of Vietnam export operation and macro solution to develop the system in term of economics integration. 6 The research provides knowledge and information to promote the development of sustainable and competitive distribution system first in domestic market and for foreign market in the following time. Distribution system research need a deep understating from different aspects such as social-culture, legal, management … therefore, it should be aware and update in detail. Le Thanh Thuy – Graduate Thesis: “Solution for Promoting Vietnam Product to Export to Japan Market” Japan is one of the largest markets in the world nowadays because of dense popularity as well as high income per people. For Vietnam, Japan is also one of the most important trade partners. To maintain and promote export key products of Vietnam to Japan market is what government has been working for. In the age of globalization and internationalization, competition in export, especially in export to Japan market is becoming tougher and tougher. Vietnamese key export products are also products that other ASEAN countries or China has advantage of production. Besides, Japan market is famous for its quality requirements. This is the challenges for Vietnamese products to adapt to Japan market, utilize our strengths and advantages to maintain and develop this market. Recent years have been recording positive result in export Vietnamese product to Japan market. The key note is that some of our products like seafood or wood products have been improving enough to compete and raise market share in Japan market. The thesis explains in details characteristic of Japan market; analyses and evaluates current situation of Vietnam export to Japan market and from that, the thesis states opportunities and challenges for Vietnam enterprises; finally, some solution is proposed to promote export goods from Vietnam to Japan, in government scale and enterprises scale. Nguyễn Đức Thắng – Thesis “Import Policy of Japan and Vietnam Ability to Export to Japan Market” Japan and Vietnam has signed many trade agreements to promote bilateral trade relationship. Japan market not only has important role at present but also be a potential partnership for import-export of Vietnam in the future. Macro-economic 7 regulations of Government always have big influence on the economy to promote and orient business and international business. The thesis emphasizes in the first chapter important legal regulations, tax barrier and non-tax barrier, procedure… Mr. Nguyen Duc Thang also highlights and evaluates import policies which Japan applying to Vietnamese products. For chapter 2, current situation and potential in Vietnam product to penetrate deeply in Japan market are demonstrated and evaluated. From those, the final chapter is recommendation to promote export from Vietnam to Japan. Research subjects of this thesis is foreign trade policies of Japan, especially import policies. The thesis limits itself in material products, not to expand to service. The analysis and evaluation are based on information from the year 2000 until now. This is the first thesis that not only focuses on Japan import policies but also based on those researches and understanding, the thesis proposes macro solution to promote export from Vietnam to Japan market in the following time. 1.2. Theory framework 1.2.1. The essence of the distribution system of goods 1.2.1.1. The conception There are many different views of economists about the distribution system of goods. According to Japanese economists Kasturi Rangan, the distribution of goods is like a vertical marketing system, where ownership is transfered through intermediate levels, like moving a stick on the track relay. There is another view that the goods distribution system is a group of organizations and individuals performing the activities that make the product, service is ready for the final consumer, or industrial users can purchase and use. In general, we can say that the distribution system of goods is a collection of enterprises and individuals that depend on each other, participating in the process of bringing goods from producers to the final consumer. 1.2.1.2. Characteristics of the distribution system of goods The distribution system of goods is a chain of relationships between organizations and individuals involved in the process of buying and selling goods. 8 Each enterprise during business must participate in one or some distribution system of goods. If we consider the distribution system of goods as a multi-chain that one chain is a member, the connection between that link is formed by motor lines as: negotiation, payment, ordering promotion, risk sharing, transfer of ownership, recovered and re-used wood shavings … This moto lines has created a strong rope which bonds chains together and makes the whole line of distribution system operate stable. There is always a division of labor and specialization in the distribution system of goods. Each business organizations undertake one or some certain distribution jobs. In addition, there are organizations or companies that specialize in performing the distribution known as commercial intermediaries. They not only share part of the work with the manufacturers, but because only focus on the ditribution, so, they operate effectively than other manufacturers, which helps increase the efficiency of the whole system. Goods flow in the distribution system through a mechanism called "pull - push”. The "pull" mechanism means that the business uses measures influencing the demand of final consumers to create gravity of goods on the market. The "push" mechanism means that the business use measures to promote distribution system, enhance operational coordination consumption, and create push of goods on the market. 1.2.2. Classification of goods distribution system  According to the link between the levels of membership, the distribution system divided into the traditional distribution systems and vertical marketing system. Traditional distribution system: the distribution which is formed in a spontaneous random way. It is a discrete network, loosely connected the manufacturers, wholesalers and retailers whose direct trade operation with each other. The advantage of this distribution system is that the trade relations are not continuous and stable. It also lack of centralized leadership, have poor performance and many conflicting. 9 Vertical intergration distribution system: the distribution system goods which have focus and professional management program designed to achieve effective high distribution and maximum impact on the market. Members of the distribution system have close links with each other and operate as a unified whole. Using vertical integration distribution system, enterprises can control works distribution and conflict resolution initiative.  According to the distribution properties, goods distribution system divided into retail and wholesale distribution system. Retail distribution system: the goods distribution system in which goods or services are sold directly to final consumers for their personal use, not commercial in nature. There are many organizations - manufacturers, wholesalers, retailers perform retail functions, but the majority of the retail are done by professionally retailers. The retailer will be done through a system of retail outlets, supermarkets. Wholesale distribution system: the goods distribution system in which every goods or service is sold to those purchaser for resale or for business purposes. Compared with the retail system, the wholesale system has the following different characteristics: - Firstly, the object of the wholesalers in the wholesale distribution system is not the final consumer. - Secondly: because the wholesalers deal mainly with trade customers so they are less interested in the ad, the location and the atmosphere of the store. - Thirdly: wholesalers usually have a wider range of trading and commodity trading volume is also larger. - Fourthly: wholesalers are under the provisions of the tax laws which is different with other retailers. 1.2.3. Structure distribution system Structure of goods distribution system described gathers members of the distribution system and the division work among them. There are three basic factors 10