Toyotas adaptation to the vietnamese political and legal system

INTERNATIONAL BUSINESS

TOYOTA'S ADAPTATION TO
VIETNAMESE POLITICAL
AND LEGAL SYSTEM
G R O U P

1


MEMBERS
Nguyen My Tam

Le Thanh Ha

Nguyen Tran Van Anh

Nguyen Khanh Linh

Le Thuy Duyen

Tran Hoang Mai
Vu Nguyen Thu Trang
Huynh Thi Thu Trang
Pham Thao Vi


MAIN CONTENTS
Chapter 1: Overview of Toyota
Chapter 2: Political & Legal system:
Vietnam vs Japan

Chapter 3: Toyota's adaptation
to Vietnam


CHAPTER 1
Overview of Toyota




1.1.

TOYOTA'S PROFILE
President and Representative: Akio Toyoda

Date founded: August 28, 1937

Toyota Motor
Corporation
(TMC)

Capital: 635 billion Yen

Employees: 70,170

Main business activities:
Motor vehicle production and sales


History of formation and development

- A Japanese multinational automaker
- Based in Toyota City, Aichi, Japan
- One of the world's major automakers,
producing over 10 million automobiles per year
- Producing vehicles under 5 brands
+ Daihatsu
+ Hino
+ Lexus
+ Ranz
+ Toyota
- Major markets: the United States, the Czech
Republic, China, India, and Vietnam


MISSION
To make ever-better cars, to build
a future where everyone has the
freedom to move.

VISION
Toyota will lead the future mobility
society, enriching lives around the
world with the safest and most
responsible ways of moving people.
Through our commitment to quality,
ceaseless innovation, and respect
for the planet, we strive to exceed
expectations and be rewarded with
a smile.
We will meet challenging goals by

engaging the talent and passion of
people who believe there is always
a better way


Product lines
Hatchback segment
- Yaris
- Wigo
Yaris

Sedan segment
- Camry
- Vios
- Corolla Altis
Camry


Product lines
SUV segment
- Land Cruiser
- Land Cruiser Prado
- Rush
- Corolla Cross
- Fortuner

Multi-purpose segment
- Alphard Luxury
- Innova
- Avanza

Land Cruiser Prado
Alphard Luxury


1.2. TOYOTA IN VIETNAM
- 1995: one of the 1st car manufacturers
investing in Vietnamese market
- 1996: 1st product - The Hiace Model

"Tomorrow must be better than today"


1.2. TOYOTA IN VIETNAM
- After more than 25 years:
+ Investment capital in Vietnam: 230
million USD
+
Production
capacity:
574,092
vehicles
+ 75 dealers/ dealer branches/
authorized service stations in 37
provinces
+ Export turnover: 651 million USD
+ Tax contributed: 9,93 billion USD
(1996-2020)

CHAPTER 2
Political and Legal System
Vietnam versus Japan


2.1. Political System


Differences in the Political System between Japan and Vietnam
Characteristics

Japan

Vietnam

Political type

Unitary parliamentary constitutional
monarchy

Unitary Marxist-Leninist one-party
socialist republic

Constitution

Constitution of Japan

Constitution of Vietnam

Head of state

Emperor

President

Head of government

Prime Minister

Prime Minister

Executive power

The Cabinet

The President and The Government

Legislative power

National Diet

National Assembly

Supreme Court and lower courts

Constitution of Vietnam National
Assembly Supreme People’s Court

Judicial power

2.2. LEGAL SYSTEM


Japanese Legal System
- Japan is a civil law system based on
codified law at core
- The laws have been heavily affected by
common law principles and rules already in
place in the EU
- Integrated Common laws and Civil laws


Source of law

Court System
Supreme Court
Tokyo

Penal Code
(
)

刑法

The
Constitution
(
)

憲法

Roppo
(
)

六法

Civil Code
(
)

民法

Code of
Criminal
Procedure
(
)

刑事訴訟法

Commercial
Code
(
)

商法

Code of Civil

Procedure
(
)

民事訴訟法

High Courts

Family Courts

District Courts

Summary Courts


Vietnamese Legal System

- Civil Law System
- Legal structure modeled
after the philosophies of the
former Soviet Union


01

Constitutions

02

Source of Law

03

Codes/ Laws/
Ordinances

Decrees/ Decisions/
Regulations

04

Circulars/ Resolutions/
Decisions


Court System

The Supreme People's Court

People's High Court
Provincial People's Court
District People's Court


Differences in Legal System between Japan and Vietnam
Systems

Vietnamese legal system

Japanese legal system

Basis

Is a civil law system influenced by the Soviet
Union philosophies

Is a civil law system influenced by
common laws from the EU

Sources of
law

Constitution, Codes/Laws/Ordinances,
Decrees/Decisions/Resolution, Circulars,
Resolutions/Decisions

The Constitution, Penal Code, Code of
criminal procedure, Civil Code, Code of
Civil Procedure, Commercial Code

4 tiers of court: District Court, Provincial Court,
High Court, Supreme Court

5 tiers of court: Summary Court, Family
Court, District Court, High Court, Supreme
Court

Court system

“Through the support of the government and the administration’s policies to protect
the local automotive industry, we have full confidence in Vietnam and the people here,
whom we have come to appreciate so much.”
said Toru Kinoshita.

CHAPTER 3
Toyota's adaptation to Vietnam
3.1. Political System
3.2. Legal System
3.3. Achievements


3.1. TOYOTA'S ADAPTATION TO THE VIETNAMESE POLITICAL SYSTEM
IMPACTS OF THE VIETNAMESE POLITICAL SYSTEM ON TOYOTA (1)

Open business
environment,
transparent
investment policy,
and favorable
profit-based
incentives for
businesses

Quite stable
natural and
political
environment

The Government's

commission
about Toyota
business




IMPACTS OF THE VIETNAMESE POLITICAL SYSTEM ON TOYOTA (2)
HOWEVER

Continuously changing tax policy


-> unable to calculate the
revenue - cost problem in a long-term strategy


Toyota’s adaptation to the Vietnamese political system
Prevention
sending a document to the
Government requesting to
import CBU cars.

Toyota's
management
proceeded these
solutions

Discussing the
investment environment

closely linking with domestic
producers in terms of
responsibilities and powers
of the two parties.

Efforts for a better society
Short-term profit
maximization
Increasing price
Promotion

signed a Memorandum of
Understanding on Business
Support Cooperation
Project
maintaining annual social
contribution activities