Phân tích SWOT công ty giấy bãi bằng và kế hoạch xuất khẩu e

PHÂN TÍCH SWOT CÔNG TY GIẤY BÃI BẰNG VÀ KẾ HOẠCH XUẤT
KHẨU

FOREWORD
Nowadays, international economic globalization and integration is a profile and
popular growth tendency of the world economy and Vietnam is not an exception. In
recent years, the number of Vietnam enterprises that operate in import and export
increases rapidly with a plenty of items such as maritime products, textile, footwear,
handicraft, paper...
Export is an important business of the national economy that plays a essential role to
the economic growth and development. Therefore, to promote the development and
enhance the effectiveness of the commodity export is a necessary requirement at the
moment integrated condition. However, there are some obstacles for the entrance to
foreign markets such as the differences of politic, economy and culture...To overcome
these difficulties and obstacles, enterprises should carefully study and analyse the
target market before export their products worldwide, and Bai Bang Paper is an typical
example.
Paper of Bai Bang Company is produced by a most modern and large-scaled process in
Vietnam that is financed by a non-refundable aid of the Government and the Swede –
this is a valuable symbol of the friendship between two nations Vietnam and Swedish.
Since the period when the Vietnamese had to fight against invader, Bai Bang produced
a capacity of 55,000 tpa. Since the beginning of its business, Bai Bang has been
supplying a significant volume of paper with high quality and preferred by the
consumer. The key products of the Company are print-paper and notepaper that meet
the international quality standard and are produced by an advanced technology. In
2004, the Company successfully upgraded and widened their production capacity to
100,000 tpa paper and 61,000 tpa of paper-powder with high quality of international
competition and the production environment met the State standards. Concurrently, the
Company also set up a feasible study submitted to the Government for the period 2
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expansion project – Develop a factory that must be finished by the year 2007 that
produces paper powder with capacity of 250,000 tpa with product quality and
environment meets the International Standards.
Being aware of the increasing demand on external market for the paper and paper
powder, the Company aims to export their products to England or Australia. They wish
the Company will gain many profits by their plan’s success.
CONTENT
I.

Market selection and ways of penetration.
1. Kingdom of England

Kingdom of England is the largest nation with most population of the United
Kingdom of Great Britain and Northern Ireland, locates in the North of Europe.
England’s population counts for more than 83% of population of the United Kingdom
of Great Britain and Northern Ireland and makes up most of the England’s island’s
population. It shares land borders with Scotland to the north and Wales to the west.
Moreover, the Irish Sea is to the north west, the Celtic Sea to the south west, with the
North Sea to the east and the English Channel to the south separating it from
continental Europe. Nowadays, England is a country that is a part of the United
Kingdom of Great Britain and Northern Ireland. Its stability of politic and economic
wealthy, the friendly policy of law makes it attractive to investors all over the world.
With London – a leading financial centre, Kingdom of England is the key path to the
European Financial Market – a biggest single market in the world – it is the European
Union that lies on the veranda of the Kingdom of England.
I.1.

Politics:

The United Kingdom of Great Britain and Northern Ireland is under the governed of a
Constitutional Monarchy headed by the Prime Minister. This is a political pluralism
system that authorizes a part of power to Scotland, Wales and Northern Ireland. The
executive power belongs to the Goverment. The legislative right is shared by both the
Government and the Bicameral: House of Commons and House of Lords. The Justice
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branch is separated from the two remains: Execution and Legislation. This governed
mechanism called Westminster System (see the figure B.01 at the Appendix).
Through the Figure shows the political risk in England from 02/2009 to 01/2010 (table
B.01), we find that the political status in England is fairly stable; the Government
issues various policies to attract foreign investment, remarkably the tax policy for
enterprises that is so competitive and the income tax for individuals is lowest in
comparison with other countries of the European Union.
Legal system: of the United Kingdom of Great Britain and Northern Ireland uses a
common legal system. The basic feature is that this law system bases on the Court’s
judgement and the common legal terms are also used when mentioning to England
Law. The basis of the common law is that the Court’s judgements called antecedent;
this is a key feature to distinguish this legal system to the Civil legal system of the
Roman Germany.
Last time, a limited aspect of the common legal system is its firmness and
incomplexity. For the content and procedures, the Court used to follow the antecedent
so the legal system is not appropriate to new situations. Therefore, in England, besides
the common law, there is also the equity that is applied when there is not an
application of the common law. This situation lasted to the nineteenth century. In 1848,
there was a Code of Civil procedure to be issued in New York (United Sate) that
computed every situation to obey an unique system. In England, Judicature Act issued
in 1873 also promulgated the closely combination between the common law and the
equity.

For all what mention above, there may be difficulties when cooperating with the
England. Enterprises should carefully study the legal system in England to avoid
dispute during the implementation of commercial contracts. Enterprises must spend
time and cash to receive contracts with closely terms and conditions, as well as the
reliable consultancy.
I.2.

Economy

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The Economy of the United Kingdom of Great Britain and Northern Ireland stands
fifth in the world based on the market rate of exchange and stands sixth by the
equivalent buying power. It is the second biggest economy in Europe, after Germany.
According to a recent survey, the globalized index here stands fourth in the world.
Along with New York and Tokyo, London is one of the third financial centre in the
world.
In recent years, England’s economy is considered to grow most steadily and
constantly, over 150 years. This is one of the strongest economies of the EU, in terms
of inflation, unemployment and interest rates are relatively low. Therefore, according
to the International Monetary Fund, the GDP in England ranked seventh in the
European Union by purchasing power parity, after Luxembourg, Ireland, Holland,
Denmark, Austria and Finland. However, like many other economies of Englishspeaking countries, it is the level of income inequality than many European countries.
It is also a country that has large current account deficits despite the substantial
revenues from oil.
About GDP growth
Britain’s GDP ranked fourth in the world with $24,228 per person estimated by
purchasing power parity, the GDP per person is $ 22,882 (ranking sixth in the world).
What makes this number is impressive is that England is the third largest country in

the top 10 leading countries according to GDP with GDP reached $2.007 billion, so
one can imagine a high GDP per capita at $ 24.228.
England experienced a recession period in the early 1990s, but also implemented a
longest period of economic expansion. And in 2004 the Britain maintains a steady
growth rate and reliable 2-3%, and this ratio is considered as an optimal rate that might
be expected.
In addition to economic targets, the Company needs to consider the interest on tax
policy. From December 1, 2008, the British government has announced to cut the
standard rate of value added tax, commonly known as value-added tax, from 17, 5% to
15% to kick-start the economy. It is a tax on most goods and services, although
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different kinds of goods attract a different VAT tax rate. However, these rates are 5%
higher than value-added tax rate in Vietnam. Therefore, Vietnam enterprises need to
wait to adjust from the British government or we must find our own solutions (See
Table B.02 in Appendix GDP)
Human value

I.3.

Human Development Index (HDI) is a measure of the needs of the people are satisfied
and the extent of the need to settle the same across the entire population of a country in
three aspects: (1) a long and healthy life, (2) an education, and (3) is a decent standard
of living. We can see that the England ranks fourth in per capita GDP, but ranks 14th
in providing health care, education, and a decent standard of living. It can be deduced
that the UK has a long life and high HDI in the world.
Technological technique

I.4.

England has a system of large company in phone service, and it also is one of the
countries with advanced technology systems in the world of telecommunications and
supplies services such as mobile phones, wireless communication and electric cable
(Refer to Appendix B.03).
2. Australia

Australia officially the Commonwealth of Australia, is a country in the Southern
Hemisphere comprising the mainland of the Australian continent

the island of

Tasmania and numerous smaller islands in the Indian and Pacific Oceans. It is the
world's sixth-largest country by total area. Neighboring countries include Indonesia,
East Timor and Papua New Guinea to the north, the Solomon Islands, Vanuatu and
New Caledonia to the northeast.
2.1.

Politics

Commonwealth of Australia is a state institution under the constitutional monarchy
with Queen Elizabeth II of Great Britain is also Queen of Australia. In contrast to
many Asian countries, Australia is considered "very low risk of political instability."
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Scores of political risk indicators of Australia at: 9:54- very low, almost the risk is zero
(10 is the lowest index).
Australia's legal system: legal system in a country affected by cultural factors (the
barrier layer, religion, creed, etc.) and its political system. Australian legal system is

based on a fundamental belief in the provisions of law, justice and independence of the
judiciary. Australia, similar to some countries like Britain, Canada, the United States,
India, Malaysia, etc., under common law system, which originated from England in
the eleventh century. There are nine legal systems in Australia, eight States and
Territory systems and a Federal system. However, it is the system state and territories
which mainly affect the daily lives of most Australians. Each system of federal and
state is the combination the three governed branches: legislative, executive and
judiciary (See table B.04 - Appendix).
2.2.

Economy

Generally, the Australian economy is considered as a good economic environment, a
free-market economy in the world. The index of economic freedom in Australia is
82.6, ranking third among 41 countries in the Asia-Pacific in 2009 (according to the
aspx). The index of economic freedom is
valued based on the following factors: free enterprises, free trade, free finance,
government scale, free monetary, free investment, property rights, corruption and
labor.
Australia's monetary policy helps to control money supply and interest rates.
Australian economy has always been considered as the most active growth in the
world with high inflation and low interest rates. Inflation and low stable interest rates
will make people spend more money on products that are essential goods.
Besides the study of free economic index, the company should focus on indicators of
economic development. There are a number of criteria to evaluate: GDP and GDP per
capita, human development, national classification and some macroeconomic
indicators such as inflation, unemployment, etc.. Australia's GDP in 2008 is estimated
at $ 1.011 trillion (USD 800.2 billion), up 2.3% and stood at 19 in the world. GDP per
capita in 2008 was U.S. $ 38.100, dated 25 compared with other countries.
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2.3.

Culture

Human Development Index HDI of Australia ranks fourth in 179 countries and lies in
the group with high level of human development, unemployment and inflation low,
base rate accounts for 5 -6%. Australia is a highly developed country on the factors of
economy and human, culture - society is quite favorable for the Bai Bang paper
company.
2.4. Tecnological technique
Australia is a highly industrialized country in accordance with the actual needs of the
company when considering investment here.
A. Target selection

After analyzing the two markets, the company found that the Australian is the potential
and idea market for companies to undertake an expansion plan to oversea markets.
Reason:
1. Britain’s applies a higher tax rate while at the ASEAN Summit in Hua Hin,

Thailand, on February 27, 2009, commitments have been signed between
the ASEAN-Australia-New Zealand import tariff reduction for with
Southeast Asia. For Vietnam, Australia and New Zealand will cut off import
tariffs of products and services in Vietnam increased by 85% and 96.4%
respectively, in 2010 before issuing a Southeast Asian countries are
complete tax exemption in 2020. Paper is one of the items eligible for tax
reduction.
2. Sources of Labor here has high quality, while the wage rate and the cost of

recruitment are at average rate. Operating a new business in this country
also appreciate the support of government, it makes things easier for the
company when finishing procedures of cooperation. These advantages will
help the company reduce costs of doing business in this new market.

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3. Australia has a developed economy with income per capita little higher than

the United Kingdom, Germany and France by purchasing power parity
(Refer to Appendix, table B.05).
4. Relationship between Vietnam and Australia: Australia - Vietnam relations

is steadily enhanced through various bilateral agreements, such as: Trade
and Economic Cooperation Agreement (1990), Investment Promotion and
Association of protection (1991), Double Taxation Agreement (1992).
According to official statistics, Australia is ranked 18th in overall foreign
direct investment in Vietnam. In addition, Australian companies are
generally well received in Vietnam as well as Australian companies in
Vietnam. Since joining the WTO on Jan. 11, 2007, Vietnam has many
opportunities to expand business into foreign markets, especially the
Australian market. Vietnam and Australia have a strong relationship in both
political and economic aspects.
B. Ways of penetration to Australian market:

The company will face many difficulties in the first time entering to Australian market
as the difficulties of law, culture, politics ... So, to minimize the risks, the company has
applied a policy of joint venture with a local business. The joint venture enables the
Bai Bang Paper Company to reduce risks, as well as learning experience for next time

expansion in other markets.
Through study and research paper companies in Australia, the Bai Bang paper
company has partnered with select venture company PaperlinX, a retailer of stationery
has extended network address in Australia.
ANALYSIS
I.

SWOT analysis

Opportunities: Participation in the Australian market is a good opportunity to Bai Bang
Paper Company to expand its business market. The company has more advantages
than other businesses in Australia about the sources of fuel prices and low wages. In
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particular, the Australian government has loosened policies like free trade tariff
reductions for Asian countries
Challenges: The biggest challenge of the company in Australian market is products of
China. China's products are cheaper than the company's products so it is also difficult
in the consumption in foreign markets. The measure for this situation is making
products of good quality and affordable to competing with China that are cheaper, but
quality is not high.
Strengths: Company has installed modern machines and applied a closed production
process from planting, processing of raw materials, electricity, chemicals, pulp and
paper production to the stage of maintenance and transportation. The company consists
of 16 clinical cases, five factories, four plants located in the provinces of Phu Tho,
Vinh Phuc, Tuyen Quang, Ha Giang, Quang Ninh and 3 branches in Hanoi, Da Nang,
Thanh Ho Chi Minh City with a staff of nearly 6,000 employees who are officers,
qualified engineers and skilled workers that are organized and operated under the
Northern European management methods.

Weaknesses: Has not optimized workers for production, the competitiveness of the
company is limited by the starting point is a state company.
II.

Industry Analysis

Competitive pressures provider: the closed production process from planting,
processing of raw materials, electricity, chemicals, pulp and paper production to the
stage of maintenance and transportation. The company has no competitive pressures.
Competitive pressure from customers: Customers include retail customers and
distributors. For retail customers, the company has difficulty in competition with
Chinese products. The offer for distributors in overseas markets is being pressed on
prices. So the price is always a pressure for Company.
Competitive pressure from potential competitors: The trademark registration is
necessary for enterprises in foreign markets. Potential opponents more or less, their
pressure strong or weak will depend on the following factors:
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+ Attractiveness of the industry: This factor is reflected by indicators such as
rates of return, the number of customers, number of enterprises in the industry.
+ Barriers to enter the industry: these are factors that make the entry into an
industry more difficult and costly.
Competitive pressure from substitutes: for paper products, there is not a replacement
currently.
Competitive pressures from the sector: For companies in countries, there are not any
companies to compete with the Bai in terms of quality and price, currently.
Therefore, the SWOT analysis and industry analysis shows the company has capacity
to joint ventures with PaperlinX Company to expand in Australia with product is
paper.

Strategic Objective:
The company always uphold their advantage to compete with other businesses.
The company always aims to become one of the largest global company in the field of
paper products.
COMPANY’S BUSINESS STRATEGY
I.

Human source

It has an important role in laying the foundations of creating offshore companies to
create competitive advantage to the company's international business. The investment
business with a company in Australia and other countries on environmental job
market, culture, legal system, economic system and politics so Human Resource
Administration has an especial important role, contributing to the success in the
business of the company.
The selection of personnel must be carefully carried out and considered before making
a decision. Companies need to choose those who qualified, active, speak English
fluently, adapt, easy to drive to work in the foreign country.

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For managers, we should recruit experienced, qualified and capable people who
quickly adapt to new conditions, have knowledge of laws and local culture. After
selection is complete, the company will train them with necessary skills such as
communication, operating machinery, ... build a reasonable remuneration for each
employee so they devote their efforts for the Company.
II.

Marketing

The objective of this strategy is to introduce products to customers. The more
customers know the company's product, the more this strategy gains effectiveness.
Marketing strategy will be based on the distribution system of the joint venture
company in Australia. Besides that, the company needs to build an effective
advertising campaign to promote products worldwide in the shortest time.
III.

Finance

There must be a clear division of profits, the contract terms must be discussed and
approved by two sides. For the Bach Dang company, they should make detailed plans
for each period, each year to determine the financial resources to maintain the
company's activities, and provide protocols for reporting period of 5 years.
IV.

Management frame

Bai Bang Paper Company joint venture PaperlinX in Australia, the company will open
a representative office in Australia to coordinate with the joint venture for the
management of work.
CONCLUSION
The activity that Bai Bang Paper Company makes the joint ventures with
overseas companies to expand market is a right step in this integration period,
conformably the general trend of the world. Besides benefit factors, it also confirmed
the value and position of the company in the paper industry in particular and business
in general. But in the process of expanding markets, the Company cannot avoid
difficulties of politics, law and culture of Australia so the company must carefully
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research to find out solutions in each case so that they can quickly overcome
difficulties and accelerate the market expansion.

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APPENDIX

POLITICAL RISK

POLITICAL RISK

B.01
Nominal GDP (Unit: US Billion dollar)
Rank

Country

2007

2008

2009

1

Germany

3,321

3,668

3,060

2

France

2,594

2,866

2,499

3

Britain

2,804

2,674

2,007

4

Italia

2,105

2,314

1,988

5

Spain

1,440

1,612

1,397

6

Russia

1,290

1,676

1,164

7

Netherland

777

869

743

8

Turkey

659

729

552

9

Swedish

455

493

452

10

Belgium

454

506

434

( />B.02

HDI

Country
HDI Value
GDP per
Life
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Rank

Capita Rank

Expectancy at
birth (years)

High Human Development
1

Norway

0.939

3

78.4

3

Canada

0.936

6

78.7

6

United States

0.934

2

76.8

9

Japan

0.928

11

80.8

11

Switzerland

0.924

5

78.8

14

United Kingdom

0.923

19

77.5

17

Germany

0.921

14

77.6

24

Hong Kong, China

0.880

20

79.4

33

Czech Republic

0.844

39

74.7

39

Chile

0.825

48

75.2

B.03

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Political risk in 2009
Country

Score

Country

Score

Australia

9.54

India

5.83

New Zealand

9.27

Indonesia

4.93

Singapore

8.64

Taiwan

4.91

Germany

8.33

Malaysia

4.78

United Sates

8.05

Japan

4.77

France

7.63

Korea

4.39

China

7.62

Philippines

3.42

Britain

7.40

Thailand

2.76

B.04

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Estimated per capita GDP in purchasing power parity (PPP)
Rank

Country

F

GDP per capita PPP1 Estimated GDP
(U.S. $)

per capita (U.S. = 100)

United States

33,836

33,836

2

Switzerland

36,247

28,697

3

Canada

20,822

26,423

4

AUSTRALIA

21,492

25,721

5

Japan

35,517

25,590

6

Britain

24,228

22,882

7

Republic of Czech

5,156

13,203

8

Hungary

4,772

11,232

9

Mexico

4,921

8,383

2,809

6,338

10

(John J.Wild, Kenneth L.Wild, Jerry C.Y.Han, International Business, Prentice
Hall, page 124)
B.05

1 PPP (Purchasing power parity) – Purchasing power parity, the relative ability of the currencies of

two countries that can buy the same "basket" of goods in two countries.

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