Nghiên cứu năng lực cạnh tranh của tổng công ty bia – rượu – nước giải khát hà nội (HABECO) tt tieng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

TA MINH HA

STUDYING THE COMPETITIVENESS OF THE HANOI BEER
ALCOHOL AND BEVERAGE JOINT STOCK CORPORATION
(HABECO)

Major

: Business Administration

Code

: 9.34.01.01

SUMMARY OF THE THESIS

HANOI, 2019


The work was completed at

GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Supervisor: 1. Assoc. Prof.PhD. Hoang Van Hai
2. Assoc. Prof.PhD. Tran Thi Lan Huong

Reviewer 1: Assoc. Prof.PhD. Bui Huu Duc

Reviewer 2: Assoc. Prof.PhD. Bui Van Huyen

Reviewer 3: Assoc. Prof.PhD. Tran Minh Tuan

The dissertation will be defended before the thesis review council of the Academy at
the Graduate Academy of Social Sciences at

hour

minute, day month year.

The thesis can be found at:
- National Library of Vietnam
- Library of Graduate Academy of Social Sciences.


INTRODUCTION
1. The urgency of the topic
Enhancing competitiveness is currently paid great attention in many
countries and businesses (enterprises) in the world. In Vietnam, this issue has
become more urgent, in the context of active and positive international and
economic integration, Vietnam's economy has been deeply integrated into the
global playing field. Therefore, in order to be able to compete and overcome
foreign enterprises, Vietnamese enterprises need to constantly improve its
competitiveness.
Beer - Alcohol - Beverage Industry is an important economic sector, producing
many products to meet the essential needs of people, domestic needs and
exporting needs in the world. In Vietnam, beer is one of the items that account
for a large proportion of consumer’s demand, beer accounts for 94% of total
alcohol consumption and 31% of the total beverage market. In 2018, the

growth rate of this industry reached 5.7% - the highest among the 10 countries
with the largest market size [24]. According to the General Statistics Office,
the Beer - Alcohol - Beverage Industry sector contributes annually to the State
budget with impressive figures, in 2018, the whole sector paid over VND
50,000 billion to the State budget. In addition, the industry creates jobs for a lot
of workers with relatively high and stable income.
According to statistics of the Vietnam Beer-Alcohol-Beverage Association, as
of 2018, the country has 110 breweries located in 43 provinces and cities.
According to the planning for development of Vietnam's beer, alcohol and
beverage industry by the Ministry of Industry and Trade to 2025, with a vision
to 2030, by 2020, the country will produce about 4.1 billion liters of beer; by
2025, the beer production scale will increase to 4.6 billion liters; By 2035,
domestic beer production will increase to 5.5 billion liters. In order to develop
beer, alcohol, and beverage industry, enterprises in the industry need to
research enough opportunities to seize and develop, besides, it is vital to be
prepared to deal with increased market challenges. [89]
One of the enterprises having a very good position in this industry is the Hanoi
Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) with over 60
years of establishment and development. The Corporation has experienced
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many ups and downs through many historical periods, gradually made a deep
impression in the minds of customers not only in the Hanoi market but also
nationwide and offerred products to access the regional and international
markets. The main product of the Corporation is beer, with special know-how
accompanying the development of the Corporation. After many years, its beer
still retains the traditional flavor and image in the minds of consumers. With
the 3rd position in the beer industry's share, sales increased steadily over the
years from VND 6,710 billion in 2013 to 7,867 in 2017 with consumption of

766 million liters. However, since 2017, the Corporation's sales volume and
revenue has showed signs of decline due to the fierce competition of
enterprises in the industry. Therefore, the reason for choosing the author's topic
comes from certain grounds:
Firstly, Vietnam is a signatory and member of many economic
organizations in the world. With fierce competition in the industry, especially
when Vietnam joined many major economic organizations such as ASEAN,
APEC, WTO and most recently the CPTPP. This is a great opportunity for
Vietnamese enterprises in general and HABECO in particular to expand the
market, improve the reputation and bring Vietnamese enterprises' brands to the
world. However, the Corporation faces huge challenges of domestic as well as
foreign enterprises in order to maintain market share and reputation. Therefore,
improving the competitiveness of HABECO is necessary for the Corporation to
compete effectively and enhance its position in both domestic and international
markets.
Secondly, the Corporation introduces a number of different types of beer to
meet relevant market segments. However, with the fierce competition in the
market, rival businesses often have new products to meet the changing and
growing needs of consumers. Sabeco still holds the largest market share in the
beer market, but its revenue is lower than Heineken and HABECO are
experiencing a sharp decline in both revenue and market share. In 2018,
revenue decreased by 5%, profit after tax decreased by 23% compared to 2017,
this is a very worrying issue for HABECO. The consumption trend of
customers has changed dramatically from the intermediate market to high-end
2


market. This has greatly changed the production mindset of businesses. If the
Corporation does not quickly research and provide suitable products, its
competitiveness will be reduced.

Thirdly, the market area of the Corporation is narrowed due to the lack of
investment worthy of expanding the market. In 2014-2017, the company's beer
market witnessed the strongest growth, especially in the Southern region, but
this market share is gradually being occupied by other companies, especially
by a very strong competitor known as Sabeco, and the Northern market has
also decreased. This is alarming because the North market has been the
company's main market for many years. Another problem is that the high-end
market segment is being occupied by foreign investors. In 2015, the
Corporation launched Truc Bach beer product to enter this market, although it
has received good feedback but it has not yet brought significant results. In
2018, the Corporation's market share and consumption area continued to be
narrowed to 15% of the market share compared to 17% in 2017, this is a sign
of the decline in the competitiveness of the Corporation.
Because of the above reasons, the PhD student decides to chose the topic:
"Studying the competitiveness of Hanoi Beer Alcohol Beverage Joint Stock
Corporation (HABECO)" as the topic of the dissertation.
2. Study purposes and objectives
2.1. Study purposes
Study and propose solutions to improve HABECO's competitiveness by
2025, with a vision to 2035.
2.2. Study objectives
From study purposes, the dissertation focuses on the following tasks:
- Systematize the theoretical issues on competition and competitiveness,
clarify the meaning of improving the competitiveness of enterprises. Develop
criteria framework to evaluate the constituent elements of competitiveness.
- Analyze the actual situation and the components of the competitiveness
of HABECO.

3

- Develop a study procedure, conduct surveys, collect ideas from
employees and customers, and calculate results to analyze the situation and
factors affecting the competitiveness of HABECO
- From the strengths and weaknesses of HABECO, the author proposes
solutions to enhance the competitiveness of HABECO with a vision to 2035,
recommending to the macro management agencies on the competitiveness of
enterprises in general and beer, alcohol and beverage-industry businesses in
particular.
3. Object and scope of the study
3.1. Object of the study
The study object of the dissertation is the competitiveness of Hanoi Beer,
Alcohol and Beverage Joint Stock Corporation.
3.2 Scope of the study
* Regarding content: The dissertation focuses on the theoretical and
practical basis of competition and competitiveness of HABECO including the
following elements: governance capacity, human resource capacity, financial
capacity, marketing capacity, production technology capacity and corporate
culture.
* Regarding space: Analyzing and evaluating the competitiveness of
HABECO through employees of the specific Corporation: Parent Corporation;
Me Linh - Hanoi Beer Factory; Hanoi Beer Trading Joint Stock Company
(HABECO - TRADING.,JSC) specializes in draft beer business; Hanoi Beer
Trading Co., Ltd (One member) consumes bottled beer and canned beer. The
study is conducted mainly in the North which is the main market of HABECO.
* Regarding time: Analyzing and assessing the reality of the
competitiveness of HABECO in the period of 2013-2018, proposing solutions
to improve the competitiveness of the Corporation by 2025, with a vision to
2035.
4. Methodology and study methods of the dissertation

The dissertation is based on a combination of the following study methods:
- Method of descriptive statistics

4


The dissertation used many sources of data from the General Statistics
Office, Ministry of Industry and Trade, Vietnam Beer - Alcohol - Beverage
Association, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation,
previous documents, newspapers and study reports. These documents were
gathered by the PhD student to analyze and assess the reality of the
competitiveness of HABECO.
- Method of synthesis, analysis, comparison
In addition to the documents collected from the Corporation and its
subsidiaries, the PhD student also collects secondary documents from specialized
newspapers, magazines, documents from seminars and websites whose content is
related to the topic.
- Method of interviewing experts: The author collected opinions of
experts, researchers in the field of competition through seminars and
exchanges. Focus on meeting and collecting opinions of the leading officials in
the Corporation; then, built up an appropriate questionnaire.
- Methods of investigation and survey
+ The author conducted a survey of 400 employees of Hanoi Beer Alcohol
and Beverage Joint Stock Corporation (HABECO) and 300 customers who are
HABECO's target markets.
+ Customer survey data through surveys and interviews conducted in the
period from April 2018 to October 2018
5. New contributions to the science of the dissertation
Firstly, the PhD student offers 6 elements that make up the
competitiveness of HABECO: (1) Management capacity; (2) Financial

capacity; (3) Human resource capacity; (4) Marketing capacity; (5) Technology
and production capacity; (6) Corporate culture. Impact factors are: (1) Policies
and laws; (2) Population; (3) Economy; (4) Nature; (5) Competitors; (6)
Assessment of customers.
Secondly, from the results of surveys and direct interviews, the dissertation
determines the influence of each factor on the competitiveness of HABECO.
After testing the model and study hypotheses, and the results are satisfactory

5


and ensure reliability. From these results, the dissertation proposes
recommendations to improve the competitiveness of HABECO in the future.
6. Theoretical significance and practical significance of the Dissertation
6.1. Theoretical significance
There are many studies focusing on competitiveness in many different
fields but there are barely of those that studying on the competitiveness of beer,
alcohol and beverage enterprises as well as those centered on HABECO. The
dissertation has sucessfully given the concept of Competitiveness of beer,
alcohol and beverage enterprises. Developing the components of
competitiveness and analyzing the factors affecting the alcoholic beverage and
soft drinks industry.
6.2. Practical significance
Firstly, HABECO is an enterprise with more than 60 years of
establishment and development, however, in recent years, the enterprise has
experienced a decline in its output and is gradually losing its position in the
market. The dissertation gives a comprehensive view of the Competitiveness of
this Corporation over the years, emphasizing the successes achieved and the
limitations that from which help to propose advanced solutions in the future.
Secondly, conducting surveys and taking model accreditation related to the

Competitiveness of HABECO. From which there have been findings found in
term of practical significance on the Competitiveness of HABECO, used as the
basis for desging solutions and recommendations.
Thirdly, the dissertation is a reference for researchers, students, and those
who are interested in the Competitiveness of HABECO. Business
administration manager and state management agencies therefore draw lesons
and apply in making strategic planning and improving competitiveness.
7. The structure of the Dissertation
In addition to the introduction, conclusion and references, the dissertation
has 4 chapters
Chapter 1: A summary of the situation being investigated that related
to the topic of the Dissertation
Chapter 2: Theoretical and practical basis for enterprise competitiveness
6


Chapter 3: Analyzing the competitiveness of Hanoi Beer Alcohol
Beverage Joint Stock Corporation
Chapter 4: Solutions and recommendations to enhance the
Competitiveness of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation
Chapter 1
A SUMMARY OF THE SITUATION BEING INVESTIGATED
THAT RELATED TO THE TOPIC OF THE DISSERTATION
1.1 An overview of the research works focusing on competitiveness
1.1.1 Foreign documents on competitiveness
1.1.1.1. The concepts of competition and competitiveness
The concepts of competition and competitiveness have been around for a
long time. There are a great number of researchers interested in bringing out
different concepts but have not yet to come up with a unified concept of
Competitiveness. Competitiveness can be considered and studied under 4

levels: National Competitiveness, Industrial Competitiveness, Enterprise
Competitiveness and Product Competitiveness. All of these 4 levels have a
close relationship with each other, however the dissertation only focuses on
researching the competitiveness aspect of the enterprise.
1.1.1.2. Competitiveness models
a. SWOT matrix model
b. Diamond model
c. Five forces model
1.1.1.3. Factors constituting enterprise competitiveness
There have been a large number of works and economists conducting
studies on the criteria and factors affecting the competitiveness of enterprises.
Each study analyzed those factors from different perspectives.
Sankrusme, Sinee (2011) in the study titled " Marketing Strategy
Competition among Beer Companies before Liquor Liberalization" [109],
analyzing marketing strategies of some domestic and imported beer companies
in Thailand. The marketing strategies of local beers brands are product-related
strategies such as product diversification, local wine sales with beer, pricing
strategy, communication strategy, distribution strategy, brand strategy and
7


strategies focused on customer satisfaction, after-sales services. Some
companies use the SWOT matrix to devise competitive strategies in the
increasingly fierce beer market.
A study on a well-known Japanese brewery named Sapporo with the title
of “Holdings Limited 2006 company profile edition 1: SWOT Analysis” [117],
emphasizing the decisive factor to maintain and improve the quality of beer
products is raw material input, therefore, the Company tighten the controls
over its suppliers. The study uses SWOT matrix to analyze the strengths,
weaknesses, opportunities and challenges of the company in a fierce

competition of domestic and foreign brewing companies in the Japanese beer
market.
1.1.2. Domestic studies on competitiveness
Nguyen Viet Lam (2014), "Discussion the methodology to determine the
Competitiveness of Vietnamese enterprises " [39] proposed a list of typical
criteria and component elements that constitute the Competitiveness of
enterprises. The list includes 2 groups, 10 criteria and over 20 different
elements. Group 1 consists of the criteria related to production and business
efficiency: Including sales and market share; Production and business results
include 5 elements: Costs per VND 1,000 of net revenue, profit per VND 1,000
of net revenue, coefficient of return on capital employed; coefficient of
profitability of assets, profitability of equity. Group 2 consists of the criteria
related to business capacity in the value chain of enterprises and creating value
for customers which includes 8 indicators: Capability of capital, human
resources, scientific and technological level, management and innovation
ability, marketing planning ability, marketing mix capability, ability to provide
services, brand power of enterprises. In addition, the author also presents the
methods of assessing and measuring the value of indicators as well as
qualitative and quantitative factors such as the method of expert interviews and
appropriate audience interviews. The article also mentioned the way to
determine the weights of the criteria by expert method, multivariate regression
method, and general method. This is one of the articles giving a complete set of

8


criteria as well as methods to evaluate the Competitiveness of enterprises and is
a very good basis to use in this dissertation.
1.2. An overview of the research materials that focus on alcoholic beverage
and soft drinks industry as well as Hanoi Beer-Alcohol-Beverage Joint

Stock Corporation (HABECO)
Up to the time of research, there have not been many complete studies on
the alcoholic beverage and soft drinks industry and on the Competitiveness of
HABECO. There has not been any in-depth study focusing on the
Competitiveness of the Corporation either.
1.3. The gaps between previous studies and the research direction
During the research process, by reviewing domestic and foreign
documents on Competitiveness, the author inherits and finds the gaps of the
previous studies.
Firstly, there are many different concepts about Competitiveness given by
researchers from three perspectives as follows: National Competitiveness,
Industrial Competitiveness, Enterprises Competitiveness. These concepts are
quite complete, but from the perspective of Enterprises Competitiveness of
beverage businesses, it requires a concept that is consistent with the research
topic.
Secondly, the evaluation criteria and factors affecting the Competitiveness
given by these studies are quite diverse but are put under different approaches,
however the alcoholic beverage industry has its own characteristics and there
have not been

any study poiting out the elements that constitute the

competitiveness of alcoholic beverage and soft drinks businesses. Therefore,
the doctoral student needs to give out the constituent elements of the
Competitiveness of enterprises.
Thirdly, the research studies on the Competitiveness of enterprises trading
in beer, wine and soft drinks are still in small number and incomplete, most of
which are only the reports that circulated in the industry. Actual situation and
9

the industry statistics have not been summarized and analyzed thoroughly in a
scientific work. A number of related works have not been studied in the
perspective of enterprise management, therefore, this is the gap for the doctoral
student to further clarify in the dissertation.
Fourthly, there is a lack of research works on HABECO and the
Competitiveness

of

this

Corporation.

Quantitative

research

on

the

Competitiveness of HABECO is not much, so the mission of the PhD student
is to rely on the framework of quantitative analysis and research to suggest
recommendations and solutions.
The recommendations and solutions for the industry are largely through
reports, not based on the enterprise management platform on competitiveness.
Therefore, the author offers research directions for the dissertation based
on the gaps found:
- Proposing a model of components constituting the Competitiveness of

HABECO
- Combining qualitative and quantitative researchs as well as specialized
knowledge and practical situation of HABECO through investigation, surveys
and summaries to analyze the constituent elements of the Competitiveness of
HABECO.
- Proposing solutions to improve the Competitiveness of HABECO
focusing on beer products.
Chapter 2
THEORETICAL AND PRACTICAL BASIS ON ENTERPRISE
COMPETITIVENESS
2.1. Concept of enterprise competitiveness
2.1.1. Compete

10


According to English-Vietnamese dictionary (2002), “Competition is a
rivalry between enterprises in the same market to win more customers and
increase the sales...” [22]
According to Michael Porter, the goal of competition is to take over
market share. The nature of the competition is to seek out profit, the profit
higher than what the enterprise is currently having. In his book “Competition
Strategy”, he states that “The factor of price is the method of competition
commonly used by the participants, when an enterprise lowers the prices, the
rivals will do the same, the differences between products are the cause of
competitiveness between enterprises, enterprises create uniqueness by making
their products different, which will improve value, and so customers accept a
higher and superior price than the additional shares” [55, pg 34-35]
Over all, for competitions in this new era, enterprises do not need to focus
on rivaling against one another to take over more market shares and benefits,

but to go their own ways and make their products unique compared to all
others, to have their own market, with high sales and growth but without
rivaling against one another.
2.1.2. Benefits for competing
Benefits for competing can be superior traits that the enterprise has or
creates, so as to make products or traits superior than the rivals and gain higher
sales in the market.
2.1.3. Competitiveness
The author presents the concept of competitiveness of Beer-AlcoholBeverage enterprises: “Competitiveness of beer-alcohol-beverage enterprises
are shown in joint improvement of the resources of the enterprises, aiming to
make products of outstanding and impressive quality, flavor and color, to
satisfy the customers more than the rivals.”
2.2. Aspects of competitiveness of beer enterprises:
2.2.1. Governance capacity
2.2.2. Finance capacity
2.2.3. Human resources
2.2.4. Marketing capacity
11


2.2.5. Technology and production
2.2.6. Enterprise culture
2.3. Aspects affecting competitiveness
There are many aspects that affect enterprises competitiveness but the
dissertation focuses on aspects that have strong impacts on enterprises in beeralcohol-beverage industry: policies, law, population, consumer tastes,
economy, environmemt, regional culture, rivals, and consumers’ satisfaction.
2.4. Experience on improving competitiveness of some beer-alcoholbeverage enterprises, and lesson learned for HABECO
2.4.1. Heineken International
2.4.2. China Resource Breweries Ltd
2.4.3. Experience of Saigon Beer-Alcohol-Beverage Joint Stock Corporation

2.4.4. Lesson learned for Hanoi Beer-Alcohol-Beverage Joint Stock
Corporation (HABECO)
First, about governance capacity, if the company cannot establish a proper
administration apparatus that can adapt to the changes of the economy and the
demands of the market, or converge senior leaders who are competent, experienced
and qualified, then it is very difficult to set guidelines for the development of the
company.
Second, about human resources, companies should pay attention to the process
of fostering, training, encouraging, motivating and encouraging their members to
voluntarily participate in training programs, to self-improve and to contribute into
the development of the company.
Third, about financial capacity. Enterprises need to take effective measures
to build strong and stable financial sources to not only ensure that the
production and business activities of the company take place smoothly, but also
to increase trust with investors and banks, which are indispensable sources of
capital mobilization when businesses embark on new projects.
Fourth, about Marketing. Marketing strategies need to be planned and
changed regularly to suit market needs with an unchanged goal of satisfying
customer needs to the maximum, and in the most different, unique way.

12


Fifth, regarding technology and production, enterprises, especially those in
the business of beer-alcohol-beverage, need to always improve and update new
technology lines and modern production processes to be able to improve the
quality of products, reduce the consumption of raw materials and fuel, and be
environmentally friendly.
Thứ sáu, about enterprise culture. A company that has the standards or values
which people can share and adhere to, such as work culture, mannerism, etc.

will create a friendly, positive, inspiring working atmosphere, encouraging the
working spirit of the members in the company to the max.
Chapter 3
ANALYZING THE COMPETITIVENESS OF HANOI BEER
ALCOHOL BEVERAGE JOINT STOCK CORPORATION
3.1. General view of HABECO
3.2. Analysis results of competitiveness of HABECO
3.2.1 Governance capacity
The survey results show that employees have a high opinion about the
company's leadership, In order to manage and operate the activities well, the
corporation built a system of subsidiaries, associates and affiliates to
implement the company's activities effectively. Every quarter, every year, the
units, subsidiaries and affiliates must send papers, books and reports in full
details about the operation situation to the parent company.
3.2.2. Actuality of finance capacity
Studies show that the financial status of the company is healthy, with good
financial autonomy. The corporation does not suffer from financial imbalance,
does not use borrowed capital, and ensure sufficient finance for its production
and business activities. The total capital of the company has increased steadily
over the years and has no borrowed capital, so the enterprise does not suffer
from much pressure. It is because the state divestment route has not been
completed, so the company still has to focus on solving this financial problem.
3.2.3. Actuality of human resource capacity
Human resources of enterprises show that those with good qualities and
traits such as dynamism, responsibility, etc. and those with long-term working
experience, underestimate the competitiveness of HABECO. Thereby we see
13


that the people who have worked for a long time in their businesses have

undergone periods of development of the business and they see that there were
golden periods when HABECO products of beer, alcohol and beverages
dominated the entirety of market of the northern and central Vietnam.
However, nowadays there are many products of the same type in the market
that are competing and dominating HABECO's market, thus the more
experienced and concerned the workers are to the development of the
company, the more they underestimate the competitiveness of HABECO.
3.2.4. Marketing capacity
3.2.4.1. Market study work and target market selection work
HABECO's market office has always performed well in market study
activities at the company. The company constantly conducts researches, some
of which are grand research plans that the company has to rely on professional
and big-name market research companies like Nielsen, along with other
smaller, separated surveys.
3.2.4.2. Product policy
HABECO is currently trading in 3 main areas with beer, wine and soft
drinks. In particular, beer accounts for more than 70% of the company's total
output. Although the two categories of wine and soft drinks also contributed to
the profits of businesses, they were not significant.
The growth of beer consumption of the Corporation in the recent period is
slow, much lower than the 2006-2012 period, due to the impact of the
economic recession, the impact on consumption of products, and the
competition becoming more intense between imported beer products and
domestic beer enterprises.
3.2.4.3. Price policy
With fast-moving consumer goods like beer, price is not a prerequisite for
customers to choose which products to use. Therefore, depending on the brand
and quality, enterprises offer the most reasonable price suitable with
customers’ solvency but this is not the most effective tool to compete with this
product.

3.2.4.4. Distribution policy
Distribution is one of the key forces of the Corporation and must be
studied and built for many years. After 60 years of establishment and
development, HABECO has built a tight and synchronous distribution system
14


to form a network to bring products to customers in the fastest way and ensure
the quality of products.
3.2.4.5. Mixed promotion policy
This is a good sign, because nowadays customers no longer believe in
advertising programs or recommendations of businesses but often decide to
choose products based on the appreciation of acquaintances or customers who
have used the product, whether through chat or through reviews, comments on
the website of the enterprise or on online sales sites, social networks. This is an
aspect that HABECO needs to pay attention to and focus on exploiting for
more effective communication activities.
3.2.4.6. HABECO brand
The brand identity system of the Corporation is still quite inadequate. The
Corporation has not really invested properly in the process of building and
developing brands, the Corporation is taking positive steps to build a truly
distinctive brand identity system in order to attract the loyal customers of the
Corporation.
3.2.5. Beer production technology
3.2.5.1. Materials
In order to offer a finished product which is a good, cool beer for
customers, beer companies often have a relatively similar beer production
technology. The key to beer quality, taste, smell and color depends on the ratio
of the ingredients.
3.2.5.2. Technology and production

Hanoi Beer products are manufactured on production lines and technology
of the Federal Republic of Germany with fully automatic bottling lines,
ensuring quality, food safety and hygiene. HABECO's system of brewing
equipment is always modernized and automated at all stages: material
handling, cooking, water purification, rapid cooling, fermentation, beer
filtration, beer extraction, pasteurization, labeling, stacking pallets etc.
3.2.6. Current situation of corporate culture
Activities of building corporate culture of the Corporation have not been
methodically and properly cared for, although the Corporation's culture does
not become clear and specific documents, the tangible and intangible symbols
such as leadership style, management, relationships between employees have
many other forms of expression as well.
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3.3. Quantitative results
The author uses quantitative methods to test the scale and measure the
status of competitiveness of HABECO. Surveying and researching 2 main
subjects: (1) The Board of Directors, the employees and workers at the
Corporation and its member companies and production factories directly under
HABECO; (2) HABECO's customers in the North and Central regions as these
are the two main markets of the Corporation.
The reliability of the scale is assessed by the method of intrinsic
consistency through Cronbach's Alpha coefficient. Using the Cronbach’s Alpha
reliability coefficient method before analyzing the EFA factor to eliminate
inappropriate variables because these variables can create fake factors (Nguyen
Dinh Tho & Nguyen Thi Mai Trang, 2009).
After factor analysis, the criteria will be automatically extracted to create
new factors to include in the regression analysis.
The regression model table of factors affecting the competitiveness of the

enterprise according to the enterprise
Model

Coefficientsa
Non-standardized
Standardized
factor
factor
B
Std. Error
Beta
0.442
0.287
0.345
0.053
0.295
0.099
0.055
0.079
-0.267
0.054
-0.185
0.160
0.067
0.135

Constant
Finance
Administration
Human Resources

1
Marketing
Production
-0.039
technology
Corporate culture
0.491
2
2
R=0.770; R =0.593; R correction =0.586
F=84.187, Sig = 0,000

t

Level of
significance

1.544
6.492
1.792
-4.979
2.388

0.124
0.000
0.074
0.000
0.017

0.046

-0.029 -0.855

0.393

0.055

0.456 8.855

0.000

In the study, there are variables with large coefficient β, respectively:
Corporate culture (0.456), Finance (0.259), Human resources (-0.185),
Marketing (0.135) that are factors strongly affecting the competitiveness of the
enterprise.

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3.4. Factors affecting the competitiveness of Beer - Alcohol – Beverage
enterprises
The dissertation has analyzed in depth the factors affecting the
competitiveness of beer - wine - beverage enterprise, which are policies and
laws; Population and consumer tastes; Economy; Nature; Cultural regions;
Competitors; Customer satisfaction. Each factor has different levels of
influence on enterprises.
3.5. General assessment of competitiveness of HABECO
3.5.1. Success
Firstly, the Corporation's management apparatus is formed by leaders who
have both ability and vision, good leadership ability, a new generation of

leaders will create a new page in the development history of HABECO.
Secondly, the Corporation is using a well-qualified human resources team
through rigorous input recruitment with clear criteria to recruit the right people
for the right jobs.
Thirdly, the Corporation's finance is stable, the ability to turn around
capital well, without long-term debt is a solid foundation for the development
of the Corporation in the coming time when the Corporation has many plans.
Fourthly, marketing strategy is one of the weak aspects of HABECO, this
is an activity that the Corporation should focus on promoting and developing.
Fifthly, the corporation’s production technology is relatively modern,
meeting the current needs of consumers in terms of quality, as well as bottles,
product packaging, product preservation, keeping the flavor when it comes to
customers.
Sixthly, the corporate culture of the corporation was initially formed and
had clear manifestations at the corporation. The material or non-material logos
have been considered by the corporation and there are plans to build a
complete corporate culture for the Corporation. Since then, combining the
activities and relationships in the Corporation so that the Corporation is
growing and growing.
3.5.2. Limitations and causes

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Firstly, about management capacity. The management apparatus of the
Corporation has to be reorganized, so there is still the inconsistency and unity
in the Management Board, getting used to the new position takes quite a lot of
time. The State capital withdrawal has not been implemented completely,
resulting in the Corporation's operation plans and strategies, which have not yet
fully promoted the company's capabilities, leading to a decline in revenue in

2017 and continue into 2018.
Secondly, about human resources.
Because it is still a state-controlled corporation, human resource
management activities are still subject to many complicated documents, papers
and procedures, resulting in difficulties in the development activities of the
Corporation.
Thirdly, with reference to Financial activities. Finance of Corporation is
relatively stable, but because Corporation is managed by the State,
expenditures for investment are still limited. That leads to difficulties in
product development operation as well as Corporations’ profit and revenue
increase.
Fourthly, with reference to Marketing activities.
With reference to Marketing, market share of HABECO decreases from
20% in 2015 to 15% in 2018 and has decrease trend, it is worrying sign of
HABECO. About product, HABECO inherently develops about products for
target customers, who are common customers with intimate aroma and cheap
price. However, because of environmental effect, people’s income increase,
customers’ demand is changing towards higher grade beer with price that is
suitable for quality. They push “common” product of HABECO out of
“playground”.
With reference to distribution. HABECO’s distribution network is still
soft, the system of new distribution network has deployed for short-time, which
needs more time to develop, stabilize as well as draw on experience to change
limited sides of this system. Although Corporation’s distribution network
expands from North area to Central area, it focuses in an area, while Sabeco’s
distribution network covers all over the world.
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With reference to promotion activities. According to report about the cost

of corporation’s media, the cost of media increases annually (from 276 billion
in 2015 to 303 billion in 2017), which shows that corporation focused on
media, but reached not high effectiveness, it is expressed in decrease in
revenue growth, from 8.2% in 2015 to only 3.92 % in 2017. Although as
experts and researchers, demand for beer consumption in Vietnam increasingly
rises, beer production growth rate increase because of rising income fast and
young population, HABECO’s revenue decreases, which proves that marketing
operation of Corporation is not good. The frequency of advertisement
appearing on television and media is still less and advertisement is not still
interesting, so it has not make strong impression to customers. Even if the cost
of media still increase, it is not enough to go up the frequency of HABECO’s
products appearing on market. According to FPT Securities Joint Stock
Company, FPTS, North area and provinces of North Central including Thanh
Hoa, Nghe An, Ha Tinh account for about 35% of total beer consumption in
the country. Differ from other areas, Northern people have trend on preferring
draft beer and draught beer. Thus, HABECO transferred manufacturing
structure to increase draft beer production density in order to meet customers’
needs. Draft beer does not require over high selling and marketing expense, so
HABECO does not focus on investing and promote marketing operation, the
level of beer brand recognition in Hanoi is declining on the main market of
HABECO.
With reference to brand development. Brand identity system of the
corporation is still faint, cannot reach the public. Many people cannot
remember the slogans of Corporation because it is not impressed and relevant
to Hanoi. The corporation’s logo is quite diffuse and hard to remember, before
each affiliated company owned different logo, since the corporation has
department of brand identity, all affiliated companies use a general logo of the
corporation. In 2019, Corporation changed brand of identity system, but it has
not been widely deployed. HABECO’s brand communication activities are not
strong, the frequency is not high, the level of contact with customers is low.

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Thus, brand’s image of HABECO fades out in mind of loyal customer and does
not approach young customers who are main target market of HABECO.
Fifthly, with reference to manufacture technology. Corporation’s machine
meets current needs, but they want to diversify products, improve the quality,
they should need more devices. This issue still remains because of
Corporation’s finance. Revenue, profit decreased in recent years, so lack of
capital to invest in machine, device.
Sixthly, with reference to corporate culture.
Although, there are signs of material and non-material in corporation, it is
not clear, because corporation does not set corporate culture professionally and
completely. Corporation does not apprehend the aim and the value of setting
corporate culture. Moreover, In addition, the issue of state capital withdrawal
has not been "finalized," has not been negotiated with the partner who wants to
repurchase shares that is the Carsberg company, so that staff is still confused,
does not know the effect of capital withdraw to their works and life or not.
Chapter 4
SOLUTIONS AND RECOMMENDATIONS TO ENHANCE THE
COMPETITIVENESS OF HANOI BEER - ALCOHOL - BEVERAGE
JOINT STOCK CORPORATION
4.1. Opportunity, challenge to HABECO and develope orientation in
coming time
4.1.1 Opportunity
4.1.2 Challenge
4.1.3 Development trend of Vietnam Beer Industry in coming time
According ti FPTS, some trends will be changes in consumer need as well
as the effect of enterprises to manufature as folloing: high class trend, trend of

consuming beer with little alcohol or without alcohol.
4.2. Developed orientation of corporation to 2025 and vision 2035
Developed orientation of corporation is to focus on developing market,
enhance competitiveness, bring customers satisfy of quality products and
perfect service.
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Table 4.1 Some targets of HABECO to 2025
Average annual
Quantity
Target
growth (%/year)
(Million liter)
Revenue of industrial
7,0
production
Beer Types
5,0
891
Alcohol Types
10
23
Filtered Water
45,4
13
Profit before tax
1,7
Source: Department of Marketing
4.3. Some solutions to enhance competitiveness

4.3.1. Enhance ability of administrative
Each individual, managers have to study to enhance their level by
themselves by ways such as taking part in advanced management training class
in Corporation or out of Corporation, courses and workshops oversea will be
more effective. To change the form of management is to be more suitable as
using modern technical software, apps, artificial intelligence in all
administration activities, avoiding avoid the overlapping, rigid left over from
the old management perspective. Actively apply and promote the effectiveness
of ERP software.
4.3.2. Improving financial capacity
Focus on mobilizing and attracting investments in all economic sectors to
ensure sufficient capital for the investment in the Corporation's development.
Conduct the listing of stocks on the international stock market to attract more
foreign investments and improve business efficiency as well as HABECO
brand.
4.3.3. Improving human resources
Recruitment activities of the Corporation need to strongly base on the
actual demands of the company as well as the market and focus on the
weaknesses of the company, which are the human resources having a high
level of technical and technology skills and working at the production line.
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4.3.4. Solutions on Marketing
Organize regular market research on a large scale; Strengthen research and
development (R&D) activities; Maintain and stabilize the Northern market,
seek to penetrate deeper into the Central and Southern markets; Enhance the
capacity of machinery and equipment, effectively exploit the equipment that
has been put into production, research technological and technical solutions to
maximize the capacity and improve the quality of beer products; Plan and build

a professional distribution system; Diversify promotion activities to bring
product information to customers.
4.3.5. Solutions on production technology
The Corporation needs to review, inspect and re-evaluate all the machinery
and equipment in the Corporation's production line. Remove the old, outdated
machines and replace them with modern machines along with the latest
technology.
4.3.6. Solutions on perfecting corporate culture
Make complete plans and strategies on building the corporate culture of
the Corporation; Clarify tangible and intangible symbols to distinguish
appropriate elements in corporate culture. These symbols should clearly show
the specific nuances of the Corporation and express its goals, culture and core
values.
4.4. Some recommendations to the state management agencies
4.4.1. Recommendations to the Ministry of Industry and Trade
The Ministry should recommend to the State to improve the business
environment of Vietnam, create a fair competitive environment for enterprises
in the industry; Actively negotiate, sign, join and enforce agreements of
international economic organizations,
4.4.2. Recommendations to the Vietnam Beer-Alcohol-Beverage Association
- Promote the function of "a bridge" between enterprises in the industry
and state management agencies. Promote the ability of enterprises in the
industry to access the Vietnam Beer-Alcohol-Beverage Association in the
region and around the world.

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CONCLUSION
In the era of economic globalization as we see it, enterprises must

participate in a very tough competition to be able to maintain and develop their
market share in the market. The market for beer, alcohol and soft drinks is no
exception. Enterprises need to analyze the factors that constitute the
competitiveness to understand their strengths and advantages so that they can
take advantage and promote to seize opportunities. In addition, analyzing
competitiveness also helps enterprises identify weaknesses and shortcomings to
take measures to overcome and avoid risks in production and business
activities.
Hanoi Beer Alcohol And Beverage Joint Stock Corporation has undergone
more than 60 years of establishment and development and has left a deep
impression in the minds of customers nationwide and especially the customers
in the North market. With positive business results for many years, HABECO
is still on the way of developing and aiming at new opportunities in the market
where more and more competitors appear from the domestic and foreign
markets. Although measures have been taken, the revenue still declines in
recent years. In this dissertation, the author has an in-depth analysis of the
constituents and impacts on the competitiveness of enterprises producing beer
and alcohol in general and in-depth analysis of the constituents of the
competitiveness of HABECO. Based on an overview of previous studies as
well as through the discussion with experts, the dissertation built a model to
study the constituents of HABECO's competitiveness through factors such as
management capacity, financial capacity, human resources, marketing
capacity, production technology and corporate culture. The dissertation uses
qualitative and quantitative methods to analyze the contribution of factors to
the competitiveness of HABECO. From that, the advantages, limitations and
causes can be drawn up so that recommendations can be made to partly help
the Corporation to improve its competitiveness in the future.
The author has proposed 6 groups of solutions related to the constituents of
HABECO's competitiveness: management capacity, financial capacity, human
resources, marketing capacity, production technology and corporate culture. In

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