NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH A RESEARCH OF MOTORCYCLE OIL MARKET OF TOAN HUNG COMPANY INDUSTRY IN VINH PHUC PROVINCE Hanoi, April, 2023 NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH A RESEARCH OF MOTORCYCLE OIL MARKET OF TOAN HUNG COMPANY INDUSTRY IN VINH PHUC PROVINCE Supervisor: Pham Thi Quynh Hoa, MA Hanoi, April, 2023 Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B ACKNOWLEDGEMENT Firstly, I would like to thank my supervior, Ms. Pham Thi Quynh Hoa, for supporting me during the time I was completing my research paper. She always tries to take the time to comment and help me improve the shortcomings in the research paper. Secondly, I sincerely thanks to the Faculty of Foreign Languages, Business English Department at NEU for providing me with crucial and sufficient basic knowledge and theory in both linguistics and business fields as preparation for my career orientation in general and the internship program in particular, which have made a significant contribution to my project completion.
Thirdly, I would like to thank Toan Hung Industry Vietnam for giving me the opportunity to practice at your company. During my internship at the company, colleagues and managers at the company helped me a lot in collecting data and collecting responses for my survey. Finally, I would like to thank my family and friends for their support during my study and work at NEU. My family is my biggest support, contributing mainly to my achievements.
Friends help me overcome my learning difficulties and give me ideas for research. Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B EXECUTIVE SUMMARY Vietnam's economy is on a strong growth momentum, industrial production is increasing, and transportation is developing. People's living standards are improving, domestic demand is soaring along with political and economic stability, infrastructure and investment environment is increasingly improving are attractive factors not only companies already present in the domestic market but also new foreign enterprises. In which, Vietnam's lubricant market is growing strongly.
The above development factors ensure the demand of all market segments in the lubricant industry, of which the motorcycle lubricant industry is the fastest growing lubricant industry and also the high growth segment. The number of registered vehicles for motorbikes is 36 million units. Thus, the average consumption of motorbikes is 3-4 liters/year. The total volume of lubricants is about 264 million liters, of which motorcycles account for 34%.
The trend of lubricants in the next 5 years will grow at an average of 4-6 percent/year, while the world average is only about 1. The study of the competitive situation in the motorcycle lubricant market in Vietnam and the study of the lubricant market by Toan Hung Industry company provides useful lessons to apply in the author's work practice. il Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B LIST OF ABBREVIATIONS ASEAN: The Association of Southeast Asian Nations CV: Commercial Vehicles FDI: Foreign Direct Investment HR: Human Resource OEMs: Original Equipment Manufacturer PLC: Petrolimex QC: Quality Control THIV: Toan Hung Industry Vietnam ill LIST OF TABLES Table 1. Total sales of motorcycle lubricants in 2019 of THIV.
Total sales of motorcycle lubricants in 2020 of THIV. Price in promotion Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B LIST OF FIGURES Figure 1. Vietnam automotive engine oils market, volume share, by vehicle type, "02000. Market concentration of Vietnam automotive engine OoIÌs.
THIV’s Organization SŠfTUCfUT€.- -- St ng 4 Figure 4. Income and employment theory. sales and market share of Vietnamese lubricant in 2022. Market share of lubricant companies in Vietnam (2022).
Types of Vehicles. ng HH nh 28 Figure 10. Useage time Of Vehicles. Vehicle maintain Íf€QU€TICV.
What brand customers trust MOS.-- 5+5 5+ +++£+++++sex+ss2 30 Figure 14. Customers’ awareness of Toan Hung OIÏ. Experience of CUSẦOTT€TS.- + 13 E3 9 vn ng ng ng 31 Figure 16. Price of Toan Hung oil evaluafIOT.
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500068906 ii LIST OF ABBREVIATIONS.csssssssscsscsscsscsccssssesssesssssssssssssssesssssneesssneees iii LIST OF TABLES. 00 00005089088666 i TABLE OF CONTENTS .cccscsssssscsscssssscsscessnssssssssnesscssesssscsscescsscsssnsssesseeees iii INTRODUCTTIONN.Purposes/ Oj]©CẨÏVS. 0 sọ cọ Họ cm HH 0 0000400000100 8886 2 4.Research Que©sSfÏOINS.S CO c0 0 ọ ọọ Lọ. Họ Họ TT.0000400 094688906886 3 CHAPTER 1: INTRODUCTION OF TOAN HUNG INDUSTRY COMPANYY.
A brief description of the C0IDAIIV.- --- 5 5 4 1n HH HH ng ng 4 1.3 Business philosophy and quality policy .o <5 cọ ng 000 000009 0896000 10 CHAPTER 2: THEORETICAL FRAMEWORK.cccsSSSS=Se=see 15 2.2 Factors influencing the imaTT ÍK€Í,.1 Factors influencing the Supply .2 Factors influencing demand. Consuming products’ defÏnnÏ{ÏOIn.4 Solutions for consumption of products Đeffer.5 Maket of motocyle Oil .6 Current market motorcycle oil in iefnnam.- << «s5<< sses« se 23 CHAPTER 3: FINDINGS AND DISCUSSION.c co SSSSSĂS1Seesee 27 3.1 Current reality of Toan Hung Oil in Vinh Phuc market:. Personal information of respondeniS:.- - -- «+ +- «+ ++se++eesseerss 27 ill Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B 3.2 Brand aWaT€TSS. -- Án TH TH HH HH ve 30 3.
Evaluation customers’ satisfaction With factors. Price of Toan Hung IÌ. Toan Hung Oil PrO(ÌUCES. Toan Hung Oil Marketing.
ve 33 CHAPTER 4: RECOMMENDA TIONS.2 Changing packaging and DFÏẨÏTIE:.3 Toan Hung Oil mark€ÏTIE. GỌI 0 0009008 050 41 APPENDIX 1V Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B INTRODUCTION 1. Background Due to rapid industrialization and increased vehicle sales across the country, the automotive engine oils market in Vietnam has been observed to be growing at a steady rate in terms of both sales volume and revenue. Vietnam's market lacks refining capabilities, relying on imported base oil for lubricant blending, despite the presence of lubricant blending plants.
Classified by automotive end users, it could be said that there are three main types: Commercial vehicles, motorcycles, passenger vehicles. Vietnam automotive engine oils market, volume share, by vehicle type, 2020 It can be seen from the chart that in 2020, motorcycles and commercial vehicles led the market for the end users in the automotive lubricant segment, 76% and 20% relatively. Passenger Cars held a low share due to the lower motorization rate in Vietnam and the high preference of motorcycles over cars as modes of passenger transport. During 2021-2026, the motorcycles segment is expected to register the highest growth of about 4.89% in engine oil consumption, followed by the CV segment (2.
The growth is likely to be driven by strong demand for mopeds and motorcycles in the country over the next five years. THIV mainly focuses on research and production of motorcycle lubricants, the most dominant segment in the engine oil market. This is both a potential market and a competitive market. Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B Market Concentration Consolidated- Market domination IVlarket Fragmented- Highly competitive market Figure 2.
Market concentration of Vietnam automotive engine oils This market of Vietnam is standing at the consolidating level. Therefore, in order for THIV to become stronger and have a larger market share in the Vietnamese market in general and the Vinh Phuc province market in particular, THIV needs to study carefully about the market to find the right directions for their product market. Rationale THIV also has a sub-sector that is manufacturing and distributing motorcycle oil product lines. All of these product lines have been thoroughly researched and tested before being introduced to the market, and have existed in the lubricant market for over 7 years.
However, contrary to what the company expected, the product did not resonate well, the market share in Vinh Phuc is still very small. Therefore, “A research of motorcycle oil market of Toan Hung Industry Company in Vinh Phuc Province” has chosen to fulfill this gap. Purposes/ Objectives The study will analyze the market of motorcycle oil products in Vinh Phuc province, find the factors influencing the market of motorbike oil products. Based on the above analysis, solutions have been drawn to help THIV increase its market share in the lubricant distribution market and its revenue.
Research Questions The research is expected to answer the 3 following questions: e What is the current situation of the oil market for motorcycles in Vinh Phuc? e What are the factors influencing the market of motor oil products of THIV in Vinh Phuc province? Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B e What should the company do to increase the market share in the motorcycle oil products in Vinh Phuc? 5. Scope Geographical research scope: research in Vinh Phuc province, which is divided into 2 areas: urban areas and rural areas. Research scope on consumer income: Consumers with income below 5 million VND, consumers with income equal to or over 5 million VND Time of scope: in 13 days, from March 7", 2023 to March 20", 2023 6. Research methodology: Quantitative research: This quantitative study makes use of questionnaire design, data gathering, and data processing.
Google Forms is used to process the acquired data in order to run appropriate experiments on research ideas and, as a consequence, analyse and discuss the research findings as well as make study conclusions. Primary data: The questionnaire survey is used to collect primary data in order to dig further into the three research questions. The poll included 90 qualifying respondents who completed the questionnaire and multiple-choice questions, all of whom are consumers of motorcycle oil of THIV Secondary data: Secondary data for the study was gathered from books, journals, magazines, and published studies on the topic of oil market on websites namely websosanh. Tentative report structure: Chapter 1: introduction of Toan Hung industry Vietnam: overview about the history and activities of THIV Chapter 2: theoretical framework: introduce about the market’s definition, and review about the previous researches about the factors influencing market and how to consume products more and more.
Chapter 3: finding and discussions: analyzes the collected data, major findings, and recommendations. Chapter 4: recommendations: proposes some viable solutions for THIV company. Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B CHAPTER 1: INTRODUCTION OF TOAN HUNG INDUSTRY COMPANY This chapter reviews specific information about THIV including organizational structure, establishment history, fundamental values, and products. A brief description of the company 1.
General information Toan Hung industry company Vietnam is a limited liability company owned by ATC of Taiwan with tax code 2500223449. This is the first and only establishment of Toan Hung group in Vietnam. The company is found at No.10, Block 18, Khai Quang Industrial Zone, Vinh Yen City, Vinh Phuc Province, Vietnam. The representative of the headquarters located in Vietnam is Mr.
Wu Chung Jang, who is living and working in Vietnam. Directives and decisions are still to be followed from the Taiwanese corporation.2 Corporate profile The predecessor of Tuan Hung industrial company in Vietnam is Tuan Hung oil seal Corp of Taiwan, established in 1974. In 2003, the group decided to open a branch in Khai Quang industrial zone, Vinh Yen, Vinh Phuc and was licensed and put into operation from June 2004. THIV mainly manufactures parts for motorcycles such as bush, control rubber, chain guide, gaskets and double seat and supplies mainly to motorcycle manufacturing and assembling companies such as Honda, Suzuki and Yamaha.
Organizational structure Lê Thị Thùy Linh-11192846-Ng6n Ngữ Anh 61B e Product Research The most crucial step and bringing the greatest added value to the auto parts manufacturing industry is the idea of the function of each type of component, accessory, and key design highly accurate to match and compatible with the products it supports. Thanks to the combination of the above spare parts and components, the new product becomes complete and brings efficiency and value to society.