Luan van ACKNOWLEDGEMENT This report would never have been possible without the consistent support and assistance of the people whom I approached during the various stages of this essay. Foremost, I would like to express my sincere gratitude to my advisor PhD. Hang Phuong – Associate Dean, Faculty of Finance and Investment, Academy of Policy and Development - for the continuous support of my Barchelor’s graduation thesis, for her patient, motivation, enthusiasm, an immense knowledge. Her guidance helped me in all the time of research and writing of this thesis.
I could not have imagined having a better advisor and mentor for my essays. Besides my advisor, my sincere thanks also goes to PhD. Pham Ngoc Tru for his incredible advice and guidance to me. Furthermore, my gratitude to all I.F teachers for offering me valuable knowledge for 4 years.
These helpful knowledge and skills I have learnt from I.F is a power technique that support me to complete my graduation thesis and my career job also. I am truly grateful for the opportunity to study in I.F, in Academy of Policy and Development. 1 Luan van CONTENTS INTRODUCTION. 5 CHAPTER 1: THEORETICAL AND PRACTICAL BASIS ON THE EXPORT OF DAIRY PRODUCTS OF ENTERPRISES.
Concepts and methods of exporting. The role of exports. Mission and importance of export. The theories related to trade exchange.
Factors affecting the export of dairy products of enterprises. Experience in exporting dairy products to the Chinese market and lessons for TH Group. Experience in exporting dairy products of Swedish Oatly Group to the Chinese market. Experience lessons for TH Group.
33 CHAPTER 2: THE SITUATION OF EXPORTING MILK FOODS OF TH GROUP INTO CHINA MARKET. Factors affecting TH Group's milk export activities to the Chinese market. Internal factors of the enterprise. The current status of TH Group's dairy products exports to the Chinese market.
Growth rate and structure of TH dairy products exported to China. Method of exporting TH dairy products to China. General assessment of the current status of TH Group's dairy products exports to the Chinese market. Limitations and reasons.
71 CHAPTER 3: SOME SOLUTIONS TO PROMOTE THE EXPORT OF MILK PRODUCTS OF TH GROUP INTO CHINA MARKET. Regarding the issue of diversifying the list of exports. Suggested product for TH True Milk to diversify China's exports: TH true YOGURT - TOPKID Formula - UHT Drinking Yogurt 110ml. Reason for choosing the product.
Regarding export procedures. Regarding promoting brand recognition. 87 3 Luan van LIST OF FIGURES AND TABLE Figure 2.1: Map of lactose intolerance (2020) .2: Map of supplying market for dairy products imported by China in 2020 .3: Dairy distribution channels (by value), 2015-20 .4: ACFTA Tariff Reduction Schedule-China.5: The announcement of Vietnam’s first export of dairy products to the China.6: TH true Milk sunflower field - main feeding source for dairy cows .7: TH's modern dairy farm and factory .8: Elegant and morden design of TH products' package .9: TH's sales revenue in the Chinese market .10: Percentage of exports by TH items .11: TH Dairy Products 110ml pakage .12: Mengniu Dairy Products 250ml package .13: TH Dairy Products in Chinese supermarket .14: Bill of Lading for exporting to China .15: Chenzhou Big head baby Incident (2020) .16: RVC has overdue invoices .1: Chinese Drinking Yogurt Bottle Package .2: TH Drinking Yogurt 110ml Package .3: Oatly web page in Baidu .4: Oatly Q&A posted in Zhihu .5: Oatly marketing campaign by using KOLs .6: Oatly marketing campaign: New Lifestyle .1: Average committed tax rates by major commodity groups .1: Chinese Purchase Order from 2019 to 2021 .2: Number of goods exported to China by item. 54 4 Luan van INTRODUCTION 1.
The urgency of the research subject If 11 years ago, some Vietnamese enterprises had to import powdered milk from China to remix to sell domestically, the first batch of Vietnamese dairy products, was exported to the Chinese market on October 22, 2019, marks a significant turning point for Vietnam. The dairy industry in general and TH Group in particular. TH Food Chain Joint Stock Company (THFC) is the first enterprise eligible to be granted a transaction code by the General Administration of Customs of China. According to that, THFC is allowed to export two types of dairy products: pure pasteurized fresh milk and fresh pasteurized milk with added natural flavorings.
According to the Protocol on Veterinary and Public Health Requirements for Vietnamese dairy products exported to China. Before the Protocol was signed, right from 2015, TH Group actively participated in forums, conferences, and trade fairs between Vietnam and China actively promoted the export of dairy products under the 80% of fresh milk (mainly yogurt) goes to China market soon. This is an opportunity for TH Group to officially have a "passport" to the Chinese market - one of the most potential markets and the second-largest dairy consumer with a population of more than 1. Nearly two years since the first milk export, TH Group has always maintained a high export volume, peaking with shipments worth nearly 100,000 USD, despite difficulties caused by the Covid-19 pandemic.
To achieve this achievement, not only TH product quality is not inferior to European and American products currently on the Chinese market, but also must be flexible and efficient in all aspects, production, distribution, negotiation, and customer care. However, some issues still exist: the export procedures for consignments, the list of exported goods is not diversified, etc. This has somewhat limited the company's capacity for the Chinese market or other foreign markets. Currently, most of the research conducted focuses on the 5 Luan van problem of "How to advertise TH products to consumers" without specifically analyzing the export situation of TH Group to find out the main Identify weaknesses and correct them.
Therefore, with the topic "Exporting TH true Milk Dairy Products to China" selected as the graduation thesis report, this report will focus on analyzing and evaluating the export situation, clarifying TH's strengths, weaknesses, opportunities, and challenges in exporting goods to China. Several solutions will be proposed here to improve the efficiency of TH Group's product export activities and increase the number of TH's customers in the Chinese market. Objectives and missions of the research 2. Objectives The assignment evaluates the actual export status of TH Group to foreign countries, specifically to the Chinese market.
From there, propose solutions to improve the efficiency of TH Group's export activities and expand export market customers. Missions Specific missions: Clarify theoretical issues about export status and practical basis of TH’s export activites. Analyzing the current export situation to China in TH Group by using SWOT analysis of the Chinese market for milk exporting. Proposing solutions derived from the practical situation to enhance export efficiency and scale.
Research scope In term of space: The thesis analyzes the dairy product export activities of TH Group in the Chinese market In terms of time: The study was conducted from TH's first milk export batch to China, from October 2019 to June 2021. Methods of collecting and processing information Information collection and processing methods used by students to collect primary and secondary school materials. These are the reports on the export situation of TH Group to the Chinese market; reports on the results of China's import of milk and dairy products in stages; legal documents, reports, schemes, and programs related to the export of Vietnamese milk to the Chinese market. Along with that, there are projects, multi-level scientific research topics, a master's thesis in economics, domestic and foreign scientific articles related to export activities to the Chinese market.
Students processed information from these documents to achieve the following goals: Systematize the research results before the graduation thesis, find out the shortcomings, problems that exist as well as point out the research gaps that the graduate thesis needs to look for, thereby finding new points. of the problem. Search and collect scientific bases as well as data from reliable sources as an objective basis for building arguments and proofs from both theoretical and practical perspectives. Presenting conclusions and research results of the thesis according to the students' approach.
Analysis method Analytical methods were used to analyze data relating to Chinese consumers' buying and selling of milk and dairy products for domestic and imported products. In addition, is also used in analyzing by which rival dairy companies export and promote their products to the Chinese market. The thesis has analyzed some data to see the tendency of Chinese people to consume dairy products focusing on imported products due to concerns about the safety of domestic products. 7 Luan van However, the export data of TH Group is a very sensitive issue.
Besides some publicly available information and data, many documents provided by the authorities are internal documents and unpublished, some documents with information that are considered property of the Company have limited users. Some documents are confidential at present so, in the process of use can not disclose the origin, business names, and names of companies or parties. Comparison method This method compared Vietnamese dairy products with dairy products of some foreign dairy companies, such as Mengniu, Yili, Oatly,. At the same time, the comparative method also compares, analyzes the change of dairy export shipments in TH over the periods and analyzes to show advantages and disadvantages.
Case study analysis method This method analyzes typical cases of milk export of foreign companies to the Chinese market. This method helps the thesis answer the question about the forms of milk export; how foreign dairy companies like TH promote their products in the Chinese market. At the same time, the case study method also allows me to choose specific development directions for TH in the future for this market. Structure of the thesis In addition to the introduction, conclusion and list of references, the thesis consists of 3 chapters: Chapter 1: Theoretical and practical basis on the export of dairy products of enterprises Chapter 2: The situation of exporting milk foods of TH group into China market Chapter 3: Some solutions to promote the export of milk products of TH group into China market 8 Luan van CHAPTER 1: THEORETICAL AND PRACTICAL BASIS ON THE EXPORT OF DAIRY PRODUCTS OF ENTERPRISES 1.
Concepts and methods of exporting a. Export concept Exporting is a process of earning profits by selling products or services to foreign markets, which are different from the domestic market. If considered from the perspective of international business, export is the first basic form of business when entering an international business. Enterprises always aim to export their products to foreign countries.
Export occurs even the company has taken on higher forms of international business. According to the Vietnam Commercial Law 2005 in Article 28, Clause 1, the concept is specifically stated as follows: “Export of goods means the bringing of goods out of the territory of the Socialist Republic of Vietnam or into special zones in the Vietnamese territory, which are regarded as exclusive customs zones according to the provisions of law”. Either way, the export of goods, in the simplest terms, is the sale of a product to a foreign market. Export is just a function of trade.
The reasons for a company to export are: Take advantage of the company. Reduced cost per unit of product due to increased volume. Increase company profits. Minimize risk due to fluctuations in demand.
When a market has not been restricted by tariffs, quotas, regulations on technical standards or there are few competitors in the market, export is often chosen, because compared to the investment, export requires less capital, lower risk, and especially economic efficiency in a short time. Main form of export Direct export This is a common form of export, the most popular today.