The Basis for Orienting Export Marketing Application Solutions

Chapter 3

Solutions to apply export marketing to improve export efficiency at May 10 company

i. The bases for orienting export marketing application solutions

1. Development prospects of Vietnam's garment industry.

1.1 Advantages of Vietnam's garment industry

a. Advantages in labor resources and labor prices

Vietnam's garment industry has an advantage in abundant labor resources.

Abundant, skillful and extremely cheap. The price of Vietnamese labor is 0.18 USD/hour compared to 0.87 USD/hour in Thailand, 0.23 USD/hour in Indonesia, 0.95 USD/hour in Malaysia, 0.34 USD/hour in China, 5 USD/hour in Taiwan... Vietnamese workers are considered skillful, disciplined, and qualified.

culture should be able to

technology absorption capacity

new fast compared to the

countries in the region. It is predicted that in the next 10 years, cheap labor will still be a long-term advantage of the Vietnamese garment industry.

b. Capital advantage

Vietnam's garment industry has a special comparative advantage compared to other countries.

Other industries are investment capital.

Few, possible

ability to quickly turn over capital

power

Shifting to high export, the industrial garment sector has a high growth rate and is an industry that attracts a lot of foreign investment capital.

c. Market advantage

increase

Over the years, the Vietnamese garment industry has been searching for

We have relatively stable markets and customers. Garment

Vietnam's products are exported in large quantities to many domestic markets.

there are markets

special schools like

market

Japanese school, EU,

USA. Export business strategy of Vietnam's garment industry in

next time is: “Open

expand and develop market areas

current school,

Penetrate new market areas through product quality and price combined with marketing activities”.

Table 3.1: Export turnover by market

Unit: million USD

1996	1997	1998	1999	2000	2001	2002(*)
Total turnover	1150	1349	1351	1747	1892	1962	1880
Japan	248	325	321	417	620	588	350
EU	225	410	521	555	609	599	476
America	9.0	12	26	34	49.5	44.6	540
Other countries	668	602	483	387.3	613	730.4	514

Maybe you are interested!

: Data up to September 2002 from the Ministry of Trade Source: Vietnam Textile and Apparel Association

b. Development situation of Vietnam's garment industry

In the past 10 years, the textile and garment industry of our country has developed strongly, export turnover has increased rapidly, for many consecutive years it has ranked second among the main export items, creating jobs for hundreds of thousands of workers, the reputation and quality of Vietnamese textile and garment products are highly appreciated in the world market. The average growth rate is 20 - 25%/year, accounting for about 13 - 14% of the total export value of the whole country, creating jobs for nearly 1.6 million workers. By the end of November 2002, the export turnover of textile and garment products reached nearly 2.45 billion USD, an increase of 34.7% over the same period last year. With the current rapid growth rate, it is expected that the turnover for the whole year of 2002 can reach over 2.6 billion USD [28]. The reason for the rapid growth of the textile and garment industry in recent times is that the industry has promptly grasped and taken advantage of opportunities such as:

Decision 55/CP dated April 23, 2001 of the Prime Minister

Prime Minister

get high

Approving the Acceleration Strategy and some supporting development mechanisms and policies

Vietnam Textile and Garment Industry by 2010 is an important policy to help the industry accelerate development.

The Vietnam-US Trade Agreement takes effect from

December 10, 2001 is a “golden opportunity” for Vietnamese textile and garment enterprises. The trade department predicts that with the current export rate to the US market, by the end of 2002, the export turnover to this market could reach at least 800 million USD, equal to 1/3 of the total textile and garment export turnover [7]. Vietnamese textile and garment enterprises need to speed up the export speed to the US during the period when this country has not yet applied quotas on textile and garment imports from Vietnam.

The trend of shifting the garment industry from developed countries and highly developed countries to low-developed countries is inevitable. This is also a great opportunity for Vietnam in the coming time.

The annual volume of textile imports in the world is very large.

big. market

EU countries import over 140 billion

USD/year, of which

ready-made garments worth up to 87 billion USD. The US imports 73-75 billion USD worth of textiles each year, of which nearly 59 billion USD is ready-made garments. Japan

also imported every year from

14.7 billion

up to 16.4 billion

USD…Maybe

see the

water like

Japan, EU, USA

Importing ready-made garments is the main thing,

usually accounts for 60 - 80%. This is a great opportunity for the Vietnamese garment industry to enter these markets.

However, compared to the world's major textile exporting countries, our textile export industry is still very modest. In 2001, Vietnam's export turnover only reached nearly 2 billion USD, while China reached 53.3 billion USD, Hong Kong reached 30 billion USD, Indonesia reached 10 billion USD.

over 7 billion

USD, Thailand reached 5.7 billion

USD, Philippines, Singapore,

Malaysia, each country about 3 billion USD [13].

Besides favorable opportunities, Vietnamese textile and garment industry also faces huge challenges such as:

Small scale, low production capacity, not enough to meet large orders from EU and US markets.

Up to 70% of Vietnam's textile and garment exports are processed; the volume is not large; product designs are not really rich and diverse;

Low labor productivity; high product cost; unattractive selling price compared to other countries in the region. This is a huge challenge for the Vietnamese garment industry because after 2005, when quotas are abolished, import tax is reduced, technical barriers are removed, goods from other countries will compete on price.

Vietnamese goods still face fierce competition from exporting countries.

major exporters such as China, India, Hong Kong, Taiwan, South Korea,

Bangladesh… in Vietnam's major export markets today. And from January 1, 2006, the import tax rate for textiles and garments under the AFTA Agreement will be

Vietnam will

decrease from

40-50% as present down to maximum 5%, so

Vietnamese textiles must compete fiercely with imports from countries in the region.

The trend of trade liberalization for the textile industry is being

implement step by step according to the schedule of the ATC Agreement. This is both an opportunity and a challenge for our textile and garment industry, even though Vietnam was a member of this organization before 2005.

2. Development strategy of Vietnam's textile and garment industry to 2010

Based on economic development strategy, especially export strategy

Government's 2010 import quota, as well as

the muscles

association, challenge to

With the Vietnamese textile and garment industry, the Vietnam Textile and Apparel Association (Vitas) and the Vietnam National Textile and Garment Corporation (Vinatex) have proactively developed the "Project to accelerate the development of the Vietnamese textile and garment industry to 2005 and 2010".

Table 3.2: Development acceleration target of Vietnam's textile and garment industry to 2010

Target

Unit	2005 Goals	2010 Goals
1. Export value	Tr USD	40005000	70008000
2. Labor winter	1000 People	25003000	40004500
3. Main product weak:
Cotton fiber	1000 tons	30	80
Synthetic fibers	1000 tons	60	120
All kinds of yarn	1000 tons	150	300
Silk fabric	Million m2	800	1400
Knitted products	Million sp	300	500
Sewing products	Million sp	780	1500
4. Localization rate	%	Over 50%	Over 75%

Source: Vietnam textile and garment industry development strategy to 2010

The goal of Vietnam's textile industry by 2010 is to develop the textile industry into one of the key industries, spearheading exports; increasingly satisfying domestic consumption needs.

water; create more jobs for society; improve the ability to integrate firmly into the regional and world economy.

ii. Export marketing application solutions

1. Building an export marketing process

competitiveness, association

Through research on marketing activities of May 10 company for

found that understanding of the process, content and methods of strategic marketing management is still limited, simple and inconsistent. To be successful

In the international market, May 10 company must build a process

export marketing for yourself. The company can refer to Audinger's 8-step process specifically as follows:

Step 1: Analyze the strengths and weaknesses of the business. Mainly analyze the business's management capacity, design and production capabilities.

production, financial capacity, marketing capacity, competitiveness

… means analyzing the internal environment of the enterprise and evaluating the enterprise's ability to export.

Step 2: Research, analyze and identify products for export. The purpose of this step is to select and find promising products .

Export, review the company's existing products for export potential

import or not, is it necessary to improve to suit the needs of the market?

international market or research and development of new products

for export. This is an extremely important step before bringing products to foreign markets.

Step 3:

Research and select markets

potential export market

The basic task of this stage is to identify the most promising markets, eliminate unattractive markets, and focus on further analysis of the selected markets, avoiding widespread analysis and waste.

Step 4:

Ranking of selected markets.

Item

The aim is to arrange the markets.

export market in order

business priority

business based on opportunities and ability to capture the market.

Step 5: Analyze the selected markets in detail. After eliminating the less attractive markets, focus on analyzing in detail the markets that have been assessed as having the most potentialto

on the basis of

that construction business plan

export marketing plan for

your business in the most effective way.

Step 6:

Building a plan

export marketing plan

Rely on

Collected and analyzed information, built strategies and marketing plans for each export market.

Step 7: Adjust and perfect export marketing plans

This is the stage where businesses review their marketing plans, see what needs to be adjusted and completed so that everything becomes clear before starting implementation. The completion stage allows businesses to

The business re-determines the correctness and feasibility of the plan, in order to limit

reduce risks that may occur during plan implementation.

Step 8:

Organize implementation, testing and evaluation.

This is the stage

The final stage of the marketing process. In this stage, the enterprise allocates resources among departments, divisions, and functional units related to export marketing activities; designs the organizational structure and system

strategic control system; check implementation in all units

related to exports; analysis of the gap between planning and implementation

Find out the strengths and weaknesses of the plan; determine the causes and find solutions.

2. Research on export marketing environment

The international marketing environment has a special impact on the export activities of enterprises. In fact, the research on the international marketing environment has not been taken seriously by the company, especially the research on the cultural environment. According to Mr. Sesto E. Vecchi, CEO of the law firm Russin & Vecchi (specializing in consulting on exporting to the US), some cases of export businesses in the US market failing are due to lack of knowledge or business experience; thinking that exporting goods to the US is similar to selling to a domestic customer; not fully understanding their products or not being able to distinguish the difference in quality, unique characteristics, or price related to the intended market; lack of full understanding of the market

US domestic; not possible

answer

comply with strict government regulations

America on product safety, quality standards etc…

To penetrate the market successfully, businesses need to

study carefully

factors

international business environment

situation

import of garments from that market in recent years, structure of garment market, quality standards, regulations, laws, trade practices... In addition, enterprises must also consider and research the competitive forces with Vietnamese textiles in the markets. Therefore, enterprises need and must research

international marketing environment international.

If you want to succeed in business

3. Solutions to apply marketing in the marketing mix strategy to promote exports

a. Build product/market pairs.

Strategic marketing management thinking is that it is impossible to separate the product from the market but must consider it in a pair of products/target markets that have been segmented, focused, positioned and this action must be done before the divisional strategies. The company needs to identify the key products for each market, for example shirts for the European market, jackets for the Russian and Eastern European markets, shirts and trousers for the American market, etc.

b. Product adaptation.

The most important issue for export products is to adapt and meet the needs of the importing country market in terms of packaging, design, style and product quality. To do so, businesses need to conduct thorough research on the needs and tastes of foreign consumers.

outside, assessment of ability

capacity and level

adapt products to each market

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