Toyotas adaptation to the vietnamese political and legal system

MAIN CONTENTSChapter 1: Overview of Toyota Chapter 3: Toyota's adaptation to Vietnam Chapter 2: Political & Legal system: Vietnam vs Japan... Vietnam versus JapanPolitical and Legal

TOYOTA'S ADAPTATION TO VIETNAMESE POLITICAL

AND LEGAL SYSTEM

INTERNATIONAL BUSINESS

G R O U P 1

Nguyen My Tam Nguyen Tran Van Anh

Le Thuy Duyen

Le Thanh Ha Nguyen Khanh Linh Tran Hoang Mai

Vu Nguyen Thu Trang Huynh Thi Thu Trang Pham Thao Vi

MAIN CONTENTS

Chapter 1: Overview of Toyota

Chapter 3: Toyota's adaptation

to Vietnam

Chapter 2: Political & Legal system: Vietnam vs Japan

Overview of Toyota

CHAPTER 1

Toyota Motor

Corporation

(TMC)

1.1. TOYOTA'S PROFILE

President and Representative: Akio Toyoda

Capital: 635 billion Yen Employees: 70,170

Main business activities:

Motor vehicle production and sales

Date founded: August 28, 1937

- A Japanese multinational automaker

- Based in Toyota City, Aichi, Japan

- One of the world's major automakers,

producing over 10 million automobiles per year

- Producing vehicles under 5 brands

VISION

To make ever-better cars, to build

a future where everyone has the freedom to move.

Toyota will lead the future mobilitysociety, enriching lives around theworld with the safest and mostresponsible ways of moving people Through our commitment to quality,ceaseless innovation, and respectfor the planet, we strive to exceedexpectations and be rewarded with

a smile

We will meet challenging goals byengaging the talent and passion ofpeople who believe there is always

a better way

Camry Yaris

Product lines

- Yaris

- Wigo Hatchback segment

- Camry

- Vios

- Corolla Altis Sedan segment

Land Cruiser Prado Alphard Luxury

1.2 TOYOTA IN VIETNAM

"Tomorrow must be better than today"

- 1995: one of the 1st car manufacturers

investing in Vietnamese market

- 1996: 1st product - The Hiace Model

1.2 TOYOTA IN VIETNAM

- After more than 25 years:

+ Investment capital in Vietnam: 230 million USD

+ Production capacity: 574,092 vehicles

+ 75 dealers/ dealer branches/ authorized service stations in 37 provinces

+ Export turnover: 651 million USD

+ Tax contributed: 9,93 billion USD (1996-2020)

Vietnam versus Japan

Political and Legal System

CHAPTER 2

2.1 Political System

Characteristics Japan Vietnam

Political type Unitary parliamentary constitutionalmonarchy Unitary Marxist-Leninist one-partysocialist republicConstitution Constitution of Japan Constitution of Vietnam

Head of government Prime Minister Prime Minister

Executive power The Cabinet The President and The Government

Legislative power National Diet National Assembly

Judicial power Supreme Court and lower courts Assembly Supreme People’s CourtConstitution of Vietnam National

Differences in the Political System between Japan and Vietnam

2.2 LEGAL SYSTEM

Japanese Legal System

- Japan is a civil law system based on codified law at core

- The laws have been heavily affected by common law principles and rules already in place in the EU

- Integrated Common laws and Civil laws

Supreme Court

Tokyo

High Courts

District Courts Family Courts

Summary Courts

Roppo (六法)

The

Constitution

(憲法)

Code of Criminal Procedure (刑事訴訟法)

Commercial

Code (商法)

Civil Code

(⺠法)

Penal Code (刑法)

Code of Civil Procedure (⺠事訴訟法)

Court System Source of law

Vietnamese Legal System

- Civil Law System

- Legal structure modeled after the philosophies of the former Soviet Union

01 Constitutions

02 Codes/ Laws/ Ordinances

03 Decrees/ Decisions/ Regulations

04 Circulars/ Resolutions/ Decisions

Source of Law

The Supreme People's Court

People's High Court

Provincial People's Court

District People's Court

Court System

Systems Vietnamese legal system Japanese legal system

Basis Is a civil law system influenced by the SovietUnion philosophies Is a civil law system influenced bycommon laws from the EU

Sources of

law

Constitution, Codes/Laws/Ordinances,Decrees/Decisions/Resolution, Circulars,

Resolutions/Decisions

The Constitution, Penal Code, Code ofcriminal procedure, Civil Code, Code ofCivil Procedure, Commercial Code

Court system 4 tiers of court: District Court, Provincial Court,High Court, Supreme Court Court, District Court, High Court, Supreme5 tiers of court: Summary Court, Family

Court

Differences in Legal System between Japan and Vietnam

3.1 Political System

3.2 Legal System 3.3 Achievements

Toyota's adaptation to Vietnam

“Through the support of the government and the administration’s policies to protect the local automotive industry, we have full confidence in Vietnam and the people here, whom we have come to appreciate so much.”

said Toru Kinoshita.

CHAPTER 3

IMPACTS OF THE VIETNAMESE POLITICAL SYSTEM ON TOYOTA (1)

Open businessenvironment,transparentinvestment policy,and favorableprofit-basedincentives forbusinesses

Quite stablenatural andpoliticalenvironment

The Government's

commission about Toyota business

3.1 TOYOTA'S ADAPTATION TO THE VIETNAMESE POLITICAL SYSTEM

IMPACTS OF THE VIETNAMESE POLITICAL SYSTEM ON TOYOTA (2)

Continuously changing tax policy

-> unable to calculate the revenue - cost problem in a long-term strategy

HOWEVER

Toyota's management

Toyota’s adaptation to the Vietnamese political system

sending a document to the Government requesting to import CBU cars.

closely linking with domestic producers in terms of

responsibilities and powers

of the two parties.

Increasing pricePromotion

signed a Memorandum of Understanding on Business Support Cooperation

Project maintaining annual social contribution activities

NEGATIVE

Vietnam's legal corridor has had a

great influence on foreign businesses investing in Vietnam

Unstable law due to time changes

short-Regulations on localization rate.

The increase in import tax on automobile components.

Regulations on localization ratio

Toyota Vietnam

is determined to

implement a reasonable localization rate

Organizing workshops on technology

Introducing the Vietnamese

potential market

Introducing investment encouragement policy from abroad into the country

Participating in the 2nd International Exhibition onSupporting Industry and Manufacturing Vietnam

TOYOTA'S ADAPTATION TO THE VIETNAMESE

LEGAL SYSTEM

such as bodywork, chassis,

seats, batteries, etc.

recruited

including 6 Vietnamese

suppliers

2020 - 2021

Toyota set many RECORDS in

in production outputs

30%

TMV also contributes about 750 million

USD to the State Budget

over 40

million USD

in an annual export turnover

Expanded business scope

Contributed nearly $5 billion to the State Budget

Provided stable jobs for approx.

33,000 employees, dealers and 18 suppliers

In

CONCLUSION

Thank you for

your attention!

Q&A TIME