ENHANCING THE COMPETITIVENESS OF ABQ TRADING AND TECHNOLOGY INVESTMENT JOINT STOCK COMPANY

BARCHELOR THESIS TOPIC ENHANCING THE COMPETITIVENESS OF ABQ TRADING AND TECHNOLOGY INVESTMENT JOINT STOCK COMPANY HANOI 2022 TABLE OF CONTENT INTRODUCTION 1 1 Rationale 1 2 Research objective 2 3 Rese.

TABLE OF CONTENT

INTRODUCTION 1

1 Rationale 1

2 Research objective 2

3 Research scope 3

4 Research structure 3

CHAPTER 1: THEORETICAL FRAMEWORK OF ENHANCING THE COMPETITIVENESS OF ENTERPRISE 4

1.1 General theory of competition and enterprise competitiveness 4

1.1.1 Definition of competition 4

1.1.2 The roles of competition 5

1.1.3 Definition of enterprise competitiveness 6

1.1.4 The necessity of enhancing the enterprises competitiveness 7

1.2 Factors affecting the competitiveness of enterprise 8

1.2.1 External factors 8

1.2.2 Internal factors 11

1.3 Criteria to assess the competitiveness for enterprise 14

1.3.1 Quantitative indicators 14

1.3.2 Qualitative indicators 17

1.3.3 Competitive strategies 19

1.4 Measures to enhance competitiveness of enterprise 22

1.4.1 Enhancing the competitiveness of primary activities 23

1.4.2 Enhancing the competitiveness of support activities 27

CHAPTER 2: CURRENT SITUATION OF ENHANCING COMPETITVENESS OF ABQ TRADING AND TECHNOLOGY INVESTMENT JOINT STOCK COMPANY 31

2.1 Introduction of ABQ Trading and Technology Investment Joint Stock Company 31

2.1.1 Company formation and development 31

2.1.2 Organizational structure of the Company 32

2.1.3 Products and services 34

2.1.4 Business results over the period of 2017 – 2021 35

2.2 Factors affecting the competitiveness of the Company 36

2.2.1 External factors 36

2.2.2 Internal factors 44

2.3 Measures to enhance competitiveness applied by the Company 49

2.3.1 Enhancing the competitiveness of primary activities 49

2.3.2 Enhancing the competitiveness of support activities 54

2.4 Current situation of enhancing competitiveness of ABQ Trading and Technology Investment Joint Stock Company 58

2.4.1 Quantitative indicators 58

2.4.2 Qualitative indicators 64

2.5 Evaluation of the current situation of enhancing competitiveness of ABQ Trading and Technology Investment Joint Stock Company 67

2.5.1 Achievements 67

2.5.2 Limitations 68

2.5.3 Causes 69

CHAPTER 3: SOLUTIONS TO ENHANCE COMPETITIVENESS OF ABQ TRADING AND TECHNOLOGY INVESTMENT JOINT STOCK COMPANY 72

3.1 Threats and Opportunities of enhancing competitiveness of the Company 72 3.1.1 Opportunities 72

3.1.2 Threats 73

3.2 Development orientation to enhance competitiveness of the Company73 3.3 Solutions to enhance competitiveness of ABQ Trading and Technology Investment Joint Stock Company 74

3.3.1 Solutions for the Company 74

3.3.2 Solutions for the State agencies 77

CONCLUSION 79

ABBREVIATIONS

LIST OF TABLES

Table 2.1 Basic information of ABQ Joint Stock Company 31Table 2.2 Business results of ABQ Joint Stock Company over the period of 2017 -

2021 (Unit: Million VND) 35Table 2.3 Capital and asset of the Company in the period of 2017 – 2021 (Unit:Million VND) 45Table 2.4 Number of employees working in Purchasing Unit and ProjectManagement Unit in the period of 2017 – 2021 (Unit: Employee) 52Table 2.5 Customer survey results on service quality in 2021 (Sample size: 42enterprises) 65Table 2.6 List of loyal customers of the Company in the period of 2017 – 2021 66

LIST OF FIGUR

Figure 1.1 Porter's Five Forces Model 10Figure 1.2 Ansoff Matrix 20Figure 1.3 Porter's Value Chain 22Y

Figure 2.1 Organizational structure of ABQ Joint Stock Company 32Figure 2.2 Number of employees by department of the Company in the period of

2017 – 2021 46Figure 2.3 Number of employees by level of the Company in the period of 2017 –2021 47Figure 2.4 Structure of educational qualifications of the Company's employees in2021 48Figure 2.5 Revenue structure by business activities of the Company in the period of

2021 – 2017 50

Figure 2.6 Website advertising budget of the Company in the period of 2017 –

2022 (Unit: Million VND) 53Figure 2.7 Number of suppliers by contract term of the Company in the period of

2017 – 2021 54Figure 2.8 Number of suppliers by market of the Company in the period of 2017 –2021 55Figure 2.9 Number of trained employees by level of the Company in the period of

2017 - 2021 56Figure 2.10 Solvency ratios of ABQ Joint Stock Company in the period of 2017 –2021 57Figure 2.11 Debt-to-Equity ratio of the Company in the period of 2017 – 2021 58Figure 2.12 Revenue growth rate of the Company and competitors in the period of

2017 – 2021 59Figure 2.13 Revenue of the Company by business activity in the period of 2017 –2021 60Figure 2.14 Market share of the Company compared to competitors in the period of

2017 - 2021 61Figure 2.15 Revenue of Information and Communication industry announced in theperiod 2016-2021 (Unit: Billion VND) 62Figure 2.16 Profitability ratios of the Company in the period of 2017 - 2021 63

1 Rationale

In the trend of explosive international integration, our country has made strongdevelopment steps and achieved great economic achievements On the basis ofsigned agreements, as well as coordinated economic, scientific, technical, culturaland social development programs, Vietnam has had the opportunity and favorableconditions to exploit optimally national advantages, facilitate and strengthen thedevelopment of extensive trade relations with many countries in the world As aresult, imports, exports, and other related activities are becoming more and moreessential in the economy

However, in recent years, the Covid-19 pandemic has had a tremendous impact

on the global economy in general, as well as the Vietnamese economy in particular.International business is one of the hardest hit sectors in the midst of significantsupply chain disruptions, which have stymied the expansion of numerousorganizations throughout the world Challenges are often opportunities in disguise,this is the golden time for enterprises to consolidate and affirm their competitiveness

to survive and grow in the market

On the other hand, unlike many other industries that have struggled as a result ofthe Covid-19 pandemic, the field of technology products in all over the world hashad the opportunity to grow significantly during the pandemic Digitaltransformation creeps into every corner of life, every aspect of society has changedrapidly The focus on digital transformation and the application of scientific andtechnological advances to all parts of life has boosted demand for technologyproducts when their support became an indispensable part for online activities of allorganizations and individuals Not to be outdone by the rest of the world, Vietnamsees digital transformation as a foregone conclusion, and has developed a nationaldigital transformation program to 2025, with a vision to 2030, based on three pillars:digital economy, digital society, and digital government "We shall witness acountry undergoing fast digital transformation Because of the impact of digitaltransformation, every element of our society will change, opening up a plethora ofnew options We shall be substantially different in the next ten years from where we

are today, because then digital life will be inextricably integrationed to real life,"

Mr Nguyen Trung Chinh, Chairman of CMC Technology Group, stated

The rapid development of the globalization and digital transformation trend notonly brings opportunities but also challenges for businesses in the technology field.Competition for Vietnamese firms is becoming increasingly tough, not only in theinternational market but also in the domestic market As more enterprises enter thispotentially lucrative industry to meet the market's inevitable demand for technologyitems, the rivalry becomes increasingly severe Meanwhile, the majority oftechnological items utilized in Vietnam are distributed by Vietnamese tradingcompanies and come from well-known global brands

ABQ Trading and Technology Investment Joint Stock Company, established in

2013, is one of Vietnam's most experienced SMEs in the areas of trading, logistics,and installation of electronic and telecommunications components With steadysteps in the past 10 years, ABQ has affirmed its brand, bringing more and moreproducts and services to serve projects across the country The context of the Covid-

19 epidemic has posed many challenges as well as opportunities for businesses to beable to maintain a smooth supply chain as well as compete with many otherbusinesses when the technology industry is making great strides In order to achievethe goals, the company must establish its own effective strategies in every aspects

As a result of my experience working at ABQ Trading and TechnologyInvestment Joint Stock Company, as well as the knowledge I gained at NationalEconomics University, I have determined that a competitive and well-suited strategyfor the company is required With the approval of the company's Board of Directors,

I chose the topic as the research's subject for the reasons stated above: " Enhancing the competitiveness of ABQ Trading and Technology Investment Joint Stock Company".

2 Research objective

The main purpose of this thesis is to analyse the competitiveness of ABQTrading and Technology Investment Joint Stock Company and suggest solutions toenhance competitiveness of up to 2025 Specific objectives of the thesis include:

- Providing an analytical framework for studying the competitiveness of thefirm;

- Analyzing the competiveness of ABQ Trading and Technology InvestmentJoint Stock Company market in the period of 2017 to 2021;

- Proposing solutions to enhance the competitiveness of the company in thenext years

3 Research scope

Subject of the thesis

Based on the research objectives and mission, the topic identifies the researchobject of the topic as the competitiveness of ABQ Trading and TechnologyInvestment Joint Stock Company

Scope of the thesis

In terms of geographic scope, the thesis focuses on all activities, especiallyactivities related to goods import, logistics and distribution, of ABQ Trading andTechnology Investment Joint Stock Company

In terms of time scope, the secondary data references used in the thesis is thestatistical data for the period from 2017 to 2021 The recommendations to enhancecompetitiveness are expected to be applicable in the next 5 years (the period 2022-2026)

In terms of conceptual scope, the thesis researches on the competitiveness ofABQ Trading and Technology Investment Joint Stock Company

4 Research structure

The thesis is divided into three chapters as follow:

- Chapter 1: Theoretical framework of enhancing the competitiveness ofenterprise

- Chapter 2: Current situation of enhancing competitiveness of ABQ Tradingand Technology Investment Joint Stock Company

- Chapter 3: Solutions to enhance competitiveness of ABQ Trading andTechnology Investment Joint Stock Company

CHAPTER 1: THEORETICAL FRAMEWORK OF ENHANCING THE COMPETITIVENESS OF ENTERPRISE

1.1.General theory of competition and enterprise competitiveness

1.1.1 Definition of competition

When the market economy first developed, the concept of competition wasformed There have been many diverse perspectives on competition throughout thehistory of the global economy

According to K.Marx: "Competition is a rivalry, fierce struggle betweencapitalists in order to win over favorable conditions in the production andconsumption of goods in order to earn super-profits" Studying the capitalistproduction of goods and capitalist competition, Marx discovered that the result ofcompetition in capitalism is the law of average rates of profit, thereby formingsystem of market prices and producer prices

On the other hand, Michael Porter believes that wealth is more or lessdetermined by the productivity of manufacturing enterprises Competition requiresbusinesses to persistently improve production productivity by improving productquality, creating product differentiation, improving production techniques, etc Onthe other hand, when a country directly When participating in internationalcompetition, productivity standards for each industry do not stop at domesticstandards but also international standards In other words, competition is alsoglobalized Globalization makes competition healthier, but at the same time moreintense

In Vietnam, referring to "what is competition", some scientists believe thatcompetition is a matter of gaining an advantage in the prices of goods and services(buying and selling) Competition in the market of economic actors is to gainadvantages to lower the prices of "input" factors in the production - business cycleand to raise the "output" prices, so as to gain a higher level of profit Highest profit

at the most reasonable cost According to Le Danh Vinh et al (2006), competition isthe driving force for development, resulting in healthy market activities; however,competition also has negative consequences Weakness must result in a win or a

loss As a result, competition occurs only when there are at least two differententities and suppliers in the market; as a result, competition is a unique product ofthe market economy, as well as its soul and driving force for market expansion.

To sum up, in the economic sense, competition refers to a competition betweencommodity producers, traders, and businessmen; between countries in a marketeconomy governed by supply and demand relations in order to obtain the bestproduction, consumption, and market conditions Competition is a driving force foreconomic growth, as well as an important foundation for ensuring legal businessfreedom and bringing tangible benefits to society and consumers At the same time,countries promote cooperation activities as part of international economicintegration in order to create a fairer and healthier competition environment, soentities must avoid illegal competition that harms the interests of other countries Aswell as undermining the community, one can also undermine oneself

1.1.2 The roles of competition

In the market economy, competition plays an extremely important role, it isconsidered as the driving force of the development not only of each individual, eachenterprise but also the economy in general Competition is not only a driving forcepromoting economic development but also a factor regulating the market system,making social relationships healthier

In terms of businesses, competition determines the existence and development ofenterprises In other words, competition promotes and creates a driving force forbusiness development To be able to compete with their rivals, enterprises are forced

to find ways to improve production and business efficiency Using modern scientificand technological advances to improve production and business processes,strengthen management, improve human resource skills, and improve product andservice quality to best meet customer needs Businesses will be able to improvetheir value, reputation, and market position as a result

For consumers, when there is competition, they will easily compare products tofind products with better quality, more diverse and richer designs, meeting therequirements of customers in society The benefits that they derive from goods are

increasingly enhanced, better satisfying their needs thanks to additional services thatare more concerned.

On a micro level, competition is the perfect environment to promote the healthydevelopment of all economic sectors Competition contributes to removing

“obstacles” to economic development such as monopoly, inequality andunreasonableness in business Along with that, it also helps to accelerate thedevelopment and advancement of science, technology and the social division oflabor Competition helps to improve the quality of life through productdiversification, constantly improving the quality of goods and products, stimulatingdevelopment needs Moreover, competition encourages restructuring in industriesthat have lost their competitive edge It is difficult for governments to determinewhich sectors of the economy need to be restructured, which firms in those sectorsshould remain or should cease to exist, and when it is best to engage in suchrestructuring

1.1.3 Definition of enterprise competitiveness

In the process of studying competition, the concept of competitiveness has beenused Competitiveness is studied on three levels: the competitiveness of the country,the competitiveness of the enterprise, the competitiveness of goods and services.The three levels of competitiveness are interrelated, dependent and mutuallysupportive In which, the concept of enterprise competitiveness is also seen in manyaspects

The competitiveness of an enterprise is the ability to withstand the attack of otherenterprises, or according to the dictionary of trade policy terms (1997), thecompetitiveness of an enterprise is not to be defeated by other enterprises Ineconomic terms, there is a concept that competitiveness is synonymous withimproving competitive advantage, or labor productivity

According to the Organization for Economic Cooperation and Development(OECD), competitiveness is the ability of enterprises, industries, countries andregions to create jobs and higher incomes in international economic conditions.According to strategic manager Michael Porter, a company's competitiveness can

products) If the ability to win and dominate the consumer market is high, then theenterprise has high competitiveness Michael Porter is not limited to directcompetitors but extends to both potential competitors and substitute products

While according to Humbert Lesca, competitiveness of an enterprise is theability and capacity that an enterprise can voluntarily sustain itself for long in acompetitive market and progress by making a small profit enough to cover theachievement of the company's goals

Thus, the concept of competitiveness of enterprises has not been unified, theproblem is to find a suitable concept in terms of conditions, context, developmentlevel of each period, expressing the competitive methods of enterprises to cope withthe most unfavorable situations, not just rely on comparative advantage The concept

of competitiveness of an enterprise can be given as: "the ability to maintain andenhance competitive advantages in product consumption, to expand consumptionnetworks, to attract and effectively use factors of production to achieve high andsustainable economic benefits”

Through the above concept, it can be seen that the competitiveness of anenterprise is not a single indicator but is a composite of many constituent andidentifiable criteria for a group of businesses or for each enterprise However, inorder to evaluate the competitiveness of enterprises, it is necessary to consider thefactors affecting the competitiveness of enterprises

1.1.4 The necessity of enhancing the enterprises competitiveness

It is undeniable that competition is the foundation for corporate development andgrowth Barney (1991) underlined the need of establishing entry barriers to preventcompetitors from imitating the firm's resources and utilizing the firm's resources tomaintain a competitive advantage Competitive pressures have a significant impact

on how organizations run and business strategy, particularly in today's harsherindustry competition Although the organization has established its own competitiveadvantages through time, ensuring its competitiveness for expansion and growth,with ongoing market swings, the sustainability of its capacity Competition issomething to work on As a result, discovering and implementing solutions to

actively increase their competitiveness is critical to ensuring the survival anddevelopment of businesses.

According to Powell (2001), business strategies can be viewed as an effectiveinstrument for assisting firms in identifying goals and focusing resources on criticalactivities to achieve competitive advantages Businesses should consider and makedecisions based on solution groups with distinct characteristics and applicationconditions

1.2.Factors affecting the competitiveness of enterprise

1.2.1 External factors

Macro environment

PEST Analysis (political, economic, social, and technological) is a managementtechnique that allows a company to assess major external factors that affect itsoperations in order to improve its market competitiveness PEST Analysis is thought

to have been first introduced by Harvard professor Francis J Aguilar under the nameETPS Aguilar presented economic, technical, political, and social factors as majorinfluences on the business environment in his 1967 publication "Scanning theBusiness Environment." Following that, the letters were rearranged to form a usefuland amusing acronym that is still in use today

According to Kotler (1998), PEST analysis is a useful strategic tool tounderstand the growth or decline of the market, business location, potential andfuture direction of activities From there, the analysis results can be used to helpenterprises identify and seize opportunities, make contingency plans for threatswhen preparing strategies and business plans (Byars, 1991; Cooper, 2000) ThePEST model also helps to ensure that business performance is consistent with thebusiness environment affected by rapidly changing factors (Porter, 1985)

Moreover, in terms of international business, PEST analysis is believed to have

an important role in market entry decision examining Political, economic, cultural and technological environments differ from country to country, and anysuccessful businesses must have a thorough understanding of the market they are

socio-about to enter At the same time, PEST helps firms understand how the dynamics ofone market may affect the dynamics of another.

- Political environment: The government's intervention in the economy isone of a country's political factors Tax policy, labor law, environmentallaw, trade restrictions, tariffs, and political stability are all examples ofpolitical factors Political factors can also include goods and services thatthe government wants to provide or have provided (merit goods) as well

as those that the government does not want to provide (non-merit goods)(demerit goods or merit bads) Governments also have a significantimpact on a country's health, education, and infrastructure The country'sforeign policy plays a crucial role in determining the state's traderegulations This could lead to a variety of trade restrictions or offersdifferent trade incentives

- Economic environment: Factors in the economic environment have animportant influence on the competitiveness of enterprises These includegrowth rate, inflation rate, exchange rate, interest rate A stable andgrowing economy is a favorable condition to improve people's materiallife, increase demand and demand for goods and services This is themotivation for businesses to constantly improve the quality of theirproducts and services to meet those needs

- Socio-Cultural environment: Socio-cultural environment includes socialvalues, culture, lifestyle, attitudes, needs, tastes, etc Cultures havebecome more similar as a result of the global environment, however, eachcountry retains its national identity and traditional cultural values thataffects enterprise competitiveness through customers and market demandstructure In addition, the social environment is also related todemographic indicators, which are important in choosing strategies tocreate competitive advantages for products and companies (population,age and gender structure, education structure, geographical dispersion,income levels and distribution, other demographic indicators

- Technological environment: Analyzing technological factors related tounderstanding, analyzing and forecasting the development andimplementation of new production technologies, information technology,

new materials, technology transfer, From a business perspective,technology can be used to exploit competitive advantage through a variety

of factors Modern science and technology will reduce the cost ofenterprises, the product quality contains high content of science andtechnology They help businesses in the process of collecting, processing,storing and transmitting information quickly and accurately; improveproduction and business efficiency, protect the environment and improvethe reputation of enterprises

Micro environment - Industrial Analysis

Porter's Five Forces (Porter, 1980), which is named after Harvard BusinessSchool professor, Michael E Porter, is a model for determining an industry'sweaknesses and strengths by identifying and analyzing five competitive forces thatshape every industry A five-forces analysis is frequently used to determinecorporate strategy by identifying an industry's structure Porter's model can be used

to understand the level of competition within an industry and improve a company'slong-term profitability in any sector of the economy

Figure 1.1 Porter's Five Forces Model

(Source: M Porter, 1980)

The condition of competitiveness in an industry is determined by fivefundamental forces, which are depicted in the diagram above Understanding thefundamental sources of competitive pressure lays the foundation for a strategicresponse plan They enliven the company's posture in its industry, define the areaswhere strategic changes may produce the highest payback, and emphasize the areaswhere industry trends promise to hold the greatest relevance as either opportunities

or dangers Understanding these sources also aids in the selection of diversificationopportunities

- Threat of New Entrants: New entrants to a sector bring with them newcapacity, a desire to win market share, and frequently significantresources The seriousness of the threat of entry depends on the barrierspresent and on the reaction from existing competitors that entrants canexpect If the barriers to entry are high and newcomers can expect harshretaliation from established competitors, newcomers are unlikely to pose aserious threat

- Supplier and Buyer bargain power: By raising prices or lowering thequality of purchased goods and services, suppliers can exert bargainingpower over industry participants As a result, powerful suppliers cansqueeze profit out of an industry that can't recover cost increases in itsown prices Customers can also force price reductions, demand higherquality or more service, and pit competitors against one another, all at theexpense of industry profits The power of each important supplier orbuyer group depends on a number of characteristics of its market situationand on the relative importance of its sales or purchases to the industrycompared with its overall business

- Threat of Substitution: Substitute products or services limit an industry'spotential by putting a cap on the prices it can charge The industry willsuffer in terms of earnings and possibly growth unless it can improveproduct quality or differentiate it in some way Clearly, the moreappealing the price-performance trade-off offered by substitute products,the tighter the cap on the industry's profit potential is placed

1.2.2 Internal factors

The term "internal factors" refers to anything that is within the company andunder its control, whether tangible or intangible After these factors have beenidentified, they are categorized as the company's strengths and weaknesses Strength

is defined as an element that has a positive impact on the company On the otherhand, if a factor obstructs the company's growth, it is a flaw There are a number ofcriteria that must be considered within the company However, according toresearchers, the main resources of enterprises can be encapsulated includingphysical, financial and human (Ansoff, 1965); or skills, knowledge, finance andtechnology (Hofer & Schendel 1978)

Physical resources

Physical resources are actual assets that are required and readily available for afirm to run These are goods that take up space, have a monetary worth, and areutilized in the company's operations All types of businesses require physicalresources Product-based enterprises rely on physical resources to provide things forsale and to run the firm Service-based firms use physical resources to aid servicedelivery Depending on the nature of the firm, physical resources may include awide range of specific things and objects Some types of physical resources can bementioned such as land, buildings, water and water rights; machinery andmanufacturing equipment; vehicles and distribution networks; IT equipment andhardware; point-of-sale systems etc

The quality of firms' products and services will improve as their physicalresources improve However, because a business's resources are never unlimited, it

is critical to ensure that it has the correct physical resources in the right location atthe right time in order to save costs Good physical resource management will assistorganizations in focusing on development in the appropriate direction, henceincreasing competitiveness

Financial resources

Financial resources are defined as the sources of funds through which businessesacquire the funds to support their investments, capital, and present activities A firmacquires finances from three general sources: financial institutions, capital markets,and owner equity

Strong financial resources enable organizations to not only carry out marketing,advertising, and distribution activities more effectively, but also to seizeopportunities and deal with obstacles Enterprises with steady and strong financialresources can meet customers' continuously changing needs, assure consistentbusiness operations, and increase service quality Furthermore, significant financialcapacity enables businesses to boost investment in service quality, modernizetechnology infrastructure, and improve human productivity on a proactive basis.This assists businesses in strengthening their competitiveness.

Human resources

Human resources refers to the people who work for a company or organization,

as well as the skills, education, capacity and attributes of labour which influencetheir productive capacity and earning potential They play an important role in thedevelopment and survival of businesses in any field

Human resource policies and practices can be a particularly important source ofsustainable competitive advantage (Jackson and Schuler, 1995) Appropriate skills,expertise, and positive working attitude will be necessary conditions for thecompany's personnel to complete their assigned tasks professionally, with high laborproductivity, and improve management and problem solving abilities resolvearising situations, thereby contributing to improving the competitiveness of thecompany and the products and services provided by the company

Technological resources

Technological resources are factors derived from scientific-technologicalinnovation that enable or facilitate some activity, particularly productive labour.Simply said, it is about the contributions of technology to the other productivedomains of the human being, making it feasible, or making it easier and faster, toattain a goal Technological resources include a vast range of items such asmachinery, energy, data, tools, and, of course, humans, without whom none of thepreceding items would be conceivable

Technology has a significant impact on corporate operations Regardless of thesize of the business, technology provides both tangible and intangible benefits thatcan help the business make money and deliver the results its consumers want A

company's culture, efficiency, and connections are all influenced by its technologicalinfrastructure As a result, businesses' ability to compete in the market is heavilyinfluenced by the level of technology they use Using technical advancements incommercial activities allows organizations to employ other resources moreefficiently, resulting in improved business results The technological component, inparticular, can be a driving force to promote competitiveness swiftly, which iscritical to helping firms catch up with and beat competitors.

1.3.Criteria to assess the competitiveness for enterprise

The selection of an enterprise's business competitiveness evaluation methodbecomes the most crucial option, because the assessment must be thorough andprecise, contain objective quantitative and qualitative information, and notnecessitate a major investment of time and money

Currently, there is no universally accepted method for assessing an enterprise'sbusiness competitiveness The selection of the assessment method is a subjectiveprocedure, and measuring the competitiveness of a specific object using differentmethodologies and approaches can yield radically divergent findings In this regard,many economists' research is focused on the theoretical and methodologicalunderpinnings for determining the competitiveness of economic entities This thesisrefers to a variety of previously examined factors, which are classified into twofundamental groups: quantitative and qualitative components

1.3.1 Quantitative indicators

The key quantitative indicators for assessing enterprise competitiveness includefinancial indicators relating to capital management, production and businessefficiency, and the potential to dominate the market This thesis focuses on 4indicators, which are Debt-equity ratio, Growth rate, Market share and ProfitabilityRatios

Debt-to-Equity ratio

The debt-to-equity ratio indicates the degree of risk associated with a company'scapital structure setup and operation The ratio emphasizes the amount of debt acompany uses to conduct their business as well as the financial leverage accessible

to a company Debt refers to the liabilities and responsibilities that the organizationholds with the intention of repaying them over time These include short-term debtwith a maturity of less than a year and long-term debt with a maturity of more than ayear (such as loans or mortgages) The ratio reflects if their organization isoverburdened with financial commitments or has opportunity to expand.

Businesses might benefit from knowing how their debt-to-equity ratio compares

to that of their competitors in the same industry As markets and industries develop,senior business executives benefit from knowing where their company is in relation

to the competitors The debt-to-equity ratio can help managers choose if it isappropriate to take on more debt, push for new project investments, or wait for themarket to change

Revenue growth rate

Growth rates are the percentage changes in a variable over a given time period.Growth rates in business often represent the compounded yearly rate of growth ofrevenues, earnings, dividends, or even macro terms such as GDP and retail sales Inwhich, the revenue growth rate represents the relative revenue growth (inpercentage) over time

Most for-profit organizations focus on revenue generation as it matters to thecompany, its shareholders, employees, and its clients Revenue growth metricreflects the current state of company affairs Typically, a company with a highgrowth rate is experiencing rapid expansion, growing market share, or expandinginto new markets or regions Achieving a positive annual revenue and growth ratedemonstrates that the company has effectively competed in the market using thecompetitive advantages of its products and companies

Market share

Market share is the percentage of an industry's or market's total revenues earned

by a specific company over a given time period This metric is used to get a sense of

a company's size in relation to its market and competitors In other words, marketshare is a measure of the relative competitiveness of a company's products orservices; it compares the outcomes of the company's activities and solutions toincrease its competitiveness a business with market competitors A company that has

a big market share and maintains or even grows its market share demonstrates thecompany's competitiveness.

Profitability Ratios

Profitability ratios are a type of financial indicator that assesses a company'sability to create earnings compared to its sales, operational costs, balance sheetassets, or shareholders' equity over time using data from a single point in time Ahigher value comparing to a competitor's ratio or the same ratio from a previousperiod shows that the company is doing well for most profitability ratios

Return on Assets (ROA)

ROA= Net income

Average totalassets x 100

This indicator measures the efficiency with which the enterprise's assets areused; the higher the index, the more efficient the business, and vice versa Thehigher the number, the more efficient the corporate operations ROAs of more than7.5 percent are generally seen as favorable The net profit-to-asset ratio variesaccording to the season and industry As a result, this ratio is exclusively used inenterprise financial analysis to compare the performance of enterprises in the sameindustry and time period

Return on Equity (ROE)

ROE= Net income

Equity x 100

The ability of a corporation to produce a return on its equity investments ismeasured by ROE ROE may rise without further equity investments as a result ofhigher net income generated by a growing asset base backed by debt It is used tocompare the performance of companies in the same industry ROEs of 15-20% areoften regarded as satisfactory

Return on Sales (ROS)

ROS= Net income

Net sales x 100

The ROS ratio is a metric used to assess a company's operational performance.This metric offers information on how much profit is generated per dollar of sales.

An increasing ROS suggests that a company's efficiency is improving, but adeclining ROS may indicate imminent financial difficulties It is the most commonapproach to examine a company's net profits and is frequently used to compare firmsand industries of varying sizes

1.3.2 Qualitative indicators

In addition to the quantitative indicators showing clear comparison results inperformance between companies, there are many other tangible factors thatdetermine and evaluate the enterprises competitiveness in the market Whilequantitative indicators often have specific formulas to measure, qualitativeindicators are understood by researchers from many different perspectives

For example, assessment of competitiveness within the framework of A.Marshall's theory of equilibrium (1890), which assumes the existence of enterpriseproduction elements that can be utilised more efficiently by the enterprise thancompetitors; while McKinsey matrix (1970), representing a coordinate system,which is used for making strategic decisions based on the relationship of twoparameters: "competitiveness of a company” and “attractiveness of the industry".Otherwise Keinosuke-Tatsuyuki (2001) said that enterprises have goodcompetitiveness when products have good quality; then the price, delivery time,after-sales service and brand value of that product

In brief, the selection and use of criteria to evaluate an enterprise'scompetitiveness is influenced by a variety of elements such as the field of operation,corporate objectives, firm size, and so on The quantitative criteria in this thesis willfocus on a variety of elements in order to best suit the chosen firm, including Quality

of products and customer services, Brand image, Customer loyalty, Employeeloyalty and Management capability

Quality of products and customer services

The definition of quality is a topic that many researchers have been interested in.Philip Crosby was a strong proponent of excellence In the 1970s, he defined quality

as "conformance to requirements," because executing things correctly the first time

and to a high standard was less expensive than repairing it later Another way todefine quality is "fitness for use," as defined by Joseph Juran, one of a number ofmanagement theorists who worked in Japan in the 1950s While one of the

"forefathers" of quality management, W Edwards Deming, “Good quality does notnecessarily mean high quality It means a predictable degree of uniformity anddependability, at a low cost, with quality suited to the market.” These concepts arecomplementary rather than antagonistic, and each might be relevant at differentstages of quality management efforts

Quality standards are increasingly being applied not only to products, but also toservices, processes, and data Finally, the International Organization forStandardization (ISO) defines quality as the “totality of characteristics of an entitythat bear on its ability to satisfy stated and implied needs.”

Quality – that is, customer satisfaction and loyalty – is achieved through twodimensions: features, and freedom from deficiencies Features refer to the design'squality, and it's important to understand that increasing design quality generallyleads to higher costs and a higher consumer price point, whereas increasingconformance quality – and thus increasing freedom from deficiencies – typicallyresults in lower costs as well as increased customer satisfaction In addition tostrictly quality-based measures, time and cost dimensions are also directly relevant

to both features and flaws By properly combining these characteristics, a businesscan make strides toward quality excellence

Customer loyalty

Customer loyalty is a consistent source of long-term growth and income Itprovides a strong competitive advantage through the company's market share andprofitability from loyal customers who are less price sensitive, create positive word-of-mouth promotion, and challenge competitor's methods (Lewis and Soureli, 2006).They expect less time and attention from the firm they patronize (Yang andPeterson, 2004), and they behave positively toward the company in a variety ofways, such as forgiving product or service errors because they are emotionallyinvested (Srinivasan et al., 2002)

Customers who are loyal to a company are a valuable asset because they provide

a communication channel to build the company's image, make it difficult forcompetitors to acquire customers, and allow for higher prices for goods and services.According to significant scientific studies, the relationship between competitivenessand consumer loyalty has been overlooked Customers, on the other hand, see andevaluate their service provider in contrast to other providers in the industry, and soperceived competitiveness may contribute to the explanation of customer loyalty(Baumann et al., 2017)

Management capability

The administrator has the most power and is in charge of every step of thebusiness They establish the company's direction and goals As a result, managersare critical to the development of businesses

The capacity of the administrator, specifically in strategic planning, decisionmaking, and business planning, demonstrates the first level of enterpriseadministration A good administration apparatus should have sufficientqualifications and professional expertise; the ability to identify problems and solveproblems in a flexible and sharp manner; and the ability to anticipate potentialdifficulties and market development trends in order to provide direction and strategyfor the company Competent managers can also effectively employ corporateresources such as cash, human resources, technology, and so on, assisting firms inachieving positive business results and profits for the company

1.3.3 Competitive strategies

Product/Market Expansion Grid - Ansoff Matrix

Ansoff defined product-market strategies in his 1957 paper as "a joint declaration

of a product line and the matching set of missions which the products are planned tofulfill." He outlines four growth strategies for expanding a business in existing ornew markets, with existing or new products Each approach entails varying degrees

of risk for a company

Figure 1.2 Ansoff Matrix

(Source: H Igor Ansoff, 1957) Market Penetration

According to Hood, P 2004's book "The Power of the 2x2 Matrix," MarketPenetration is the strategy: alter nothing and sell more of the same to existingclients In this strategy, a company seeks to enhance its market share in anestablished market by utilizing current products In comparison to the other threestrategies, the market penetration strategy is the least risky The organization has thehistorical knowledge to identify the dangers, opportunities, and areas forimprovement from the previous strategy The company's present products' marketshare will be increased as part of the penetration plan Market Penetration is dividedinto four major techniques

Product Development

In this strategy, a company creates new items to meet the needs of an existingmarket This entails substantial research and development in order to broaden theproduct line This strategy is used by a company when it has a thoroughunderstanding of its existing market Furthermore, it should be capable of providingcreative solutions to fulfill market expectations For example, a company could

improve its existing products by adding features that provide greater value tocustomers Alternatively, it might launch new products alongside its presentproducts, perhaps cannibalizing them.

Market Development

In this strategy, a company uses its existing products to penetrate a new market.Expansion into new markets may imply entering new geographies, consumercategories, regions, and so on Companies must conduct systematic market research

to identify new prospective markets Then, they each target clearly defined marketsegments Firms may need to build new marketing and distribution methods for eachnew market This strategy works best if the company has proprietary technology that

it can use to enter new markets Consumers in new markets should be lucrative, andconsumer behavior in new markets should not stray too far from that of existingmarkets

The market development strategy is critical to the company's growth It is risky

to rely on a niche consumer base because it might be disastrous if that fails.However, in many aspects, market growth strategy divides and decreases disasterpossibilities Market development strategy directs the market development process

in a systematic manner that includes risk management and extensive marketresearch

Diversification

In this strategy, a company launches a new product into a new market Incomparison to the other three techniques, the diversification strategy is the mostaggressive and risky This is due to the fact that implementing this approachnecessitates both market and product development operations The first riskconcerns the uncertainty about the acceptance of a new product Consumers may beunwilling to try new products, for example, because they have no previousexperience The second risk concerns new markets It's possible that the corporationhas no prior experience with new markets As a result, in-depth research is required

to provide deeper insights into new markets One critical stage is to analyze themarket as part of a market development strategy

In general, organizations can pursue two forms of diversification The first one isrelated diversification, which is the possibility of realizing synergies between thepresent business and the new product/market The company can make use ofexisting knowledge to develop new markets and products around existing ones.Otherwise, diversification that is unrelated involved an entirely new area, in whichthe company will probably develop it internally Since there are no possiblesynergies between the present business and the new product/market, it usuallyconsumes resources and tends to be slow to grow sales.

1.4.Measures to enhance competitiveness of enterprise

In order to enhancing competitiveness, businesses need to focus on promotingactivities that create value for customers According to Porter's Value ChainAnalysis (M.Porter, 1985), value chain is a set of vertically linked activities to createand add value for customers Structurally, the value chain consists of two groups.First, primary activities include physical activities, related to product creation, saleand delivery to customers, as well as after-sales support activities The second aresupport activities, which will complement the main activities and support each otherthrough the provision of inputs, technology, human resources and other functions inthe enterpris An organization can more effectively measure its capabilities byidentifying and evaluating each activity Each value creation activity is considered aresource to create competitive advantage for the organization

Figure 1.3 Porter's Value Chain

(Source: M.Porter, 1985)

Depending on the characteristics of the business, the above activities will havedifferent roles and contributions to the competitive advantage of the enterprise For adistribution business, inbound and outbound logistics are the most important of theprimary activities, while in terms of support activities, the supplier evaluation andproduct quality assessment departments play the most decisive role

1.4.1. Enhancing the competitiveness of primary activities

Supply chain management

Input products will not be able to deliver to customers with the best qualitywithout a smooth and tightly controlled supply chain process Businesses maychoose from third-party supply chain solutions or build their own throughout.However, no matter which method is applied, businesses always need to focus oncontinuously updating the status of goods in real-time to ensure that the quality ofgoods does not deteriorate during the process of delivery, transportation and storageuntil it reaches the customer Optimizing supply chain management can also helpbusinesses reduce many related costs, reduce the cost of output products to bettercompete in the market

Vertical and horizontal supply chain integration are supply chain managementstrategies adopted by companies to take advantage of available advantages Thereby,increasing revenue and contributing to increasing competitiveness for othercompanies An effective supply chain will be a measure of the success of businesses,thereby satisfying their customers.

Vertical supply chain

A vertical integration is one in which one member takes the leadership role andcontrols the activities of the members in the distribution channel The advantage ofthis type of integration is that it increases the ability to coordinate actions,competitiveness and achieve high efficiency by taking advantage of the efficiency ofscale in distribution It eliminates duplication and reduces conflicts between channelmembers, while increasing the ability to get direct feedback from the market.However, vertical integration also makes it difficult to operate if the managers donot have high qualifications and experience, along with high management costs.Vertical supply chain integrations can be implemented to varying degrees, whichcan be divided into three categories:

- Backward integration: In which a company owns subsidiaries thatmanufacture inputs/components used in production

- Forward integration: In which a company owns or controls its distributioncenters and/or retailers Hence there is direct contact with the customer atthe end of the value chain

- Balanced vertical integration: In which a company implements bothbackward and forward integration by owning/controlling supply centers;manufacturing; its marketing and/or retail

Horizontal supply chain

Meanwhile, horizontal integration is an industry's supply chain strategy; wherebycompanies seek to gain a competitive advantage; profit growth through value-creating activities focused on a business or industry

Horizontal integration supply chain is the business model; whereby companiesacquire or merge with industry competitors to gain competitive advantage througheconomies of scale and scope.

This supply chain structure offers the advantage of focus and scope; especially infast-growing and dynamic industries; where companies are forced to concentrateresources; significant ability to compete in an industry to gain a lasting competitiveadvantage

The advantage of horizontal integration is that companies can better combinefinancial, production, and marketing resources to make sales than if that companywere to conduct sales alone; thereby facilitating the diversification of products andservices, taking advantage of the distribution channel system to save costs; spreadrisk However, it also creates contradictions, with dealers competing with eachother Mainly market competition damages the company's reputation and image due

to unfair competition agents

Product diversification and quality management

To be able to most fully meet the needs of customers in the market, businessesneed to study market trends, thereby expanding the list of goods and services thatwill be provided to the market This will help businesses stay ahead of the trend, beready to meet the arising new needs of customers, or use their own new and qualityproducts to create new usage habits for customers In addition, the diversification ofproducts helps businesses improve their competitiveness when products and servicescan meet many aspects necessary for customers' activities For corporate clients,being able to help them cut effort and resources for a variety of jobs is a big plus

In addition to diversification, the products that businesses provide always need to

be closely monitored for quality Product quality plays a decisive role in the survival

of an enterprise Product quality reflects the competitiveness of products in themarket Products with great competitiveness will be consumed a lot, increasingincome for businesses In addition, product quality has a direct impact on intangibleassets - reputation of enterprises in the market For distribution businesses, it isdifficult to influence product quality in the production stage, so businesses need toput a lot of effort when choosing quality products from suppliers and ensuring that

the quality is not compromised in the process from the manufacturer to thecustomer This means that product quality control is directly related to supply chainmanagement and supplier quality.

Quality of customer services

Besides paying attention to the quality of key products, improving customerservices is also a key factor that helps businesses affirm their competitiveness withcompetitors in the industry Customer service is usually understood in the broadestmeaning of providing a pleasant welcome to customers and serving them in themanner in which they expect to be served and perform the things they require This

is also one of the decisive factors for customer loyalty to the business It comprisesactivities both before and after the sale, such as transportation, packaging,installation, maintenance, warranty, and advice

Customer service is even more important for businesses that provide B2Bproducts and services B2B buyers look forward to long-term relationships andquality services because it directly affects business activities to their end users.Businesses are always very careful when considering suppliers, so services as anadded value for products will be an important competitive factor for a business tostand out from its competitors

Promotional activities

Promotion is one of the commercial promotion activities prescribed by law This

is an activity aimed at enticing customers to use products and services of traders, sothat consumers can benefit in the process of purchasing goods and using services;From there, entrepreneurs improve their competitiveness, sell more products, andincrease revenue Consumer goods sales promotion differs significantly from B2Bsales promotion Business sales are more emotional and informed than impulsiveconsumer purchases Business owners rarely buy on impulse, and if a companywants its B2B marketing efforts to be fruitful, it must demonstrate the value of itsproduct or service

The four types of sales promotion are advertising, direct marketing, personalselling, and public relations

- Advertising: Advertising is the promotion of a product, service, orcompany through television, radio, or social media It aids in thedissemination of information about business-to-business products orservices.

- Direct marketing: Direct marketing is a type of advertising in whichbusinesses communicate with customers via a variety of media such asmobile phone text, instant messaging services, email messages, websites,online advertisements, database marketing, product fliers, brochuredistribution, promotional erudition, and targeted TV spots, newspaper,and magazine advertisements, as well as any outdoor advertising

- Personal Selling: Personal selling is a technique in which companies sendsales representatives to the target consumer to sell the products in person.Here, feedback is immediate, and they also build trust with the customer,which is critical for moving the business forward

- Public Relations: Public relations is the practice of managing thedissemination of information between an individual or an enterprise (such

as a business, government agency, or nonprofit organization) and thegeneral public A successful public relations campaign can help theorganization's brand

1.4.2 Enhancing the competitiveness of support activities

Supplier diversification and quality management

With a commercial enterprise, the products are provided by other businesses.Product supply determines the quality, variety, brand, of the product and is one ofthe factors that help businesses compete in the market The activities of finding,negotiating, and entering into agreements with suppliers should be highly focused.Especially for import enterprises, it is more difficult to understand the foreignsupply market, which requires enterprises to invest resources to ensure effectivesupply Firstly, the company's suppliers need to be diversified The diversification ofsuppliers helps businesses to always be proactive in source of goods, less pressured

by supplier bargaining, and at the same time brings more diverse product categories

to suit the needs of many audiences customer In addition, this diversification also

needs to be accompanied by a strict supplier quality inspection process Ensuringinput standards is a prerequisite for the output products to reach customers with thehighest quality.

Quality of human resources

Human resources is the core value of any business To be able to apply any ofthe above measures to improve competitiveness, the value of the employees cannot

be ignored The enhancement of human resource capacity is very complicated, it isnecessary to improve throughout the process of recruitment, training, knowledgeenhancement to benefits to promote employee motivation

Training

Employee training can be understood as the process by which businessesorganize classes in an office environment, invite experts and lecturers to teachdirectly to employees, managers and leaders by short courses, specialized courses infields and specialties suitable for each department and individual Through training,employees and leaders will have the opportunity to improve their expertise andflexible working skills to serve the business activities of the enterprise The internalemployee training process is of great importance in the operation of the business, isthe optimal solution to help the business grow stronger and stronger thanks to ahigh-quality staff

Employee motivation

There are many different conceptions of motivation at work, but the most basiccommonalities are "willingness, effort, passion for work, desire and voluntariness ofemployees to make efforts to towards a certain goal or result of the organization aswell as the employees themselves” Work motivation is what motivates people towork enthusiastically, helping them promote their inner potential, overcomechallenges and difficulties, and complete the work in the best way Motivationexplains why a person acts when he or she goes to work without coercion, then theycan do more than what their superiors expect of them To be able to motivateemployees, leaders and managers need to find out what goals employees work toachieve, thereby promoting labor motivation and motivating employees.

The main goals of employees are: First, income, this is the most important goal

to make employees work because income helps workers to support themselves andtheir families for life and growth Second, personal development, this is the goalemployees want to improve themselves through training, development, and socialand cultural activities This goal is enhanced and more focused when employeeshave enough income to ensure their lives Third, to satisfy social activities is theneed to participate in social activities to assert themselves When the above twogoals have been met, the need to satisfy social activities is paid more attention byemployees

Efficiency of financial planning

Finance is one of the core issues of businesses Every business must develop afinancial plan for each time of business operation, which helps executivesunderstand how to use capital appropriately and bring financial efficiency to thebusiness In business, financial planning is an important and indispensable part.Financial planning is directly related to the financial goals of the business and howthe business uses human resources to achieve that financial goal Financial planningtakes a lot of time and personnel because it requires the participation of manydepartments in the business Financial planning actually includes financial goals andmethods of using financial resources to achieve the goal in the most effective way.Before making a business financial plan, it is necessary to have detailedproduction, technical and investment plans From there, the finance department inthe enterprise will make statistics, analyze and make assessments on the amount of

capital to meet the above plans such as the amount of working capital forproduction, long-term investment capital is money used procurement of equipmentfor development investment When implementing, business administrators musttrack and monitor each step in the process Portfolio reviews, market reports, taxoptions, insurance updates, etc are documents that need careful consideration Topredict and avoid risks Not only that, businesses also need to make the most of theirabilities to explore, observe and quickly grasp market changes in order toproactively adapt to changes.

A sound financial plan for a business will help managers know what the business

is doing well and where it is doing wrong, the assumptions behind each prediction,this is very important to find out why expectations and the re-implementation is notthe same as reality The financial plan also shows where shortfalls are likely tooccur; for management to adjust revenue and expense forecasts to avoid shortfalls or

to ensure the business has other reserves available; such as savings or loans to coverany cash shortfalls In addition, the financial plan also helps investors to assess thefeasibility of the enterprise's business plans through financial plans From there,businesses will have the opportunity to find suitable partners or have the opportunity

to be exposed to external capital sources Financial planning, with a forward-lookingfocus, allows business owners to see more clearly what is needed to maintain thecompany's growth momentum and stay ahead of the competition Financial planninghelps to continuously improve a company's performance Based on the financialplan, managers or business leaders can make reasonable budget plans and controlexpenditures, minimizing waste

CHAPTER 2: CURRENT SITUATION OF ENHANCING COMPETITVENESS OF ABQ TRADING AND TECHNOLOGY INVESTMENT JOINT STOCK COMPANY

2.1.Introduction of ABQ Trading and Technology Investment Joint Stock Company

2.1.1 Company formation and development

Table 2.1 Basic information of ABQ Joint Stock Company

JOINT STOCK COMPANY

district, Hanoi city, Vietnam

Type of business Non-state joint stock company

Status In operation (have been granted the registration certificate)

(Source: Business Register of ABQ Joint Stock Company)

ABQ Trading and Technology Investment Joint Stock Company, established in

2013, is one of Vietnam's most experienced SMEs in the areas of trading, logistics,and installation of electronic and telecommunications components With steadysteps in the past 10 years, ABQ has affirmed its brand, bringing more and moreproducts and services to serve projects across the country

In 2013, ABQ Trading and Technology Investment Joint Stock Company was

established, specializing in importing and distributing electronic andtelecommunications equipment from Chinese suppliers to some small projects inVietnam

In 2015, recognizing the growing demand for imported equipment from the

domestic market, ABQ expanded its business, providing more logistics services such

as forwarding, customs clearance, insurance and goods inspection for electrical andtelecoms component products ABQ's supply partners are also expanding to otherAsian markets such as Japan and Korea

In 2017, ABQ continued to diversify its services with fiber optic and electrical

cable installation and construction of telecommunications, electricity - electronics,informatics and broadcasting infrastructure At the same time, the company alsosigned more import contracts with prestigious partners in the world from the US andFrance

2.1.2 Organizational structure of the Company

The rationality of the management apparatus has a significant impact on theefficiency of production and company activities in general The placement ofpersonnel in the organizational structure in accordance with their capabilities andcompetencies is one of the most significant criteria for an efficient organizationalstructure

Figure 2.1 Organizational structure of ABQ Joint Stock Company

(Source: Human Resources Unit of ABQ Joint Stock Company)

ABQ Trading and Technology Investment Joint Stock Company is structuredwith four main divisions, including Sales and Marketing Department, LogisticDepartment, Operations Department and Administration Department Thesedivisions are under the direct management of the Board of Directors, each with anumber of smaller units, responsible for each field and activity of the company.While Sales and Marketing Department and Logistics Department are the two keydepartments of the business, creating value and bringing the main revenue for thecompany, Operations Department and Administration Department helps to ensuresmooth and efficient operations of the company

Board of Directors

The Board of Directors is the highest governing body of the company, headed bythe Chief Executive Officer (CEO) CEO is the legal representative and head of thecompany who has the role of orienting, deciding the strategies, operating policiesand monitoring the business results of the company CEO is supported by a team offour Deputy Chiefs who are directly responsible for the management of eachCompany's department

Sales and Marketing Department

Headed by Chief Sales and Marketing Officer, the Sales and MarketingDepartment is in charge of advising and proposing the business plans In terms ofSales, the department has the responsibility for maintaining its customer base,making sure buyers are satisfied, as well as trying to upsell them The division isproactive in contacting customers attempting to solve any problems that might causethe company to lose customers In terms of Marketing, they cover the management

of advertising, social media, public relations, sales, event sponsorship, discounts,loyalty programs and so on, in order to boost sales

Logistics Department

Headed by Chief Logistics Officer, the Logistics Department controls the flow ofgoods between the place of origin and the point of consumption in order to suit theneeds of customers or corporations In other words, this department ensures thesmooth import of commodities from international suppliers, completes relevantprocedures, stores the goods, and transports them to customer firms

Operations Department

Headed by Chief Operations Officer, the Operations Department focuses onmanaging and controlling that each project is completed from start to finish Theywork on installation management, technical supervision, volume acceptance,comprehend the construction status of the works in preparation for bidding, researchtechnical documentation, etc

Administrations Department

Headed by Chief Administrative Officer, the Administrations Department takesresponsibility of all activities related to human resources, financial and accounting,and legal In particular, they oversee financial management, undertake economicaccounting, financial and asset management, ensure compliance with labor law andemployment standards, arrange talent acquisition, administer employee benefits, andprovide legal advice.

2.1.3 Products and services

ABQ Trading and Technology Investment Joint Stock Company is a supplier ofproducts and services related to electronic equipment and telecommunicationscomponents for customers who are organizations and businesses in Vietnam (B2B).Specifically, the business field of the enterprise includes 3 main activities In which,the main activity is providing electronic and telecommunications products, inaddition, ABQ also provides services related to logistics, installation andconstruction of telecommunications infrastructure to best meet the needs ofcustomers

Trading in electronic equipment and telecommunications components

Trading is the main activity of the business, bringing the main source of revenueand profit The company primarily conducts business by project In other words,ABQ accepts project-by-project orders from businesses and imports products thathave been modified to match customer needs This type of sales assists firms inlimiting output risks by correctly and adequately satisfying the needs of eachproject For some large projects, ABQ will participate in bidding to win the right toprovide products and other services to customer partners

Domestic and international logistics services of electronic equipment and telecommunications components

In terms of domestic and international logistics services, ABQ provides servicesrelated to the area of equipment telecommunications, electronics, informationtechnology, broadcasting, which includes:

- Customs clearance, insurance and inspection of import and export goodsservices;