Nhóm 9.Pdf

Guided by Lecturer Nguyen Thu Huong Researched by Group 9 Full name Nguyen Thi Quynh Anh Le Thi Ngoc Anh Nguyen Thi Ha Tran Thai Hoc Nguyen Phuong Linh Do Thi Hong Nhung Ta Thi Quynh Trang Pham Thi An[.]

Guided by Lecturer Nguyen Thu Huong

Researched by Group 9

Full name

Nguyen Thi Quynh Anh

Le Thi Ngoc Anh

Nguyen Thi Ha

Tran Thai Hoc

Nguyen Phuong Linh

Do Thi Hong Nhung

Ta Thi Quynh Trang

Pham Thi Anh Tuyet

Student ID

21A4050032

21A4050049

21A4050122

21A4050172

21A4050242

21A4050326

21A4050446

21A4050470

1 Research purpose

In the context that the world is facing increasingly serious air pollution, the trend and demand for electric vehicles are increasing rapidly In the not too distant future, electric cars will become a means of "dominating" roads around the world

The smart electric vehicle industry is a new trend, the market is expanding and increasing every year, the competition is not too fierce, it is an opportunity for Startups in this field

We did an analysis and research to evaluate the opportunity to export VinFast's electric cars to the potential US market This study provides an analysis of the business environment of the enterprise (PESTLE) and learns about the risks that VinFast may face when exporting cars to the US to help businesses come up with a development strategy to penetrate the market in the most efficient way

2 Research subject

TTO - A research firm first predicts cars will dominate the auto market in the next 10 years by prioritizing low cost, energy efficiency, and a protective environment over transmission cars Vietnam updates the trend of world automobile technology and gradually develops the dream of the automobile in the future VinFast Vietnam kicked off strongly when it launched the first electric car "Made in Vietnam " to the market and quickly attracted the attention

of customers This is really a big step forward for Vietnam's auto industry in particular and Vietnam's science and technology in general

- Product: Electric cars

- Company: VinFast

- Potential market: The US market

VINFAST BACKGROUND

VinFast (or VinFast LLC; abbreviated as VF), full

name VinFast Manufacturing and Trading

Company Limited, is a Vietnamese manufacturer

of automobiles and electric motorcycles

established in 2017, with The head office is

located in Hai Phong city VinFast is a member of

Vingroup The name of the company stands for

"Việt Nam – Phong cách – An toàn – Sáng tạo –

Tiên phong" (the letter Ph changes to F)

VinFast has an impressive slogan of "Intense

spirit of Vietnam" This slogan was born based

on the aspiration that Vingroup set, which is to

create a Vietnamese international brand

The company showcased its first design

prototypes specifically for the Vietnamese market

at the 2018 Paris Motor Show in France, including

a sport utility vehicle (SUV) and a sedan These

models were expected to launch in September

2019 but were actually delivered on July 28 of the

same year After cars, VinFast has begun to

manufacture and sell electric motorcycles and will

continue to sell electric cars VinFast cooperates

in technology, engineering, strategic consulting

support, human resource training with the largest

global manufacturers of automobiles, spare parts,

and heavy industrial equipment, from Europe to

Asia and America

Awards and Regotiation

- “A Star is Born" by AutoBest in 2018

- “New Manufacturer Safety Commitment” by ASEAN NCAP Grand Prix Awards in 2020

- Achieved highest NCAP ratings for each segment

VinFast has become the #1 car seller in all of their competing segments within just 21 months of launching in Vietnam and they will launch our smart Evs -Eelectric Vehicles- globally in 2021 Their thoughtful design focuses on seamless customer experience, highest safety standards, superior craftmanship, and intelligent Infotainment with lifestyle personalization

The future goal of VinFast is to gradually increase the localization rate of components, towards technological and technical autonomy, besides, the company continues to invest in development , expanding the domestic market share at the same time going to international markets

Produc lines

Cars:

- Fadil

- Lux A2.0

- Lux SA2.0

- President

- VFe34

eScooters

- Ludo

- Impes

- Feliz

- Klara S

- Theon

VINFAST BACKGROUND

As mentioned above, VinFast has recently produced a line of electric cars that meet European, American and Asian standards Moreover, VinFast's goal is to build a Vietnamese car brand of international stature So with such a good line of cars VinFast should export to new markets to bring Vietnamese electric cars to the world

And the potential market of this research is the US market

So, why should VinFast export to the US market?

The US is the most dynamic and vibrant car market in the world AAA research shows that more and more Americans are interested in electric cars and other electrified vehicles, especially among young people $174 billion is the money the Biden administration is using to make electric cars more accessible and to encourage people

to use them, as part of a program to fight climate change While it may not be the key

to driving America to the era of zero-emission vehicles, it is seen as a major investment to spur faster growth in demand for electric vehicles in this country

1 Political environment

a Polit ical stability

The United States has hundreds of active political parties However, in the history of the United States, only Democrats and Republicans have alternated in power and governing is through fiercely competitive elections, the rest of the parties can only participate in life socio-political life to a

limited extent Although political parties

have always competed with each other for

control of the state apparatus, they still

shared a common commitment and

fundamental values of society: that of the

republic respect the Constitution and its

principles The Constitution and laws in the

United States force all political parties,

including the ruling party and interest

groups, to comply with the law, to

implement the law, to compete, to compete

for influence, and to support voters within

the framework of the law the prescribed framework of the law, of the agreed "rules of the game" All violations will be handled according to the provisions of law The law provides a legal basis for political parties to fight for and control state power

b Relationship with Vietnam

U.S.-Vietnam people-to-people ties have flourished Twenty-five years after the establishment of bilateral relations in 1995, the United States and Vietnam have

trusted partners with a friendship grounded in mutual respect U.S.-Vietnam relations have become increasingly cooperative and comprehensive, evolving into a flourishing partnership that spans political, economic, security, and people-to-people ties The United States supports a strong, prosperous, and independent Vietnam that contributes to international security; engages in mutually beneficial trade relations; and respects human rights and the rule of law

2 Economic environment

a Overview of the US economic

The United States is the world’s greatest economic power, measured in terms of gross domestic product (GDP)

*GDP

Real GDP decreased 3.5 percent in 2020 (from the 2019 annual level to the 2020 annual level), compared with an increase of 2.2 percent in 2019

Gross Domestic Product of United States grew 1.6% in the first quarter of 2021 compared to the previous quarter This rate is 5 -tenths of one percent higher than the figure of 1.1% published in the forth quarter of 2020

* Rate of inflation and unemployment

- Inflation

The annual inflation rate in the US soared to 4.2% in April of 2021 from 2.6% in March and well above market forecasts of 3.6% It is the highest reading since September of 2008, amid a surge in demand as the economy reopens, soaring commodity prices, supply constraints There is also a base effect weighing as the coronavirus pandemic dented economic activity bringing the inflation rate to 0.3% in April 2020

(The graph shows the inflation rate in the US to 2021)

-Unemployment

Unemployment is one of the most critical economic issues facing the country as it balances reopening with safety a year into the pandemic In April 2020, after governments shut down the economy, the unemployment rate reached 14.7%, the highest since the Great Depression The current U.S unemployment rate is 6.1% for April 2021, the Bureau of Labor Statistics (BLS) said in its monthly report, released May 7, 2021

Overall, the number of unemployed is at 9.8 million.1 The ongoing job losses show the tremendous impact of the COVID-19 pandemic on the employment situation

(The graph shows the unemployment rate in the US to 2021)

b Trade international

The United States is the largest importer of goods and the largest exporter in the world

In 2019 United States imported $2.38T, making it the number 1 trade destination in the world

In 2020, the total value of U.S trade goods amounted to 3.77 trillion U.S dollars The main import and export items are:

 Machinery including computers

 Electrical machinery, equipment

 Vehicles

Mexico and China also feature at the top of the list of importers of U.S goods

3 Social environment

a Language

There is no official language of the United States, according to the U.S government While almost every language in

the world is spoken in the United

States, the most frequently

spoken non-English languages

are Spanish, Chinese, French and

German Ninety percent of the

U.S population speaks and

understands at least some

English, and most official

business is conducted in English

b Religion

Nearly every known religion is practiced in the United States, which was founded on the basis of religious freedom About 71% of Americans identify themselves as Christians, according to information gathered by the Pew Research Center, a nonpartisan research group, in 2017 The research also found that about 23% had no religious affiliation at all and around 6% of the population is made up non-Christian religions

Therefore, social factors are not a barrier to entering the US market and cultural differences do not affect negotiations between the US and Vietnam

4 Technology

The United States remains the world leader in science, technology, and innovation With 11/20 of the world's largest technology corporations being American, such as Apple, Amazon, Microsoft, Alphabet and Facebook, Those are the "guides" in the 4.0 revolution

The automotive industry in the United States began in the 1890s In 2017, the US invested 484 billion USD in research and development (R&D), accounting for about 25% of global R&D

The speed of development of cars is getting more and more intelligent In 2021, automotive technology in the US will improve many new functions and safety benefits for users:

o Adaptive Cruise Control (ACC)

o Automatic Emergency Braking (AEB)

o Lane Departure Warning/Lane Keep

o Blind Spot Detection

o Rear view Camera

o Remote control parking

The US is instrumental in research and funding in many fields So, it comes as no surprise that US companies also popularise electric vehicles They lead the transition from fossil fuel as a source of transportation fuel to a sustainable and environmentally friendly source, electric energy

VinFast is a leader in the automobile manufacturing industry in Vietnam However, compared to the US, one of the three leading countries in automobile production technology in the world,VinFast automobile production technology is still weaker

5 Legal environment

a.Law system

*Fairness in the legal system

- This is considered one of the strong points of the US compared to other countries

- Doing business in the US, investors will be free to transfer capital, profits, physical and financial infrastructure Unlike other countries, the US doesn't have “minimum investment required” or other rules

+ The procedure for registration and establishment of a business company in the US is simple

+ Flexible labor contract

-The US attaches great importance to small and medium enterprises

There are two licensing systems in the US These are Federal license and approval, State License and approval These two systems exist in parallel and govern the business activities of enterprises However, setting up a business company in the US is relatively easy and quick

-> With such a legal system, VinFast intends to establish a showroom system or produce electric car factories in the future in the US, which will have many opportunities to benefit from an open and transparent investment environment transparent as well as non-discriminatory

b Tax

The US levies an import tariff on all imported vehicles, based on their value at the time of purchase This is charged at 0-2.4% for motorcycles, 2.5% for cars, and 25% for trucks and lorries

Although Vietnam has enjoyed the MFN tax rate, some Vietnamese goods imported into the US are still subject to higher tax rates than goods of the same type imported from some other countries and regions Because the US has a free trade agreement or a unilateral preferential trade agreement with these countries and regions

-> The only solution currently to overcome this difficulty is to improve production management to reduce product costs This is quite difficult for VinFast with high tax rates

6 Environmental

New research from the American Lung Association finds that more than four in 10 people – a whopping 135 million in the US – live in counties with unhealthy levels of particle or ozone pollution

Emissions of air pollutants continue to play an important role in a number of air quality issues In 2020, about 70 million tons of pollution were emitted into the atmosphere in the United States

Air pollution in the US has caused widespread concerns In 2020, the Public Policy Institute of California (PPIC) Survey on Californians and the Environment showed that 45% of citizens in the US consider air pollution to be a “big problem”, and 47% believe that the air quality of US is worse than it was 10 years ago

Vehicles are the main source of air pollution in the United States