The risk precautions of cashew products in binh phuoc province under the wto entry process in the period from 2011 to 2015

Table 4-10-5 The Ability to Eliminate the Risks Caused by the Impact of the Economic Environment 8b6...46 Table 4-10-5-1 Total Number % of The Risk Limitation Factors in Cashew Export...

MEIHO UNIVERSITY

Graduate Institute of Business and Management

MASTERS THESIS

The Risk Precautions of Cashew Products

in Binh Phuoc Province under the WTO

Entry Process in the Period

from 2011 to 2015

In partial fulfillment of the requirements for the degree of

Masters of Business Administration

Advisor: Dr Shao-Hsi Chung Co-advisor: Dr Nguyen Minh Tuan Graduate Student: Tran Van Hue

December, 2010

Sincerely thank Professor Shao-Hsi Chung, University of Meiho, Taiwan (MIT Taiwan), though he is very busy with his work, he spend time instructing and helping me during my research, from choosing topics, doing research to completing it

Thank lecturers of department of postgraduate, professors of management and business at the University of Meiho, Taiwan (MIT Taiwan); my classmates of class EMBA 2 of Ho Chi Minh City University of industry, for the assistance, support and encouragement for me during the past two years I learned a lot of valuable knowledge and new skills from this course

I would also like to thank the President, members of the Board of management of the University of Meiho, Dr Ron-Chuen Yeh, dean of postgraduate department at the University of Meiho (MIT Taiwan); the Professors, officers and administrative staff, the University of Meiho, Taiwan for devotion on helping me to do research, for warmly welcome, warm caring, enthusiastic caring which make me and my friends impressed during our staying at school

Please thank postgraduate students of EMBA class, university of Meiho, Taiwan for supporting me a lot in the process of taking this course

Last but not least, I would like to thank people’s committee of Binh Phuoc province, the Department of Trade and Industry, Department of Statistics in Binh Phuoc province, Vietnam Cashew Association, Department of Crop Production, Processing Department, Southern Agricultural and Technical Institute , the top experts, the farmers, Cashew

processing and export - import enterprises of Binh Phuoc province that have helped me to collect information, documents, answer the survey questions and interviews Moreover, they help me examine and access contents of this research properly, at the same time give new points for the research and limit risks in the business of cashew import and export of the province

Sincerely thank you

The Risk Precautions of Cashew Products

in Binh Phuoc Province under the WTO Entry Process in the Period from 2011 to 2015

ABSTRACT

Binh Phuoc, a mountainous province located in the West of the South East, is a rich basalt soil region, which is suitable for the cultivation of industrial crops such as rubber, cashew, pepper, beans, sesame In recently decades Binh Phuoc has strongly developed cultivation, processing and export Binh Phuoc now has 177 cashew processing enterprises and 298 small processing units, with a total capacity of 47,700 tons per year In 2009, Binh Phuoc exported

18 636 / 177, compared with the country, Binh Phuoc is now known as the capital of the cashew

However, in the production of import-export business, cashew enterprises in Binh Phuoc provnce have a lot of risky shortcomings which limit import and export business of the enterprises Therefore, finding a risk factors in the import-export business in Binh Phuoc province, Vietnam is very necessary, and then we should offer solutions that help businesses minimize the risk of losses in import-export business in the WTO entry process during the period from 2010 to 2015

In recent years, the cashew processing and export industry of Binh Phuoc province hass faced many difficulties, such as constant price fluctuation, quality, volatile production, and food safety which does not meet the requirements of importing countries, the level of management and application of scientific and technical advances in this industry are limited and unbalanced

The enterprises must always compete fiercely, foreign language skills and management experiences of staff in the process of negotiation, contract drafting, contract signing, transport, method of payment, in commitment contract are still restricted, which leave many risks in the import-export business activities

To have a base to do research, the study must identify research objectives such as: risk factors relating to nature, to the processing, to export and import activities and even including domestic business

Limitations of the research: This research only focuses on the risk factors in the business

of import and export of the enterprises in Binh Phuoc province, and then propose some solutions to prevent them

To make orientation for developing this business, the Prime Minister signed Decision No 120/1999/QD-TTg approving the cashew development project in 2010 with the following norms: cashew planting area is 340,000 ha of, raw cashew production is 230,000 tons, cashew processing output is 45,000 tons, and export output is $220 million The Ministry of Agriculture and Rural Development issued a decision approving the planning of 39/2007/QD-BNN cashew sector till 2010 and made orientation to 2020 with key indicators such as:

The area is 450,000 ha, raw cashew production is 500,000 tons (imported 150,000 tons), the output of processing is 140,000 tons, export turnover is $ 670 million; people’s committee

of Binh Phuoc province issued Decision No 31/2008 / QD-UBND dated 07/08/2008 on approval of the planning sector of Binh Phuoc during the period from 2010 to 2015 and vision

of 2020, Decision No 46/2009 on the production, processing under ISO, HACCP, GAP process to meet the requirements of the importing country; decision No 50/2009 on promotion of innovative machinery and equipment in the processing and export and Festival

of Gold cashew in Vietnam, Binh Phuoc province was held in the beginning of March in 2010,

to introduce and confirm with global enterprises in this industry that Vietnam as well as Binh Phuoc province develop and will develop strongly in cashew business

Research methodology: The study was conducted by two methods, which are quantitative and qualitative methods, (1) quantitative methods applied to the objects that are the managers

of import and export of processing enterprises, (2) qualitative methods applied to the subjects that are experts, departments, industry associations and the scientists

Designing survey questions: From the data collected in Chapter 2, research steps in Chapter 3 and proposed research methods, the study conducted 16 questions for the two groups, group one is business managers, with 9 questions, group 2 is specialists of the departments, associations and scientists, with 7 questions, then sent to five professional experts who are working in the institutes (Southern Institute of Agricultural Science and Technology, HCM institute of mechanics), the professors, doctors are teaching at universities,

to assess the structure, content of the questions from the questionnaire, in accordance with the objectives of the research 9 questions of group 1 was printed out with the number of 123 sheets, 7 questions of group was printed 17 sheets and sent to each group (attached list), after

45 days, they were collected (on 15th October, 2010) Following was to classify the answers and decide they were passed or failed on the request of instructions, to conduct and run the program SPSS matrix method for analyzing and processing

Basing on the analysis and results of treatment, the study pointed out the risk factors to the processing, import and export business, then proposed solutions and recommendations for the

processing and import-export business so that they can limit the risks in import-export business in the WTO entry process during the period from 2010 to 2015

Keywords: Cashew Product, Binh Phuoc Province, Risk Precaution, WTO

The Risk Precautions of Cashew Products

in Binh Phuoc Province under the WTO Entry Process in the Period from 2011 to 2015

Contents

ACKNOWLEDGMENTS I ABSTRACT III Contents VI Tables IX Figures IX

Chapter1 Introduction 1

1.1 Overview of Binh Phuoc 1

1.2 Research Objectives 2

1.2.1 Research on risk factors relating to nature 2

1.2.2 Research on risk factors relating to cashew processing 3

1.2.3 Research on risk factors relating to export activities 3

1.2.4 Research on risk factors relating to cashew import 3

1.2.5 Research on risk factors relating to the processing of domestic business 4

1.3 The Research Scope and Limitations 4

1.3.1 Scope of research 4

1.3.2 Limitations 4

1.4 Definitions 5

1.4.1 Definition of risk 5

1.4.2 Other concepts 5

1.5 Terminology 6

Chapter 2 Literature Review 7

2.1 Orientation and Development Results of Vietnam’s Cashew Sector 7

2.2.1 Development goals 12

2.3 Data Prves That Cashew Business Is a Key Economic Sector 13

Chapter 3 Research Methodology 16

3.1 Research Process 16

3.2 Research Methodology 18

3.2.1 Survey method 18

3.3 Deliver Survey Questionnaire 20

3.4 Validity and Reliability 21

3.5 Questionnaire Design 24

3.6 Collecting the Data 25

3.7 Analytical Methods 25

Chapter 4 Research Results and Analysis 27

4.1 Elements within the Enterprises to Ensure the Sustainable Export 27

4.2 The Level of Interest in Fluctuations of the Domestic and the World Market 28

4.3 The Competitive Advantage of Enterprises in the Cashew Processing Industry in the Province Compared to Other Enterprises in the Country 30

4.3.1 Competitive factors of the brand 30

4.3.2 Competitive factors of advanced technology 31

4.3.3 Competitive factors in management level 32

4.3.4 Competitive factors on capital for export activities 32

4.4 The Risk Level of External Factors Impact on the Business Activities of Enterprises 34 4.5 The Level of Risk in the Process of Buying Raw Cashew in the Country 35

4.6 Assessment of Capability Limiting Business Risks in the Procurement of Raw Cashew in the Country 36

4.6.1 Synthesis of limitation level of risks in buying the raw cashew 36

4.7 The Level of Risks in the Import Process of Raw Products 38

4.8 Ability to Limit the Risks of Importing Raw Cashew 39

4.8.1 The ability to limit risks in foreign trade contract negotiations 39

4.8.2 Limiting the risks of contract performance 40

4.8.3 Synthesis of risk limitation ability in the process of raw cashew import 41

4.10 Ability to Limit the Risks of Cashew Exporting 44

4.10.1 The ability to limit the risks in transporting cashew exports (8b1) 44

4.10.2 The ability to limit the risks in the implementation of the export contract (8b2) 44

4.10.3 The ability to limit the risks caused by lack of foreign language knowledge and communication skills of negotiating staff (8b3) 45

4.11 The Risks of Cashew Manufacture Process for Export 49

4.12 Assessment of the Ability to Eliminate the Risks in the Export Processing 49

4.13 Analyzing and Assessing the Survey Results from the Experts of Departments and the Science Association 53

4.14 Findings of the Thesis 62

Chapter 5 Conclusions and Suggestions 64

5.1 Concolusion 64

5.2 Suggestions 71

References 74 Attachment LXXVII

Tables

Table 2-1 Key Indicators of Cashew Industry of Vietnam and Binh Phuoc in 2007, 2008,

2009 8

Table 2-2 The Growth Targets Over Three Years (2007, 2008, 2009) 11

Table 2-3 Some Indicators Which Show a Comparison between Vietnam’s Cashew Sector and Binh Phuoc’ s Cashew Sector 13

Table 2-4 Comparison of Cashew Export Turnover in 3 Years 14

Table 3-4 Result of Cronbach’s Alpha 22

Table 4-1 Factors Ensure Sustainable Export 27

Table 4-2 Level of Interest in Fluctuations of the Country and the World Market 29

Table 4-3-1 Product Brand 30

Table 4-3-2 Advanced Technology 31

Table 4-3-3 Enterprise Management Level 32

Table 4-3-4 Competitive Factors on Capital for Export Activities 32

Table 4-3-4-1 Synthesis of Competitive Elements of the Enterprises 33

Table 4-4 The External Factors Impact on Business Operations of the Enterprises 34

Table 4-6 The Ability to Limit Risks of Purchase of the Products with Bad Quality 36

Table 4-6-1 Synthesis of a Limitation Level of Risk in Buying the Raw Cashew 36

Table 4-7 The Level of Risk of Importing Raw Product (c7a) 38

Table 4-8-1 Negotiations of Foreign Trade Contracts (7b1) 39

Table 4-8-2 Import Contract Performance (7b2) 40

Table 4-8-3 Synthesis of Risk Limitation Ability in the Process of Raw Cashew Import 41 Table 4-8-4 The Payment of Imports (7b8) 42

Table 4-9 The Level of Risk in the Process of Cashew Export (8a) 43

Table 4-10-1 The Ability to Limit the Risks in Transporting Goods for Export (8b1) 44

Table 4-10-2 The Ability to Limit Risks in the Implementation of the Export Contract (8b2) 44

Table 4-10-3 The Ability to Limit the Risks Caused by the Export Negotiating Staff Who Are Not Good at Foreign Languages (8b3) 45

Table 4-10-4 The Ability to Eliminate the Risks in Delivery, Receipt and Inspection of Goods (8b3) 45

Table 4-10-5 The Ability to Eliminate the Risks Caused by the Impact of the Economic

Environment (8b6) 46 Table 4-10-5-1 Total Number (%) of The Risk Limitation Factors in Cashew Export 48 Table 4-11 Risk Level in the Processing of Raw Cashew Export Products 49 Table 4-12-1 The Ability to Eliminate the Risks of Imported Raw Materials with Low

Quality (9b1) 50 Table 4-12-2 The Ability to Eliminate the Risks in Cashew Processing According to ISO

Standards (9b2) 51 Table 4-12-3 The Ability to Eliminate the Risks Due to not Meeting Requirements of

Food Hygiene and Safe of Importing Countries (9b3) 51 Table 4-12-4 The Figure of Synthesis of Ability to Eliminate the Risks in Export

Processing 52 Table 4-13-2 Manufacture and Development Investment of the Sector over 4 Years .55 Table 4-13-3 Comparison of Cashew Exports over the Last 4 Years 55 Table 4-13-4 Export Activities of Binh Phuoc Cashew Sector from 2011 to 2015 (c3) 56 Table 4-13-5 The Advantages of Cashew Import and Export Activities (C4) 57 Table 4-13-7 Competitive advantages of the Binh Phuoc Province Cashew Sector during

WTO Entry Process 59

Figures

Figure 3-1 Research Process 17

Figure 4-1 Brand Name Elements 30

Figure 4-2 Advanced Technology 31

Figure 4-4 The Factors Impact on the Enterprises 34

Figure 4-5 The Level of Risk in Buying the Raw Cashew (c 6a) 35

Figure 4-7 The Level of Risk of Importing Raw Product (7a) 39

Figure 4-10-6 The Ability to Eliminate the Risks Due to Impact of Cultural Environment (8b5) 46

Figure 4-10-7 The Ability to Limit Risk by the Impact of the Economic Environment (8b6) 47

Figure 4-10-8 The Ability to Eliminate the Risks of Foreign Currency Fluctuations (8b7) .47

Figure 4-10-9 The Ability to Eliminate the Risks of Payment of Export (8b8) 48

Figure 4-12-1 The Ability to Eliminate the Risks of Imported Raw Materials with Low Quality (9b1) 50

Figure 4-12-5 The Ability to Eliminate the Risks Due to Instable Material Output (9b7)53 Figure 4-13-1 Development Investment Level of Cashewsector in Binh Phuoc Province in Last 3 Years (C2) 54

Figure 4-13-7 Competitive Advantages of the Binh Phuoc Province Cashew Sector during WTO Entry Process 60

Figure 4-13-8 The Solutions to Improve Competitiveness Ability (c6) 61

Figure 4-9 The Key Processing Industry and Export of the Province (c7) 62

Figure 5-1 The Process of Purchasing Raw Cashew of the Enterprises 64

The Risk Precautions of Cashew

Products in Binh Phuoc Province under the WTO Entry Process in the Period

from 2011 to 2015 Chapter1 Introduction

This chapter focuses on studying the following issues: (1) overview of Binh Phuoc province, (2) research objectives, (3) research scope and limitations, (4)

definitions of terms

1.1 Overview of Binh Phuoc

Binh Phuoc province, which in the western mountainous province of Southeast area, is located in the southern key economic region, split on 1st January, 1997 from the former Song Be province, the total area of natural land is 6874 km2 and the population is 874,964 people, the population density is about 127 persons/km2 Binh Phuoc province is divided into 10 administrative units including 7 districts: Bu Dang, Dong Phu, Loc Ninh, Chon Thanh, Bu Dop, Bu Gia Map, Hon Quan and 3 towns: Dong Xoai Town, Binh Long Town and Phuoc Long town Binh Phuoc province now has 177 cashew processing enterprises, including 30 enterprises manufacturing and exporting cashew directly It also has 298 small and medium-size factories that operate as assistants to stimulate larger enterprises to develop; total production capacity goes up to 47,700 tons

Binh Phuoc, a newly established province on 1st January 1997, was separated from the former Song Be (now Binh Duong province) with a low starting point, the area of cultivation is 60,000 hectares, and capacity is 0, 43 ton/hectare Nowadays, Cashew growing area reaches to 157,562 hectares, of which the harvested area is 131,866 ha with 1.17 tons / ha, 154,077 tons of raw cashew production, export turnover is U.S $ 75.493 million, (nation turnover is 914.43 million) compared to the country, export sales are 14,278 tons (the country is 167,000 tons) compared to the country In 2009 Binh Phuoc continued to increase the volume of export, export products are 18,636 tons, compared to the national 177.000/tons

Binh Phuoc is now known as the "Capital province of Cashew," ranks at the first in the country and Vietnam cashew industry ranks at the first in the world in volume of nut exports and ranks at the second in the world in cashew raw production, following India Export of cashew nut is considered as a key economic sector, bringing foreign currency to the province In the business of cashew import and export process, however, cashew sector of Binh Phuoc province faces up with many risks in integration process, which causes limitations for the enterprises of cashew import and export In recent years, Binh Phuoc has had many scientific studies, many projects and master, PhD dissertation addressing about cashew export activities However, the studies, subjects and thesis focus on economic development orientation, competitive strategy, business strategy and planning business strategies for large enterprises or for the industry So the research on the risks that may occur during cashew import and export business in Binh Phuoc province is highly new and applicable So finding risk factors in the business activities of import and export in Binh Phuoc province, Vietnam is very necessary.

The results of this study will help cashew processing and export-import enterprises of Binh Phuoc province be aware of and limit losing risks of the business

of import and export, creating a foundation to develop stable, improving the competitiveness of enterprises in the current integration trend Research results will be

a basis for measures to prevent risks in the business of cashew import and export of Binh Phuoc province, in the process of WTO accession during the period from 2011

to 2015, which enables cashew import and export business to develop stably

1.2 Research Objectives

1.2.1 Research on risk factors relating to nature

To ensure that supplies of raw materials for cashew processing enterprises and exporters in Binh Phuoc province are stable and limit the risks involving in the production and export Firstly, cashew growing farmers need to apply scientific and technical progress, from planting to caring for it, harvesting and storage, to produce products that clean and friendly with our environment GAP process, and to create new seeds, to change the old trees with low productivity by the young one with high yield, and to build raw material resources focusing and creating a connection among four houses (farmers, entrepreneurs, scientists and goverment) All of the above

suggestions are raised in order to limit the risk from the natural environment for this sector

1.2.2 Research on risk factors relating to cashew processing

In cashew processing, enterprises need to consider the factors involving directly

or indirectly which affect the quality of processed products such as workers’ professional skill, slow processing technology innovation, application of production processes according to international standards Processing often generates many risks, such as purchase of poor quality, competitive procurement among firms outside the province, competition in procurement among agents in the province, price rise of raw cashew, in the delivery of goods, payment and foreign currency fluctuations

1.2.3 Research on risk factors relating to export activities

In cashew export business, what do enterprises need to care about? The problems usually generate the risks and obstacles which damage to the property and assets of the enterprises The problem here is also the subject of research, studying factors relating to the risk in the export activities such as contract payment conditions (such as collecting payment at sight, pay certificate from the bank through other banks the exporter then proceed up the delivery and make payment by setting up documentary credit or money transfer), in contract negotiations and signing contracts,

in the process of carrying out the contract, during transportation, discrepancies in quantity, quality goods, goods inspection, weak foreign language proficiency, foreign currency fluctuations and risks of economic, law, political, cultural changes, even risks occuring by economic crisis

1.2.4 Research on risk factors relating to cashew import

Raw material inputs for the processing and export of the enterprises in Binh Phuoc province are high enough or meet demand, with present capacity However, when the harvest season comes, the enterprises outside the province rush to purchase cashew On the other hand, commercial enterprises only purchase and export Secondly, the capital reserves to buy raw materials for processing does not meet all year, which leads to processing enterprises only about 2 / 3 year time Therefore, the enterprises have to import the raw materials from the other countries to maintain the operation of processing plants for export products dring the rest time

1.2.5 Research on risk factors relating to the processing of domestic

business

Domestic market develops slowly, enterprises need to invest in manufacturing products from human food to meet the tastes of consumers, and establish distribution channels for domestic market growth On the other hand, the products made from cashew nuts need to diversify about the kinds such as salted cashew, candy things, snack things, cashew jams In the future, this market will expand from 5% - 10% from 2011 to 2015

1.3 The Research Scope and Limitations

1.3.1 Scope of research

The research aims to seek the factors affecting the process of cashew import and export and the business of cashew processing in the province Processing and export industry of Binh Phuoc province achieves very good development, including agricultural products such as rubber, starch processing, pepper, coffee, cakao and export of cashew processing Among these export sectors of the province, cashew processing and export business is a key sector, which helps increasing exports and promote economic and social development of the province It is also a main reason that the research only studies a major agricultural commodity that is cashew import-export business in Binh Phuoc province Other agricultural products are strong, but not major of the province Thus, the study will not mention This theme is very realistic and highly feasible because the proposed solutions basing on actual survey results and people engaging in manufacture, import and export business in Binh Phuoc province However, the limit of the study is that the scope is only in Binh Phuoc province and consulting national seminars and the world, so the risk from the importer can not be survey directly, only secondary information for analysis Because

of meaning and importance of the research, the topic is a basis for determining the collection of documents and content need to be collected for research Collected materials for the research are listed in the "references" at the end of chapter 5

1.3.2 Limitations

The study only focuses on factors affecting cashew processing and export business of enterprises and its business of processing and import - export in Binh Phuoc province, from which the solutions are proposed to prevent the risks involving in the processing and import and export business in the process of WTO

import-accession, during the period from 2011 to 2015 Secondly, questionnaire designed in the survey were not answered by foreign expertsbecause It was really difficult to send

it to and collect it from them Therefore, the researcher just collected data from secondary information for analysis

1.4 Definitions

1.4.1 Definition of risk

By studying many theories from different authors such as: Mr Allan Willett, an American scholar says that "Risk is the uncertainty relating to a particular unexpected incidence": Allan Willett (2009); Mr Nguyen Huu Than, in the work titled " risk approach and risk precautions in business" states that "risk is the uncertainty causing damage", according to opposite view, the risk is considered unfortunate things , damage, loss, danger …" Nguyen Huu Than (2009); In business, Ho Dieu says that " The risk is the loss of property or actual profits of interest declines more than expected profits "

Risk is damage, loss, or danger or factors relating to dangers, difficulties, or anything are not sure, which can happen to people: Professor Nguyen Lan & Ho Dieu (2009)

1.4.2 Other concepts

Risks are two-sides: both positive and negative Risks are able to bring losses, disadvantages, dangers but the risks also may give people opportunities If risks are studied, identified, measured and managed positively in the research, we not only find precaution measures, avoiding core risks, limiting damages caused by risks, but also can "turn up the situation" turning disadvantages into advantages, defeat into success, and turning challenges into opportunities to bring good results in the future Risks in import-export business are an uncertainty which can be measured It can cause damage, loss, limit or loss of lucrative opportunities, but also can lead to benefits, favorable opportunities in business of import: C Arthur William, Jr Michael, L Smith (2009)

1.5 Terminology

-WTO: World trade organization (the World Trade Organization) -GATT: General Ageement on tariffs and trade (General Agreement on Tariffs Trade)

-ISO: International Organization for Standardization

-ITO: Internaltional trade organization

-IMF: International Monetary Fund

-NHNT: Foreign trade bank

-HACCP: Hazard Analysis and critical control points

-GMP: Good manufacturing practice

Chapter 2 Literature Review

This chapter refers to the relevant documents directly, or indirectly to the aim of the research (research papers, speeches, statements, etc on the media such as books, specialized magazines, newspapers, dissertations, theses, government documents - organizations, Internet, etc ) Consider how these materials mention to the topic of the research In other words, the research examines the document relating to the factors affecting cashew processing operation and import and export business of enterprises in Binh Phuoc province in particular, and in other provinces of Vietnam The contents of the written strategy need to follow questionnaire sheet available

2.1 Orientation and Development Results of Vietnam’s Cashew Sector

Thanks to the advantages of the cashew compared with other plants in the same period, on may 7th 1999, the Prime Minister has made a decision 120/1999/QD-TTG

on the approval of the project to develop the cashew in 2010 with the main targets in

2005 such as the planting area reaches 340,000 hectares, 230,000 tons of raw cashew output, yield 45,000 tons of cashew processing, export $ 220 million; On may 8th

2005, Ministry of Agriculture and Rural Development ended 5 years making the 120 decision of the Prime Minister Results of the 2005 targets all exceeded the targets set out from the government Specifically, the area reached 433,000 ha (exceeding 27.4%), production of 350,000 tons (52.2% excess), there were 219 enterprises of processing, the total capacity of 674,200 tonnes of raw nuts per year, export turnover was 501.5 million (over 128%), Vietnam ranked second in world export of cashew; on may 5th 2007 Ministry of Agriculture and Rural Development issued Decision No 39/2007/QD BNN-approved plan of development until 2010 and orientation to 2020 with key indicators as below: The area is 450,000 ha, export turnover is 500,000 tons (imported 150,000 tons), the output of cashew nut processing is 140,000 tons, export turnover is $ 670 million; Notice No 1575/TB-BNN-VP, on March 13, 2009, announced the opinion of the Deputy Minister Bui Ba Bong at the conference of assessing the status and cashew development solutions in the south (ministry of processing, agriculture, forestry and fisheries and salt sector, 2010)

To do business with the countries around the world, the export processing

enterprises gradually invest in expansion of production, changes in equipment,

processing technologies to increase the value of the cashew products Manufacturing

output and exports increased every year, particularly since 2006 Vietnam debuted at

number one on the world export of cashew production Therefore, export output was

152,000 tons in 2007, with export turnover $ 650 million, in 2008 export products

were 167,000 tons, and export turnover were 920 million, in 2009 Vietnam continued

to lead the world in exporting 177,000 tons, export turnover was 850 million (low

export value was due to price reduction of cashew in the world) (Kien Cuong, 2010)

Through the results, it showed that the processing industry has always reached

the highest value growth, helping export turnover increase day by day, helping people

eliminate hunger and reduce poverty towards good perspectives, it is common result

of cashew in Vietnam

Table 2-1 Key Indicators of Cashew Industry of Vietnam and Binh Phuoc in 2007,

2008, 2009

2007 2008 2009 STT Content

5 Nut production for export (tons) 152.000 13.089 167.000 14.278 177.000 18.636

6 Export turnover (1000 USD) 650 59,995 920 75,493 850 90,82

department, a seminal materials, "Strategy of development of Vietnam cashew sector

by 2020 and solutions for socio-economic development")

In the beginning nine months of 2010, Vietnam's cashew industry exported 131,000 tons, export turnover reached 607 million, and increased 6% in volume, but turnover went down 3% over the same period in 2009 According to objective of Vinacas in 2011, the area of cashew trees that the country will reach 450,000 ha, yield

is 500,000 tons, with cashew imports, Vietnam will process about 200,000 tones of cashew, earning about $ 1 billion (Nguyen Thai Hoc , 2010)

2.2 Somme Development Policies Of Binh Phuoc’s Cashew Sector

To guide Binh Phuoc’s cashew industry develop, Binh Phuoc People's Committee has signed Decision No 31/2008/QD-UBND on april 7th, 2008 on approval of the planning of sector of Binh Phuoc, during the period from 2006 to

2020, with the main targets in 2010: growing cashew area is 165,000 ha, crude cashew output increases from 155,377 tons to 240,852 tons per year, yields 1.28 tonnes / ha to 1.53 t / ha; Until 2015 and 2020 the area reduced to 149,000 hectares, yield 257,312 tons / year, yield 1.88 tons / ha Simultaneously, concentrated material regions need to be built The cashew sector should study and create new seeds, apply

to advance science technology to increase productivity, produce cleaner products, following GAP standards, make improvement of processing technology to supply high value products to ensure competitiveness in the integration, under the direction

of mechanization and modernization to reduce manual labor, improve training for staff management and improve the skills of workers, construct procurement system, limit competition and reduce risks

Source: People's Committee of Binh Phuoc province, 2008;

Decision No 46/QD-UBND on October 22th, 2009 of Binh Phuoc province, some regulations and supportive policies are issued to encourage the development of cashew business of Binh Phuoc province, such as support for new seeds, performance techniques of application of scientific and technical advances in planting and caring, harvesting and storage, changes in the old garden with new seeds, with high yield Decision No 47/2009/QD-UBND on 22nd October, 2009 on conditions to ensure food safety, working safety and environment for cashew processing units in Binh Phuoc province; Decision 50/2009/UBND on 27th November, 2009 on regulations of some policies to encourage transfer and application of advanced models of science, production chain innovation, machinery, equipment in Binh Phuoc province, of construction of quality management processes, following standards: ISO, HACCP,

GAP; Decision No 2221/QD-UBND on 22nd September, 2010 on approval of planning of cashew process industries in Binh Phuoc province during the period from

2010 to 2020, and the vision of 2025, with the target until 2010, exports is 22,898 tons, processing capacity of 130,100 tons in the year, export turnover of $ 106 million Until 2015, 80% of manufacturing enterprises that apply the manufacturing processes according to international standards such as ISO, HACCP, GAP, move all the processing plants located in the residential area into zones and industrial clusters intermediately, product management and brand reputation advertisement of the products are conducted through organization events, market researches, trade fair participations, advertisement Research and transfer equipment, processing technology in the direction of modernization and advance, increase competitiveness in processing and export diversification of the types of vocational training, establishment

of skilled team work with good management skills, vocational training have to be linked to the jobs for workers;

From the supports of the state budget, cashew sector has conditions to get implementation of programs of trade promotion, market expansion, implement different programs, scientific researches on cashew processing and finishing international quality management standards, modes of technological demonstrations, tax policies, consideration of decreasing the value added tax and other incentives for the enterprises who are pioneers of using advanced technology and equipment, brand building, trademarks building for cashew products of Binh Phuoc province

Source: People's Committee of Binh Phuoc, 2009, 2010; From the commercial electronic newspapers, the price of cashew exports on world markets has recently increased quickly, compared with September, going up U.S $ 300-400, and to $ 4,800 / ton However, cashew export price increases are a main cause of the risky to the exporters of this item Once the amount of raw materials inventories of the enterprises are not enough, the domestic market becomes competitive becase they rush to buy raw materials, which make the prices climb (Nguyen Thai Hoc, 2010)

Many times, Vietnamese businesses has imported "death" raw cashew because the import contract is signed, but they cannot import goods from foreign countries On domestic market, the situation of the enterprise purchasing is quite hot, the cashew processing businesses face unfair competition among members within the same sector

on how to collect and price For profit, many importers seek to purchase of the goods which did not ensure food hygiene From that, "pot of soup, salad worm" has strongly

influenced the price and the reputation of all other units in this sector (Nguyen Duc Thanh, 03/26/2010) Exports have more and more difficulties facing with trade barriers The scale of safety and hygiene conditions of food import market is increasingly fierce and sudden changes Production conditions of the cashew processing industry in Vietnam are still small and medium size Nationwide, the number of enterprises certified to ISO, HACCP is only about 20 businesses

In the top 10 countries in the export of cashew nuts, there were six countries temporarily importing for re-export As a result of it, speculators trading cashew nuts traffick more and more market share, so it is easy to lead to virtual information about supply and demand in the market Therefore, export business activities always contain lots of potential risk (Nguyen Thai Hoc, 26th march 2010) Processing and export sector of Binh Phuoc province ranks No 1 in the country about acreage, production, productivity and exports However, to make it become a key economic sector, the study would just address last 3 years (the statistics in Table 2.2)

Table 2-2 The Growth Targets Over Three Years (2007, 2008, 2009)

Production of crude cashew Ton 156.377 154.077 134.545

Production of Crude cashew

(Source: Vinacas, Binh Phuoc Statistical Office)

However, in the business of import and export business, enterprises still face

To solve this problem, it is necessary to study measures to prevent risks in foreign trade activities, in the WTO integration from 2011 to 2015 The solutions given in the study will minimize the risks or prevent against the risks of import-export business, making foundation for three components: cashew farmers, producers processing and import-export business, which enable this business to be sustainable and stable, increasing export turnover for the province.

These policies encourage farmers to grow cashew trees in the direction of intensive cultivation to increase production yield per hectare, application of scientific and technical progress in breeding, garden care techniques, harvesting and protection management so that the products are clean enough which is consistent with international standards We should encourage investment in processing and production expansion, change machinery line, modern equipment to produce products with high value, competitive with the same products on the market, applying the production standard ISO2001-14000, HACCP, and GMP, which is suitable for the international requirements of safety and hygiene for export products, and reducing pressure of manual labor in processing

in accordance with planning and restructuring of production in Binh Phuoc province and Vietnam We should build concentrated production areas, incorporate processing industry and consuming markets to produce high quality products with low cost, which is possible to compete in the market, and maintain the prestige brands of Binh Phuoc province cashew in the country and the world, and develop processing industry

in the direction of modern technology, advanced equipment with appropriate steps, improving the quality and diversification of the products, ensuring competitiveness in the international economic integration, and import and export of cashew products processed from it Basing on cashew yields in Binh Phuoc province, we should balance cashew import in seasons in the country from 4,000 - 5,000 tons / year: Cambodia, Indonesia, African countries with reasonable prices to meet processing

and export demand, exploit 10 traditional markets and potential 10 markets well, among 94 import market of Vietnam's cashew

2.3 Data Prves That Cashew Business Is a Key Economic Sector

As an overview of the industry of Binh Phuoc province and the figures prove that Binh Phuoc is "the main place of the trees" are expressed through 5 top points (1) the largest number of cashew growing farmers compared to other provinces in the country (2) the largest number of manufacturing enterprises that export it (3) the largest area (4) has the largest output (5) with the best quality Until 2009 the above data is shown by the following statistics:

Table 2-3 Some Indicators Which Show a Comparison between Vietnam’s Cashew

Sector and Binh Phuoc’ s Cashew Sector

Number Content Cashew sectorVietnam’s Cashew sector Binh Phuoc’ s Rate (%)

4 Processing output (ton) 600.000 42.504 7,1

(Source: Binh Phuoc statistic office, Viet Nam Cashew Association) Binh Phuoc

Industrial production value of cashew export processing business of Binh Phuoc province reached 1725.58 / 3394 billion, accounting for 50.82% of the country; the majority of machinery, processing equipment are manufactured by engineering plants

in the country, 60% stages of processing have been used by machines; more than 70%

of it is processed by means of absorbance, friendly with environment In 10 phases of processing is 10 Vietnam’s mechanical fabrication can not conduct the phase of color shooting, which requires very high technology The rest 9 phases are done successfully and initiatively by domestic engineering manufacturers for cashew processing technology, investment costs for the trees are low and they can be planted

on slope areas with poor nutrition Cashew processing industry, import and export has contributed greatly to the economic and social development of the province in recent years It is supported by related bodies from central level to regional level through organization of the festival called "The Binh Phuoc province and Vietnam golden cashew Festival " The specialized agencies of the province considers cashew processing industry and export as a key economic sector of the province

In recent years, the processing and export industry has had many difficulties and obstacles because the prices fluctuate constantly, the quality and output are instable, food safety and hygiene does not meet the requirements of importing countries, the level of management and applying science and technology in value chain of this sector are limited and unbalanced In the context of international trade, this sector must always compete strongly, and foreign language skills and experience

of staff of the business are still limited in contract negotiation, drafting and signing These things bring the risks to investors and processing of import and export enterprises Since 2006, Vietnam has won the No 1 position in the world for processing and export of cashew nuts, in which the leading province in the country of production and export of cashew processing is Binh Phuoc In 2008, especially, the export value of the country reached 920 million, accounted for 37.56% and 1.71 times higher than the value of the exports of India Only Binh Phuoc province in 2008 and

2009 exported

Table 2-4 Comparison of Cashew Export Turnover in 3 Years

No Year Export production Export turnover Rate (%), Compared with the country

2 2008 14.278 tons 75,493/920 (million USD) 8,20

3 2009 18.636 tons 90,82/ 850 (million USD) 10,68

(Source: Binh Phuoc statistic office, Viet Nam Cashew Association)

Once the demand for cashew consumption in the world increases, speculators and intermediaries will increase their market share, cashew export price has "virtual price", which does not reflect the needs of the market, the enterprises will meet many

risks in business as the contract is discussed deeply and the enterprises can not correctly assess the market demand, the impact of financial crisis on the global economy, which creates risks arising out from import-export business activities of enterprises in Binh Phuoc province.

We should establish the inadequacies and difficulties (urgency) in the management-research dynamics - Determination of research objectives – theory background (an overview of research materials and determine scientific basis of the subject)- research outline-survey questionnaires, gathering information and data in many ways-screening, information processing, data (Use SPSS table) - information analysis for each information, questions, Figures for each content-SPSS Data Summary-conclusion of the investigation of new problems, the exploration of new issues

Chapter 3 Research Methodology

This chapter shows research process, research methods, research structures and survey methodology in details Through research process, the paper mentions the research procedures and indicates the research questionnaires, the way to collect and investigate the objects clearly The questions designed in the research are to investigate the inside and outside factors affecting cashew processing and its export and import of Binh Phuoc province in the integration of joining WTO And they focus

on main matters relating to determining substantial risks in cashew import and export businesses, in investment activities to produce quality products which have high economic value and are competitive with other similar products on the market and ensure food safety on the requests from our counterparts Simultaneously, the study seeks the solutions to prevent and eliminate the risks caused in the above industry Making a survey is also to assess management ability of farmers, manufacturers, exporters and importers, experts and managers of province departments…besides questionnaires, the researchers also have many discussions and interviews with these people on the matters of risk in of cashew importing and exporting business of Binh Phuoc province Then, research results in this chapter will be used for analysis and evaluation in the next chapters

3.1 Research Process

To get suitable research procedures with research questions, first of all the study have to take some key issues into consideration, which involved producing process and export and import on Binh Phuoc market, and examine factors affecting the risks in import and export transactions of business enterprises in Binh Phuoc province After investigating and finding the key issues relating to the factors affecting the risks, it continues to search and summary of relevant documents such as learning cashew manufacturing and export-import sector in the world, in Vietnam, and in Binh Phuoc province, and the factors affecting the risk of import and export cashew industries To make research problems solved logically and enable concluding documents reliable and highly accuracy From here, the study has to design research questions relating to contents of the research, to investigate relevant bodies, such as

cashew import and export manufacturers of Binh Phuoc province, specialists of different departments and cashew industry associations and other industry experts nationwide To collect the opinions of the subjects above, the study gives us feedbacks for the research questions This is foundation and database which is highly reliable for the adjustment of the contents, the factors affecting the risks of cashew manufacturing and export-import industry in BP province

Figure 3-1 Research Process

Designing questionnaires and interviews with the research

Learning cashew manufacturing and export-import sector in

3.2 Research Methodology

To determine the factors affecting the processing operation and import and export business of the enterprises, the study applies two research methods (1) quantitative research methods, applied for the objects who are cashew processing and export-import enterprises of Binh Phuoc province (2) qualitative research methods applied to the objects such as department experts, Vietnam Cashew Association, Binh Phuoc Cashew Association and scientists

3.2.1 Survey method

This section includes five matters (1) How to proceed, (2) Contents of the survey questionnaires, (3) survey objects, (4) how to deliver survey questionnaires ( 5)and accuracy and reliability of data

3.2.1.1 How to conduct

From the data identified in Chapter II of the research, the study has a basis for designing nine questions for the groups who are managers of cashew processing factory and import - export enterprises, and seven questions for the groups who are the experts of the departments concerned, scientists, Vietnam Cashew Association, Binh Phuoc Cashew Association in survey questionnaire sheets The survey was conducted to seek answers to the research questions raised above basing on practical experience of experts

Survey is done by answering questions in the question tables in which it contains the questions and instructions for how to respond to experts at provincial level and cashew industry experts The Scientists spent 45 days investigating and giving the answers by filling out the questionnaire sheets Cashew processors and Importers and exporters also spent 45 days investigating and answering by completing the survey questionnaire, immediately after they read the problems relating to the risks in cashew processing and importing and exporting of Binh Phuoc Province In addition to answering the research questions in the questionnaire survey, there are a number of unofficial exchanges between experts and researchers held to correct or support some ideas or comments around the contents of the research

3.2.1.2 Content of questionnaire

From the database in Chapter 2 on research ground and cashew processing and import and export situation on Binh Phuoc market, the content of the questionnaire focuses on investigating advantages, disadvantages and risks of the enterprises in processing or exporting and importing it The questions are designed to suit different

objects and the research topic Specific research, measuring the possible risks may happen to enterprises in business during for the period from 2011 to 2015 to be competitive and sucessful To suggest some measures to reduce and overcome the risks in the operation of cashew import and export business in WTO integration period, from 2011 to 2015 The survey results reflect accurately and scientifically Questionnaire focuses on two groups below:

3.2.1.3 The objects who are investigated through questionnaire are

managers of cashew processing and export-import enterprises of Binh Phuoc province

The contents of questionnaire applied for the objects who are managers of cashew processing and export-import enterprises of Binh Phuoc province are around the real issues in foreign trade activities or import and export transactions, such as

"where are inputs for processing and exporting and importing from?; the measures taken to stabilize raw material inputs, and other policies to encourage cashew processing and import-export industries, the risks in cashew procurement process in domestic and import from abroad; investment in machinery and change old equipment with modern equipment, producing quality products with high values, which are competitive with other similar products on the market and produced by the modern systems ISO, HACCP, GMP which are consistent with the standards raised from the importing countries, the advantages, disadvantages and risks in the process of WTO accession, in import and export business, the problem of attracting, selecting human resources; the issues of recruitment of officials working in import-export business; the conformity between processing capacity and demand for raw materials, quality issues, productivity and product brand, export market, the factors making the market fluctuated and competitors in the import-export business, the factors of competitiveness of the sector of Binh Phuoc cashew sector compared with nationwide cashew business or even worldwide, other risk factors of import and export of raw cashew on the world market "

3.2.1.4 Objects investigated through questions are specialists from the

province departments, cashew associations and the scientists

The objects of the questions in the survey are experts with a lot of experience

on industrial managing operations and processing industries Binh Phuoc province, including leaders of departments concerned, industry and trade district offices,

cashew processing association of Binh Phuoc and Scientists in the fields of farming, processing, institutes of Southern Science, Technology and Agriculture These objects are determined a part followed by research qualitative methods, a part followed by a quantitative method which is processed by SPSS techniques, using matrix method (Maxtric)

The interview questions are designed to reflect the actual situation of Binh Phuoc cashew sector, such as "assess the advantages and disadvantages in business activities of cashew import and export in the period of WTO integration; investment capital for the activities; Applying science and technology to increase productivity; Investment in changing machinery and equipment; the effects of the policies for the development of cashew industry; the issues of incorporating processing plants into processing and import – export corporations; the risk factors in this in WTO integration, the selection of recruitment of human resoarces which is the most important of current problems of risks in cashew import and export business of Binh Phuoc province nowsaday;

3.3 Deliver Survey Questionnaire

(1) The managers of business enterprises

The content of the questionnaire designed for this target group includes nine questions in a questionnaire sheet To give the questions to the right survey objects the survey, questionnaire sheets are transferred by mail to the subjects to ensure that managers of enterprises and processing and export import enterprises in Binh Phuoc province, there are 123 votes, and the study period to answer the questions is 45 days After answering, they are collected on the date (15/10/2010)

(2) Specialists from departments related, industrial associations and the scientists

The content of the questionnaire designed for this target group consists of 7 questions in a questionnaire sheet and printed into 17 tables At the same time, these questionnaire sheets are delivered directly to 17 specialists from the related departments, industrial associations and the scientists, the study period to give the answer for the questions is 45 days and is collected on the date (10/15/2010) After collecting 140 answer sheets from the two groups above, the data become the basis for the analysis and evaluation in the study in Chapter 4

3.4 Validity and Reliability

For data reliability and accuracy, before delivering 140 questionnaire sheets to business managers and specialists of departments, industrial associations of Scientists

of Vietnam and Binh Phuoc We took 30 random samples of 30 subjects to evaluate the level of interest; according to the level of risks which the questions in the questionnaire designed

Then collecting and using Cronbach's alpha software to check the accuracy and reliability of data Result of calculations showed all the elements of each question in the questionnaire are greater than 0.7% In particular: In the column Cronbach's alpha

if item deleted were > 0.9 It means the content of the survey questions obtain standards Next, sending the questionnaire to 5 experts to examine, the experts who are consulted are Associate Professor, research PhD teaching and working in universities and Research Institute Their evaluation is in terms of structure, language

in each question of the questionnaire and content of questionnaire, considered whether the questionnare gives proper attention to the contents of the research topic or not, can

it get stability in response? Here are the results of evaluation from 5 experts: Summary conclusions of the 5 experts: "The questions in the survey table are satisfactory for the content, structure, language, which meets the requirements of the study subjects from 80% or even more " After checking the accuracy and reliability

of the data, then the evaluation of 5 experts, structural evaluation, language and content of the questionnaire, we conducted extensive surveys by sending 123 survey sheets to managers and 17 to experts of the departments, and associations of scientists

Table 3-4 Result of Cronbach’s Alpha

Item-Total Statistics

77.8348 140.823 510 906 77.8174 147.923 234 911

77.9826 148.421 296 909 78.4957 149.726 238 910 77.7043 145.298 422 907 78.4609 149.040 237 910 78.2957 140.894 519 906 78.5130 141.761 584 904

78.4261 138.352 735 902 77.8870 145.329 391 908 77.3478 143.018 418 908 77.6087 141.082 559 905 77.9130 146.027 479 906 78.6174 143.396 586 905 78.3565 137.652 689 902 78.1391 143.454 429 907 78.5304 141.462 676 903 78.6435 143.986 716 904 78.3391 142.700 562 905 77.7913 146.816 502 906 77.7913 146.289 562 906 78.3304 147.258 381 908 78.3913 140.293 585 904 78.1043 144.217 465 906 78.4000 138.768 741 902 78.4696 138.006 769 901 78.5826 146.631 497 906 77.7826 145.803 372 908 77.4000 149.821 136 913 78.5043 148.814 259 909

Purchase of Low Quality

Competitive Procurement From

Lack Of Knowledge Import

Weak Knowledge Of Foreign

Weak Of Staff's negotiation

Delivery and Inspection Of

Processing Of The Low quality

HACCP Does not Meet

Slow Technological Innovation

Less Skilled labor

Difficult Accsss The Capital

Low Rate of Automation

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Reliability Statistics

Cronbach's Alpha N of Items

The following is quoted comments from 5 experts

(1) Associate Professor, Dr - Vo Phuoc Tan - Dean of post-graduate department - HCM City University of Industry "The design of the survey questionnaire for the farmers about the impact of the weather, harvest, storage and application of scientific advances in planting, caring for high yield, less damage These are the external factors affecting the business, so the expert departments, industry associations and scientists all are knowledgeable and understand the factors influencing this mattre Therefore, we only need to design survey questions to experts, associations and scientists "

(2) Dr – Dam Sao Mai - Director of Institute of Biotechnology - HCM City University of Industry "The theme of the topic is: The solution to prevent risks in the business of import and export in Binh Phuoc province in the WTO entry prcess from

2011 to 2015 Thus, the questions designed not to close or too wide outside the limits

of the topic will not need to explore Export processing enterprises outside the province,for instance, are not to be examined, the study only have to collect data for comparison and it is considered as a proof for explanation "

(3) Director of Department of Trade and Industry - Ho Van Huu, former chairman

of Binh Phuoc processing cashew association "The contents of the survey questions should closely follow the activities of import-export business in recent years to have collected experience and offer solutions to prevent Thus, the questions designed for professional just seven sentences is sufficient in order to examine in-depth interview "

(4) Chairman of Vietnam Cashew Association (VINACAS) - Nguyen Thai Hoc

"The research needs to make a survey of manufacturing and export enterprises to understand the risks they faced Thus, the questions of the growing farmers are also notnecessary."

(5) Engineer Pham Van Nguyen "Do not need to design the survey questions for processing and export overseas businesses because of geographic distance and the feasibility of collecting data is low We should collect data through other means such

as Internet or newspaper for secondary information.”

The objects investigated by questionnaire include 2 groups of objects:

(1) Cashew producers and exporters and importers on Binh Phuoc market, they are importers who buy raw cashew from the farmers from the countries (Ivory Coast,

about 97% consumed domestically Questions in the survey designed for this target group with 9 questions sent to 123 entrepreneurs in cashew processing business, after spending 45 days investigating and giving responds as directed in the questionnaire and collected with the number of 123 Among 123 answer sheets collected, there were

08 answered invalid (not exactly as instructed, did not answer all the questions in the questionnaire The rest were satisfactory > 90%)

(2) The experts from the related department, the Associations and scientists who are knowledgeable and experienced cashew processing managing industry have participated and contributed a great deal of scientific research for development of cashew in Vietnam in general and Binh Phuoc in particular There are 7 questions designed for this target group They were delivered directly to 17 experts from the departments, the Associations and thescientists in the cashew sector After 45 days of study and answering the questions as directed in the survey and they are collected all

Of the 17 votes, 1 vote was invalid, the remaining 16/17 are correctly answer followed instructions, the survey results was 94.11 % of questionnaires collected

At the time of the end of March, 2010, Ministry of Agriculture & Rural Development collaborated with the Ministry of Industry and trade to organize a scientific conference on the development of cashew trees in Binh Phuoc province With the participation of relevant departments, the Vietnam Association, Association

of Binh Phuoc, Scientists in the areas of cultivation and processing, preservation, Institute of Applied Mechanics, the regional provinces growing cashew around the country Therefore, these experts had opportunities to experience; know the objective reality that matters in the activities of cashew value chain, and its import and export business activities Thus, their responses are guaranteed reliability and high value for this research

of external factors impact on the business operations of the enterprises, risk level in the process of purchasing the raw cashew in domestic, risk level in the process of importing raw cashew; risk level in the process of export, and the risk level in the processing of export

(2) Designing questions for the experts from departments, scientists, associations of Vietnam and Binh Phuoc These are professionals with many years of research and experience on farming and agro-processing and cashew processing and export business in the country The Content of the questions is designed to go deeply and give macro-level assessment and orientation for the survival and development of cashew processing and export industries Assessment of favorable conditions and difficulties in cashew export-import business, WTO accession period, during the period from 2010 to 2015; the elements of the competitive advantage of manufacturing and export enterprises in the current integration and competition in domestic enterprises.

3.6 Collecting the Data

Total number of questions are designed for two groups is 16 survey questions (managers of manufacturing and export enterprises with a survey of 09 questions and sent to 123 managers manufacturing and export enterprises; specialists of departments, Vietnam Cashew Association, Binh Phuoc Cashew Association and scientists a survey

of seven questions and delivered directly to 17 departments, Vietnam Cashew Association, Binh Phuoc Cashew Association and scientists After delivering the questionnaires to enterprises in cashew import and export sector on Binh Phuoc market, these two groups spent 45 days, then the answers were collected, categorized according to the content requirements designed in questionnaire, followed the instructions in the questionnaire

3.7 Analytical Methods

After collecting 140 questionnaires of the two groups mentioned above, the researchers classified the questionnaire which passed or failed on the request of the questionnaire instructions Results: 08 questionnaire respondents did not meet demand only and use tools to analyze and evaluate the program SPSS, Matrix methods and data processing run, the results are showed This is the basis to analyze, evaluate and

This chapter shows research process, research methods, research structures and survey methodology in details Through the research, the paper mentions the research procedures and indicates the research questionnaires, the way to collect and investigate the objects clearly The questions designed in the research are to investigate the inside and outside factors affecting cashew processing and its export and import of Binh Phuoc province in the integration of joining WTO And they focus

on main matters relating to determining substantial risks in cashew import and export businesses, in investment activities to produce quality products which have high economic value and are competitive with other similar products on the market and ensure food safety on the requests from our counterparts Simultaneously, the study seeks the solutions to prevent and eliminate the risks caused in the above industry Making a survey is also to assess management ability of farmers, manufacturers, exporters and importers, experts and managers of province departments…besides questionnaires, the researchers also have many discussions and interviews with these people on the matters of risk in of cashew importing and exporting business of Binh Phuoc province

Therefore, research results in this chapter will be used for analysis and evaluation in the next chapters