Promoting trade promotion at vietnam association of seafood exporters and producers (vasep)

ACADEMY OF POLICY AND DEVELOPMENTINTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION COURSE Topic: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Produce

ACADEMY OF POLICY AND DEVELOPMENT

INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE

GRADUATION COURSE

Topic: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Producers

(Vasep)"

Instuctors: Dao Hoang Tuan, PhD

Student name: Nguyen Viet NamStudent ID: 5073106060

Ha Noi, June 2020

ACADEMY OF POLICY AND DEVELOPMENT

INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE

GRADUATION COURSE

Topic: "Promoting trade promotion at Vietnam Association of Seafood Exporters and Producers

(Vasep)"

Instuctors: Dao Hoang Tuan, PhD

Student name: Nguyen Viet NamStudent ID: 5073106060

Ha Noi, June 2020

1 The urgency of the topic

In the current trend of globalization and international economic integration

of Vietnam, businesses have difficulties in accessing information, customers, distribution market, goods, business opportunities Other, in the global race, there are many risks because they do not understand the law, the commercial environment So in addition to fully equipped with the necessary information and skills, businesses need support Directly from the government or the

organization trade promotion to overcome difficulties and achieve long-term goals Businesses want to find markets, promote product introduction, find partners, customers and promote product sales, trade promotion is the only wayfor businesses to achieve those goals

Trade promotion activities (trade promotion) always hold an important position for domestic consumption and export, contributing to economic

economic transformation towards industrialization and modernization,

competitiveness and efficiency, business results of enterprises solve the

immediate difficulties Trade promotion helps businesses respond quickly tomarket changes and capture market trends in a timely manner to make their business more efficient Trade promotion is a bridge to bring businesses closer to customers, to the market

It can be seen that Vietnam's economy is increasingly developing with open market policies, limiting export and import tariff barriers Therefore, competition among businesses in Vietnam is becoming more and more fierce Domestic enterprises are mainly small and medium-sized enterprises, so they are limited by limited capital, human resources, professional skills and weak management Therefore, Vietnamese enterprises must have appropriate long-term business strategies to survive and develop in the market Marketing in general and trade promotion in particular are effective tools of competition forbusinesses today However, in reality, Vietnamese enterprises or governmentalorganizations have not paid enough attention and invested properly to build

an effective trade promotion policy Vietnam Association of Seafood

Exporters and Producers (VASEP) is an association established by the state and businesses to support businesses to promote trade, organize trade

promotion activities, etc Through the process of observation and research at the Association, I realize that there are still limitations in the trade promotion activities organized by the Association that can be seen through the issue of costs, capital, and effectiveness fruit In addition, other promotion tools, though they are available, have not been paid attention and have not been effective Therefore, the Vietnam Association of Seafood Exporters and

Producers (VASEP) needs solutions and policies to promote trade promotion activities more effectively, in order to improve the competitiveness of

businesses Vietnamese enterprises on the market

From practical needs, I chose the research topic: "Promoting trade

promotion at Vietnam Association of Seafood Exporters and Producers (Vasep)" as my project.

2 Research purposes



General purpose

Developing trade promotion policies of the Vietnam Association of

Seafood Exporters and Producers (VASEP)

 Purpose of detailed study

With the thesis topic: "Promoting trade promotion at Vietnam

Association of Seafood Exporters and Producers (Vasep)" in the period of

2017 - 2019, the specific objectives include:

Firstly, Systematize the theoretical basis of trade promotion and develop trade promotion activities in Vietnam Association of Seafood Exporters and Producers (VASEP).

Secondly, Clarify the current situation of trade promotion activities at the Vietnam Association of Seafood Exporters and Producers (VASEP) From that point out the remaining limits in the trade promotion policies of the Association.

Thirdly, Proposing a number of trade promotion solutions at Vietnam

Association of Seafood Exporters and Producers (VASEP)

3 Research scope



Research subjects

The study of trade promotion activities and development of trade

promotion activities at Vietnam Association of Seafood Exporters and

Producers (VASEP)

 Study time

Collect data and results related to trade promotion activities held in the latest 3 years 2017-2019; Proposed solution until 2021

Method of analyzing the system of synthesizing, comparing and assessingthe status of trade promotion activities at Vietnam Association of Seafood Exporters and Producers (VASEP).

4.2 Specific research methods

 Secondary data collection methodBecause external data sources are abundant and diverse, the information

is sometimes inaccurate So to get high quality information, I follow this process:

Identify

infomation

Needed for

Reaserch

Hình 1.1 Data collection process

The secondary data included:

- The data of the Association's trade promotion activities for 3 years from

2017 to 2019

- Data on investment sources as well as money sources provided

for trade promotion activities of the Association

- Performance of competitors

- Performance of some competitors was collected through searching andaggregating information on media such as newspapers, magazines, internet

 Data analysis method

Using a number of economic analysis methods learned such as: dataanalysis method, statistical method, comparison of collected data so as tohave appropriate results to analyze and assess the situation of the company

5 Essay structure

In addition to the thank you, the table of contents and the appendix, the

structure of the graduation thesis with the theme: "Promoting trade

promotion at Vietnam Association of Seafood Exporters and Producers (Vasep)" consists of 3 chapters:

Chapter I: Theoretical foundations of trade promotion activities

Chapter II: Actual situation of trade promotion activities at Vietnam

Association of Seafood Exporters and Producers (Vasep)

Chapter III: Proposing some solutions to promote trade promotion atVietnam Association of Seafood Exporters and Producers (Vasep)

CHAPTER I THEORETICAL BACKGROUND OF TRADE PROMOTION

ACTIVITIES 1.1 The concept and role of trade promotion

1.1.1 Concept of trade promotion

According to the Ho Chi Minh City Institute of Economic and Trade:

“Trade promotion is the essential support activities that impact (directly orindirectly) on the process of producing, distributing, circulating goods or providing services It aims to promote and seek opportunities to buy and sell goods and provide services to increase the efficiency of trade activities and tomeet the increasing trade needs of the society ''

According to Eastern European economists' view: Trade promotion is atool, a trade policy aimed at motivating and influencing the orientation

between the seller and the buyer, a form of trade activity Communication to reach the target of attracting attention and pointing out the benefits of

potential customers about goods and services

According to the Commercial Business Administration curriculum

(Faculty of Commerce - National Economics University): "Trade

promotion is an activity to promote and seek opportunities to buy and sell goods and provide services including promotion, commercial advertising, display and introduction of goods, services and trade fairs "

The concept of trade promotion is to a certain extent understood as trade development, but trade promotion is often used when the business environment is stable and healthy, when countries have gone through the period of replacement production Exports, began to shift to export-orientedproduction The concept of pharmaceutical trade development is used when countries have gone through the early stage of "export-oriented production",

starting the period of "industrialization." and boost export” This concept isparticularly suitable in the context of international integration, richnessand diversity of foreign economic.

1.1.2 The role of trade promotion activities

Trade promotion is the bridge between businesses and consumers, customers, or between businesses Trade promotion is the way businesses use

to bring the company's image, product capacity, and reputation to create consumer interest and attract them This leads to the need to buy, own the product, used the item as well as the type of service

Demand for products of consumers is always changing over time, never fixed, so trade promotion forms contribute to changes in consumption structure Help find, awaken the hidden needs of customers, stimulated

consumers willing to pay for new products launched

Trade promotion also supports sales activities, making the sale of businesses become easier and more dynamic Becoming a channel to bringbusinesses' goods into a reasonable and beneficial distribution chain with businesses, thereby reducing costs and achieving high sales

Trade promotion activities in the market are extremely diverse with typical activities such as advertising, promotions, fairs, trade shows, displays,product launches, seminars and associations Meeting customers, visiting surveying, analyzing and searching markets, providing information,

consulting for businesses Therefore, it is extremely important for

enterprises to realize the importance of trade promotion to enhance its

position in a market economy

1.2 Content of the form of trade promotion

1.2.1.1 Form of trade promotion

a Commercial advertising concept

According to Wikipedia: Commercial advertising is a trade promotion

activity of traders to introduce to customers about their goods and

service trading activities.

According to Prof.Philip Kotler: Advertising is a form of non-directcommunication, conducted through paid media and clearly identifying thesource of funding

The promotional advertising products include visual information, voice,action, light containing commercial advertising content

b Means of commercial advertising

Businesses will base on the characteristics of goods, products,

consumer needs, advertising projects, business goals Since then choose the commercial advertising method with the highest efficiency In the current era,there are many advertising methods such as through the mass media, internet,radio, television, newspapers, hoarding Thereby has classified the means of advertising into forms, including:

 The mass media;

 The news media;

 Types of publications;

 Boards, signs, banners, panels, posters, stationary objects,

vehicles or other moving objects;

 Other commercial advertising

1.2.1.2 Promotion

a Promotional concept

As defined in Article 88 of Vietnam's Commercial Law 2005: “Promotion

or promotion is a trade promotion activity of a trader in order to promote thepurchase and sale of goods and provision of services by giving customersthe benefits useful."

According to the Commercial Marketing Curriculum (Faculty of Commerce

- National Economics University): Sales promotion is a commercial behavior of traders aiming to promote sales and service provision within the business scope

of traders by win certain benefits for customers.

Some form of promotion:

 Offering samples of goods, providing sample services for

customers to try without paying;

 Offering goods and services without collecting money;

 Direct discount;

 Old goods are exchanged for new ones;

 Sweepstakes;

 Organize frequent flyer program (report card)

 Organizing customers to participate in cultural, arts, entertainmentand other events for promotional purposes

1.2.1.3 Trade fair

a Concept

According to the Commercial Business Administration curriculum(Faculty of Commerce - National Economics University): “Trade fair is a trade promotion activity conducted in a centralized time and place to allow traders to introduce goods and services with the aim of promoting and seekingopportunities to enter into contracts on goods purchase and sale, service contracts and exhibition effect services”

b The role of the fair trade

The fair has become a place for businesses to show their brands tocustomers, business partners through awards, product qualifications

and certifications to strengthen their image of the business

The fair is also a place to connect businesses with their customers, sothat they can collect more necessary information about customers, desired goals about products, information about competitors Not only that, it also opens up many opportunities to sign valuable contracts with future partners

1.2.1.4 Display of goods and services

a Concept

According to Wikipedia: Display and introduction of goods and

services are trade promotion activities of traders using goods and services and documents about goods and services to introduce to customers about goods and services there

b Form

Display of goods and services has become a way to help businesses

promote products and services to consumers and customers most accurately Through the literature on the goods and services, customers will have an

overview of the product they are buying Customers will be able to know the

origin, production methods, create products and services, and then chooseproducts that are suitable for consumers' shopping goals.

Forms of display and introduction of goods and services include:

 Opening galleries, introducing goods and services

 Display and introduce goods and services at trade centers

or in entertainment, sports, cultural and artistic activities

 Organizing conferences and seminars with exhibits and

introduction of goods and services

 Display and introduce goods and services on the Internet and

other forms as prescribed by law

1.2.2 Methods of trade promotion

Modes of trade promotion include:

 Trade promotion regularly and continuously

Trade promotion activities that take place often help businesses

maintain the way to promote products through major channels such as

advertising and promotions This method is the most effective way for

businesses to make customers and consumers remember the

company's products and services

 Periodic trade promotion

Trade promotion activities taking place only a few times a year

according to the business plan of each enterprise or company Often expressed

in the form of fairs and exhibitions

 Unexpected trade promotion

When a business, the company needs to find new sales locations, they will organize extraordinary trade promotions to be able to quickly provide information about products and services to customers and business partners .

At the same time, it is also a way for enterprises to timely grasp information about the new market they intend to trade in order to make adjustments in thebusiness and production methods

 Trade promotion according to the campaign

When an enterprise produces a new product or as a long-term enterpriseand on the anniversary, the campaign promotion method becomes a great opportunity for them to promote more products, as well as the image of the company

1.2.3 The criteria for evaluating the effectiveness of trade promotion

effectiveness

 Number of enterprises involved in trade promotion activities

Trade promotion activities are organized by businesses for the purpose

of promoting products and services, and at the same time promoting and

searching businesses with opportunities to buy, sell and find partners A

successful program and trade promotion must first look at the number of

business members participating in the program It can be seen that the number ofbusinesses participating in the activity represents the scale of that trade

promotion activity The number of businesses also shows the ability to trade

and promote products, the ability to exchange information with other

businesses

 The variety of items on display products

In trade promotion activities, a variety of products is a factor to assess the quality of such trade promotion activities Diverse items set the premise topromote the products to customers, the diversity of goods helps the discerningcustomers can choose according to the desires of those products From there,

it can be seen that businesses with a variety of diverse goods are also a factor for success in their company's trade promotion

Diversification of goods of businesses is also a way to create goods suitable to the culture of the region, the province and the country Different regions or countries may see different product cultures due to their indigenousculture So diversifying products also opens up many opportunities for

businesses to access cultural products of other places

 The scale of trade promotion activities

The size of a trade promotion activity is assessed as large or small as shown by the funds spent to organize the trade promotion activity Currently atrade promotion program is organized using money according to 2 sources The first source is enterprises and companies that ask for capital from the state budget to organize, the second source is funding contributions from participating businesses, but most of trade promotion programs are now applying for capital from the state budget

1.3 International experience on trade promotion

1.3.1 Experience on organizing trade promotion activities of a number of

countries in the region

1.3.1.1 Organizations related to Trade Promotion of Japan

Since the 1950s, the Japanese state has no monopoly on foreign trade, the Japanese economy after the war has been extremely crisis, the foreign

currencies are scarce, Japanese have started to restore production from the beginning they began to think about export and export promotion, the

foundation of the building of a legal system related to trade promotion

activities such as the 1949 Foreign Trade Control Law, the Export Credit Insurance Law 1950, Special Tax Law 1953, Model Export Law of 1958, Aseries of export promotion organizations were established, namely Japan Export Bank (1950), Foreign Trade Research Institute (1951), Association international exhibition market (1952) Later, the last two agencies were merged with a number of other agencies (1954) and reorganized as Foreign Trade Promotion Agency - Jetro (1958), in 1962 officially called Export Promotion Department in 1964 This case has become a trade promotion department today

The establishment and development of Trade Promotion Department comes from practical needs and suitable with the general development of Japanese economy State management functions include strategic orientationand planning, guidance and control In developed countries, the first two functions are increasingly developed and the third function is computerized Therefore the size of a management department like the Vietnam Trade

Promotion Agency from a very large development area then decreases

However, affiliated agencies such as JETRO develop and open in terms of maximum synchronization and autonomy

1.3.1.2 The role of the Japanese government in trade promotion programs

The export promotion that people often talk about in the narrow sense is actually export marketing Marketing was born as an indispensable of the

market economy, its role is indisputable Many companies spend on marketing from 1 - 10% of product costs However, due to the size of the business, not all businesses can have enough marketing departments For example, if you want toresearch foreign markets, you must have information,

offices abroad or participate in fairs Centralized organizations such as governmental and non-governmental organizations are therefore needed Government organizations can be trade promotion organizations at trade fairs, consulting agencies, information centers, research institutes, etc.These organizations all operate mainly on the budget The degree of independence from line ministries varies The function and size of agencies also vary

depending on country-specific policies and conditions That's why many people mistake JETRO as an independent agency

If considering the form and content of activities of each trade promotion agency, many times we see the activities can be similar or duplicate But overall, we can see the difference in nature between the trade promotion agencies of the Government and non-government (especially the chamber of commerce) This difference is reflected in the operating funding structure Government agencies rely heavily on the Budget, the strategic direction of theState means that they represent the Government before other countries and thedevelopment of the economy in general Therefore they operate according to the national strategy These agencies are subject to the management of the planning and finance agencies However, in developed countries the

management is done on the basis of law, not by administrative measures In other words, the management role is very high

1.3.1.3 JETRO Trade Promotion Department

JETRO has 37 offices in the country and 57 offices abroad are non-profitagencies and are classified as public welfare agencies In other words, these agencies are all under the government - the ministries, but not the

management apparatus These agencies may have their own offices abroad.Although non-profit agencies, in-depth study of the activities of

agencies and the budget structure shows that agencies operate with many sources of funding:

1- The central budget is allocated directly from the Ministry of Finance.2- Indirect state budget sources include:

a Local budgets are extracted from the respective categories forlocal economic development projects This source is transferred totrade promotion agencies on contract basis

b Sector budget: essentially a centralized budget allocated to Ministries and then transferred directly or through ministries and agencies to trade promotion agencies on contractual basis

3- Other revenues include:

a Membership fees are collected according to the size of the unit, such

as membership fees, annual fees, and separate cases

b Income-generating activities such as information

distribution, consultancy, fairing, market survey, etc

c For developing countries there is also a need for support from

international organizations, governments and large corporations These sources come in many different forms: bilateral government multilateral sources (such as UNDP), sources of technical cooperation.JETRO's key activities include:

 Import promotion

 Support for export and industrialization in developing countries

 Promotion of industrial cooperation

 Promotion of international exchanges

 Support for local economic development and

internationalization of small and medium enterprises

 Collecting and providing information in the world

In Vietnam, JETRO has opened an office in Hanoi since 1993, and JETRO now cooperates with Vietnamese government agencies and businesses to carry out many activities to promote economic and trade exchanges between the two countrys JETRO's principal activities in Vietnam include:

 Support to promote the export of Vietnamese goods to the Japanesemarket

JETRO conducts activities such as inviting technical experts on each commodity from Japan to conduct seminars or direct technical guidance in order to support businesses with great export prospects and market

introduction Japan (for example, experts in textile industry and

agricultural processing ); invite representatives of Vietnamese enterprises

to Japan to survey, master production techniques and exchange directly

with Japanese enterprises; support Vietnam's participation in other goods exhibitions in Japan; organize trade negotiations in Vietnam on the basis of welcoming delegations from Japan

Supporting the promotion of Japanese direct investment into Vietnam.JETRO conducts activities such as inviting policymakers as well as

businesses interested in investing in joint ventures to Japan to master Japanesemarket demand and organize investment seminars in Vietnam for foreign investors Japanese small and medium enterprises Every year, JETRO

organizes a foreign investment promotion fair to provide investment related information to Japanese companies, providing information related to the investment environment in Vietnam from Japan and other Asian countries Asia nearby

Help build Vietnam's supporting industry

In view of promoting Asia's supporting industry, promoting exchanges

between businesses in the region Since 1996, JETRO has been carrying out activities to support Vietnam's construction of supporting industries (parts and

materials) in the automotive, electrical and electronics industries Specifically,

in collaboration with the Ministry of Industry and Japanese companies have invested in Vietnam, conducted a research study to firmly understand the needs and ability to supply spare parts of domestic enterprises

 Job promotion building Vietnam's market economy

The Vietnamese government is promoting the development of a marketeconomy based on the innovation policy, JETRO has activities such as:

Inviting experts in fields from Japan to organize seminars (for example Forexample, seminars on introduction of production recovery and export

promotion policies, trade policies related to WTO, energy saving policy, Japanese market and trading practices, technical seminars measurement, environment ) Inviting Vietnamese government's trade and investment officials, the Vietnam Chamber of Commerce and Industry to visit Japan toenhance Japan's economic and industrial understanding

 Support activities providing information and advice

JETRO provides a wide range of services to Vietnamese companies and government agencies such as: answering questions about tax rates, statistics and other information about Japanese companies; posting free information

on JETRO publications on sales orders of Vietnamese companies that are interested in exporting goods to Japan or interested in joint venture and

investment with Japanese companies, encourage use of document library in JETRO office

1.3.2 Lessons learned for Vietnam

Trade promotion is an objective necessary activity, arising due to market mechanism demands Without the interest of the state, these activities will exist spontaneously as profit-making services, without strategic direction Asthe regulatory role of the State becomes more and more important, trade

promotion agencies of the State will become an important tool to promote the implementation of each country's trade strategy.

In order to form and develop effectively its activities, state trade promotion organizations need the support and management of functional departments, especially in the period of economic recovery When trade promotion agencies become structurally and professionally complete, the size of state management agencies will gradually decrease Its function is only strategic direction, guidance and budget management

CHAPTER II CURRENT SITUATION OF TRADE PROMOTION ACTIVITIES

AT THE PROCESSING AND EXPORT ASSOCIATION (VASEP)

2.1 About the Association (Vasep)

The association was founded on June 12, 1998 The current charter of the Association is amended and approved by the Ministry of Home Affairs inDecision No 1172 / QD-BNV of November 12, 2014 The association's English transaction name is Vietnam Association of Seafood Exporters and

Producers, abbreviated as VASEP.

Vietnam Association of Seafood Exporters and Producers (VASEP) is a voluntary organization of enterprises engaged in seafood processing and export of Vietnam, with the aim of coordinating and linking the operations of enterprises , helping each other improve the value, quality, and

competitiveness of Vietnam's aquatic products, develop and create a source ofraw materials for aquatic product processing and export, represent and protectthe legitimate and legitimate interests of members

Members of the VASEP Association are enterprises of all economic sectors, non-business organizations and managers operating in the field of processing and importing and exporting aquatic products of Vietnam,

endorsing the Association's Charter , voluntarily apply to join the Associationand be recognized by the Executive Committee Most of VASEP's members are reputable seafood processing and exporting companies in Vietnam, the rest are businesses in the service sectors related to the fisheries industry Seafood export turnover of VASEP members accounts for 80% of total

seafood export turnover of Vietnam

VASEP Association currently has 2 campuses located in Hanoi and HoChi Minh City

 Line Agency: Vietnam Association of Seafood Exporters and Producers (VASEP)

 Address: 7 Nguyen Quy Canh Street, An Phu Ward, District 2, HoChi Minh City

 Tel: (+84) 28.628.10430 - Fax: (+84) 28.628.10437

 Email: vasephcmcity@vasep.com.vn

 Representative offices: No 10, Nguyen Cong Hoan, Ngoc

Khanh, Ba Dinh, Hanoi

 Address: No 10, Nguyen Cong Hoan, Ngoc Khanh, Ba Dinh, Hanoi

 Tel: (+84 24) 3.7715055 - Fax: (+84 24) 37715084

 Email: vasephn@vasep.com.vn

 Website: http://vasep.com.vn/

 Logo:

VASEP is a member of the following organizations:

 American Fisheries Association (NFI)

 ASEAN Aquaculture Federation (ASF)

 Singapore Seafood Industry Association (SIAS)

 Vietnam Chamber of Commerce and Industry (VCCI)

 Advisory Council for administrative procedure reform.

2.1.1 Functions and some key activities of the Association (VASEP) 2.1.1.1 Functions of the Association (VASEP)

 Support member enterprises to improve productivity, quality,

production and business efficiency, create raw materials, expand

markets, enhance the competitiveness of Vietnam's seafood products, inorder to contribute positively to develop the country's fisheries

 Protect legitimate and legitimate interests of the Association and its members On behalf of the members to propose to the State issues related to the development of the field of processing and

import and export of aquatic products

 Developing membership, facilities and expanding the scope of activities of the Association, establishing and developing internationalrelations

2.1.1.2 Some key activities of the Association (VASEP)

With the role of supporting the development of Vietnam's seafood processing and export industry, VASEP Association has been carrying out various activities such as:

 Strengthen development and build member relationships

 Building links with farmers and fishermen to produce materials.

 Establishment of industry committees and intensification of committees into the industry

 Acting as a bridge between member enterprises and State

management agencies Promptly handling members'

recommendations, disseminating and guiding members to well

implement the State's guidelines and policies

 Building and developing international relationships through participation in international conferences, seminars and forums External information channels: Portal: http://seafood.vasep.com.vn

 Provide timely trade information to members through the

regular release of the weekly Seafood Trade Newsletter, Quarterly Seafood Export Reports and updated information on the

Association's web portal : www.vasep.com.vn