Agricultural business in Vietnam
Which currency should we settle on?
Vietnamhas drastically progressed in its economy. This has led to a moreopen and improved business environment in Vietnam. It has transformedfrom a centrally planned economy to a socialist market characterizedby features such as dynamism and an entrepreneurship that is rapidlygrowing(Rothaermel, 2015). Its market is said to be among thebest that have integrated with global economies, thus bringing anincrease in the trade volumes and also in the foreign investment.
People would prefer the use of the Dong over other currencies. TheDong is the official currency used in Vietnam. The Dong is notconvertible to USD and in the year 2015 it traded at around 22,300 tothe USD. The US dollar is widely accepted in Vietnam major shops andrestaurant. The only problem associated with the use of the US dollaris that the prices are usually converted from the Dong at vendor’schoice which does not relate to the official exchange rate. Thismakes to be more expensive than the comparative cost of the Dong.Various other currencies are exchanged such as the euro and pound(Rothaermel, 2015). If an investor wants to exchangehis money for the Dong, the notes must be clean. Visa and mastercards are also being used in large cities. The Dong will help to saveon arguments with the clients on the exchange rates. The largestdenomination of the Dong is approximately 500,000 which is equivalentto 24 US dollars. The Dong is widely accepted in Vietnam market whileoutside Vietnam it is not accepted. After business transaction, youshould convert some of your money to the US dollar to save onbulkiness of the cash. Another factor that would propel me to use theDong is that according to Vietnamese law ATM are only authorized towithdraw cash in the Dong currency.
The Vietnam market has turned to be a multi-sector operating market.The economy has recorded a 7.2% GDP growth rate, which is the leadingin Asia-Pacific zone. The enterprise and invested law have createdfavorable conditions for the private sector. The law removed allbarriers in business transactions.
Agricultural based generated income will have a subsidized taxationrate to encourage more investments. This is a key factor that wouldcontribute to the use of the Dong. Agriculture plays an importantsocial-economic life as 57% of the total employment(Rothaermel, 2015). This makes the government come upwith suitable economic policies in the field of taxation. To avoidheavy taxation the Vietnam Dong is preferred. The Vietnam Dong hasalso had developments as it was converted from the common paperbanknotes to polymer bank notes. The government has taken measures inthe stock exchange market to ensure there is equalization in thestock market. It also increased the total shareholdings in foreigncompanies.
The Vietnamese government assures investors fair treatment ineconomic policies. Foreign investors can release abroad investmentcapital and other legal proceeds and assets. Foreign investorsoperating in Vietnam are offered standard incentives. Such incentivesinclude import-duty exemption, reduced corporate tax rates, tax arealso reduced during the start up phase (Rothaermel,2015). Foreign enterprises in Vietnam are also requiredto open bank accounts. This is done after acquiring of a certificateof registration. Saving accounts can be opened at any post office.
In conclusion, from the above well-illustrated points, it isadvisable to use the Vietnam Dong to avoid arguments with thecustomers on the transaction rate to use. The government has alsoreduced the tax on agricultural based industries to promote thesector. Another key feature that makes me prefer the Dong is that ATMwithdrawal is only done using the Dong.
Q.3Social network in vietnam
The British council is concerned with social networking workingover 100 countries worldwide. Its main aim is to develop trust andengagement by exchanging ideas and knowledge with people. It enablespeople to develop economic opportunities that help in achievingprosperity for every individual investor(Rothaermel, 2015). Across Vietnam, the British councilworks in collaboration with the government, non-profit makinginstitutions, and the public thus providing greater opportunities forinvestment. This council has helped in the development of socialinnovations. The council has made a difference in Vietnam.
Over the last l0 years, these revolutions have ensured goodconditions for the nourishment of strong business. Vietnam growth hasbeen accredited to business and the social organizations indeveloping various social-economic objectives. The Institute forEconomic Management (CIEM) in collaboration with the Vietnam Britishcouncil is concerned with the social network development in Vietnam.Among the popular social network in Vietnam that can be used includeFacebook, Twitter and the Linked in. This is among the popular sitesthat can be used in advertising the enterprises via the socialnetwork. The eMarketer estimates that Vietnam is among the best inthe world. The social businesses have helped solve struggles inbusiness. Due to the vast knowledge and digitalization in Vietnam,investors are able to get to the client fast and conveniently. Onlinesocial networking helps to expose investor’s products via variouswebsites. This enables investors to interact with their clientswithout necessary meeting them. From research results show thatVietnam is the leading in social networking. The E-commerce has shownan increase in shares for sale. Vietnam E-commerce Association isalso linked to the entry in the social networks (VECOM). About 55% ofthe business in Vietnam realized about 20% increase in sales viasocial network(Rothaermel, 2015). Most enterprises in Vietnam havewidely relied on the web to stir up more sales. According to VENCOMdigital marketing channels have been found to be among the best. TheZalo also known as ZingMe has also been identified as a good socialnetwork as it is popular among the masses. Facebook in Vietnam hasbeen blocked via desktop making it less useful in business marketing.The following results were shown by different social marketingchannels, social networks 47%, search engines 47%, online news sites31%, email 29%, newspapers 20%, television sets 13%, and others 20%(Rothaermel,2015). Even though, the results show that socialnetwork and search engines have equal magnitude as marketingnetworks, Vietnamese companies seemed to believe more in socialnetworks as compared to search engines.
In conclusion, social networks in Vietnam have helped investors intheir businesses as marketing agents. The social networks havebrought the clients closer to the investor. This has led to anincrease in sales as shown by research-based institutions in Vietnam.
Q.3Wording and symbols to be used in marketing in Vietnam
The brand name is one of wording that the agricultural machinerycompany can use to market its products in Vietnam. This is a wordingmarketing strategy that involves a phrase of words that can bepronounced (Rothaermel,2015). Since this phrase is pronounceable, it enablescustomers to distinguish its products. The brand name must bedesigned to appear noble. An example of a brand name is FARMSMILE.
The agricultural company has to use a log in marketing. This is asign that is used to lay out a product and business name for thepurpose identity (Rothaermel,2015). This is a symbol that is supposed to be used toshow the face of the agricultural machine. The company is supposedto develop a log that will describe the origin, association andownership history. A log simplifies buyers task to identify theproduct hence purchases more.
The company is supposed to use symbols that portray a clear meaningof the brand. The symbols used must have a clear meaning andconveying a particular message to the consumer (Rothaermel,2015). Some of the symbols the agricultural company canuse are images of prominent singers in Vietnam, actors, models orstable crop. Symbols are of great significance because they will bein a position to create awareness of the machine. The consumer canalso see the product. The symbol used should be clear and depictingthe usefulness of the image. For instance, the company can use aphoto of a digital tractor in a firm. Images of agricultural productsin Vietnam
Figure1 symbols used in advertising
The company can use a slogan to market its products. The sloganformulated must be persuasive and contain descriptive informationabout the brand. A slogan can play a significant role in advertisingproduct and can be used in packaging of products(Rothaermel,2015). For instance, the company uses descriptive andpersuasive slogans in packaging agricultural machines. Small sizedagricultural machines can be packed in cartons that have a persuasiveslogan.
Figure2 this can be packaged incartons that have a slogan.
Inadvertising, the product thru the media the company may opt to usejingles. This is a musical message that is written around a brand(Rothaermel,2015). Since every social status is suited intelevision. Therefore, using the famous musical message in marketingwill improve the purchasing power.
Aparticular style, color, and scent can be used to enable customersstrongly distinguish and identify their products (Rothaermel,2015). The company is supposed to color its product ina different color from other products so as to differentiate themachine from those from other companies.
Sinceeach product is packaged separately, it is necessary to design andproduce wrappers to the product. Since different packets are designeddifferently, the company can opt to design unique packets that caneasily be distinguished by buyers.
Wordingand symbols to avoid in marketing
Thereare some symbols that the company must avoid in marketing it machinesin Vietnam (Rothaermel,2015). Some slogans used in marketing create a negativeimpression of the product rather than identifying the product. Forinstance, backward or downward facing arrow create negativeconnotation on a brand Subconscious level.
The company is supposed to avoid some slogans because they arebelieved to mocks its expectations (Rothaermel,2015). For instances, slogans that targets the poorshould be avoided. “Affordable to Poor” This slogan willdemoralize the poor and be afraid of purchasing. Similarly, it willlimit the rich from purchasing the machines. This is because from theslogan the rich assumes the products should be purchased by the poor.
Rothaermel,F. T. (2015). Strategicmanagement.McGraw-Hill.