PROGRAM TITLE: ……………… Project 2……………………………

UNIT TITLE: ……………………… Hai Ha Confectionery Joint Stock Company …………………………….

ASSIGNMENT NUMBER: …………2………………………

ASSIGNMENT NAME: …………………………………….

SUBMISSION DATE: ………………28/10/2020……………………….

DATE RECEIVED: ………………………13/10/2020………………………

TUTORIAL LECTURER: ……………………………………

WORD COUNT: ………………4687……………………………..

STUDENT NAME: BUI THI VAN ANH

STUDENT ID: BKC1945

MOBILE NUMBER:0386882457
Summative Feedback:

Internal verification:
I. REPORT INTRODUCTION

The country of Vietnam is developing day by day with a lot of small and medium enterprises opening
up every year. New companies promise to have a wide variety of trend-following products. This is the
reason why the Vietnamese market becomes fiercely competitive. The confectionery industry alone has
more than 10 large companies in this field, so it is not easy to survive and develop, but Hai Ha
Confectionery Joint Stock Company still maintains its foothold and enhances production activities for
many years

II. COMPANY INTRODUCTION

Hai Ha Confectionery Joint Stock Company (HAIHACO) is one of the largest confectionery
manufacturers in Vietnam.

The company was established in 1960 through more than 50 years of trying and maturing. The
company has continuously grown, accumulated a lot of experience in production and business. With a
team of experienced leaders, good business strategies, a team of highly qualified engineers and a
workforce of skilled workers Hai Ha Confectionery Joint Stock Company has progressed steadily and
developed. development continuously to maintain the reputation and quality worthy of the trust of
consumers.

The forerunner was a small factory with a capacity of 2000 tons / year. Today, the company has
developed into Hai Ha Confectionery Joint Stock Company with production scale up to 20,000 tons /
year.

Currently the company has a distribution system throughout the provinces and cities nationwide, with
a variety of traditional and modern sales channels. In addition, the company's products are exported to
13 countries around the world, and products are consumed in leading countries such as the United States,
Japan, and South Korea ...

Currently the company has 3 manufacturing factories in Bac Ninh Industrial Park, Nam Dinh City, Viet
Tri City and two distribution branches in the city. Ho Chi Minh City and Da Nang.

Hai Ha Confectionery Joint Stock Company is the first enterprise in the confectionery sector to be
certified with the system of "Hazard Analysis and Critical Control Points" (HACCP) in Vietnam. This
demonstrates the commitment of the business leaders to ensure food safety for the health of consumers.

In 2003, the Company equitized under Decision No. 191/2003 / QD-BCN dated November 14, 2003
of the Ministry of Industry.
The company officially operated as a joint stock company from January 20, 2004 under the Business
Registration Certificate No. 0103003614 issued by the Department of Planning and Investment of Hanoi
City and changed for the seventh time on 09 / 05/2018

2017: Vietnam Tobacco Corporation (Vinabata) divests all 51% of its ownership in Hai Ha
confectionery

Achievements: Achievements of Hai Ha Confectionery Joint Stock Company recognized by the Party
and State:

+ 4 Third Class Labor Medals (1960 - 1970)

+ 1 Second Class Labor Medal (1985)

+ 1 First Class Labor Medal (1990)

+ 1 Third Class Independence Medal (1997)

+ Certificate of Merit from the Prime Minister in 2010

Products of Hai Ha Confectionery Joint Stock Company were awarded many Gold and Silver Medals
in the Vietnam International Industrial Goods Fair, National Economic Achievement Fair exhibition,
economic exhibition- engineering- Vietnam and the Capital.

The products of Hai Ha Confectionery Joint Stock Company have been continuously admired by
consumers and voted as "High Quality Vietnamese Goods".

(haihaco 2020, gioi thieu chung)

1. Company product/service type

The main production and business activities include:

- Producing and trading in confectionery and food processing.

- Import and export business: raw materials, machinery and equipment, specialized products, consumer
goods and other products.

- Investment in construction, office rental, housing, commercial center.

- Trading in other industries that are not prohibited by law.

Main product :

- Cookies
- Candy box

- sponge cream cake

- The cracker

- Moon cake

- Chew candies

- Soft candy

- Hard candies

- Jelly candy

- Lollipop

(haihaco 2020)

2. Aims & objectives

A, Aims
- Improve working conditions and welfare regimes for employees. Maintain production, stabilize
development, strive for a growth rate of 5-30% in the following years
(haihaco 2018, bao cao thuong nien 2018)
B, Objectives

- Continued research to reduce material consumption costs. Increasing production

efficiency boosts the competitiveness of businesses

- Apply information technology to management to save labor

- Promote market research, invest heavily in research into seasonal products such as moon cakes, Tet
jam.

- Promote export activities, trade promotion, open new export markets, stabilize old markets. Increase
participation in domestic and regional fairs to find new customers

- Promote business activities to build branding products to maintain position in the market

- Continue to strengthen sales human resources to professionalize and improve the efficiency of the sales
department, to build and develop a product distribution system to enhance the company's
competitiveness in the market.
- Having a suitable sales policy, investing in advertising new products

- Continuing to care and take care of policy families in the company; Actively responding to and support
social and charitable activities.

- Pay attention to environmental protection: continue to maintain and complete wastewater treatment in
production areas of the company.

- Pay attention to the work of ensuring food safety and hygiene in production and circulation. Continuing
to research energy-saving solutions in the production process

- Well perform all obligations towards the state and locality.

(haihaco 2018, bao cao thuong nien 2018)
III.PESTLE ANALYSIS
1. Political factors
a. Positive impacts
A number of government programs (such as competitive import duties, tax exemptions)
provide opportunities for businesses to grow and survive. Hai Ha Confectionery Company clearly
recognizes political stability, policy priorities and other conveniences in Vietnam, so it has continuously
promoted its strategy of exploiting, taking advantage of these advantages to dominate the market.
Recently, the National Assembly passed Resolution 86/2019 / QH14 on state budget estimates for 2020.
Accordingly, the base salary was adjusted from 1.49 million VND / month to 1, 6 million VND / month
from July 1, 2020, making the purchasing power of the whole country significantly increased
Since 2003, the import tax of the confectionery industry has decreased by 20%, enabling HAIHACO's
products to enter Asian countries.

b. Negative impacts
The fierce competition between countries and the complicated developments of the South China Sea
cause many disadvantages to our country's socio-economic development. Along with that, increasing
employee's salary helps purchasing power increase, but at the same time the company must also increase
its budget to pay salaries for employees.
Finally, Vietnam is building current laws that are lacking and incomplete, causing many shortcomings
to hinder the development of the company. Enterprise Law No. 59/2020 / QH14 was passed at the 9th
session of the 14th National Assembly on June 17, 2020. Changing 6 important articles of the Law on
Enterprises from January 1, 2021 such as removing the regulations on the time limit for owning common
shares, changing the capital ratio in State-owned enterprises, or suspending business need to report 3
days in advance, the name of the place of business must include the business name, etc.
2. Economic factors
Economic factors have a great influence on companies, these factors are relatively broad so companies
need to recognize the specific impact that most directly affects. Economic factors play a decisive role in
the development of business environment.
a. Positive impacts
The economy is highly and strongly developed with GDP growth estimated at 1.8% in the first half of
2020, expected to reach 2.8% in the whole year, leading to an increase in employees' income. Increased
purchase, this is an opportunity to meet the needs of customers, thereby increasing the company's market
share, dominating the market, raising the company's profit

During the period when the VND was increasingly devalued, it had affected the import and export
situation. This is an opportunity for domestic enterprises to increase exports
The import tax will increase from which the imported products will also increase. Therefore,
consumption of imported confectionery will decrease, stimulating users to use domestic products

b. Negative impacts
Vietnam is integrating into the economy, creating opportunities for foreign businesses to invest in
Vietnam. Particularly in the confectionery industry, there are ORION, Perfetti Van Melle (which owns
the brands Alpenliebe, Chupa Chups, Mentos), OISHI, ... which are very popular with users.
Because Hai Ha Confectionery Joint Stock Company imports some raw materials and flavorings from
abroad, so when the import tax increases, the value of goods increases. And it is domestic consumers
who pay the price for this tax burden. That leads to lower consumer demand
Bank interest rates rise when inflation occurs, causing debt to pile up. If prolonged, it will affect the
capital and development of the company. In early 2008, when inflation was high, input material prices
also increased, HAIHACO faced many difficulties in production, product consumption and investment
in market expansion. And in 2020 due to the impact of the covid epidemic 19 economies will be affected,
people staying home to avoid the epidemic will have their wages cut, they tend to save. So they only
buy essential foods for daily life no longer consume as much candies as before. When the epidemic
broke out, the government ordered all stores except for essential foods closed. HAIHACO is also among
them, a series of stores across the country have to close together with the pressure of rental fees, which
has greatly affected the company's profits.

3. Social factors
Cultural and social environment shows social attitudes and cultural values. It includes demographic
factors, population growth rate, population structure, life opinion, aesthetic point of view, values, ethical
standards ... When there is a change in these factors will create there is a huge change in demand for
flooring products
a. Positive impacts
- Being a country with a young population, it has an abundant human resource
- In Vietnamese culture and customs, confectionery is an indispensable part of occasions: birthdays,
weddings, Tet, full moon, mid-autumn, etc.

b. Negative impacts
- High intellectual level of people affects the business strategy of the business because at that time,
consumers' demand for designs, quality, colors, designs and aesthetics is increasing.
- Each region has a different way of life and customs. Northern people are interested in packaging,
design, and like to eat sweet. The southerners prefer sweet and fruity flavors.
- Currently the country has many people suffering from obesity and diabetes, so the consumption of
confectionery decreases
Consumers increasingly prefer foreign confectionery because they think that it is better than this is a
hindrance to the company.

4. Technological factors
Technology is changing rapidly, giving people many miracles, but also posing new challenges for
businesses.
a. Positive impacts
With repetitive jobs, HAIHACO has introduced automatic production line technology in a closed
environment to reduce the number of workers, improve product quality and work efficiency.

Automatic sponge cake production line

<Automatic sponge cake production line, by Song Phuong Hai, 2020>

Hai Ha Confectionery Company, outside the packaged confectionery business, also has fresh cream
cakes with a short shelf life. The company used coolers in the storage process to keep the product from
melting, always fresh and to display the products.

<cake fridge, by foody, 2018>

Finally, technology helps the company to check the quantity of sold goods and inventory in stock to
have timely measures to prevent expired products, causing waste

On the other hand, Vietnam is an agricultural country, so technology has not yet developed strongly.
Modern machinery and equipment need to be imported from advanced countries such as Korea, the US,
Japan, ... so it is expensive.
With technology developing, consumers like to shop online on e-commerce sites such as tiki, lazada,
shopee, ... HAIHACO has not deployed online sales, so it will lose a large number of customers. Social
networks today attract a lot of people, they spend a lot of time on it so other brands are promoting
advertising in the media, but HAIHACO has not yet invested in this segment.
For example, Richy's KARO egg cake is heavily advertised: dense on Youtube, on TV golden hour,
running ads on Facebook, many people find it. As a result, many people know the Richy brand and the
number of cakes sold also skyrocketed

5. Legal factors
Legal is the different aspects and aspects of the legal life of a country.
Legal refers to the arguments, the right according to the law, the legal value derived from a social event
or phenomenon such as the legal value of the 1954 Geneva Agreement on Vietnam which are the basic
national rights. self-determination of the Vietnamese people; principles, categories, concepts, theories
of law.

a. Positive impacts
Any business also needs to have its own name to make a distinction from other businesses. It is also an
indispensable part of your corporate brand identity.
Example: Hai Ha Confectionery Joint Stock Company
Enterprise name when registering the copyright will be established by the owner of the trademark,
protected by law from all infringements of other individuals and organizations, helping consumers to
distinguish goods and services of different production and business individuals and organizations.
Distinguishing and capturing information on the origin and origin of business entities can have a large
number of potential customers and have an important position in the market.
To be able to start a business, all businesses must submit declarations and specific descriptions of owned
and intangible assets to the registry.
+ Main property: Money, machinery, products, records ...
+ Intangible assets: Trademarks, inventions, ideas, ...
This makes it easier for owners to use trademarks, to transfer, assign, inherit or contribute capital to, to
use trademarks.
In addition, businesses need to have a fixed address to locate their headquarters. It will be the office that
directly deals with products and services with customers and is identified in the business registration
license.This is to stabilize the business.
b. Negative impacts
In the business process, there are many legal problems arising: transferring projects, transferring capital,
shares, if they do not understand the provisions of the law, businesses will have difficulty in
implementing and miss out tax incentives, business land lease
The legal policy change poses a series of requirements for businesses. Failure to regularly update legal
standards will lead to legal violations, causing serious consequences, most serious being business
suspension.
Difficulty in applying the law to maintain effective labor relations, especially when labor disputes arise.
Face legal risks such as unfair competition, infringement of intellectual property rights, difficulties in
commercial disputes,etc.

6. Environmental factors
a. Positive impacts
 Vietnam is considered a fruit bowl. There are many kinds of specialty fruits such as durian, coconut,
jackfruit, etc. that can be used as flavoring for export confectionery. At the same time, reducing the cost
of importing raw materials from abroad
b. Negative impacts
- Confectionery is also a food, so it is necessary to ensure food hygiene and safety. But Vietnam has a
hot and humid tropical climate with a lot of rain, so it is difficult to preserve and easily damaged
- Most of the raw materials for production are agricultural products with complicated weather in Vietnam
such as storms, floods, droughts, etc. making the source of raw materials unstable, the cost of material
reserves is high.
- The production scale is large, so HAI HA Confectionery Joint Stock Company needs to use a lot of
water and the amount of wastewater discharged into the environment is also a lot, it needs to spend a lot
of wastewater treatment costs to not affect the environment.
- Most of the product's packaging is plastic because it is cheap, so after being used, it is very difficult to
decompose into the environment. Global warming is a worldwide concern, businesses have a
responsibility to limit plastic waste. This is a challenge for HAIHACO.

IV- SWOT ANALYSIS

1. Strengths
With many years of establishment and development, HAIHACO is known to many consumers.
HAIHACO's products have been voted as "High Quality Vietnamese Goods" for many years and
HAIHACO's brand name has been registered for ownership protection in Vietnam, Singapore, China,
Laos, Cambodia, Russia, Malaysia, etc.
HAIHACO has an abundant workforce with more than 1300 employees divided into 6 departments and
5 factories across the country, making it convenient in the production and distribution process.
HAIHACO is an affordable confectionery manufacturer suitable for a wide range of customers. HAI
HA marshmallows are currently the company's best-selling product at only 7500 VND per pack of 105g,
chip candy priced at 9500 VND per 100g pack, Miniwaf tube 20000 VND per pack, etc.
HAIHACO is still maintaining good relationships with business partners such as Laos, Cambodia,
China, Korea, ... ensuring raw materials, reducing raw material consumption costs. As a state-owned
enterprise under the management and equitization of the Ministry of Industry, compared to other
confectionery companies, HAIHACO has a large scale and capital costs are not small.
2. Weaknesses
Although very famous in Vietnam, HAIHACO has not yet confirmed its name in the international
market. The company's management team has mainly graduated from university, which is a challenge
for the company as it increasingly has to fight with domestic and international competitors.
+ Chairman of the Board of Directors
- Mr: Le Manh Linh
Year of birth: December 5, 1984
Education: 12/12
Qualification: Bachelor of Economics
+ Member of the Board of Directors - General Director
- Ms.: Bui Thi Thanh Huong
Year of birth: January 8, 1972
Education: 12/12
Professional qualifications: Bachelor of economics, bachelor of foreign languages.
+ Member of the Board of Directors
- Ms.: Vu Thi Thuy
Year of birth: February 26, 1975
- Educational level: University
Qualification: Bachelor of Economics.
+ Member of the Board of Directors
-Mr :Nguyen Manh Tuan
Year of birth: October 7, 1971
Education: 12/12
Qualification: Bachelor of Economics.

Capital is large but the ability to mobilize working capital is not flexible, raw materials are increasing,
so production costs also increase and the total capital of the company is decreasing, increasing product
costs do not correspond to the quality of output. Products. Next is the company's machines are outdated,
many machines are manufactured in the 1960s. Most importantly, HAIHACO has not really invested in
advertising, very few billboards, product introduction booths at markets, supermarkets, there are no TV
or YouTube promotional videos like other brands.
Due to the limited consumption of sugar-rich products from consumers, the trend of consuming
confectionery decreased compared to cake, while candy is a commodity that accounts for a larger
proportion than cakes, so the Company has difficulty in the growth process. Today, people's lives are
getting more and more busy, many people choose convenient meals for the morning with cakes with full
nutrients. As a result, brands are continuously launching products that satisfy the needs of users. Huu
Nghi has Staff Bread, Kinh Do has fresh beef burger, sandwiches, Richy has fresh egg tarts, ...
HAIHACO still has no similar products.
3. Opportunities
Over the past years, Vietnam's confectionery industry has had a high and stable growth rate, annual
output of over 150,000 tons, 2014 revenue of VND 27 trillion. The average annual revenue growth rate
of the whole industry in the period 2010 - 2014 reaches 10%, while this figure for the 2006-2010 period
is 35%, from 2015 to 2019, the growth rate will be about 8-9%.
 Production - sales of confectionery in 2011-2019

The company's output market is consumed in the North, this is the company's traditional market.
Specifically, in 2009 the company supplied this market with 10893 tons.
Compared to the northern market, the central and southern market are somewhat more modest. The
Central market in 2009 was 3350 tons and the South in 2009 increased by 140 tons compared to 2008.
The South is a potential market that the company needs to expand and dominate because of the income
and quality of life of residents this is very high
Vietnam joined AFTA in effect since 1993 including ASEAN countries and joined the WTO on 7-11-
2006, and was recognized as an official member of this organization on 11-1-2007. WTO accession has
opened up great opportunities for goods and services of Vietnam with a large market, including 155
member countries, accounting for 97% of global GDP. Thus, businesses in general and HAIHACO in
particular have opportunities to expand import and export markets

4. Threats
Industry characteristics: Confectionery industry is highly competitive. First, confectionery is not an
essential commodity, so the amount of confectionery consumed depends on the economy of each family.
 Second, people are increasingly concerned about health, eating more clean food. They buy fruits and
vegetables every time they go to the supermarket, limiting their purchases of sweets. Therefore, it is
difficult for HAIHACO to penetrate the market, ensuring food quality, food hygiene and safety, with
diverse designs, many types to suit the needs of each customer.
In 2018, the State continues to implement the AFTA commitment to reduce the import tax on
confectionery to 0%, making domestic confectionery fierce competition with imported confectionery
from Asian countries.
Vietnam's confectionery market has a distinct seasonal nature, sales volume increased sharply from
around the eighth lunar month to the first lunar month. Due to this period of time, there are many festivals
such as Mid-Autumn Festival, Christmas, New Year's Eve, ... After Tet, demand dropped sharply due
to a hot climate in Vietnam.
Fluctuation of raw material prices: Some raw materials are imported, so the fluctuation in exchange rate
affects the product cost. In raw materials, diameter accounts for 15% of the company's total material
cost. However, the use of domestic sugar at high cost makes it difficult to adjust the company's product
cost
Regarding exchange rates: the company does some foreign currency transactions such as importing
materials from Korea, China, Japan, America, Myanmar, etc. In addition, the company's machines are
imported from abroad, so the company's new projects are also affected by exchange rates.

5. Relationship between internal factors (strengths and weaknesses) and external factors (opportunities and
threats)
 Strengths (S) Weaknesses (W)
1. With many years of 1. Not confirmed its name in
formation and development the international market.
2. Products of HAIHACO for 2. The management team of
many years been voted as the company mainly
"High quality Vietnamese graduated from university
goods" 3. Large capital source but the
3. HAIHACO brand name has ability to mobilize working
been registered for ownership capital is not flexible, raw
protection in Vietnam, materials are increasing, so
Singapore, China, Laos, production costs also
Cambodia, Russia, Malaysia, increase.
etc. 3. The company's machines
4. HAIHACO has an abundant are outdated, many were
workforce manufactured in the 1960s.
5. HAIHACO is an affordable 4. HAIHACO has not really
confectionery manufacturer invested in advertising
6. HAIHACO has good 5. No salty bakery product
relationships with business with enough nutrients
partners
7. As a state-owned enterprise
under the management and
equitization of the Ministry of
Industry, HAIHACO has a
large scale and capital costs are
not small.
Opportunities (O) -- Using the strengths of - Overcoming the
Vietnamese goods with high disadvantages of outdated
1. The domestic quality and reasonable price to machines, most managers
confectionery market still continue developing the only graduated from
has great potential domestic market. Especially, universities, their names have
2. Market expansion step by step entering the not been confirmed on the
opportunity in the South southern market international market to have
3. Vietnam joined AFTA - HAIHACO has registered for opportunities to expand
and WTO to help expand protection in many countries, export markets.
export markets with large scale, large capital, - Invest in advertising,
abundant labor force will be an producing many savory
 advantage to help the company bakery products suitable for
expand export markets. many types of customers to
develop the domestic market.
Threats (T) - Using the advantages of many - Invest in advertising for
1. Confectionery is not an years of experience and more consumers to know,
essential commodity abundant workforce to create invest in more modern
2. People are increasingly new healthy food for customers machines to create more
paying attention to their who care about health quality products, limit
health, eating more clean - Confectionery is a seasonal customers from buying
food item, with a hot summer imported confectionery when
3. The State continues to climate, people will consume the State reduces tax.
implement AFTA's less confectionery, but - Overcoming the weakness is
commitment to reduce HAIHACO with reasonable that there are no salty bakery
confectionery import tax to prices will be an advantage to products to attract customers
0%, making domestic attract a number of customers who are interested in health
confectionery fierce demand in the summer and limit the consumption of
competition with compared to other brands. sweets
confectionery imported from - Large scale and high cost
Asian countries. price will help the company
4. Confectionery is a less volatile, maintain stable
seasonal product production when raw material
5. Volatility in raw material prices fluctuate.
prices
6. About the exchange rate

6. Recommendations to make use of strengths and opportunities to overcome

6.1 weaknesses and minimize threats and achieve business’s objectives
Due to the lack of salty bakery products, HAIHACO can produce new products filled with
sandwich meat, beef burgers, salted egg spreads, and so on. People care more about health, so
HAIHACO can use healthy ingredients like diet sugar, healthy oats, whole grains, brown rice and rye to
make ingredients for their products coming soon. This helps the company to achieve the goal of
maintaining its brand in the market, stable development, and striving for a growth rate of 5-30% in the
following years.
6.2 make use of strengths and opportunities to overcome weaknesses
Hai Ha Confectionery Joint Stock Company has a large scale and a lot of capital, and an abundant
workforce, so the company needs to pay more attention to its packaging to be more luxurious and
beautiful. For example: instead of a normal rectangular paper box can make another shape such as a
 cylinder, a heart shape, more unique than the simulation of bags, suitcases, gift boxes and instead of
paper, it will be made of iron, plastic, aluminum. Take the time to learn the customs and practices of
export markets to produce products that are loved and received by everyone, thereby gradually asserting
their name in the international market.
6.3 make use of strengths and opportunities to minimize threats
Already a high-quality Vietnamese product with an affordable price, the domestic confectionery market
still has a lot of potential. HAIHACO needs to promote more advertising such as 1-2 annual discount
programs; There are many stalls to try products in supermarkets and large markets; Video ads play on
TV, YouTube, instagram and facebook; put advertising panels in central positions, gathering many
people. This helps consumers to pay more attention and to know HAIHACO to limit customers buying
foreign confectionery when the import tax is reduced. And when the summer is hot, people consume
less confectionery than HAIHACO will attract more customers in demand in the summer than other
brands.
6.4 make use of strengths and opportunities to achieve business’s objectives
With the advantage of being an abundant source of labor, development opportunities
domestically and internationally, HAIHACO needs to increase annual confectionery output to meet
domestic and export demand in order to achieve the goal of promoting export activities, trade promotion,
opening new export markets, stabilizing old markets.

IV. Reference List

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