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This document provides an analysis of Viet-Y Steel Joint Stock Company (VISCO). It includes an overview of VISCO, its mission, core values, and vision/strategy. It then analyzes the steel industry using PESTLE and Porter's Five Forces frameworks. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors impacting the industry. Porter's Five Forces analyzes competitive rivalry, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. The document concludes the macro factors generally have positive effects on steel industry development.
This document provides an analysis of Viet-Y Steel Joint Stock Company (VISCO). It includes an overview of VISCO, its mission, core values, and vision/strategy. It then analyzes the steel industry using PESTLE and Porter's Five Forces frameworks. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors impacting the industry. Porter's Five Forces analyzes competitive rivalry, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. The document concludes the macro factors generally have positive effects on steel industry development.
This document provides an analysis of Viet-Y Steel Joint Stock Company (VISCO). It includes an overview of VISCO, its mission, core values, and vision/strategy. It then analyzes the steel industry using PESTLE and Porter's Five Forces frameworks. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors impacting the industry. Porter's Five Forces analyzes competitive rivalry, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. The document concludes the macro factors generally have positive effects on steel industry development.
Phạm Thị Thu Huyền Dương Hồng Trang Chế Thị Thu Thủy Mai Thị Mỹ 1. GENERAL INTRODUCTION -Legal name: Viet Y Steel Joint Stock Company -International name: Vietnam - Itaty Steel JSC - Abbreviation: VISCO - Head office: Pho Noi A Industrial Park, Xa Giai Pham, Yen My District, Hung Yen Province - Board of Directors: Mr. Yoichi Hoshino (General Director) - Phone: + 84- (0) 321-94.24.27/ Fax: + 84- (0) 321-94.22.26 - Website:www.vis.com.vn - In December 2006, VIS stock code was officially published on Ho Chi Minh Stock Exchange ( HOSE), as a result of increased business and dividend payment, VIS became the prestige stock code of domestic and foreign investors on HOSE such as Thai Hung Joint Stock Company, Kyoei Steel Corporation - Japan ... -Viet Y Steel Joint Stock Company was established on the basis of equitizing a part of state-owned enterprises, namely Viet Y Steel Factory of Song Da 12 Company - Song Da Corporation. On February 20, 2004, the Company was granted license by Hung Yen Department of Planning and Investment for the first time on February 20, 2004, changed for the 6th time on August 29, 2006 and officially went into operating in the form of a joint stock company. 2. MISSION - Absorbed the experiences from SongDa Holdings more than 50 years in construction industry Vietnam Italy Steel company ‘s guide line is always for the interest of customers, shareholeders, employees, steel industry and the country 3. CORE VALUE - Intergrating customers’ interests into our success. - Opportunities and awards based on individual’s effort and contribution. - A working attitude of VISCO is expressed by continuing performance and determination to achieve common goals. - Adhering to ethics, group/enterprise and interests - the fundamental policy of VISCO. - Forefront and innovative thinking, experiencing in action - the key of our competition 4. VISION- STRATEGY Vietnam Italy Steel JSC., aspires to become a reputation construction steel manufacturing and trading company within region and over the world: - Developing Industrial production be our key target. - Maintaining the leading enterprise's competitiveness position. - Promoting interbranch investment projects. -Training and educating human resource meeting with global standards and qualifications. - Strongly exploiting oversea market. - Ensuring competitiveness ability within nation and the region 5. INDUSTRY GROUPS: Materials / materials - Producing and trading in steel products with Vietnamese - Italian steel brand (VISCO). - Producing, trading, importing and exporting raw materials, equipment and spare parts for steel industry. STRATEGY ANALYSIS ( PESTLE ANALYSIS) POLITICS: -Stable political situation => to attract foreign investment and encourage domestic investment (included the steel industry) -Steel is one of ten priority industry in the period of 2007-2010. Decision of Government on January 31, 2013 about Planning on development of steel production and distribution system in the period of 2020 – 2025, the government set out a detailed investment plan and gave top priority to the development of the steel industry into a strong economic sector. -According to the tariff commitments of signed FTAs, the average import tax rate of steel and steel products into Vietnam has only fluctuated at 0.69% - 7.55% throughout the period between 2015 and 2018 and will continue to decrease in the next period => the competitive pressure for Vietnamese steel enterprises. -The government have policies to protect and support the steel industry such as applying anti-dumping tax, self-defense tax for cheap steel products imported from China, Indonesia… => increasing competitiveness for the domestic steel industry. -Government bureaucracy, the attitude of unprofessional behavior of state employees => makes difficult for businesses -The State has more strict policies on waste treatment and steel scrap imports to protect the environment => increasing costs for businesses ECONOMY -According to the forecast, the steel industry tends to grow wellfrom now to 2020. - Due to the capital-intensive nature of the industry, the demand for debt in the industry is very high in the asset structure. Interest rates of banks tend to decrease in 2018 => steel industry has conditions to mobilize capital to implement business strategies. - In 2018, the exchange rate (VND / USD) was high, the unemployment rate was low at 2.2%, the inflation rate was stable (3-3.5%), GDP growth rate reached to 7.08%, the highest figure since 2011 => Economic development => the demand for office and building construction increased => the steel demand increased. - Vietnam's steel industry is influenced by the US-China trade war. + The fact that Chinese steel cannot be exported to the US will be transferred to other countries, included Vietnam. +US Customs Agency will collect anti-dumping tax of 199.76% and anti-subsidy tax of 256.44% on steel of Vietnam which has origination from China. Materials are imported from China (about 70-80%) and Vietnam only performs processing. SOCIAL/ CULTURAL - Vietnam has a young population structure and in the working age => labor supply is abundant => the demand for construction steel increases (housing demand increases). - The productivity of Vietnamese workers is still low => to effect on the progress production. - The process of urbanization in Vietnam increases => the demand for housing and infrastructure construction increases=> the demand for construction steel increases. ENVIRONMENTAL FACTOR - The import of raw materials for the steel industry accounts for 70-80%, Vietnam seems to only play a processing role for foreign businesses and becomes the world's landfill because the steel industry's waste affects serious environment => costs for waste disposal increased. - Exhaustion of resources (Iron, Chromium...) => rising input costs => reducing competitiveness of domestic enterprises. - Climate change and natural disasters often occur => the requirement for steel enterprises must produce high quality production . - Geographic location:Located in a strategic geographical position in Southeast Asia, the transportation by sea help to save costs for firms TECHNOLOGY - Domestic technology level is weak, only investing in small lines, old electric furnace technology, fuel consumption => high cost. - To step up investing, researching and technology development to reduce the amount of emissions generated in steel production, increase productivity, reduce costs and improve product quality. - Motivation from technology revolution 4.0: + Applying automation processes in production => increase quality production, save labor costs. + There are many channels to communicate and promote products to consumers: the company's official website, on television... =>high communication efficiency. LEGAL -Labor Law, Competition Law: more and more innovated and improved. -Consumer Protection law is promulgated and the Government use measures to protect their rights: + Price stabilization => reduce revenue of enterprises. + Anti-counterfeiting (must to strong sanctions, strict examination and application of strict handling measures for violations) => ensure the interests of genuine businesses as well as their competitiveness. - Environmental regulations (standards for waste in production, annual discharge...) => increase costs for processing production waste. CONCLUSION: In general, macro factors have positive effects on the development of the steel industry ANALYZING 5 COMPETITIVE PRESSURES BASED ON THE M.PORTER MODEL 1. COMPETITIVE FORCE: Rivalry Among Existing Firm - Growth rate of steel industry in 2017: 20% - In 2017, total steel imports fell by 15%, exports by 20-25% brought about US $3 billion, production scale was at the top of Southeast Asia, but production output was only 50-60%, however, Supply has surpassed the demand. - Most of steel products as well as input materials are mainly imported from abroad so the steel industry still has many development chance. - Severe competition for cheap steel imported from China. - There are quite a number of enterprises in the industry, however, the market share is divided by product groups but mainly belongs to big companies such as: Hoa Phat Group, Group of Lotus, Fomosa, Ton Dong A, Ton Phuong Nam , .. - Lines for steel production are specialized and difficult to switch to producing other products. => Competitiveness among enterprises in the industry is High 2. COMPETITIVE FORCE:Threat Of New Entants - New steel enterprises that want to establish must be approved by the Ministry of Industry and Trade and overcome the criteria of minimum capacity, emissions, environment, ... => barriers from the government - Joining the industry requires a huge amount of investment and if it does not achieve high profits, it is difficult to meet the valuable investments for sustainable development. - Economies of scale can help reduce fixed costs and product costs. New businesses' ability to join the industry is very difficult 3. COMPETITIVE FORCE:Threat Of Substitute Products - In the market, there is no basic material that can be a perfect substitute for steel, => the demand for steel still exists => the risk from alternative products is not worrisome. 4. COMPETITIVE FORCE: Bargaining Power of Buyers. - The number of counterfeit goods flooded the market and cheap steel products imported from China, Japan and Korea made buyers more choices in buying behavior. Most buyers are not too focused on steel durability but they only care about their affordable products pressure from customers is very high. 5. COMPETITIVE FORCE: Bargaining Power of Suppliers The import of up to 70-80% of input materials is considered a huge difficulty of the steel industry in controlling input costs as well as proactively source of raw materials, however, import partners of enterprises quite diverse: Japan, Thailand, Korea, Taiwan, etc. Nam Vietnamese businesses are not too dependent on suppliers The pressure from suppliers is not great. CONCLUSION: General, the steel industry still has high growth potential. However, it is necessary for many companies to invest in machinery and technology in order to increase the competitiveness of their products compared to the imported cheap products