Summer 2023 01 Globalization and Global Supply Chain Content 02 An example
03 Where are we?
04 Global integration Globalization and Global Supply Chain Globalization Globalization of markets Moving away from an economic system in which national markets are distinct entities, isolated by Globalization trade barriers and barriers of distance, time, and culture, and toward a system in which national Trend away from distinct markets are merging into one global market. national economic units and toward one huge global Globalization of production market. Trend by individual firms to disperse parts of their productive processes to different locations around the globe to take advantage of differences in cost and quality of
W. L. Hill, C. and M. Hult, G., 2017. Global Business Today. 10th ed. New York: McGraw-Hill Education, pp.6-7. Global Supply Chain Tier 2 Supplier Tier 1 Supplier Manufacturer Distributor Retailer Customer (Local) (Domestic) (Domestic) (Domestic) (Domestic) (Local)
Chopra, S., Meindl, P. and Vir Kalra, D., 2016. Supply Chain Management: Strategy, Planning, and Operation. 6th ed. Pearson India Education Services Pvt. Ltd, p.3. An example • CÔNG TY TNHH XUẤT NHẬP KHẨU XUÂN BẰNG TRƯỜNG XUAN BANG TRUONG IMPORT EXPORT CO., LTD • MST/ Tax code: 2400789720 • Địa chỉ: thôn Đầm Lác, Xã Việt Ngọc, Huyện Tân Yên, Tỉnh Bắc Giang Address: Dam Lac village, Viet Ngoc Commune, Tan Yen District, Bac Giang Province “Make” Decision
Bến Tre Province “Buy” Decision
Bắc Giang Province
> “Make” Decision “Buy” Decision • Operating Expenses • Cost of goods sold - Rental • Operating Expenses - Salaries - Rental • Transportation cost: - Salaries - Ben Tre -> China: By land • Transportation cost: - Ben Tre -> India: By sea - Indonesia -> Bac Giang: Sea + Land - Bac Giang-> China: By land - Bac Giang-> India: By sea Where are we ? a. SWOT of Vietnam in Global Supply Chain
Strengths • Stable political system Weaknesses • Safe and friendly environment • Low-skilled labor • Effectively control COVID19 • Complicated laws and • Low labor cost legal procedures • Lack of infrastructure for logistics Opportunities • Bigger markets • More jobs Threats • Benefit other related industries • More competitions, both in quantity and quality b. Seaport system planning The Container Port Performance Index (CPPI) c. Build more high-tech IZ d. Improve the capacity of human resources Global integration an organization for liberalizing trade
➢ Official Website: https://www.wto.org
a forum for ➢ Website of Vietnam: https://wtocenter.vn
The World a system governments Trade operators of to negotiate ➢ Most-favoured-nation (MFN): treating other people Organization trade rules trade (WTO) equally. Under the WTO agreements, countries cannot agreements normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the a place for same for all other WTO members. them to settle E.g: Apply the same import/ export rates to all MFN trade disputes ➢ Vietnam joint WTO on 11 January 2007 ➢ The aims and purposes of ASEAN 1. To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations; 2. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations ➢ Official Website: https://asean.org Charter; 3. To promote active collaboration and mutual assistance on matters ➢ Website of Vietnam: https://aecvcci.vn of common interest in the economic, social, cultural, technical, scientific and administrative fields; ➢ Vietnam became A full member of ASEAN 4. To provide assistance to each other in the form of training and on 28 July 1995 research facilities in the educational, professional, technical and administrative spheres; 5. To collaborate more effectively for the greater utilisation of their agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples; 6. To promote Southeast Asian studies; and 7. To maintain close and beneficial cooperation with existing international and regional organisations with similar aims and purposes, and explore all avenues for even closer cooperation among themselves. Vietnam's FTAs as of May 2023 No. FTA Status Parties No. FTA Status Parties FTAs in effect FTA negotiation completed 1 AFTA Effective since 1993 ASEAN 2 ACFTA Effective since 2003 ASEAN, China Negotiations 3 AKFTA Effective since 2007 ASEAN, South Korea Vietnam - commenced in 4 AJCEP Effective since 2008 ASEAN, Japan 16 Vietnam, Israel Israel FTA December 2015, 5 VJEPA Effective since 2009 Vietnam, Japan completed in April 2023 6 AIFTA Effective since 2010 ASEAN, India ASEAN, Australia , New FTAs under negotiation 7 AANZFTA Effective since 2010 Zealand Negotiations Vietnam, EFTA 8 VCFTA Effective since 2014 Vietnam, Chile Vietnam - 17 commenced in May (Switzerland, Norway, 9 VKFTA Effective since 2015 Vietnam, South Korea EFTA FTA 2012 Iceland, Liechtenstein) Vietnam, Russia, Belarus, VN – EAEU Negotiations 10 Effective since 2016 Amenia, Kazakhstan, ASEAN – FTA 18 commenced in ASEAN, Canada Kyrgyzstan Canada FTA November 2021 Vietnam, Canada, Mexico, CPTPP (previoEffective since 30/12/2018, Vietnam – In the process of Vietnam, United Arab Peru, Chile, New Zealand, 19 11 usly knowncame into effect in UAE FTA initiating negotiations Emirates (UAE) Australia, Japan, Singapore, as TPP) Vietnam since 14/01/2019 Brunei, Malaysia Effective in Hong Kong (China), Laos, Myanmar, 12 AHKFTA ASEAN, Hongkong (China) Thailands, Singapore and Source: https://trungtamwto.vn/chuyen- Vietnam since 11/06/2019 de/12065-tong-hop-cac-fta-cua-viet- Effective since August 01, 13 EVFTA 2020 Vietnam, EU (27 members) nam-tinh-den-thang-112018 Effective since May 01, 14 UKVFTA Vietnam, The UK 2021 Effective since January 01, ASEAN, China, Korea, Japan, 15 RCEP 2022 Australia, New Zealand Thank you
