Politcal Factors

• Government Policies lack supports for self driving cars

• Advancing Technology and promote Smart civilisations and environmental regulations challenge, 

• Tax difficulty 

Economic Factors

• Only target small segment of customers (with high income) in Vietnam - affordability of middle economic groups is not high

• Can save time for driver and bring convenience for customers

• Require many maintenance and other fees

Social Factors

• Conflict with Vietnamese Culture (Vietnamese tend to be more reckless while driving)

• Minimise Traffic Congestion (but requires majority of drivers to be well-behaved)

• Take time to adapt

Technological Factors

• Provide opportunities for the company

• Internet Connection are required and Maps are not always support remoted areas of Vietnam

• Only fitted to well manufactured cities, need improvements to adapt to Vietnam

• Expensive and hard to fix 

• Vulnerable to Hacking 

Legal Factors

• Limited insurance 

• Limited Legal Framework to support the product

• If took part in accident, difficult to determine the defendant - No Vietnamese Laws are available for self-driving cars

Environmental Factors

• Reduce carbon emission

• Not many places to refill

• If utilities can reduce overall Carbon emissions 

• Might need more minerals and resources to produces

Political: Government support for exports help Vinamilk expand internationally and reduce export taxes.

Social: More imported dairy products pose challenges, but Vinamilk benefits from strong brand loyalty and consumer trust.

Technological: Advanced production technology and automation ensure efficiency and product quality.

Environmental: Vinamilk owns 12 dairy farms and is expanding sustainable farming. Climate change may impact production.

Currently, only a few suppliers can participate in the supply chain of auto manufacturers and assemblers in Vietnam.

The number of Vietnamese suppliers in the auto industry is too small compared to Thailand. Thailand has about 700 tier 1 suppliers. Meanwhile, Vietnam has less than 100. Thailand has about 1,700 tier 2 and 3 suppliers, while Vietnam has less than 150.

Auto parts and components produced in Vietnam are mainly labor-intensive parts with simple technology such as: glass, tubes, tires, etc.

2018 is the first year according to the roadmap, cars imported from ASEAN will be exempt from import duties. However, with its weak production capacity, it can be seen that Vietnam benefits very little in the supply and production chain of car manufacturers in the region.

In particular, manufacturers are tending to reduce CKD production (100% imported components) and switch to importing complete units from other countries. Hope only stops at two late-maturing manufacturers, Kia and Hyundai of Korea. These manufacturers are also only producing and consuming in the Vietnamese market.(KTSG Online) - Of the 46 suppliers in Vietnam for the Toyota Vietnam joint venture, there are only 6 Vietnamese suppliers. This auto joint venture said it is continuing to increase the localization rate and support the development of domestic suppliers.

Participating in the 2nd International Exhibition on Supporting Industries and Manufacturing in Vietnam (VIMEXPO 2021) opened on December 15 at the International Exhibition Center I.C.E, Friendship Cultural Palace (Hanoi), Toyota Vietnam's booth displayed localized spare parts and combined with displaying products from suppliers.This Japanese automaker believes that participating in this exhibition demonstrates Toyota's efforts to increase the localization rate and support the development of Vietnamese suppliers as well as its commitment to accompany the development of the Vietnamese automobile and supporting industries.

This activity is part of Toyota's efforts to increase the localization rate and develop a network of domestic suppliers. Previously, within the framework of the Cooperation Project to support domestic enterprises in the supporting industry sector with the Department of Industry (Ministry of Industry and Trade), Toyota participated in supporting training for supporting industry enterprises under the Vietnamese Supplier Development Program in the fields of automobiles, electronics, and mechanics in October 2021. This joint venture also organized a field trip for 20 supporting enterprises at 2 domestic suppliers last November.

During more than 26 years of operation, Toyota Vietnam has recorded a list of 46 suppliers with a total of over 720 localized products of all kinds, including 6 Vietnamese suppliers.

This joint venture believes that, for Toyota Vietnam, promoting localization is not simply about increasing the number of Vietnamese suppliers, but more importantly, improving the capacity and quality of suppliers, thereby reducing production costs and increasing competitiveness.

Toyota Vietnam has been searching for potential suppliers and connecting with businesses operating in Vietnam, sharing experiences in developing suppliers, introducing supplier models that Toyota has supported for other component suppliers to learn from, thereby gradually building a supply chain in the supporting industry, improving the capacity of domestic suppliers.

In addition to directly supporting suppliers, Toyota has also coordinated with Hanoi University of Science and Technology to organize the "Monozukuri" program (Secrets to success in production and business) in the period of 2005 - 2019 to support businesses in improving labor productivity and production and business efficiency, contributing to the development of human resources for Vietnam.

The program has successfully organized 166 training courses for nearly 2,000 students from nearly 200 businesses and students. In addition, the program has implemented pilot improvement models at Vietnam Precision Industry Co., Ltd. I, LeGroup Corporation, Woodsland Joint Stock Company, HPC Joint Stock Company, EMTC Joint Stock Company, Hino Vietnam Co., Ltd. and Nhat Minh Co., Ltd., helping businesses successfully apply Toyota production methods to production practices and achieve significant progress in production and business management activities.

Since 2020, after many years of receiving professional transfer from Toyota Vietnam, the program continues to be implemented by Hanoi University of Science and Technology

The sales race in recent years has become more intense as companies regularly launch new product lines to the market, with outstanding improvements in design, equipment, safety and competitive prices. In particular, Korean car models such as Hyundai or Kia have inherently had the advantage of youthful and modern design, with a variety of "options" for customers to choose from. It seemed that Toyota's sales "throne" would be threatened, but the Japanese company did not "sit still" but continuously "counterattacked" with new models, improved cars with more youthful designs, more abundant equipment, top-of-the-segment safety as well as adjusting prices and preferential policies for strategic models. Flexibility in strategic direction has helped Toyota protect its No. 1 position in the Vietnamese passenger car market in the first 6 months of the year. According to sales reports from the Vietnam Automobile Manufacturers Association (VAMA), VinFast and TC Motor - the unit assembling and distributing Hyundai cars in Vietnam, by the end of the first 11 months of 2022, Vietnamese people had consumed 459,871 cars of all kinds.

Compared to the same period in 2021, car consumption in 2022 is forecast to reach a record 500,000 cars after December 2022 ends, an increase of about 15 - 20% compared to the previous year. This figure does not include sales of brands such as Mercedes-Benz, Audi, Jaguar, Land Rover, Subaru, MG...

Among the brands present in the Vietnamese market, Japanese car company Toyota is leading with nearly 81,500 vehicles delivered to Vietnamese customers in 11 months of 2022, compared to the same period in 2021, the number of cars sold by this Japanese car company has increased by 48%.

With this result, Toyota is creating a sales gap of nearly 9,500 vehicles compared to its competitor in second place in the market - Hyundai with sales of 72,037 vehicles. While the sales period of 2022 is about to end, this gap is considered difficult to be leveled.

In recent months, Toyota's car sales have often reached over 8,000 vehicles/month, while Hyundai's average sales have only reached 6,500 vehicles/month.

In 2022, Toyota had a number of breakthrough "trump cards" in terms of sales, including the Toyota Corolla Cross hybrid gasoline-electric high-chassis vehicle. With sales after 11 months reaching 18,994 vehicles, the Toyota Corolla Cross is only behind the best-selling sedan Toyota Vios.Toyota Vietnam Automobile Company officially announced its business results and outstanding activities in 2024. These are remarkable results, demonstrating efforts to promote production and business activities, while actively contributing to the community in many fields.

1. Toyota's operating results in 2024

In terms of sales, Toyota Vietnam's sales reached 68,128 vehicles in 2024 (including Lexus), bringing the total cumulative sales to over 984,000 vehicles. In terms of production, Toyota shipped 27,884 vehicles, bringing the cumulative output to nearly 700,000 vehicles.

In terms of services, Toyota welcomed more than 1.9 million customers, an increase of 9% compared to the results in 2023, bringing the total number of vehicles using Toyota's genuine accumulated services to nearly 20 million.

Toyota's export of components and spare parts reached a revenue of more than 64.8 million USD, with accumulated revenue reaching more than 928 million USD. Regarding state budget contributions, Toyota Vietnam contributed more than 884 million USD in 2024. The total accumulated state budget contributions reached more than 13.9 billion USD.In particular, Toyota's flexibility was demonstrated in its price adjustment policy in early 2024. Specifically, from March 1, 2024, Toyota Vietnam adjusted the listed prices of popular car models including Vios from 21 - 47 million VND (depending on the version), Veloz Cross from 20 - 38 million VND and Hilux with a reduction of nearly 200 million VND. Previously, the company also announced new prices for Raize, Yaris Cross and Fortuner in early January. Some experts commented that in the context of the general market hovering around the "bottom", the car company's adjustment of the listed price is quite a brave and risky action.

Affordability: High costs may deter buyers; Toyota must balance price and value.

Mobility Trends: Ride-sharing and MaaS are growing, reducing private car ownership.

User Experience: Seamless AI, intuitive interfaces, and personalization are key.

Vietnam Market: Prices (400M–1B VND) are reasonable and affordable for many.

2. Competitors

Traditional Automakers – Tesla, Ford, and Mercedes-Benz or in Vietnam the potential like Tesla also investing in self-driving technology.

Market Differentiation – Toyota needs to leverage its strong reputation for reliability, safety, and hybrid technology to stand out.

3. Suppliers

AI & Sensor Providers – Partnerships with NVIDIA, Mobileye, and Denso for AI chips, LiDAR, and camera sensors.

Battery & Semiconductor Shortages – Global chip supply chain issues could impact production.

Software Integration – Need for advanced machine learning, cybersecurity, and OTA (over-the-air) updates.

4. Government & Regulatory Bodies

Autonomous Vehicle Regulations – Compliance with U.S. (NHTSA), EU, and Asian driving laws for self-driving cars.

Cybersecurity & Data Privacy – Ensuring protection of user data from hacking and AI-related risks.

Road Infrastructure Readiness – Self-driving efficiency depends on smart city integration and V2X (Vehicle-to-Everything) communication.

5.Toyota's self-driving car ecosystem relies on key intermediaries:

Dealerships: Showcase technology, offer test drives, and provide customer support.

Tech Partners: Collaborate on AI, sensors, and software for reliable autonomous systems.

Advertising Agencies: Promote self-driving benefits through digital and traditional media.

Financial Institutions: Provide loans, leases, and subscription-based ownership models.

Ride-Sharing Services: Partner with Uber, Lyft, and Toyota e-Palette for mobility solutions.

Regulatory Bodies: Ensure compliance with safety laws and integrate AVs into smart cities.

-Currently, Bông Biêng milk tea is subject to a 10% value-added tax (VAT), which is the standard tax rate and is considered reasonable in the context of Vietnam

Social Factors

• Healthy consumption trends: Consumers are switching to low-sugar, low-fat, natural drinks. Bong Bieng milk tea with natural flower tea ingredients fits this trend.

• Milk tea drinking habits of young people: Milk tea is still one of the most popular drinks in Vietnam, especially with Gen Z and Millennials. 

• Experience and lifestyle: Consumers are not only interested in taste but also pay attention to packaging design, shop space and brand uniqueness.

• The influence of media and social networks: Milk tea brands regularly organize promotions and online interactive events to attract and retain young customers.

Environmental Factors

• Towards sustainability: The trend of using paper cups and bio-based straws instead of plastic is a plus for Bong Bieng as customers are increasingly concerned about environmental issues.

• Weather impact: The product uses raw materials from natural flowers, so climate and season can affect the supply.

Economic

• Spending, income, taxes, salary, product prices are basic economic requirements that Bongbieng faces.

• These factors may change, causing negative effects on their product and service marketing. To increase customers, Bongbieng needs to be ready to upgrade their food and raw materials more advanced.

• The cost of raw materials, premises, resources, decoration costs and shop design, material and marketing muscles are also influenced by global economy, product costs and customer base. If bongbieng cut human resources and product quality to preserve income can affect customer service, productivity and customer satisfaction. From there, it affects Bongbieng revenue. Understanding the economic context will help Bongbieng more profound about the market's ability to spend.

Company:

• Bông Biêng's internal environment includes its management, employees, and overall company culture.

• Key factors within the company are its innovation capabilities (especially in developing unique floral-infused flavors), its operational efficiency, and its ability to maintain consistent product quality.

• The company's ability to respond to social media controversy is a very important internal factor.

Suppliers:

• Suppliers are crucial for sourcing high-quality ingredients, including:

+ Tea leaves (various types).

+ Milk (fresh or powdered).

+ Floral extracts and essences.

+ Toppings (pearls, jellies, etc.).

+ Packaging materials.

• Maintaining strong relationships with reliable suppliers is essential for consistent product quality and availability.

• Any disruption in the supply chain of the floral essences, or the tea, would greatly affect the business.

Marketing Intermediaries:

• These include:

+ Social media platforms (Facebook, Instagram, TikTok) for advertising and engagement.

+ Food delivery platforms (GrabFood, ShopeeFood, Baemin) for distribution.

Influencers and bloggers for product promotion.

+ Local advertising agencies.

• The effectiveness of these intermediaries in reaching the target audience directly impacts Bông Biêng's sales and brand awareness.

Competitors:

• The milk tea market in Vietnam is highly competitive, with:

+ Established international brands (Gong Cha, Koi Thé, Ding Tea).

+ Popular local brands (TocoToco).

+ Numerous smaller, independent milk tea shops.

+ Other businesses that offer floral flavored drinks.

• Bông Biêng must differentiate itself by emphasizing its unique floral infusions and maintain a competitive edge through innovation and quality.

Publics:

• This includes various groups that can influence Bông Biêng's reputation:

+ Media outlets (online and offline).

+ Consumer advocacy groups.

+ Local communities.

+ Social media users (who can amplify both positive and negative feedback).

+ The general public opinion of if the company copies other brands.

• Managing public relations and addressing concerns effectively are crucial for maintaining a positive brand image.

Customers:

• Bông Biêng's target customers are primarily young, trend-conscious individuals who appreciate unique and aesthetically pleasing beverages.

• Key customer factors include:

+ Taste preferences (floral flavors).

+ Price sensitivity.

+ Social media influence.

+ Desire for quality and novelty.

+ The ability for the company to retain customers is very important, due to high competition.

By understanding and effectively managing these microenvironmental factors, Bông Biêng Milktea can enhance its competitive position and achieve sustainable growth in the dynamic Vietnamese market.

1. Marketing Towards Investors

• Why make investments towards Toyota's Electric vehicle division?

The develop market isn't in a high competition yet. (No investments in Tesla Vietnam, No investments in Nissan Electric).

Open a new market to Vietnam automobile industry.

• Why will investors benefit from the investments in Toyota Vietnam?

More opportunity to gain than loss from investments.

No competitors have invested deeply into the market yet.

• How will the investors' money be used?

To form the infrastructure to accommodate the consumers willing to purchase the vehicles.

One part can become the money for the incentives to customers who want to purchase the vehicles.

2. Implementation in Vietnam.

• Installation of infrastructure.

Adapt strategies of Vinfast and Tesla (Vehicles with high technology and efficiency).

Building infrastructures to boost the efficiency of usability (Charging stations and SOS battery service).

• Investments in production

  convenience and efficiency.

Use the factories Toyota already has to mass produce the vehicles (just like their gas counterparts).

• Governmental support with policies.

Use the Europpean strategies in governmental powers (give the incentives to people for purchasing a electric vehicle).

3. Marketing Towards Customers.

• Set the core values as to why consumers should purchase an electric car from Toyota.

Let the customers know they are making a wise decision on their purchase of an electric vehicle (environmentally friendly, high technology efficiency).

• Why it'll be beneficial to purchase an electric car from Toyota.

Toyota infrastructures will give benefits to their electric customers (free parking in Toyota built garage parking lots, Access to special services for Toyota Electric vehicles, better usability in terms of price for using an electric vehicle).

As one of Vietnam’s largest dairy producers, Vinamilk has a strong supply chain, brand recognition, and financial resources to support nut milk production.

Its expertise in dairy allows for efficient manufacturing and distribution.

Internal Capabilities: Vinamilk can leverage its experience to scale nut milk production and market it effectively.

Impact on Customers: Its trusted reputation helps attract consumers, especially in emerging markets where plant-based milk is still growing.

2. Suppliers

Vinamilk's suppliers provide raw materials such as nuts, plant-based ingredients, packaging, and additives.

Quality and Sourcing: Reliable suppliers ensure high-quality ingredients, preventing production delays and maintaining product standards.

Ethical Sourcing: Consumers value sustainability, so suppliers must meet ethical and environmental standards. -

Impact on Customers: Sustainable partnerships help Vinamilk position its nut milk as premium and eco-friendly, while supply chain or ethical issues could harm its reputation.

3. Marketing Intermediaries

Vinamilk distributes nut milk through retailers, online platforms, wholesalers, and distributors.

• Distribution Channels: The product must be available in supermarkets, health food stores, and e-commerce platforms, with the possibility of direct-to-consumer delivery.

• Retail Partnerships: Strong relationships with major retailers improve product visibility, shelf placement, and sales.

• Impact on Customers: Convenient availability and effective marketing strategies increase customer purchases and overall product success.

4 Competitors Vinamilk faces competition from established plant-based milk brands like Almond Breeze and Oatly, as well as dairy companies expanding into this market.

Product Offerings: Vinamilk can stand out by emphasizing quality, flavor, pricing, or unique features like organic or fortified options.

Price and Value Proposition: To compete, Vinamilk must ensure its nut milk offers superior quality, taste, or health benefits to justify its pricing.

Impact on Customers: With many alternatives available, Vinamilk must differentiate through innovation in packaging, flavors, or added nutrients.

5.Social

Responsibility: Consumers who prioritize sustainability, animal welfare, and health often gravitate toward plant-based milks. Groups such as environmental organizations or animal rights advocates might closely examine Vinamilk's sourcing methods, environmental impact, and ingredients. A positive public image regarding responsible sourcing and sustainable production practices can enhance the brand's reputation.

Regulations: Government bodies and health organizations may set rules regarding the labeling of plant-based milk, especially in relation to nutritional claims (e.g., claims of being calcium-enriched). To avoid legal and reputational risks, Vinamilk must ensure that its nut milk complies with both local and international food regulations.

Impact on Customers: Effective public relations, such as collaborations with environmental groups or media campaigns emphasizing ethical practices, can increase Vinamilk's attractiveness to socially conscious consumers. Conversely, negative press regarding its ingredients or sourcing methods could damage its public image and negatively affect sales.

6.Customers are the most significant factor influencing Vinamilk's offerings. Key considerations include:

Health Trends: Increased demand for dairy-free, low-sugar, nutrient-rich plant-based milks.

Ethical Concerns: Customers seek transparency in sourcing and sustainability.

Taste and Quality: Plant-based milks must match or exceed dairy milk in taste and texture.

Pricing Sensitivity: A balance between premium quality and affordable pricing is essential, especially in growing markets like Vietnam.

Customer Impact: Listening to feedback is crucial for adapting to changing preferences.

Vinamilk can capture a larger share of the plant-based milk market by offering healthy, ethical, and reasonably priced products backed by strong marketing.