Motivation to international business
Prediction of Market in future:
Domestic market: VOSCO will still be the biggest shipping company especially in bulk and dry bulk cargo transportation while continuing to develop oil and container shipping
International market: VOSCO tend to be more active and concentrate on seaborne trade within Asian Region (such as Korea, China, Indonesia…) as well as furthering other freight routes all over the world (Africa, Europe and America).
Motivation why VOSCO want to expand their market to foreign market because
Currently the demand of shipping in Vietnam is limited and just holds a minor part. So VOSCO certainly will need to enter foreign markets to get more profit and customers (sources of cargo-supply in long term) and utilize the fleet capacity (bulk, tanker and container ships) as well as reduce the inventory cost and promote economies of scale.
In the near future demand for import-export from regional countries and the amount of cargo in international shipping expects to rise tremendously in the near future. According to UNDESA 2012, worldwide commercial good transported by sea will increase by 36% in 2020 and double the gross tonnage by 2033, especially bulk cargo still remain as the major – which is also the strength of VOSCO fleet.
The barriers to entrance foreign market are reduced or eliminated when Vietnam joined ASEAN and WTO recently: VN has been a member of WTO since 2007, commercial relations with over 220 countries and territories, sign 88 bilateral trade agreements, establish 7 FTA with 15 countries. So removes significantly trade barriers and is good condition for Vietnamese companies, specifically VOSCO to enter foreign markets.
VOSCO has a lot of good competitive advantages to develop further like: low-cost and skilled crew (seafarers), good related and supporting system such as shipbuilding industry, ports… (VOSCO is a member of VINALINE)… Moreover the company can manage and exploit their own fleets therefore positively seek to
Domestic market: VOSCO will still be the biggest shipping company especially in bulk and dry bulk cargo transportation while continuing to develop oil and container shipping
International market: VOSCO tend to be more active and concentrate on seaborne trade within Asian Region (such as Korea, China, Indonesia…) as well as furthering other freight routes all over the world (Africa, Europe and America).
Motivation why VOSCO want to expand their market to foreign market because
Currently the demand of shipping in Vietnam is limited and just holds a minor part. So VOSCO certainly will need to enter foreign markets to get more profit and customers (sources of cargo-supply in long term) and utilize the fleet capacity (bulk, tanker and container ships) as well as reduce the inventory cost and promote economies of scale.
In the near future demand for import-export from regional countries and the amount of cargo in international shipping expects to rise tremendously in the near future. According to UNDESA 2012, worldwide commercial good transported by sea will increase by 36% in 2020 and double the gross tonnage by 2033, especially bulk cargo still remain as the major – which is also the strength of VOSCO fleet.
The barriers to entrance foreign market are reduced or eliminated when Vietnam joined ASEAN and WTO recently: VN has been a member of WTO since 2007, commercial relations with over 220 countries and territories, sign 88 bilateral trade agreements, establish 7 FTA with 15 countries. So removes significantly trade barriers and is good condition for Vietnamese companies, specifically VOSCO to enter foreign markets.
VOSCO has a lot of good competitive advantages to develop further like: low-cost and skilled crew (seafarers), good related and supporting system such as shipbuilding industry, ports… (VOSCO is a member of VINALINE)… Moreover the company can manage and exploit their own fleets therefore positively seek to