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GRADUATION THESIS
Major: Business English
ABSTRACT......................................................................................................................................v
List of Abbreviations..........................................................................................................................vi
List of Figures.....................................................................................................................................vi
List of Table......................................................................................................................................vii
INTRODUCTION............................................................................................................................1
1. Research Rationale...........................................................................................................1
4. Research methods.............................................................................................................2
Literature review:...............................................................................................................................2
Defining negotiation:..................................................................................................................2
Negotiation Strategy:..................................................................................................................3
Studies in Vietnam.....................................................................................................................4
ii
1.2.5. The influence of language and cultural differences..........................................................8
2.2 The current status of SMEs’ usage of negotiation techniques regarding international trade 31
iii
2.2.1 Negotiation preparation techniques................................................................................31
CHAPTER 3: SOME HIGH EFFICIENT SOLUTIONS FOR FOREIGN TRADE BUSINESS OF VIETNAMESE
ENTERPRISES..............................................................................................................................................49
3.1.2 Create a negotiating position for businesses by supporting the brand promotion..........50
3.2.2. Fully aware of the importance of negotiation and the differences in business culture in
international trade negotiations.........................................................................................................55
Conclusion........................................................................................................................................58
APPENDIX.........................................................................................................................................60
REFERENCES.....................................................................................................................................67
ACKNOWLEDGE
iv
First and foremost, I would like to express my deepest appreciation to the Faculty of
Business English teacher, at Foreign Trade University, who equipped me with knowledge
of the profession and create the most valuable environment during my study here in the
school.
Because this is a topic that requires a lot of practical experience and has not been
implemented in any formal research, this thesis inevitably has some lack of reality or
critical judgment. I am looking forward to receiving the lecturers’ recommendations to
make my thesis better.
ABSTRACT
Small and medium-sized enterprises (SMEs) are usually thought of as the first
supply of economic development and integration in developing countries, as well as
Vietnam. However, in the process of transitioning from a controlled economy to a market-
oriented economy, To achieve success in international business, Vietnamese SME
managers shouldn't solely know how to barter with consumers and sellers from their
nation but conjointly with those from different nations. Comprehensive coaching
programs on basic business skills, therefore, ought to be developed to boost the capability
of Vietnamese SME managers. In the increasing trend of globalization and regional
cooperation, the establishment of economic relations between countries is a necessity. The
processes of linkage and cooperation between countries and organizations in the region
are also taking place in a variety of forms and speeds. In that international business
environment, international trade negotiations take place continuously and the nature and
characteristics of negotiations are also becoming more and more complex. Behind the
success of each negotiation, international trade negotiation techniques play a very
important role. These are the skills and means by which negotiators can build long-term
and effective relationships with their partners, and help both achieve their goals. The more
master the techniques of international trade negotiation, the easier it is for the negotiators
to achieve good negotiation results.
As a student of Foreign Trade University and will be a foreign trade officer in the
future, the author is very interested in the current situation of international commercial
contract negotiation activities of Vietnamese enterprises with foreign countries in general
and with foreign investors. our important partners such as the European Union, ASEAN,
Japan, and the US in particular. And within the scope of a graduation thesis, the author
decided to choose Vietnam SMEs as the subject to study in the position of international
trade negotiation partner with the awareness that Vietnam is an economic area with great
potential for foreign trade. This study aims at identifying factors of negotiation that affect
small and medium-sized enterprises regarding their international success in Vietnam. A
v
research model was developed based on a literature review. The research was conducted
through methods of interviewing and questionnaires. The scope of taking samples carry
out mainly in HaNoi, so the generalized data ability can lead to the wrong judge.
List of Abbreviations
List of Figures
Figure 3. Preparation of the other side’s case separately from their case.................36
vi
Figure 5. Insight of the counterpart’s wants and what they are prepared to agree to.
.......................................................................................................................................... 38
List of Table
vii
INTRODUCTION
1. Research Rationale
Currently, small and medium enterprises account for 96% of enterprises in Vietnam,
but their scale and competitiveness are still weak. Figures from the General Statistics
Office show that in 2015, 39,056 businesses were forced to suspend operations, up 2%
compared to 2014. The reason leading to the decline in business activities of small and
medium-sized enterprises, as assessed by economic experts, is due to fragmented
activities, small scale, outdated technology, and difficult access to markets and capital
sources.; and still limited a leadership capacity, and management capacity. It is worth
noting that the majority of business owners, even those with college and university
education or higher, are not well-trained in business negotiation and partnership
knowledge. ., which has a great influence on strategic planning, business orientation, and
management,
4. Research methods
1
In conducting research activities on this topic, the author has implemented
sociological investigation methods, and in-depth interviews with the actual situation to
have a basis to objectively assess the current state of negotiation activities of Vietnamese
enterprises, thereby synthesizing, analyzing, and predicting. predictions to conclude a
scientific basis for the recommendations of the topic.
Literature review
Defining negotiation:
In the market economy, negotiation is a common phenomenon and plays an
important role in economic development in developing countries. Zohar (2015) defines
negotiation as finding a resolution to conflicts between individuals and teams and sharing
resources in such the simplest way that a win-win state of affairs is achieved. in line with
Diamond State Drew (2014) negotiation involves the breakdown of conflicts of interest
between 2 or additional parties, this resolution is achieved through persistent
communication. Negotiation could be a tool that will be used to produce an honest
relationship with others (Stevens et al., 2018). McGuire (2004) describes negotiation as a
life ability that helps to succeed in a compromise in things wherever their area unit
polarized interests. Viscera (2013) outlined negotiation as a method that leads to a
collective alternative between 2 or additional conflicting and freelance parties. All the
definitions paraphrased on top have 2 keywords common to them. These keywords area
2
unit conflict and determination. Negotiation could be a tool for conflict resolution and so
is double-geared toward reaching a compromise between parties WHO have conflicting
interests.
Negotiation Strategy:
Negotiation strategy involves progressing to address the twin aspects of negotiation
that square measure collaboration and competition (Sollish & Semanik, 2015). This
implies the strategy can address aspects that the parties agree on and with people they
disagree with (Sollish & Semanik, 2015). For a method to be effective, the opinions and
wishes of each party should be arranged blank on the negotiation table (Sollish &
Semanik, 2015). a good treater should verify that broad attainable outcomes are
acceptable to make a good setup.
For businesses, heaps of problems return to the table throughout a negotiation. These
embrace worth, payment terms, deliverables, service levels, quality, support, warranties,
risk assumption, and insurance among others (Sollish & Semanik, 2015). Having known
these, a thought is then carried out to develop a comprehensive course of action (Sollish
3
& Semanik, 2015). A negotiation strategy will outline a strategic objective, take into
account the accessible choices and supply multiple different courses of action.
The best alternative to a negotiated agreement (BATNA) may be a thought that's
very fashionable and helpful within the theory and application of negotiation (Sebenius,
2017). . The data is generally relevant wherever every party to the negotiation prefers its
BATNA to the negotiated deal, this implies that the attractiveness of a party’s town will
considerably influence the acceptance of a negotiated deal (Sebenius, 2017). The main
challenge with the characterization of the BATNA is that the plan notion that this best
difference is received while not the input of the opposite party (Sebenius, 2017). An
opponent apprehends throughout a negotiation that there's BATNA existing difference
that doesn't need a deal and might need negative implications, this applies to domestic and
structure negotiations alike (Sebenius, 2017). So, the existence of town might not
essentially increase a party’s dialogue power, negotiators have become a lot of numerous
and unpitying (Sebenius, 2017).
Studies in Vietnam
In the country, there are several research works such as studies, theses, and several
books such as International Negotiation Techniques, Negotiation Art, and Negotiation in
International Business, but these works are limited to studying theoretical, cultural, or
purely technical aspects
(Đinh Thi Le Trinh et,2014) analyze the relationship between export negotiators'
perception of the partner country's culture and negotiation outcomes. Based on primary
data collected with 60 export negotiators from export enterprises in Can Tho city and by
the PLS estimation method, they have found that negotiators' perceptions of Negotiation
of the partner country's culture have an indirect influence on the negotiation outcome
through the negotiator's perception of the partner's problem-solving approach (PSA) and
the negotiator's PSA. Specifically, the negotiator's perception of Hofetede's (1980)
individualist/collective cultural value (IDV) and the time value (TIME) system in Hall's
(1983) study have an impact positively affect the negotiator's perception of the partner's
PSA. Next, the research results also show that the negotiator's perception of the partner's
negotiation strategy has a positive influence on the negotiator's PSA. Finally, the
negotiator's PSA has a positive influence on the export negotiation results.
4
Negotiation is human communication behavior to attain some purpose in social life.
On a narrow scale, in family life, husband and adult female continuously have to be
compelled to exchange concepts to resolve conflicts, realizing that kids even have to
argue with their folks or siblings to urge what they require. ... a lot of generally in social
relationships, folks have to be compelled to cut price once buying and mercantilism,
discuss after they wish their boss to extend their wage, firms continuously have to be
compelled to compromise to avoid competition, ... On the widest scale, in diplomacy,
there are continuous talks between countries, states, and international organizations to
resolve problems with border disputes, trade wars, and trade wars., economic
Cooperation…
It is clear that negotiation takes place frequently and is common in human life. thus
what's negotiation? in keeping with the foremost common perception, negotiation is
known as a dialogue between 2 or additional parties regarding the necessities and
aspirations of 1 party to the opposite around problems associated with the interests of all
parties. From a tutorial purpose of reading, up to now, there are several definitions of
negotiation given by known specialists within the world.
In the research literature on negotiation, theorists all admit one thing: negotiation is
a fact of life that is present everywhere, not only in the field of business exchange. In
everyday life, negotiation is present everywhere. People are always negotiating even
when they don't know they're doing it. Thus, the concept of negotiation needs to be
expanded to include activities in daily life.
To date, there has not been a consistent concept of negotiation. Joseph Burnes
considers negotiation to be a discussion between two or more people to reach a common
goal of reaching an agreement on issues that separate the parties over which neither side
has sufficient strength - or strength but does not. want to use - to solve those separation
problems. This concept considers the cause of negotiation as conflict, and the purpose of
negotiation is to resolve conflicts by avoiding the use of force.
For example, according to Professor Gerald Nierenberg, president of the American
Association for the Study of Negotiation, "As long as people exchange views and discuss
ideas to come to a consensus, they have negotiation is the basis for satisfying our needs
through the consent of others while taking into account their needs", also according to
two professors Roger Fisher and William Ury, authors The author of many famous
studies on negotiation, "Negotiation is the basic means of getting what we want from
others. It is a reciprocal communication process designed to achieve what we want from
others. agreement while between you and your partner there are interests that can be
shared and interests that are antagonistic."
8
Negotiation is an activity that is both scientific and artistic: Negotiation is scientific
because the negotiation process requires research, analysis, and evaluation of the problem
systematically and objectively. and comprehensive to find the optimal solution for the
parties according to a predetermined process, method and countermeasures. In addition,
negotiation is also an art because it requires subtlety, agility, flexibility, flexibility, and
ingenuity when using skills in the negotiation process such as persuasion skills., choose
when and how to do it…
a. Soft Negotiation
c. “Principle” negotiation
10
Principle negotiators state their point of view or object to a partner's opinion with a
polite attitude, they will easily establish a cooperative working atmosphere, facilitating
the resolution of conflicts in a manner quickly and effectively. However, if the negotiator
pays too much attention to maintaining a friendly atmosphere, is easily persuaded, and
constantly changes positions, the other party will constantly push forward to demand
more concessions. Negotiation is a bargaining process, negotiators have to protect their
interests, so the stance needs to be firm.
Moreover, principal negotiators focus on common interests, emphasizing common
interests, and then favoring opposing interests. Focusing on common interests makes it
easier for the two sides to build a cooperative atmosphere for negotiations, and to
facilitate mutual understanding and concessions in opposing interests. If the opposing
interests are favorable from the beginning, it is very difficult to mediate conflicts because
the two sides cannot find a common voice in cooperation and try to pursue their interests
to the end, causing negotiations to fall into a deadlock. occlusion.
For opposite interests, an asseveration would be devised, taking into account
reasonable concessions. The establishment of an asseveration to deal with opposing
interests helps the parties to consider and make concessions, thereby solving the problem
more effectively.
According to the theory, when the two sides have a strong balance of power, a
cooperative negotiation strategy would be applied, when the two sides have a strong
relationship, a hard negotiation strategy could be applied. On the contrary, when the two
sides have a good friendship, a soft negotiation strategy can be applied.
Thus, the object of international trade negotiation is the purchase and sale of goods
and services on an international scale. The purpose is to conclude a sales contract that is
acceptable to both parties. The content of international trade negotiations is the
international trading conditions such as price, quality, delivery terms, payment terms,
warranty, claims…
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- Price is the core of international trade negotiations. In commercial negotiations, the
expression of value is the price that most directly reflects the interests of the negotiating
parties. In many situations, more or less can be calculated through the price. However,
besides taking the price as the center, we must also pay attention to the combination with
other beneficial factors.
- International trade negotiations pay special attention to the rigor and accuracy of
contract terms. The contract is the result of commercial negotiations, the contract terms
reflect the rights and obligations of each party, and the rigor and accuracy of the contract
terms is an important premise to ensure the benefits negotiated by the negotiator.
Negotiators need to value not only verbal promises but more importantly, the accuracy
and rigor of the contract's terms.
- The parties to international trade negotiations have different nationalities or are
located in different countries
- International trade negotiations are governed by economic laws such as the law of
value, the law of supply and demand, and the law of competition, and are influenced by
great fluctuations in the world economy.
- Being influenced by political and diplomatic relations between the countries
having the negotiating subjects. We need to thoroughly observe the State's foreign policy
and foreign economic policy.
- International trade negotiations take international law as the norm and take
international practices as the basis. This requires negotiators to understand international
law and customs.
- There is an exchange between cultures. This makes international trade negotiations
more complicated. Cultural differences are huge obstacles in the negotiation process. If
the parties do not clearly understand the partner's business culture, it is easy to cause
misunderstandings, and conflicts and thus difficult to achieve the desired results in
negotiations.
The first obstacle is the negotiation environment, which includes factors such as
location, time, language (verbal and nonverbal), people, and surrounding events. In
international trade, two businesses in two countries are often located far apart. Usually
with large contracts, one of the two parties will have to go to the other country to
negotiate. At this time, factors such as geographical distance, climate, and changing living
conditions in an unfamiliar environment can create pressures and inhibitions for
14
negotiators who have to travel far and can reduce negotiation efficiency. Today, this
barrier is being gradually reduced with modern means of negotiation such as video-
conferencing.
Culture is a big concept that covers all issues in human life. Even in commerce,
when the main goal is profit, culture still has a great influence, because after all,
commerce or negotiation is also a communication between people. Because the
negotiating parties often come from different cultures, how the negotiation is organized,
the negotiator's authority, the relationship-building needs and the speed of negotiation,
etc. will also be different. To overcome this barrier, the negotiating parties must actively
learn about each other's cultures to decipher the other's actions, have appropriate
behaviors, and avoid taboos of other cultures. and adjust to having common ground
before entering into negotiations.
When engaging in international trade, the company has to deal with a wide variety
of laws and political systems. This forces the negotiating parties to have experts who
understand the national and international laws in the field of negotiation and the political
institutions of the parties, thereby clearly stipulating the terms of international commercial
arbitration. select the governing law, stipulate the tax payment obligation…
International trade negotiators also have to deal with partners with different
ideological positions, many of which are in sharp contrast to their own, such as
negotiators from socialist countries. capitalism and capitalism. This conflict requires the
negotiator to find a way to limit the offers to areas of thought that are familiar or at least
acceptable to the other side and to find neutral means of communication between the two
sides. both sides. Only then can the new negotiations be successful.
The existence of multiple monetary systems has caused two fundamental obstacles
in international trade negotiations. First, between the period between the conclusion of a
contract and the time of payment, the value of the payment currency can increase or
decrease, creating an unforeseen loss for one party and giving the other party a profit.
corresponding. The second problem is that unexpected government foreign exchange
controls can severely impact the bottom line.
The SePte Ltcmber 11 terrorist events in the US, the Iraq war in 2003, the tense
nuclear issue in the Korean peninsula, and the recent SARS epidemic in Southeast Asian
15
countries... are just a few. examples of unexpected events that have a large and severe
impact on international business transactions such as a sudden spike in oil prices, popular
shipping lanes temporarily closed to ships, restricted air routes, and other items that
increase and decrease in price erratically, beyond the forecast or areas where foreign
visitors are temporarily banned because of safety issues...
In summary, these seven barriers have a great impact on the process of negotiating
and signing international commercial contracts. They increase the risk of negotiating
failure or prolonging the time to negotiate a deal that in many cases misses market
opportunities or even creates losses. Therefore, a good negotiator must know how to
anticipate possible situations, devise different options, persevere, and also know how to
quickly seize opportunities to avoid, overcome, or quickly. handle objective barriers in the
negotiation process to sign foreign trade contracts.
The purpose of this stage is to prepare the necessary conditions to create a premise
for successful negotiation by preparing the most effective negotiation plans.
To be successful in the pre-negotiation phase, this stage needs to be done seriously,
thoughtfully, and fully. However, the level of thoughtfulness required depends on the
importance of each deal. With small businesses, the preparation is too long, too thoughtful
causes unnecessary costs, and sometimes can miss business opportunities. On the
contrary, for big deals, poor preparation can cause big losses.
This phase includes the following steps:
Information collection:
Before collecting information, it is necessary to determine the search method, level,
and scope of information to be collected. There is a lot of information that must be
understood, including information about partners, business information, information
about markets, policies... Collecting information for international trade negotiations is
complicated and multi-dimensional because it requires good information processing
ability and good situational synthesis ability to have an objective and accurate view.
Researching customers:
In life, before shaking hands with someone, we must know certain information about
them, at least see if they are trustworthy people when we contact them. In business and
negotiation, this is very important. Only when we fully understand our partners can we
consider doing business with them. To ensure the successful implementation of a deal, we
need to learn about the partner in the following aspects:
The first is to study the legal status, financial capacity, and business reputation of the
partner. Information on legal status helps us to partly understand the legitimacy of the
partner we transact with. However, the legal status of a partner is not enough to guarantee
that they have enough financial capacity to conduct business transactions with us.
Therefore, the financial capacity and business reputation of the partner are important
information that helps us to partly determine the business status of the partner. Once in
doubt about these points, it is better not to trade with them. In addition, you should also
16
learn more about the company's history, human resources, output, and annual revenue of
partners, this information helps us to know more about their business capabilities.
The second is the study of the partner's business needs, goals, and objectives. How
necessary this contract is to them? Do they choose more customers? This information is
necessary, as a basis for us to consider the goals, strategies, and tactics of negotiation.
The third is to study the situation of the negotiating team of the partner.
Competence, forte, experience, personality, and interests of each person. What is their
relationship like, is there any conflict? Who has the right to decide?
Negotiation is a communication activity, so knowing information about a partner's
personality will help us determine the appropriate behavior for each person, predict their
reactions, and overcome problems. communication barriers
Market research
- Research on the situation of supply and demand, market prices of items to be
purchased and sold;
- Research on competitors. If you are a seller, you should find out if the buyer can
choose from many more suppliers, what are the prices, quality, and designs of
competitors' flowers? If you are a buyer, you also need to check to see who else the seller
is offering to sell, if not, will you lose the opportunity to buy such items?
- Researching macroeconomic conditions of the market: laws, trade policies, import
and export policies, factors on the political situation, inflation of our country and trading
partners. Studying the trading practices of the commodity, international trade practices,
and the customs of seaports. These studies help us to guard against the opponent's tricks,
avoid entering into a loophole contract;
- Studying the culture, customs, and thresholds of the partner's country to understand
some of the partners' ways of thinking and expressing their feelings, helps us to behave
politely and appropriately to the culture. flowers and their beliefs
- Identify the problem, and make a hypothesis: After having obtained the necessary
information, it is necessary to filter, select, and re-evaluate to have a correct view of the
partner and his/her tasks. Negotiators must first re-evaluate the reliability and usefulness
of the information based on identifying the focus of the issues to be resolved in the
negotiation. At the same time, they must analyze, gather and systematize information so
that it truly becomes their own.
- Formulating negotiation objectives: This helps negotiators to determine a
negotiating position that is consistent, proactive, and does not deviate from the
negotiation process. Moreover, the two sides can save negotiating time and can negotiate,
make concessions and come to an agreement faster because the negotiation objectives are
clearly defined and accurately captured. In addition, this also helps negotiators make
decisions quickly, not letting business opportunities pass.
- Formulate a strategy: Before negotiating, you need to determine whether your
main thinking is strategic thinking or reactive thinking, and what tools and means will be
used. This selection is mainly based on the position and strength of the parties as well as
the goals that the two sides have set.
Developing a plan:
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This is the combination of information gathered with the negotiators' assessments
and tasks set to create a specific plan to achieve those goals. This work typically includes
the following actions:
+ Analyze the factors affecting the negotiation results, the possibilities, and the
ability to realize the negotiation objectives.
+ Find suitable methods to solve the task.
+ Propose specific steps and countermeasures to anticipated situations and problems.
Today's business is very complex, one person cannot have broad enough knowledge
to cover all negotiation issues, so people rarely negotiate alone, but often have more
technical assistants, foreign trade assistants, and legal assistants, in addition, there can be
an interpreter. The job of the assistants is to provide services so they speak only when
asked and then keep quiet. The task of the negotiation leader is to control the negotiation
activities of the whole delegation. He is the one who has the right to decide, so he must be
a person with a high sense of responsibility, professional expertise, rich experience, and
the ability to organize, encourage and promote collective strength. Other people in the
negotiating team must also have professional expertise, be able to coordinate with each
other in work and ensure internal consensus.
Research
This is the final step in the preparation phase. This practice is very useful for large-
scale negotiations, where there are many participants, and between them, there is a need
for coordination to achieve mutual effectiveness.
Before the negotiation, you can use the tape recorder to practice your words, thereby
checking the grammatical structure to ensure the accuracy of words (especially in the case
of not using interpreters or direct conversation). in a foreign language).
In addition, if possible, you should practice role-playing with colleagues to try to
negotiate. To get the real effect, try to practice seriously and discuss like the real thing.
Pre-negotiation stage:
First impressions are often hard to forget. It is an opportunity for the two sides to get
to know each other, which can be understood in a broad sense, both inside and outside the
negotiating table. If possible, the two sides should take advantage of every opportunity to
contact each other because through that they can understand each other better to serve the
negotiation work as well as build a long-term business relationship. Therefore, try to
create an atmosphere of openness and cooperation from the very first moment of the
meeting. Stimulating the interest of the participants. Take the initiative in negotiation.
the beginning of the negotiation should not go straight to the main issue but should
exchange some social stories to create a comfortable atmosphere, making both sides feel
comfortable. and have a common voice. Commonly mentioned issues are the weather,
travel arrangements, hotels, etc. In addition, if time allows, we can tell a few stories that
are suitable for our partners' interests and fields of interest. (for example about a soccer
game, about a famous singer...)
Negotiation stage:
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This is the most important stage in the negotiation process because this stage will
directly determine the outcome of the negotiation. A good negotiator is someone who
knows how to grasp and analyze the situation sensitively, sharp thinking, synthesizing
mind, and quick reaction. The bravery and qualifications of the negotiator are most
evident at this stage. This stage usually includes the following contents: opening,
communicating, reasoning, refuting, and decision making. The short length of the stages
depends on many factors such as goals, goodwill between the parties, preparation, and
specific developments in the negotiation.
What the two sides agree and agree on in the negotiation is the result of the
negotiation. However, it becomes effective only when confirmed in writing immediately
thereafter. The document is the most authentic and clear evidence in stipulating the
responsibilities and interests of each party and is the legal basis in the event of a dispute
later.
After the contract is signed, the negotiation is successful. After parting with the
partner, the parties need to meet to discuss experiences to improve the effectiveness of the
following negotiations. If the negotiation fails, it is necessary to analyze the subjective
and objective causes leading to the failure to take preventive measures in the following
cases.
1.6.1.1 EU
The most popular SME concept in the EU today is a concept introduced by the
European Commission in 1996, and revised in June 2003, with a mandatory application in
the system of development funds, research programs, and programs. EU research and
development. Accordingly, based on the number of employees employed and annual
revenue or total assets, SMEs are divided into three categories:
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Table 1: Criteria for identifying SMEs in the EU
Classification criteria medium- Small-
sized sized
Number of employees (people) <250 10->49
Revenue/year (billion euros) <50 <10
Total economic volume/year (billion <43 <10
euros)
Table 1. Criteria for identifying SMEs in the EU
Source:http://europa.eu.int/comm/enterprise/enterprise_policy/sme_definition/
index_en.htm
The above delineation is not relevant because it does not distinguish enterprises
between industries while it is a fact that the economic characteristics of the industry often
play a decisive role in the size of enterprises. Therefore, in the EU, there are still different
concepts and criteria for defining SMEs in addition to the concepts and criteria set forth
by the European Commission.
The classification of SMEs has also taken into account differences between
industries. In addition to quantitative criteria such as profits with annual growth of less
than $150,000 in all manufacturing, service, or trade sectors, or labor standards. The US
SME Law also has some more qualitative criteria such as SME is an independent
enterprise, not in a dominant position in its related industry. According to the American
concept, SMEs are not subsidiaries or satellite enterprises of large companies. This is
different from SMEs in Japan, where subsidiaries or satellite enterprises of large
companies still enjoy the same privileges as SMEs.
Some researchers believe that it is necessary to define small and medium enterprises
by fields: manufacturing and services. In the field of production, enterprises with a capital
of less than 1 billion VND and several employees under 100 are small enterprises;
Enterprises with 1 to 10 billion dong of capital and 100 to 500 employees are medium
enterprises. In trade and service, enterprises with a capital of less than 500 million VND
21
and less than 50 employees are small enterprises; Enterprises with capital from 500
million to 5 billion and 50 to 250 employees are medium enterprises.
Source: VCCI
To overcome the above shortcomings, the Government has issued a new definition
of small and medium-sized enterprises in Decree No. 56/2009/ND-CP dated June 30,
2009, on assistance to the development of small and medium-sized enterprises. According
to this Decree, SMEs have been classified by business areas and have specific
classifications for micro-enterprises, small enterprises, and medium enterprises.
25
decisions business based on feelings, and experience at home. Moreover, SMEs are very
weak in the field of product marketing, the stage of capturing, exploiting, and meeting
market demands (especially foreign markets) has many limitations.
Limited access to information
In the current era, the issue of information is an important factor for the success and
failure of enterprises, access to and application of the Internet in business activities for
SMEs is more limited than for companies. because they do not have enough expertise and
the cost is quite high compared to the size of small businesses.
Weak linkage between small and large enterprises
The majority of enterprises in all economic sectors operate independently. That is
the reason for low business efficiency, not being able to participate in production and
business in industries and fields that require large capital concentration and high
technology
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and settlement of housing and infrastructure. society in the process of industrialization
and modernization.
Turn 1 1 2 2 3 3 4 6
over 4.48 6.7 0.14 6.48 2.44 9.82 8.56 3.4
Source: Statistical Yearbook 2019, p447- Statistical Publishing House
In 2010, the country's export turnover reached 15.0292 billion USD, the export
growth was only 3.8% due to the fluctuating world economic-political situation. This
index improved in 2012 (11.2%) and broke out in two years 2013-2014 (20.6% and
31.3%). After a slight decline in 2015 (export growth rate was 22.5%), the growth rate
continued to remain high, especially in 2018 at 29.5%, higher than the growth rate of
imports. . The average annual growth rate is 20.9 %.
In 2018, the total export turnover was 63 billion USD, 4.3 times higher than the
14.482 billion USD in 2010. The volume of some key export products decreased, but due
to the sharp increase in world prices, in terms of value. quite increased compared to 2017
such as crude oil increased by 23.1% but the volume decreased by 7.7%; coal increased
by 44.3% but volume decreased by 38.3%, coffee increased by 5.8% but volume
decreased by 18.3%.
28
electronics, and computer components, and wood products, in 2018 there was one more
item with a turnover of over 1 billion, namely electric wires and cables.
Group of minerals and fuels
In 2018, crude oil and coal alone accounted for 20.8% of the country's total export
turnover. Exports of crude oil and coal grew unstable. The volume of crude oil exports
increased only slightly in the first years of the period 2010-2018 and then gradually
decreased because the old oil fields were gradually exhausted while the exploration and
acquisition of new oil fields from other countries did not make much progress. develop. In
general, the export of fuels and minerals has many advantages in terms of market and
price.
To save natural resources and protect the environment, the export turnover of these
items will decrease. In the export project 2016-2018, the Ministry of Trade adjusted the
target of exporting fuel minerals from 13.3 billion USD in 2018 to 8.6 billion USD in
2020 with a corresponding reduction of 20, 3% in 2018 to 10.3% in 2020.
Group of agricultural, forestry, and fishery products
Within 8 years from 2010 to 2018, the export value of agricultural, forestry, and
fishery products has increased more than 3 times. These are items that are heavily
influenced by the world market. In the years 2011-2013, due to the impact of the world
economy's decline, the demand for agro-forestry-fishery products decreased, reducing the
prices of many key export products of Vietnam. In the remaining years of the 2013-2018
period, due to the recovery of the world economy and the increase in production costs, the
proportion of these commodity groups also increased rapidly.
In 2018, the export turnover of this group of products reached 16.24 billion USD, up
22.7% compared to 2017, reaching the highest growth rate ever (According to the data of
the National Center for Agriculture and Fisheries Extension). . The reason is that at the
beginning of 2018, the world faced a food crisis when the prices of most agricultural
products such as corn, wheat, and rice increased by 2-3 times in less than two years.
Group of processed industrial goods
This is a group of products including many key export products such as textiles,
footwear, mechanical products, wood products, plastic products, electronics, salmons...
The export situation of Vietnam's textile, garment, and footwear has been quite
stable over the past 8 years. Export turnover increased by 23% on average, and leather
and footwear were 15.3%. These two industries have the same characteristics of using a
lot of labor, which is suitable with the advantage of cheap labor in Vietnam. But the
limitation of these industries is that they depend on foreign raw materials (60-70%), and
consume large amounts of electricity. Wood products increased steadily between 2010
and 2018. Within 8 years, wood export turnover increased by 7.5 times. In 2014, the
export growth rate reached a record of 81%, putting wood in the group of goods with an
export value of over 1 billion USD. In 2018, wood export turnover reached 2.8 billion
USD, up 16.6% compared to 2017.
Computers and electronic components
The export of computers and electronic components is playing an increasingly
important role in Vietnam's export structure. Excluding the year 2012, the export of this
commodity decreased due to the impact of the world economic recession, the average
29
export growth rate in the period 2013-2018 reached 29.4%, the highest among key
commodities. According to official statistics, the export turnover of computers, electronic
products, and components in 2018 reached 2.639 billion USD, up 22.5% compared to
2017. According to the development orientation of industrial products in Vietnam
Vietnam
Source:https://hptoancau.com/en/overview-vietnam-logistics/
30
2.2 The current status of SMEs’ usage of negotiation techniques regarding
international trade
This chapter focuses on the research results and findings. The results are divided
into four sub-chapters; general background information, early stages of the negotiation
process, negotiation in action, and the end of the negotiation process. Lastly, there are
recommendations for further study.
Measuring the average age of the negotiator also makes us think. The majority of
people aged 40 to 50 years old (63.06%). This also leaves its mark on the entire range of
negotiating styles that follow. However, the number of hosts over the age of 50 has
decreased (11.71%) and the number of people under the age of 40 tends to increase
(25.23%). This also contributes to the negotiating style of Vietnamese businesses.
The issue of the host's educational presentation is also a good signal. The number of
negotiators with university degrees accounted for the vast majority (72.07%). even the
number of people leading the negotiations with a university degree accounted for 22.52%
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Source: Author Compilation
The next five queries were regarding the preparation and designing of the
negotiation. “The most vital success think about negotiation is preparation and
designing.” (Ghauri and Usunier, 2013, 16). the aim was to search out how much time
and energy will business treaties pay for pre-stages of the negotiation methods. It
transpired that 4 out of 9 respondents devote solely half an hour to arranging a
negotiation. The results of this question were a touch stunning as a result of several
authors stressing the importance of preparation and coming up with however essentially
coming up with is in several cases perceived as boring and thus it simply defers in favor
of “getting into the action”. however, on the alternative hand, these negotiators have a few
years of experience the number of your time spent on preparation might not be brief on
balance. It has become a lot of sort of a routine for them. If there's only 1 hour to organize
a negotiation Thompson (2018) provides 3 crucial steps that square measure important. It
is important to a minimum of establish key goals, brainstorm the choices, and set up the
opening move.
From the response to the sixth question ‘When getting ready for the negotiation, to
what extent did you prepare the opposite side’s case to break away from your own?’ it's
hard to withdraw clear conclusions about what proportion they prepare counterpart’s case,
but every one of them certainly accepts the opposite facet before getting into to the
negotiation table. From the response to the eighth question, it's hard to withdraw clear
conclusions about what quantity they prepared counterpart’s case, but every one of them
certainly has faith in the opposite aspect before getting to the negotiation table.
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Figure 3. Preparation of the other side’s case separately from their case
Figure 3. Preparation of the other side’s case separately from their case
The results of the ninth question provide transparency into how much each one of
the respondents determines their objectives. And once asked to outline what proportion of
their objectives in percentages, they reach on the average. These international business
negotiators reach their objective on an average of 68,66%. so as for the treater to attain
negotiation objectives and confirm the success or failure of negotiations, the foremost
important elements before sitting down to talk over, are effective planning and
preparation (Hendon et al., 1996)
In question 10, respondents were requested to point to what extent they contemplate
each of the subsequent factors as a part of their preparation. Slightly less than 90% of the
respondents indicated that the negotiation is extremely critical concerning their
organization’s goals and objectives. They also indicated that the time pressure to reach an
agreement is somehow important.
34
Figure 4. Factors under consideration in the preparation stage
Figure 4. Factors under consideration in the preparation stage
The third sub-question was about BATNA. As the results show negotiators consider
a lot of different alternatives if they do not reach an agreement. Negotiators with a strong
BATNA in hand can negotiate with confidence and power. If the best option does not
follow according to plan the negotiator may pull the plan B out of the sleeve and still have
a win-win outcome. The results of the fourth sub-question are a little bit shaky because
more than half of the respondents say that they revolve a lot (56%) and a great deal (26%)
counterpart’s likely strategy (Figure 3) that they prepare for their counterpart’s case a
little. Smart negotiators always take into account the other party’s objectives and strategy.
The quality of the counterpart’s outcome is important for negotiators as 63% replied ‘a
lot’.
35
Figure 5. Insight of the counterpart’s wants and what they are prepared to agree to.
Figure 5. Insight of the counterpart’s wants and what they are prepared to agree to.
For negotiations to breed success, one party must understand the other party’s
stands. The skill to glance at the situation from the counterpart’s point of view is one of
the most important skills in negotiations. In the next question, the choices were the same
as in the previous question. The purpose was to find out how these negotiations gain
insight into what the other party wants. The first sub-question asked, does the other party
fully sincere about what they want and why they want it. The responses were in the
middle of the rating table as 57% says a little and 42% says a lot. Information is key,
especially in the early stages of the negotiation process. The respondents claim that they
ask a lot of specific questions and get reasonably clear answers. The more specific
information is obtained the more powerful the negotiator will be. 78% of the respondents
use the tactic where they offer some expertise into what is important to them to encourage
the other party to do the same. This tactic does not always breed success and should be
used carefully because whenever revealing valuable information the other party will get
more power.
36
More than half of the respondents come to their conclusions from what the other
party says and does (or does not say). They read between the lines, and focus on the body
language and the use of silence. The respondents focus only a little on parties’ differences
to gain knowledge of what the other party aims for which is a good thing because
negotiation is about reaching an agreement side by side not being separated into two
opposite groups. The respondents focus more on common ground. More than half of the
respondents answered that they know a little about what the other party wants because of
their preparation beforehand.
37
surveyed businesses only use interpreters when meeting a big partner, needing a little
formality, or when having to negotiate in different languages. difference
In the need to be consulted in negotiation, only 4% of the respondents answered that
they need to invite a consultant when negotiating, 37% of enterprises sometimes invite,
and up to 54% never use an advisor. Because state-owned enterprises have had enough
time to train their staff, there is no need for advisors. As for FDI enterprises, since they
were recruited, they have selected capable staff, so it is not necessary to try. A significant
part of the directors and deputy directors of private enterprises are foreign trade officers
of state-owned enterprises, so they also have the necessary experience and knowledge, so
they do not invite advisors. Typically, businesses only invite advisors when negotiating a
new, high-value product or when entering a very unfamiliar market. When asked why
they don't like using consultants, most businesses say they don't want to share their
business secrets with outsiders.
The next question was about their assessment of the balance of power between the
parties. In the optional comment box at the end of the survey, someone remarked this
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question that ‘it depends a lot who you negotiate with’. There were four options to choose
from whether they needed the agreement much more or somewhat more than the other
party, or they both need the agreement equally, or the other side needed the agreement
somewhat more or much more than they do. The result of the question shows that six out
of nine responders go to the negotiation situation with an attitude that both parties need
the agreement equally. Zero of the responding negotiator's mind that they need the
agreement somewhat more than their counterpart does. This could mean that he is leading
the negotiation because he believes that the other party has more to lose and may probably
have to make some concessions to reach an agreement. But the same believes that the
other party needs the agreement somewhat more than he does.
Making the opening in negotiation affects the progression. By just looking at the
figure below one can conclude that it depends on the issue negotiated and who is making
the opening. The majority has replied ‘often’ in both questions which hints that it depends
on the case who should be first to open.
When asked about negotiation techniques, the situation is more complicated.
Responding to a question about how to initiate negotiations, up to 37% of respondents
answered that they immediately went to work, and only about 7% discussed other topics
to create sympathy before starting negotiations. negotiate. When taking the initiative, 42%
of respondents want to take advantage of the opportunity to extract more information,
39% want to take the opportunity to quickly close the issue, and still close to 20% of the
respondents want to be polite and leave the decision to the other party. This is consistent
with the comment of many experts that Vietnamese enterprises are still immature in terms
of professionalism, both respectful and sometimes indecisive.
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Source: Author Compilation
In the next question, respondents were free to answer what are the top three areas
that are the primary focus in negotiation. They were also advised to list these in order of
importance to them. To slightly aid them there were a few examples given (price,
relationship, payment terms, service, quality, etc.). Table 6 below shows the results. This
aided open question’s results give a lot of information just by looking at the table. As one
can see quality, price and relationships are in the top three for many respondents. People
value things differently. The only thing that was not mentioned and what is usually very
important for business negotiators is time. This implies that timing is not important for
these negotiators and culture may have something to do with it.
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inside the company into use
Long relationship Price Quality
The total cost of Compatibility Quality
ownership/ life cycle cost
The next question confirms the answer to the research question: ‘Which skills are
important for business negotiators to master?’. Respondents were asked to choose three
skills from the list. The options were: communication skills, concealing emotions,
interpreting people, bargaining skills, good listening skills or the answerer could write
some other skill in the text box.
41
Source: Author Compilation
From the respondent's point of view, the most important (mode) skill is by far
communication skills. Communication is the product of negotiation and clear
communication is the first foundation for successful negotiation and especially in
international negotiations where cultures and different languages collide. According to the
respondents second most important skill is good listening skills which are also a part of
communication. The ability to interpret people is also in the top three. To know how to
read the other party is an advantage. One person believes that concealing emotions is an
essential skill to master. In the optional comment field, two people wrote that they believe
important skills to master are; the ‘ability to react and innovate proposals’ and ‘the ability
to build constructive proposals’. As mentioned in chapter three about the limitations of
this research, negotiators want to reveal as little information as possible. There was one
person who passed this question.
The next two questions were designed as matrix questions planned to keep in mind
Fisher and Ury’s negotiation theory. The answer options for this question were: always,
often, sometimes, or never. Respondents were asked do they expect to win all of their
negotiations and by looking at the graph below (Figure 10) one can see that there is no
specific answer, as some people always expect to win while some never expect to win all
of their negotiations and the rest were between.
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Figure 10. Behaviors and acts by the negotiator
Figure 10. Behaviors and acts by the negotiator
Walk away may sometimes be the best option but the negotiator must have the
strength to do it. Sometimes the relationship with the other person is so good that a
negotiator rather loses something else than a fine relationship. A negotiator may feel
afraid to break off negotiation for many reasons. To name a few, the person will ponder
will he find another seller/buyer or a considerable amount of time spent already, or how it
affects future relationships. The respondents were asked do they feel afraid to break off
negotiation and the majority replied sometimes. One person seems very confident since he
is never afraid to walk away.
It is never wise to be too aggressive in any negotiation. But in some situations being
a bit though would not harm, and vice versa, it would be better. The results of the next
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sub-question: ‘Do you attack your counterpart?’ were unilateral since one person
answered sometimes and the rest never attack their counterpart which may be a cultural
thing The negotiation process is long and depends on the issue negotiating the meeting
may last a long or short time.
Having breaks between the negotiations may be a good thing for both parties.
During the break, one has time to charge the batteries and come up with new ideas and
solutions. The respondents were asked whether they suggest breaks. The majority say that
they sometimes ask for breaks but more often they give breaks. In conclusion, it may be
that when someone is the host it is easier for him to give breaks than as a guest and ask
for small pauses, or it could also depend on whether the negotiator is in a selling or
buying position.
Win-Win
Both parties get their prime targets
long-term partnerships or keeping the option open in the future
This is required in most cultures
Leads to trust and continuity
The level of satisfaction when it comes to the outcome of the negotiation was very
positive. As more than half are very satisfied with the outcome and others are moderately
satisfied. Positivity continues since 77% are very satisfied and 22% are moderately
satisfied with the whole process of their negotiation. When it comes to the final agreement
44
two-thirds of negotiations usually ends up with a single formal detailed agreement, 22%
ends up with a series of formal and detailed agreement, and the rest settle upon an
informal agreement. Nobody said that the issue is resolved other than negotiation or that
there will be no agreement because of a knot that cannot be solved. The next two
questions were unaided open questions. In the first question, the intention was to get
insight into how respondents estimate the importance of win-win strategies. In table 7, the
Main responses are listed. One can conclude that they always aim for a win-win outcome.
In the following question, the idea was the same but they were asked how they
estimate win-lose strategies. For all to win both parties must work together. In win-lose
strategies, they only think about themselves and in the end, that strategy does not get
anyone very far.
The negotiation process does not end when the negotiation session is over. As
important as the planning of the negotiation is so does the post-processing of the
negotiation. The respondents were asked to tell how often they do the following things
after the meeting is over.
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The above-mentioned disputes cannot fully reflect the reality of signing the contract
of contract in Vietnam, but partly generalizes the causes leading to the dispute, either
directly or indirectly related to the determination of eligibility. the contract's legal status,
the terms of the price, quantity, quality of the goods, the modification and cancellation of
the contract, the terms of the claim, the arbitration and mainly the parties do not make
payments to each other. These issues, if not fully and closely negotiated in the contract,
will inevitably lead to disputes. Vietnamese enterprises, due to their incompetence in
operations and lack of legal knowledge, are often at a disadvantage when disputes arise
and suffer great consequences.
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3.1.1 Develop international economic experts
The State should invest in sending several good students to study knowledge of
economic disciplines and experience in management, international business experience to
developed market economies such as the US, EU countries, Japan, etc. The government
should also promote through scholarship programs to send officials to study in these
countries for some time in terms of skills in trading, negotiating, and working with
foreign partners during the current transition period so as not to miss the opportunities for
early participation in the global economy. In addition, there should be appropriate
incentive policies so that Vietnamese students will return home after their training abroad.
Like the investment policy for education in China - out of 10 people who study abroad, 3
return to build the country has been a success-. In each Vietnamese student abroad, there
is patriotism and a desire to help build the country, but it is necessary to have a
mechanism to create conditions for them to apply the knowledge they have learned from
abroad, contributing to a professional working style.
From the subsidized regime for many years to the market regime, it is not possible to
expect a drastic change in the perception of economic thinking overnight, but perhaps the
best way is to build new models. The domestic training model combines modern and
traditional elements and combines the economic and commercial experience of the West
with the culture and ideology of the East. Having a deep sense of this indispensable
relationship creates the effectiveness of training and leads to sustainable development, in
the right direction.
In a negotiation, the negotiation techniques you use can have an enormous impact on
the success (or failure) of your negotiation. A veteran negotiator needs to master the
basics of good negotiation techniques. Below, the author has listed some of the main
techniques
Making an offer
Offers should be made at an appropriate time, presented concisely and clearly, and
should emphasize goodwill. The right time to make an offer depends on the strategy you
choose. We can choose to actively ask the question first or let the other person make the
offer first.
If we propose first, then the proposal should:
Specify all relevant conditions “If you let us…. We will give you…”
Find out how the other person will react to questions such as “How would you feel if
we suggested…?”. You should anticipate the opponent's possible reactions.
Do not show concessions, but also do not make unrealistic and excessive requests,
which makes it difficult to have a basis for reaching an agreement.
Emphasize the advantages our offer offers. The benefits are always “more pleasant”
than the “costs”.
We should make offers that are within the scope of the agreement, that is, to the
extent that the other side can adjust and we can make concessions but in the end still
ensure the highest possible profit for our side. To do so, we must carefully prepare
arguments to support our proposals.
Communication
To save time and take the initiative in the negotiation direction and collect the
necessary information for one’s party, a negotiator must master the technique of
51
questioning. It is necessary to choose the right time to ask the question, to avoid
interrupting the opponent's words. Do not ask questions that are unrelated to the content
of the negotiation or related to confidential information. When asking a question, you
should explain to the other party the purpose of asking the question, if possible, such as
affirming that providing the information is in the interests of both parties, for the success
of the negotiation. That way, the new partner is interested in providing us with useful
information. Here are some common types of questions used in negotiation:
1. Would you explain the reasons for your position?
2. Is there any reason you can't? ...
3. Why do you think this is a fair and reasonable term or condition? ...
4. Why is that point or provision important?
Listening
Listening is an effective means to help us gather information from the negotiating
partner. Applying good listening techniques will bring two effects. First, make the other
party feel respected and have their opinions meaningful to us, creating excitement that
helps them present the issue more coherently. Second, it helps us to capture and store the
necessary information for our purposes.
When listening, we must concentrate very hard to grasp the main and secondary
points, avoid not understanding the problem, be easily discouraged, interrupt the partner's
words, and hinder the process of providing information from them. We should let them
finish their presentation before giving their opinion. We should also pay attention to the
partner's voice, the change of tone, or the accents to judge the intentions and inspiration of
the issue they are giving, thereby making the basis for us to make decisions. Hesitation or
pause maybe because they are thinking, anxious, or not confident. In addition to effective
listening skills, negotiators need to have a good "listening attitude" by maintaining good
eye contact, leaning forward when speaking, and making the partners understand that we
are talking. listen by nodding and agreeing with interjections. Reflect on what you've
heard by analyzing its content and asking clarifying questions. Appropriate questions
contribute to the listening process but should not ask too much because they can break the
"circuit" of the speaker and can make people feel that we are not listening. These
questions should be open-ended or probing questions. An exploratory question allows the
speaker to focus more, limit generality and pervasiveness, and provide more close-up
information. If so, we can not only listen effectively but also respond effectively.
Question answering technique
Along with asking questions to collect information, we also need to provide
information to partners by answering partners' questions. The content of the answer
depends on the content of the partner's question. However, we need to keep in mind some
principles when providing information, which is that the information must be objective,
accurate, complete, and timely because the lack of such features may cause difficulties for
partners and partners. limit the decision-making process. When we have an answer for the
partner, we need to calmly consider and arrange the answer so that it is logical, suitable
for the question, and with sufficient capacity. Never give out redundant information
because the advantage is in the hands of those who have the information.
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While answering the question, the problem is not giving the right or wrong answer,
but whether we can convince the other party. There are correct answers, but the partner
thinks it is wrong, on the contrary, there are wrong answers, and the partner thinks it is
right and good. So the problem here is that the answer must satisfy the wishes of the
partner. In addition, if the question is not clear, we need to ask the partner to explain
more, doing so will help us have more time to think about the answer and avoid "wrong"
or wrong answers. In case you understand the question but don't have the answer, you
need to find ways to prolong the time, you can ask the question again, ask the partner to
answer or you can pretend not to understand. Furthermore, another answering technique is
through silence. Silence can be a significant response to an unacceptable offer or a
condescending attitude.
Reasoning
This is an important technique of the negotiator because it helps to convince the
other party to change their positions, partly or completely to ours. No matter how
thoughtfully prepared the negotiators are, if they can't defend their opinions, everything
will not work out.
To argue successfully, negotiators must have a high level of concentration,
perseverance, and a deep understanding of the subject matter under negotiation, as well as
logical thinking and presentation skills. In addition, there are a few points to pay attention
to
Present the problem in a logical, coherent, intuitive manner, using clear, simple, and
precise terms; Illustrated with models, figures, and charts will increase persuasion.
Through partner research, the method and pace of argument are appropriate to their
characteristics and temperaments.
Dealing with aggressive negotiators
Table 8: Some techniques for dealing with aggressive negotiators
Table 8. Some techniques for dealing with aggressive negotiators
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Source: The Art of Business Negotiation - Phil Baguley
Concession
In buying and selling, never give in to anything unless you get something in return.
Nor should they give in too easily or too soon. One of the things to keep in mind is that
we must make sure we exchange something of value for at least one concession of equal
value from the other side. Many concessions that appear to make sense on the surface are
meaningless. Therefore, we need to pay attention to 3 basic issues after making
concessions:
1. Is what is the other party giving us something of value?
2. What does the other side demand in return when making concessions to us?
3. Are concessions taken seriously?
Closing negotiations
In a calm, confident, clear manner, in short, sentences, do not use open-ended or
interrogative sentences. You can choose to praise the other person and thank them for
their efforts, perseverance, and understanding that they have given us. Regardless of the
technique, at the end of the negotiation, to prevent different interpretations, one should
take the time to summarize the terms of the agreement, to review the entire negotiation
outcome. The unification of the interpretation and implementation of the terms of the
negotiation is the process of turning a promise into a commitment to creating obligations
in the implementation by the understanding when agreeing with a contract. Longer
procrastination can lead to rethinking.
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3.2.2. Fully aware of the importance of negotiation and the differences in
business culture in international trade negotiations
The outcome of the negotiation affects the business results of the enterprise.
Therefore, businesses must attach more importance to negotiation and appropriate
investment. For import-export companies, negotiating international trade is a decisive
stage of business efficiency and quality. Foreign markets are always more difficult than
the inland market, so it will be a pity if our goods have met their requirements but still
cannot sign the contract due to weaknesses in the negotiation process. Only by doing well
in negotiations will the two sides be able to develop a long-term, trusting business
relationship. Vietnam though has a lot of cultural characteristics imbued with foreign
cultural identities, but in the process of its development, each country's culture has its
characteristics. As developed and modern economies, almost all-powerful countries have
built their own business culture that is easy to recognize. But that does not mean that
Vietnamese enterprises can easily adapt to their business culture without a thorough
understanding and proper assessment of their role in business activities. Today's
Vietnamese enterprises, if they do research before negotiating, only stop at superficial
assessments, but rarely go into deep analysis to have a more thorough and thorough view
to better serve the negotiation. Maybe in part because our contracts are not always of
great value, businesses do not want to invest too much in preparation for fear of
unnecessary waste. However, having determined to do long-term business with the
foreign markets, we will not only negotiate with them once. Understanding their culture
and business culture is not only necessary before each negotiation. It is the subjectivity of
businesses that "have to jump until they reach their feet" is a cause leading to the passivity
and haste in the work of collecting, researching information, and other preparations.
Therefore, businesses need to be more active in understanding, researching, and preparing
for negotiations
57
country are small enterprises, with outdated technology, low labor productivity, high
product prices, quality, and design not meeting the diversified and fluctuating demands of
the market. Doing business in the international market with many strict requirements and
fierce competition, without a correct business philosophy will not be able to help the
business survive. Selling goods is one thing, but gaining the long-term trust of customers
is another completely different matter. To achieve that, businesses must have a business
philosophy, a long-term and correct business strategy
To create and promote positive business philosophies and cultures, the team of
business managers must be aware of its role and significance for the sustainable
development of the business. According to the current development trend, a business
grabbing, lacking culture will not be able to survive. Businesses can achieve temporary
profits but cannot develop long-term and sustainably
In short, to improve the effectiveness of international trade negotiations and
effectively penetrate the international market of Vietnamese enterprises requires a
combination of strategic vision as well as practical policies of the State. together with the
dynamism and learning spirit of Vietnamese businesses, who are taking the first strong
steps into the world market.
Conclusion
APPENDIX
Survey
59
Dear,
I am Tran The Dan, currently a 4-year student (k57- Business English) at Foreign
Trade University. I am doing my graduation thesis with the topic "Effective negotiation
regarding international trade. A case study of SMEs in Viet Nam". I hope that you can
spare some time to complete this survey. It is my honor to receive your responses.
Sincerely,
Dan
10. Please indicate to what extent you consider each of these factors as part of
your preparation process
Not A A lot A
at all little great deal
11. How do you gain insights into what the other party wants and is ready to
agree to?
Not A A lot A
at all little great
deal
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reasonable answer from it
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d. We realize that we need to make a concession
16. What are the top 3 areas that you primarily focus on in a negotiation?
a. [Type an answer here.]
b. [Type an answer here.]
c. [Type an answer here.]
17. In your opinion, what is the most important skill a negotiator should have in
an international business negotiation?
a. Communication skill
b. Concealing emotions
c. Interpret people
d. Bargaining skill
e. Good listening skill
f. Others
[Type an answer here.]
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18. What outcome should be prioritized in an international negotiation?
a. Win-win outcome
b. Win-lose outcome
c. Depends on the negotiation
19. Do you
Always Often Sometime Never
3. Attack your
counterpart?
4. Use experts?
5. Maintain the
initiative?
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20. After the meeting is over
Always Often Sometime Never
REFERENCES
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