ASSIGNMENT 1:TH TRUE MILK PES

POLICTICAL:

- Vietnam’s political system also has critical impact on Th True milk. Viet Nam is Socialist Republic with
single State and Vietnamese politics is under communist system. Besides, Viet Nam is considered as the
country has the most stable political, and that is competitative advantage to attract many foreign
investments. This positively impacts the planning and implementation of strategies of businesses as well
as Th tr milk.

- The Vietnamese government has applied many policies and regulations to protect and promote the
development of the domestic dairy industry.

- Vietnam's dairy industry needs to comply with regulations on technical standards, food safety and
hygiene, labeling and advertising from the State. This is aimed at protecting consumer rights and
improving the quality of domestic dairy products. However, some regulations can cause difficulties for
businesses, such as requiring a food safety certificate for each type of product or prohibiting the use of
terms such as "colostrum" and "breast milk", “fresh milk” on the label.

- Besides, the dairy market in Vietnam also receives support from the State's policies and incentive
mechanisms. For example, tax exemption for importing milk materials for businesses investing in the
dairy industry, or credit support, training and technical advice for dairy farming households.

- In addition, expanding export markets is also a great opportunity for Vietnam's dairy industry,
especially through free trade agreements such as CPTPP, EVFTA and RCEP. This helps promote the
growth and development of the domestic dairy industry.

- According to the EVFTA Agreement, import tax on milk and milk products from the EU will be gradually
reduced according to the roadmap from 5 - 15% to 3.5-0% for many products from milk, which is
expected to have an impact on Vietnamese dairy businesses, helping Vietnamese businesses increase
competition at home in terms of raw materials. However, tax is reduced lead to more competition with
import in price.

- Vietnam still has many opportunities to expand export markets to other countries. This is driven by
free trade agreements such as CPTPP, EVFTA, and RCEP that Vietnam has signed or is discussing. These
agreements not only reduce import taxes but also help improve reputation and product quality, while
strengthening cooperation with other trading partners. This is an important opportunity to help
Vietnam's dairy industry continue to develop and expand international markets.

- Vietnam is a member of economic organizations, thanks to Th true milk also has conditions to expand
its market, access advanced technology, …

- Vietnam’s dairy products exported to China of the Protocol signed on April 26, 2019, between the
Ministry of Agriculture and Rural Development and the General Department of Customs of China. TH is
the first enterprise qualified to be granted an export code for two groups of dairy products, including:
sterilized milk and milk supplemented with natural flavors - Sterilized milk and Modified milk to the
most populous market in the world. This helps TH expand market.

-ECONOMIC:
  Vietnam has enjoyed strong economic growth.
 GDP in the fourth quarter of 2023 was estimated to increase by 6.72% over the same period last
year, higher than the fourth quarter of 2012-2013 and 2020-2021, and with a positive trend.
( GENERAL STATISTICS OFFICE) . Healthy market, higher income and stronger consumption
confidence lead to significant changes in consumption trends.
 International brings Vietnam's dairy industry opportunities in dairy farming and dairy products.
Dairy farming has the opportunity to gradually shift from small to farm-scale, industrial and
suitable. With localities, importing equipment, production lines, breeding cows and dairy
products at low tax rates, Vietnam's dairy industry can promote milk export activities to the
world, carry out production and providing dairy products right in foreign markets
- TH True Milk's infrastructure is considered a symbol of this entire dairy company, which is a dairy farm
providing raw materials and a clean, fresh milk processing factory with stable raw material input.

SOCIAL:

- The proportion of the young population aged 0-14 years decreases from 24.3% in 2019 to about 23.9%
in 2023. The development of this industry is proportional to the proportion of adolescents in the
population structure. The decreasing proportion of adolescents affects the milk consumption of this
segment.

- The trend of population aging is still happening rapidly; high rate of urbanization; Fertility levels falling
to their lowest in the period 2018-2023 may lead to changes in product strategy in the future.

- Develop economics and life and requirements for quality of life increase knowledge about healthy
information. Vietnamese pay more attention to improving their health, and are interested in using
health-promoting products. Milk is the main product used, this is an opportunity for TH true milk
promote their products, market, and create many diverse products.

- The trend of Vietnamese people using Vietnamese products also helps Th true milk

- Today's difficult economy, consumers are increasingly demanding in matters of price, quality, and
manufacturers. This increases competition

Reference:

Th group exported first batch of milk to China – th true milk.

Available at: https://www.thmilk.vn/en/th-group-exported-first-batch-of-milk-to-china/

Thông Cáo Báo Chí về Tình Hình Dân SỐ, Lao động việc Làm Quý IV và Năm 2023 (no date)
General Statistics Office of Vietnam. Available at: https://www.gso.gov.vn/du-lieu-va-so-
lieu-thong-ke/2023/12/thong-cao-bao-chi-ve-tinh-hinh-dan-so-
- THÔNG CÁO BÁO CHÍ VỀ TÌNH HÌNH DÂN SỐ, LAO ĐỘNG
VIỆC LÀM QUÝ IV VÀ NĂM 2023 https://www.gso.gov.vn/du-lieu-
va-so-lieu-thong-ke/2023/12/thong-cao-bao-chi-ve-tinh-hinh-dan-
so-lao-dong-viec-lam-quy-iv-va-nam-2023/