ECO601_INTERNALTIONAL ECONOMIES

COURSE TITLE:

International Economies

Student: Hoang Van Nhuan

ID: 12-00879

COURSE CODE

ECO601
Instructed by: Prof. Svetlana Mitereva

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[INTERNATIONAL ECONOMIES]

A Research Project Presented in Partial

Fulfilment of the Requirement for the
Degree Master of Business
Administration

Submitted by: [Hoang Van Nhuan]

UBIS

[05], [2019]

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Executive Summary

In 10-year WTO membership with Vietnam is not a long journey but it has brought both
opportunities and challenges to Vietnamese enterprises. The proportion of trade and services is
kept at 40-45% of the nation’s GDP.

The competition pressure also helped domestic enterprises grow stronger. Many firms have
proactively sought markets and boost linkages foreign partners to promote exports. To integrate
deeper into the international market, domestic businesses need to draw up investment strategies,
develop brand names, competitive edge and production equipment while applying energy-saving
and environmentally friendly technologies.

To continue developing sustainably, experts said Vietnam also needs breakthrough reforms,
especially addressing shortcomings in the one-door mechanism and reforming the State
administrative apparatus. In addition, the country is also advised to improve the efficiency of the
market inspection and control and building a healthy business environment.

In this mission I will do research on the impact of tariff on the car industry in general and
Hyundai Vietnam in particular. Besides, I also made some proposals to the government and
Hyundai Vietnam in orientating development car industries in long term period.

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Acknowledgement

It is my pleasure to thank those who had made this research possible.

The first person I would like to express my sincere gratitude is my lecturer. Without his invaluable
advice, patience, encouragement and guidance rendered to me, I would not have been successful
in this important research.

I would like to offer my special thanks and love to IBM institute, my family members and dearest
friends who had supported me from the beginning to the completion of this research. This research
would not have been possible without their honest feedbacks.

Sincerely,

Hoang Van Nhuan

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Table of content

1 Country and Company overview ...................................................................................................... 7

1.1 Viet Nam’s path to WTO ......................................................................................................... 7

1.2 Road map and Vietnam WTO commitments ............................................................................. 7

1.3 Opportunities and risks after completed WTO .......................................................................... 8

1.3.1 Opportunities .................................................................................................................... 8

1.3.2 Difficulties and Challenges ............................................................................................... 8

2 THE WTO REGULATIONS INFLUENCE TO MY COMPANY .................................................. 11

2.1 WTO basic overview .............................................................................................................. 11

2.2 Influence to Car Industry ........................................................................................................ 13

2.3 Influence to My Company ...................................................................................................... 16

3 Proposed Solution .......................................................................................................................... 18

3.1 Solution to Take Opportunities ............................................................................................... 18

3.2 Risk Management Solutions ................................................................................................... 19

3.3 Strategic Orientation of Huyndai Viet Nam ............................................................................ 20

4 Conclusion .................................................................................................................................... 20

References ............................................................................................................................................ 22

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List of Figures

Figure 1, Huyndai Thanh Cong Market share in Vietnam 2018 ................................................. 11

List of Tables

Table 1, , OEM’s ASEAN Automobile Production Capacity .................................................... 14

Table 2, Vietnam’s average tariff rate in VJEPA(%) ................................................................. 16

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1 Country and Company overview

1.1 Viet Nam’s path to WTO

January 4, 1995. Viet Nam’s application for WTO membership was submitted to the General
Council.
January 31, 1995. The WTO set up a working party to consider Viet Nam’s application, whose
presiding chair was Eirik Glenne, Norway’s ambassador to the WTO.

August 24, 1995. Viet Nam submitted a memorandum on the country’s foreign trade policy to the
WTO Secretariat.

1998–99. Viet Nam attended meetings to answer questions raised by the working party members,
which included representatives from other WTO countries.

Early 2002. Viet Nam sent reports on tariffs and services to the WTO and started bilateral
negotiations with a number of WTO members.

October 9, 2004. Viet Nam and the EU reached agreement on Viet Nam’s accession to the WTO.
June 9, 2005. Viet Nam and Japan reached a basic agreement on Viet Nam’s early entry to the
WTO.
June 12, 2005. Viet Nam sent a large group of delegates to Washington before Prime Minister
Phan Van Khai’s official visit to the US, with determination to conclude bilateral negotiations on
Viet Nam’s accession to the WTO with US leaders.

July 18, 2005. Viet Nam and China reached agreement on opening markets.
May 31, 2006. Viet Nam concluded bilateral negotiations with the US, the last of the 28 countries
asking to have bilateral talks.

October 26, 2006. Viet Nam concluded multilateral negotiations at the WTO.

1.2 Road map and Vietnam WTO commitments

Vietnam's commitments to the WTO are presented in the document joining WTO of Vietnam.
Document of the instrument of accession to the World Trade Organization (WTO) of Vietnam has
been the WTO General Council approved on 07/11/2006, expressed through the commitment as

- Commitments on trade in goods

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- Commitment to open services markets.

1.3 Opportunities and risks after completed WTO

1.3.1 Opportunities

The joining of Vietnam into the World Trade Organization (WTO) is attracting great attention
from the local people as well as WTO members. For Vietnam, admission to WTO manifests the
country’s integration into the world economy and the international market. However, along with
opportunities, there are challenges for Vietnam in joining the global trade organization.

WTO was established in 1995. Currently the organization has 148 members countries and tens of
others are applying for being granted membership status.

Vietnam joins the WTO to avoid being solitary in the business world. It is in conformity with the
current trend of international trade and Vietnam’s interests of national construction and economic
development.

Thanks to the removal of tariff barriers and quotas, Vietnam can have access to latest technological
advances for national modernization and industrialization.

For Vietnam now, promoting exports is the decisive factor for the success of industrialization and
modernization. Exports bring home capital to import advanced equipment and technologies and
other products of an intellectual-based economy. Being admitted to the WTO, the tariff barriers
will be removed or reduced, so as the quotas. These are very important for Vietnam.

Currently, Vietnam’s exports turnover stands at around US $30 billion, accounting for half of the
country’s GDP. Thus, the benefits are not small at all.

Those products that Vietnam has advantages such as textiles and garments, footwear, coffee,
rubber, processed seafood, furniture, electronics appliances will have more opportunities on the
world market.

1.3.2 Difficulties and Challenges

Firstly, integration but not dissolvent, Vietnam integrates but has to maintain national identity as
well as the regime’s identity, always following the policy of independence and self-reliance in
economic development.

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Secondly, once tariff barriers are reduced for removed and quotas abolished, competition are more
severe. Products of low competitiveness could not be exported. They will be defeated by foreign
products. Thus, domestic businesses might face bankruptcy. Unemployment rate might rise.

This requires Vietnamese enterprises to do their utmost to make reforms so as to produce products
of high quality, high competitiveness and reasonable prices.

This means the increase in development quality of Vietnamese economy.

1.3.3 Company overview

Established in June 2009, Hyundai Thanh Cong Vietnam Auto JSC has become the official
distributor of tourist, commercial and sports motorcars of the Hyundai Motor Company in
Vietnam.

With a long-term vision on providing customers with the best services and step by step increasing
the domestication rate under the policy of Vietnam’s government, Hyundai Thanh Cong Vietnam
Auto JSC built its first motorcar manufacturing and assembling factory in Gian Khau.

Industrial Zone, Gia Vien District, Ninh Binh Province.

Covering a total area of 62ha, the factory, worth over 650 billion VND, has a designed capacity of
40,000tonnes/year and a synchronous and modern facility with specialized workshops of welding,
ED painting, tourist motorcar and lorry assembly, a quality checking line, a showroom, a centre
for warranty services and other auxiliary works.

Nguyen Thuong Tin, Director of the company’s Ninh Binh Branch, said: “In recent years, the
motorcar market in Vietnam has about 10 motorcar manufacturing and assembling enterprises.

However, thanks to modern technology and high competitiveness in terms of price, quality,
designs and usefulness, the motorcars manufactured in the company’s factory in Ninh Binh
Province meet the demand of customers.”

Compared with the same kind products of other motorcar manufacturers, the strength of the
factory’s products is that the company applies the most modern technology of dipping rust-
resistant paint and automatically stirring and mixing paint to ensure the durability, shine and beauty
of paint colours as well as the durability of the motorcars’ cover. The factory also uses optical
machines to check welds, ensuring the accuracy and improving the durability of products, suitable

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to the geographic conditions and harsh climate in Vietnam. The whole manufacturing and
assembly process is strictly supervised by a staff of 600-700 skilled workers who were trained in
Malaysia. During peak hours, the factory manufactures about 500 cars/month and the workers
must work in extra shifts to meet the demand of customers.

At present, the factory successfully manufactures and assembles luxurious tourist motorcars, such
as Hyundai Avante, Huyndai Veloster with three doors and Hyundai Eon, and continues
distributing imported motorcars of Hyundai Auto Company, including Hyundai i10, i20, i30,
Tucson, Sonata and Santa Fe which are favorites in Vietnam’s market.

In 2010, the company’s product was ranked third in terms of “the satisfaction of customers with
new car quality” by the world’s leading motorcar magazine, J.D. Power. In 2011, in a survey held
by J.D. Power, the company’s product ranked first in the above criterion, surpassing Toyota and
Honda. It is now considered one of the leading enterprises in the industry of manufacturing,
assembling and distributing imported motorcars in Vietnam.

At present, the image of small and smart motorcars with the brand name “H” of the company has
become very familiar to the Vietnamese.

With the target of becoming the leading enterprise in the motorcar industry in Vietnam, in its
development strategy, the company continues to keep the title of being a manufacturer of high
quality of motorcars which are the favourite product of the Vietnamese. Besides, it manufactures
other products, suitable to the income of the great majority of people, contributing to the
development of the economy, science and technology in Vietnam.

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Figure 1, Hyundai Thanh Cong Market share in Vietnam 2018

2 THE WTO REGULATIONS INFLUENCE TO COMPANY

2.1 WTO basic overview

In a nutshell, the World Trade Organisation (WTO) is an international organisation aiming to

reduce all barriers to trade.

It achieves this by acting as a forum for countries to constantly re-negotiate to remove blocks they
have on trade. These re-negotiations are called Rounds.

Barriers to trade include tariffs (taxes) on products or services coming into a country, as well as
added tariffs/taxes that a foreign product or service might pay within a country.

Barriers also include other blocks on trade like licencing or packaging requirements
or subsidies that a government might give to an industry like agriculture or the arts.

Set up in 1995, the WTO is a young organisation. Before this the GATT (General Agreement on
Tariffs and Trade) co-ordinated international trade but did so without a permanent organisation to
support it.

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How the WTO runs

Unlike other international economic organisations like the International Monetary Fund or
the World Bank Group, each country has one vote though decisions are generally made by
consensus. (The exception is the EU which has a block vote of 28, soon to be 27.)

The WTO has 164 members. The EU is the only organisation to be a member of the WTO. All EU
member states are also individual members but they always vote as the EU bloc. All other members
are states or, like Hong Kong, have separate membership of the WTO to their status within a
country.

Trading on WTO terms

The WTO does not have a set of minimum tariffs or rules with which each country must comply.
Instead, it has two main elements.

First, it requires each country to set out a list of its tariff rates for each product and service. Each
tariff set for a product and service is subject to negotiation with each other member of the WTO.
Whether another member seeks to negotiate these tariffs depends upon whether they have an
interest in that product.

For large trading states like the USA, China or Brazil these lists or schedules can be extremely
long. The EU has a single schedule for all its members and it is quite extensive. All of these are
available on the WTO website.

Second, the WTO requires states to apply their individual schedules, and non-tariff rules on
packaging or licencing etc., in a non-discriminatory way.

Most-Favoured Nation and National Treatment rules

This non-discrimination breaks down into two basic rules. The first, Most-Favoured Nation, means
you must give whatever your best treatment is for foreign products coming into your country to
all members of the WTO. For example, if a country cut the tariff on imports of copper from 10%
to 5% for exporters from one country, it would have to charge 5% to every other country as well.

The second basic rule, National Treatment, means that you must give your best internal conditions
to foreign products or services. For example, if you do not require domestic products to have a
warning as to sugar content in food you cannot require it of foreign products. These requirements

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are set out in detail in the WTO’s core treaties: GATT (General Agreement on Tariffs and
Trade), GATS (General Agreement on Trade in Services) and TRIPs (Trade Related Intellectual
Property Rights).

But there is a big exception. If you are in a customs union or free trade area, for instance you can
treat products and services from the customs union better than you treat other WTO members. The
EU is an example of a customs union.

What happens if a country breaks WTO rules?

The WTO also has a busy Dispute Settlement Body (DSB). Here countries can take
cases against other countries they think violate WTO rules.

Some DSB hearings are public but they are generally held in private. The findings of the DSB
are publicly available. The EU and the United States followed by China, India, Brazil and
Argentina are the most common participants in disputes. When a country is found in violation of
WTO rules it is required to change its laws to comply with them.

If countries choose not to do so, the winning state can take retaliatory action in the form of trade
sanctions such as introducing higher tariffs.

The main purpose of the WTO is to be a forum for negotiation. However, negotiation Rounds can
take a very long time. The latest Round called Doha, which started in 2001, recently ended
with minimal success.

While the WTO is seen by its members to work well, it is worth bearing in mind that its
negotiations are long and arduous. As an organization, it facilitates world trade but it does not set
the tariff or tax rates that make trading expensive. Its members and their willingness to negotiate
with each other dictates how successful or not the organization will be in the future.

2.2 Influence to Car Industry

Presently, the Vietnamese automotive industry is protected by import tariffs (5– 40% from
ASEAN, 15–70% from World Trade Organization (WTO) members) on completely built-up units
(CBUs). To mitigate such tariff barriers, many original equipment manufacturers (OEMs) set up
production sites in Viet Nam during the 1990s. While the country had only started in 1986 to
liberalise its planned economy under the so-called Doi Moi (meaning renovation) policy, the
market was – and still is – regarded as having significant growth potential due to Viet Nam’s large

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population yet low vehicle stock. Thus, today there are 14 OEM brands with local passenger car
production in Viet Nam, despite the fact that only 244,914 units were sold in 2015. 1 It must
therefore be concluded that until now, the market has not fulfilled carmakers’ expectations and
that the sales volume of individual brands is fairly limited by international comparison. Against
this background, it is not surprising that OEMs such as Ford and Mitsubishi have considered
closing down their Vietnamese plants and shifting to imports from regional production hubs,
especially Thailand. Without tariff protection, production in Viet Nam is more expensive than
imports of finished vehicles so that manufacturers with multiple production sites in ASEAN have
strong financial incentives to restructure production capacities within the region. Besides import
tariffs on parts and components, one reason for the high production cost is that the scale of
Vietnamese plants is limited in comparison to those in other ASEAN Member States

Table 1, OEM’s ASEAN Automobile Production Capacity

The above table clearly illustrates that production capacities of almost every carmaker in the region
are concentrated in Indonesia and Thailand.2 While Malaysia occupies a mid-level position, the
Philippines and Viet Nam have low capacities and generally only conduct completely knocked-
down (CKD) assembly. Remaining ASEAN members have either none or insignificant production
capacities that can only be explained as part of market-searching activities of certain OEMs.

It follows that Philippine and Vietnamese operations are in a comparably weak position in an
industry where economies of scale are an important factor. While both markets have rather large
sales potential, it is questionable if carmakers will maintain uncompetitive production sites and

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thereby accept lower profitability. Interviews conduct and media reports have found that the
production cost per unit is significantly higher in Viet Nam than in other ASEAN Member States:
In case of an interviewed company which assembles CKD kits of one B segment3 passenger car
model in both Malaysia and Viet Nam, the cost per unit was US$5,000–6,000 higher in Viet Nam.
4 Ford has publicly stated that the cost of local production was 20% higher than CBU imports
(Nikkei Asian Review, 2014). Despite this rather problematic position vis-à-vis competing
manufacturing countries in the region, plant closure is not the only option. During field research,
one OEM stated that it was considering expanding its Vietnamese production capacity to 100,000
units per year. While the carmaker pointed out that it was currently unclear if this plan could be
implemented, this case illustrates that there is another option to deal with low production
capacities. This case is closely related to the main topic of this paper: Interviewees stressed that
implementation was dependent on local sourcing, because this is the main way to become cost-
competitive with another ASEAN

manufacturing sites operated by the carmaker. Regarding its plans to increase production capacity,
the company currently monitors 100 firms as possible future suppliers. Among these, around 20%
are Vietnamese enterprises. However, interviewees pointed out that there were several conditions
that have to be met to enable localised production: First, the OEM needs to identify parts suppliers
which can locally produce components at a price that is globally competitive. Second, the carmaker
pointed out that it further considers which technological level it should require from suppliers.
This mainly revolves around the question whether the OEM wants suppliers that can produce
components without detailed drawings, i.e. have design-in capability, or if suppliers capable of
producing parts according to drawings supplied by the carmaker are sufficient.5 Interviewees made
clear that they strongly prefer the former and would only consider the latter due the relatively
undeveloped nature of the Vietnamese automotive supplier industry. Last but not least, increasing
the production capacity would have to be achieved by 2018 in order to be competitive against
imports from ASEAN, including those from the OEM’s other plants in the region. Thus, while the
carmaker is interested in developing and using local suppliers, suppliers’ technical and process
management development would have to reach sufficient levels in a limited time frame. Issues
identified by this particular carmaker can be generalised for the whole Vietnamese automotive
supplier industry. It appears necessary especially for local enterprises to improve their
technological and managerial capabilities in order to join supply chains of global OEMs. If these

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conditions cannot be met by the time the AEC becomes fully implemented in 2018, carmakers
may close down their Vietnamese plants and concentrate production in existing manufacturing
hubs in the ASEAN region.

Table 2, Vietnam’s average tariff rate in VJEPA(%)

2.3 Influence to My Company

If applying of tariff barriers will expose liberalized market business will be more transparent, tariff
barriers will be becoming more diverse, more complicated, more advanced are the main threats for

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the company. The company have to work with resistant competition with imported items, with
cost decreasing. Importing tariffs car reduced to zero% is not a little influence to automobile
installation line is recently the company's physical.

Hyundai Thanh Cong have to compete with competition imports because of tariff decreasing CBU
imported vehicle finance value will not keep big as much as ever. It explains that the automotive
industry in Vietnam in general and in particular the automotive industry will have small chances
improve the competitiveness of the existing pressure of car and vehicle imported from ASEAN
countries and big firms in the world when import tariffs drop down to 0%.

After becoming a member of WTO, the automotive industry will not be the privilege and protection
from the State anymore and all will have the identical car field about tax. Win or lose will depend
on the ability and the "maturity" of the manufacturing and assembling enterprises. Currently
Hyundai Thanh Cong Group also understood, according to which direction mainly focuses on the
manufacture and assembly of cars with large output, competitive advantage.

* Chances:

- We have many chances to export our car to some countries that we have good advantage such as
US, EU, China… because these countries must remove protected barriers that they use for import
car to their countries. From that we can approach many enterprises to introduce and deliver our
cheap and high-quality car to their abundant car market

- New coming of company that supply spare part for OEM such as truck, buses, cars… from that
we can buy spare part from them with cheaper price compare in the past.

- In The process of WTO accession, the State less intervention in the economy should be an
opportunity for companies to freely invest, produce car. That is a big opportunity for us to learn
new advanced technology from developed countries and can hire with a good experienced
engineer.

- In general, enterprises have to enhance their competitiveness in order to survive and develop,
which requires flexibility and sensitivity to market make the company more dynamic, better
organizational structure, technical improvements, elevate the company to achieve the desired
effect.

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* Risks:

- Hyundai Thanh Cong company, when accessing to international market, have to compete with
those from more developed countries. In a backward automobile economy that is characterized by
the exploitation of spare resources, high technology products are making a large proportion in
Vietnam's exports (57% in 2003). A rise in proportion of industrial goods and heavy industrial is
mainly focused on processed and assembled goods that have low added value due to advantage in
low labour cost. High added value exports made up a small proportion. Structure of Vietnam’s key
exports does not much differ from those coming from China and ASEAN, but they lack specialty
and service that cause low competitiveness due to rapidly increasing cost

- In the domestic market, Hyundai Thanh Cong has to face with a lot of problems rising from the
liberalization of economic sectors in the committed integration process. Many industrial and
domestic products are less competitive compared with those imported from EU, US, Japan, China
and ASEAN. For instance, the price of some domestically produced goods is higher than
international price: Brake 22%, Wheel 13%, Specific Paint 14%, Chair 23%.

- Technological level of our company is more backward compared with regional countries. Most
enterprises are at the stage of technological absorbing through importing machines and equipment.
Technological and knowledge content in Hyundai Thanh Cong goods is low, products are mainly
based on capital and labour.

-Tariff reduction should increasingly competitive environment more intense. Car selling price for
domestic production has no competitive advantage today.

3 Proposed Solution

3.1 Solution to Take Opportunities

Firstly, car industrial in Vietnam should be further improved to balance the benefits between
domestic and international enterprises thus relieving the serious opposed situations and building a
strong bridge between them. That means we need not only the economic attainments of the new
Tariff, but also his political means and skills. Available methods. Stop decisions made within a
small amount of people to let the negotiations become wider and more transparent, listen to more
opinions of international company; increase the right of speech of them in car prodution especially

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for emerging nations, and when appointing administrative officers, give more care to developing
countries based on equality.

Second, research and analysis function and seek for new ways to solve important problems.
Furthermore, stick to Hyundai’s initial aims, work on trade liberalization and global economic
development, and to work for the better for the world. When talking about the fundamental and
directive issues, pay attention to the car market’ demands at the same time. Also, the new Tariff
must properly deal with two different relationships. One is the relationship between traditional and
new emerging topics. The other is the relationship between topics that developed and developing
countries are concerned about. Now we focus on the introduction of new product lines, senior
suitable for customers with high incomes to be able to develop more clients for the company.

Finally, face the challenges of FTA actively, take control of regions normal trade agreements,
make a balance between regional trade agreements and multilateral trade agreements, actively
drive the Doha Round negotiation ahead, and strengthen the world’s confidence in WTO’s
multilateral trade regulations. To do that we set a goal of quality service is the first criteria to attract
customers and confirms Hyundai level in Vietnam market. Hyundai constantly investing to
upgrade and expand the system showrooms and workshops. Systems dealer showroom and tourism
are built of standard synchronization and standard Hyundai, combinations for each brand. These
standards are designed to create an overall image and brand synchronization about Hyundai
trademark passenger vehicles in customers' eyes. This is also a way to increase the degree
recognition and familiarity of the brand, which gained the appreciation of customers

3.2 Risk Management Solutions

The whole people, especially those working in the business field, including industry, car
production and services, should be fully aware of the WTO, the necessity to join the WTO as well
the opportunities and challenges the integration might bring.

Efforts should be paid into building a sound business environment in the spirit of ensuring
independence and self-reliance, socialist orientations, active integration into the international
economy. These include supplementing, adjusting and amending laws and policies; increasing the
car quality and effectiveness of State-owned enterprises and encouraging the development of
private sector.

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All branches in Hyundai company must pay greatest efforts to increase the competitiveness of their
products, even though they are for exports or for sale on the domestic market.

Negotiations must be made on the basis of thorough understanding of WTO regulations, the
situations of the world market and the markets and economic policies of major partner-countries
in WTO as well as the policies and laws of Vietnam, so as to make the most advantages of joining
the WTO.

In addition, on orientation until 2022, the Company continued development of human resources
with the staffing plan for 2022 is 11,000 officials and employees. Particularly complex will recruit
2200 people to meet the demand for increased production needs customer service end of the year,
bringing the total number of personnel at the complex to the end of 2022 to nearly 6500 people

3.3 Strategic Orientation of Hyundai Viet Nam

- Thanh Cong Group's vision is to become Vietnam's leading Investment - Trade - Industry Group,
sustainable development focusing on three main strengths: Car manufacturing, Finance, Real
estate

- To continue developing sustainably, Hyundai Vietnam also needs breakthrough reforms,

especially addressing broken tariff barriers in Vietnam and reforming technology production that
not only to make high quality car but also distribute reduce production cost.
- Finally, utilize cheaper labour resources in local and make a good training with long term period
to ensure abundant talent engineer and make creative production factory

4 Conclusion

Become a member of WTO have a play of important role to achieve basic growth when we
approach international economic. Influence of WTO joining duration is making the significant
efficiency in domestic market with rearranging the possibility of aid or assistance with desired
results following new regulations. WTO will bring for worth for all people in our country, by keep
clearer action with customer through quality and price respectively. For example, 10 years after
its accession to the WTO, the opening of the Vietnamese economy has increased from 144 percent
in 2007 to 173 percent in 2016. In 2012, Vietnam recorded a trade surplus after a long period, and
maintained the surplus until 2014. In 2015, the trade deficit re-emerged and stood at US$3.6.

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In contrast, with many opportunities we also have many challenges such as: many product, services
attack on Vietnam market with high quality and cheaper than before because removal import tariff
as WTO rule with all countries.
To solve these issues and earn benefit the advantages and opportunities and potential risks,
challenges from joining the WTO, Vietnam government in general and Hyundai in particular have
to change following effective development and continuously building perfect system such as
labour, tariff, environment working, domestic environment…
Hyundai Vietnam understood about difficult mission during WTO period, our company have
already oriented to restructure businesses, developing infrastructure services and green logistics as
well as increasing investment in science-technology to create products with high added value for
exports.

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