Business Foundation

UNDERSTANDING BUSINESS ENVIRONMENT - A2

A Comprehensive Industry Report for The Vietnamese Market for Major Multinational Corporation

DETAILED INSTRUCTION

 

                I.                    Assessment Recap

                Length: 2,000 words total (excluding references)

Consulting Team Role: As a new hire in the consulting team.

Client: Major multinational corporation.

Project Objective: Prepare a business economics analysis report.

Client's Focus: Establishing a business in Vietnam.

Task: nlResearch Areas:

             Market analysis.

             Competition assessment.

             Evaluation of potential risks and rewards.

Recommendations: Provide strategic recommendations for the MNC's venture in Vietnam.

Suggested structure:

1. Introduction

2. Market Analysis

3. Industry Analysis

4. Company Analysis

5. Recommendations and conclusion

             II.                    Definition/ Slide summary

Incentives: are factors that motivate a person to act or exert effort.

Marginal Revenue: is the change in total revenue a firm receives when it produces one additional unit of output.

Profit-maximizing rule: states that profit maximization occurs when a firm chooses the quantity of output that equates marginal revenue and marginal cost, or MR = MC.

Behavioral economics is the field of economics that draws on insights from experimental psychology to explore how people make economic decisions.

Bounded rationality: (also called limited reasoning) proposes that although decision makers want a good outcome, either they are not capable of performing the problem solving that traditional economic theory assumes or they are not inclined to do so.

Framing effect: occurs when people change their answer depending on how the question is asked (or change their decision depending on how alternatives are presented).

           III.                    Detailed outline

                I.                    Introduction (suggested 150 words)

You need to choose one of the Top 5 Fintech companies with the best growth in Vietnam in 2022 provided by the article including: FIIN CREDIT, MOMO, SHOPEEPAY, ZaloPay, VNPAY

                Briefly overview of the company and industry being analyzed

                Fintech Growth Post-COVID-19:

                Significant development in the Fintech industry over the past two years.

                Driven by changes in consumer behavior, especially favoring contactless payments.

                Fintech Landscape in Vietnam:

                Remarkable maturity in the Vietnamese Fintech market.

                Attraction of substantial investments from both domestic and foreign investors.

                Dominance of the company:

                Example:

                In 2023, MoMo has achieved local market dominance in Vietnam's e-wallet sector.

                Emerging as a direct competitor for new entrants in the Fintech industry.

Example:

The Fintech industry over the last two years has experienced a massive leap in development to accustom to the new socio-economic environment shaped by the Covid-19 pandemic. Consumer behaviour has changed notably in favor of Fintech companies and their services, noteworthy contactless payment. In Vietnam, the Fintech market has matured remarkably and attracted a myriad of domestic and foreign investors. Prominently, the year 2023 marks the dominance in local market share of Vietnam’s e-wallet service MoMo, which now became a direct competitor for any firm intending to join the industry.

                Explanation of the purpose and scope of the report

Report Structure:

             Divided into four major parts.

                Analysis of global and Vietnamese Fintech markets. (FinTech - Vietnam | Statista Market Forecast. )

                Comprehensive examination of MoMo's operations.

                Recommendations for potential challenges and opportunities.

             A brief conclusion summarizing key findings.

Example:

This report includes four major parts, with the first three analyzing, providing an overview of the Fintech market in Vietnam and worldwide, featuring an analysis of MoMo's operation from a multi-dimensional aspect. The remaining part suggests recommendations for challenges that Fintech firms may encounter besides their opportunities and gives a brief conclusion.

 

             II.                    Market Analysis (suggested 400 words)

1.               Overview of the market, including size, growth rate, and major players

                Rapid Growth of Fintech in Vietnam:

                The Fintech market in Vietnam is experiencing rapid growth.

                Emerging as one of the most competitive markets in Asia.

                Timeline of Fintech Development:

                Fintech made its appearance in Vietnam in 2017.

                Significant progress observed by the year 2020.

                Progress Indicators:

                Progress evident in quantity, quality, and diversity of products and services.

                Ability to attract substantial investments.

                Categories in Vietnamese Fintech:

                The Vietnamese Fintech market is categorized into five main segments:

(a)            Personal Finance

(b)            Alternative Financing

(c)            B2C Financial Services Marketplaces

(d)            Insurtech

(e)            Digital Payments

                Focus Areas for Fintech Companies:

                Primary focus areas include payments through e-wallets.

                P2P Lending is another significant focus within the Vietnamese Fintech landscape.

Example:

The Fintech market in Vietnam is rapidly growing, making it one of the most competitive markets in Asia. Fintech appeared in 2017 and has experienced significant progress by 2020. This progress is reflected in the leverage in quantity, quality, and diversity of products,  services, and the ability to attract investments.

The Vietnamese Fintech market is divided into five main categories, Personal Finance, Alternative Financing, B2C Financial Services Marketplaces, Insurtech, and Digital Payments. The primary areas of focus for Fintech Companies in Vietnam are payments offered through e-wallets and P2P Lending.

1.               Discussion of market structure and competition

                Fintech Startup Growth:

                Significant growth is observed in the number of Fintech startups in the Vietnamese region.

                Overview of Fintech competition landscape

Example: Vietnam Fintech Report (2020)

                The Vietnam Fintech Report of 2020 indicates a notable increase in Fintech companies:

                39 companies in 2015

                44 companies in 2017

                124 companies in 2019

                This represents a remarkable 179% increase between 2017 and 2020.

Example: MasOffer Fintech Survey (2021)

                A survey by MasOffer Fintech in 2021 identified 154 Fintech companies operating in Vietnam by the end of the year.

                Focus Areas:

                Among the 154 companies:

                37 companies are focused on payment services.

                22 companies are focused on P2P Lending.

                Another 22 companies are dedicated to Blockchain and Cryptocurrency.

Example:

The growth of this market is evident by the increasing number of Fintech startups established in the region. According to the Vietnam Fintech Report of 2020, the number increased from 39 companies in 2015 to 44 companies in 2017 and 124 companies in 2019, representing an increase of over 179% between 2017 and 2020. MasOffer Fintech conducted a survey in 2021, discovering that by the end of the year, 154 companies operated in the Fintech field in Vietnam. Of these, 37 companies focused on payment services, 22 companies focused on P2P Lending, and another 22 were dedicated to Blockchain and Cryptocurrency.

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