Research On The Strategy Of Developing Commercial Vehicles In China

Since 1986, after Vietnamese Communist Party had proposed the "Reform and Opening" policy at the Sixth National Congress, all aspects such as economics, transportation, infrastructures etc have been developed quickly. That is the reason for the rapid development of the commercial vehicle market. China commercial vehicle, with its very good quality and low price entered Vietnamese market and developed rapidly holding most of the market share.The year 2014 and the first half year of 2015 witnessed the earth-shaking changes of commercial vehicles in Vietnam, especially the market for towing vehicles.The thesis carried out an in-depth research on the Chinese commercial vehicle in exploring the Vietnamese market in recent years. Through the research, the author comments on the strengths and weaknesses, threats and opportunities of the Chinese commercial vehicles in the Vietnamese market. The author figures out which strategy and marketing approach can be applied and the organizing form of the market. Consequently, the thesis provides advice for the Chinese enterprises to increase their shares and boost their development in Vietnam.Currently, the commercial vehicle enterprises of China mainly apply the strategy of overall cost headship and flexible approaches in the Vietnamese market.For marketing strategy, they are using production market demand as "high quality and inexpensive product, small profit but quick turnover", it is the way to reach the winning in competitive market.For organizational form of the market, they are choosing indirect, direct export and international treaty. For international treaty, they have used purchase contract and franchise.