VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

TA MINH HA

STUDYING THE COMPETITIVENESS OF THE HANOI BEER
ALCOHOL AND BEVERAGE JOINT STOCK CORPORATION
(HABECO)

Major

: Business Administration

Code

: 9.34.01.01

SUMMARY OF THE THESIS

HANOI, 2019


The work was completed at

GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Supervisor: 1. Assoc. Prof.PhD. Hoang Van Hai
2. Assoc. Prof.PhD. Tran Thi Lan Huong

Reviewer 1: Assoc. Prof.PhD. Bui Huu Duc


growth rate of this industry reached 5.7% - the highest among the 10 countries
with the largest market size [24]. According to the General Statistics Office,
the Beer - Alcohol - Beverage Industry sector contributes annually to the State
budget with impressive figures, in 2018, the whole sector paid over VND
50,000 billion to the State budget. In addition, the industry creates jobs for a lot
of workers with relatively high and stable income.
According to statistics of the Vietnam Beer-Alcohol-Beverage Association, as
of 2018, the country has 110 breweries located in 43 provinces and cities.
According to the planning for development of Vietnam's beer, alcohol and
beverage industry by the Ministry of Industry and Trade to 2025, with a vision
to 2030, by 2020, the country will produce about 4.1 billion liters of beer; by
2025, the beer production scale will increase to 4.6 billion liters; By 2035,
domestic beer production will increase to 5.5 billion liters. In order to develop
beer, alcohol, and beverage industry, enterprises in the industry need to
research enough opportunities to seize and develop, besides, it is vital to be
prepared to deal with increased market challenges. [89]
One of the enterprises having a very good position in this industry is the Hanoi
Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) with over 60
years of establishment and development. The Corporation has experienced
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many ups and downs through many historical periods, gradually made a deep
impression in the minds of customers not only in the Hanoi market but also
nationwide and offerred products to access the regional and international
markets. The main product of the Corporation is beer, with special know-how
accompanying the development of the Corporation. After many years, its beer
still retains the traditional flavor and image in the minds of consumers. With
the 3rd position in the beer industry's share, sales increased steadily over the
years from VND 6,710 billion in 2013 to 7,867 in 2017 with consumption of

Thirdly, the market area of the Corporation is narrowed due to the lack of
investment worthy of expanding the market. In 2014-2017, the company's beer
market witnessed the strongest growth, especially in the Southern region, but
this market share is gradually being occupied by other companies, especially
by a very strong competitor known as Sabeco, and the Northern market has
also decreased. This is alarming because the North market has been the
company's main market for many years. Another problem is that the high-end
market segment is being occupied by foreign investors. In 2015, the
Corporation launched Truc Bach beer product to enter this market, although it
has received good feedback but it has not yet brought significant results. In
2018, the Corporation's market share and consumption area continued to be
narrowed to 15% of the market share compared to 17% in 2017, this is a sign
of the decline in the competitiveness of the Corporation.
Because of the above reasons, the PhD student decides to chose the topic:
"Studying the competitiveness of Hanoi Beer Alcohol Beverage Joint Stock
Corporation (HABECO)" as the topic of the dissertation.
2. Study purposes and objectives
2.1. Study purposes
Study and propose solutions to improve HABECO's competitiveness by
2025, with a vision to 2035.
2.2. Study objectives
From study purposes, the dissertation focuses on the following tasks:
- Systematize the theoretical issues on competition and competitiveness,
clarify the meaning of improving the competitiveness of enterprises. Develop
criteria framework to evaluate the constituent elements of competitiveness.
- Analyze the actual situation and the components of the competitiveness
of HABECO.

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The dissertation is based on a combination of the following study methods:
- Method of descriptive statistics

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The dissertation used many sources of data from the General Statistics
Office, Ministry of Industry and Trade, Vietnam Beer - Alcohol - Beverage
Association, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation,
previous documents, newspapers and study reports. These documents were
gathered by the PhD student to analyze and assess the reality of the
competitiveness of HABECO.
- Method of synthesis, analysis, comparison
In addition to the documents collected from the Corporation and its
subsidiaries, the PhD student also collects secondary documents from specialized
newspapers, magazines, documents from seminars and websites whose content is
related to the topic.
- Method of interviewing experts: The author collected opinions of
experts, researchers in the field of competition through seminars and
exchanges. Focus on meeting and collecting opinions of the leading officials in
the Corporation; then, built up an appropriate questionnaire.
- Methods of investigation and survey
+ The author conducted a survey of 400 employees of Hanoi Beer Alcohol
and Beverage Joint Stock Corporation (HABECO) and 300 customers who are
HABECO's target markets.
+ Customer survey data through surveys and interviews conducted in the
period from April 2018 to October 2018
5. New contributions to the science of the dissertation
Firstly, the PhD student offers 6 elements that make up the
competitiveness of HABECO: (1) Management capacity; (2) Financial

Competitiveness of HABECO. From which there have been findings found in
term of practical significance on the Competitiveness of HABECO, used as the
basis for desging solutions and recommendations.
Thirdly, the dissertation is a reference for researchers, students, and those
who are interested in the Competitiveness of HABECO. Business
administration manager and state management agencies therefore draw lesons
and apply in making strategic planning and improving competitiveness.
7. The structure of the Dissertation
In addition to the introduction, conclusion and references, the dissertation
has 4 chapters
Chapter 1: A summary of the situation being investigated that related
to the topic of the Dissertation
Chapter 2: Theoretical and practical basis for enterprise competitiveness
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Chapter 3: Analyzing the competitiveness of Hanoi Beer Alcohol
Beverage Joint Stock Corporation
Chapter 4: Solutions and recommendations to enhance the
Competitiveness of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation
Chapter 1
A SUMMARY OF THE SITUATION BEING INVESTIGATED
THAT RELATED TO THE TOPIC OF THE DISSERTATION
1.1 An overview of the research works focusing on competitiveness
1.1.1 Foreign documents on competitiveness
1.1.1.1. The concepts of competition and competitiveness
The concepts of competition and competitiveness have been around for a
long time. There are a great number of researchers interested in bringing out
different concepts but have not yet to come up with a unified concept of
Competitiveness. Competitiveness can be considered and studied under 4

competition of domestic and foreign brewing companies in the Japanese beer
market.
1.1.2. Domestic studies on competitiveness
Nguyen Viet Lam (2014), "Discussion the methodology to determine the
Competitiveness of Vietnamese enterprises " [39] proposed a list of typical
criteria and component elements that constitute the Competitiveness of
enterprises. The list includes 2 groups, 10 criteria and over 20 different
elements. Group 1 consists of the criteria related to production and business
efficiency: Including sales and market share; Production and business results
include 5 elements: Costs per VND 1,000 of net revenue, profit per VND 1,000
of net revenue, coefficient of return on capital employed; coefficient of
profitability of assets, profitability of equity. Group 2 consists of the criteria
related to business capacity in the value chain of enterprises and creating value
for customers which includes 8 indicators: Capability of capital, human
resources, scientific and technological level, management and innovation
ability, marketing planning ability, marketing mix capability, ability to provide
services, brand power of enterprises. In addition, the author also presents the
methods of assessing and measuring the value of indicators as well as
qualitative and quantitative factors such as the method of expert interviews and
appropriate audience interviews. The article also mentioned the way to
determine the weights of the criteria by expert method, multivariate regression
method, and general method. This is one of the articles giving a complete set of

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criteria as well as methods to evaluate the Competitiveness of enterprises and is
a very good basis to use in this dissertation.
1.2. An overview of the research materials that focus on alcoholic beverage
and soft drinks industry as well as Hanoi Beer-Alcohol-Beverage Joint


the industry statistics have not been summarized and analyzed thoroughly in a
scientific work. A number of related works have not been studied in the
perspective of enterprise management, therefore, this is the gap for the doctoral
student to further clarify in the dissertation.
Fourthly, there is a lack of research works on HABECO and the
Competitiveness

of

this

Corporation.

Quantitative

research

on

the

Competitiveness of HABECO is not much, so the mission of the PhD student
is to rely on the framework of quantitative analysis and research to suggest
recommendations and solutions.
The recommendations and solutions for the industry are largely through
reports, not based on the enterprise management platform on competitiveness.
Therefore, the author offers research directions for the dissertation based
on the gaps found:
- Proposing a model of components constituting the Competitiveness of

but to go their own ways and make their products unique compared to all
others, to have their own market, with high sales and growth but without
rivaling against one another.
2.1.2. Benefits for competing
Benefits for competing can be superior traits that the enterprise has or
creates, so as to make products or traits superior than the rivals and gain higher
sales in the market.
2.1.3. Competitiveness
The author presents the concept of competitiveness of Beer-AlcoholBeverage enterprises: “Competitiveness of beer-alcohol-beverage enterprises
are shown in joint improvement of the resources of the enterprises, aiming to
make products of outstanding and impressive quality, flavor and color, to
satisfy the customers more than the rivals.”
2.2. Aspects of competitiveness of beer enterprises:
2.2.1. Governance capacity
2.2.2. Finance capacity
2.2.3. Human resources
2.2.4. Marketing capacity
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2.2.5. Technology and production
2.2.6. Enterprise culture
2.3. Aspects affecting competitiveness
There are many aspects that affect enterprises competitiveness but the
dissertation focuses on aspects that have strong impacts on enterprises in beeralcohol-beverage industry: policies, law, population, consumer tastes,
economy, environmemt, regional culture, rivals, and consumers’ satisfaction.
2.4. Experience on improving competitiveness of some beer-alcoholbeverage enterprises, and lesson learned for HABECO
2.4.1. Heineken International
2.4.2. China Resource Breweries Ltd
2.4.3. Experience of Saigon Beer-Alcohol-Beverage Joint Stock Corporation

will create a friendly, positive, inspiring working atmosphere, encouraging the
working spirit of the members in the company to the max.
Chapter 3
ANALYZING THE COMPETITIVENESS OF HANOI BEER
ALCOHOL BEVERAGE JOINT STOCK CORPORATION
3.1. General view of HABECO
3.2. Analysis results of competitiveness of HABECO
3.2.1 Governance capacity
The survey results show that employees have a high opinion about the
company's leadership, In order to manage and operate the activities well, the
corporation built a system of subsidiaries, associates and affiliates to
implement the company's activities effectively. Every quarter, every year, the
units, subsidiaries and affiliates must send papers, books and reports in full
details about the operation situation to the parent company.
3.2.2. Actuality of finance capacity
Studies show that the financial status of the company is healthy, with good
financial autonomy. The corporation does not suffer from financial imbalance,
does not use borrowed capital, and ensure sufficient finance for its production
and business activities. The total capital of the company has increased steadily
over the years and has no borrowed capital, so the enterprise does not suffer
from much pressure. It is because the state divestment route has not been
completed, so the company still has to focus on solving this financial problem.
3.2.3. Actuality of human resource capacity
Human resources of enterprises show that those with good qualities and
traits such as dynamism, responsibility, etc. and those with long-term working
experience, underestimate the competitiveness of HABECO. Thereby we see
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that the people who have worked for a long time in their businesses have

3.2.4.4. Distribution policy
Distribution is one of the key forces of the Corporation and must be
studied and built for many years. After 60 years of establishment and
development, HABECO has built a tight and synchronous distribution system
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to form a network to bring products to customers in the fastest way and ensure
the quality of products.
3.2.4.5. Mixed promotion policy
This is a good sign, because nowadays customers no longer believe in
advertising programs or recommendations of businesses but often decide to
choose products based on the appreciation of acquaintances or customers who
have used the product, whether through chat or through reviews, comments on
the website of the enterprise or on online sales sites, social networks. This is an
aspect that HABECO needs to pay attention to and focus on exploiting for
more effective communication activities.
3.2.4.6. HABECO brand
The brand identity system of the Corporation is still quite inadequate. The
Corporation has not really invested properly in the process of building and
developing brands, the Corporation is taking positive steps to build a truly
distinctive brand identity system in order to attract the loyal customers of the
Corporation.
3.2.5. Beer production technology
3.2.5.1. Materials
In order to offer a finished product which is a good, cool beer for
customers, beer companies often have a relatively similar beer production
technology. The key to beer quality, taste, smell and color depends on the ratio
of the ingredients.
3.2.5.2. Technology and production

enterprise according to the enterprise
Model

Coefficientsa
Non-standardized
Standardized
factor
factor
B
Std. Error
Beta
0.442
0.287
0.345
0.053
0.295
0.099
0.055
0.079
-0.267
0.054
-0.185
0.160
0.067
0.135

Constant
Finance
Administration
Human Resources


-0.029 -0.855

0.393

0.055

0.456 8.855

0.000

In the study, there are variables with large coefficient β, respectively:
Corporate culture (0.456), Finance (0.259), Human resources (-0.185),
Marketing (0.135) that are factors strongly affecting the competitiveness of the
enterprise.

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3.4. Factors affecting the competitiveness of Beer - Alcohol – Beverage
enterprises
The dissertation has analyzed in depth the factors affecting the
competitiveness of beer - wine - beverage enterprise, which are policies and
laws; Population and consumer tastes; Economy; Nature; Cultural regions;
Competitors; Customer satisfaction. Each factor has different levels of
influence on enterprises.
3.5. General assessment of competitiveness of HABECO
3.5.1. Success
Firstly, the Corporation's management apparatus is formed by leaders who
have both ability and vision, good leadership ability, a new generation of

2017 and continue into 2018.
Secondly, about human resources.
Because it is still a state-controlled corporation, human resource
management activities are still subject to many complicated documents, papers
and procedures, resulting in difficulties in the development activities of the
Corporation.
Thirdly, with reference to Financial activities. Finance of Corporation is
relatively stable, but because Corporation is managed by the State,
expenditures for investment are still limited. That leads to difficulties in
product development operation as well as Corporations’ profit and revenue
increase.
Fourthly, with reference to Marketing activities.
With reference to Marketing, market share of HABECO decreases from
20% in 2015 to 15% in 2018 and has decrease trend, it is worrying sign of
HABECO. About product, HABECO inherently develops about products for
target customers, who are common customers with intimate aroma and cheap
price. However, because of environmental effect, people’s income increase,
customers’ demand is changing towards higher grade beer with price that is
suitable for quality. They push “common” product of HABECO out of
“playground”.
With reference to distribution. HABECO’s distribution network is still
soft, the system of new distribution network has deployed for short-time, which
needs more time to develop, stabilize as well as draw on experience to change
limited sides of this system. Although Corporation’s distribution network
expands from North area to Central area, it focuses in an area, while Sabeco’s
distribution network covers all over the world.
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With reference to promotion activities. According to report about the cost


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Thus, brand’s image of HABECO fades out in mind of loyal customer and does
not approach young customers who are main target market of HABECO.
Fifthly, with reference to manufacture technology. Corporation’s machine
meets current needs, but they want to diversify products, improve the quality,
they should need more devices. This issue still remains because of
Corporation’s finance. Revenue, profit decreased in recent years, so lack of
capital to invest in machine, device.
Sixthly, with reference to corporate culture.
Although, there are signs of material and non-material in corporation, it is
not clear, because corporation does not set corporate culture professionally and
completely. Corporation does not apprehend the aim and the value of setting
corporate culture. Moreover, In addition, the issue of state capital withdrawal
has not been "finalized," has not been negotiated with the partner who wants to
repurchase shares that is the Carsberg company, so that staff is still confused,
does not know the effect of capital withdraw to their works and life or not.
Chapter 4
SOLUTIONS AND RECOMMENDATIONS TO ENHANCE THE
COMPETITIVENESS OF HANOI BEER - ALCOHOL - BEVERAGE
JOINT STOCK CORPORATION
4.1. Opportunity, challenge to HABECO and develope orientation in
coming time
4.1.1 Opportunity
4.1.2 Challenge
4.1.3 Development trend of Vietnam Beer Industry in coming time
According ti FPTS, some trends will be changes in consumer need as well
as the effect of enterprises to manufature as folloing: high class trend, trend of

4.3.1. Enhance ability of administrative
Each individual, managers have to study to enhance their level by
themselves by ways such as taking part in advanced management training class
in Corporation or out of Corporation, courses and workshops oversea will be
more effective. To change the form of management is to be more suitable as
using modern technical software, apps, artificial intelligence in all
administration activities, avoiding avoid the overlapping, rigid left over from
the old management perspective. Actively apply and promote the effectiveness
of ERP software.
4.3.2. Improving financial capacity
Focus on mobilizing and attracting investments in all economic sectors to
ensure sufficient capital for the investment in the Corporation's development.
Conduct the listing of stocks on the international stock market to attract more
foreign investments and improve business efficiency as well as HABECO
brand.
4.3.3. Improving human resources
Recruitment activities of the Corporation need to strongly base on the
actual demands of the company as well as the market and focus on the
weaknesses of the company, which are the human resources having a high
level of technical and technology skills and working at the production line.
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4.3.4. Solutions on Marketing
Organize regular market research on a large scale; Strengthen research and
development (R&D) activities; Maintain and stabilize the Northern market,
seek to penetrate deeper into the Central and Southern markets; Enhance the
capacity of machinery and equipment, effectively exploit the equipment that
has been put into production, research technological and technical solutions to
maximize the capacity and improve the quality of beer products; Plan and build

participate in a very tough competition to be able to maintain and develop their
market share in the market. The market for beer, alcohol and soft drinks is no
exception. Enterprises need to analyze the factors that constitute the
competitiveness to understand their strengths and advantages so that they can
take advantage and promote to seize opportunities. In addition, analyzing
competitiveness also helps enterprises identify weaknesses and shortcomings to
take measures to overcome and avoid risks in production and business
activities.
Hanoi Beer Alcohol And Beverage Joint Stock Corporation has undergone
more than 60 years of establishment and development and has left a deep
impression in the minds of customers nationwide and especially the customers
in the North market. With positive business results for many years, HABECO
is still on the way of developing and aiming at new opportunities in the market
where more and more competitors appear from the domestic and foreign
markets. Although measures have been taken, the revenue still declines in
recent years. In this dissertation, the author has an in-depth analysis of the
constituents and impacts on the competitiveness of enterprises producing beer
and alcohol in general and in-depth analysis of the constituents of the
competitiveness of HABECO. Based on an overview of previous studies as
well as through the discussion with experts, the dissertation built a model to
study the constituents of HABECO's competitiveness through factors such as
management capacity, financial capacity, human resources, marketing
capacity, production technology and corporate culture. The dissertation uses
qualitative and quantitative methods to analyze the contribution of factors to
the competitiveness of HABECO. From that, the advantages, limitations and
causes can be drawn up so that recommendations can be made to partly help
the Corporation to improve its competitiveness in the future.
The author has proposed 6 groups of solutions related to the constituents of
HABECO's competitiveness: management capacity, financial capacity, human
resources, marketing capacity, production technology and corporate culture. In