Competitiveness of Beverage Firms on Vietnam Stock Market
Added on 2024-05-03
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OPEN ACCESS JOURNALS
Indiana Journal of Economics and Business Management
Abbriviate Tittle- Ind J Econ Bus Manag
ISSN (Online)- 2583-3758
Journal Homepage Link- https://indianapublications.com/journal/IJEBM
DOI: https://doi.org/10.5281/zenodo.10183647
*Corresponding Author: To Thi Thu Trang 10
INDIANA PUBLICATIONS
PRODUCTIVE AND QUALITY RESEARCH
Review Article Volume-03|Issue-062023
Competitiveness of beverage firms listed on the Vietnam stock market
To Thi Thu Trang1*, Vu Huy Tu2, Do Thi Kim Ngan3
1University of Labour and Social Affairs, Vietnam
2Hanoi University of Business and Technology, Vietnam
3Department of Information Technology - General Department of Taxation, Vietnam
Article History
Received: 29.10.2023
Accepted: 21.11.2023
Published: 22.11.2023
Citation
Trang, T. T. T., Tu, V. H., Ngan, D.
T. K. (2023). Competitiveness of
beverage firms listed on the
Vietnam stock market. Indiana
Journal of Economics and Business
Management, 3(6),10-14.
Abstract: In a market economy, competition is a common phenomenon and has important implications for economic
development in countries. The main purpose of this study is to empirically examine the competitiveness index of
beverage firms listed on the Vietnamese stock market. The authors collected secondary data from previous studies
on beverage firms listed on the Vietnamese stock market in the period 2018–2022. For this purpose, in this study,
we use the market share (MS) variable to measure the competitiveness index of beverage firms. We have performed
a number of analyses, such as descriptive statistics and comparisons, with the support of Stata software to evaluate
and measure the competitiveness index of beverage firms listed on the stock market in Vietnam. The results show
that there is a large difference in the competitiveness indicators of beverage firms listed on the Vietnamese stock
market. The difference in competitiveness index between beverage firms listed on HNX and HSX is statistically
significant.
Keywords: competitiveness, beverage firms, business administration, accountant, finance
Copyright © 2023 The Author(s): This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY-NC 4.0).
INTRODUCTION
According to Trung Viet (2023), Vietnam is a
very competitive market, with almost all of the biggest
international names such as Anheuser-Busch InBev,
Carlsberg, and Asahi, as well as locally sourced
businesses such as Sabeco. Habeco continuously
launches new products. According to market research
firm Euromonitor, in 2019, Heineken held nearly 40% of
the market share and Sabeco approximately 34%. Beer
companies such as Habeco, Carslberg, AB-InBev, etc.
own the remaining 26% of the market share. However, in
the two years 2020–2021, Heineken has surpassed
Sabeco to become the beer brand holding the number one
market share in Vietnam with 44.4%. According to
MBS's report, four major companies, Heineken, Sabeco,
Carlsberg, and Habeco, will account for 94.4% of the
market share of Vietnam's beer industry in 2021, of
which Heineken and Sabeco alone have a total market
share of 78.3%, reversing the remaining two companies.
In recent years, firm competitiveness has
always been a top concern for domestic and foreign
research. Because competitiveness is one of the metrics
for comparison between firms in the same industry, it is
closely linked to competitive advantage, or the basic
factor determining the success of a firm (Bredrup, 1995).
Competitiveness is the ability to create,
maintain, use, and create new competitive advantages for
an enterprise to create products with higher productivity
and quality than competitors and gain a larger market
share, as well as create high income for employees and
sustainable development for the organization (Porter,
1990). In the context of international economic
integration, the impact of the COVID-19 epidemic and
legal documents on business—drinking beer and wine—
has decreased. With the strict implementation of Decree
100 by the government, the total demand for beer
consumption has decreased. This also requires firms
themselves to constantly innovate, perfect, and develop,
including solutions to improve competitiveness.
THEORETICAL BACKGROUND
AND LITERATURE REVIEW
In addition to profit goals, competitiveness is
also the ability to achieve sustainable development goals
expressed through products provided to the market,
production costs, and added value (Porter, 2009a).
The competitiveness of enterprises is mentioned
in this study according to the opinion of Vu (2006).
Competitiveness is the ability of enterprises to find and
develop market share to gain more profits or
Competitiveness is understood as the ability of a firm to
provide more products and earn higher profits than other
firms.
According to Porter (1998), enterprise
competitiveness is the synthesis of the ability to hold and
dominate the market of entities participating in
production and business activities to achieve optimal
efficiency in a specific business environment. The
competitiveness of a beverage firm is the synthesis of all
the enterprise's abilities to meet customer needs in
Indiana Journal of Economics and Business Management
Abbriviate Tittle- Ind J Econ Bus Manag
ISSN (Online)- 2583-3758
Journal Homepage Link- https://indianapublications.com/journal/IJEBM
DOI: https://doi.org/10.5281/zenodo.10183647
*Corresponding Author: To Thi Thu Trang 10
INDIANA PUBLICATIONS
PRODUCTIVE AND QUALITY RESEARCH
Review Article Volume-03|Issue-062023
Competitiveness of beverage firms listed on the Vietnam stock market
To Thi Thu Trang1*, Vu Huy Tu2, Do Thi Kim Ngan3
1University of Labour and Social Affairs, Vietnam
2Hanoi University of Business and Technology, Vietnam
3Department of Information Technology - General Department of Taxation, Vietnam
Article History
Received: 29.10.2023
Accepted: 21.11.2023
Published: 22.11.2023
Citation
Trang, T. T. T., Tu, V. H., Ngan, D.
T. K. (2023). Competitiveness of
beverage firms listed on the
Vietnam stock market. Indiana
Journal of Economics and Business
Management, 3(6),10-14.
Abstract: In a market economy, competition is a common phenomenon and has important implications for economic
development in countries. The main purpose of this study is to empirically examine the competitiveness index of
beverage firms listed on the Vietnamese stock market. The authors collected secondary data from previous studies
on beverage firms listed on the Vietnamese stock market in the period 2018–2022. For this purpose, in this study,
we use the market share (MS) variable to measure the competitiveness index of beverage firms. We have performed
a number of analyses, such as descriptive statistics and comparisons, with the support of Stata software to evaluate
and measure the competitiveness index of beverage firms listed on the stock market in Vietnam. The results show
that there is a large difference in the competitiveness indicators of beverage firms listed on the Vietnamese stock
market. The difference in competitiveness index between beverage firms listed on HNX and HSX is statistically
significant.
Keywords: competitiveness, beverage firms, business administration, accountant, finance
Copyright © 2023 The Author(s): This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY-NC 4.0).
INTRODUCTION
According to Trung Viet (2023), Vietnam is a
very competitive market, with almost all of the biggest
international names such as Anheuser-Busch InBev,
Carlsberg, and Asahi, as well as locally sourced
businesses such as Sabeco. Habeco continuously
launches new products. According to market research
firm Euromonitor, in 2019, Heineken held nearly 40% of
the market share and Sabeco approximately 34%. Beer
companies such as Habeco, Carslberg, AB-InBev, etc.
own the remaining 26% of the market share. However, in
the two years 2020–2021, Heineken has surpassed
Sabeco to become the beer brand holding the number one
market share in Vietnam with 44.4%. According to
MBS's report, four major companies, Heineken, Sabeco,
Carlsberg, and Habeco, will account for 94.4% of the
market share of Vietnam's beer industry in 2021, of
which Heineken and Sabeco alone have a total market
share of 78.3%, reversing the remaining two companies.
In recent years, firm competitiveness has
always been a top concern for domestic and foreign
research. Because competitiveness is one of the metrics
for comparison between firms in the same industry, it is
closely linked to competitive advantage, or the basic
factor determining the success of a firm (Bredrup, 1995).
Competitiveness is the ability to create,
maintain, use, and create new competitive advantages for
an enterprise to create products with higher productivity
and quality than competitors and gain a larger market
share, as well as create high income for employees and
sustainable development for the organization (Porter,
1990). In the context of international economic
integration, the impact of the COVID-19 epidemic and
legal documents on business—drinking beer and wine—
has decreased. With the strict implementation of Decree
100 by the government, the total demand for beer
consumption has decreased. This also requires firms
themselves to constantly innovate, perfect, and develop,
including solutions to improve competitiveness.
THEORETICAL BACKGROUND
AND LITERATURE REVIEW
In addition to profit goals, competitiveness is
also the ability to achieve sustainable development goals
expressed through products provided to the market,
production costs, and added value (Porter, 2009a).
The competitiveness of enterprises is mentioned
in this study according to the opinion of Vu (2006).
Competitiveness is the ability of enterprises to find and
develop market share to gain more profits or
Competitiveness is understood as the ability of a firm to
provide more products and earn higher profits than other
firms.
According to Porter (1998), enterprise
competitiveness is the synthesis of the ability to hold and
dominate the market of entities participating in
production and business activities to achieve optimal
efficiency in a specific business environment. The
competitiveness of a beverage firm is the synthesis of all
the enterprise's abilities to meet customer needs in
Trang, T. T. T., Tu, V. H., Ngan, D. T. K.; Ind J Econ Bus Manag; Vol-3, Iss-6 (Nov-Dec, 2023): 10-14
*Corresponding Author: To Thi Thu Trang 11
providing products. Beverage firms that want to enhance
their competitiveness in addition to providing high-
quality, diverse, and rich services also need to pay
attention to convenience and uniqueness compared to
other products. similar services on the market. From
there, creating a competitive advantage, increasing the
annual profits of banks, creating prestige, brand, and high
position in the market, and being able to withstand and
overcome adverse fluctuations of the business
environment.
Currently, there are many different views on
measuring and determining criteria for measuring the
competitiveness of enterprises, such as Porter (1990)
using the ability to maintain competitive advantages of
enterprises (costs low and product differentiation);
Wangwe (1995) used technical efficiency and
productivity indicators; Cockburn et al. (2000) uses
financial efficiency (profit); and Salinger (2001) uses
labor productivity and human capital capacity. Pham
(2017) pointed out that market share is an indicator to
measure the competitiveness of enterprises. An
enterprise has greater competitiveness than another
enterprise when that enterprise has a larger market share.
Market share indicators are often measured by
comparing a firm's revenue with the total revenue of
firms in the same industry in the market in a certain
period. The calculation formula is as follows:
Market share (MS) =
Ri
R
MS: Market share
Ri: Revenue of the i enterprise,
R: Total revenue of firms in the same industry in the
market and listed on the Vietnam stock market.
METHODOLOGY
This study uses both qualitative research
methods and quantitative research methods.
Qualitative research method: We use techniques
of synthesis, analysis, comparison, and contrast to
evaluate the competitiveness index of beverage firms
listed on the Vietnam stock market. In addition to
collecting previous research works, we interviewed five
experts who are leading lecturers in business
administration: directors of beverage enterprises.
Qualitative research methods guide and refine the
research results of previous studies. From there, this
research inherits and applies. Regarding how to measure
the competitiveness of enterprises, all 5/5 experts (100%)
agree with the measurement method proposed by us.
Thus, the way to measure enterprise competitiveness
remains unchanged, according to our proposal.
The quantitative research method is based on
panel data, which has been compiled for 5 years, from
2018 to 2022. Based on reputable websites such as
http://cafef.vn, https://financevietstock.vn, etc. and a
global data service company, we collect data on
competitiveness indicators of beverage firms, which are
firms that produce and trade alcohol and beer.
Enterprises that do not produce alcohol or beer are not
included in the research sample.
The research sample is 7 beverage businesses
listed on the Vietnamese stock market, including Hanoi
Stock Exchange (HNX) and Ho Chi Minh Stock
Exchange (HSX) (cophieu68.vn), with 1
competitiveness target in 5 years. We collected 35
observations. We then evaluated and analyzed with the
support of Stata 13 software.
RESEARCH RESULTS
Table 1 shows the market share index when
considering each beverage firm separately in each year.
Besides firms with a good market share index, there are
still firms with a limited market share index (see table 1).
Table 1: Market share index of beverage firms listed on
the Vietnam stock market in the period 2012–2022
Stock
code Year MS Stock
code Year MS
BHN 2018 19.34% SCD 2018 0.62%
BHN 2019 18.71% SCD 2019 0.55%
BHN 2020 19.55% SCD 2020 0.46%
BHN 2021 19.65% SCD 2021 0.39%
BHN 2022 18.14% SCD 2022 0.38%
HAD 2018 0.34% THB 2018 1.29%
HAD 2019 0.32% THB 2019 2.34%
HAD 2020 0.40% THB 2020 3.69%
HAD 2021 0.36% THB 2021 3.65%
HAD 2022 0.33% THB 2022 3.47%
HAT 2018 1.50% VDL 2018 0.98%
HAT 2019 1.62% VDL 2019 0.62%
HAT 2020 1.97% VDL 2020 0.77%
HAT 2021 1.25% VDL 2021 0.68%
HAT 2022 2.30% VDL 2022 0.40%
SAB 2018 75.93%
SAB 2019 75.85%
SAB 2020 73.18%
SAB 2021 74.03%
SAB 2022 74.98%
Source: http://cafef.vn and compiled by the authors
Table 2: Average MS ratio over the years of beverage companies listed on the Vietnam stock market
Description 2018 2019 2020 2021 2022 Average 2018-
2022
MS% 14.29 14.29 14.29 14.29 14.29 14.29
Source: http://cafef.vn and compiled by the authors
*Corresponding Author: To Thi Thu Trang 11
providing products. Beverage firms that want to enhance
their competitiveness in addition to providing high-
quality, diverse, and rich services also need to pay
attention to convenience and uniqueness compared to
other products. similar services on the market. From
there, creating a competitive advantage, increasing the
annual profits of banks, creating prestige, brand, and high
position in the market, and being able to withstand and
overcome adverse fluctuations of the business
environment.
Currently, there are many different views on
measuring and determining criteria for measuring the
competitiveness of enterprises, such as Porter (1990)
using the ability to maintain competitive advantages of
enterprises (costs low and product differentiation);
Wangwe (1995) used technical efficiency and
productivity indicators; Cockburn et al. (2000) uses
financial efficiency (profit); and Salinger (2001) uses
labor productivity and human capital capacity. Pham
(2017) pointed out that market share is an indicator to
measure the competitiveness of enterprises. An
enterprise has greater competitiveness than another
enterprise when that enterprise has a larger market share.
Market share indicators are often measured by
comparing a firm's revenue with the total revenue of
firms in the same industry in the market in a certain
period. The calculation formula is as follows:
Market share (MS) =
Ri
R
MS: Market share
Ri: Revenue of the i enterprise,
R: Total revenue of firms in the same industry in the
market and listed on the Vietnam stock market.
METHODOLOGY
This study uses both qualitative research
methods and quantitative research methods.
Qualitative research method: We use techniques
of synthesis, analysis, comparison, and contrast to
evaluate the competitiveness index of beverage firms
listed on the Vietnam stock market. In addition to
collecting previous research works, we interviewed five
experts who are leading lecturers in business
administration: directors of beverage enterprises.
Qualitative research methods guide and refine the
research results of previous studies. From there, this
research inherits and applies. Regarding how to measure
the competitiveness of enterprises, all 5/5 experts (100%)
agree with the measurement method proposed by us.
Thus, the way to measure enterprise competitiveness
remains unchanged, according to our proposal.
The quantitative research method is based on
panel data, which has been compiled for 5 years, from
2018 to 2022. Based on reputable websites such as
http://cafef.vn, https://financevietstock.vn, etc. and a
global data service company, we collect data on
competitiveness indicators of beverage firms, which are
firms that produce and trade alcohol and beer.
Enterprises that do not produce alcohol or beer are not
included in the research sample.
The research sample is 7 beverage businesses
listed on the Vietnamese stock market, including Hanoi
Stock Exchange (HNX) and Ho Chi Minh Stock
Exchange (HSX) (cophieu68.vn), with 1
competitiveness target in 5 years. We collected 35
observations. We then evaluated and analyzed with the
support of Stata 13 software.
RESEARCH RESULTS
Table 1 shows the market share index when
considering each beverage firm separately in each year.
Besides firms with a good market share index, there are
still firms with a limited market share index (see table 1).
Table 1: Market share index of beverage firms listed on
the Vietnam stock market in the period 2012–2022
Stock
code Year MS Stock
code Year MS
BHN 2018 19.34% SCD 2018 0.62%
BHN 2019 18.71% SCD 2019 0.55%
BHN 2020 19.55% SCD 2020 0.46%
BHN 2021 19.65% SCD 2021 0.39%
BHN 2022 18.14% SCD 2022 0.38%
HAD 2018 0.34% THB 2018 1.29%
HAD 2019 0.32% THB 2019 2.34%
HAD 2020 0.40% THB 2020 3.69%
HAD 2021 0.36% THB 2021 3.65%
HAD 2022 0.33% THB 2022 3.47%
HAT 2018 1.50% VDL 2018 0.98%
HAT 2019 1.62% VDL 2019 0.62%
HAT 2020 1.97% VDL 2020 0.77%
HAT 2021 1.25% VDL 2021 0.68%
HAT 2022 2.30% VDL 2022 0.40%
SAB 2018 75.93%
SAB 2019 75.85%
SAB 2020 73.18%
SAB 2021 74.03%
SAB 2022 74.98%
Source: http://cafef.vn and compiled by the authors
Table 2: Average MS ratio over the years of beverage companies listed on the Vietnam stock market
Description 2018 2019 2020 2021 2022 Average 2018-
2022
MS% 14.29 14.29 14.29 14.29 14.29 14.29
Source: http://cafef.vn and compiled by the authors
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