- The competition to be held in a particular competitive environment, it is the common bond or other legal commitments that the participating entities must comply with competition. The main constraints are the demand characteristics of the customer’s product, all legal constraints and business practices in the marketplace. And between buyers buyers, or between buyers and sellers will lead to an agreement in accordance with the interests of the parties involved.
- Competition to take place over a period of time, fixed space, time may be short (in each specific case) or long (during the existence and activity of participants in each competition ). The competition can take place in a narrow space such an organization, a local, an industry, can also take place in space is a country or between countries in the region and globally.
Currently along with Vietnam, Thailand and Bangladesh are two countries were chosen as the shoe company address for processing export products. With the cost price in Vietnam is increasing due to increased labor wages, the cost of fuel production inputs such as electricity prices, fuel prices, land rents … constantly changes made cost higher prices, less product competitiveness. “The amount of orders that we receive only by two thirds compared with the previous year. Therefore, this year only company trying to “hold” in the last year, as long as production, “Chien said.
Mr. Dao Duy Kha – Deputy General Director of the Vietnam Plastics Company, said many export companies in the plastics industry is faced with a rising trend in raw material prices. Due to import up to 70% of raw materials for production, the pressure increases as the product made more difficult for businesses to compete with other products on the market. “After a period of sharp decline, many companies in the industry to shut down or reduce production, so if input costs continue to rise, the more difficult it will export products consumed, the risk of lost orders is great “- Mr. Kha said.
Similarly, many export companies in various fields, said the cost of increasing costs due to policy adjustments in prices of essential commodities are volatile, and dependent on imports of raw materials from abroad, has made the export companies that are always in keeping prices stable. This also contributed to Vietnam’s export orders decreased less, or shift to neighboring countries.
