Analysis of the Strategy of Chinese Enterprises to Open up Vietnam Market—A Case Study of a Hong Kong Invested Enterprise Entering the Vietnamese Market

Under the background of economic globalization, the concept of “global village” is constantly strengthened, and the links between countries are becoming more and more closely. More and more Chinese enterprises have stepped into the world. After the 2008 financial crisis, there were signs of recession and weakness in the European and American markets, and many Chinese enterprises began to turn their attention to the Southeast Asian market, which had not yet been saturated, and hope to win the competition through geographical advantages and price advantages. China and Vietnam are neighbors, are similar in political systems and cultural, but Chinese enterprises are often failed to develop Vietnam market. How to accurately grasp the characteristics of the Vietnamese market, and how to improve the effectiveness of enterprise market development, based on this, this passage is written for Chinese enterprises to explore similar features of the market to provide reference experience. This article is written through a Hong Kong LED lighting enterprises to develop the Vietnamese market successful experience, and put forward new strategies and new ideas for Chinese enterprises to open up the Vietnamese market.


Introduction
Since the reform and opening in 1986, Vietnamese level of opening to the outside world has been improving continuously, the total volume of import and export trade has been increasing continuously, and the economy has developed rapidly.
It has become one of the most potential developing countries in Southeast Asian countries. In 2010, the China ASEAN free trade area was formally launched, which provided a new opportunity for the trade between China and Vietnam, and further strengthened bilateral economic and trade cooperation. In the con- year on year. Among them, China of Vietnamese exports $5 billion 542 million, rose 8. 62% year on year, Electronic products accounted for the largest, the exports amounted to $1 billion 241 million, rose 13.17% year on year; followed by mechanical products, exports of $573 million, rose 0.6% year on year; and the iron and steel, exports of $367 million, dropped 0.48% year on year [1]. Customs statistics show that between January 2015 and December, Vietnam and China's total trade amounted to 95 billion 976 million dollars, Vietnam has become China's second largest trading partner in ASEAN [2].
Although the Vietnamese market has great potential for consumption [3], many Chinese enterprises crashed in Vietnam market [4] [5]. Especially small and medium enterprises, if not to explore the Vietnamese market marketing strategy, don't pay attention to the local market and the local characteristics of Vietnam talent supply and demand situation, it would increase the cost of enterprises to explore the Vietnamese market, and lose competitiveness of enterprises, resulting in the failure of overseas strategic layout Chinese enterprises stationed in Vietnam. Therefore, this paper attempts to analyse and review Neo-Neon lighting company (Hong Kong enterprises) for the experience of this enterprise entering the Vietnamese market, analysis of the enterprise in the market to enter Vietnam two stage process, refine common problems found and the corresponding effective measures when Chinese key enterprises explore the Vietnamese market. Finally, the case study summarizes typical marketing strategies and provides a reference for further China enterprises to enter the Vietnamese market.

Theoretical Basis
Product life cycle theory, also called product life theory, was proposed by Raymond Vernon, a professor at Harvard University. He believes that technological gap between countries is one of the important reasons for international trade [6]; Welsh (L.T.wells) and others have developed on this basis. It is a dynamic theory, which combines cycle theory with international trade theory [7].
The product life cycle refers to the introduction period, growth period, maturity stage and decline period. The life cycle of international trade products is divided into four stages, as shown in Figure 1.  T0-Tl: New products began to export, and innovative country become a net exporter of new products, the new technology is becoming more perfect and standardized, foreign manufacturers began to imitate the innovation in products decline in the country's competitiveness.
Tl-T2: Foreign countries began to imitate and export to third countries, while the export of innovation countries was greatly reduced.
T2-T3: The advantages of developing countries in labor wages is losing, the technical gap with developed countries is narrowing. Developed countries transfer technology or direct investment to developing countries, and developing countries begin to export such technologies. T3 and beyond: Developing countries become the world's leading exporters and exporters [8] [9].
The product life cycle in different technical level countries, the time and the process is not same, there is a large difference, this difference of different countries is technology gap, on the one hand, it reflects how comparative advantage from a state transfer to another country; on the other hand, it reflects the difference of position in the market competition in different countries on the same product, so as to determine the changes of international trade and investment. It is of guiding significance for the backward countries (regions) to determine their position and participation in the international division of labor, and how to upgrade and upgrade the industrial structure in the process of development.

Research Methods
Case studies apply to answering questions like "what" or "why" [10]. When the research object is in a situation in the real environment, when the researcher does not control or can not control the research object, the case study is a very Open Journal of Business and Management appropriate research method [11] Based on this consideration, this study takes the Neo-Neon lighting company as an example to analyze its process and strategy of opening up the Vietnamese market. The case analysis of enterprise, mainly using semi-structured interviews and literature analysis method: firstly, semistructured interviews can get real and effective first-hand information from interviews, This study interviewed Huang Daiping, Asia manager of silver rain lighting company, interview time is about 1 hours, the formation of a 1500 word interview manuscript; secondly, literature analysis and semi-structured interviews to complement each other, analysis of the document contains a large number of documents, such as business information, business publications; issued the laws and regulations, rules and regulations and the related documents by the CPC Central Committee and the State Council, Guangdong Province; and the media, the Internet, social networking platforms (such as Neo-Neon Lighting Co. Ltd. WeChat) the number of public reports and social evaluation. Finally, through sorting out and summarizing, summed up the practice of Neo-Neon lighting company to open up the Vietnamese market practice.

Case Selection
On the choice of case, on the one hand, we should take into account the scale and effectiveness of the export enterprises, because such enterprises are more representative. On the other hand, because of the market research in Vietnam, we must take account of the market development of the enterprises in Vietnam. These two factors are taken into account, this research selects Neo-Neon Lighting Co. Ltd. as the research object, to explore the mechanism of developing Vietnamese market.
Neo-Neon lighting is a subsidiary of Hong Kong Neo-neon group, which is the only company in the world in the same industrial area to complete the LED vertical field of integration of resources of the listed company, specializes in design and development, production and sales of the LED light source for general lighting, commercial lighting and consumer retail is DIY lamps, is one of the world's largest supplier of decorative lamp. Neo-Neon lighting marketing network covers more than 100 countries and regions around the world, gradually transforming from the traditional lighting manufacturers to new white light LED solid-state lighting manufacturers, and become a global leader in LED lighting applications. With the widespread application of LED lighting in the global market and the rise of emerging markets, Neo-Neon lighting has begun to open up the Vietnamese market, and also faces opportunities and challenges in the process of entry. Therefore, this study selected Neo-Neon lighting company as the research object, which has a typical representative significance.

A Brief Review of the Company's Expansion of the Vietnamese Market
Early in the market development, Silver rain lighting company as early as 1996 Open Journal of Business and Management in Vietnam set up production and processing plant in Taiping Province, Vietnam. At that time, the construction of factories in Vietnam mainly focused on the rich labor resources and low labor costs in Vietnam, and the production cost was the most important driving factor. Because Vietnam's economic level was relatively backward and the market scale was smaller, the main products were traditional lighting products, and the market coverage of LED lighting was relatively low. Therefore, the Vietnamese branch basically ignored development and sales market in Vietnam, even there was no market development or product sales in the Department set, Neo-Neon lighting Vietnam branch failed to LED industry in Vietnam early development, the use of huge resources and geographical advantages, ahead of the layout of the market, missed the first opportunity to enter the Vietnam market, lost the huge advantage ahead which it had.
In the last ten years, LED lighting industry rose rapidly, the product demand from advanced countries in Europe and America is high, the market is mature,

The Successful Experience of the Company Entering Vietnam
Neo-Neon lighting company successfully opened the Vietnam market and achieved good results. Neo-Neon lighting Vietnam market sales in 2011 is 15000 dollars, Vietnam market sales in 2012 is 3000 dollars. All Customers were Silver rain lighting has turned its attention to the emerging markets in Asia and Africa, especially the rapidly developing ASEAN market, the Vietnamese market has attracted much attention.

Analysis from the Internal Level
Neo-Neon lighting company has been able to successfully enter the Vietnamese market, is related to the company's internal implementation of a series of strategic reforms.

Analysis from the Theoretical Level
According to product life cycle theory, Neo-Neon lighting company's LED lighting products also have a competitive advantage. LED lighting started in 1960s, LED products in developed countries have been developed for 50 years, and China's LED industry has gone through more than 30 years. The enterprises in China's LED industry are growing day by day, and the competition is fierce.
Because LED lighting technology is becoming more perfect and standardized, according to the theory of product life cycle, the products have been developed from the T2 stage of the product life cycle to the T3 stage, because of Vietnam's low labor costs, a vast market, it is also for this reason, Neo-Neon lighting company decided to invest in production and export market of Vietnam. After T3, the company's products will become the main export products of developing countries or regions, and there is the possibility of exporting to developed countries. This is also the guiding principle of product life cycle theory. In addition, the company also considers Vietnam as a regional advantage for China and a huge demand for the product in Vietnam. And Vietnam's political history is very similar to China, the investment risk is relatively small, Chinese companies Open Journal of Business and Management are relatively easy to explore the market.

Conclusions
It is not difficult to find out how silver rain lighting develops Vietnamese market, for opening up new international markets, it is crucial to make adequate market research and understand the differences between the two countries.
Chinese enterprises need to find the best entry point to enter the Vietnamese market, while the success of Neo-Neon lighting in addition to its own correct  Vietnam. But if Vietnamese employees can not be promoted in the process of market development and they can only be workers for a long time, they can't help but produce unpleasant voices, which will affect the communication and cooperation with Vietnamese customers.
The main contribution of this paper is, first of all, to enrich the theory of product cycles in international trade. This theory was successfully implemented in the American market. This paper selected the silver rain lighting entered the Vietnamese market as the research object, from developed countries to developing countries this change, greatly enriched the international trade theory of product cycle. Secondly, the article analyzes the process of China enterprises entering the Vietnamese market, and puts forward some corresponding suggestions, such as the Vietnamese employee employment is particularly important, can share the successful experience of the enterprise to sort out in Vietnam. Third, this paper studies the silver rain lighting company to enter the Vietnamese market, to provide guidance and reference for Chinese enterprises to enter the Vietnamese market. Finally, there are still some deficiencies in this paper, the study is only a research into Vietnam enterprise, whether the experience of this enterprise is universal in other enterprise applications, it needs to be further verified. Subsequent studies can use multiple case study methods to extend this study to more contexts.