I.

Introduction

II.STEEPLED

1.Social

Vietnamese household furniture buyers choose wooden pieces over those constructed of other
materials. The desire to relive happy memories is a contributing factor. The Vietnamese have a strong
emotional connection to their ancestry, which is why they value wooden furniture so highly. People
of all ages in modern Vietnam, especially children living abroad, tend to like the elderly. Furthermore,
because natural wood is so valuable, furnishing your property with it will increase its market value.
Traditional Vietnamese homes typically feature furniture made from natural wood due to the
material's longevity and enticing scent. (Khương Duy,2023). The growth potential of Son Duong
Forestry Co., Ltd. is enormous in light of such prospects.

2.Technology

Contributing to the general development of the whole forestry industry. In recent decades,
developments and breakthroughs in the field of science and technology around the world have
spawned many new technologies rapidly and continuously. According to experts, in the coming years,
the speed of scientific and technological development will increase, which will have a significant
impact on businesses in general and Son Duong Forestry Co., Ltd. in particular.

Identifying varieties as the first factor determining crop yield and quality, Son Duong Forestry Co.,
Ltd. has been implementing scientific and technological tasks related to research and application of
technical advances to product development. production of forest tree varieties; especially, step by
step improve the capacity of seed production by tissue culture technology of the main high-yield and
high-quality forest trees in service of afforestation of economic forests, large timber forests, and non-
timber forest products. Currently, only a few forestry companies are interested in applying this
technology. With improved quality and productivity, Son Duong Forestry Co., Ltd. will have an
advantage over other forestry companies as the company will trust and receive more orders as well
as the opportunity to receive more investment.

3.Environmental

The forest products sector is heavily reliant on the integrity of the outdoors. The natural environment
is becoming more complicated and diverse as a result of human activity. Vietnam's forestry sector
faces significant challenges due to the country's complicated weather and climate characteristics.
Therefore, Son Duong Forestry Co., Ltd. in the coming years needs to clearly identify the affects of
the natural environment in order to come up with appropriate strategies to overcome the constraints
and take advantage of the chances that nature delivers. At the same time, it's important to keep
enhancing the quality of forestry products and adjusting business practices to meet changing
consumer preferences.

The growing demand for wood in Vietnam is being exacerbated by the country's increasingly
discerning palate. The corporation will need to enhance its logging output to meet the rising
domestic and worldwide demand for wood. Excessive output from extraction can cause global
warming due to the greenhouse effect, as well as drought, rising sea levels, environmental pollution,
and food insecurity.

4.Economic
The International Monetary Fund (IMF) has recently revised their outlook for Vietnam's economic
development.

Vietnam's growth is forecast to decelerate to 5.8 percent in 2020, 6.3 percent in 2023, and 6.9
percent in 2024, according to Daniel Leigh, head of the IMF's World Economic Research Department.
Inflation in Vietnam is also moderate, coming in at 3.15 percent in 2022 and rising to 4.3 percent in
2024 (Minh Quang, 2022). Demand for new infrastructure has increased significantly in response to
rising incomes and a corresponding rise in social spending. For Son Duong Forestry Co., Ltd , this
means brand new possibilities.

The Corporation faces new dangers as a result of the improving economic climate. Due to the
increased competition for available positions brought on by the high unemployment rate, the
Corporation has had to become more adaptable and dynamic in order to maintain a steady stream of
cash for its employees. But this also implies that workers need to be self-disciplined and
professionally responsible, as well as eager to learn and develop their abilities on the job.

5.Political and Legal

Vietnam's political system has utilized society's strength, internal resources, and foreign pressures.
Good ties with neighbors and other nations. Political security, citizen wellbeing, and national
sovereignty and territory depend on that.

Vietnam has had reforms and socio-economic policies that are correct, fit for the people, in
accordance with the development trend, acknowledged and accepted by the international
community, and organized to implement. With a strong and steady economic development rate,
people's living conditions have greatly improved, and numerous successes and advances have been
made in constructing the rule of law state, democratizing society, and advancing democratic rights.
political stability...

Vietnam fights corruption and overcomes deficiencies and stagnation via administrative reform.
superior, efficient, and effective. Many nations, especially developing ones, are experiencing wars,
civil wars, disputes, debt, terrorism, political difficulties, etc.

Political stability matters most. Socialist Vietnam. Is Vietnam a socialist state or changing? That's
up to Vietnam's government. Economic progress requires socio-political stability in whatever form.
Vietnam is working hard to enhance investment conditions. Political stability, rich people resources,
and Vietnamese worker quality are also improving.

In 2008, the National Assembly included a rather full adjustment of three laws on value-added tax,
special consumption tax, and corporate income tax in the law-making program, completing the tax
policy framework. Specifically: Businesses and taxpayers benefit from knowing the tax rate: 5%, 10%,
or non-taxable. However, company input tax deduction requires bank payment. It protects legitimate
enterprises.

III.SWOT

Opportunities (O) Threats (T)

- Vietnam's accession to the - There are changes in the legal

WTO opens the door to more policy of the State
 investment cooperation, joint - The competitiveness is weak,
ventures, technology transfer, and the labor productivity of
capitalizing on the region's enterprises producing and trading
abundant labor and forest in wood and forest products in
resources. Vietnam is still low.
- The export of forest goods, - The natural environment
particularly wood-processed fluctuates strongly
products, benefits from the - Most enterprises producing and
policies of non-discrimination trading in wood and forest
and the reduction of tariff and products have not been fully
non-tariff obstacles. prepared in the integration
- Businesses gain knowledge of process, have not yet given
management and acquire new appropriate strategies and policies
tools through the process of to be able to integrate with the
integration. world economy. gender
- Diversifying and - The ability to consume forest
multilateralizing ties in the area products in the domestic market
and the world have helped is still small, limiting the
businesses establish themselves stimulation of enterprises to
in the wood industry and the improve production efficiency,
global forest product market. reform product structure, and
improve competitiveness.
- Potential opponents step by step
show clearly and have many
strengths

Strengths (S) S/O . Strategy S/T . Strategy

- The Corporation's activities are - Maintain strategic goals: "from - Increase the operation capacity
from looking after forests to planting to products". In the of the Corporation by building a
products, so it is easy to calculate immediate future, increasing modern wood processing network
to implement the plan in time, investment in silviculture, throughout the country.
always completing or exceeding research and testing of new tree - Strengthening the connection
the plan to come out. varieties, intensive farming between the Corporation and its
- Continuously supplementing the methods, social models of member units, strengthening
leadership apparatus, with a spirit afforestation, forest management cooperation, joint venture and
of unity and solidarity. and protection to increase association between the
- Most of the units in the production even higher to ensure Corporation and other domestic
Corporation ensure and develop sufficient raw materials for wood and foreign partners to take
capital through the added value processing factories of the advantage of the available
obtained from production and Corporation. Find all ways to capacity and strength to develop
business and the depreciation of increase the area of planted develop and enhance efficiency to
assets included in the product forests, mobilize capital sources, deal with domestic and foreign
cost. continue to invest in raw competitors.
- Special attention and intensive materials areas associated with - There is a mechanism to
investment in large projects, plantation wood processing encourage employees to promote
taking full advantage of the raw factories with modern technology self-discipline, be proactive in
material areas to build wood and equipment to produce their work and motivate
production and processing products that meet the highest employees to improve their
projects. standards. High quality and professional skills, foreign
- Having a department that efficiency standards ensure
languages, informatics,
regularly updates information on enough domestic and
international law as well as
science and technology, market international competitiveness.
- Strengthen joint venture and international law. domestic
transactions through the
association with domestic and regulations, marketing, etc. to
electronic system and procures
foreign partners, regardless of meet the requirements of each
technical documents to
economic sectors. unit in the trend of international
disseminate to member units
integration. Actively develop
when needed.
training plans, staff investment
and staff planning.
 Weaknesses (W) W/O . Strategy Strategy W/T
- The strategic orientation of the - To further promote business and - Regularly and resolutely strictly
Corporation after Vietnam's service activities and trade implement the law on thrift
accession to the WTO is still slow relations with the US and China, practice and anti-waste.
to implement. which have large markets and -
- The level of marketing activities influence on economic and
is still poor. political policies towards
- Scientific and technical work is Vietnam. Step by step
still passive approaching the markets of
- The level of application of neighboring countries including:
science and technology is still Laos, Cambodia to invest in
limited. afforestation, wood processing...
- The production and processing - Apply ISO management system
of wood has basically not paid to improve management
attention to the supervision, efficiency, labor structure and
inspection and management of rational use of internal resources.
production norms and prices for
units with 100% state capital and
controlling joint stock companies.

IV.Porter’s 5 Forces

1.Buyer power

Forestry businesses serve both domestic and international clientele. There has been a recent shift in
the home market toward forestry items, particularly wooden furniture. Wooden goods are very
popular in international markets. However, as we saw above, consumers can easily find alternatives
to forest products that serve the same purpose at lower costs and greater variety than wooden
furniture while still satisfying their desire for a particular aesthetic.

2.Supplier power

As afforestation is commonly associated with product processing in the forestry business, this
means that the primary raw materials for manufacturing are generated by the firm itself. As a result,
the supplier's influence is minimal.

However, given the existing state of affairs, the amount of wood supplied by forests typically falls
short of industrial requirements in Vietnam. Therefore, most enterprises must import raw materials,
particularly wood resources, from outside to assure continued production. Laos, Cambodia, etc., are
typical sources of the timber we import. It was formerly easy for Vietnam's forestry industry to rely
on Laos as a supplier, but the Laotian government has since restricted the export of timber.

3.Threat of substitution

Because iron or wood furniture is simply one part of the room, it's hard to pick. Wood, rattan, natural
materials, metal, plastic, and synthetic materials make up furniture. Bamboo, rattan, and wood foster
togetherness. Manufacturers utilize wood for 50% of product volume. Wood has always been rare in
our land. Flower wood and black ebony are discussed as luxury items, even dividing classes.

Metal was first difficult to employ for furniture, but its superb bearing capabilities and rich
flexability attracted designers. Metal tables and chairs, albeit thin, may be twisted to produce
distinctive characteristics. Metal furniture has benefits over other materials. Metal "attacking" the
inside is normal.

Plastic is third. Most industrialized product category. Because it doesn't have complicated textures
like wood or welded connections like metal, designers appreciate it. Plastic lets designers create
numerous new designs. Its strength is its color richness.

Synthetic materials are a fourth growing group. Synthetic materials combine the pros and cons of
each substance, theoretically. We now utilize wood with soft foam cushioning instead of mahogany
tea cabinets. Luxury, sanitary dining sets may be made from metal, glass, and plastic. Synthetic
furniture cannot totally replace the above-mentioned furniture.

Thus, forest product substitutes are numerous, high-quality, and affordable.

4.Threat of new entry

When compared to departure barriers, entry barriers into the forestry business are significantly more
challenging for one of the following reasons:

To begin, the State owns the woods and afforestation area, manages and develops them, and
oversees them directly through the forestry industry. in addition to transferring ownership to
companies who actively engage in forest business in exchange for certain rights and duties, or
afforestation. Therefore, the State and the Government must sanction any enterprise engaging in
forestry activities.

As a second point, the market for forest goods (and notably wood processing industries) is flooded
with tiny enterprises. However, there is a high chance of failure in this industry, as the woodworking
and manufacture of wood items generally require a certain source before they may approach other
suppliers. Not to mention all the other elements like tech, ads, etc.

5.Competitive Rivalry

Factors Opportunities Threats

Social Vietnamese families treasure wooden
furniture because it allows them to connect
with the past and share in the present. This
is according to (Khuong Duy,2023). The
growth potential for Son Duong Forestry
Co., Ltd. is enormous in light of such
prospects.
Technology Son Duong Forestry Co., Ltd. has been
doing scientific and technological research
and product development based on
varieties, which determine crop output and
quality. development of forest tree kinds,
 notably improving tissue culture seed
production of the primary high-yield and
high-quality forest trees for economic
forests, big timber forests, and non-timber
forest products. Few forestry firms want to
use this technology. Son Duong Forestry
Co., Ltd. will gain more orders and
investment with enhanced quality and
efficiency.
Environment Vietnam's sophisticated taste drives wood
demand. Logging productivity must rise to
meet rising local and worldwide timber
demand. Excessive extraction causes global
warming, drought, rising sea levels,
pollution, and food insecurity due to the
greenhouse effect.
Economic Vietnam will increase 5.8% in 2020, 6.3 The expanding economy threatens the
percent in 2023, and 6.9% in 2024, Corporation. The Corporation must adjust to
according to IMF World Economic pay its workers due to the increasing
Research Department director Daniel unemployment rate. However, this needs
Leigh. Vietnam's inflation is modest, 3.15 self-discipline, professionalism, and a
percent in 2022 and 4.3 percent in 2024 willingness to improve on the job.
(Minh Quang, 2022). Earnings and social
expenditures have increased infrastructure
demand. Son Duong Forestry Co., Ltd. can
expand.

Legal
Politics
Ethics
Demographic

REFERENCES

Khương Duy. VÌ SAO NGƯỜI VIỆT NAM LẠI ƯA CHUỘNG NỘI THẤT GỖ?. Available at:
https://noithatkhuongduy.com/vi-sao-nguoi-viet-nam-lai-ua-chuong-noi-that-go.html (Accessed at:
August 1, 2023)

Minh Quang, 2023. Việt Nam khẳng định là điểm sáng trong tăng trưởng kinh tế. Báo Lao Động.
Available at: https://laodong.vn/thoi-su/viet-nam-khang-dinh-la-diem-sang-trong-tang-truong-kinh-
te-1186804.ldo (Accessed at: August 1, 2023)