Training needs of Vietnamese smes in entering and expanding export markets - Le Tien Dat

Since many potential exporters lack export experience, training programs on skills to complete export activities should provide trainees with a checklist of steps required in the export process. In such a checklist, detailed guidance for specific steps and sug¬gested ways to conduct vital activities across the different steps are recommended. For example, guidance on approaching foreign partners in the initial steps, or advice on choosing appropriate transportation in the lat¬ter stages would be beneficial for newcomers like potential exporters. Expanding foreign market skills training programs for Vietnamese current exporters The training program on foreign market investigation skills for Vietnamese exporters should take into account a range of skills including investigating foreign markets, part¬ner investigations, and investigating cus¬tomers and competitors. Moreover, the con¬tents provided in this training should be spe¬cific and advanced. Accordingly, the training on foreign market investigation skills should focus on studying the particular requirements of markets to assist exporters in product inno¬vation that is targeted to those particular mar¬ket needs. The training on partner investiga¬tion skills should include skills for identifying the financial ability of partners, particularly those from more risky markets. The training on skills to investigate customers and com¬petitors should concentrate on enhancing the ability to identify current and potential needs of customers, and the capacity of rivals in export markets. The training on skills to perfect die steps in exporting process should provide exporters with methods to undertake various steps in exports both flexibly and effectively. There could be practical advice or useful tips across various export stages, such as negotiations. payments or overseas delivery. In addition, the training should provide exporters with appropriate actions that could be taken in var¬ious export situations. In particular, this could relate to more common difficulties and traps the Vietnamese exporters may face in prac¬tice. especially more risky activities such as contract negotiations and payments. Training programs provided in this study are expected to be beneficial to SME managers and ưaining providers in organizing programs sup¬porting Vietnamese SME managers in exports. Also, from this nationwide study, the govern¬ment agencies may use the findings to develop policies and strategies to support Vietnamese SMEs. In particular, being developed based on the actual needs of SME managers, these train¬ing programs may be used in the implementa-tion of government support strategies such as those stated in Decree 56/2009/ND-CP on Assistance to the Development of SMEs. Furtiter, there has been no study examining ưaining needs and developing training pro¬grams to support Vietnamese SMEs to enter and expand foreign markets. Therefore, the outcomes of this study are anticipated to offer richer insights, from the perspective of devel¬oping counưies such as Vietnam, into the Issues under investigation. ♦

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TRADE SCIENCE REVIEW 1 Trade Science Review ISSN 1859-3666 Volum 4, Number 1 June 2016 Editor in chief Nguyen Bach Khoa Vietnam University of Commerce Deputy Editor in Chief Editorial Boad Le Xuan Ba Central Institude for Economic Managerment Nguyen Dinh Huong Union of Science and Technology Associations Nguyen Hoang Long Vietnam University of Commerce Nguyen Mai Vietnam Economist Association Luong Xuan Quy Vietnam Economist Association Do Minh Thanh Vietnam University of Commerce Tran Dinh Thien Vietnam Institute of Economics Nguyen Thi Doan The Office of State President Nguyen Thi Bich Loan Vietnam University of Commerce Pham Vu Luan Ministry of Education and Training Bui Xuan Nhan Vietnam University of Commerce Dinh Van Son Vietnam University of Commerce Dinh Van Thanh Trade Research Institute Nguyen Quang Thuan Vietnam Social - Humanity Academia Contributors in abroad H. Eric Boutin Toulon Var University - France Nguyen The Tam California State University - USA ZHANG Yujie Tsinghua University - China WASHIO Tomoharu Kwansei Gakuin University - Japan HAASIS Hans Dietrich - Institute of Shipping Economics and Logistics (ISL) Bremen - Germany 1. Literature Review 1.1. Training and training needs The term "training" is defined as a process that gives people skills required for their jobs in order to enhance the performance of indi- viduals and organizations. Among the many models of systematic training, the Analysis, Design, Development, Implementation and Evaluation (ADDIE) model is the one that attracts most trainers, universities and other formal training organizations. It has been used as a framework to create and conduct training programs. Accordingly, in the first step of training needs analysis, the process of determining the training content requires a series of analyses to ensure the training pro- grams introduced will be relevant to the needs of participants, and that potential problems or wastefulness will be avoided. One of the main reasons for the failure of training is when relevant training is not provided to the right persons at the right time. Therefore, training needs analysis is considered a highly important component to ensure the success of training. 1.2. Internationalization and barriers to SMEs in entering and expanding export markets Various models of internationalization have previously been studied, such as state models of internationalization, network approaches to internationalization, and resource-based to internationalization. Resource-based models define intangible, 62 Trade Science Review 4:1 (2016) 62 - 72 TRADE SCIENCE REVIEW ’S TSR TRAINING NEEDS OF VIETNAMESE SMES IN ENTERING AND EXPANDING EXPORT MARKETS Le TienDat Vietnam University of Commerce Email: tiendatle1509@gmail.com Received: 28th August 2015 Revised: 29 th Feberuary 2016 The small and medium-sized enterprises (SMEs) are often considered as the key factorin the economic development of Vietnam, making great contribution to the GDP, export growth and employment creation. However, in the integration period, many Vietnamese SME managers lack vital skills to overcome barriersto enter and expand export markets successfully, as well as to take advantages of free trade agreements such as TPP. In this article, based on the literature review on training and difficulties of SMEs in exports, the analysis on training needs of managers in potential export SMEs and current export SMEs, recommendations about training programs to support Vietnamese SMEs to penetrate foreign markets are proposed. Key words: SMEs, training needs, export markets knowledge-based resources as key factors contributing to the competitive advantages of a firm. The senior management that uniquely contributes to the sustained and competitive advantage of the firm is emphasized as a sig- nificant and distinctive resource. Senior man- agers are perceived as the most valuable, unique and hard-to-replicate resources. Normally, SMEs are motivated to interna- tionalize their business when they find that domestic markets for their products or servic- es are on the decline or are going to be satu- rated. This decision may also be made when SMEs want to maintain gradual development, to adopt further useful skills for their current and future work, to access advanced tech- nologies and other funding sources, as well as to access to extra network/social ties and sup- ply chain links. Compared to larger sized firms, SMEs generally depend less on com- prehensive hierarchy, and thus have more flexibility in making decisions, promptly sat- isfying customer needs, and obtaining coop- erative partners to gain synergetic achieve- ment. However, SMEs also face to numerous difficulties, particularly in entering and expand exports markets. An inadequate understanding of overseas markets and the shortage of information to analyze markets are identified as major barri- ers for SMEs in internationalization. When entering foreign markets, many potential and current exporters find that because of the shortage of information, they encounter diffi- culties in identifying foreign business oppor- tunities by locating, analyzing and selecting foreign markets, as well in making contact with potential customers in international mar- kets. However, in searching the data required for market investigation, there could be prob- lems with regard to the source, the compara- bility, and especially the quality of the infor- mation needed. The constraints of time, resources and expertise may be major factors that inhibit SME managers from adequately investigating international markets. In investigating international markets, cus- tomer identification is generally one of the most important tasks for both current and potential SME exporters. However, geo- graphical and cultural distances, as well as the limited access to sources listing potential customers, can often inhibit communications between SME managers and their potential customers. Despite having a competitive advantage, some SMEs are likely to encounter confusing and intense behavior from various competitors both in the export countries and other countries. Some interna- tional competitors may have other advantages out of the SME's control, such as low produc- tion costs, government protection and product differentiation. The success or failure of the export busi- ness is significantly affected by the ability of managers to secure orders, deliver products on time and safely. In supplying products and services internationally, SMEs may face numerous unexpected situations that could lead to a shortage of product provision. In particular, larger geographical distances between the seller and the buyer in exporting may lead to delays in delivery. As a result, the credibility of SMEs among customers may be reduced; thus sales and profits from potential and current customers may be lost, while costs for using faster, more effective trans- portation may be added. In addition, the man- ager may find it more difficult to control the goods for longer periods of time, as more shipping and collections documentation may be required, and the necessary shipping insur- ance coverage may be more extensive and the packaging must be suitable. In many cases, exporters find it hard to locate warehousing facilities with adequate conditions or 63 Trade Science Review TRADE SCIENCE REVIEW ’S TSR advanced technology to safeguard the quality of their products, especially the quality of food products. 1.3. Management capacity building for Vietnamese SMEs in internationalization SMEs play a crucial role in the economic development of Vietnam. SMEs are often considered the primary source of GDP, exports growth and employment creation. With regard to economic integration, Vietnamese SMEs have again been consid- ered as main contributor to the development and globalization of the country via its inte- gration into both regional and global supply chain. Numerous policies and programs sup- porting the development of SMEs have been developed and implemented such as Government Decree No.90/2001/ND-CP and Government Decree No.56/2009/ND-CP on supporting the development SMEs, and the Prime Minister Decision No. 1231/QD-TTg on the approval of SME Development Plan 2011-2015. However, in the process of transitioning from a centrally-planned economy to a mar- ket-oriented one, many Vietnamese SME managers still lack vital skills to compete suc- cessfully in international markets. The short- age of management capacity has been identi- fied as one serious limitation of Vietnamese SMEs. This is partly because most SME man- agers are not well-trained in business admin- istration. The lack of management capacity can lead to a limitation in vision in interna- tionalization of managers in SMEs. The need to develop training programs for Vietnamese SME managers has been considered signifi- cant both to government agencies and to SMEs. In Vietnam's 2001-2020 Social Economic Development Strategy, investment in HR is considered the key target; the devel- opment of skilled HR and SME managers is prioritized. Recently, the Vietnam Government has established Joint Circular No. 04/2014/TTLT-BKHDT-BTC, guiding the support of HR training and fostering for SMEs. Therefore, a study is necessary that investigates the training needs of SME man- agers to enhance their capacity in entering and expanding foreign markets. 2. Methodology This research focuses on investigating training needs of SME managers in exports. Based on such identification, training pro- grams to enhance managerial skills required in entering and expanding international mar- kets are provided. Historically, training needs analysis has been seen as the phase or tool by which the training content is determined. In the book "The human resources glossary", Tracey (2004), p.678 identified training needs as "the first step in the training process, designed to identify performance gap that can be reme- died by training. It consists of surveillance, investigation, and data analysis". When these training needs are considered and satisfied, human capacity is expected to improve and organizational performance is anticipated to increase. Additionally, through the process of training needs analysis, training developers are likely to have clearer recognition of the specific contents needed for the training course. Furthermore, through the analysis process, training providers will obtain a better understanding of the target audience (the sub- ject of the analysis), the training gap and the proposed content. This study aims to identify the managerial skills and training support needed for Vietnamese SMEs to enter and expand their international business. By using focus group interviews, the researcher had opportunities to better understand training needs arising in the process of entering and expanding foreign markets of Vietnamese SME managers, 64 Trade Science Review TRADE SCIENCE REVIEW ’S TSR which added depth and significance to the data collected. Managerial skills required in entering and expanding international markets have been studied by many scholars such as Javidan, Teagarden & Bowen (2010); Nordstrom &Kleiner (1990); Yu et al. (2005). However, no study has examined the training needs for the internationalization of Vietnamese SMEs. The following main research question has been investigated and guides this study: "What are the perceptions of Vietnamese SME managers with regard to training needs to improve managerial skills to enter and expand foreign markets?" Issues raised in the research question are discussed under the different viewpoints of Vietnamese SME potential and current exporters. The research model is presented in Figure 1 below To study perceptions of Vietnamese SME managers about training skills needed, quali- tative interview is considered as the most appropriate method. Primary data was col- lected in the form of semi-structured inter- views. This type of interview provides the researcher the opportunity to probe answers where the interviewees are asked to explain or build on their responses, and add depth to the qualitative data. In this study, the interview was conducted in the focus group style. This type of inter- view helps the researcher to interview a large number of individuals. In particular, focus group interviews are beneficial when the research is related to a representative sample or clearly defined population such as groups of SME potential and current exporters in this study. Furthermore, the opinions of partici- pants in groups are not only encouraged, but are also evaluated based on the views of other group members. Thus, the focus group inter- view allows the participants' perspectives to be presented in ways that are different from an individual interview, such as through fur- ther discussion or questioning among partici- pants. This is often deemed an important ben- efit of such qualitative research. 65 Trade Science Review TRADE SCIENCE REVIEW ’S TSR Figure 1: Research model Identification of managerial skills needed to enter and expand foreign markets By SME potential exporters By SME current exporters Recommendations with regard to the training programs on managerial skills needed to enter foreign markets for SME potential exporters Recommendations with regard to the training programs on managerial skills needed to expand foreign markets for SME current exporters Nonetheless, using focus group interviews requires the interviewer ability to organize and manage focus groups effectively. During the group interview, interviewers often have to deal with two types of 'difficult' partici- pants: reticent participants and overly promi- nent participants. The interviewer needs to ensure that all group members have opportu- nities and are encouraged to express their own opinions. In addition, using focus group data, the researchers often face difficulties relating to the variations in voice pitch and from having to decipher who said what. In this research, by using two good quality audio recorders as the main instruments to record the interviews, this difficulty was overcome. According to Richard A.Krueger and Mary Anne Cesey (2009), authors of the book "Focus groups: A practical guide for applied research", the qualitative data collected by using individual interviews may be quantified by counting the frequency of individuals' responses on particular topics. However, these authors also emphasized that quantify- ing qualitative data collected by using focus group interviews should be avoided. Firstly, individuals often repeat their opinions when discussing, asking or answering questions raised by other members. Secondly, individu- als tend not to show opinions previously stat- ed by other members. Further, the sample size in the research using group interviews is usu- ally not large enough to ensure the generation of data. Therefore, in this paper, perceptions of SME managers wereanalyzed by using a step-by-step procedure suggested by Cresswell (2014), and the qualitative data was not quantified. In this study, of the 58 participants (SME managers) coming from three big cities of Vietnam, including Hanoi, Da Nang and Ho Chi Minh City, 23 were potential exporters and 35 were current exporters. In each region, four focus group interviews were conducted and each interview lasted approximately 60 to 90 minutes. The data collection was facilitat- ed by the Agency for Enterprise Development (AED) (Vietnam Ministry of Planning and Investment - MPI). According to Cresswell (2014), in the process of data analysis, the qualitative researcher uses a step-by-step procedure to systemize the data analysis process. In such a process, the researcher is required to organize the data, conduct a preliminary read-through of the database, code and organize themes, and organize the data in a form for interpretation. Once the data had been transcribed and translated, the researcher reads through the data to gain a general sense of the informa- tion. Afterward, a summary of the key points derived from the transcripts was created. In this summary, the long statements were com- pressed into briefer statements in which the main sense of what had been said was rephrased in fewer words. Through the process of transcribing and summarizing data in this study, the researcher obtained initial ideas about main themes which were helpful in the following stage of data analysis.As a result, a list of initial topics was created. The similar topics were then clustered together and arranged as main topics, unique topics and leftovers. These categorized topics were then processed as codes and used for process- ing the qualitative data. In this research, qualitative computer soft- ware, QSR Nvivo, was used for coding, organizing and sorting the information. Main themes and sub-themes were used as "codes" of Nvivo. Transcripts were imported into the Nvivo system. "Unit" of data was then attached to appropriate codes. A unit of data might be a sentence, some sentences, a line of a transcript, a number of words, or a para- graph derived from imported transcripts. By using Nvivo, in a large amount of data as in this study, the researcher may be able to quickly locate all the text segments (or pas- sages) coded the same, and observe whether 66 Trade Science Review TRADE SCIENCE REVIEW ’S TSR the responses to a code idea were similar or different. The findings of this study's analysis were conveyed by using a narrative passage in which the detailed discussions were based on main themes, sub-themes, specific illustra- tions, multiple perspectives from individuals, and quotations or a discussion with inter-con- necting themes. Main themes emerged from this study's group discussions, while the ver- batim responses were used to emphasize the content of the responses. 3. Results Analysis 3.1. Entering foreign market skills need- ed by Vietnamese SME potential exporters Foreign market investigation skills Due to the shortage of export experi- ences, the general foreign market investiga- tion skills would be extremely beneficial for Vietnamese SME potential exporters to expand markets internationally. They needed basic market investigation skills and general understanding about international business to start investigating brand new overseas markets. To start doing international business, many potential exporters needed general skills to identify, investigate and evaluate potential partners. Especially, skills to examine the financial ability and particular needs of foreign partners were taken into account by potential exporters. Besides, the understanding about needs of partners in tar- get markets was also perceived helpful for them in making plans to export.Potential exporters also believe that acquiring skills to investigate the needs of customers is highly important. One director of a souvenirs com- pany shared: "If we do not know about the actual needs of foreign customers, we could not provide the appropriate products that may satisfy their needs." The potential exporters also deem as important the skills required to identify gaps in foreign markets as export opportunities, as well as to improve the quality of potential export products in accordance with the needs of the export markets. One director of a mechanical products company emphasized: "I think the knowledge about the market gap in foreign markets is important. To compete with rivals in foreign markets, we also need to know about the capacity of competitors and the level of satisfaction of potential customers in target markets. If there is a gap, we need to know how our current products may fill the gap of customer needs." In addition, information-processing skills are also perceived as essential for potential exporters, especially setting up and planning strategies, and making key decisions to enter other markets. Skills to complete export activities In addition to foreign market investigation skills, Vietnamese potential exporters also desire the skills needed to adequately com- plete export activities. As they are not that familiar with export activities, they want to know the steps required to send products overseas, as well as how to manage activities during this process. One manager of a stain- less stell products company expressed thus: "For the potential exporter company, com- pleting required steps to export products to overseas markets is the great challenge." Among the potential exporters, under- standing the needs of customers is perceived as a skill that they desire; along with the skills needed to conduct export activities involving the sending of goods to customers. One direc- tor of a wooden products company said: "As my company has never exported, I would like to know about the procedures in exports, especially after I get information about the need of customers and our supply capacity." Potential issues concerning transportation are matters that potential exporters would like to understand. They would like to have the skills to transport products overseas both on time and safely. In addition, an understanding 67 Trade Science Review TRADE SCIENCE REVIEW ’S TSR of the process of indirect exports was also noted by potential exporters. Table 1 below summarizes the entering foreign market skills needed by potential exporters. 3.2. Expanding foreign market skills needed by Vietnamese SME potential exporters Foreign market analysis skills With regard to foreign market analysis skills, Vietnamese current exporters need to better understand the advantages and disad- vantages of specific markets that they approach, especially more risky markets such as in Africa. From their perspective, specific markets contain various problems and chal- lenges; thus knowing about typical issues in particular markets would be beneficial for them. In addition, market investigation skills are also expected to help them obtain an ade- quate understanding of the requirements of specific export markets, to appropriately amend their export products in order to enhance the export performance. With most looking beyond markets matching their cur- rent export products, many believe that prod- uct changes need to be made to further devel- op business in current export markets, as well as to expand into other markets. As shared by an exporter: "In export, companies, especial- ly SMEs, find it hard to have a comprehensive understanding about overseas markets. We need to know how to provide products in accordance with requirements of export mar- kets. Furthermore, we would like to know how to conduct market research to see how our products have to be changed to meet the require- ments of specific markets." In addition, skills to adequate- ly investigate cus- tomer needs and competitor capa- bilities were also stressed by SME export managers. They would like stronger customer-seeking skills, particularly to investigate customer needs in specific mar- kets, to potentially expand export markets, as well as to provide better products in accor- dance with local customer demand. According to one exporter: "Without good knowledge about customer needs, SMEs may provide inappropriate products which do not match with the demand in markets, and in some cases these exported products have to be returned." Vietnamese exporters also highlighted that skills are needed to evaluate the accuracy of information concerning potential partners' profiles, as well as to recognize partners' pur- poses in business, especially those from risky markets. In many cases, SME managers have found it difficult to examine the contact infor- mation provided by foreign partners, even if they conducted online research. Vietnamese exporters get used to asking for the support of the commercial chambers, embassies and trade delegations to check the information about partners in certain markets. However, in some of the more difficult markets such as in Africa, it was often hard to obtain the rele- 68 Trade Science Review TRADE SCIENCE REVIEW ’S TSR Table 1: Entering foreign market skills needed by Vietnamese SMEpotential exporters Foreign market investigation skills Basic foreign market investigation skills, and general understanding about international business Understanding of financial ability and needs of foreign partners Understanding the needs and satisfaction levels of customers with regard to a product’s export, and the capacity of competitors to satisfy the gap in potential markets Information-processing skills to develop strategies and make key decisions about entering foreign markets Skills to complete export activities Understanding the steps required to send products overseas Understanding potential issues concerning overseas transportation vant information. As an example, registered names accompanying company profiles that were available at the local chamber of com- merce were often related to companies that were no longer operating or in business. This has caused difficulties for Vietnamese exporters in examining the real capacity of potential partners, which is perceived as a very important component in exports. Many believe it is highly unstable to sign export contracts with more risky companies, as explained by one of the exporters: "Some potential partners showed great interest, but due to poor information, especially poor information about the financial ability of partners, I was hesitant to work with them." In addition to partners' profile information, SME exporters also want to know how to identify the business purposes of such part- ners in importing their products, such as to sell directly to consuming markets or to re- export to other countries, to gauge whether to continue developing sales in these markets or to re-export to other countries. By capturing such information, exporters might also be able to plan effective strategies to produce and supply appropriate products, as well as to expand to other markets in the future. Vietnamese exporters also voiced a need to better understand competitors' products, and the strengths and weaknesses of rivals in the target export markets. They believe that only when they have good knowledge of customer product needs and the competition are they able to convince customers to purchase their products. Greater understanding and perfecting the steps in exporting process Vietnamese exporters highlighted skills to conduct this process smoothly, flexibly and effectively. In particular, they would like to know which objective matters they must strictly follow, and which subjective matters provide flexibility in the negotiation export process. One experienced exporter explained: "For example, concerning the offer of freight carriers, if we have good knowledge about international business, we may know exactly which fee we must pay and which fee we may negotiate, and ask for the exemption." To send products overseas smoothly, an understanding of the required export proce- dures and documents was emphasized by Vietnamese exporters. For example, one exporter shared that when he previously exported shoe linings to the US, he was fre- quently asked for the product certification to prove that the medical association had certi- fied his products. In practice, many issues continuously arise during the export process which the exporter needs to immediately respond to. SME exporters opined that they often found it dif- ficult to seek prompt solutions, especially when they lack valuable negotiation skills. Thus, negotiation skills to handle such issues are perceived as necessary to them. One exporter shared his negative experience as follows: "In some cases, although terms in contracts were clearly identified and double- checked, when our products landed in over- seas markets, partners still complained that some of our exported products were missing or had faults. At such times, we felt embar- rassed and were often placed in a dilemma. It was not easy to argue with them and it was harder to take the goods back. We do not know how to handle these issues effectively and amicably." Table 2 below summarizes the expanding foreign market skills needed by current exporters. 4. Recommendations Entering foreign market skills has been identified as one of the most important mana- gerial skillsets for international business in the studies of a range of scholars such as Javidan, Teagarden and Bowen (2010); Nordstrom and Kleiner (1990); and Yu et al. (2005). Enhancing these skills may help SME 69 Trade Science Review TRADE SCIENCE REVIEW ’S TSR managers to overcome numerous barriers in penetrating international markets. Based on the identification of managerial skills Vietnamese SME managers need in entering and expanding foreign markets, the recommendations to develop training pro- grams for Vietnamese SME potential and cur- rent exporters are provided. With some skills, the common training programs may be pro- vided to both groups of Vietnamese man- agers. Whereas with other skills, separated training programs for each group of Vietnamese managers may be more appropri- ate and effective. Furthermore, in the com- mon training courses, the trainers and training providers should take into account the partic- ular needs and characteristics of managers in each group to balance the benefits for them. Similarly, in the separated training programs, the training providers and trainers should consider the individual needs of managers to let them join the appropriate courses. The managers in both groups may have interests in specific aspects of training programs based on their knowledge requirements. For exam- ple, new exporters could register to attend some sessions in training programs for poten- tial exporters, enabling them to have a clear understanding of export start-up proce- dures. This study recom- mends that the train- ing on skills to enter and expand foreign markets should con- sider three main topics - skills to investigate foreign markets, skills to investigate partners, and skills to investi- gate customers and c o m p e t i t o r s . Nonetheless, in devel- oping training pro- grams, the training providers and trainers should also consider the numerous differ- ences in manager needs relating to specific entering foreign skills that may influence the training contents. Entering foreign market skills training programs for Vietnamese potential exporters The training program on entering foreign market skills for Vietnamese potential exporters, in the first instance, should provide participants with a general understanding of the business environment, and prepare them with basic skills to investigate foreign mar- kets. The training should give participants guidance on conducting initial overseas trips to investigate foreign markets. Subsequently, the training could provide potential exporters with methods to investigate three key stakeholders in foreign markets; that is, the partner, the customer and the competi- tor. Accordingly, the training should focus on: (1) skills to identify and evaluate potential for- eign partners; (2) skills to address the needs of customers; and (3) skills to investigate com- petitors. These skills may support potential exporters to seek market gaps, in order to pre- pare effective export plans. Additionally, train- ing on information seeking and processing 70 Trade Science Review TRADE SCIENCE REVIEW ’S TSR Table 2: Expanding foreign market skills needed by Vietnamese SME current exporters Foreign market analysis skills Skills to evaluate advantages and disadvantages of target markets to undertake innovation product development Skills to identify changes in the needs of customers Skills to evaluate the accuracy of information concerning partners’ profiles, especially those from risky markets Skills to investigate the current competitive products, as well as strengths and weaknesses of rivals in export markets Greater understanding and perfecting the steps in exporting process Skills to complete export process smoothly, flexibly and effectively Skills to handle export issues, such as those concerning foreign partner complaints relating to quality and quantity of exported products skills would be helpful for potential exporters to investigate potential partners, customers and competitors. Since many potential exporters lack export experience, training programs on skills to complete export activities should provide trainees with a checklist of steps required in the export process. In such a checklist, detailed guidance for specific steps and sug- gested ways to conduct vital activities across the different steps are recommended. For example, guidance on approaching foreign partners in the initial steps, or advice on choosing appropriate transportation in the lat- ter stages would be beneficial for newcomers like potential exporters. Expanding foreign market skills training programs for Vietnamese current exporters The training program on foreign market investigation skills for Vietnamese exporters should take into account a range of skills including investigating foreign markets, part- ner investigations, and investigating cus- tomers and competitors. Moreover, the con- tents provided in this training should be spe- cific and advanced. Accordingly, the training on foreign market investigation skills should focus on studying the particular requirements of markets to assist exporters in product inno- vation that is targeted to those particular mar- ket needs. The training on partner investiga- tion skills should include skills for identifying the financial ability of partners, particularly those from more risky markets. The training on skills to investigate customers and com- petitors should concentrate on enhancing the ability to identify current and potential needs of customers, and the capacity of rivals in export markets. The training on skills to perfect the steps in exporting process should provide exporters with methods to undertake various steps in exports both flexibly and effectively. There could be practical advice or useful tips across various export stages, such as negotiations, payments or overseas delivery. In addition, the training should provide exporters with appropriate actions that could be taken in var- ious export situations. In particular, this could relate to more common difficulties and traps the Vietnamese exporters may face in prac- tice, especially more risky activities such as contract negotiations and payments. Training programs provided in this study are expected to be beneficial to SME managers and training providers in organizing programs sup- porting Vietnamese SME managers in exports. Also, from this nationwide study, the govern- ment agencies may use the findings to develop policies and strategies to support Vietnamese SMEs. In particular, being developed based on the actual needs of SME managers, these train- ing programs may be used in the implementa- tion of government support strategies such as those stated in Decree 56/2009/ND-CP on Assistance to the Development of SMEs. Further, there has been no study examining training needs and developing training pro- grams to support Vietnamese SMEs to enter and expand foreign markets. Therefore, the outcomes of this study are anticipated to offer richer insights, from the perspective of devel- oping countries such as Vietnam, into the issues under investigation. Summary Doanh nghieäp nhoû vaø vöøa (DNNVV) ñöôïc xaùc ñònh laø moät nhaân toá quan troïng trong chieán löôïc phaùt trieån kinh teá cuûa Vieät Nam, ñoùng goùp moät phaàn ñaùng keå vaøo GDP, toång giaù trò xuaát khaåu (XK), vaø ñaëc bieät laø nguoàn quan troïng taïo ra coâng aên vieäc laøm cho xaõ hoäi. Tuy nhieân, trong boái caûnh Vieät Nam hoäi nhaäp ngaøy caøng saâu vaø roäng vaøo kinh teá quoác teá, moät soá löôïng khoâng nhoû caùc nhaø quaûn trò DNNVV Vieät Nam vaãn thieáu caùc kyõ naêng caàn thieát ñeå vöôït qua khoù khaên, tieáp caän, môû roäng thò tröôøng XK, vaø taän dung cô hoäi ñeán töø caùc hieäp ñònh 71 Trade Science Review TRADE SCIENCE REVIEW ’S TSR thöông maïi nhö TPP. Trong phaïm vi baøi vieát naøy, treân cô sôû nghieân cöùu nhöõng lyù luaän cô baûn veà ñaøo taïo vaø nhöõng khoù khaên cuûa DNNVV trong XK, phaân tích nhu caàu ñaøo taïo cuûa caùc nhaø quaûn trò trong caùc DNNVV XK vaø DNNVV coù tieàm naêng XK (CTNXK), taùc giaû ñeà xuaát moät soá chöông trình ñaøo taïo naâng cao kyõ naêng xaâm nhaäp vaø môû roäng thò tröôøng quoác teá cho caùc DNNVV Vieät Nam. References 1. Buckley, R &Caple, J 2009, The Theory and Practice of Training, Kogan Page, London. 2. Javidan, M, Teagarden, M & Bowen, D 2010, Making it overseas, Harvard Business Review, vol. 88, no. 4, pp. 109-113. 3. Nordstrom, JO &Kleiner, BH 1990, What international skills are needed by man- agers of today and tomorrow?, Industrial and Commercial Training, vol. 22, no. 5, pp. 24-30. 4. Paunovie, Z & Prebežac, D 2010, Internationalisation of small and medium- sized enterprises, Internacion alizacija Poslovanja Malih I Srednjih-Poduzeca, vol. 22, no. 1, pp. 57-76. 5. Ruzzier, M, Hisrich, RD &Antoncic, B 2006, SME internationalisation research: Past, present, and future, Journal of Small Business and Enterprise Development, vol. 13, no. 4, pp. 476-497. 6. Government of Vietnam 2012, Decision No. 1231/QD-TTg approving the plan for developing medium and small enterprises 2011-2015, Hanoi. 7. Yu, C-MJ, Guan, J-L, Yang, K-P &Chiao, Y-C 2005, Developing the skills for interna- tional business management: The implications of the management education opportunity grid, Journal of Teaching in International Business, vol. 16, no. 4, pp. 5-26. 72 Trade Science Review TRADE SCIENCE REVIEW ’S TSR LE TIEN DAT 1. Personal Profile - Name: Le Tien Dat - Date of birth: 15/09/1982 - Title: Doctor of Economics - Workplace: Vietnam University of Commerce - Position: Lecturer 2. Major research directions: - Management, Training, Internationalization, SMEs 3. Publications the author has published his works: - Trade Science Review - Vietnam Trade and Industry Review ù ù

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