University of Finance-Marketing
EXPORT CONTRACT
NEGOTIATION
PhD. Nguyen Thi Thuy Giang
GROUP 4
CLC_22DTM07
BUSINESS
MEMBERS TEAM
Anh Thơ Thanh Toàn Phúc Minh
Trầ n Trang Hà My
CONTENTS
01 Detailed overview
02 The key Interests, BATNA, ZOPA, Power and
Mutual Beneficial Agreements reached
03 Steps in negotiation process
04 Cultural examination
05 Strategic decisions and tactics implemented
base on principled negotiation
06 Conclusions
INTRODUCTION
An Bình International Food Company Limited is a
leading Vietnamese food company specializing in the
production, processing, and export of a wide range
of food products. With a strong commitment to
quality, authenticity, and sustainability, An Bình aims
to bring the rich flavors of Vietnamese cuisine to the
global market.
Bring Vietnamese tropical fruits to customers all over the
Our Mission
world. From there, we have embraced the superfruits of
the Vietnam, all flash frozen at their peak freshness.
To be a global leader in the export of Vietnamese food
products, recognized for our commitment to quality,
Our Vision sustainability, and cultural preservation.
PRODUCT
AN BINH
INTERNATIONAL FOOD
COMPANY LIMITED
INTRODUCTION
Amafruits LLC is a leading importer and distributor of Amazon
superfruits in the United States. We are committed to providing
high-quality, fair-trade, and sustainable products while supporting
the Brazilian community.
Bring traditional and sustainable Brazilian acai to
customers in the United States, while supporting the
Our Mission Brazilian community. From there, we have embraced
the superfruits of the Amazon, expanding into acerola,
cupuacu, graviola, and more, all flash frozen at their
peak freshness.
To be the leading global distributor of Amazon
superfruits, inspiring a healthier and more
Our Vision sustainable lifestyle through the power of
nature.
PRODUCT
AMA FRUITS LLC
BUSSINESS STRATEGY
AN BINH FOOD CO.LTD ANBINH FOOD CO.LTD revolves around high-quality food
production, market expansion through both exports and e-
commerce, and maintaining a strong brand presence by
emphasizing its Vietnamese heritage. By focusing on
sustainability, food safety, and responding to health-conscious
consumer trends, the company positions itself to grow in both
domestic and international markets.
Amafruits LLC is a leading provider of Amazon superfruits
in the U.S.Their wild-harvestes superfruits dedicated to
AMAFRUITS LLC
offering gluten-free, non-GMO, and USDA Organic açaí
and acerola products.Also share the wonderful flavors and
nutritious benefits of superfruits from Brazil through
environmentally friendly practices, support preservation of
the Amazon Rainforest, and contribute to fair trade with
communities that help preserve the Amazon Rainforest.They
cater to health-conscious consumers seeking nutritious,
convenient superfruits from Brazil.
FROZEN PINK PIYATA CUBE
Dragon fruit, also known as pitaya or the strawberry pear, is a
beautiful tropical fruit that is sweet and crunchy. The plant the fruit
comes from is actually a type of cactus of the genus Hylocereus,
which includes only about 20 different species. Originally mainly
popular in Southeast Asia and Latin America, dragon fruit is now
grown and enjoyed all over the world
Specification:
Composition: 100% natural Vietnam pitaya
Color: pink to pink purple, white.
Coliform: <10 CFU/g
Brix: 15%
E.coli: 0 CFU/g
Storage Conditions: Frozen: (-18) Celcius degree or below
Packing:
Bulk packing: PE bag in carton box (10/20kg)
Retail packing: bag-in-box: 100gr, 500gr, 1kg, 2kg, 5kg or as
customer’s request
Shelf life: Frozen: 24 months
Size: chunks, dices, slices, halves, puree, whole
Harvest season: year-round
II. THE KEY INTERESTS, BATNA, ZOPA, POWER, AND MUTUAL
BENEFICIAL AGREEMENTS REACHED
DELIVERY PRICE
INTEREST QUANTITY
PAYMENT TERMS
QUALITY
AN BINH INTERNATIONAL FOOD AMAFRUITS LLC
CO.,LTD
PRICE
Get the highest price as Gain a price as reasonable and
possible (USD 1.7-2.55/kg CIF competitive as possible (USD
1.3-2.2/kg CIF Chicago port, USA
Chicago port, USA under
under Incoterms 2020)
Incoterms 2020)
QUANTITY Export as much as possible to Meeting demands about the
quantity of ordered goods to
ensure production efficiency
make sure that business plan, as
=> An order must be at least well as business operations, go
12,000kgs of Vietnam Frozen without problems (19,200kgs
Pink Pitaya Cube, grade 1, crop +/- 5%)
2024
AN BINH INTERNATIONAL FOOD AMAFRUITS LLC
CO.,LTD
QUALITY Committing the products meet Export standards, international
the highest quality standards. standards
=>certificate: USDA, JAS, ISO As samples that both sides
22000:2005, HACCP, Kosher
have agreed
Certification,
DELIVERY Hold right of transportation to Self-transport => control risk
gain more profit and cost => suggest FOB
=> suggest CIF suggest partial shipments
Time of shipments: around 10-15 Time for first shipment is around
days after signing contract 13 days after signing contract.
PAYMENT
AN BINH INTERNATIONAL FOOD AMAFRUITS LLC
CO.,LTD
pay for partial shipment so that
Get the amount of money as they can sell and raise profit then
quick as possible => suggest pay for the seller.
L/C at sight that bank will pay through T/T for 20% in
control payment advande, 50% after receive set of
documents and the remaining will
be fulfiled
MUTUAL BENEFICIAL AGREEMENTS REACHED
PRICE QUALITY
both parties agree with the price
USD 1.7-2.2/kg CIF to make sure that both parties have reached a consensus that
products must be meet the export standard
the agreement is reached and each
and the same with the sample that agreed by
party has their own profits.
both sides as well
QUANTITY DELIVERY
AMAFRUITS placed an order for 19,200kgs both parties have reached to common
which meet the requirement of An Binh. ground in using CIF Chicago port, USA
Therefore, An Binh has the responsibility to
Incoterms 2020 which is suitable with the
ensure enough quantity to export in order
ability and benefit of both sides. Besides,
not to interrupt the business operation of
partial shipments is allowed
AMAFRUITS
PAYMENT
both parties agree with payment through L/C but not 100% invoice
value in advance. It should be divided into 2 times: 60% in advance
and the remaining will be fulfilled after receive documents from
banks.
MARKET POSITION
POWER FINANCIAL POTENTIAL
PRODUCTION
TECHNOLOGY
MARKET POSITION
AN BINH INTERNATIONAL FOOD AMAFRUITS LLC
CO.,LTD
Many years experience of continuous Proud to be a prestigious company
development, and export of a wide that provides high-quality superfruits
range of agriculture products. that meet international standards
company has prestigious reputation, and is committed to lead
trusted by many domestic and sustainability.
international customers with variety Export to many countries in the world
of high-quality products such as:
frozen fruit, dried fruit, fresh fruit…
Financial Potential
An Binh International Food Co.,Ltd
posing us stability and growth potential over the years, and willing to
deal with financial matters during business operations.
Over the years, the company has demonstrated consistent growth in net
sales, operating profit…
The increase in exporting volume suggests a healthy financial situation.
01
Export and import volume increase steadily last year.
Despite the fluctuation of market, company still poses the
consistent growth and financial stability over the past few years.
AMAFRUITS LLC
Production technology
An Binh International Food Co., Ltd
proactively investing in innovating our advanced manufacturing technologies to
improve product quality, ensure food safety and hygiene without polluting the
environment.
organic farming model circular production helps protect the environment and
minimize the impact of climate change.
harvest in the most natural way
AMAFRUITS LLC
our products are produced to the highest standards of quality with advanced
technology.
harvest most naturally by wild-harvesting techniques, do not affect the
evironment, bring the most powerful superfruits while respecting the
rainforest,encouraging organic pratices
ZOPA
Zone Of Possible Agreement
This zone is considered to be an area where two or more
negotiating parties may find common ground, parties will often
compromise and strike a deal. Basically, it is the intersection
between seller’s lowest price and the buyer’s highest price.
ZOPA Zone Of Possible Agreement
USD 1.7/kg CIF worst case USD 2.55/kg CIF desired price
exporter’s settlement range
ZOPA
importer’s settlement range
USD 1.3/kg CIF desired price USD 2.2/kg CIF worst case
BATNA
Best Alternatives
To a Negotiated
Agreement
BATNA is a technique that helps us determine and
secure the best alternatives, the aim of being
prepared to face any scenario and reach the most
profitable agreement. To put it simply, a party’s BATNA
is what a party’s alternative is if negotiations are
unsuccessful
BATNA
Step 1: Develop a list of actions you
may take if no agreement is reached
Step2: Filter the lists
Step 3: Choose an option that seems
to be the best one
Step 1: Develop a list of actions you
may take if no agreement is reached
- Offer a discount when buying a large amount such as
ordering 19,000 kgs to get 2% discount.
- Make a full payment or deposit 80% in advance to be
offered a competitive price as USD 1.7/kg CIF
Step 2: Filter the lists
- Offer a discount when buying a large amount such as
ordering 19,000 kgs to get 2% discount.
sell a large number of goods so that we can earn much
profit although we offer a discount for them. => It is a
feasible BATNA
- Make a full payment or deposit 80% in advance to be
offered a competitive price as USD 1.7/kg CIF
we have corporated severals time so making full payment
or deposit is feasible. Offering importers to pay in full in
advance gives our company more power in negotiation. It
is a feasible BATNA
Step 2: Filter the lists
- Offer a discount when buying a large amount such as
ordering 19,000 kgs to get 2% discount.
we consider it to be the best and the most suitable for
An Binh
III. STEPS IN
NEGOTIATION
PROCESS
Stage 2:
Stage 1: Stage 3:
Face to face
Pre-negotiation Post-negotiation
negotiation
Step 1: Preparation Step 4: Persuation Step 6: Agreement
Step 2: Building the Step 5: Concessions
relationship
Step 3: Exchange
information and the first
offer
Step 1: Preparation
Make clear the goal that
setting for this negotiation.
Researches, makes a list of
suppliers and decide to
choose the most suitable
partner.
Step 1: Preparation
Building an agenda, identify
the negotiator, which
problem must be negotiated
and the goals for each part.
Know the relationship want to
build/maintain, prepare their BATNA,
ZOPA. Establishing many alternative
options. Identify the strategy to
approach AMAFruits.
Step 2: Building the relationship
Approach and build the
positive relationship with the
partner through social or
personal connection.
Have some informal meetings
with the partner (going for meals,
going to visit the office…) to
establish a foundation of trust
and understanding.
Step 3: Exchange information
and the first offer
At initial work of negotiation, exchanged information about
the transaction:
Product specification: Vietnam Frozen pink pitaya cube
Price: 1.7-2.55 USD/kg
Quantity: at least 12,000 kgs
Payment method: L/C at sight
Delivery: around 10-15 days after signing contract
Other specific conditions
These information is the starting point for negotiation.
Step 4: Persuasion
The beginning of true negotiation, During the bargaining stage, it's
time to advocate for their essential to be mindful of both
proposed solutions and listen to verbal and nonverbal cues from
the other side's counterproposal. the negotiation partner.
Step 4: Persuasion
Needs to be mindful about ‘dirty trick’
in international negotiation
Dirty trick are negotiation tactics that pressure
opponents to accept unfair or undesirable
agreements or concessions.
Step 5: Concessions
Maintaining an open mind is
essential throughout the
negotiation process.
Starting with items of mutual
agreement can foster cooperation and
set a positive tone for the negotiations.
Step 5: Concessions
HOLISTIC
There are two Discussing all issues before
primary styles beginning the concession-
of concession making process.
making
SEQUENTIAL
Each side reciprocates concessions,
creating a back-and-forth exchange
Step 6: Agreement
After reaching an agreement,
each party involved in the
negotiation takes on the
responsibility of implementing
their portion of the agreement.
IV.
Examine
4.1. HIGH & LOW CONTEXT CULTURE
the 4.2. COMPARING CULTURES BETWEEN
culture
UNITED STATE AND VIETNAM
IV. Examine the culture
4.1. HIGH & LOW CONTEXT CULTURE
High context refers to societies or groups where people have
close connections over a long periods of time.
Many aspects of cultural behavior are not made explicit.
Low context refers to societies where people tend to have
many connections but shorter duration or for some reasons.
Cultural behavior and beliefs may need to be spelled out explicitly so
that those coming into the cultural environment know how to behave.
DEFINITION
VIETNAM - HIGH CONTEXT CULTURE
Vietnamese often communicate indirectly.
The communication style of beating about the bush, combined with their interest in learning about the
communication objects, have created a habit in Vietnamese people that a greeting has a question attached.
Communication relies heavily on understanding the situation and context.
They constantly “tuned” to the moods of the other people during interaction; and expect the others to be
similarly sensitive.
Vietnamese people value politeness and avoid offending others.
They may hesitate before speaking to avoid making mistakes and being decisive. Therefore, smiling is a
common way to express politeness and maintain harmony before they say something.
Respect for long silence.
They wait politely until the other person has stopped speaking before taking turns.
UNITED STATES - LOW CONTEXT CULTURE
They rely on literal words more than non-verbal cues.
These are the communication characteristics of Northern Europe and North America, they express
themselves clearly.
They use a direct and straightforward communication style.
The main function of speech is to express opinions and thoughts clearly, logically, and persuasively.
Low-context cultures value clear understanding and specific actions, making
negotiations effective.
They often use formal, legal agreements to sign contracts.
IV. Examine the culture
4.2. COMPARING CULTURES BETWEEN UNITED STATES AND VIETNAM
01
02
POWER DISTANCE INDIVIDUALISM
refers to the degree of inequality that exists and is refers to the strength of the ties that people have to
accepted between people with and without power. others within their community.
The U.S has low The U.S values
power distance, individualism and
meaning there’s independence.
focus on power
differences. People are responsible
for their own decisions.
People can freely
express their views, => Focus on personal
even to superiors. interests, build good
relationships, respect your
=> Encourage partner's independence,
interaction, a candid and emphasize the
exchange of ideas, and competitiveness of your
respect for both sides' products.
perspectives. Be willing
LOW SCORE to adjust terms to reach HIGH SCORE
a win-win agreement.
MOTIVATION TOWARDS ACHIEVEMENT AND SUCCESS
refers to the choice of focus for what motivates people: UNCERTAINTY AVOIDANCE
wanting to be the best (Decisive) or liking what you do shows how well people can cope with anxiety.
(Consensus-oriented).
The U.S. is a results- Americans are willing to
oriented society that admit changes and take
values quick outcomes risks when facing
and competitive uncertain events and
success, believing that problems. Therefore,
"the winner takes all." innovative ideas are
highly embraced.
=> Focus on results and
efficiency. Prepare clear => Show your readiness for
data and evidence of the change and creativity in
value of cooperation, such business solutions.
as performance metrics. American partners
Clearly outline your goals, appreciate innovative
as American companies will proposals. Rigidity may be
aim for favorable terms. seen as a lack of flexibility.
HIGH SCORE LOW SCORE
INDULGENCE
LONG TERM ORIENTATION
refers to the level of controlling the desires and
refers to the choice of focus for people’s efforts, the
impulses of people.
future of the present and past.
The U.S. balances short- They place a higher
term and long-term degree of importance
goals, prioritizing on leisure time, act as
immediate revenue and they please, and spend
profits. money as they wish.
They are willing to invest They possess a positive
in long-term research if attitude and tend
it’s strategic. towards optimism.
=> Propose a long-term => Respect their freedom
partnership with clear and flexibility, and be
mutual benefits in dynamic in negotiations.
negotiations.
HIGH SCORE HIGH SCORE
KEY Considerations for Successful Negotiations
between Vietnam and the U.S
Communicate clearly, directly, and focus on results.
Make time important, eparate work relationships from
friendships.
Create good relationships but don’t spend too much time
on it , respect the space and personal opinions of partners.
Focus on win-win agreements.
Negotiate with data from reality and be truly transparent
in business.
People
V. STRATEGIC DECISIONS AND
Focus on the issue at hand rather than
TACTICS IMPLEMENTED BASED personal conflicts, preventing emotions
ON PRINCIPLED NEGOTIATION. from getting in the way of effective
decision-making.
1.What is principled negotiation? Interests
Principled negotiation is a method of conflict Understand and address the underlying
resolution that focuses on finding mutually interests and needs of both parties,
rather than just their stated demands or
beneficial outcomes .This is a principle positions.
chosen by many countries, but to use it Options
successfully you must be a good negotiator. Brainstorm creative solutions that
benefit all parties, rather than limiting
the discussion to either/or choices.
4 BASIC POINTS OF PRINCIPLED NEGOTIATION:
Criteria
Base decisions on fair, independent
standards (e.g., market value, legal
precedent) to ensure the agreement is
legitimate and unbiased.
4 BASIC POINTS OF PRINCIPLED NEGOTIATION:
V. STRATEGIC DECISIONS AND
TACTICS IMPLEMENTED BASED
ON PRINCIPLED NEGOTIATION.
1.What is principled negotiation? +An Binh should put themselves in
People AMA Fruit situation.
+Respect their opinion and make
a. Perception suggestions in accordance with
their standards.
b. Emotion + To understand our partner, we must
understand our own emotions.
+Don’t react to angry words just be calm
to look at the situation.
c. Communication
+Actively listen to partners to
understand each other.
+Speak with a clear purpose
4 BASIC POINTS OF PRINCIPLED NEGOTIATION:
V. STRATEGIC DECISIONS AND
TACTICS IMPLEMENTED BASED
ON PRINCIPLED NEGOTIATION.
1.What is principled negotiation?
Interests
+An Binh should maintain the original interests
+Ask “Why” question to determine your partner’s
concerns.
Options
+An Binh has looked for many differents
options to come up with an optional solution in
case the initial plans is not accepted.
Criteria
+Establish fair procedures: parties can create
a fair process for resolving the dispute.
2.STRATEGIC DECISIONS
In our case, there are some remarkable points:
The United States is a country with a high Motivation towards achievement
and success. They will not give up easily, so if we insist on gaining benefits,
the negotiation will fail => This would eliminate the competition strategy.
In our case, there are some remarkable points:
The United States is a low-context country. Vietnamese business culture
often focuses on relationships. On the other hand, American business
culture is often more direct and focused on goals and efficiency => This
would eliminate the avoidance strategies.
In our case, there are some remarkable points:
Making concession make An Binh weak, especially in American culture that
focuses on goals and efficiency. This is also very difficult for long-term
cooperation =>This would eliminate the accommodation strategies.
In our case, there are some remarkable points:
The compromise strategy will limit the benefits and commitment to long-
term cooperation of An Binh Food and Ama Fruit => This would eliminate
the compromise strategies.
In our case, there are some remarkable points:
Collaboration allows both An Binh Food and AMA Fruit to achieve their
strategic goals without having to sacrifice too much. Both businesses can
work together to solve important issues, such as cost, quality, delivery
time, or standards requirements => Best option.
3.TACTICS IMPLEMENTED
Express friendliness
Direct question
Create pressure
TACTICs
Say “No”
Reveal the alternative plans
VI. THE KEY SKILLS
01 In negotiation, the pre-negotiation
stage is the most important which have
Preparation the decisive role in the outcome of
negotiation.
and planning
01
skills A good preparation and a clear plan can help the
negotiators identify
03
how this negotiation will
happen.
VI. THE KEY SKILLS
02
A negotiator needs to be fluent and have a good
Languages understanding of the negotiation language to avoid
skills unnecessary misunderstandings caused by language
01 barriers.
03
Reflects the professionalism and reliability of the company.
VI. THE KEY SKILLS
Culture is an extremely important issue
03 during negotiations. Cultural differences,
even if unintentional, can sometimes lead
Understanding to misunderstandings and conflicts.
the cultures of
01
different
countries skills
VI. THE KEY SKILLS
04
To negotiate successfully, a negotiator must be
quick, decisive, and able to provide correct and
Problem- timely solutions.
solving01skills
THANK YOU
FOR YOUR
PARTICIPATION
GROUP 4
