Report course e business strategy research on e business strategy “masan consumer corporation

“MASAN CONSUMER CORPORATION” Group name : ALPHA SQUAD Supervising Lecturer : MSC.. “Masan Consumer Corporation” SUPERVISING LECTURER'S COMMENTS TOPIC: Research on E-Business Strategy “M

“MASAN CONSUMER CORPORATION”

Group name : ALPHA SQUAD

Supervising Lecturer : MSC BUI TRAN HUAN

VIETNAM-KOREA UNIVERSITY OF INFORMATION AND COMMUNICATION TECHNOLOGY

FACULTY OF DIGITAL ECONOMICS AND E-COMMERCE

21EL018 21EL054 21EL065 21EL032

Da Nang, November 1, 2024

“Masan Consumer Corporation”

SUPERVISING LECTURER'S COMMENTS

TOPIC: Research on E-Business Strategy

“MASAN CONSUMER CORPORATION”

Group name : Alpha Squad

Members : Phan Thi My Hoa 21EL018

Mai Diem Quynh 21EL054 Dinh Quan Thuy 21EL065 Tran Thi Men 21EL032 Supervising Lecturer : MSC Bui Tran Huan

Major : Digital Logistics and Supply Chain Management Department : Faculty of Digital Economics & E-Commerce

ˆ Comments:

2 Conclusion

XO Agree to allow the student to present the report

XO Disagree to allow the student to present the report

Da Nang, dated month year 2024 Supervising Lecturer (Signature, full name)

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However, due to our limited knowledge, we will do our best, but there may

still be some minor shortcomings Alpha Squad sincerely hopes to receive feedback, suggestions, and constructive criticism from the lecturers to improve our report Finally, we wish the best of luck and success to the lecturer and Vietnam- Korea University of Information and Communication Technology

We sincerely thank you!

“Masan Consumer Corporation”

DECLARATION

We hereby declare that the content presented in this report is entirely the result of Alpha Squad's research, guided by the academic supervision of MSc Bui Tran Huan The research content in our paper is honest and accurate The

materials and data in tables, charts, and textbooks used for analysis, review, and

evaluation have been collected from various sources with clear citations and do not involve any direct copying of other materials If any instances of dishonesty are discovered, Alpha Squad takes full responsibility for the content of this project

“Masan Consumer Corporation”

TABLE OF CONTENTS

CHAPTER 1 OVERVIEW OF MASAN CONSUMER CORPORATION (MASAN

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1.1 History of Establishment and Development -.- - -<+-

1.2 Vision, Mission, Core VaÌues Í - GL QC HH Hn HH chen nen re

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1.4 The main business activities of the company .-. 2252

1.6 InÍrasfFUCẨUF LLL CÁ CÁ HS HS Et

1.7 Finacial sỉituation of the Company - Là HT HH HH se,

1.7.1 Asset Structure and Capital Structure «««c s5 s35 1.7.2 Report on business reSUÏS: n0 1n nhe vs, ANH ốc nh nen

1.7.3 1 LÍQUÏCÌÏẨW Gc GQ TT HH TH HH TH 11H01 01000000050 1.7.3.2 Debt ÏndÏCG1ŸOIS << LH HH HH kg ng kh 1.7.3.3 Profitability on Investment capÌfdl cccec c4 s35 x52

1.7.3.4 Profitability on reV€HUG c c HH1 HH HH tk k1 x5

CHAPTER 2 ANALYSIS OF MASAN CONSUMER CORPORATION'S CAPABILITIES

19

28 2.1 The Impact of the Business Environment on Masan Consumer Corporation G1 1 1H HH HT HH TT TT Tà TT TT 1H16 00 10 016 28

2.1.1 External Environmental FqCOIS - < su 28

2.1.1.1 PESTEL AnWSÏS cQ HH HH 11H HH HE 1 n0 00 56 E4 28

a Political and Legal Environim€hÏ: ác ccc LH HH HH HH HH g1 xá 28

b Economiic enVÌYO'INRI: HH HH HH HH HH ưu 29

207014 /-08sa/2a 00 0nnẺẼ88®eaeaean Ả Ả 31 INY2sa1y16)1ei-( 0-0162 7i s00 PP h 33

e Natural environim€rÍ HH HH HH ng te 34 2.1.1.2 Portertis Five Forces mOdelÏ - s9.“ kg, 35

G Barriers †O EHIẨFV Ăn HH TH n0 89 880 35 b._ Industry CompetÏẨỈOH: Ăn HH SH HH HH ng 1 ng n1 xe 37

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GB 0o on, can 39

d Bargaining power Oƒ SUppDÌÏ€FS cac HH HH HH HH 111 xxx 40

e Substitute prOdUCS Ăn HH HH HH ng 1 v1 1015565 41

2.1.2 Internal Environmental FCÊOFS << ng vn se 43

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A After-Sales S€VỈCG dc QC HH gu ng kg 9 00 6660036 50

V3 say ai n 51

Q ÍH[fGSỈYUCẲUIG Q0 K6 05 E665 51

an ¿co nh 53 GAM cố no nnne 55 2.2 Analysis of the E-commerce Capabilities of Masan Consumer Corporation 5ó 2.2.1 Analysis of Resources oƒ Masan Consumer Corporation 56

VY 8Ñ co Tnhh = 5ó VÝŠÄ I0 c2 1000886 e< 57 ,WNY2sy.6)1ei-/ss0nsesxs 000000 n6 57 b Trade S€CTÍS á HH HH HH Ho T030 59

is s0ncaxs PP hnốố ố n ó0 2.2.2 Deployment and Coordination oƒ ResOUFC€s -.cccc ó0 2.2.2 1 SỈTUCÍUFÔ HH HH TH k4 E tự ó0 Z2 ố ố.ốố.ố.ố e 62 V2 c5) 18 ó2 2.2.3 Results of Resource Deployment and Coordination ó4 2.3 SWOT AnalySÏS - ( ó Q1 HH HH HH HH ng tt HH ng KH 09135 67 CHAPTER 3: FRAMEWORK FOR ELECTRONIC BUSINESS STRATEGY 70 3.1 E-Business Strategy Inplemented by Masan Group Corporation 70 3.1.1 Competitive Advantage oƒ Masan Consum€r -s««« 70 3.1.1.1 Analysis oƒ Masan Consumer's Competitive Advantage 70

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3.1.1.2 Goals oƒ Masan Consumertis Competitive Advantage 72

3.1.2 Analysis oƒ Masan Consumer's E-Business Strategy 73 3.2 Description of Business Results Based on Masan Consumer’s Strategy 75 3.2.1 Business Performance of Masan Consumer Corporation 000068 75 3.3 Solutions and Recommendations - Ác HH nen Hy 79 3.3.1 SOLUTIONS 79 3.3.2 RecommendatÏons Ặ SG HH HH net 80

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LIST OF FIGURES

CHAPTER 1: OVERVIEW OF MASAN CONSUMER CORPORATION

Figure 1 1: Logo Masan COMSUMED cccccssssssccccssseseccceesessnscsacceseseceseseceseseseeesesen se 1 Figure 1 2: The organizational structure of Masan Consumer ‹‹«‹«‹«+ 7 Figure 1 3: Products in the convenient food category include: ‹‹‹‹‹- 10 Figure 1 4:: Seasoning producfs Caf€BOrV cà LH 111110 HS H ng He ky 11 Figure 1 5: Vinh Hao mineral Waf©r - - + cà 11111101 0 111100 11 kg ng ng 11 Figure 1 ó: Quang Hanh mineral Wa©r - c L1 1111 HH HH ng HH nàng 12 Figure 1 7: Coffee product category prodUCfS cà SH H* HH Hy 12 Figure 1 8: A chart showing the proportion of Masan Consumer's total asset

structure FFOM 2021 £0 2023 cece ecteeteeeteeeeeneeereseeeeseereseeeesaresseneessuaeereeseeeeed 17 Figure 1 9: A chart illustrating the capital structure proportion of Masan Consumer FFOM 2021 C0 2023 eieeccccseceseceteeceteeesseessecesseecsseeeseessseesecesseeceseesssaessaaenseecnsaeees 18 CHAPTER 2: ANALYSIS OF MASAN CONSUMER CORPORATION'S CAPABILITIES

Figure 2 1: The PESTEL MOdel ccsccccccsssssscccceecsesacceccsssssaacesceseseusesesesessaaaeees sees 28 Figure 2 2: Porter 5 FOreS ccsssscccscsssssscccesceesscacccesssescaeseseesssseeceesesecesccesesceesen ce 35 Figure 2 3: Distribution Channel Diagram for Masan Consumer - 48 CHAPTER 3: FRAMEWORK FOR ELECTRONIC BUSINESS STRATEGY

Figure 3 1: Outpacing Business Strate gy ecscsccccccsssscccccesssestececcsesesecceeesesesaaeea 74 Figure 3 2: Chart of Masan Consumer's Total Revenue from 2021-2028 76 Figure 3 3: Chart of Masan Consumer's Net Profit from 2021-2023 - 7/

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LIST OF TABLES

CHAPTER 1: OVERVIEW OF MASAN CONSUMER CORPORATION

Table 1 1: History of Formation and Development of Masan Consumet 664 2 Table 1 2: Balance Sheet of Masan Consumer Corporation from 2021 to 2023 (Unit: Million VND) cee eeeseeeeeeeeeeeeceeaeeeeeseeseeseesesenceeseaceeecaaeaecuesaeceseeeseeeeaeeeeceees 17

Table 1 3: Masan Consumer Business Report 2021-2023 (Unit: Million VND) 19

Table 1 4: Liquidity parameters of Masan Consumer from 2021 to 2023 (Unit: MilliON I0 21

Table 1 5: Debt indicators of Masan Consumerˆs from 2021-2023 - 23

Table 1 6: Return on Investment (ROI) of Masan Consumer from 2021-2023 24

Table 1 7: Profitability on revenue of Masan Consumer from 2021-2023 26

CHAPTER 2: ANALYSIS OF MASAN CONSUMER CORPORATION'S CAPABILITIES Table 2 1: Analysis of Masan Consumer's CompetÏOrS - - cà S22 c2 37 Table 2 2 : Analysis of Substitute Products for Masan Consumer - 42

IEl9i- VI i62 00026.900.757 67

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3 ART Accounts Receivable Turnover

4 ACP Average Collection Period

5 ICC Inventory Conversion Cycle

6 Ry Debt-to-Equity Ratio

7 Ry Long-term Debt to Total Assets Ratio

8 ROA Return on Assets

9 ROE Return on Equity

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INTRODUCTION

1 Reason for Choosing the Topic:

In the context of the strong digital transformation brought about by the 4.0 industrial revolution, e-commerce has become one of the fastest-growing sectors and plays a crucial role in Vietnam’s economy The COVID-19 pandemic not only

brought many challenges but also drove the boom in e-commerce, changing

consumer habits and expanding opportunities for businesses to access online markets With support from government development policies, such as the National E-commerce Development Master Plan for the 2021-2025 period, e-commerce in Vietnam is projected to reach a scale of $43 billion by 2025, making it one of the top three markets in the ASEAN region However, alongside these opportunities, the e-commerce market also faces significant challenges, from intense competition

to complex technology and logistics requirements To optimize business operations, develop the market, and enhance competitive advantage, researching and selecting

an appropriate e-business strategy is essential Therefore, choosing the topic

"Research on the E-Business Strategy of Masan Consumer Corporation" is of great importance in the process of studying and researching the course "E-Business Strategy"

Masan Consumer Corporation, as one of the leading enterprises in the consumer goods sector in Vietnam, not only offers practical insights but also

presents numerous opportunities and challenges in strategic analysis Researching the e-business strategy of Masan Consumer provides an opportunity to better understand how the company leverages digital technology to optimize business operations, develop the market, and enhance competitive advantage in the context

of digital transformation By applying strategic analysis tools and methods, the

Alpha Squad team can develop skills in evaluating the effectiveness of e-business

strategies, identifying risks as well as opportunities, and helping the company

strengthen its market position

In addition, researching Masan Consumer provides an opportunity to explore

and gain deeper insights into the consumer goods sector combined with e-

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commerce, an industry that is rapidly growing in Vietnam This helps to understand the factors influencing the company's e-business strategy, from online consumer behavior and the application of digital technology to supply chain management Consequently, the Alpha Squad team can make specific recommendations and solutions to optimize the strategy and enhance business effectiveness in an increasingly competitive market In conclusion, choosing this topic is not only an opportunity to apply academic knowledge to practice but also an occasion to explore a representative company and the challenges in the e-commerce sector in Vietnam

2 Research Objectives:

To systematize the arguments and analyze the e-business strategy of Masan Consumer Corporation, thereby consolidating and applying relevant knowledge

from the course on E-Business Strategy to understand, assess the current situation,

and propose solutions for online business operations From an objective standpoint, evaluate the strategies the company is implementing in the field of e- commerce Based on this, draw conclusions and propose solutions to help Masan Consumer enhance the effectiveness of its e-business activities in an increasingly competitive market

3 Research Subjects and Scope:

- Research Subjects: The e-business strategy of Masan Consumer Corporation.- Scope of Study:

+ Spatial Scope: The study focuses on Masan Consumer

+ Temporal Scope: The data used in the study includes information about the company from the past 3 years, specifically from 2021 to 2023

4 Research Methodology:

- Primary Data Collection: During the process of studying the company, data will be gathered through methods such as search and observation to collect additional information that provides a clearer understanding of the company's business strategy

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- Secondary Data Collection: In addition to observing business activities, data will be collected from available company documents (such as annual reports, financial statements, etc.) and other information sources on the company's website

5 Report structure:

The report structure includes 97 pages (including the cover), 10 tables, and

15 figures Apart from the introduction, list of abbreviations, conclusion, list of

references, and appendices, the report is organized into 03 main chapters as follows:

CHAPTER 1: OVERVIEW OF MASAN CONSUMER = CORPORATION CHAPTER 2: ANALYSIS OF MASAN CONSUMER CORPORATION'S CAPABILITIES CHAPTER 3: FRAMEWORK FOR ELECTRONIC BUSINESS STRATEGY

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CHAPTER 1 OVERVIEW OF MASAN CONSUMER CORPORATION (MASAN

CONSUMER)

1.1 History of Establishment and Development

consumer

Figure 1 1: Logo Masan Consumer

Masan Consumer Corporation, or Masan Consumer, is one of the two

subsidiaries of Masan Consumer Holdings, a member of Masan Group Corporation

Headquartered in Ho Chi Minh City, Vietnam, Masan Consumer (MSC) holds a

prominent position as one of the leading pioneers in the fast-moving consumer goods (FMCG) sector in Vietnam Basic information about the company:

Full name: MASAN CONSUMER CORPORATION

Abbreviation: MASAN CONSUMER CORP

Certificate of Incorporation No: 5700379618

Charter capital: 10.623.000.000.000 dong

Headquarters: No 23 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Phone number: (84-28) 62 555 660

Fax number: (84-28) 38 109 463

Stock code: MHC

Masan Consumer has established itself as a leading brand in the fast-moving

consumer goods (FMCG) sector in Vietnam, marked by significant and sustainable growth over various stages of its history Formed during a period of economic reform and deeper integration into the global market, Masan Consumer leveraged

opportunities to solidify its leadership position through groundbreaking branding

strategies, technological innovation, and strategic partnerships with major domestic and international partners The company’s growth journey reflects not only its own

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maturation but also its vital contribution to the development of the Vietnamese FMCG industry Below is a summary table of the formation and development history of Masan Consumer:

Table 1 1: History of Formation and Development of Masan Consumer

Year History of Formation and Development

1996 On April 1, 1996, Masan established a company in Russia to

import and trade food products in the Eastern European

market On June 20, 1996, Masan founded Viet Tien Industrial -

Technical - Trade Joint Stock Company, specializing in the production of processed foods and seasoning products

2000 On May 31, 2000, Minh Viet Industrial and Export-Import Joint

Stock Company was established, specializing in trade and import-export activities

2002 In 2002, to tap into the promising domestic market, the

company shifted its focus from export business to the local market by launching the "Chinsu" brand The success of Chinsu followed the achievements of the "Nam Ngư” and "Tam Thai Tw" brands in 2007

2003 On August 1, 2003, Vietnam Tien Industrial - Manufacturing -

Trading Joint Stock Company merged with Minh Viet Industrial and Export-Import Joint Stock Company The company was subsequently renamed Masan Industrial and Trading Joint Stock Company (the Company), with a total charter capital of VND 28,500,000,000

2009 On July 1, 2009, the company added new business activities,

including the production of seasonings (not produced at the

headquarters) and the production of flavors (excluding basic

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chemicals)

On December 22, 2009, the company moved its headquarters to

the 12th floor, Kumho Asiana Plaza Saigon, 39 Le Duan Street, Ben Nghe Ward, District 1, Ho Chi Minh City

On October 17, 2011, and November 4, 2011, the company

acquired 50.25% of the shares of Vinacafé Biên Hòa Corporation

2012 In December 2012, the company acquired an additional 2.95%

of shares of Vinacafé Bién Hoa Corporation, increasing its total ownership to 53.20%

2013 On February 1, 2013, the company successfully acquired 24.9%

of shares in Vinh Hao Mineral Water Joint Stock Company In March 2013, the company purchased an additional 38.61% of shares in Vinh Hao Mineral Water Joint Stock Company, raising its total ownership to 63.51%

2014 On December 30, 2014, Masan Food Corporation - a subsidiary

of the company - successfully acquired 32.8% of shares in Cholimex Food Joint Stock Company

2015 On January 14, 2015, Masan Food Corporation - a subsidiary of

the company - acquired 99.99% of shares in Saigon NutriFood

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“Masan Consumer Corporation”

On June 10, 2015, the company changed its name to "MASAN CONSUMER CORPORATION."

On December 25, 2015, Masan Beverage Co., Ltd - a subsidiary

of the company - completed the acquisition of 65% of shares in Quang Ninh Mineral Water Joint Stock Company

2016 On January 6, 2016, and April 29, 2016, Masan Beverage Co.,

Ltd - a subsidiary of the company - completed the acquisition

of an additional 24.61% of shares in Vinh Hao Mineral Water Joint Stock Company, increasing its total ownership to 88.56%

In February 2016, Masan Beverage Co., Ltd., a subsidiary of the

company, increased its ownership stake in Vinacafe Bien Hoa to 60.16%

In early December 2016, Masan Beverage Co., Ltd further

raised its ownership in Vinacafe Bien Hoa to 68.46%

2019 Masan exported its Chin-su chili sauce to Japan, meeting local

taste preferences and food safety standards This event took place during "Vietnam Food Day" in Osaka, underscoring the company's goal of bringing Vietnamese products to the

international market

2020 Masan Group intensified its expansion into the retail sector In

this year, Masan successfully acquired shares of VinCommerce

from Vingroup, integrating the VinMart and VinMart+

supermarket chains into its ecosystem and subsequently

rebranding them as VinMart and VinMart+

2021

the WinMart and WinMart+ systems, implementing the Point of

Life model to meet all consumer needs at a single location The

company has also partnered with SK Group from South Korea to

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develop digital financial services, expand into the digital

ecosystem, and enhance customer connectivity Additionally, Masan has reinforced its fresh food supply chain to improve quality and prepare for expanding its retail market share

2022 The company has completed the transformation of WinMart and

WinMart+ into modern supermarket chains, integrating with the

Tiki e-commerce platform to build a comprehensive consumer

ecosystem

2023 Masan Group successfully launched the WIN Membership

program nationwide, offering numerous benefits to consumers shopping within the company's ecosystem The program attracted

8 million members, contributing 55% to the total revenue of WinCommerce, strengthening its market position and boosting Masan's retail revenue

Masan Consumer Corporation has undergone a journey full of challenges and successes, marking its significant presence in Vietnam's consumer goods industry Today, Masan Consumer is one of the leading companies in Vietnam in the production and distribution of fast-moving consumer goods (FMCG) Masan Consumer has continually developed and established its brand through high-quality, innovative products that meet the growing demands of consumers With a strategy focused on investment in research and development, process improvements, and an expanded distribution network, the company has built a strong foundation of trust among Vietnamese consumers and has successfully expanded into international markets After more than 30 years of formation and growth, Masan has made a powerful mark with its product diversification strategy, robust internationalization, and innovative business activities These achievements have not only helped Masan Consumer maintain its leading position in the industry but have also contributed to the sustainable growth of Vietnam's consumer economy

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1.2 Vision, Mission, Core Values

With the vision: "To become Vietnamtis pride with the trust and love of

consumers." This vision reflects the company's grand ambition to not only become a strong domestic brand but also earn the trust and affection of consumers Committed

to delivering high-quality products and outstanding services, the company aims to strengthen its position in the Vietnamese market and create a positive impact on the community and society This vision is not just a business goal but also a driving force for innovation, quality enhancement, and sustainable development in all of the company's activities

The company's mission is "Every Vietnamese family, every Masan product Every family in the world, at least one Masan product." This goal reflects the company's commitment to providing high-quality products that meet the essential needs of families not only in Vietnam but also globally The company aims to build a strong brand and become the top choice for consumers in the markets it operates in This mission also emphasizes expansion and sustainable development, creating a positive impact on consumers' lives, from Vietnam to the world, through products that offer practical value and superior quality

Along with the core values, they serve as the foundation for the company's sustainable growth The four fundamental values that Masan pursues include: viewing people as assets and key competitive resources; pioneering with a winning ambition; collaborating for mutual development and harmonizing interests with partners; and a sense of national pride To embody these values, Masan places particular emphasis on four human qualities: talent and creativity, leadership qualities, a proactive approach to work, and integrity and transparency The Masan team operates based on six main principles: the interests of customers, the company, and employees are intertwined; teamwork; respecting individuals; fostering a culture

of continuous learning and innovation; goal and result-oriented focus; and trust and commitment These values not only create a positive working environment but also contribute to the sustainable growth of Masan Consumer in the market

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Masan Consumer uses its vision, mission, and core values as a guiding principle for all company activities With these core values, Masan Consumer is committed to delivering high-quality products and services that contribute to the sustainable development of the company and the community

1.3 Organizational Struture:

The company's management structure is organized and operates in accordance with state legal regulations, including the Enterprise Law, the Securities Law, the Company Charter, and other legal documents related to the company's business activities This ensures that the company consistently complies with legal regulations and operates effectively within the framework of the law The management structure

of the company is presented in an organizational chart, typically including the following management levels:

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Figure 1 2: The organizational structure of Masan Consumer

- Shareholders' General Meeting: Comprising all shareholders with voting rights,

it is the highest authority of the company The annual Shareholders’ General Meeting must be held once a year The meeting must be conducted within the territory of Vietnam The General Meeting must take place within 4 months after the end of the fiscal year, or it may be extended for no more than 6 months from the end of the fiscal year if approved by the business registration authority upon the Board of

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- Board of Directors: The number of Board members must be at least five (5)

and no more than eleven (11) The term of the Board of Directors is five (5) years The

term of each Board member is no more than five (5) years; however, members can

be re-elected without a limit on the number of terms The Board of Directors may include independent board members as required by law Board members may not be

of Vietnamese nationality and/or may not reside in Vietnam The Board of Directors supervises and directs the company's business operations and activities It has full authority to exercise all rights on behalf of the company, except for matters under the authority of the General Shareholders' Meeting The Board of Directors is responsible for supervising the CEO and other executives The rights and obligations

of the Board of Directors are defined by law, the company's charter, internal regulations, and decisions of the General Shareholders' Meeting

- Board of Supervisors: The Board of Supervisors must have between three (3)

and five (5) members At least one member must be an accountant or auditor

Members of the Board of Supervisors must not be part of the company's accounting

or finance department or employees of an independent audit firm currently auditing the company's financial statements Members must also not be related to any Board

of Directors members, the CEO, or other executives Members of the Board of

Supervisors are elected by the General Shareholders’ Meeting, with a term not exceeding five (5) years; they may be re-elected without a limit on the number of terms Members of the Board of Supervisors may not be of Vietnamese nationality

- Executive Board: The Board of Directors appoints one of its members or another individual as the CEO The CEO may also serve as the Chairman of the Board The CEO’s term is five years unless otherwise specified by the Board of Directors, and the CEO may be reappointed The appointment may be terminated based on the terms outlined in the employment contract The CEO must not be a person prohibited by law from holding this position

- Deputy CEO in Charge of Trade: Responsible for the company's commercial activities, marketing, and sales This Deputy CEO ensures that business strategies are

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effectively implemented, from developing marketing plans to creating distribution channels and maintaining customer relationships

- Deputy CEO in Charge of Organizational Capacity: Responsible for developing and improving organizational capabilities, including areas related to resource management, optimizing work processes, and enhancing overall organizational performance

- Deputy CEO for Supply Chain Development: Responsible for activities related

to the supply chain, ensuring that the supply of materials and resources is met adequately and on time This Deputy CEO also manages the development of supply chain optimization strategies to minimize costs and enhance operational efficiency

- Acting Deputy CEO for Operations Management: Oversees and supervises the daily operational activities of the company This Deputy CEO ensures that all departments function smoothly and achieve the set efficiency goals

- Deputy CEO for Human Resources: Responsible for managing human resource

activities, including recruitment, training, development, as well as matters related to

employee benefits, compensation, and other HR policies

- Deputy CEO for Information Technology: Oversees the company's information technology activities, including the implementation and maintenance of technological systems, data security, and the support of digital tools that enhance the company's operational efficiency

- Director of Premium Product Development - Acting Head of Research & Development: Responsible for researching and developing new products, particularly premium products, to meet market demands and maintain the company's competitiveness

- Chief Financial Officer (CFO): Manages all financial activities of the company,

from financial planning and budget management to monitoring financial status and making financial decisions to support the company's growth

- Chief Legal Officer - Compliance Director: Ensures the company complies with all legal regulations, including those related to tax, labor, and industry-specific

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regulations The Chief Legal Officer also addresses legal issues and risks faced by the

company

This structure is designed to ensure that all departments within the company operate efficiently, cohesively, and fully meet the strategic requirements of the

company

1.4 The main business activities of the company

Masan Consumer is a major economic enterprise, operating as a leading producer

of consumer goods in Vietnam The main product categories include:

Convenient food products: Instant noodles, instant porridge, sausages, with

flagship products such as Omachi noodles, Kokomi noodles, and Kokomi instant

porridge, among others

Figure 1 3: Products in the convenient food category include:

Seasoning product category: dipping sauces, soy sauce, chili sauce, seasonings, with key products such as Chinsu fish sauce, Nam Neu fish sauce, Chinsu soy sauce, Tam Thai Tu soy sauce, Chinsu chili sauce, ete

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l ụ & ff

ễ lỏi đấ š

Figure 1 4:: Seasoning products category Beverage product category: mineral water, bottled drinking water, salted lemon mineral water, with key products such as Vinh Hao mineral water, Quang Hanh mineral water, Quang Hanh — Faith salted lemon flavor, Quang Hanh — Blizka salted apricot flavor, Wake up 247 coffee-flavored energy drink, etc

“Masan Consumer Corporation”

Figure 1 6: Quang Hanh mineral water

Coffee product category: instant coffee, energy drinks, with key products such

as Vinacafe Bién Hoa 3-in-1 instant coffee, Wake up Sai Gon coffee, Chat coffee, De Nam coffee, etc

“Masan Consumer Corporation”

cooperating for development, and harmonizing interests with partners - National spirit." However, with a large-scale production system that requires many workers, management needs to be divided into multiple levels, making operations complex, and the employees’ skill levels are not uniform across departments This poses a challenge

for Masan, requiring the group to focus on training to optimize human resources

Masan's strength lies in its abundant, high-quality, and stable workforce, but its

weakness is the uneven distribution of employee skill levels Specific details on the

number of employees at Masan Consumer are often not publicly disclosed and can change over time, especially as the company continues to develop and expand According to recent reports, Masan Group (the parent company of Masan Consumer) employs tens of thousands of people nationwide Masan Consumer, with famous brands such as Vinacafé, Kokomi, and NutriFood, requires a diverse workforce with various specializations, from management and engineers to marketing and distribution experts The company focuses on recruiting and developing talent with the skills and qualities aligned with its sustainable development strategy and implements internal training programs to enhance employee capabilities

1.6 Infrastructure

Masan Consumer Corporation is one of the leading consumer goods companies in Vietnam, part of the Masan Group The success of Masan Consumer stems from its comprehensive and modern infrastructure, including manufacturing

plants, warehouses, logistics systems, and a nationwide distribution network With

significant investments in technology and management processes, Masan Consumer not only meets domestic consumer demand but also builds consumer trust in Vietnam

One of Masan Consumer’s strengths lies in its network of modern manufacturing plants across Vietnam, catering to production and distribution needs

in different regions The Masan plant in Binh Duong is one of the largest and most advanced facilities, featuring state-of-the-art automated production lines This plant produces millions of bottles of Chinsu fish sauce, Nam Ngu soy sauce, and other flagship products annually The Hau Giang plant, located in the heart of the Mekong

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Delta, plays a vital role in supplying products to the southern region and produces a

variety of items, such as beverages (tea, energy drinks) and food products (instant noodles, condiments), with goods distributed rapidly to Western and Southern

provinces of Vietnam The Quang Ninh plant, strategically located near northern provinces and neighboring markets like China, primarily serves the northern region of Vietnam, optimizing transportation costs and distribution speed All Masan Consumer plants are equipped with advanced technology and stringent quality control processes meeting international standards such as ISO and HACCP, ensuring the highest quality products for consumers

Masan Consumer heavily invests in technology to optimize production Automated filling and packaging lines enable the production of millions of units per day while maintaining quality An integrated ERP production management system is implemented throughout the process, allowing tracking and control of every production stage from input to final product, minimizing errors and boosting efficiency Additionally, the company leverages technology to monitor product quality and machine performance, enhancing productivity and reducing production waste Masan Consumer’s warehouse and logistics system is a key factor in efficiently delivering products to consumers The company’s central warehouses are strategically located in areas such as Binh Duong, Hau Giang, and Hanoi, enabling fast storage and distribution to other regions Masan Consumer partners with reputable logistics companies and utilizes modern vehicles equipped with GPS for route tracking, ensuring on-time delivery without damage Moreover, the company invests

in cold storage facilities to maintain special storage conditions for products like beverages and fresh food, preserving product quality from factory to consumers

Masan Consumer places significant emphasis on research and development to meet the latest consumer needs and trends The company’s R&D facilities play a critical role in developing new products such as natural beverages, convenient foods, and seasonings that cater to Vietnamese tastes Masan’s team of experts continually innovates and refines product formulations, reducing preservatives and enhancing

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“Masan Consumer Corporation”

nutritional content to provide high-quality, safe products for consumers Additionally, the R&D department also ensures the quality control of raw materials and final products, confirming that all Masan products meet food safety standards and retain their distinctive flavors

Masan Consumer employs various advanced IT systems like ERP and CRM to optimize operations and customer management The ERP system helps the company monitor and control the entire process from production to distribution and finance, ensuring high accuracy and operational efficiency The CRM system aids Masan in better customer interaction, analyzing consumer needs, and quickly responding to market demands

Masan Consumer has a multi-channel distribution network, including both traditional and modern retail channels Masan products are available in most major supermarkets, convenience stores, and local grocery shops across the country, from urban to rural areas This ensures that the company’s products are always accessible

to Vietnamese consumers, providing convenience and ease of shopping In addition

to traditional distribution channels, Masan has invested significantly in e-commerce platforms such as Tiki, Shopee, and Lazada This sales channel is especially important

as consumers increasingly prefer online shopping The e-commerce channel not only helps the company expand its market but also provides customer convenience with home delivery and online payment services

With a comprehensive and modern infrastructure, Masan Consumer has established its position as a leading brand in Vietnam’s consumer goods sector From manufacturing plants and advanced technology to warehouse and logistics systems and an extensive distribution network, all components are built to meet consumers’ growing needs and enhance customer experience This infrastructure is a solid foundation that supports Masan Consumer’s sustainable growth and its ambition to become the leading consumer brand in Vietnam

1.7 Finacial situation of the Company

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“Masan Consumer Corporation”

The balance sheet will provide a clear picture of changes in asset structure and capital structure Below 1s the balance sheet data for Masan Consumer:

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“Masan Consumer Corporation”

Table 1 2: Balance Sheet of Masan Consumer Corporation from 2021 to 2023 (Unit:

Other short-term assets 63.555 71.998 56.061

Long-term Assets 7.6029.035 7.424.194 16.630.994 Fixed assets 5.578.570 5.092.593 5.552.375 Investment property 9.51 7.359 5.75

Long-term financial investments 249.392 249.392 294.757

“Masan Consumer Corporation”

1.7.1 Asset Structure and Capital Structure

Figure 1 8: A chart showing the proportion of Masan Consumer's total asset

33,516,643 million VND, with current assets representing 77.85% (26,092,449 million

VND) and non-current assets comprising 22.15% (7,424,194 million VND) Compared

to 2021, Masan Consumer continued to increase the proportion of current assets, reflecting a strategy of maintaining high liquidity and focusing on short-term business activities However, the proportion of non-current assets slightly decreased In 2023,

Masan Consumer's total assets amounted to 40,552,689 million VND, with current assets making up 58.99% (22,921,695 million VND) and non-current assets representing 41.01% (16,630,994 million VND) There was a significant shift in the

asset structure, with a notable increase in the proportion of non-current assets,

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indicating a move towards a longer-term strategy focused on sustainable investment and scaling up

From 2021 to 2023, Masan Consumer's total assets grew steadily each year Initially, the company was highly focused on current assets, with a proportion

exceeding 75%, suitable for short-term business activities However, by 2023, there

was a significant change in the asset structure as the proportion of non-current assets increased to over 41%, showing a shift in strategy towards long-term investment, expansion, and sustainable growth

= Total liabilities m Total capital

Figure 1 9: A chart illustrating the capital structure proportion of Masan Consumer

from 2021 to 2023

In 2021, liabilities amounted to 13,198,456 million VND, accounting for 43.70% of total capital, while shareholders' equity was 17,005,694 million VND, making up 56.30% By 2022, liabilities decreased to 11,070,998 million VND, representing 33.03%, while shareholders! equity increased to 22,445,645 million VND, comprising 66.97% of total capital In 2023, liabilities slightly rose to 14,177,130 million VND, accounting for 34.96%, while shareholders! equity reached 26,375,559

million VND, making up 65.04% of total capital

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“Masan Consumer Corporation”

Regarding the capital structure, Masan Consumer shows a trend of gradually reducing dependence on debt, particularly in 2022, when liabilities significantly decreased and shareholders’ equity increased substantially However, in 2023, liabilities rose again, likely to meet long-term investment needs The capital structure remained at a safe level, reflecting a stable financial strategy that aligns with the company's sustainable development goals

1.7.2 Report on business results:

Analyzing the income statement helps to understand the company's performance and financial position First, we will compare the figures with net revenue from operating activities Below is the table of figures and the analysis of Masan's financial indicators:

Table 1 3: Masan Consumer Business Report 2021-2023 (Unit: Million VND)

financial 720.072 934533 1853512 256% 344% 6,53% activities

Financial

operating 259.011 385.172 538.029 0,92% 142% 1,89% expenses

Cost of sales 4.780.145 4527143 5.328.084 17,01% 16,66% 18,76% Business

management 1.072.907 900.917 | 925.674 2,79% 1,74% | 2,02% expenses

Net Profit 6.413.244 6.266.112 8.947.558 22,82% 23,06% 31,51% Other income 5.274 3.300 9.577 002% 001% 0,03% Other expenses 7.952 26.051 5.486 003% 0,10% 0,02% Tong Lợi nhuận

“Masan Consumer Corporation”

From the data above, we can observe:

Regarding the cost of goods sold (COGS), Masan Consumer has shown a

declining trend from VND 15,982,696 million (56.88% of revenue) in 2021 to VND 15,845,759 million (58.30% of revenue) in 2022, and further down to VND 15,266,624 million (53.76% of revenue) in 2023 This indicates that Masan has improved its cost control efficiency, reducing the proportion of COGS in revenue and

enhancing the gross profit margin

Masan's gross profit decreased from VND 11,720,940 million (41.71% of revenue) in 2021 to VND 11,131,515 million (40.96% of revenue) in 2022, showing pressure from higher costs or unchanged selling prices By 2023, gross profit increased significantly to VND 12,974,369 million, representing 45.69% of revenue, marking an improvement in business efficiency, possibly due to cost optimization, increased product value, or better revenue structure

Masan Consumer's net profit in 2021 was VND 6,413,244 million, accounting for 22.82% of revenue, indicating stable profitability In 2022, net profit slightly decreased to VND 6,266,112 million, equivalent to 23.06% of revenue Although the percentage of revenue increased slightly, this could be due to a decline m revenue or

an increase in costs while maintaining relatively stable profitability However, in 2023, net profit rose significantly to VND 8,947,558 million, representing 31.51% of revenue, reflecting a remarkable improvement in operational efficiency, cost optimization, or strong growth from core revenue

The total pre-tax profit in 2021 was VND 6,410,566 million, accounting for 22.81% of revenue, showing stable business performance In 2022, this figure dropped

to VND 6,243,361 million, representing 22.96% of revenue Despite the decrease in value, the percentage of revenue increased slightly, possibly due to cost or revenue factors By 2023, pre-tax profit rose significantly to VND 8,098,847 million,

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“Masan Consumer Corporation”

accounting for 28.52% of revenue, reflecting significant improvements in business efficiency and cost optimization capabilities

Masan Consumer's net profit in 2021 was VND 5,526,177 million, accounting for 19.67% of revenue, reflecting stable business performance In 2022, net profit slightly increased to VND 5,532,807 million, representing 20.36% of revenue, showing that the company was able to maintain profit growth despite potential market fluctuations By 2023, net profit rose significantly to VND 7,194,170 million,

accounting for 25.34% of revenue, indicating a substantial improvement in profitability

Masan Consumer's business report over the past three years shows that the company has made significant strides in enhancing cost management efficiency, optimizing its financial structure, and improving profitability Despite facing some challenges in 2022, by 2023, Masan Consumer demonstrated strong recovery and growth, reflecting its sustainability and positive outlook for the future

“Masan Consumer Corporation”

The quick ratio of Masan Consumer fluctuated from 1.7100 in 2021 to 2.4441

in 2022, but dropped to 1.5838 in 2023 While still at a safe level, this decrease should be noted to evaluate the financial factors affecting the company in the future The inventory turnover of Masan Consumer decreased from 56.1914 times in

2021 to 42.9757 times in 2022 and 32.7762 times in 2023, indicating a decline in inventory management efficiency This may suggest difficulties in sales, higher inventory than demand, and could negatively impact cash flow and profitability due

to increased storage costs

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“Masan Consumer Corporation”

The average collection period of Masan Consumer increased from 6 days in

2021 to 8 days in 2022 and 11 days in 2023, indicating a longer time to collect receivables This may affect cash flow and the company’s short-term liquidity

The inventory turnover ratio of Masan Consumer increased from 7.74 times in

2021 to 8.44 times in 2022, then slightly decreased to 8.30 times in 2023 This small decrease could indicate slower sales or inventory exceeding demand

The inventory conversion cycle of Masan Consumer decreased from 46.49 days in 2021 to 42.67 days in 2022, then slightly increased to 43.39 days in 2023, showing some fluctuation but an improvement in inventory management efficiency Masan Consumer’s liquidity remains safe but fluctuating The current ratio and quick ratio increased in 2022, then decreased in 2023, while the inventory conversion cycle decreased then slightly increased The company needs to monitor these metrics

to ensure financial stability

1.7.3.2 Debt indicators

In the financial statements, debt indicators help assess the financial health and payment ability of a company For Masan, analyzing debt ratios is essential to understand its financial situation and risk management, especially in the context of competition and the impact of the pandemic Below is an analysis of Masan Consumer's debt indicators:

Table 1 5: Debt indicators of Masan Consumer’s from 2021-2023

1 Total Debt million VND _ 11.070.998 - 14.177.130

2 Total Equity milionVND ane 22.445.645 26.375.559

3 Total Assets milionVND _" 33.516.643 40.552.689

4 term Det million VND 1.315.360 1.009.770 448.383

5 Net Profit million VND 6.413.244 6.266.112 8.094.756

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