CAPSTONE PROJECT REPORT BUILDING REAL ESTATE BUSINESS STRATEGY FOR TASCO JOINT STOCK COMPANY BÁO CÁO DỰ ÁN CAPSTONE XÂY DỰNG CHIẾN LƯỢC KINH DOANH BẤT ĐỘNG SẢN CHO CÔNG TY CỔ PHẦN TASCO

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Griscd GaMBA01.M05 Capstone Project Report

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GLOCABAL ADVANCED MASTER OF BUSINESS ADMINISTRAITION PROGRAM

CAPSTONE PROJECT REPORT

BUILDING REAL ESTATE BUSINESS STRATEGY FOR

TASCO JOINT STOCK COMPANY

Group 2

The members of Group 2 :

1 Cuong Pham Duy

2 Ngan Truong Cong

3 Quyen Dinh Ngoc

4 Dao Nguyen Minh

HANOI, 2009

ics DẠY soa Master of Business Administration Group 2 Page 0

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TaASCO ey — XẠN

Add: XIN: #looyy Tower, No.91 Nguyen Chi Thanh street,

Ar ong Da district, Hanoi city

“Tel: 099740029 (286 - 287) ; Fax: 099740028

To: Grigg University (United States)

Cc: Master of Business Administration Program

Dear Sir or Madam,

On behalf of TASCO Joint stock Company, We please send to Grigg University, Master of Business Administration Program comments on the Project "Building Real 2state Business Strategy for TASCO Joint stocks Company " by authors from

Class GaMBA 01.M05 as follow:

Topics analyzed the effects from external and internal business environment of TASCO, besides that also analyzed the strengths, weaknesses of TASCO in real

estate business in Hanoi capital

Topics also gave us useful comments to help The Leaders of company have more objec:ive vision in applying business strategics

We vill study and complete to manipulate the actual business of the company in the process towards the goal selected

We adpreciate the quality of training as well as contributions from the Griggs Univasity in implementing International Master of Business Administration Progrim in Vietnam

Wish you health and success

Best Fegards,

On beaalf of CEO

/ ⁄

Hung Nguyen Ngoc (MI.)

Development Projects Manager

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1.4.5, Analyzing strengths weaknesses of the business (SWOT) | 16

Chapter 2: ANALYSIS REAL ESTATE BUSINESS |

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2.6 | Internal — External Enviroment Matrix of TASCO — IE Matrix 52

3.5 | Chosing Real estate business Strategies for TASCO Jsc 7 66

3.7 | Roadmap for implementation of strategies to 2020 i OE

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3 | Table 1-9 QSPM-Quantitative Strategic Planing matrix 17

— 4 ‘| Table 2-3 Statistics of the number of hotels and 33

accommodation Hanoi City

7 | Table 2-6 Total of the opportunities and Threats affecting the 40

business activities of TASCO:

8 | Table 2-7 Balance sheet of TASCO Joint stock Company 42

10 | Table 2-9 Expenditure analysis of Financial 44

II | Table 2-12 | Internal Factors environmental Matrix of TASCO — 51

IFE Matrix

12 | Table 2-13 | General strengths and weaknesses of TASCO 32

14 | Table 3-1 Housing demand Prediction in the city, 2010-2025 58

15 | Table 3-2 Demand for offices in Hanoi, 2010-2025 59

l6 | Table 3-3 Forecast demand for hotels in Hanoi, 2010-2025 60

I7 | Table 3-4 Prediction demand for the number of hotel rooms 61

18 | Table 3-5 Synthesis of SWOT Matrix elements 62

19 | Table 3-6 Scoring criteria of the Real estate business Strategy 66

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G

LIST OF FIGURES, GRAPHS

l Figure 1-1 | Model of strategic management comprehensive DAVID F 7

Z Figure 1-2 | Models of competitive work force by Michael Porter | 10 —-

3 Figure 1-4 | The process of building EFE Matrix 12 + Figure 1-6 | Map Process of building a matrix IFE 15

7 Figure 2-1 | Value of GDP of Hanoi through the years 21

8 Figure 2-2 | Economic structure of Hanoi in 2008 22

10 Figure 2-11 | Drawings overall perspective Xuan Phuong New Urban 50

dl Figure 3-7 | Models identified Values of the development in TASCO 67

12 Figure 3-8 | Roadmap for implementation of strategies from 2009 to} 73

Global Advanced Master of Business Administration `

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LIST OF FIGURES, GRAPHS

od Figure 1-1 | Model of strategic management comprehensive DAVID F

2 Figure 1-2 | Models of competitive work force by Michael Porter 10

3 | Figure 1-4 | The process of building EFE Matrix 12

7 | R igure 2-1 | Value of GDP of Hanoi through the years 21

=8 | EF igure 2-2 | Economic structure of Hanoi in 2008 có

10 Figure 2-11 | Drawings overall perspective Xuan Phuong New Urban 50

Td Figure 3-7 | Models identified Values of the development in TASCO 67

I2 | Figure 3-8 | Roadmap for implementation of strategies from 2009 to} 73

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1 The necessity of research Topics:

Vietnam joined the World Trade Organization (WTO), the trend of globalization as today, the business is facing great opportunities to build and develop to a new level and also for with the big potential threaten To survive and develope, businesses need to build for themselves the direction and strategies of business on the basis of relevant research, analysis, business environment and the external environment within their own to take advantage of opportunities, minimize risks from the business environment, as well as promoting the strengths and limited weaknesses of companies

Derived from practice that the building business strategy is very necessary for every business It helps business-oriented, clear business objectives, user parts and individuals to overall business objectives, prevent the local, distributed resources will weaken the business Today's business environment is rapidly changing, competitive global business always requires active and creative to adapt to the change

Real estate business is a very particular, require special conditions such as strong financial resources, ability to mobilize capital, relationships with agencies specialized management functions, orientation as well as long-term vision of business leaders Real estate business is cycle activities, so the risk is great, but comes with big risk is very attractive profit so business is increasingly attracting businesses to participate

Vietnam in general and The capital Hanoi in particular are on the rise rapidly, the demand of the product properties such as houses, office buildings, commercial centers, hotels very large, this is also the opportunity and challenge for the Real estate enterprises

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REG PMPSESR Oh SP hECSABany develop strategies

Analysis of factors affecting the business environment of real estate, business and

production operations of the company from which combined with the orientation and objectives of the TASCO jont stock Company to build real estate business

strategies

3 Object and scope of research:

TASCO Joint stock Company is a company that has business on real estate established and operated mainly in Hanoi Capital Therefore content to go further research, The authors would focus on analyzing the business environment by TASCO is primarily the business environment in Hanoi Capital to build real estate business strategic of the Company from now to year 2020

Due to limited time and duration of study, although the field of business activity around Tasco very diverse skilled construction and installation is only the authors of selected real estate business and limited geographical analysis is in the capital Hanoi This is a market-oriented of the father company when TASCO complete activities in the model company This market is dynamic, challenging but full of potential

4 Research Methodology:

Research methods: the information gathered from books, newspapers, magazines, the statistics of Ha noi Statistics Department, information and statistics from the consulting firm of real estate business Internal sources of information are the balance sheet, reporting the results of production and business operations, financial reporting in 2007, 2008 — The time to December, 2009

Also Authors also uses analytical methods integrated, comparative approach, methods experts to analyze the situation of production and business operations of

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PDE GOFIREGRS Eve es KGS ARE as follows:

Introduction

Chapter 1: Basic Theory of strategic

Chapter 2: Analyzing The real estate business environment of the TASCO joint stock Company

Chapter 3: Building and Selection Real estate business Strategy of TASCO joint

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BASIS THEORY OF STRATEGY

1.1 Concept of Strategy:

Strategy is a general program of action to achieve specific objectives Speaking to a strategic organization that people often think it must be held to determine the objectives to reach what, how and how to make sure that the resources for it

Afred Chandler definition: Strategy encompasses assign the basic long-term goals

of an organization, and selection process or how to act and allocate resources necessary to implement the goals

According FERD R, David in the "7reatise on management strategy”: The strategy

is the means of the long-term goals Business strategy may include the development

of geographical diversification of activities, chemical property, product development, market access, cut spending, liquidation and joint ventures

Strategy is also understood as a set of goals and policies as well as plans to achieve

the main goal, it shows that business going to make what business and enterprise or will be subject to any business

1.2.Role of strategy:

1.2.1.Planning: Business strategy to help companies find clear purpose and direction to his It's just the administrator must consider and that is determine the direction of organizing to do and always will achieve desired results

1.2.2.Forecasting: In a constantly fluctuating environment, the opportunities and risks always appear Process of strategic planning helps managers to analyze the environment and make predictions to identify strategies accordingly Whereby administrators are better able to grasp opportunities, take advantage of opportunities and reduce risks related to the environment

1.2.3.Controlling: Strategic helps administrators to use and allocation of resources

is optimal as well as to coordinate effectively function within the organization to achieve a common goal threads out

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1.3.1 By The level of strategic management

Based on level of management strategies that strategy is divided into three groups below:

1.3.1.1 Strategies for companies:

Strategy for the company and outlined clearly defined purpose and objectives of the company, identifying the business that the company pursue, create policies and plans to achieve the basic objectives of companies, distribution of resources among business activities Strategy applies to the entire enterprise

1.3.1.2.The level business strategy :

Strategic level business planning is to determine the selection of specific products

or as the market for private business activities within the company Level business strategy, one must determine how each business unit must be completed to

contribute to accomplishing the goal for the company

1.3.1.3 Functionality strategy:

Strategy for functional people focus on supporting the company strategy and focus

on areas of industrial cooperation, the business sector

1.3.2 Dividing strategies by functions

Pursuant to the strategic functions that can be divided into the following groups:

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This group have strategies such as market entry strategies, strategic market

development and strategic product development

- Market Entry Strategies: to increase market share for products or services

available in the market's current business

- Market Development Strategies: into the new regional products or services existing business

- Product development Strategies : take the current market products or services s:milar to existing products of these enterprises has improved modified

1.3.2.3.Strategies to expand operations :

The strategic expansion activities include strategies to diversify the activities center, diversify activities and horizontally diversified operations activities mixed

- Diversify the activities center: bring to market existing products or new services related to existing products

- Diversify the horizontal activities: put on the market for existing customer groups present products or new services, not related to the products are

- Diversifying operations mixture: put on the market in existing products or new services, not related to the products are

1.3.2.4.Other strategies:

In addition to the above strategy, the reality is there are some other strategies that businesses can apply as a joint venture strategy, refine operations, quit operation, lquidation, etc

- Strategy venture: when one or more businesses link together to pursue a certain gal

-Strategy to narrow it works: when enterprises need to restructure, ttu carried out a rumber of products or fields of activity to save Left position of the business

- Strategy for liquidation: is the sale of assets to the enterprise Business accept cefeat and try to rescue picked up what they can

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UNIVERSITY GaMBA01.M05 Capstone Project Report

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Strategic management process described by The model summarized below:

controls to long-term goals

J —+| objectives : of resources |1—» results current

Figure 1-1: Model of strategic management comprehensive DAVID F

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TON SPRY obfEaNE the enterprise

Mission is a statement with the nature of long-term goals It distinguishes this business with other enterprises The declaration also so-called speech of a business

to business philosophy, principles of business, the trust company All of which determine the region's business enterprises, in particular products, basic services, the fundamental group of customers, market demand, technical field or a combination of domains this area Mission contains a general wish to declare the area outside the company as a public image that businesses wish

The company's mission should be deployed and sketches into specific target Objective is defined as the achievements and results that administrators want to

achieve in the future for your organization

1.4.2 Analyze and evaluate external environment

External environmental analysis focused on identifying and assessing trends with events beyond the control of the company, such as growth of national economy, the competition abroad, explosion of information technology will see the opportunity and the risk that an important experience to the organization managers can draft strategy to take advantage of the opportunities and avoid or degrading images effects of such threats External environment including the macro environment and micro environment

b/Legal and political factors

Factors law and political influence to the growing activities of the enterprise

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services, markets and consumers

d/Natural elements

These businesses have long recognized the impact of natural circumstances in their business decisions Analysis of natural elements including the consideration to issues of environmental pollution, energy increasingly scarce natural resources, mineral exploitation and indiscriminate quality natural environment risk of degradation, etc In addition, administrators must be aware of cases of force majeure such as natural disasters, storms, floods and painting services to reserve the countermeasures in the process of production activities their business

e/Technology and technical factors

For businesses, technologies or other factors related to technology such as R & D, copyright and technology, automation trends, technology transfer, can be both an oppotinities, just the threat that they must be properly considered in drafting the

strategy Due to rapid technological change also means shorten the life cycle or life

cycle of products is required New technologies also bring the process of new technologies to help reduce costs significantly in product price Technical progress can create new competitive advantages, strong advantages over the existing

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khcGwIMsẽ 09oElf€sY0ral9 World economy today The rules and regulations agreed by the members of the general European Community, World Bank, World

Trade Organization (WTO) agreements free trade area and the world, the

conference , economic summit has contributed to the interdependence between countries around the world and the global market generally appears, set international standards on product quality and standards on environmental pollution, the antitrust laws, anti-dumping The strategist must take advantage of the advantages that the trend of globalization and international economic integration offers, and restrict the risks from the international environment, there is a fierce competition of foreign rivals, with products at competitive prices and better quality

1.4.2.2 Micro environment:

This is a working business environment of the company Michael Porter (the

Harvard School of Business Administration) has launched five models of work

force formed the context of competition in the business as follows:

Potential Competitors

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h/Potenfial Romapetitors’ Yorston

Potential competitors include companies involved in new sectors, the

b/ Present competitors

The second force in the competitive in the model of Michael Porter are competitors aready have solid gold position on the market in the same business The higher level of competition, price competition as reduce drag by reducing profits There are three important factors constitute the level of competition among companies operating in the same business, that is: Structure competition; Situation-market demand; The barrier out of the business sector Important part of controlling the external factors is to identify all the competitors and identify the advantages, weaknesses, capabilities, oppotinities, threats, objectives and strategies of them

c Customers

The third force in in the model of Michael Porter is the ability to bargain for cistomers Often, Customers request or require off-quality goods to better come with excellent services This makes the operating costs increase the risk of creating frice competition

c/ Suppliers

The fouth is the ability of suppliers to bargain Suppliers not only supply materials, ejuipment and labor but also the consulting firm, providing services advertising, suipping generally provide the inputs of the process of production and business

To avoid the pressure of bargain or supplier company should build relationships nutual benefit or Backup supply various

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EO GRASS OF these preHtiap instead Substitute products are the products of

competitors in the same industry or business sector can function together to meet

tlhe same demands of customers To minimize the importance of pressure this risk, companies need to consider very carefully the price trends and forecasting of product replacement in the future

Besides the five competitive forces in the model of Michael Porter over , in the process of analyzing micro-environment, enterprises also must be very interested in

a number of other factors such as distributors stock east, community, labor federations, to identify opportunities and risks to business operations of the company

1.4.2.3 External Factors Environment Matrix(EFE):

Table 1-3: Model building EFE Matrix The factors | The impor _ Classification

Factors listed | Scoring from 0 to | 1= Small side business

in the external | 1 point higher | 2 = Medium enterprises reaction

business respectively as|3 = Business reaction § on |

environment | factors important | average

4 = good business response

Marks (4)=(2)x(3)

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In all events and environmental trends can affect the strategic position of a company, affects competition is often considered the most important Competition Matrix dentify primarily with the competitive advantages and disadvantages of their special While the choice, choose the companies have similar characteristics to the elements (markets, human resources, finance .) to conduct a comparison to draw conclusions about the strengths and weaknesses of your business in a competitive

environment

1.4.3 Analysis and assessment Internal environment

analysis Internal Environmental of the company is identification and evaluation of

strengths and weaknesses in relation to strategies for the division in the company, including management, marketing, finance, accounting, manufacturing, human resources, research and development (R & D), and information systems Building strategies to improve the weaknesses of the company, turning it into strengths, and

if they can become special ability of the company

1.4.3.1 Human resources:

Human resouces is the most important resources of an organization Human resource management can understand, including an overview of the work of recruitment, placement, training and the personnel

The objective of the strategic management of human resources is to develop a personnel plan in accordance with the requirements of the company's strategy, both short and long term

1.4.3.2.Finance:

Financial conditions are often seen as methods of assessment and competitive positioning of the company's best and most attractive conditions for investors To form effective strategies to identify strengths and weaknesses of the financial organization.Financial factors often alter existing strategies and implementation plans The functions of finance including: The ability to mobilize capital; risk management financial ability profitable

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Management activities has five basic functions as the following:

a/ Planing: All activities related to the administration to prepare for the future The specific tasks as expected, set goals, set out strategies, develop policies, formation

of goals

b/ Orgnization: All the activities of management to create the structure of the relationship between rights and responsibilities The specific job is to design organizations and specialized work, detailing the work, agreed order, coordination arrangements, job design and analysis work

c/ Encouragement: Efforts to orient human activities, particularly leadership, joint working groups, change how it works, authorized, improving the quality of work, organizational change, spirit of vienva management

d/ Human resources: Activities focusing on human resource management or individual management of human resources including recruitment, payroll management, employee welfare and safety for employees, the opportunity to work with , relations with labor federation, discipline policies and procedures for protests, the mass media

e/ Control: Related to all management activities to ensure the results match reality, consistent with the results was planned, as kiemtra quality, financial control, sales, inventory , analysis of changes,

1.4.3.4 Internal Factors environment Matrix (IFE):

Table 1-5: Model building IFE Matrix

Factors listed | Scoring from 0 to 1 | 1=Most important Weaknesses | (4)=(2)x(3)

in the business | point higher | 2=Weaknesses

environment respectively as | 3=Strengths

within the | factors important 4 = Most important Strengths

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factors -—> importance from | to elements | categories

Figure 1-6 Map Process of building a matrix IFE

1.4.4 Matrix Internal - External (Matrix IE)

Matrix Synthesis of external factors, the internal factors is based on two main

aspects:

¢ Total number of important elements of the IFE matrix

¢ Total number of important points of the EFE matrix

IE Matrix set parts of a business in a box of 9 as shown:

THE POINT OF IFE MATRIX

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COA SRA EPIC TE HEE KEHMARes 3 parts:

Development and construction (the yellow box - the box I, II, IV): the appropriate

1.4.5 Analyzing the business environment (Strengths; Weaknesses;

Opportunities; Threats - SWOT):

Opportunities (O) Threats (T)

Strengths | Use strengths to Use strengths to restrict /

(S) | take advantage | evade threats

SO Strategies use strengths within the organization to take advantage of opportunities outside WO Strategies to improve weaknesses by taking advantage

of the opportunities outside ST Strategies use the strengths of the organization to avoid or to reduce the impact of the threats from outside

WT Strategies are defensive strategies to reduce the weaknesses and avoid threats from the outside environment Combination of important elements inside and outside the difficult task of developing a SWOT Matrix, it requires a well judged,

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Process of building strategy is a process that involves analysis of environmental

factors inside and outside the enterprise on the basis of mission and business objectives are set out of the business to prepare and select appropriate strategies To build strategies to evaluate enterprises implement these measures properly or not,

and the current activities of the business can be done more efficiently or not

Assessment often strategies will help the administration strategically avoid the complacency, subjective Objectives and strategies need to pay constant attention, development and combined so that complete the mission of the enterprise with the most effective

1.5 Selection strategy:

1.5.1 Selection criteria:

To choose strategies for businesses that have identified the criteria chosen strategy

to ensure the requirements Strategically selected to ensure suitable environmental conditions; Compliance with foreign policy viewpoints and methods of management of Directors of the company; Compliance with the financial capacity material and personnel of the enterprise

1.5.2.Method of selection strategies

Using strategic planning matrix can be quantified (QSPM—Quantitative Strategic Planing Matrix)

Table 1-9 : QSPM—Quantitative Strategic Planing Matrix

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ANALYSIS REAL ESTATE BUSINESS ENVIRONMENT OF TASCO

JOINT STOCK COMPANY

2.1 Introduction

2.1.1 TASCO Joint Stock Company

Company Name: TASCO JOINT STOCK COMPANY (TASCO Jsc.,)

Address office: 3rd Floor, B15 Dai Kim Urban , Hoang Mai District , Hanoi city ,

Vietnam; Capital: 135 billions VND (One hundred thirty five billions VND)

2.1.2 Business Activities

Civil construction, industrial, transportation, irrigation; technical infrastructure; Leveling; Business development of the housing business and real estate or rental offices, housing, — factories; Construction supervision of civil, industrial, transportation, irrigation;

Service testing of construction materials, testing quality control types of construction works; Tourism services, restaurants, eating; Collection services and waste treatment, production of the waste products; Construction of power projects (thermal power, hydro) electricity production; resellers electricity

2.1.3 History and development, Important timeline

Formerly the state-owned enterprises, was established in 1971 as first name Ha Nam Bridges have activities in the field of transportation infrastructure construction

November, 2000: Mark a major turning point in the evolution of the company The company has conducted equitization, transfer from state-owned enterprises operate according to the Joint stock company , Decision No 2616/2000/QD-UB on 20th November, 2000 of People's Committee Nam Dinh of Province and named Nam Dinh Construction Transportation and Infrastructure Joint stock company

In 2002, the company changed its name to Thanh Cong Transportation and Infrastructure Joint stock company by decision of the Chairman

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HP b SoS DURE OK PHAGE ME HeBbed and become affiliated companies of the Investment Corporation Housing and Urban Development (HUD), the Ministry of

Construction

On 15th, December, 2003 changed its name to Thanh Cong Joint Stock Company

by Decision No 559/2003/QD-HDQT of Chairman

In 2005, to promote the strength, as well as continue to assert the prestige and experience have grown since the project was completed, the company has officially become the system of "parent company - subsidiary company" with two branches in Nam Dinh, Ho Chi Minh City, 6 subsidiaries including Phuong Tay JSC, Thanh Cong JSC Number 1,2,3,5, Tasco Tourism Joint Stock Company and 20 teams of responsibility directly at the fiels

Period from 2006 to present: marked leap forward in all areas of the company's chartered capital from 16.8 billion VND _ increased 55 billion VND , operations in the model of parent company - subsidiary company, the strategy of sustainable development, stable production construction, continue to promote the strength and maintain leading position in South Red River, specialized in construction and installation, especially construction technologies bridge; Contact list with partners must have capacity to execute the requirements of great value, high technology, from a building contractor company rose to the investor with many large projects

On 26th, December, 2007: Company renamed Tasco Joint Stock Company by the

Ha Noi Business Registration Office of Hanoi City and move office to the address:

3rd floor, building Resco B15, Dai Kim New Urban Area, Dai Kim Ward, Hoang

Mai Distric , Ha Noi city On 11th April, 2008, 5.5 million shares of the company

was Officially traded on the Stock Exchange Hanoi HaSTC center with code HUT,

affirmed the position of Tasco in the process of economic integration in the world

On 24th, June, 2008 Contract BOT project "Improving and upgrading Nation Road number 10 - Clips from La Uyen Bridge to Tan De Bridge, Thai Binh Province c" with Department of Vietnamese Road, with total investment of 311 billion VND and get Tan De Bridge to gather fee to return capital of the project;

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BPH óa0"pt 5801ðgl' £©Ar@1SMII project "The line from Nam Dinh to avoid

National Road number 10 to My Loc " with the People's Committee of Nam Dinh province, with total investment of 313 billion VND and get My Loc Bridge to gather fee to return capital of the project:

On 12th, May, 2008 Contrac BT project "Building the route from Le Duc Tho Road to new urban Xuan Phuong - Tu Liem District - Hanoi City" with Tu Liem District, with a total investment of 1543 billion VND and the value from the land use right of the "Unit 2, 3 areas " of Xuan Phuong New Urban projects and other land to return to the project;

2.2 External environment analysis

Scope of operation of the real state business of TASCO is mainly in the city of Hanoi and for research and analysis is going into the issue, the authors would be focused analysis of the external environment of TASCO mainly in Hanoi city

Analyzing external environmental of TASCO will see the opportunities and threat

that the company may encounter from the business environment Since that appropriate strategies to limit threat and make the most of opportunities for the development of the company External environment including the macro environment and micro environment

2.2.1 Macro environment

2.2.1.1 Economic environment:

a/ Total domestic income (GDP) of Hanoi

Report of City People's Committee of the 7th Session of Council, that the total domestic product in the capital six months increased by 10.04% GDP increased by high-speed total social investment reached 10,115 billion (up 16.3% over the same period last year) In particular, specific value construction is made from the capital budget increased 90.8%, reaching record levels in many years

Accordingly, Hanoi is expected May 9, 2009, total domestic product (GDP) grew 5.7%, industrial production value increased by 7.7%, total retail sales increased

18.1% turnover exporters in the province decreased 11.2%, total social investment

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Total revenue budget in the area nine months in 2009 expected to reach 55,855

billion full-year forecast by 79.2%, including domestic revenue (excluding crude oil) is 48,983 billion full-year forecast by 85.8%

Total local budget in 2009 was nine months by 55.4% 15,298 billion in global project in which more often is 8057 billion by 66.7% year estimate, more construction is 6500 billion in 47.5% full-year forecast

Eigure 2-1: Value of GDP of Hanoi through the years

Source: Statistical yearbook of Hanoi in 2008 b/ Economic structure of Hanoi:

2009, Hanoi's GDP rose by 5.7%, mobilizing social capital to reach 84,700 billion,

up 19.1% over the same period 9 months of budget revenues to reach 55,850 billion VND, 79.2% The city has also made additional capital investment target stimulus phase 1 is 3800 billion and is considering the first two delivered about 3000 billion Some targets are reduced exports (down 11.2% over the same period last year), agro-forestry fishery products (down 3.1%)

One of the limitations were pointed out as the capital of economic growth but a comparison with provinces in the country, but still reveal the lack of sustainability factors, lack of breakthrough Attracting foreign investment, mobilizing capital in the country has not matched the potential advantages Economic structure of Hanoi after merger poses many problems need to be adjusted to suit reality Besides doquy

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Hoá 0 TMEESIOHdSERcMEKPWWBcd inadequate, infrastructure Capital not match the requirements of development and increasing population Status of illegal

Figure 2-2: Economic structure of Hanoi in 2008

Source: Statistical yearbook of Hanoi in 2008

c/ Average income per capita:

With the spectacular growth in the second half, the GDP of the capital increase to approximately 6.7% and income per capita in 2009 reached 32 million In the second quarter last year, the GDP of the capital in turn increase 8.3% and 9% Dramatic increase in the context of economic crisis contributed to the total domestic product of Hanoi estimated to grow 6.7% over 2008 and 6% higher than expected Respectively, the average income of people capital reached 32 million dong (VND

30 million plan)

In 2010, Hanoi expected GDP to reach 90-10% or higher, bringing per capita income exceeding 36 million Expected, GDP per capita of the city late in 2015 will

reach 72-75 million, ie more than double the 2010 level (35.56 million)

Ha Noi Department of Statistics has said that the average income a month working

in a sector of the city state management is 2.107 million, up 21.2% over the same period by the State to change the basic salary

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EUG OMBREES SRG EREA ¥S53!4His rate is lower than the previous year has just to

lower rate of economic growth Achieving this result, mainly due to State fiscal

policies monetary caution, flexibility, as in 2005

State enforcement has tightened monetary policy, fighting inflation by adjusting interest rates increase (about 9% per year) but not to affect too heavy to economic growth The government has tried conditioner macroeconomic and market prices through regulating the supply and demand of essential goods, price controls are found exclusively business or share control with the book "to accept higher inflation

to growth, growth rate reached the highest in 8:43% within 9 years However, consumer prices surpassed inflation target control of Congress at 6.5%

Although the situation of currency and credit in the first quarter of 2008 there are some evolutions are not favorable, but the market has tended to stabilize The credit institutions have basically overcome the imbalance status of capital available temporarily, have reserve funds for credit to buy votes and forced the State Bank The lending interest rate was controlled at reasonable interest rates on the interbank market popularity 8% -10% from a year; VND mobilization interest rates of credit institutions, common at 1% / month interest rates for short-term loan of about USD 11% -13% per year, interest rates for medium and long term lending VND at 14% - 16% per year; mobilization rate is adjusted up from USD 0.11 % -1.29% per year (current interest rates to mobilize the highest-level U.S 6.15% per year), at U.S lending rate fluctuations

changes, causing difficulties in raising

Income and living standards of people The diverse segments of the market

by increasing high-drag the demand for | making business difficult to determine housing, luxury apartments, shopping the target market and business-oriented needs in a modern commercial center, |

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BE SOARES SK ESE aot Eh ent:

a/ Law:

The trend of integration and to meet the requirements of joining the World Trade Organization (WTO), the National Assembly of Vietnam has approved a series of important laws to further improve business environment , attracting the Tuva in accordance with international commitments such as Investment Law, Bidding Law, Intellectual Property Law, the Law amending and supplementing some articles of Law on VAT and Special Consumption Tax Law, Law transfer tools, e-transactions law and the law have close relationships with the business environment such as anti-corruption Law, Law on Environmental Protection, Law on thrift and combat

waste

Real estate market is a market of special goods and property of great value and influence to direct economic life - society In recent years, the real estate market in our country, especially the housing market has developed significantly, contributing significantly to promoting economic - society of the country Continuous series of

laws related to business property is issued such as the Land Law, Construction Law,

Housing Law, the Law on business property, as well as many decrees and circular guide, written by the Government, the Ministry of Construction and issued to gradually concretized and guide businesses business property Most importantly, the business of real estate law by the National Assembly on September 26, 2006 and effective from January 1, 2007 This Law on business property; rights and

obligations of organizations and individuals trading in real estate; prohibited acts

and handle violations in the business of real estate Real Estate Business Law shall specify the business, building projects such as clearly defined rights and obligations

of the investment projects, new urban areas, the housing projects, lower project technical industrial zone; regulations on purchase, lease, lease purchase home construction projects

Besides the positive aspects, operation and management of real estate market in our country have revealed several shortcomings such as real estate markets also develop

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PDE Compressor Free NSH 'y" dealing "underground" still occupied large

proportion; the status of the land, a virtual stimulus to increase property prices as

the market for hot, cold "erratic Legal system in general and real estate business real estate but has particular but scattered, incomplete and not consistent, not meet actual needs Mechanisms and management policies on business property is unclear, not strong enough

b/ Political:

Today,Vietnam was selected as the safest investment in Asia, and is one of the country with political stability in the world Conditions favorable political environment of the law to provide opportunities for the company, which is to create the business environment open and fair competition, equality between businesses and investors bravely head from production and business in Vietnam

Vietnam is a country with the political Policies, legal and not uniorm

situation is stable, creating favorable — particularly in the — construction conditions to attract investment capital management as well as legal documents

into Vietnam | on land still many inadequacies, overlap

A number of policy transactions, make it difficult for enterprises when ownership of real estate improved to implementing project

2.2.1.3 Population and workers Environment:

After the expansion of administrative boundaries in August 2008, Hanoi now has an area of 3324.92 km ?, including a town, 10 districts and 18 suburban districts With

Ho Chi Minh, Hanoi is one of the two economic centers of both countries Hanoi is

a center of culture and education with theaters, museums, traditional villages, to the

media at national level and major universities

The population increased so fast the process of urbanization is not good planning has led Hanoi to become a cramped cities, pollution and traffic congestion inner regular Many architectural heritage of the city are gradually disappearing, replaced

by the house is messy pipes across the city Hanoi is a city of uneven development

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Ggío9) GaMBA01.M05 Capstone Project Report

EM nfah PAAGESBSA HEgE ahW8l9lfvard where people still have the essential living

conditions

Hanoi is one of the local receive direct investment from abroad the most, to 1681.2 million USD and 290 projects The city is also the location of the 1600 foreign representative offices, 14 industrial parks with 1.6 ten thousand industrial production facilities But coupled with economic development, the industrial parks are making Hanoi faced the problem of environmental pollution Besides the state-

owned companies, private enterprises also play an important role in the economy

Hanoi 2003, with nearly 300,000 employees, and private enterprises contributed 77% of industrial production of the city In addition, 15,500 households industrial production and attracted nearly 500,000 employees In total, the private enterprises contributed 22% of the total social investment, more than 20% of GDP, 22% of the city budget and 10% of export turnover of Hanoi

After expanding the administrative boundaries, with more than 6 million people, Hanoi has 3.2 million people in working age However, the city still lacks a working professional level high Many graduates still need training, structure and quality of labor demand has shifted the economic structure Hanoi must confront many other problems Competitiveness of many products and services as well as attractive investment environment of the city's low The shifting economic structure is still

slow, especially the structure of domestic industry, services and products power

key Quality development planning of economic sectors in Hanoi is not high and the city has yet to mobilize a good economic potential in the population

2.2.1.4 Cultural and social Environment:

Thang Long - Hanoi has recorded outstanding features are excellent lifestyle: elegant summarize the past thousands of years history of traditional beauty Elegance of Hanoi cover a nice lifestyle, a lifestyle beauty from outside the family

to society; from accommodation to the behavior of people - who, well up in the self- esteem and respect for people others to respect you

Elegance of Hanoi not only speaking, but more important is said to go in line with,

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ERE SOSA PEI HLTAE X€räÌ@Bv; aware of the high work well, do good deeds, done for relatives, for the community

With Ha Noi people, about three quarters of immigrants in the past 3.4 decades, from the village's many different provinces, Hanoi expansion, will have up to 88.3% of the area and over 62, 5% of the population live in rural areas Each family Hanoi always put a foot in the rural countryside Perhaps the characteristics of each

of us are still farmers together in an urban area Or as a review of the English artist Barnaby: "Compared to a village the city has many advantages in material, but also the weaknesses of it, the interaction between people, between individual and the community to reduce travel

Combined with clarifying the qualities depcon has some shortcomings in the character and lifestyle of Hanoi Hanoi is a topic that is too high academic level, scholars heavy on theory, making the school to apply in practice ignored; the Hanoi carefully, sure, into the cautiously, missing the guess, slower innovation, breakthroughs do not dare eat large; The confidential, preserve, to guest flute, lack

of sincere, frank, and lacks a certain extent, there is often manifested as individual provinces Too humble, artist of the area did not dare look straight into accepting the truth, if preferred achievement than if defects

Waves of people migrating from rural to urban living more and more, big cities like Hanoi is no other way to develop new residential areas, the urban-style house husband house , anti-tank floor to solve this problem Buildings condominiums appear more and dream of those immigrants, especially young families

_ Opportunities

Cultural environment, lifestyle changes

result in big demand for housing,

especially apartments increased Nhhu

goods for real estate diversification and

create opportunities for business

enterprises while actively studying out in

The diversity in the cultural environment will create a lifestyle complex to meet the diverse needs for specific fish different cultures Enterprises will face difficulties in the work of public relations image building and customer

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BDF CaMMncassatel FI6 VERSO:

With the trend of international economic integration and technology transfer

between countries in the world, Vietnam has to enlist the opportunity to acquire and apply new technologies to construct building projects, shorten construction time, increase quality, as well as off the building Series of new building technologies have been applied in Vietnam such as the method of top-down construction to help

reduce construction time; the methods of construction basement, fin walls, pile

foundations, concrete technology order beams; technology against rusted steel, technology building down the floor faster without reinforced phase, reducing construction time, increase the ability to bear load; technology used to build the 3D wall panels, flooring, ceiling, stairs to save time of construction, technology elevator up two floors to help mass transportation; Just as the application of information technology in the operating management of construction, design, operation, maintenance , warranty help reduce costs, reduce the number of employees,

Along with economic development, foreign capital investment in increasing the proportion of investment we should have changed the perception of quality works This agent is active in improving the management and construction expertise of our country, contributing to integration with other countries in the region

Application of new technologies in} Competitiveness among — enterprises construction, project management, | increases, the demand for equipment to shorten construction time, reduce costs | work up high pressure to improve

2.2.1.6 Situation of Economic integration in Ha Noi Capital:

Pricewaterhouse Coopers LLP (PwC) predicted, Hanoi (Hanoi) and Ho Chi Minh

City in the "top" with GDP growth on average highest in the world 2008 - 2025 This is the result of the PWC study with 151 cities and municipalities around the world, which, with Hanoi and Ho Chi Minh City in Vietnam

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PRES GREE ROMA CNS UP Rot in the Top 30 but also two of the names most notably, the Ho Chi Minh City will "jump" from position 95 to position 64 also rose

to Hanoi from 82 locations 116 things in 2008

In terms of economic growth as GDP growth forecast from 2008 to 2025, Hanoi and HCM City leader and 2nd in the list of 30 cities with an average GDP growth of 7%

in the period hey Expected, the city's largest emerging markets, which, with Hanoi and HCM City to develop faster (about 6-7% per year) compared to the cities of the country's economy development (about 2%)

a/Foreign direct investment (FDI)

Hanoi ranked second in the national (later Ho Chi Minh City) to attract quality FDI

in Vietnam, followed by Binh Duong, Dong Nai, Ba Ria - Vung Tau FDI mainly

focuses on the industry, real estate, construction and trade - service

Wave of foreign direct investment increased sharply in recent times drag on office

demand, as well as land for factories rise

b/ Capital Development (ODA)

Vietnam is one of the country received large ODA in recent years Total funding in the period 1993 - 2004 is about 4.2 billion dollars

First six months of 2006, the Ministry of Planning and Investment, ODA disbursed about 720 million USD, accounting for 41% of annual plan Of these, 618 million from concessional loans and 102 million which remains is non-refundable Funding sources mainly from three main sponsors of the World Bank (WB), Asian Development Bank (ADB) and Japan

c/ Tourisnm

December, 2009, international visitors and Hanoi about 76 thousand visitors, 9.6% lower than last month, down 21.4% over the same period last year Domestic visitors to Hanoi about 530 thousand visitors, up 3.1% over last month, up 0.4% over the same period last year

Expected nine months of 2009, the total number of tourists to Hanoi is 5803

thousand turns, down 2.2% over same period last year in which the client is 745

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HOKE MRK Bass own 19.8%), internal customers address is 5058

thousand passengers (up 1.1%)

Many opportunities for exposure to new

technologies as well as building level

advanced management Besides

dangerous business when making joint

venture with foreign partners -

[he process of international integration can lead to fierce competition from corporate real estate business In the

world is big into the Vietnam market

2.2.2 Micro environment

2.2.2.1 Real estate Market:

Real estate market can be divided into four major groups as follows: housing and apartments market, office leasing market; commercial center market; hotels market And one of the most important characteristics of real estate market is distinct cycles

a/ Housing and apartment market

According to the company's property management Savills Vietnam, as close to last year, the real estate market in Hanoi as "warm" thanks to the economic recovery, but also the chemical distribution between the domains area and the area also became clearer

In the past three quarter, the total supply of apartments for sale in the market from the primary project is more than 1,000 apartments, most of the supply of primary

focus in the districts, Tu Liem district, Dong Da and Hai Ba Trung district

However, the number of successful transactions over the primary market are lower than last quarter, estimated at just over 400 apartments were sold, accounting for nearly 38% of supply over 610 primary root is sold in quater 2/2009

Since you 4/2009 to 2012, estimated to be at least more than 10,000 apartments

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tW 601d0li€SPthE4£9)06ÄW@lhtely 34% of Tu Liem district, and about 30% of

Cau Giay district Specifically, the primary market in the first quarter 4/2009

expected to get more supply approximately 2000 new apartments

However, according to Savills, you do not see there is a significant change regarding primary bid of apartments in all grades compared to quater 3 /2009 Price and operation of the secondary market can be affected, in part due to the application

of the personal income tax for the transaction transferring the property since late September 2009

Different market segments apartments for sale, from your 4/2008 far, the average rent in the market segment serviced apartments down continuously In the quater3/2009, apartment rents decreased 4.8% services, corresponding to the second quarter compared with 1.2 USD/m2/month capacity on the market rent serviced apartments down 3% to 88 %

The cause of the reduction of tax rates is likely due to increased supply of 100 new apartments, equivalent to about 4% of the increased supply of market segments serviced apartments in the second part, 2009 Total supply in the market serviced apartments in the third quarter increased to over 219,000 m2 of additional about 100 new apartment project from Fraser Suites Hanoi at 51 Xuan Dieu Road, Tay Ho district was launched on the market

There are 41 buildings on seven district Hanoi offers nearly 2200 apartment market, with the kind of studio, one bedroom apartments to six bedroom apartments, and apartment roof pressure Area of the types of apartments range from 40m2 to over 560m2 SMC's demand mainly from the team of foreign experts working at the Embassy, nongovernmental organizations and international, and foreign companies

In Quarter 4 2009, Hanoi has around 10 serviced apartments remaining projects in Western Lake Fraser Suites Hanoi given market To about 2012, the expected additional 7 projects serviced apartments launched more than 1,200 apartments to the market Despite signs of economic recovery has been seen in many countries around the world, but can in coming time, demand for serviced apartments

f SĨ istra

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CAR nm HAsO fife FES? Rompanies are still having difficulty tissue from the negative balance of the economic crisis has left over

b/ Office leasing market:

According to research’ results on office leasing in the world

2008 (Office Space Across the World 2008) by Consulting Group Real Estate Cushman & Wakefield (United States) made, Vietnam is currently the 5th position

in Asia - Pacific and 17th worldwide in the table ranking of countries with rates most expensive office rental With the strong economic conditions and foreign investment does not stop growing, the demand for office rent overcoming the current supply

For the office market segment, investors continue to reduce rents in the third

quarter Rent decrease with policies to encourage other investors to help reduce the rate of space, rental rates also increased in both markets A and B class offices, especially offices for rent in remote B center is much more interested customers This is a good signal on demand, but supply is expected to increase rapidly with over 60,000 m2 area and offices for rent in the coming quarters will make the risk

of excess supply reappear

c/ Trading Center Market:

Year 2009 marked the appearance of some projects complex commercial, service apartments in big cities like Hanoi A complex area of commercial options are often divided into several areas with different lines of business such as restaurants, hotels, swimming pools, apartments for rent office, business services, advertising, revenue

currency exchange

The operating more commercial center marked tendency to move to invest in real estate sector to diversify the business activities of many foreign investors and domestic enterprises More investors realize the living of urban residents increasing the fund of their time on more narrow, so consumers prefer to shop in the downtown area - where a large goods plentiful, easy to choose the price not too distant consumers with the ability of the people Not only so, this model has

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PR inGoe BF FISPE HEA MATSHO Hany items buyers can choose a variety of goods

in one place According to surveys of CBRE, currently only about 25% of

households shopping at the trade center But demand is increasing rapidly increased, evidence that the number of trade centers to increase the number of people shopping

in the commercial center not reduced

Renting average trade center in Hanoi is 40 USD/month/m2 and are enclosed space for rent Not only foreign retail groups wishing to rent commercial center, even the domestic enterprises have also recognized the benefits and effectiveness of rent in the commercial center to sell display advertising promote their products

Table 2-3: Statistics of the number of hotels and accommodation Hanoi City

Customer service number 2121 2.840 3.301 3.350

Source: Statistical yearbook of Hanoi in 2008

With the amount of tourists to the international and domestic Hanoi increased continuously in recent years, especially of international travelers require travel, resort, do business, learn market demand in the form of secondary prevention and high-rise continuously

CG Global Advanced Master of Business Administration

Tiêu đề	Building real estate business strategy for Tasco Joint Stock Company
Tác giả	Cuong Pham Duy, Ngan Truong Cong, Quyen Dinh Ngoc, Dao Nguyen Minh
Chuyên ngành	Master of Business Administration
Thể loại	Capstone project report
Năm xuất bản	2009
Thành phố	Hanoi

Định dạng
Số trang	87
Dung lượng	15,12 MB