MAKING BUSINESS DEVELOPMENT STRATEGY TO THE YEAR 2015 FOR THE HOUSING AND URBAN DEVELOPMENT CORPORATION (HUD) XÂY DỰNG CHIẾN LƯỢC PHÁT TRIỂN KINH DOANH ĐẾN NĂM 2015 CHO TỔNG CÔNG TY NHÀ Ở VÀ PHÁT TRIỂN ĐÔ THỊ (HUD)

MAKING BUSINESS DEVELOPMENT STRATEGY TO THE YEAR 2015 FOR THE HOUSING AND URBAN DEVELOPMENT CORPORATION (HUD) XÂY DỰNG CHIẾN LƯỢC PHÁT TRIỂN KINH DOANH ĐẾN NĂM 2015 CHO TỔNG CÔNG TY NHÀ Ở VÀ PHÁT TRIỂN ĐÔ THỊ (HUD)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT

MAKING BUSINESS DEVELOPMENT STRATEGY

TO THE YEAR 2015 FOR THE HOUSING AND URBAN DEVELOPMENT

CORPORATION (HUD)

Group No 11

Nguyen Thi Phuong Lan

Le Sy Cuong Bui Thi Trung Ha

Do Thuc Yen Tran Thi Ly

HANOI, 2009

MINISTRY OF CONSTRUCTION SOCIALIST REPUBLIC OF VIETNAM HOUSING AND URBAN DEVELOPMENT Independence — Freedom - Happiness

This project is not only quite real to us but also may be applied for practice in HUD Corporation in the current business environment We would like to thank above group for the discussions and useful ideas for HUD Corporation’s activities

On this occasion, we highly appreciate the training quality of Griggs University and Education Training Center

HOUSING AND URBAN DEVELOPMENT

CORPORATION

DEPUTY GENERAL DIRECTOR

_ PEC 5 TONG 9G [AM BOC

Griccd UNIVERSITY GaMBA01.M05 Capstone Project Report

GRATITUDE

We would like to express our thankfulness to the lecturers, facilitators and experts

of the GAMBA between Griggs University and Education Training Center (ETC) for your enthusiastic provision of very important information and knowledge which help to equip

us with new style and skills of management The changes in thinking and management style of ourselves and our colleagues, especially the effectiveness of the management work at our office during the recent time, are wonderfully crystallized from this important course

Due to limited time, there are still some mistakes in the Project, even we commit

that this capstone project is result of our real study and practice in HUD Corporation We would therefore like to welcome all recommendations and comments to perfect our Capstone Project on “Building business strategy to the year 2015 for the Housing and Urban Development (HUD)”

Thank you very much!

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TABLE OF CONTENTS

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2.3 Analysis of external EnvironMent cccceccccseeetecesseeeseeeesseceseceseeeesecsseeteeeeeessens 33 Bala AOOIEIS OF BIC CUVIFONIENE + sas.a:cmaanacasee.ciea.ces 004 0s tne Sb 8 EN eho RIB lB 33

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3.3.1 EFE Matrix of HUUÏD - - - G11 19183918211 911 11 9v nh ng nh ng nh tư 48 3.3.2 IFE Matrix of HD .-.- - cv E S1 HT TT HT nàng nh nh trệt 49 3.5.3; Ie Matt OF HU Diss: seca icscmms rs amass gợi bà H84 phEN 606) 15 41006 4 kA084 § E064 5 HÙNG E} ĐH $4 9 NHHH 50 3.3.4 NWUOIT Klatrix dif HHHHTk::s ti cíng cà wean 0s aso ame 2 cans 18 ie 4 6/00) 5 5 BHNG š 930GB & 9 RK RB SĨ 3.4 StratepIes for HU c9 n SH ng HH nh nh in 53 3.5 Selecting Strategy for HUI_ - Ăn ng ng ng 515 3.6 Strategic SOLUtIONS:? 75a 55 3.6.1 Hai f660If66S SOIITIONS ics H2 cto ono or AREER aS 3.6.2 Fimancial Solutions .cccccccecseessceseeeeeeeeeseceeeeeececeseeeseeeesaeeeseeseseceaeesseeeseeeseseesens 55 E6 c0 9 15 56 3.04 TirwesiiniGrff (SG]HHÏØHSE: su snuannhnniatiitiiaisoEitG010000100000010198080019603003217B1DĐHVRGEEIĐETNBSG'0G80090 57 3.6.5 Oeaniization sölÏOff : «s26 4s s4 4Á 136 su 305 S6Ầ SE S8305.G03550k 8000118 20% 006301038 58 3.7 The road map for implement strategy of HUD - «+55 + 5< +<<+sc+s 589 GONCLUSION or ssa axons exans sansa some cower phông sang E00 KHE news nei ene na reece wma 61

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Abréviations

WTO World Trade Organization

HUD / HUD Corp Housing and Urban Development Corporation

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LIST OF TABLES

Table 1.1: Strategy Management Model of F.David

Table 1.2: Model of 5 competitive forces of M Porter

Table1.3: Competitors analysis

Table 1.4: Model of IE Matrix

Table 1.5: SWOT Matrix

Table 2.1: Strengths and weaknesses of human resources

Table 2.2: Capital Development Data

Table 2.3: Capital mobilization in 2008

Table 2.4: Business results in recent years

Table 2.5: Financial figures of the last two years

Table 2.6: Strengths and weaknesses of financial sources

Table 2.7: Strengths and weaknesses of technical and material facilities

Table 2.8: Vietnamese GDP rate in recent years

Table 2.9: Opportunities and threats for HUD

Table 2.10: Factors affecting demand for real estate

Table 2.11: Opportunities and threats of industry analysis for HUD

Table 2.12: Competition criteria of HUD’s competitors

Table 3.1: External Factors Evaluation Matrix of HUD

Table 3.2: Internal Factors Evaluation Matrix of HUD

Table 3.3: I.E Matrix of HUD

Table 3.4: SWOT Matrix

Table 3.5: Scoring criteria of strategy

Table 3.6: Roadmap for making business strategy

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INTRODUCTION

> Circumstance, necessity and significance of the Project

The economy of Vietnam is a market economy with the State management and the tendency to integrate into the global economy To exist and develop, every enterprise needs to have a strategy which is compliant to the integration trend and the common market development An enterprise without a good business strategy is like a boat without sailing and a strategy which is incompliant or carried out badly cannot help that get success in the competition market In other words, the destiny of an enterprise depends much on the making and management of its business development strategy

The Housing and Urban Development Corporation (HUD) has been developing for 20 years Its existence and development associate with so many changes of our country, Vietnam At the moment, HUD Corporation is one of the leading corporations of Vietnam

in housing and urban development To determine the correct business path for in the future, HUD Corporation is having its urgent concern of building a long-time, suitable and flexible business strategy to face the fluctuations of the business environment, to meet the increasing demand for urbanization and housing, making contributions to the national course of industrialization and modernization With this current situation and contribute the ideas to get HUD Corp have the vision and direction in the very competitive economic environment of , our group have chosen the Project “Building business strategy for the Housing and Urban Development Corporation (HUD) to the year 2015”

Griccd) GaMBA01.M05 Capstone Project Report UN!'VERSITY

Firstly, to build the business strategy for The Housing and Urban Development Corporation (HUD) based on the analysis of internal and external environment to realize the current strength, weakness as well as the threats and opportunities, which have influence on the Corporation

Secondly, to propose measures to implement the suggested business strategy for HUD

> Study method

In the study process, the capstone project uses the method of analysis and summary all the real information from the Housing and Urban Development Corporation, the specialty books on Strategy Management, Marketing, and Finance, the magazines, newspapers and internet information

The Group has also conducted an investigation and collected the ideas and opinions of some individuals, organizations about the Housing and Urban Development Corporation and other current competitors in the market All the collected investigation papers, we use the method of statistic and summarization to form it in the project

Besides that, our group also uses the comparison method, industry analysis and enterprises’ activities to gather and combine them with theory, reality to build the vision and strategy in the housing and urban construction industry

> Study object

The Project learns about theoretical and actual issues in the process of building the strategy of the Housing and Urban Development Corporation

> Study Scope:

Studying fundamental basis of the making of the business development strategy in

a Corporation trading civil

Studying the actual business development strategy of the Housing and Urban Development Corporation (HUD)

Recommendations to complete the business strategy for the Housing and Urban Development Corporation (HUD)

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> Structure of the Project Report:

The report includes three chapters:

Chapterl: Key basis for the business strategy

Chapter IJ: Introduction and analysis of the Housing and Urban Development Corporation (HUD)

Chapter III: Building the business strategy to the year 2015 for the Housing and Urban Development Corporation (HUD)

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CHAPTER I KEY BASIC FOR A BUSINESS STRATEGY

1.1 Fundamental concepts of a business strategy

The term of “Strategy” was used firstly in the military from the years of Sixty of Twenty century This term was applied in the business field and from that “Business Strategy” was initiated However, the business strategy is being understood by the management peoples with the different ways This is due to the approaching ways to business strategy of them are different

Chandler defined strategy as “identification of the basic long term goals and objectives, application of a set of actions and the allocation of necessary resources” (Chandler, A (1962) Strategy and Structure Cambrige Massacchusettes MIT Press) According to Fred R.David (2003), strategy is the means to achive the long-term targets

Pursuant to Rudolf Grunig and Richard Kuhn (2003), strategy is long-period management direction to aim the accomplishment the goals, main purposes of an enterprise in long-term

However, with many different ways and methods of understanding and approching, business strategy is implying the followings meanings:

- Determining the maind and longterm target of an enterprise

- Drawing the general programs of actions

- Choosing the action plan, deploying to allocate the resources to implement that target

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- Company-level strategy: It is a model decided in a company This strategy to determine and draw clearly the targets, aims of a company, what is company pursuing and from that to create the policies and plans to achieve the target

- Business-level strategy: It is strategy to aim to define the products or market for particular business activities for company Each units of business department will try

to fulfill their target to contribute the accomplishment of company’s goal

- Function-level strategy: This strategy is concentrating on the supporting of strategy organizations, co-ordination fields and business area

1.3 Role of business strategy

Business strategy plays an important role in the company’s process of existence and development The details are followings:

Firstly, strategy is a tool to summarize all the long term targets of company The target

of company is the specific goad which company wants to achieve in the process of business activities The concretization, documentation all the company’s targets through the strategies help the members of company to know where they are going to, what do they need, what do they need to do This to help the company to complete the target very clearly

Secondly, strategy attaches with the short- term development target in the long- term circumstance In the modern business environment, almost companies should move actively and flexibly to the business environment However, the movement may be deviatory and destroy the long — term development That’s why strategy is very important and it creates the long — term orientation

Strategy also contributes to the ensure the unity and orientation of the company’s activities In the history of existence and development, with strong allocation labor trend both

in width and depth, all the works is being done in many different departments That specialization help to increase the effectiveness of the work, however, that department just care to improve business activities of itself only but not take care to other’s one and whole company’s Therefore, some activities may be an obstacle to each others and cause badly to

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company’s target Strategy will provide comprehensively and systematically in the problem solving in the reality to create the general strength of whole departments, whole members in the company From this it goes in one direction as company’s goal

Lastly, strategy helps the company to catch the market’s opportunities and compete with other companies Its units the process of activities to gain the purpose and duty Therefore, it help to improve effectively all the internal resources of company

1.4 Basis for building business strategy of an enterprise

The strategy management is usually studied and used through many models The model of F.David seems to be widely applied and it shows as below:

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point out the ¬um normal target opportunities arge

point out the strategy to 4 in (

strengths and pursue epartments

Table 1.1 Strategy Management Model of F.David

(Source: Overview about strategy management - National Economy University)

1.4.1 Analysis of external environment

External environment is the system of complex elements, with many chances and threats which affect to activities of the company in different levels Even though the scale

of potential resources is very high, company may not reflex to all happenings in the market Therefore when analyzing the external elements, the management people want to develop a list of opportunities in the environment which can bring the benefit to the company and all the threats, which company need to have solution to prevent or avoid

External environment includes the general environment and industry environment

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1.4.1.1 General environment

PEST model studies the elements which affect to company includes political and

law environment, economic environment, socio-cultural and technological environment

Firstly, political environment and law have more and more influence to the activities of a company The influence of politics and laws means the government gives out the legally regulations for enterprises to follow or prohibit The Government is playing the high role in the macro economy through the economic, financial, monetary policies In the relation with company, the Government is the key person to control, encourage, support, regulate, prohibit and constrain

Beside the political issues, the economic elements influence directly and actively

to the enterprise Economic factors includes the trend of GPD, growth rate, interest rate

and trend of interest rate, international payment, trend of exchange rate, inflation, tax rate

and tax system, the fluctuation in the stock market, economic cycle and economic period

Social - cultural factors is the third in the PEST model It includes the main

elements such as ethical conception, the thought of life standard, custom, habits, the

priority, care, awareness, intellectual of society All of these factors have influence on activities and companies Therefore, company needs to pay attention to them when building the business strategy

Technology environment is the fourth in the PEST model It has always been changing because it brings many chances to enterprise as well as the threats Changes in technology affect many sides of the society mainly through the products of technological process These include activities relating to the creation of new knowledge, moving the knowledge into the output, the products, the processes and new materials The change in technology environment brings about the enterprise both opportunities and threats The opportunities are improving the ability to create the new products with high competitive capacity; the threats are they Pp y can make the life circle of a p product regress directly g y or

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Globalization is the trend to integrate and globalize in and out Vietnam makes enterprises think of international factors when they determine long-term strategy with high integration and ability to develop geographically and politically Global segments include relating global markets, changing markets, important international political issues, basic institutional and cultural property in international markets

1.4.1.2 Industry environment

The Five Pressures Model of Michael E.Porter (1985) is applying to analyze the industry environment of enterprise According to M Porter, there are five competitive forces in the profession: (1) risk of the coming of new companies (potential competitors); (2) competitiveness among existing companies; (3) the strength of customer bargain (Customer pressure); (4) Strength of seller negotiation (Supplier pressure); (5) Threats of replaceable products

M Porter shows that the stronger those forces are, the more they limit the companies in increasing the price and gaining higher profit The task given is to realize opportunities and threats which are given by the changes of five forces From that, they

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Table 1.2: Model of 5 competitive forces of M Porter

(Source: Michael E.Porter 1985)

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First of all, competitors are the highest pressure with any existed company It can be

shown in the table below

what can they do?

- What is weakness of the competitors

- What can help the competitors to retaliate in the most strong and effective way?

Table1.3 Competitors analysis (Source: Michael E.Porter 1985)

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Beside competitors, the Supplier includes all the subjects such as suppliers of input material, financial source and labor The supplier may make threats against company the price and payment method The influence level depends on the concentration of the supplier, the importance of the quantity of the products to the supplier; the difference among suppliers, the influence of input factors on the cost or the difference in products, the change cost of the enterprises, the existence of replaceable suppliers, the threat of unity of suppliers; supply cost against total profit of the profession

Customers decide the existence of company The trust is the most value asset of an enterprise That trust can be reached because that company can satisfy the demand and passion of customers better than competitors Negotiation ability of the customers is expressed as the buyers are regarded as a competitive threat when they require lower prices or better services The influence level depends on negotiation position, the quantity

of buyers, the information the buyers get, the special characteristics of the product brand, the sensitiveness to the price, the difference in products, the concentration of customers in the profession; the availability of replaceable goods, customer motivation, the integration ability when the buyers can use threats of supply sources

The new competitors to join the industry may also be the factor to decrease the profit of company because they exploit and use the new production ability with the desire

to occupy the market share and necessary resources Therefore, the protection the position

in the competition includes maintenance the legal barrier to prohibit the penetration from outside The legal barriers mainly include the economy of the scale (the effectiveness of the enterprise, it gains experience when the scale is bigger), product diversification or trademark loyalty (It is the buyers’ love for existing products as they believe those products are special A firm can create trademark loyalty by continuously promoting, registering and protecting patent of its products; improving products’ quality through research and development programs; strongly focusing on product quality and after sale services The trademark loyalty causes difficulties for new competitors who seek for a

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market shares by entering the industry), high financial capital (Competing in a new industry requires resources to invest Beside the physical facilities, capital is needed for critical business functions The new entrants must consider the volume of required capital

if available to pursue the apparent market opportunity), switching cost (the cost of buying new equipment, of retraining employees and even the psychic costs of ending a relationship, may be incurred in switching to a new supplier A decision made by manufacturers to produce a new, innovative product creates high switching cost for the final consumers)

Lastly, the subsitutional products may reduce the potential profit of industry by applying the ceiling price which other companies give out in their scale to have profit The influence level depends on changing cost when using products, the trend to use replaceable goods from customers, balance of price and quality of replaceable goods The subsitutional products join market massive will increase the competition in the industry and decrease the price and improve the quality

1.4.2 Analysis of internal environment of company

Analysis of internal environment of company is a foundation to help company realize their strengths, weakness compared with the competitors Meanwhile, it helps the management people to know their ability to catch up the advantage to compete in each

period The internal function factors such as human resource, finance, marketing,

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1.4.2.2 Finance

Financial condition is considered as the assessment method of competition position

of company and it is the attractive condition of the investors For building perfect strategy, it is needed to determine the ability, weakness of company’s finance It shows by some major financial figures such as liquidity, ratio of asset, equity, profit This will help

to build the strategy and perform it better and more feasible

1.4.2.3 Marketing

Studying the marketing to realize the market chances, market segments to choose the targeted market and market orientation Meanwhile, marketing will help to study the customers and related factors to form the marketing orientation and competition marketing Through the marketing activities, company may design, organize to complete and check the product, price strategy

The leading activities consist of the efforts to orient the activities of people, in details is connecting, managing with group, individuals, delegating, authorizing to improve the working quality, satisfy the demand of company and staffs

At last, the control activities relate to all operations to ensure the result correctly and suitable with the plans

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1.5 Tools of building strategy and selecting strategy

1.5.1 Tools of building strategy

Come from the situation of Housing and Urban Development Corporation (HUD), the suitable tool of building strategy as follows:

1.5.1.1 Internal Factor Evaluation Matrix (IEF)

Internal Factor Evaluation Matrix is the tool to summary and evaluates the strengths and weaknesses of SBU It brings the base to determine and estimate the relationship between these units

According to Fred R.David, IFE matrix can be built by 5 steps as follows Step one

is listing the factors determined in the internal evaluation, using 10 to 20 factors,

including strengths and weaknesses

Step two is fixing the importance by classifying from 0.0 (unimportant) to 1.0 (most important) for each factor The importance of each factor expresses the importance

of it to the company success Total score for the importance is 1.0

The third step is classifying from 1 to 4 for each factor, for the largest weakness

marked 1, the smallest weak weakness marked 2, the smallest strength marked 3, and the

largest strength marked 4 This mark are built base on the evaluation of the internal factor

Fourthly, step four is multiplying the importance of each factor with its classification in order to the find out the score of importance for each factor

Lastly, the step five is that plus all the score of importance for each factor in order

to find out the score of importance of the company

However the IFE consists many elements, the total mark may be classified the lowest from 1.0 to the highest of 4.0 with the average point is 2.5 If the total mark is below 2.5, it shows that company is weak inside and vice versa, the higher mark than 2.5 tell that the internal company is strong enough

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1.5.1.2 External Factor Evaluation Matrix (EFE)

External Factor Evaluation Matrix (EFE) allows recapping and assessing the information of economy, politics, culture, society, demography, geography, law, technology and competition

According to Fred R.David, the forming EFE consists of five steps

Firstly, step one is listing the elements which plays the decisive role on the success

of company as same as the internal factors evaluation It may use ten to twenty elements including the opportunities and threats to affect the company and the industry of company

The second step is classifying the importance level from 0.0 (not important) to 1.0 (very important) for each element This classification tells the importance potion of them

to the success of business industry of a company The suitable classification may be determined by comparison the succeeded competitors with failed ones or by discussion about these elements for agreement in the group The total of classification must be 1.0

The third step is classification and marking from 1 to 4 for each decisive factor to see the method which the current strategy reacts upon them, while mark one is low response, two is average response, mark three is reaction above average, and four is good reaction

Next, step fourth is multiplying each importance level with that factor to determine the total mark for each variable

Lastly, the fifth step is adding all the marks to have the total mark of company Any factors of threats and opportunities inside the EFE matrix, total important mark which company can have lowest is 1.0, highest is 4.0 and the average mark is 2.5 The total mark is 4 shows that company response very good with their current opportunities and threats in their industry environment The total mark is 1 show that the strategy which company suggested will not use advantage of opportunities or avoid the

external threats

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1.5.1.3 Matrix Internal - External (Matrix IE)

Matrix Synthesis of external factors, the internal factors is based on two main aspects They are total mark of important elements of the IFE matrix and total mark of important points of the EFE matrix

The total mark of important elements of the IFE matrix is shown in X axis

The total mark of important elements of the EFE matrix is shown in Y axis

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

The mark of IFE

Table 1.4: Model of IE Matrix

IE matrix puts different SBU of a company in one table with nine boxes They are boxes

of Development and construction — the blue box I, II, IV (appropriate strategy is to focus growth (market penetration, market development, product development), hold and maintain - the yellow box III, V, VII (appropriate strategy for market penetration and product development), harvesting and remove - the red box VI, VIII, IX (cuts, liquidation

or remove parts down inefficient operations)

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Step one is listing the main strengths inside the company

Step two is listing the main weaknesses inside the company

The third step is listing the big opportunities outside the company

The fourth step is listing the importance threats outside the

Lastly, step five is combination of strengths with external opportunities and listing the result of SO strategy in suitable box

The six steps is combination of weakness with external opportunities and listing the result of WO strategy in suitable box

Next, step seven is combination of strengths with external threats and listing the result of ST strategy in suitable box

Lastly, step eight is combination of weakness with external threats and listing the result of WT strategy in suitable box

Listing the opportunities Listing the threats

Listing the strengths Use strengths to Use strengths to

take advantage restrict and

of the opportunities evade threats

Listing the Exploiting opportunity to fill seats Overcome weaknesses weaknesses of weaknesses and overcome weaknesses | in order to reduce risk

to take advantage of the opportunity

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1.5.2.2 Method of selection strategies

Using strategic planning matrix can be quantified (QSPM - Quantitative Strategic Planning matrix)

Table 1.9 : QSPM - Quantitative Strategic Planning Matrix

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CHAPTER II

INTRODUCTION AND ANALYSIS ON THE HOUSING

AND URBAN DEVELOPMENT CORPORATION

2.1 Establishment and development history of the Housing and Urban Development Corporation (HUD)

The Housing and Urban Development Corporation (HUD Corporation) is a State- Owned corporation organized and operates according to the Decision No 90/TTG dated O7 March, 1994 of the Prime Minister The Corporation was established in 2000 (according to the Decision No 08/2000/QD-BXD dated 02 June, 2000 of the Minister of Construction) from the Housing and Urban Development Company (which was incorporated on 10 October, 1989 according to the Decision No 843/BXD-TCLD of the Minister of Construction)

Its main activities are:

Making investment and development of residential areas, urban areas, economic zones and centralized industrial parks

Providing consultant services on construction and infrastructure development of urban areas, industrial parks

Providing management services for projects on investment and development of housing, new urban areas and industrial parks

Making construction, installation of civil, industrial, transportation, irrigation, tele- communication works, and infrastructure of urban areas, industrial parks, lining and

power station projects, and water and electricity systems of civil and industrial projects Managing services in new urban areas, residential areas

Having joint-venture and combination relations with foreign and domestic organizations in investment and development of urban areas, residential areas and industrial parks

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of new urban zones is over 2,000 ha in the whole country

2.2 Analysis of the Corporation’s internal environment

- Post graduates: 35 people, accounting for 2.45%

- University graduates: 788 people, accounting for 55.18%

- Junior College graduates: 211 people, accounting for 14.77%

- Others: 394 people, accounting for 27.59%

The Corporation has also divided and organized many departments which very necessary for the activities of companies now such as operational, site-clearance, planning, project management and marketing The strengths and weaknesses of its human

resources are as follows:

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GaMBA01.M05

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Table 2.1: Strengths and weaknesses of human resources

Strengths

- Plentiful human resources

_- Suitable qualifications and experience

_- Good organization structure from

! project obtainment to site clearance,

| design, construction, supervision,

| quality control, economic and financial

| planning

| - Having its project management board

| with decentralization at sites to timely

| get information for decision-making

| - Marketing staff have good relations

| and impressions on clients and

| competent authorities who help them

| find more investment opportunities for

| the Corporation

| - Having a rather strict control system,

| having control board of each division

| which can support and encourage

High-ranking management leaders

have not yet developed their full

| geographical characteristics and habits

“of the people of localities where

located, | economic

| efficiency and feasibility of projects

Capstone Project Report

The Housing and Urban Development Corporation (HUD) is a 100% State-owned enterprise, specializing biggest real estate projects in Vietnam Capital is a very important factor for all enterprises, especially in construction industry At the moment, the Corporation has its own equity of 1,800 billion Vietnamese dong (equivalent to one

C2 Global Advanced Master of Business Administration

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Gricos) GaMBA01.M05 Capstone Project Report

Table 2.2: Capital Development Data

No Items 2007 2008 2009

I Opening shareholder equity 108614211856 2

1 Additions from other sources of own equity | 165 _ 0 0 |

2 Additions from annual profit | 170 214 341 |

3 Additions from mergence of other companies | | 221 150 |

4 Additions from implemented projects | 1.700 |

IH Closing shareholder equity | | 1,421 / 1,856 4,047 |

‘IV Planned investment capital = | 2,542 [ 4,000 6,060 |

Table 2.3: Capital Mobilization in 2008

No, | items | | Amount - Percentage per

| (billion dongs) total capital flow

Griccd GaMBA01.M05 Capstone Project Report

Table 2.4: Business results in recent years

No Items ‘Unit 2006 2007 2008

| Business _ billion dongs 2,967 3,500

2 | Tumover —Ô lbiliondongs 2313 3/192 - 4150 ~

3 _ Profits before tax | billion dongs 120 196 ~ 300

6 Investment capital | billion dongs 2,125 2,542 | 4,000

Griccd UNIVERSITY GaMBA01.M05 Capstone Project Report

Table 2.5: Financial figures in the recent two years

| Short-term Payment Coefficient (times) Led 1.11

| Quick Payment Coefficient (times) 0.58 0.46

| Total Assets Turnover (period/year) - | 0,34 |

“Cash Collection Period (day) 9