BÁO CÁO THỰC TẬP-INVESTMENT GPS SYSTEM IN VINATAXI

Status of application of GPS technology in the management of taxi in Vietnam...7 2.5.. In troduction about the project  Project Name : Investment GPS system in Vinataxi  Address: Ho C

Investor : ComfortDelGro (Singapore)

Ho Chi Minh City, June 2014

(Vice General Director)

Ho Chi Minh City, June 2014

TABLE OF CONTENT

CHAPTER II: THE ESSENTIAL INVESTMENT PROJECT 3

2.3 GPS solutions for taxi management 4

2.4 Status of application of GPS technology in the management of taxi in Vietnam 7

2.5 Conclusion about necessary of this investment 7

CHAPTER III: THE CONTENTS OF THE PROJECT 9

3.1 The list of machinery and equipment required investment 9

3.2 The progress of project 9

CHAPTER IV: FINANCIAL PERFORMENT 11

CHAPTER I: INTRODUCTION ABOUT THE PROJECT

1.1 In troduction about the project

 Project Name : Investment GPS system in Vinataxi

 Address: Ho Chi Minh City

 Project Objectives: Investment into the GPS system to manage about business activities

of Vinataxi :

+ Reduce personnel costs

+ Support for professional management

+ Anti- revenue losses

+ Support Executive

+ Improve customer service

+ Raising aware of drivers

 Type of investment : ComfortDelGro Corporation (Singapore) investment 100% capital

 Forms Management : Through Project Management Unit of Project is established

by the investors

 Value investors GPS : 4,818,848,000 VND (equivalent 372,975S$)

 Financial performance: NPV = 1,182,125,000 VND > 0; IRR = 25% >> re = 18%

 The Project brings high profits for the investors

The implementation progress: The project was deployed in August 2006 and put into use

in early 2007 and gradually completed in 2008

1.2 The unit responsible for project

 Unit investment : ComfortDelGro Corporation (Singapore)

 Unit suggestions: Vietnam Taxi Company (Vina Taxi)

 Unit implemented: Vietnam Taxi Company (Vina Taxi)

Vina Taxi Co is a joint venture between Tracodi Co and ComfortDelGro (Singapore), established under the investment license dated 24.10.2008 No 411022000346

English name: VIETNAM TAXI CO., LTD

Trading name: VINATAXI

Location: Tan Binh Industrial Zone, Road No 4, Lot 4-15B, Tay Thanh Ward, Tan Phu District, Ho Chi Minh City

Tel: (84 8) 38155152 - 38155153

Fax : (84 8) 38155158

Have a competitive advantage when the driver team have a lot of experienced , manage cost-effective and achieve efficient economic from advantages of scale Therefore, Vinataxi is expected to continue to hold the leading position in the industry, particularly in the southern region Thus, we believe that the growth of revenue will be stable, the using of capital effect will increase

1.3 Legal Basis

- Law on Investment on 29/11/2005 No.59/2005/QH11 of the National Assembly of the Socialist Republic of Vietnam;

- Enterprise Law on 29/11/2005 No.60/2005/QH11 of the National Assembly of the Socialist Republic of Vietnam;

- Law on Road Traffic;

- Dispatch No.206/2003/QD-BTC December 12, 2003, promulgating the regime of management, use and depreciation of fixed assets

CHAPTER II: THE ESSENTIAL INVESTMENT PROJECT

2.1 Demand for use Taxi at the moment

The taxi service branch is one of the industrial capable of positive growth in the macroeconomic situation in country at present We estimate the taxi market will stabilize growth, especially in the large cities due to:

(1) Flow of passengers using the road traffic have increased significantly with the average speed at 9 % / year comes from the travel demand of the people as well as the increase in international passenger traffic to Vietnam Moreover, the growth index of road traffic and the number of international tourists in the first 5 months of 2006 there has been a strong breakthrough compared with 2005 Consequently, we believe that taxi services will grow faster than by the transport market, strong growth in both scale (traffic volume) and number of passengers

Source: GSO

1 (2) People's incomes increase , traveling in the rainy season and the development yet strong enough of the public transport such as buses, motor taxi making people use the taxi services more because of the service and its utility

In short, today, growing social , people's lives improved physically and mentally Demand for food, clothing, cosmetic, including the transportation of people increasingly more attention Besides the appearance of the motorcycle, car, bus is transportation mainly of people, the demand uses taxis increasingly became popular Demand for uses

2.2 The difficulties in management and operating taxi system

Currently, the taxi companies operate as the traditional way: the customer will call to operator, he/she will recieves and writes information on paper: address, taxis and address of customers then, this information will be send to call center and up to the talkie In parallel with the large number of people and vehicles, the administration - management and resolve issues arising relating faced many difficulties, may be mentioned the following difficulties

( 1) Call-Centre works

- It was mainly based on the radio Staffs could not locate the taxis so that they must depend entirely on the response of drivers whenever they wanted to go or arrived the points Many drivers intended to cheat by reporting the wrong cars’ numbers, wrong locations or not reported to the Call-Centre when they got the customers to avoid being tracked

- At the tradition Pick-up-points where drivers used to gather to get and manage queues

by themselves, there were some negative status like: the monopoly status (just a group of drivers could join that rank, the other could not), drivers could choose customers to serve, cheat customer, offer negotiated prices higher than by taxi meter

- Beside, when those areas were short of car, staffs could not know in advance so that they could not give notice for drivers to bring car back to serve customers

(2) Customer Service works

- The investigation mainly based on the radio and self-conscious of drivers

- Staffs resolved the complaints based on their personal experience so that must of our feedback were not convincing

- The rate of successful resolution is very low (<50%)

(3) Defer shifts for drivers

- The defer shift’s work was difficult, inaccurate and unprejudiced because it much based

on the drivers’ reports and staffs’ records

- Drivers and employees took advantage of this work to make their profit and cause financial damage for the company

(4) To revoke taxis due to overdue debt

- It was very difficult and took much time for enforcement staffs to take cars back because they could not know cars’ locations while drivers tried to hide by many ways

(5) Issue the VAT invoice for customer

- Many drivers colluded with customers to apply for VAT invoice or co-operate with taxi card users to imprint receipts for false trips In these cases, staffs could not check or verify

2.3 GPS solutions for taxi management.

2.3.1 The features of GPS technology

The application of GPS technology in the management of transportation are becoming more popular in the world and this is a service that provides high value-adde, base telecommunications technology , information technology, background basis of geographic information systems (GIS) Today, It’s commonly used in the shipping industry on the worldwide This application is used to monitor, track and manage vehicles in order to increase efficiency and save costs.

The system provides the key features following:

• Monitor, track parameters velocity, direction of travel, the status start and shutdown machine

• Track and route simulation of vehicle movement

• Statistical distance, use time, estimated the fuel consumption

• Warning excessive speed, moving out of the area or the route permission

2.3.2 System Structure

 The system consists of 04 main components:

• Server coordinated car: located on Cloud server This system is common to the taxi business

• Call center server: Server system stored customer data and vehicle coordination rules Each taxi company will have own server

• Vehicle software: each driver will have own software coordinate car

• Rack mounted in the taxi: a taxi have a GPS device setting in car screen to help locate vehicles and communication between the truck with center

Figure: Structure taxi management system using GPS technology

 The steps conditioned car

1 Customers call to center to require vehicle

2 Software coordinator is used will send the customer address for the server is waiting car moderators

3 Servers looking for taxi the nearest with customers and notice pickup

4 When drivers acknowledge agreeing to pickup customers, this information will be forwarded by the coordinator

5 Coordinator will notify customers: license plate, time to car arrive

6 Drivers will notice the situation: they're on the way to pick up, has arrived, customer has gotten in or gotten off taxi, to the Private Branch Exchange (PBX) can control situation of vehicle

Compared with the old method is use radio, the new system has the advantages following:

- By the Q-Board-Display, staffs manage taxis on each rank better as they know the quantity of taxi on queues, status of them ( Free, On call or Meter-on…) It helps re-arrange taxis to serve customer effectively

+ Customer Service works

- The jobs dispatched by GPRS have the taxi number, time of dispatching and also the route so that drivers must be more responsible to their customers Many drivers return belongings to customers before being recognized The number of complaints has decreased significantly.

- Currently, the rate of successful resolution is above 80%

+ Defer shifts for drivers

- Employees can easily check and confirm the business downtime of taxis correctly and objectively

- It helps reduce the quantity of defer shifts and the negative attitudes of staffs

+ To revoke taxis due to overdue debt

- Locations of cars are shown on map clearly so that enforcement team can come to take car back quickly

- For drivers who intend to turn off the GPRS equipments, staffs still can track their locations by using some tools of GPRS system

+ Issue the VAT invoice for customer

- Staffs can check the authenticity of trips by viewing the cars’ routes

2.4 Status of application of GPS technology in the management of taxi in Vietnam

Worldwide, GPS devices have been widely applied in many fields, especially for the transportation sector; However, in Vietnam, location-based services are just beginning to be exploited with some simple applications and currently on the market domestic taxi, have yet to

be a business application of GPS technology in the management and operating

GPS applications is essential for the transport activity To develop the public transport system, the State should have focused investment for this solutions, so effective achieves tremendous will to the development of the economy If the private sector to participate in the application will be difficult and slow because investment costs for large operating systems

2.5 Conclusion about necessary of this investment

As above, we have analyzed the demand use taxi of Vietnamese is increasing and there is

an opportunity for the development of Vinataxi,well as other taxi firms in the country However, during operation, almost all taxi firms appear shortcomings as well as difficulties in management and administration

Realizing the benefits that GPS technology brings, Vinataxi the proposed decision ComfortDelGro Group (Singapore) invests positioning system into the management and administration in Vinataxi GPS technology helps Vinataxi:

+ Reduce personnel costs

+ Support for professional management

+ Anti-revenue losses

+ Support Executive

+Raising customer service

+ Raising awareness of driving

In Short, if invested now, Vinataxi will be the first taxi firms in Vietnam applies GPS technology into management and this will be competitive advantage of the Vinataxi compared

to competitors in the market Therefore, Vinataxi asserts that investment into positioning system is necessary and urgent in the current period

CHAPTER III: THE CONTENTS OF THE

PROJECT

3.1 The list of machinery and equipment required investment.

2 Advance Tech 48 pin universes program & adaptor 1

3.2 The progress of project

The project will be begun at August, 2006, used in 2007, then finished in 2008

Aug Sept Oct Nov Dec Jan

1 Evaluate and Testing GPRS Modem and Network x x x

5 Enhance MDT Application to Interface GPRS Modem x x x x x x

7 Setting Up of Dispatch Server (HP-UNIX) & Window Server x x

8 Setting up of MDT support & Maintenance Team x x

11 Project Management & Agreement x x

12 Perchase of PC & Window Server for Call Center Agent x x

13

Training on Support and Maintenance of IT

CHAPTER IV: FINANCIAL PERFORMENT

IN INVESTING GPS SYSTEM

4.1 Value Investment

4.1.1 Value Investment

The value of investment GPS system is 4,818,848,000 VND (equivalent 372,975S$)

4.2 The capital of project

4.2.1 The process of project

The project will be begun at August, 2006, used in 2007, then finished in 2008

1 Evaluate and Testing GPRS Modem and Network

2 MAP & Address Database Setup

3 Setting Up of Call Centre Infrastructure

4 Dispatch System Setup and Development

5 Enhance MDT Application to Interface GPRS Modem

6 Subcrible to GPRS Service

7 Setting Up of Dispatch Server (HP-UNIX) & Window Server

8 Setting up of MDT support & Maintenance Team

9 Training of Drivers on the use of MDT

10 Purchase of GPRS Modem

11 Project Management & Agreement

12 Perchase of PC & Window Server for Call Center Agent

13 Training on Support and Maintenance of IT Infrastructure

4.2.2 The capital of project

The total investment GPS System is 4,818,848,000 VND equivalent 372,975S$, this capital is used from interest free loans of ComfortDelGro Ltd., Co

4.3 Financial Performance

4.3.1 The benefits in investing GPS system

Besides the intangible values of investing GPS system in Vinataxi, the benefits in operation activities:

+ Increasing the total revenue in taxi operation

Thanks to GPS System, the service quality will increase remarkably then will build trust of customer when using Vinataxi’s service, contributing to raise total revenue The number of cars is 452 units in the previous years Assumption, this will increase around 15%, the total number will be 520 cars Hence, the number of car will increase 68 cars, this shows that the investment GPS System makes the revenue increasing more effective and competitive advantages with others in Ho Chi Minh City

In Ho Chi Minh City, Vinataxi set up 26 areas, unless every taxi sets GPS system, there

is one person to operate in each area, the basis salary is 2,800,000 VND/month/person, insurance and others are 800,000 VND/month/person

 The benefit in saving employments’ salary/year = 3,300,000 VND/month/person x 26 people x 13 months = 1,115,400,000 VND

+ The benefit in cutting cost of maintenance, replacement parts of cars

System makes the dispatch job be more efficient and has got customers and drivers compliments It helps re-arrange taxis to serve customer effectively, to decrease fuel and distance

The average time for maintenance, replacement parts of cars of each taxi is 5000 kilometers

The average cost/term = 1,050,000 VND/taxi/term

The items/year before using GPS system = 12 terms

The items/year after using GPS system = 6 terms

 The benefit in cutting cost of maintenance, replacement parts of cars = 1,050,000 VND/taxi/term x 520 taxis x (12-6) terms = 3,274,740,000 VND

Unit: 1,000 VND

No The benefits of investing GPS System 2007 2008 2009 2010

1 Saving employee’s salary in each area

The benefit in cutting cost of maintenance,

replacement parts of cars

3,274,740 3,274,740 3,274,740 3,274,740

Total Benefit 4,390,140 4,445,910 4,504,469 4,565,955

No The benefits of investing GPS System 2011 2012 2013 2014

1 Saving employee’s salary in each area

2 Cutting cost of maintenance, replacement