Solutions to enhance competitiveness of truong giang trading and service limited liability company

Lao Cai market for competitors, thereby drawing out successes, limitations, andcauses of successes, that restriction.Thirdly, the theoretical basis has been systematical with objective a

1.The urgency of the research subject

The commercial and trading of cars are one of the most important economies andcontributes to industrialization and modernization Vietnamese life is improvingmore than in the past, so the car is an essential tool for everyone The demand forthe use of the car has steadily increased since 2006 With over 96 million people

in Vietnam and high economic growth, the development prospects of theindustry The automotive industry is huge For these reasons, I decided to choose

the subject: “Solutions to enhance competitiveness of Truong Giang trading and service limited liability company.” Nissan Lao Cai is one of the most

prestigious and well-known companies in the province of Lao Cai However,there are still not many in-depth statements from financial institutions, andinformation about the company is still ambiguous in the market That is why I

am making this report with the aim of improving and providing informationabout the Nissan Lao Cai Moreover, the report also shows part of the process ofanalysis of financial statements in the company, therefore support the company

in improving these processes

I have tried to be extremely meticulous in preparing this report despite thevarious limitations faced as very limited information about auto industry

2 Objectives of the research

First, systematize the theoretical basis of the competitiveness of business

companies, including concepts, characteristics, content

The second is to analyze the current situation of Truong Giang trading and

service limited liability company competitiveness on automobile products in the

Lao Cai market for competitors, thereby drawing out successes, limitations, andcauses of successes, that restriction.

Thirdly, the theoretical basis has been systematical with objective assessments

on the actual situation of implementing the business strategy and the competitive

strategy of the company company paintings

3 Research methods

Student choose dialectical materialism and historical materialism based onobjective phenomena and socio-economic rules At the same time, student use acombination of research methods to achieve research objectives Specifically:a) Methods of collecting and processing information

The method of collecting and processing information is used by students tocollect primary and secondary documents These are the financial statements ofseveral multinational companies in Vietnam; reports on inspection results ofmultinational company branches of the General Department of Taxation and TaxDepartments in some localities; some conclusions of inspection of violations oftax obligations in general, suspicion of price transfer in particular of Inspectorate

of the Ministry of Finance, State Audit; relevant legal documents, reports,projects and programs of the Ministry of Finance, the Ministry of Planning andInvestment, the General Statistics Office, the General Department of Taxationand tax authorities in some localities Along with that are projects, scientificresearch projects at many levels, the master's thesis in economics, scientificarticles in country and abroad related to multinational companies, multinationalcorporate finance and transfer pricing Students have processed the informationfrom these documents to achieve the following objectives:

 To systematize the research results before the graduate thesis, find out theproblems and problems, exist as well as point out the research gap that the graduatethesis needs to seek, thereby finding new points of the problem.

 Finding and collecting scientific bases as well as data from reliablesources serve as an objective basis for the formulation of arguments,demonstrations on both theoretical and practical perspectives

approach

b) Analysis method

The analytical method is used to analyze the data related to the problems ofbuying and selling financial and non-financial goods, products and services(internal transfer activities) of MNC's branches in Vietnam with the parentcompany as well as with the related parties In addition, the method is used inanalyzing the forms and processes that a multinational company branchimplements to carry out transfer pricing activities The thesis has analyzed somedata to see the impact of transfer pricing in multinational company branches inVietnam, focusing on eroding the tax base as well as causing the situation of loss

of state budget revenue

However, transfer pricing is a very sensitive issue, in addition to some publiclyavailable information and data, many of the documents provided by theauthorities are internal documents and have not been published, Some documentscontain information that is considered as an asset owned by an enterprise with alimit of users, Some documents have a security nature at the present time, so inthe process of using, students are asked not to publicly make clear the source andname of the business and the name of the multinational companies or the partieshave an related relationship But I can confirm that the documents have clear

origin, high reliability and are provided by competent authorities in accordancewith the process; at the same time, I used and faithfully cited in the thesis.

c) Comparison method

This method is used to compare the provisions of the legal system of Vietnamwith the provisions of some international organizations such as the UnitedNations or OECD as well as some other countries on the direct investmentpolicy, tax policy, internal transfer pricing methods as well as other relatedissues

At the same time, the comparative method is also used to compare and analyzethe changes in regulations on price transfer control in Vietnam through periodsand analyzes to show the pros and cons of each regulation

d) Case study analysis method

Case study is a qualitative research method that is very suitable to my thesis aswell as to the nature of the research data This method is used by me to analyze

in some cases, typical cases of transfer pricing at multinational companies'branches in Vietnam as well as typical cases of controlling transfer pricing ofsome countries

This method helps the thesis answer the question of how price transfer forms aretaking place at multinational companies' branches in Vietnam as well as in theworld; ways in which advanced countries as well as countries with conditionssimilar to Vietnam respond to transfer pricing activities At the same time, thecase study method also allows me to select typical cases, typical transfer pricingquestions as evidence for transfer pricing in multinational company branches inVietnam

e) Secondary data collection method

Due to the nature of the data and research materials, I could not directlyinvestigate the actual data but use the survey results (secondary data) of someauthorities as well as specialist research teams The results of these surveys areused appropriately to increase the reliability of the thesis points.

Specifically, the thesis has used the research results: The survey results of theGeneral Department of Taxation; Survey results of the Tax Department in somelocalities; Survey results of expert group from City University of Economics HoChi Minh, Statistical survey results of the General Statistics Office

4 Scientific and practical significance of the thesis

The research topic reflects the business situation of Truong Giang company,thereby considering factors affecting business activities The research results will

be important market research information for managers at Truong GiangCompany, helping the company to understand the financial situation of thecompany Managers can consider marketing planning and find appropriatedirections in the future

5 Research scope

 In term of space: Nissan dealer system nationwide Focusing mainly on

the market of Lao Cai province and vicinity provinces

 In term of time: Research should focus mainly on the period between

2017 and 2019

6 Structure of the thesis

Internship report included 03 chapters:

Chapter 1: Overview of Truong Giang Trading and service limited company Chapter 2: The current situation of business performance in the company.

Chapter 3: Solution to enhance competitiveness of Truong Giang trading and

service limited liability company

CHAPTER 1: THE THEORETICAL BASIS

1.1 Overview about business activities

1.1.1 Definitions

1.1.1.1 Business

An enterprise is an economic organization engaged in production and businessactivities, to provide products or services that satisfy the needs of the market andearn a certain profit for itself Through the concept of production and businessactivities, we can only see that it is only a basic economic category and theefficiency of production and business is an economic category expressing thefocus of development in depth, It reflects the level of exploitation of resourcesand the level of cost of such resources in the reproduction process to achieve thebusiness goals of the enterprise This is an important measure of economicgrowth and a basis for assessing the implementation of business goals of the

enterprise in each period.

business process Efficiency is an integrated quality indicator reflecting theprocess of using elements in the manufacturing process.

In a market economy, businesses must compete fiercely in using resources tomeet the increasing needs of society Enterprises operating in the marketmechanism to win the competition must put economic efficiency first, so theymust take advantage of exploitation and minimize resources

The essence of improving the business efficiency of enterprises is corresponding

to the improvement of social labor productivity and social labor savings Thatwill bring business efficiency to the business If businesses with low, businessefficiency will be excluded from the market, and businesses with high economicefficiency will exist and develop

In a nutshell, production and business efficiency is the reflection of quality in production and business activities, the level of leveraging the resources

quality-of the business

1.1.2 Factors impact to the enterprise

It is common to classify factors affecting an enterprise's business activities intosubjective and objective factors, subjective factors as factors belonging to theenterprise itself control or adjust it, the objective factors are factoring thatbusinesses can not adjust and control

1.1.2.1 The objective factors

Factors that cannot be controlled by the enterprise, constantly affect the businessactivities of the enterprise in different trends, creating both opportunities, andlimiting the ability to realize the goals of the business Business operationsrequire a regular understanding of these factors, their operating trends, and theirimpact on the overall business operation of the enterprise

Objective factors are laws, culture, society, technology, technology, economics,natural conditions, infrastructure, and economic relations that are factors

enterprises cannot control At the same time, it has a common impact on allbusinesses in the market Researching these factors, the enterprise is not aiming

to control it according to its own opinion but to create the best adaptability to itsadvocacy trends

1.1.2.1.1 Political and legal factors:

Factors in the political and legal environment have a strong impact on theformation and exploitation of business opportunities and the purpose of businessoperations Political stability is an important prerequisite for business activities,political change may have a beneficial effect on this group of businesses orinhibit the development of other businesses The complete legal system and therigor in law enforcement will create a healthy competitive environment forbusinesses, avoid fraud, smuggling

The level of political and legal stability of A country that allows businesses toassess the level of risk, the business environment and its impact on the business,

so the study of political and legal factors is required It is indispensable whenbusinesses participate in the market

1.1.2.1.2 Economical factors

It is possible to create favorable conditions for penetrating to expand the market,this industry but limiting the development of other products Economic factorsaffecting purchasing power, changes in consumer demand or development trends

of industries, and economic factors include:

+ Foreign trade activities: Opening and closing trends of the economyinfluencing business development opportunities, competitive conditions, the ability

to use national advantages in technology and capital sources

+ Inflation and the ability to control inflation affect income and product

accumulation, consumption, stimulation, or constraint of investment

+ Changes in economic structure affect the position, role, and development trend

of economic sectors, leading to change in development direction

+ Speed of economic growth: Shows the general development trend of theeconomy related to the ability to expand or narrow the business size of eachenterprise

1.1.2.1.3 Socio-cultural factors:

Having great influence on customers as well as business activities of enterprises,which form the psychology and tastes of consumers Through this factor allowsbusinesses to understand at different levels of the target audience so that they canchoose the appropriate business methods Income influences the choice ofproduct type and quality social and professional response affects the perspectiveand ways of behaving in the market, ethnic factors, a culture that reflects theviews and ways of using the product, it just requires to meet the unique situationand create opportunities to diversify the ability to meet the needs of the business

1.1.2.1.4 Technical and technological factors:

Affecting the requirements of technological innovation in equipment, the ability

to produce products with high-quality Quality, Labor Productivity,Competitiveness, Selection, and Technology Supply

1.1.2.1.5 Natural conditions and infrastructure:

Natural conditions such as climate and weather affect the production andbusiness cycle in the region, or affect the goods storage and preservationactivities For technical infrastructure, the conditions for production andbusiness, on the one hand, create a basis for business facilitation when exploitingthe existing infrastructure of the economy, on the other hand, it can also causelimiting the ability to invest, develop business especially with commercialenterprises in the process of transporting, preserving, distributing

Customers are those who have the demand and ability to pay on goods goodsand services that businesses do Customers are an important factor indetermining the success or failure of businesses in the market economy.Customers have very diverse and different needs depending on their age, gender,income level, habits, etc Each customer group has a unique characteristic thatreflects their shopping process Therefore, enterprises must have policies to meetthe needs of each group accordingly.

1.1.2.1.7 Subjective factors

These are all elements of the enterprise's potential that the enterprise can control

to some degree and use to exploit business opportunities The potential reflectsthe real power of businesses in the market, appreciating the potential that allowsbusinesses to build the right business strategy and plan while taking advantage ofhighly effective business opportunities

Factors of the potential of the enterprise include: Financial strength, humanpotential, intangible assets, management and organization level, technologyequipment level, infrastructure, right Prospects of business objectives andcontrol over the implementation of the target

+ Financial strength reflected on the total capital (including equity, mobilizedcapital) mad enterprises can mobilize business activities, the ability to effectivelymanage the capital resources in the business Financial strength is reflected in theability to pay the short-term, long-term debt, profitability ratios of businesses

meeting high requirements of the business, completing the assigned tasks, the staff

of local businesses is always oriented towards the business highly specialized,skilled workers capable of solidarity, dynamic take advantage, and exploit businessopportunities

+ Intangible potential: are the factors that create the power of businesses in themarket In the commercial relationship, the intangible potential has createdfavorable conditions for the public purchasing, creating sources as well ascompetitiveness to attract customers, expand business markets The intangiblepotential of the business can be the image of the company's reputation in themarket or its popularity brand, or the ability to communicate and reputation of theleader in social relationships.

+ The geographical location and facilities of the enterprise allow the enterprise toattract customers' attention, convenient for providing purchasing or performingreserve activities The technical and material basis of the enterprise represents thefixed assets that the enterprise mobilizes into the business including officebuildings, specialized equipment That shows the strength of the enterprise, thesize of the business as well as advantages in business

1.2.1.2 Disadvantage

Several organizations work in different companies each possessing various environmental offices such as market structure, regulation, etc., Such factorsplay a vital role that a comparison of 2 organizations from varied industries might be ambiguous.

Financial accounting data is influenced by views and hypotheses Accountingcriteria provide various accounting methods, which reduces comparability andthus ratio analysis is less helpful in such circumstances

Ratio analysis shows the associations between prior data while users are moreconcerned about current and future data

1.2.2 SWOT method

The SWOT analysis model is a useful tool used to understand Strengths,Weaknesses, Opportunities, and Threats in a business project or organization.Through SWOT analysis, businesses will see their goals as well as factors insideand outside the organization that can positively or negatively affect the goals set

by the business In developing a strategic plan, SWOT analysis serves as themost basic, highly effective tool to help you have an overview not only of thebusiness itself but also the factors that always influence and determine.Determine the success of your business

1.2.2.1 Strength

The strength is your advantage, your business, your project, your product Thesemust be the dominant and unique characteristics that you hold when compared toyour competitors Answer the question: What do you do best and best? Whatinternal resources do you have? How do you own advantage of people,knowledge, reputation, skills, relationships, technology ? Here are a few areasthat you can use as a basis for you to find your strengths:

+ Resources, assets, people

+ Inheritance, culture, administratin

1.2.2.2 Weakness

Most understandably, the weak points are the things you do not work well If youfeel awkward, the easiest way to find your weak point is to look back on theareas I have suggested above such as resources, assets, people, if in any

"absence" strengths, in there will be weaknesses and weaknesses

The weaknesses are the problems that exist within people or organizations thatprevent you from reaching your goals When you look straight at the truth andrealize your limitations, you will answer the question What are the weaknesses?from which to find a solution

1.2.2.3 Threats

What external factors are making it difficult for you on the road to success isthreats The following list of issues bottle help you find the risk that you or theorganization will face in the future:

Once you've found a threat, what you need to do is work out a resolution thatoften improves your management skills so you don't get overwhelmed by therisks Do you have a way of coping with these potential risks? If not, quicklyoutline and implement feasible ways to reduce the severity, or avoid (if possible)these risks

1.2.2.4 Opportunities

Opportunities are external environmental impacts that will make your business more convenient This agent may be:

+ The opponent is showing slow, weak, bad reputation

+ Global trend Contract, partner, investor

The standard for comparison is the norm of a period selected as a basis forcomparison, which may be:

The document of the previous year (previous period), to assess the developmenttrend of the targets The expected targets (plans, estimates, norms), to evaluatethe implementation situation compared to the plans, estimates, and norms

The criteria of the period compared with the base period are called performance targets and the results achieved by the enterprise * Conditions comparable

For meaningful comparisons, the prerequisite is that the criteria used must beidentical In fact, often comparable conditions of economic indicators need to bepaid more attention than time and space

+ In terms of time: are the norms calculated in the same accounting period must

be uniform on the following three aspects:

Must reflect the economic content together

-It must be the same analytical method

- Must be the same unit of measurement

+ In terms of space: the indicators need to be converted to the same size and similar business conditions

However, the reality is that there are few homogeneous indicators In order toensure consistency one needs to consider the extent to which an acceptabledegree of homogeneity is considered, the accuracy required, and the analyticaltime allowed

+ In terms of space: the indicators need to be converted to the same size and similar business conditions

However, the reality is that there are few homogeneous indicators In order toensure consistency one needs to consider the aspect that is considered to beacceptable homogeneity, the accuracy required, the time allowed for analysis

* Comparative technique

The basic comparison techniques are:

analysis period compared to the base period of economic indicators, thecomparison results show the volume of increase and decrease of economicphenomena

analysis period compared to the base period of economic indicators, results ofcomparison of expression of structure, relationship, development speed, thepopularity of economic phenomena

the general character in terms of quantity, to reflect the general characteristics of aunit, a part of a whole generic, have the same properties

The process of technical analysis of the comparative method is carried out in the following two forms:

- Vertical comparison: is the process of comparison to determine the correlationratio between the periodical indicators of financial-accounting reports, it is alsocalled vertical analysis (same column of the newspaper) fox)

- Horizontal comparison: is the process of comparing to determine the ratio andtrend of periods in financial statements, it is also called horizontal analysis (samerow on the report)

CHAPTER 2: THE CURRENT SITUATION OF BUSINESS PERFORMANCE IN THE COMPANY.

2.1 Introduction of the company

2.1.1 General information

2.1.2 Historical background of the company

Nissan Motor Co (NML) Japan and Tan Chong Motor Holdings Berhad(TCMH) Malaysia have a joint venture and founded Nissan Viet Nam (NVL)

An investment firm whose main activities include the import, assembly, anddistribution of Nissan vehicles in Malaysia, Myanmar, Laos, and Cambodia.June 2013, TCMH Group and Nissan Motor Japan opened a Nissan autoassembly factory in Danang called TCIE Viet Nam Total investment of up to

$40 million Nissan Sunny is the first model to be assembled in the modernfactory In addition to expanding its product portfolio, NVL is also working toestablish agency networks In 2010, Nissan had only 02 authorized dealers realrights across the country But so far, Nissan has distributed 25 agents throughoutVietnam

Nissan Lao Cai is "Nissan Vietnam's Standard 3S Dealer" including business(sales), service activities (service), Spare part (spare part) Nissan Lao Cai hasreached the international car sales and service standard Nissan Lao Cai officiallyoperated on 12/03/2014 Business license number: 5300674841 was issued on the

day, code Tax: 5300674841, Charter capital: 10 billion The company is based inthe City Lao Cai Branches in Lai Chau City The main activities of Nissan LaoCai include selling cars Genuine Nissan in Lao Cai and the North; providesecurity services high-quality professional maintenance, maintenance, andrepair; provided genuine Nissan auto parts The leading team at Nissan Lao Cai

is Top experts in the field of finance, economics and have Long experience in hisspecialty as well as experience in the business investment environment inVietnam Nissan Lao Cai customers are extremely diverse and plentiful, frommedium to high-achieving families to small, medium and small companies in theNorthern region of Vietnam (Nissan, 2020)

The company also invested in new modern equipment and constantly training,improving professional skills for its staff Despite being a newly formed anddeveloped enterprise, the company has gradually affirmed its position as well ascreating a great reputation in the automobile business market in Lao Caiprovince in particular and Vietnam in general With the motto "All for customersatisfaction", the company has made constant efforts in investing in newtechnology, modern facilities, and maximizing human resources Alwaysupholding the business reputation in the market, the company is sure to bring thehighest satisfaction with the best quality of service to customers

2.1.3 Function and field of company.

Nissan Lao Cai is a 3S dealer in the province of Lao Cai with a

professional and well-trained sales team

and other brand products

Nissan Lao Cai has a service workshop of up to 8,000 m2, with separatefunctional areas, along with the most modern machines and systems according to

Japanese standards Service capacity of up to 18 repair axes, ensuring continuousservice and shorten the waiting time of customers 2 complete and detailedpainting rooms, 9 painters trained at factory standards and Kansai paintcompany, 5 skilled and experienced painters over 10 years 2 repairmen groups

of 4 people each are trained according to the general standards of carmanufacturers and Nisan standards, using fluently the most modern equipment.The support staff is well-trained according to the international process, advisesand answers every customer inquiry

Supply genuine Nissan Lao Cai guarantees to supply genuine Nissanparts to customers who are servicing and repairing at service workshops

Service of the rescue of broken cars, accidents on public roads To contribute

to preventing traffic jams, pushing back accidents, limiting damage to carowners when vehicles encounter incidents Traffic rescue is a service thatrequires the provider to choose the right solution and advise the ambulance to thescene of a collision or traffic problems as quickly as possible

2.1.3.1 Organizational structure.

Diagram 1: Organizational structure

Company Director directly in charge of the area of the field:

- Business:

Deputy Director

The function of the Deputy Director is to help the Director manage andoperate the activities of the company and business as assigned by the Director.Besides, proactively deploying and performing the assigned tasks, beingresponsible to the Director for the operation results Set goals and policies fordepartment management

Human resource management: The work of a Deputy Director includesassigning, assigning personnel, supervising and managing resources by thecompany's regulations Also, training, evaluating and rewarding employees,participating in interviews and training new employees Lead and develophuman resources to meet their requirements, functions, and tasks

2.1.3.4 Management Department

personnel, dispatch, contracts, regulations applicable to the company Advice on how to organize departments and personnel according to the model company Planning recruitment and human resource development Store records, documents, important papers Drafting documents, resources

and sent to customers Welcome guests and partners Management of fixed assetsand maintenance of public assets The organization, management, and monitoring

of work related to the order self, fire protection, hygiene

2.1.3.5 Finance Department

and capture the rules tax, new tax policy to meet the regulations law Manage theinput and output costs of the company Be responsible for reporting the financialsituation of the company to the sponsor director upon request Keep up with yourfinancial situation and keep up with staff time for management to makedecisions Solve the regime of salary, bonus, maternity Revenue management,sales volume, debts, inventories, fixed assets Contract payment.

customers who pay for certain goods or services; keep records of payments made with cash registers or other electronic devices,

2.1.3.6 Sales department

Advise leadership on business strategies Build Making business plans, strategies

by month, quarter and year Monitoring and checking the quality of work andproducts of other departments to bring customers high-quality service Regularlyreporting on strategic situation and options replacement and how to partner withcustomers Research on marketing school, competitors Develop a PR andmarketing strategy for products by stages and target customers Develop a branddevelopment strategy

2.1.3.7 Customer support department

welcoming guests to car maintenance and care Schedule and remind customers.Company customer service Coordinate administrative office management Photodocuments, preparing documents for meetings

maintenance, repair, assembly Monitoring and inspection of technical standards, repair, and assembly parameters Performing work in automotive assembly,

maintenance and repair technology Use, competently and safely operate test

equipment in the automotive industry Organization and management of

production in the field of car maintenance and repair

the market prices assortment of materials and supplies for relevant departments Manage, preserving supplies and raw materials Material allocation, natural

resources materials according to the company's the production and business

needs Construction succession supplies procurement plan and supplies supply

2.1.4 Overview of the company’s financial situation

Nissan Lao Cai Company was established in 2015, during the last time thecompany has the following situation The company's market share declinedslightly, employees decrease significantly Comes with that, the profit tends todecrease In general, it can be seen that Nissan Lao Cai is a struggling business.These difficulties stem from many different factors

2.1.5 Factors that make the company difficult

Lao Cai is a border mountain province with a natural area of 6,357 km2,including 8 districts, 1 city, 164 communes, wards, and towns including 139extremely difficult communes, with 2,123 villages, hamlets and populationgroups city The province has 25 ethnic groups, with a population of over67,000 people, one of the provinces with the most difficult economic conditions

in the country Over the past years, thanks to the policy and attention of the Partycommittees and local authorities to the household economic development, thesocio-economic situation in the province has been achieved Positivedevelopment achievements The material and spiritual life of the people isconstantly being raised Annual poverty rate decreases from 5% - 8%, byDecember 31, 2016, the province's poverty rate is 27.41%, the proportion ofnear-poor households to 10.52%

According to the socio-economic development report in June 2019, onagricultural production in the first 6 months of the year, the total food output isestimated at 114,771 tons, reaching 35.3% of the plan Especially, in Lao Cai,the movement of building new rural areas continues to be positively responded

by people, notably the movement to build rural roads, in the whole province,over 40 km of road has been constructed

Industrial development also achieved high growth, industrial production value inJune was estimated at 2,826 billion dong and total social investment increased by12% over the same period

In the first two quarters of 2019, trade and service activities in Lao Cai provincealso developed stably, meeting consumer demand and serving production, totalretail sales of goods, and service revenue June crop is estimated at VND 2,078billion, up 12.9% over the same period Particularly in the field of tourism, LaoCai continues to grow quite well It is known that the number of tourists to LaoCai in June is estimated at 417 thousand, tourism revenue is estimated at 1,541.6billion, up 51.3% over the same period Notably, in the first 6 months, budgetrevenue in the province was estimated at VND 4,100 billion, up 8.4% over thesame period Also, the fields of culture, information, health, and social security

in the area have been paid attention to and been implemented effectively Inparticular, the border area but on national defense is always strengthened andmaintained, political security, social order and safety are guaranteed

The province's socio-economic situation in the first 6 months of 2019 still facesmany difficulties In Lao Cai province, during the last time, it was affected bynatural disasters due to tornadoes, flash floods, and prolonged hot weather,causing damage of over VND 70 billion Besides, the African swine choleraoutbreak has occurred in all 9/9 districts and cities and the situation has spreadrapidly Regarding the construction progress of some slow projects such as the

project of the expressway to Sa Pa; Sa Pa airport; Bat Xat amusement park;Functional zoning planning of border gate economic zones directly affectspeople's lives as well as impacts on the overall development of the province.

In terms of investment environment, in recent years, Lao Cai province hasalways been evaluated well compared to other provinces in the Northern midlandand mountainous areas, but according to the PCI assessment of the VietnamChamber of Commerce and Industry, in 2018 Although it increased, in rankdecreased compared with previous years, ranked 12/63 provinces and cities.Accordingly, to continue maintaining and improving PCI in 2019 as well as thefollowing years, local agencies and units have focused on promotingadministrative reform, implementing well the one-stop-shop model at thedepartments, branches, and districts of the city, creating convenience forindividuals and organizations to handle administrative procedures

As presented at the rationale, there are various methods for analysis However, Ihave chosen several methods below: Ratios, SWOT, comparison

2.2 Analyzing of using ratios

The current business situation of the company is mainly reflected in the

financial statements So I will focus on financial statement analysis Apply the analyzing of using the ratio method, I found the following result

2.2.1 Analyzing through balance sheet

The balance sheet of the company during period from 2016 to 2019 The balancesheet summarizes assets, equity, and liabilities of an organization or individual

at a specific time

Table 1: Balance Sheet

27

2016 2017 2018 2019 assets

2016 2017 2018 2019 Total

42,832,485,68 70,980,395,87 82,876,501,87 68,188,032,93 liabilities and

( Source: Financial report Truong Giang trading and service limited company)

Table 2: Percentage table of balance sheet

Taxes and other payables to

( Source: Financial report Truong Giang trading and service limited company)

The company's assets are the result of the process of allocating four sources to

serve production and business activities So the type of assets it depends on the

nature of the industry that the administrator will decide how much to hold in the

form of cash or machinery that allocation process will create a structure Asset

appropriate to the characteristics of each industry

Chart 1: Assets from 2016 to 2019

term assets increased 22,456 million VND, long- term assets have grown up 2,890

million VND) However, the number of total assets and current assets increased

from 2016 to 2018 then suddenly they declined in 2019 The reason for that was

inventoried increased from 2016 to 2018 and then decreased in 2019 Thereby, we

can see that the company’s assets structure changes in the direction

of rising the proportion of short-term assets and improving the proportion oflong-term assets.

Short- term receivable in 2019 increased compare with 2016 The increase inshort-term receivable due to the Company changes its sales policy, increase inshort-term receivables due to the Comapny changes its sales policy, increase theselling limit to customers to build relationships, especially long- term customers

or new but potential customers to become a long- term partner with thecompany The company needs to increase debt recovery more in 2020 to reducethe stagnant apital in the payment process as well as limit the capitalappropriation

Long-term assets are assets including fixed assets, investment properties, term financial investments and other long-term assets The company has tangiblefixed assets including showrooms, workshops, machinery and equipment Theanalysis shows that the company's long-term assets in 2019 increased by44.25% The increase in long-term assets is an increase in other long-term assets,

long-in addition to capital decrease This is very beneficial for the company

Inventory reflects the company's inventory management efficiency, the greaterthe ratio, the higher the inventory management efficiency Inventories in 2019increased by 77% compared to 2016 But it can also be seen that inventories in

2019 have decreased by 26.05% compared to 2018

Cash and cash equivalents have the biggest reduction The reason for this wasthat the company have been paid debt in before terms The company’s cash andcash equivalents decreased due to excessive stockpiling of cash, decreased by72.6% , resulting in a loss of business opportunities when the companymaintained a large amount of cash on hand

Current assets are low value, short use time within 12 months or 1 normalbusiness cycle of the business and often change the form of value during use Inenterprises, short-term assets include cash and cash equivalents, short-termreceivable, inventories, other current assets Current assets fluctuated between

2016 and 2019 It increased significantly from 2016 to 2018 and went down from

2018 to 2019 It rose by 59.19% compared with 2016 The reason for that was all

of the factors influence to current asset had to change the same trend That was

an increase from 2016 to 2018 then decrease in 2019 The economy of Lao CaiProvince has been steadily developing from 2016 to 2019, but in 2019 due toNissan's problems with the transfer Specifically, in early 2019, former ChairmanCarlos Ghosn illegally received a 7.8 million euro (206 billion) from a jointventure between Nissan Motor and Edaran Tan Chong Motor, so the companydecided to transfer Nissan in Vietnam, not through intermediaries Tan Chonganymore but directly the company in Japan in late 2018 However, in September

2019, it was decided that Tan Chong continued to cooperate with Nissan Motorfor another year to come to the end of September 2020 This greatly affectsNissan Lao Cai because of legal issues, unsold goods were not promptly solved

Chart 2: Short-term loans and debts from 2016 to 2019

( Source: analysis accumulated and calculated)

In addition to considering the use of capital, the understanding and analysis ofcapital sources will help investors, the board of directors see the financialcapability, level of autonomy and initiative in operation business activities aswell as difficulties that the company will encounter to make timely adjustments.Through the above analysis, we see that the debt over 4 years increased steadily,

in 2019 increased by 31.28% compared to 2016, in which due to the increase ofshort-term debt, and long-term debt until 2019 the company has no more debts

The ratio of liabilities increased compared to the previous year, but the overallscale did not increase significantly, which showed that the company wasproactive in capital sources to promptly pay short-term debts in the year Thecompany has actively cooperated with other banks to handle loans.

2.2.2 Analyzing through income statement

The income statement is a general report of the company, as it reflects all theproduction and business activity of the company according to its main activities,

as well as other ancillary activities it also revealed the profit and loss situation,thus helping the Board of Directors to grasp the company's operations, promptlyadjust the company's operations to the most advantageous

The income statement of production and business activities of the companyreflects the criteria related to the turnover, expenses of production and businessactivities as well as the results of production and business activities of theenterprise

- The production and business results table must be based on the following documents:

+ Invoice: Invoice must be accompanied by a delivery note for the finished goods, purchase orders

+ Monthly (or annual) sales report: must be submitted and signed by the general accountant and the director

+ Types of expenses (sales expenses, operating management expenses, ) arebased on cash receipts and payments for bank reconciliation of thecorresponding expense items

+ Grasping the current CIT: Depending on the time, CIT will have different tax

(year) This is often the top concern of investors because it shows the profit(loss) of the enterprise, the tax payable by the state.

In the income statement, we must calculate the correct expenses, income (such assales of scrap, grants, other aid ) The income statement of the company, thecompany's revenue mainly comes from auto sales, repair, and maintenance ofcars the income statement of the company is a general report reflecting thesituation and results of the business activities of each enterprise In each of thesecategories, we see information on the use of capital, business methods of thecompany, thereby helping us to know how much the company earns

Table 3: Income statement

Current 0 85,702,907 124,842,028

37

( Source: Financial report Truong Giang trading and service limited company)

Table 4: Percentage table of income statement

Unit: VND

Sale revenueLess: DeductionNet revenue from good sold and services

rendered