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

This method helps the thesis answer the question of how price transfer forms are taking place at multinational companies' branches in Vietnam as well as in the world; ways in which advan

INTRODUCTION

1.The urgency of the research subject

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

in Vietnam and high economic growth, the development prospects of the industry 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, and information about the company is still ambiguous in the market That is why I

am making this report with the aim of improving and providing information about the Nissan Lao Cai Moreover, the report also shows part of the process of analysis 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 the various 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, and causes 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 on objective phenomena and socio-economic rules At the same time, student use a combination 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 to collect primary and secondary documents These are the financial statements of several multinational companies in Vietnam; reports on inspection results of multinational company branches of the General Department of Taxation and Tax Departments in some localities; some conclusions of inspection of violations of tax 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 and Investment, the General Statistics Office, the General Department of Taxation and tax authorities in some localities Along with that are projects, scientific research projects at many levels, the master's thesis in economics, scientific articles in country and abroad related to multinational companies, multinational corporate finance and transfer pricing Students have processed the information from these documents to achieve the following objectives:

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

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

 Present conclusions and research results of the thesis according to my own approach

b) Analysis method

The analytical method is used to analyze the data related to the problems of buying and selling financial and non-financial goods, products and services (internal transfer activities) of MNC's branches in Vietnam with the parent company as well as with the related parties In addition, the method is used in analyzing the forms and processes that a multinational company branch implements to carry out transfer pricing activities The thesis has analyzed some data to see the impact of transfer pricing in multinational company branches in Vietnam, 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 publicly available information and data, many of the documents provided by the authorities are internal documents and have not been published, Some documents contain information that is considered as an asset owned by an enterprise with a limit of users, Some documents have a security nature at the present time, so in the process of using, students are asked not to publicly make clear the source and name of the business and the name of the multinational companies or the parties have an related relationship But I can confirm that the documents have clear

origin, high reliability and are provided by competent authorities in accordance with 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 Vietnam with the provisions of some international organizations such as the United Nations or OECD as well as some other countries on the direct investment policy, tax policy, internal transfer pricing methods as well as other related issues

At the same time, the comparative method is also used to compare and analyze the changes in regulations on price transfer control in Vietnam through periods and 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 as well 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 of some countries

This method helps the thesis answer the question of how price transfer forms are taking place at multinational companies' branches in Vietnam as well as in the world; ways in which advanced countries as well as countries with conditions similar to Vietnam respond to transfer pricing activities At the same time, the case study method also allows me to select typical cases, typical transfer pricing questions as evidence for transfer pricing in multinational company branches in Vietnam

e) Secondary data collection method

Due to the nature of the data and research materials, I could not directly investigate the actual data but use the survey results (secondary data) of some authorities as well as specialist research teams The results of these surveys are used appropriately to increase the reliability of the thesis points

Specifically, the thesis has used the research results: The survey results of the General Department of Taxation; Survey results of the Tax Department in some localities; Survey results of expert group from City University of Economics Ho Chi 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 Giang Company, helping the company to understand the financial situation of the company Managers can consider marketing planning and find appropriate directions 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 business activities, to provide products or services that satisfy the needs of the market and earn a certain profit for itself Through the concept of production and business activities, we can only see that it is only a basic economic category and the efficiency of production and business is an economic category expressing the focus of development in depth, It reflects the level of exploitation of resources and the level of cost of such resources in the reproduction process to achieve the business goals of the enterprise This is an important measure of economic growth 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 the process of using elements in the manufacturing process

In a market economy, businesses must compete fiercely in using resources to meet the increasing needs of society Enterprises operating in the market mechanism to win the competition must put economic efficiency first, so they must 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 That will bring business efficiency to the business If businesses with low, business efficiency will be excluded from the market, and businesses with high economic efficiency 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 into subjective and objective factors, subjective factors as factors belonging to the enterprise itself control or adjust it, the objective factors are factoring that businesses can not adjust and control

1.1.2.1 The objective factors

Factors that cannot be controlled by the enterprise, constantly affect the business activities of the enterprise in different trends, creating both opportunities, and limiting the ability to realize the goals of the business Business operations require a regular understanding of these factors, their operating trends, and their impact 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 all businesses 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 its advocacy trends

1.1.2.1.1 Political and legal factors:

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

The level of political and legal stability of A country that allows businesses to assess 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 when businesses 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 factors affecting purchasing power, changes in consumer demand or development trends

of industries, and economic factors include:

+ Foreign trade activities: Opening and closing trends of the economy influencing 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 the economy related to the ability to expand or narrow the business size of each enterprise

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 allows businesses to understand at different levels of the target audience so that they can choose the appropriate business methods Income influences the choice of product type and quality social and professional response affects the perspective and ways of behaving in the market, ethnic factors, a culture that reflects the views and ways of using the product, it just requires to meet the unique situation and 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 and business cycle in the region, or affect the goods storage and preservation activities For technical infrastructure, the conditions for production and business, on the one hand, create a basis for business facilitation when exploiting the existing infrastructure of the economy, on the other hand, it can also cause limiting the ability to invest, develop business especially with commercial enterprises in the process of transporting, preserving, distributing

1.1.2.1.6 Customer factors:

Customers are those who have the demand and ability to pay on goods goods and services that businesses do Customers are an important factor in determining 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 that reflects their shopping process Therefore, enterprises must have policies to meet the 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 reflects the real power of businesses in the market, appreciating the potential that allows businesses to build the right business strategy and plan while taking advantage of highly effective business opportunities

Factors of the potential of the enterprise include: Financial strength, human potential, intangible assets, management and organization level, technology equipment level, infrastructure, right Prospects of business objectives and control over the implementation of the target

+ Financial strength reflected on the total capital (including equity, mobilized capital) mad enterprises can mobilize business activities, the ability to effectively manage the capital resources in the business Financial strength is reflected in the ability to pay the short-term, long-term debt, profitability ratios of businesses + Potential of people: Demonstrated in knowledge and experience capable of 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 business opportunities

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

+ The geographical location and facilities of the enterprise allow the enterprise to attract customers' attention, convenient for providing purchasing or performing reserve activities The technical and material basis of the enterprise represents the fixed assets that the enterprise mobilizes into the business including office buildings, specialized equipment That shows the strength of the enterprise, the size 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 factors play a vital role that a comparison of 2 organizations from varied industries

might be ambiguous

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

Ratio analysis shows the associations between prior data while users are more concerned 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 inside and outside the organization that can positively or negatively affect the goals set

by the business In developing a strategic plan, SWOT analysis serves as the most basic, highly effective tool to help you have an overview not only of the business 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 These must be the dominant and unique characteristics that you hold when compared to your competitors Answer the question: What do you do best and best? What internal resources do you have? How do you own advantage of people, knowledge, reputation, skills, relationships, technology ? Here are a few areas that you can use as a basis for you to find your strengths:

+ Resources, assets, people

+ Experience, knowledge, data

+ Process, technical system

+ Inheritance, culture, administratin

1.2.2.2 Weakness

Most understandably, the weak points are the things you do not work well If you feel awkward, the easiest way to find your weak point is to look back on the areas 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 that prevent you from reaching your goals When you look straight at the truth and realize 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 is threats The following list of issues bottle help you find the risk that you or the organization will face in the future:

Once you've found a threat, what you need to do is work out a resolution that often improves your management skills so you don't get overwhelmed by the risks Do you have a way of coping with these potential risks? If not, quickly outline 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 development and bloom of the market

+ The opponent is showing slow, weak, bad reputation

+ Technology trends change

+ Global trend Contract, partner, investor

+ Season, weather

+ Policy, law

1.2.3 Comparative method

The comparative method is a commonly used method in analyzing business

activities There are three basic principles when using this method:

* Select criteria for comparison

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

The document of the previous year (previous period), to assess the development trend of the targets The expected targets (plans, estimates, norms), to evaluate the 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 be identical In fact, often comparable conditions of economic indicators need to be paid 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 to ensure consistency one needs to consider the extent to which an acceptable degree of homogeneity is considered, the accuracy required, and the analytical time 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 to ensure consistency one needs to consider the aspect that is considered to be acceptable homogeneity, the accuracy required, the time allowed for analysis

* Comparative technique

The basic comparison techniques are:

+ Comparison by absolute number: is the difference between the value of the analysis period compared to the base period of economic indicators, the comparison results show the volume of increase and decrease of economic phenomena

+ Comparative numerical comparison: is the quotient between the value of the analysis period compared to the base period of economic indicators, results of comparison of expression of structure, relationship, development speed, the popularity of economic phenomena

+ Compare by average: average is a special form of absolute number, showing the general character in terms of quantity, to reflect the general characteristics of

a unit, 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 correlation ratio between the periodical indicators of financial-accounting reports, it is also called vertical analysis (same column of the newspaper) fox)

- Horizontal comparison: is the process of comparing to determine the ratio and trend of periods in financial statements, it is also called horizontal analysis (same row 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

Company name : Truong Giang trading and service limited company

Address : 111 Nhac Son Street, Coc Leu District, Lao Cai, Viet Nam

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, and distribution of Nissan vehicles in Malaysia, Myanmar, Laos, and Cambodia June 2013, TCMH Group and Nissan Motor Japan opened a Nissan auto assembly 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 modern factory In addition to expanding its product portfolio, NVL is also working to establish agency networks In 2010, Nissan had only 02 authorized dealers real rights across the country But so far, Nissan has distributed 25 agents throughout Vietnam

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

day, code Tax: 5300674841, Charter capital: 10 billion The company is based in the City Lao Cai Branches in Lai Chau City The main activities of Nissan Lao Cai include selling cars Genuine Nissan in Lao Cai and the North; provide security services high-quality professional maintenance, maintenance, and repair; 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 his specialty as well as experience in the business investment environment in Vietnam Nissan Lao Cai customers are extremely diverse and plentiful, from medium to high-achieving families to small, medium and small companies in the Northern 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 and developed enterprise, the company has gradually affirmed its position as well as creating a great reputation in the automobile business market in Lao Cai province in particular and Vietnam in general With the motto "All for customer satisfaction", the company has made constant efforts in investing in new technology, modern facilities, and maximizing human resources Always upholding the business reputation in the market, the company is sure to bring the highest satisfaction with the best quality of service to customers

2.1.3 Function and field of company

 Trading in genuine Nissan vehicles

Nissan Lao Cai is a 3S dealer in the province of Lao Cai with a professional and well-trained sales team

 Service of installing, repairing, maintaining and maintaining Nissan and other brand products

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

Japanese standards Service capacity of up to 18 repair axes, ensuring continuous service and shorten the waiting time of customers 2 complete and detailed painting rooms, 9 painters trained at factory standards and Kansai paint company, 5 skilled and experienced painters over 10 years 2 repairmen groups

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

 Supply genuine Nissan Auto Parts

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

 Traffic rescue service

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

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

2.1.3.1 Organizational structure

Diagram 1: Organizational structure

2.1.3.2 Director

General manager be the legal representative of the company Take overall responsibility and be responsible to the Corporation and the Law for all executive activities of the company

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

- Organization - Human Resources; Emulation of Commendation and discipline

Finance Department

- Business:

+ Short-term, long-term plans and business strategies

+ Scale and mode of market development investment

+ Signing economic contracts to buy and sell goods and services

2.1.3.3 Deputy Director

The function of the Deputy Director is to help the Director manage and operate the activities of the company and business as assigned by the Director Besides, proactively deploying and performing the assigned tasks, being responsible to the Director for the operation results Set goals and policies for department management

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

2.1.3.4 Management Department

 Human resources: Advise the company leadership on related issues 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

 Public Administration: Administrative documents circulated internally and sent to customers Welcome guests and partners Management of fixed assets and 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

 Accountant: Building an accounting system of the enterprise Update

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

 Cashier: The cashier is obliged to receive money or credit cards from 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 and products of other departments to bring customers high-quality service Regularly reporting on strategic situation and options replacement and how to partner with customers Research on marketing school, competitors Develop a PR and marketing strategy for products by stages and target customers Develop a brand development strategy

2.1.3.7 Customer support department

 Front desk: The front desk is responsible for front desk reception and welcoming guests to car maintenance and care Schedule and remind customers Company customer service Coordinate administrative office management Photo documents, preparing documents for meetings

 Maintenance: Planning in the field of automotive specialties such as 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

 Spare parts: Having the function of providing economic information, 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 the company has the following situation The company's market share declined slightly, employees decrease significantly Comes with that, the profit tends to decrease 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 139 extremely difficult communes, with 2,123 villages, hamlets and population groups city The province has 25 ethnic groups, with a population of over 67,000 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 Party committees and local authorities to the household economic development, the socio-economic situation in the province has been achieved Positive development achievements The material and spiritual life of the people is constantly being raised Annual poverty rate decreases from 5% - 8%, by December 31, 2016, the province's poverty rate is 27.41%, the proportion of near-poor households to 10.52%

According to the socio-economic development report in June 2019, on agricultural production in the first 6 months of the year, the total food output is estimated 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 in June was estimated at 2,826 billion dong and total social investment increased by 12% over the same period

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

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

The province's socio-economic situation in the first 6 months of 2019 still faces many difficulties In Lao Cai province, during the last time, it was affected by natural disasters due to tornadoes, flash floods, and prolonged hot weather, causing damage of over VND 70 billion Besides, the African swine cholera outbreak has occurred in all 9/9 districts and cities and the situation has spread rapidly 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 affects people's lives as well as impacts on the overall development of the province

In terms of investment environment, in recent years, Lao Cai province has always been evaluated well compared to other provinces in the Northern midland and mountainous areas, but according to the PCI assessment of the Vietnam Chamber of Commerce and Industry, in 2018 Although it increased, in rank decreased compared with previous years, ranked 12/63 provinces and cities Accordingly, to continue maintaining and improving PCI in 2019 as well as the following years, local agencies and units have focused on promoting administrative reform, implementing well the one-stop-shop model at the departments, branches, and districts of the city, creating convenience for individuals and organizations to handle administrative procedures

As presented at the rationale, there are various methods for analysis However, I have 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 balance sheet summarizes assets, equity, and liabilities of an organization or individual at

a specific time

Table 1: Balance Sheet

2016 2017 2018 2019 assets

depreciation -142,679,405 -775,279,951

1,552,257,917

2,460,336,386

d profits 4,408,518,824 7,222,254,891 8,848,510,130

11,681,601,88

5

2016 2017 2018 2019 Total

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

Unit: VND

( Source: analysis accumulated and calculated) Total assets of 2019 compared to 2016 increased to 25,355 million VND ( short 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

0 10,000,000,000

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

long-term assets

Short- term receivable in 2019 increased compare with 2016 The increase

in short-term receivable due to the Company changes its sales policy, increase in

short-term receivables due to the Comapny changes its sales policy, increase the

selling limit to customers to build relationships, especially long- term customers

or new but potential customers to become a long- term partner with the

company The company needs to increase debt recovery more in 2020 to reduce

the stagnant apital in the payment process as well as limit the capital

appropriation

Long-term assets are assets including fixed assets, investment properties,

long-term financial investments and other long-long-term assets The company has tangible

fixed assets including showrooms, workshops, machinery and equipment The

analysis shows that the company's long-term assets in 2019 increased by

44.25% The increase in long-term assets is an increase in other long-term assets,

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

Inventory reflects the company's inventory management efficiency, the greater

the ratio, the higher the inventory management efficiency Inventories in 2019

increased 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 was

that the company have been paid debt in before terms The company’s cash and

cash equivalents decreased due to excessive stockpiling of cash, decreased by

72.6% , resulting in a loss of business opportunities when the company

maintained a large amount of cash on hand

Current assets are low value, short use time within 12 months or 1 normal business cycle of the business and often change the form of value during use In enterprises, short-term assets include cash and cash equivalents, short-term receivable, 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 Cai Province has been steadily developing from 2016 to 2019, but in 2019 due to Nissan's problems with the transfer Specifically, in early 2019, former Chairman Carlos Ghosn illegally received a 7.8 million euro (206 billion) from a joint venture between Nissan Motor and Edaran Tan Chong Motor, so the company decided to transfer Nissan in Vietnam, not through intermediaries Tan Chong anymore but directly the company in Japan in late 2018 However, in September 2019, it was decided that Tan Chong continued to cooperate with Nissan Motor for another year to come to the end of September 2020 This greatly affects Nissan Lao Cai because of legal issues, unsold goods were not promptly solved

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

Unit: VND

( Source: analysis accumulated and calculated)

In addition to considering the use of capital, the understanding and analysis of capital sources will help investors, the board of directors see the financial capability, level of autonomy and initiative in operation business activities as well 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 of short-term debt, and long-term debt until 2019 the company has no more debts

0 10,000,000,000

The ratio of liabilities increased compared to the previous year, but the overall scale did not increase significantly, which showed that the company was proactive in capital sources to promptly pay short-term debts in the year The company 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 the production 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, promptly adjust the company's operations to the most advantageous

The income statement of production and business activities of the company reflects the criteria related to the turnover, expenses of production and business activities as well as the results of production and business activities of the enterprise

- 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, ) are based on cash receipts and payments for bank reconciliation of the corresponding expense items

+ Grasping the current CIT: Depending on the time, CIT will have different tax rates - The table of business results is the calculation of the profit of that month

(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 as sales of scrap, grants, other aid ) The income statement of the company, the company's revenue mainly comes from auto sales, repair, and maintenance of cars the income statement of the company is a general report reflecting the situation and results of the business activities of each enterprise In each of these categories, we see information on the use of capital, business methods of the company, thereby helping us to know how much the company earns

Table 3: Income statement

profit

3,082,315,21

5 2,857,444,429 1,527,346,366 2,496,840,555 Other

income 875,420,657 880,909,092 186,711,780 336,251,200 Other