Group IV

VINASUNS ENTRY TO CAMBODIA

BUSINESS PLAN
1. INTRODUCTION
2. COMPANY
DESCRIPTION
3. MARKET
ANALYSIS
4. MARKETING/
SALES STRATEGY
5. R&D
6. STAFFING
& OPERATIONS
7. FINANCIAL
ANALYSIS
8. SOCIAL
BENEFITS
Part I. Introduction
1.Overview of taxi
industry
2.Main objectives
3.Contents
4. Data
5. Limitations
6. Methods
1. Overview of taxi industry
Vietnams taxi transportation sector in Ho Chi Minh City has
grown at an impressive 16% (CAGR) in terms of cab numbers
Company profile, external scanning and its market
position
Financial analysis
SWOT analysis
Two potential projects
3. Contents
2. Main objectives
We collect the data from financial statements of
Vinasun in the years:
2008, 2009, 2010, 2011 and 2012
4. Data
4. Data
5. Limitations
Some date is difficult to find or count, inadequate and not well-
proportioned.

Vinasun Corporation also does business on many other sectors
6. Methods
Financial analysis
solvency, stability, liquidity and profitability
SWOT analysis
strengths, weaknesses, opportunities, threats
Part II. Company Description
Company profile
External scanning
1. Company profile
A. History
Established in June 15, 1995
Initial charter capital of 300 million VND
Taxi business into operation since Jan 27, 2003
One of the 2 leaders in HCMC (50%), Binh Duong
(60%) and Dong Nai (50%)
Officially listed on the Hose in Mar, 2008
Charter capital of VND 170 billion.
Around 2,845 taxi at the end of December 2009
Taxi transportation with the brand-name Taxi
Vinasun
Travel, air travel with the brand-name Vinasun
Travel
Restaurants, food and beverage
Real estate
2. External scanning
A. HCMCs Taxi Industry
16% CAGR in terms of cab
numbers, from 6,000 in 2005 to 12,550
as of May 2010.
Expected to maintain an average
growth rate of 10% annually 2010 -
2015
In terms of revenue per day,
VND 1.32m per day per
cab, 26% higher than
Mai Linhs VND
1.05m
CAGR
Compound Annual
Growth Rate
B. Supply and demand of VN market
Supply
In HCMC, taxis are a second means of public transportation
after bus.
May 2010, 36 enterprises and cooperatives 12,550 registered taxis
transporting 400,000 passengers per day.
2,000-3,000 illegal taxis
Generally, Vietnams roads are poor.
Despite new highway construction,
13.5% of the road network is considered to
be in good condition
Demand
rising petrol prices
unavoidable traffic jams
environmental pollution
Solid position in the market:
42%-market-share position in HCM,
60% market share in Dong Nai and
60% market share in Binh Duong
Top two sector players
(Mai Linh taxi is the main competitor of Vinasun)
The company plans to have around 1,000 new cabs per
year for the next three years
C. Market position
D. Major competitors
Over 10,000 registered taxis
and around 2,000 unlicensed
ones in HCMC.
VNS has more than 4,000 vehicles, 8000
employees and around 1,500 pick-up points in
Ho Chi Minh City, Binh Duong and Dong Nai
1. Target Market
2. Total Market
Valuation
3. Market Trends
Part III. Market Analysis
4. Profile of Competitors
5. Competitive Advantage
6. Benefits to Clients
1. Target Market
1. Target Market
- Capital city
- Total area: 678.46 km2
- Population: 1,501,725 (2012)
- Density: 2213/km2
- Gender Ratio Male: 47%, Female: 53%
- GDP per capita (PPP): 2400USD (2012)
- Investment of industrial investments in the whole country
- Transportation of the whole country
- Tourism 950,000 people/year
- Airport: Phnom Penh International Airport
950,000/Year
Market segmentation
The old: over 50 The children: under 18
Adults: 18-50
47%
53%
2. Total Market Valuation
3. Target Company revenue
USD 1,250,000 million per year
Approximately over 2 million people to serve
So
many
But
very
few
4. Market trend
High real income per capita
Large number of tourist annually
An international airport
Taxi is to be more popular in daily life
in Phnom Penh
5. Profile of Competitors
Premium Luxury Taxi 8%
Chettra
taxi
(14%)
Engligh and Khmer
speaking drivers
Vichet
taxi
(9%)
24 hours service
everyday
35%
Others
Low price, High quality
23%
Standard taxi
14%
6. Competitive Advantage
Reasonable
Competitive
and
Accurately calculated
PRICE
New technologies or systems
Qualified drivers
7. Benefits to Clients
Part IV. Marketing/ Sales strategies
1. Product and
marketing strategy
2. Sales and distribution
network
3. Pricing
4. Communications
Economic Development
Dominance of Tourism Industry
Faster and more reliable
transportation services
Limited routes, slow and inconvenient
buses and tuk-tuks
Product and Marketing
Strategies
Priority: International and domestic
tourists
Nearly 1 million foreign
visitors/year
Financially capable
High demand
Current taxi brands:
Unprofessional
Discourteous
Premium quality at medium price
Innovative and forward thinking
Emphasis on customer service
Value proposition lies in promptness
Positioning
Target market
Competition
Implementation
Implement meter system
Diversify payment methods
Zoned taxi dispatch system
1. First come/first served system of dispatching
2. Speed up the entire system
Purchase hot pick-up spots:
1. International airport, hotels, restaurants, bars and tourist
attraction sights
Training costs reduced through apprenticeship programs
Monthly inspection of vehicles
Sales and
Distribution
Direct
Convenience for customers is the key point
Utilize three more sales channels including online sales via website,
shop-at-home television shows and mail order catalogs
Indirect
Sales agents
Revenue sharing partners
Pricing
Category Quantity Cost/unit Total
Salary
Taxi drivers 50 VND 5 million
Supporting Staff 20 VND 3 million
Administrators 3 VND 3 million
Security 2 VND 2 million
Maintenance
& Insurance
VND 100 million
Petrol
VND 50 million/
month
Total
Investment
VND 50 billion
Cost-plus Pricing
Value-based Pricing
Public Taxi Motorcycle
Trailers/Remorks/T
uk-tuks
Metered Taxi Unmetered Taxi
Characteristics
Global Taxi, Trans-
choice Taxi and Taxi
Association offer
on-call 24/7 taxi
service
and are generally
available only on-
call
More common are
unmarked,
unmetered taxis,
usually Camry,
which can be
arranged through
hotels or travel
agents
Prices vary
depending on the
number of
passengers and
where you pick up
the Tuktuk.

Pricing
Starts at 4000 Riel
(1 USD) for 2
kilometers. Then
400 Riel (0.1 USD)
per 200 meters
Usually cost 25-35
USD per day and
a minimum of 4-5
USD for short trips
Cost around 2-4
USD for short trips
and 13-15 USD for
the whole day
around
the city centre
3000Riel (0.75 USD) for the first 2 kilometers, then 300 Riel (0.075
USD) per 200 meters
Public relations
Charity
Employee encouragement
Entertainment and social PR
Advertising
Newspapers, outdoor banners and
the Internet
Promotion
Affiliate marketing
Direct mailings
Facebook and TripAdvisor promotion
Offline promotion
Personal contact with customers
Long-term relationship with firms and
companies on regular and low-price
basis
Part V. Research and Development
1. Technology Roadmap
2. Research and Development
3. Technical Partners
4. IP, Patents, Copyrights, Brands
Year 2014: Buying whole new cabs
Maintenance: Each year
Repairs: if necessary
Replacement: Each 5 years if any cars is not up to standard
Remote instruction and notification: Through switchboard
Technology Roadmap
Research and Development
Build a customer-care deparment (quality-control) that shall be in direct
contact with customers to solve any complaints, reflections or other
problems.

Carry out market research by online surveys, direct questionnaires and
interviews each year to know the assessment of customers.

After 5 operating years, we are to expand our services to rent cars for private
travel
IP, Patents, Copyrights, Brands
Technical Partners
Cam Auto Repair - Car Repair and
Maintenance - Garage services
No. 220, St. 122, 12156 Phom Penh,
Cambodia
Part VI. Staffing and Operation
1. Management
(including Board)
Organization Chart
2. Staffing
1. Training Plans
2. Operations
1. Management (including Board) Organisation
Chart
Board of
Directors
(Vietnam)
HR
Department
Marketing
Department
Finance
Department
Customer
Care
Department
General
Director
(Cambodia)
2. Staffing
50 Qualified drivers:
- English & Khmer speaking
- Male
- Standard driving license
- Morality
- No previous conviction
- Good-looking
- Physically and mentally healthy
20 Officers answering
phonecalls from customers
3 Experienced accountants
2 Marketing
experts
A short-term English course for Cambodian employees
Customer relationship: How to treat customers the best
Problem solving: real-life problems and circumstances and
give instructions
Training Plans
One month before launching services on
the market
Operations
Headquarter: Vietnam
Office: Phnom Penh,
Cambodia
Equipment: Metered
cars, telephones,
computers, printers, etc.
Infrastructure: Office
buildings in Phnom
Penh
Part VII. Financial Analysis
Current financial situation
1. Financial structure:
Liability and Equity
2. Liquidity ratios
3. Asset Turn Over
ratios
4. Debt ratios
5. Profitability ratios
6. Market value ratios
1. Debt-to-Equity ratio (H1)
Liabilities Equity H1
2008 408,164,216,027 532,683,294,969 0.77
2009 597,556,474,847 712,058,985,725 0.84
2010 906,539,072,128 819,573,429,619 1.11
2011 924,224,759,679 855,867,573,557 1.08
2012 841,833,361,734 936,132,304,116 0.90
2013
858,197,948,769 1,153,446,987,822 0.74
H1 indicates the level of financial autonomy of a firm
0.74 in 2013 represents a decreased dependence on long
term debts of Vinasun
healthier financial position lower H1
2. Liquidity ratios
tells us whether the current assets are enough to settle current liabilities
Current Assets Current liabilities H2
2008 61,445,995,800 67,640,359,737 0.91
2009 136,190,333,628 48,772,140,953 2.79
2010 188,049,791,229 186,200,213,895 1.01
2011 206,499,021,517 170,878,700,632 1.21
2012 203,883,317,462 177,606,715,087 1.15
2013
406,857,514,505 763,038,173,771 0.53
Current ratio (H2)
2008 2012, Vinasun is in safe and sound functioning
2013, problems in meeting demand on payments of short term loans
the approximate amount of
time that it takes for a
business to
receive payments
owed,
in terms of receivables, from
its customers and clients
A, Average collection period (H3)
3. Asset Turn Over ratios
Account receivable Average sales per day H3
2008 218,324,859,596 5,725,049,577 38.14
2009 3,732,896,540 519,889,752 7.18
2010 347,991,712,382 7,616,069,856 45.70
2011 398,956,980,610 8,448,659,059 47.22
Account receivable Average sales per day H3
2008 17,554,001,550 2,268,930,811 7.737
2009 22,518,738,652 2,927,678,397 7.692
2010 46,227,623,796 4,497,295,174 10.279
2011 49,394,473,998 6,231,035,476 7.927
2012 55,503,477,827 7,433,728,605 7.466
2013
162,963,097,759 8,652,219,178 18.835
Vinasun Corporation
Mai Linh Group
=> Average collection period of Vinasun is relatively low in
comparison with Mai Linh
Total Asset Turnover (H4)
Vinasun is generating more and more
sales from its assets
0.88
0.82
0.26
1.32
1.52
1.57
0
0.5
1
1.5
2
2008 2009 2010 2011 2012 2013
Total assets turnover
H4
4. Debt ratios
Time interest earned ratio (H5)
EBIT Interest Expense H5
2008 114.640.169.386 36.584.694.169 3,13
2009 180.322.817.526 36.502.111.477 4,94
2010 321.133.080.699 80.383.133.473 4,00
2011 302.729.363.506 124.736.616.068 2,43
2012 316.889.928.463 112.890.048.568 2,81
2013
368,005,756,609 65,959,185,078 5.58
the ratio is always higher than 2.00, which means that
the firms ability to pay off its cost of capital is very
HIGH
0.06
0.08
0.1
0.07
0.09
0.11
0
0.05
0.1
0.15
ROA (VNS)
H6
0.0276
0.0085
0.0131
0.0361
0.00
0.01
0.02
0.03
0.04
2008 2009 2010 2011
ROA (MAI LINH)
ROA
5. Profitability
Ratios
ROA (Return to
Asset) (H6)
Earning to
Share (H7)
-50.00%
0.00%
50.00%
100.00%
2009 2010 2011 2012 2013
% EPS growth(VNS)
% EPS growth
-63.31%
27.94%
197.32%
-100%
0%
100%
200%
300%
2009 2010 2011
% EPS growth (MAI LINH)
% EPS
growth
6. Market value ratios
A, P/E ratio (Price to earnings ratio) (H8)
7
5
6.7
5.9
0
2
4
6
8
2009 2010 2011 2012
P/E ratio
P/E ratio
the P/E ratio in 2009 was 7, then fluctuated around 6 for the rest of
time, which is relatively high and generally a good sign for
stock holders, especially when considering the effect of global
economic crisis in the present
B, M/B multiples (Market to book ratio)
(H9)
0.973536036
1.154455446
1.388985849
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2009 2010 2011
M/B multiples
M/B multiples
M/B ratio >1, so evaluation process of Vinasun
is fairly accurate and updated
Project Cambodia
Assumptions:
The area of Phnom
Penh: 376km2
(ten times smaller than that of
Hanoi (3345 km2)).
50 new cabs
The salvage value :

of the value of the initial investment

in the tenth year
The estimated revenue in year 1:
VND 25 billion
Working capital: 15 billion VND
Growth rate:
40% in the revenue in the first 3 years
Part VIII. Social Benefits
Access to a variety of
community facilities and services
Impulse of the tourism
industry
THANK YOU FOR YOUR ATTENTION!
IF YOU HAVE ANY QUESTIONS, PLEASE
FEEL FREE TO ASK!