CBA Assignment: DESCRIPTION OF BAR BUSINESS PROJECT DANBAM

• Student’s Name: • Student’s ID: Bar Business Project • Class: DANBAM • Subject: Cost – Benefit Analysis - 2021 - SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness -*** - DESCRIPTION OF BAR BUSINESS PROJECT DANBAM Place: Hai Ba Trung, Ha Noi, Viet Nam Investor: Vingroup Joint Stock Company Hanoi, October 2021 Contents Part A: General Introduction I Investor introduction II Brief description of the project III Legal basis Part B: Overview Chapter I: Market Research I Macroeconomic II General information about the project III SWOT strategy analysis Chapter II: Project Location 10 I III Project geographical location 10 General comment 10 Part C: Danbam 11 Chapter I: A profitable project 11 I Objectives of the project 11 II Necessity of investment 11 III Investment project implementation time 11 IV Investment funds 12 Chapter II: Basic design planning solution 13 I Project grading determination 13 II Technical scale determination 13 III Services determination 13 IV Basic business requirements 13 V Planning solution 14 Chapter III: Marketing strategy development 18 I Product 18 II Pricing 19 III Staff 20 Chapter IV: Environmental impact assessment 22 I Legal basis 22 II Purpose of the environmental impact assessment report 22 1|Page III Environmental impact of the project 22 IV Measures to minimize adverse impacts, prevent and respond to environmental incidents 24 V Commitment to take measures to protect the environment 24 Chapter V: Management apparatus and personnel organization 25 I Management apparatus diagram 25 II Human resources needs 25 Chapter VI: Total project investment 26 I Purpose of setting up total investment 26 II Basis for making total investment 26 III Content 27 IV Result of total investment 28 Chapter VII: Investment capital of the project 29 I Investment capital of the project 29 II Calculating the cost of the project 32 Chapter VIII: Economic - financial efficiency 34 I Economic assumptions and calculations 34 II Project revenue 34 III Cash flow statement 36 IV Evaluation of socio-economic efficiency 37 Part D: Conclusion 38 2|Page Part A: General Introduction I • • • • • • • • • • Investor introduction Company name: Vingroup Joint Stock Company Enterprise identification number: 0101245486 Dated: 3rd May, 2002 Issued by: Hanoi Department of Planning and Investment Authorized capital: 34,447,690,560,000 Dong Company headquarters: Vinhomes Riverside ecological urban area, Viet Hung ward, Long Bien district, Hanoi Phone: (84 24) 3974 9999 Fax: (84 24) 3974 8888 Business sectors: Real estate business (Main) Legal representative: Nguyen Viet Quang Position: Vice Chairman of the Board of Directors II • • • • • • • Brief description of the project Preliminary information Project Name: Danbam Le Théâtre Investment location: Hai Ba Trung, Ha Noi, Viet Nam Investment form: Economic organization establishment Bar information Type: Bar (Foreign alcohol club) Attachment service: Café, Fastfood, Non-alcoholic drinks Usable are: 86.85 m2 Construction area: 173.7 m2 (Including storeys) III Legal basis • Danbam Le Théâtre - Decree 103/2009/ND-CP promulgating the Regulation on cultural activities and business in public cultural services - Directive 17/2005/CT-TTg dated May 25, 2005 of the Prime Minister on the rectification of negative activities in bars, karaoke restaurants and discos - Ensure security and order conditions specified in Article of Decree 08/2001/ND-CP dated February 22, 2001 of the Government stipulating security and order conditions for a number of branches, conditional business 3|Page Part B: Overview Chapter I: Market Research I Macroeconomic Demographic environment There is a significant increase in the number of young people studying and working in big cities The number of students from "Bach-Kinh-Xay" area is climbing rapidly ➔ High demand of Food and Beverage brands surround the area Ecological environment Due to the essence of the business, waste count can be insignificant, therefore not many environmental issues are directly correlated with the operation of Danbam Economic environment • The Vietnamese economy has been hit hard by the ongoing COVID-19 pandemic but has shown remarkable resilience The pandemic hit Vietnam’s economy hard where GDP fell to 3.8 % in the first quarter of 2020 as compared to 6.8 % in the same period the previous year Nevertheless, Vietnam fought the pandemic early by timely solutions and policies Despite the pandemic, the Asian Development Bank (ADB) has forecast a 2.3 % growth for Vietnam for 2020, with the economy set to bounce back to 6.1 % in 2021, provided the pandemic is contained • The food and beverage market are stable: The food and beverage market has great potential for development despite the difficulties caused by the COVID-19 pandemic, according to experts The growth rate of this market is forecasted to reach from 5-6% annually in 2020-2025 Political environment • Food and Beverages Restriction in Vietnam 4|Page Depending on their categories, Food and Beverages are controlled and regulated by separate ministries in Vietnam: Ministry of Industry and Trade (MOIT), Ministry of Health (MOH), and Ministry of Agriculture and Rural Development (MARD) Through this product registration, business owners will get a Certificate of Conformity Declaration (CCD) Then, they can import their food and beverages to the Vietnamese market for sales and distribution • Safety and Hygiene of Food and Beverage Product in Vietnam Businesses of Food and Beverage products must obtain the Certificate on Satisfaction of Standards on food hygiene and safety The safety and hygiene standards apply to many things They include processors, equipment, importers, workshops or stores, production premises, storage and warehouse, sales and distribution premises Socio-cultural environment • Social financial perspective The majority of students occupying the Bach-Kinh-Xay area are under limited financial supply ➔ Lavish, ‘high-ended’ pubs and bars are not typically considered as an option Consequently, there is an unsatisfied demand for average-priced, ‘middle-end’ alcoholic services among the youth • Rising cultural trends The socio-cultural environment of younger generations, which possesses a major proportion of the Bach-Kinh-Xay area, is experiencing waves of influences from foreign sources through social media ➔ Tendency to be open-minded and drawn towards foreign socio-cultural oriented features, and alcoholic beverages are among them Consequently, a sense of attraction towards such businesses can be found as alcoholic beverages are increasingly becoming more appealing for younger generations Technological environment Densely consist of youthful, interactive and technologically engaged inhabitants, the BachKinh-Xay area and its social and business activities are deeply influenced by the virtual 5|Page social platforms Thus, implementing technology into doing business is essential for Danbam • International influences International influences play a crucial role in defining trends and tendencies of the market, and forecasting trends is a key element of business success For the market segment of alcoholic beverages, this action is critically more important, as the business is essentially imported from foreign cultures • Closing customer-supplier gaps With the influence of technology, the concept of marketing has forever changed Thus, businesses have the ability reach out to potential target customers with great extends For Danbam, as the target customers of the business are mostly students of the Bach-KinhXay, which are heavily influenced by social media for their decisions, taking advantage of virtual platforms to reach and affect customers plays an essential role in marketing II General information about the project About Danbam Today, when the economy is growing, and people's quality of living is improving increasingly, people' s need is not only for food, clothes and shelter, but also for leisure Experiencing the 4th long outbreak of the epidemic with many events, Vietnam finally overcame and continued to rise to develop Seizing this ripe opportunity, it makes perfect sense to start a bar business when the government's economic stimulus policies are supporting the entertainment industry Danbam is a franchisor of Korean bars and became popular since the movie called “Itaewon Class” Danbam is being planned to bring this brand into Vietnam, particularly in the BachKinh-Xay area It will probably be the first bar in this area, which serves popular alcoholic drinks for students Market segmentation • Segmentation The first customer segment that the project targets is students ranging from 18 to 24 years old in BKX universitys area with low budgets and the second customer segment is the middle and upper-class people, adults from 25 – 50 years old with high incomes The products of the bar which will be served are low-price alcoholic drink brands such as Soju, Strongbow They are alcoholic drinks which are suitable for students to enjoy and 6|Page hang out with friends The Danbam also serves cocktails, mixed shots of strong wines such as Whiskey, Rum, Tequila, Cognac • Trends and behaviours According to Forbes, the speed of alcohol consumption in Vietnam in 2017 ranks first in the world On average, each Vietnamese consumes nearly liters of alcohol per year On a reseach of bar market, the bars operate individually and not have much interaction on social networks, so maybe this is an opportunity for Danbam to develop - - - Vietnamese young people increasingly prefer the open-minded lifestyles from Korean and Western countries → Demand for nightlife entertaiments has increased dramatically in recent years Three – fourth of young people feel interested in a pub with a youthful, Korean space This is a good sign for Danbam because of the good impression the Korean-style pub has given youngster through the movies There are also many reasons for young people for using services: relieve stress, enjoy the cuisine, meet friends or new people or they simply want to hangouts Competitors Data shows that there are up to 184 bars/ pubs in Ha Noi and 110 of them are in Hoan Kiem However, only pubs and bars are in Hai Ba Trung district Some of them can be mentioned such as Gold - Wine & Cigar Lounge, Tierra Wine Bar, Airport Exclusive Club, Klub One Club - Lo Duc, La Lune Rooftop, Climax Garden Beer - Tran Hung Dao 7|Page (Some of the direct rivals that Danbam has to compare) Because the bars/pubs operate independently from each other, it is very important to know where the bars are located In the BKX area, there are no pubs Those are mentioned above is far away 5km from the Bach – Kinh – Xay area Therefore, the project can use the advantage of location and price to compete with competitors in the same industry Possible risks and solutions - Cash price and area: In Vietnam, finding a large business premises is not easy Therefore, renting a cheap space and suitable area is the first decisive factor for successful business However, because in the center of downtown, the price for leasing is normally high to extremely high Hence, the project needs to analyse carefully in order to not being frauded by the landlord - Human resources: The staff at the bar needs to be in large numbers Employees need to be able to work with enthusiasm, dedication and proficiency because of a high-pressure working environment The audience at the bar is often quite diverse and complex, so the staff needs to be able to handle situations quickly Because the bar environment is complicated with different types of people, the manager should train the employees carefully in case of bad situation happens, the bar can get rid of unworthy risk - Customer - shop owner relationship: Bar club is not a simple market, people who don't usually want to open can open it, apply for a license to sell alcohol, smoke shisha, are regularly inspected, confiscate assets, take inventory The relationship of the shop owner is an important factor that directly affects the business interests The owner is the inspirational person, transmits strength and faith to the staff, so they need to be the one who can withstand any bad situations The fact that the owner himself has great power, will automatically attract a number of enthusiastic employees who dedicate themselves to the shop Also, the manager not only deals with relationships in the bar, but also needs to build relationships outside 8|Page • Environmental risks and incidents during project operation The type of risks and incidents occurring in the project scope can be very diverse, including risks and incidents of fire and explosion, local environmental pollution in the project area, etc Incidents of this type, when they occur without timely handling solutions, will cause very serious consequences, affecting the project's assets, health as well as human life Subjects and scale affected For both phases: construction and operation of the project: - - Affected objects are the soil, water, air environment, human health, a number of businesses, services and households around the area, landscape, environment, socioeconomics and some other impacts The affected scale is within the project area, households around the project area The equipment installation, bar construction and decoration period are only in months, which is quite short at time, therefore the time each component of the living environment and public health is affected is short In addition, the affected scale also has households along Tran Dai Nghia road transporting raw materials and materials IV Measures to minimize adverse impacts, prevent and respond to environmental incidents Construction phase - Reduce air pollution - Reduce wastewater pollution - Safety in construction and protection of construction works - Ensuring security and order in the region Operation phase - Reduce pollution caused by exhaust gas - Wastewater treatment solutions - Medical solutions and food hygiene and safety - Solutions to prevent fire and environmental incidents V Commitment to take measures to protect the environment Vingroup Company, the investor of the project - Danbam Bar is committed to coordinating and directing the project (during the construction phase), the Project Management Board (when the project comes into operation) strictly implements it environmental protection solutions mentioned in the report as well as general regulations on environmental protection related to the project implementation and implementation process 24 | P a g e Chapter V: Management apparatus and personnel organization I Management apparatus diagram II Human resources needs The employees will be devided as follow: Position Manager Waiter Chef Janitor Bartender Security Cashier Total Direct Staffs 2 2 13 To prepare for this project to go into operation, the company will assemble a team of personnel to manage and operate the bar to go into business The maximum number of employees is 13 employees, including all departments In addition, the cost of recruitment, training and training is about 300,000 VND/ person/ year 25 | P a g e Chapter VI: Total project investment I Purpose of setting up total investment The purpose of the total investment is to calculate the entire investment cost of building the Danbam bar project, as a basis for planning and managing investment capital, determining the investment efficiency of the project II Basis for making total investment The total investment for the project "Bars" is made based on the project's scale - capacity plans and the following bases: - - - - Law on corporate income tax of the 12th National Assembly, 3rd session, No 14/2008/QH12 June 3, 2008; Decree No 12/2009/ND-CP dated February 12, 2009 of the Government on the management of investment and construction projects; Decree No 209/2004/ND-CP dated December 16, 2004 of the Government on quality management of construction works and Decree No 49/2008/ND-CP dated April 18, 2008 of the Government on the amendment and supplement of a number of articles of Decree 2009/2004/ND-CP; Decree No 99/2007/ND-CP dated June 13, 2009 of the Government on management of construction investment costs; Decree No 123/2008/ND-CP dated December 8, 2008 of the Government detailing the implementation of the Law on Value Added Tax; Decree No 148/2004/ND-CP dated July 23, 2004 amending and supplementing Clause 1, Article of Decree No 158/2003/ND-CP; Circular No 05/2007/TT-BXD dated May 27, 2007 of the Ministry of Construction on “Guiding the formulation and management of construction investment project costs”; Circular No 129/2008/TT-BTC dated December 26, 2008 guiding the implementation of Decree No 123/2008/ND-CP; Circular 130/2008/TT-BTT dated December 26, 2008 guiding the implementation of a number of articles of the Law on Corporate Income Tax Circular No 02/2007/TT-BXD dated 14/2/2007 To guide a number of contents on: formulation, appraisal and approval of work construction investment projects; construction permits and organization of management of construction investment projects; Circular 33-2007-TT/BTC of the Ministry of Finance dated April 9, 2007 guiding the final settlement of completed projects funded by the state capital; 26 | P a g e - - III Circular 203/2009/TT-BTC of the Ministry of Finance dated October 20, 2010 guiding the regime of management, use and depreciation of fixed assets; Cost norms for project management and construction investment consultancy attached to Decision No 957/QD-BXD dated September 29, 2009 of the Ministry of Construction; Other documents of the State related to the preparation of the total investment, total cost estimate and work cost estimate Content Total investment of the project: 3,532,100,000 VND (Three billion, five hudred, thirty two million and one hundred thousand VND) Total investment includes: cost of premises, cost of site repair, cost of equipment procurement • Cost of premises: 90,000,000 VND for quarters (6 months from April to September) with 15,000,000 VND each month • Cost of repair, renovation, interior decoration and facade: 1,675,000,000 VND including: Unit: 1000 VND Category Facade decoration Interior Installation of electricity and water supply systems Installing the Set Free- Hitachi central air conditioning system Lighting system Sound system Cost of buying tables and chairs (12 sets of tables and chairs * 10 million VND/set) Cash register Seamless management computer + management software Dark glass decoration Orchestra Uniform Camera system Fire protection system Total Price 200,000 150,000 125,000 200,000 60,000 70,000 120,000 10,000 20,000 50,000 5,000 6,000 15,000 50,000 1,081,000 27 | P a g e • Cost of purchasing equipment for business: 210,000,000 VND including: Unit: 1000 VND Category Kitchen equipment system (FAGOR- Spain) including stove, hood, dishwasher, dish dryer Mixing equipment (grinders, presses, wine openers, shakers, glasses, mixing bowls) Wine glasses of all kinds Dishes Washing and drying machine Total Price 160,000 15,000 15,000 10,000 10,000 210,000 • Electricity, water and other necessary costs Total fees of necessary things in the pre-business phase would be calculated approximately 30,000,000 VND, which is 10,000,000 VND each month in months • Preservation fee Fee reserve equals 10% of all expenses related to the pre-business stage in accordance with Circular No 05/2007/TT - BXD dated 25/07/2007 of the Ministry of Construction on the "Guidelines for preparation and cost management of construction investment projects" IV Result of total investment The total investment of the project before tax includes: - Fixed capital: Cost of buying premises, cost of repairing and renovating premises, cost of equipment for business Unit: 1000 VND Category Cost of premises Premises repair costs Equipment costs Electricity, water and other necessary costs Preservation fee (10% of all the others) Total Price 90,000 1,081,000 210,000 30,000 321,100 1,732,100 28 | P a g e Chapter VII: Investment capital of the project I Investment capital of the project Capital structure and investment capital allocation Unit: 1000 VND Expense item Cost of premises Premises repair costs Equipment costs Electricity, water and other necessary costs Preservation fee Total Total Investment Money before tax 90,000 1,081,000 210,000 30,000 321,100 1,732,100 VAT (10%) Money after tax 9,000 99,000 108,100 1,189,100 21,000 231,000 3,000 33,000 32,110 173,210 353,210 1,905,310 1,905,310 Progress of using capital Unit: 1000 VND Expense item Cost of premises Premises repair costs Equipment costs Electricity, water and other necessary costs Preservation fee 2nd quarter of 2022 3rd quarter of 2022 49,500 49,500 594,550 594,550 231,000 16,500 16,500 176,605 1,068,155 176,605 837,155 Total 99,000 1,189,100 231,000 33,000 353,210 1,905,310 Capital source for project implementation Unit: 1000 VND Time Category Equity Bank loans 2nd quarter 2022 314,077.5 754,077.5 1,068,155 3rd quarter 2022 198,577.5 638,577.5 837,155 Percent 27% 73% 100% Total 512,655 1,392,655 1,905,310 With a total investment of 1,905,310,000 VND 29 | P a g e In which, the investor invests 27% of the total investment, equivalent to the amount of 512,655,000 VND In addition, the company intends to borrow 73% of the total investment capital from the bank, which means the total amount to be borrowed is 1,392,655,000VND This loan is expected to be borrowed for a period of quarters with the expected interest rate at the current general interest rate of 23%/year, or 5.75%/quarter Borrowing method: The principal is graced in the pre-business period, only paying interest according to the outstanding balance at the beginning of the period and loan capital in the period Debt repayment starts from the time the project comes into operation Pay the principal on a monthly basis and interest is calculated based on the outstanding balance at the beginning of the period The loan withdrawal and repayment schedule is as follows: Year Quarter Debts at the beginning of the period Borrowing during the period Pay: - Interest Exense - Original debt End-of-term debt 2022 II 754,077,500 43,359,456.25 43,359,456.25 754,077,500 III 754,077,500 638,577,500 80,077,662 80,077,662 1,392,655,000 This loan is expected to be disbursed several times at the beginning of each quarter, with a total amount of VND 1,392,655,000 During the renovation period and equipment installation, at the end of each quarter, the whole loan interest will be paid but not the principal because there is no revenue source with the total loan interest during the construction period is 123,437,118.3 VND Interest during the construction period is paid with the reserve amount or from a bank loan When the project goes into business, there is a source of income that will begin to pay the principal The repayment period by quarter is estimated in the next year at an interest rate of 23%/year, the amount to be paid each quarter includes loan interest and principal in equal amounts Through planning the sources of revenue, expenses and loan interest according to the debt repayment plan, the project has shown that the project operates efficiently, has a very high ability to repay debt on time, and brings great profits to investors and cooperation partners like banks Loan repayment plan and interest expense 30 | P a g e The loan repayment plan proposed in this project is the plan to pay the interest and principal every year from the beginning of the project operation The loan repayment plan is shown in detail in the following table: Loan ratio Loan amount Term of a loan Grace Interest Rate Repayment term 73% 1,392,655,000 5.75% Total investment VND Quarter Quarter Quarter Quarter • Repayment schedule: Year Quarter Debts at the beginning of the period Borrowing during the period Pay: - Interest Exense - Original debt End-of-term debt Year Quarter Debts at the beginning of the period Borrowing during the period Pay: - Interest Exense - Original debt End-of-term debt 2022 II III 754,077,500 754,077,500 43,359,456.25 43,359,456.25 754,077,500 2022 IV 638,577,500 80,077,662 80,077,662 1,392,655,000 2023 II I III 1,392,655,000 1,044,491,250 696,327,500 348,163,750 - - - - 428,241,413 408,221,997 388,202,581 368,183,166 80,077,663 60,058,247 40,038,831 20,019,416 348,163,750 348,163,750 348,163,750 348,163,750 1,044,491,250 696,327,500 348,163,750 Quarterly, the investor must pay the principal for the loan amount of VND 348,163,750 and this amount is paid in consecutive quarters The amount of loan interest the investor will pay together with the principal is based on the outstanding balance at the beginning of 31 | P a g e each quarter It is expected that by the third quarter of 2023, the investor will repay the loan on time to the bank II Calculating the cost of the project Staff and manager costs Annual personnel costs include salaries of managers and employees and the costs of social insurance, health insurance and other allowances Each year, this cost is estimated at an average of 178,200,000 VND quarterly, with an increase of about 4%/year Salary details are as follows: No Position Number Salary/ of staffs month Manager Waiter Chef Janitor Bartender Security Cashier Total 2 2 Total monthly salary 10,000,000 10,000,000 3,000,000 9,000,000 4,000,000 8,000,000 3,000,000 6,000,000 4,000,000 8,000,000 2,500,000 5,000,000 3,500,000 3,500,000 Cost of Total social quarterly insurance salary and health insurance (month) 2,000,000 1,800,000 1,600,000 1,200,000 1,600,000 1,000,000 700,000 Cost of social insurance and health insurance (quarter) 30,000,000 27,000,000 24,000,000 18,000,000 24,000,000 15,000,000 10,500,000 6,000,000 5,400,000 4,800,000 3,600,000 4,800,000 3,000,000 2,100,000 148,500,000 29,700,000 Operating expense • Cost of electricity, water, wifi The cost of electricity, water, and wifi for the bar's activities is estimated at 3.5% of revenue • Advertising cost In order for the project to operate effectively, businesses deduct an income for advertising and marketing, accounting for about 3% of revenue/year • Leasing cost The rent for the bar is 15,000,000 VND/month Therefore, the one-quarter rent will be 45,000,000 VND 32 | P a g e • Maintenance costs In order for machinery and equipment to work well and be durable over time, the investor deducts about 0.5% of the value of machinery and equipment for maintenance In 2023, spending about 10,455,000 VND, which is 2,611,250 VND quarterly Assume this cost increases by 4% per year, which equals 1%/ quarter • Cost of good sold Table (Assume the amount served for each day with 100% capacity and the COGS equals 30% of the price): Category Beer (Average) Wine (Average) Cocktail (Average) Other (Average) Food (Average) Total Unit Bottle Bottle Shot Shot Dish Amount 15 14 13 20 COGS (VND) 12,500 36,500 45,000 42,500 35,000 Total Cost 225,000 401,500 900,000 637,500 770,000 2,934,000 Annual COGS = COGS (Daily estimated) x Number of operating days in a year • Other expense This cost accounts for 5% of all costs from the project Summary table of project operating costs Quarter Category Cost of electricity, water, wifi Advertising Leasing cost Maintenance costs Cost of good sold Other expense Total 19,887,840 22,597,558 25,359,482 25,613,077 17,046,720 45,000,000 2,611,250 170,467,200 12,750,651 267,763,661 19,369,336 45,000,000 2,637,363 193,693,356 14,164,881 297,462,494 21,736,699 45,000,000 2,663,736 217,366,988 15,606,345 327,733,250 21,954,066 45,000,000 2,690,373 219,540,658 15,739,909 330,538,083 33 | P a g e Chapter VIII: Economic - financial efficiency I Economic assumptions and calculations The above assumed parameters are used to calculate the economic efficiency of the project based on the calculation of the implemented projects, documents related to the selling price, documents provided from the investor, specifically as follows: - - - II The operation period of the project is about years and will come into operation from the fourth quarter of 2022 50% equity, 50% loan The project's revenue includes sales of beverages and foods Operating expenses include: Advertising costs; electricity; water; maintenance costs; cost rent; employee salary; cost of raw material; other costs Depreciation cost of fixed assets: Applying the straight-line method of depreciation, the depreciation period will be calculated depending on the forecast period of capital recovery In the calculation, the depreciation period is applied according to the attached appendix Loan interest rate for local currency is temporarily calculated: 23%/year Debt repayment period quarters, year times both principal and interest; grace period for non-payment of principal in the first quarters The corporate income tax rate of the project is 25% Project revenue Operating capacity: The fourth quarter of 2022 is 80%; The first and second quarters of 2023 are 90% and from the third quarter of 2023 onwards, 100% Quarterly revenue = Unit price x Quantity sold/day x Number of operating days in a quarter Category Beer Wine Cocktail Other Food Total Amount 15 14 13 20 Price Days in quarter 42,000 90 122,000 90 150,000 90 142,000 90 117,000 90 Revenue 56,700,000 87,840,000 189,000,000 166,140,000 210,600,000 710,280,000 34 | P a g e Summary of the project's revenue over the quarters (Suppose the price for each of the category will increase 1%/ quarter): Year Revenue Operating Expesne Labor costs Depreciation Interest Expense Earning before tax Corporate income tax (25%) Net profit after tax 2022 IV 568,224,000 I 645,644,520 2023 II 724,556,628 III 731,802,194 267,763,661 297,462,494 327,733,250 330,538,083 178,200,000 65,343,750 80,077,663 179,982,000 65,343,750 60,058,247 181,781,820 65,343,750 40,038,831 183,599,638 65,343,750 20,019,416 -23,161,074 42,798,029 109,658,977 132,301,307 10,699,507 27,414,744 33,075,327 -23,161,074 32,098,522 82,244,233 99,225,980 In the fourth quarter of 2022, during the market exploration phase, the project only operated at 80% capacity, so the capacity and costs were not fully utilized, the investor lost 23,161,074 VND This loss is offset by the provision for fees included in the total investment The project brings profit from the first quarter of 2023 with VND 32,098,522 The profit of the project has increased gradually over the years, each quarter the investor earns a profit of over 80 million VND Through the income statement, it can be assessed that the Danbam bar business investment project is very feasible The project not only has social value but also economic efficiency, with this high profit can help businesses maintain and develop the project in a sustainable way 35 | P a g e III Year CASH INFLOW Revenue Bank loan Total cash inflow CASH OUTFLOW Initial investment costs Operating costs Labor costs Interest Expense Total cash outflow NCF before Tax CIT (25%) NCF after Tax Discount coefficient PV of NCF Cumulative NPV r NPV NPV test IRR Tpb Cash flow statement Q-II/2022 Q-III/2022 Q-IV/2022 Q-I/2023 Q-II/2023 Q-III/2023 568,224,000 645,644,520 724,556,628 731,802,194 754,077,500 638,577,500 754,077,500 638,577,500 568,224,000 645,644,520 724,556,628 731,802,194 1,068,155,000 837,155,000 267,763,661 297,462,494 327,733,250 330,538,083 178,200,000 179,982,000 181,781,820 183,599,638 43,359,456.25 1,111,514,456 80,077,662 80,077,663 60,058,247 40,038,831 20,019,416 917,232,662 526,041,324 537,502,741 549,553,901 534,157,137 -357,436,956 -278,655,162 42,182,676 108,141,779 175,002,727 197,645,057 10,545,669 27,035,445 43,750,682 49,411,264 -357,436,956 -278,655,162 31,637,007 0.97 0.94 -357,436,956 -270,538,992 29,820,913 74,223,785 116,615,742 127,867,772 -357,436,956 -627,975,948 -598,155,035 -523,931,250 81,106,334 131,252,045 148,233,793 0.92 0.89 -407,315,508 0.86 -279,447,736 12%/year 2,742,010,139 14.69% Quarters 36 | P a g e Target Total investment excluding VAT (10%) Net Present Value (NPV) Internal rate of return (IRR) Breakeven point (Quarter) Assessment 1,732,100,000 VND 2,742,010,139 VND 14.69% Effective Time to analyze the financial performance of the project in the 34 quarter - life cycle from the year of construction start to the year of asset liquidation Cash inflows include: Total annual revenue, income from bank loans Cash outflows include: Initial investment expenses, annual operating expenses (excluding depreciation costs), loan payments including interest and principal, and taxes paid to the state budget With the rate of return, the investor expects to be greater than the loan interest rate to ensure the loan repayment capacity is re = 12%/year Based on the results of cash inflows and outflows, we calculate financial ratios, and the results show: NPV = 2,742,010,139 VND > IRR = 14.69% Breakeven point = quarters (including investment periods) Through the process of planning, analyzing and calculating the above financial ratios, it shows that the project brings high profits to the investor, the internal rate of return is also higher than investors' expectations, and the ability to recover capital is quick IV Evaluation of socio-economic efficiency When the project is put into operation, it will bring many socio-economic benefits to the community: - Project with high economic efficiency Annual GDP contributions Bringing profits to investors Create jobs for workers Contribution to the state budget 37 | P a g e Part D: Conclusion This business plan is the basis for the investor to deploy resources to develop the bar in order to serve the entertainment needs of the youth living and working in the center of Hanoi as well as citizens living in Hanoi with middle - high income The analysis shows that the project is not only economically viable but also very feasible through financial parameters This shows that the project brings high profits to investors, creates great confidence when the loan repayment capacity is high and the investment is recovered quickly Ha Noi, 1st November 2021 Investor Vingroup Joint Stock Company 38 | P a g e ... bartender Bartenders Chief bartender is the position responsible for managing the bartending area, coordinating the work of the Bartenders / Baristas - ensuring the best service quality The bartender... development of human and nature The Danbam bar business project can have an impact on the surrounding environment even in the stage of building the bar and going into production and business The... investment The project brings profit from the first quarter of 2023 with VND 32,098,522 The profit of the project has increased gradually over the years, each quarter the investor earns a profit of over