Investor introduction
• Company name: Vingroup Joint Stock Company
• Issued by: Hanoi Department of Planning and Investment
• Company headquarters: Vinhomes Riverside ecological urban area, Viet Hung ward, Long Bien district, Hanoi
• Business sectors: Real estate business (Main)
• Legal representative: Nguyen Viet Quang
• Position: Vice Chairman of the Board of Directors
Brief description of the project
• Project Name: Danbam Le Théâtre
• Investment location: Hai Ba Trung, Ha Noi, Viet Nam
• Investment form: Economic organization establishment
• Type: Bar (Foreign alcohol club)
• Attachment service: Café, Fastfood, Non-alcoholic drinks
Legal basis
- 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 4 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
Market Research
Macroeconomic
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
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
• 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
Vietnam effectively addressed the pandemic with timely solutions and policies, leading to a projected economic growth of 2.3% in 2020, according to the Asian Development Bank (ADB) With successful containment of the virus, the economy is expected to rebound to 6.1% in 2021.
• The food and beverage market are stable:
Experts believe that the food and beverage market holds significant growth potential, even in the wake of challenges presented by the COVID-19 pandemic Projections indicate that this market is expected to grow at an annual rate of 5-6% from 2020 to 2025.
• Food and Beverages Restriction in Vietnam
In Vietnam, the regulation of food and beverages is managed by three distinct ministries: the Ministry of Industry and Trade (MOIT), the Ministry of Health (MOH), and the Ministry of Agriculture and Rural Development (MARD), each overseeing different aspects of the industry.
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
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
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
Densely consist of youthful, interactive and technologically engaged inhabitants, the Bach-Kinh-Xay area and its social and business activities are deeply influenced by the virtual
6 | P a g e social platforms Thus, implementing technology into doing business is essential for Danbam
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
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
Danbam targets students from Bach-Kinh-Xay, a demographic significantly influenced by social media in their decision-making Therefore, leveraging virtual platforms is crucial for effectively reaching and engaging these customers in marketing efforts.
General information about the project
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
Vietnam has successfully navigated its fourth major outbreak of the epidemic and is poised for continued growth With the government's economic stimulus policies bolstering the entertainment sector, now is an ideal time to launch a bar business and capitalize on this favorable environment.
Danbam, a renowned franchisor of Korean bars popularized by the movie "Itaewon Class," is set to expand into Vietnam, specifically targeting the Bach-Kinh-Xay area This venture is poised to introduce the first bar in the region, catering to students with a selection of popular alcoholic beverages.
The project primarily targets two customer segments: first, students aged 18 to 24 in the BKX university area who have limited budgets; and second, middle to upper-class adults aged 25 to 50 with higher incomes.
The bar will feature affordable alcoholic beverages, including popular brands like Soju and Strongbow, making it an ideal choice for students looking to enjoy budget-friendly drink options.
7 | P a g e hang out with friends The Danbam also serves cocktails, mixed shots of strong wines such as Whiskey, Rum, Tequila, Cognac
According to Forbes, the speed of alcohol consumption in Vietnam in 2017 ranks first in the world On average, each Vietnamese consumes nearly 9 liters of alcohol per year
On a reseach of bar market, the bars operate individually and do 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
A significant 75% of young individuals express interest in a Korean-style pub, highlighting a positive trend for Danbam This enthusiasm is largely influenced by the favorable portrayal of Korean pubs in movies, which has resonated with the youth.
- 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
Ha Noi boasts a vibrant nightlife scene with approximately 184 bars and pubs, of which 110 are located in the bustling Hoan Kiem district In contrast, Hai Ba Trung district features only a limited selection, with just 3 pubs and 4 bars Notable venues in the area include Gold - Wine & Cigar Lounge, Tierra Wine Bar, Airport Exclusive Club, Klub One Club - Lo Duc, La Lune Rooftop, and Climax Garden Beer - Tran Hung Dao.
(Some of the direct rivals that Danbam has to compare)
In the BKX area, there are no pubs within a 5km radius, making it crucial to know the locations of nearby bars This presents a unique opportunity for the project to leverage its advantageous location and competitive pricing to stand out among industry rivals.
In Vietnam, securing a spacious business location can be challenging, making the affordability and suitability of the rental space crucial for success Given that leasing prices in downtown areas are typically high, it is essential for businesses to conduct thorough analyses to avoid potential fraud by landlords.
A successful bar requires a large and dedicated staff capable of thriving in a high-pressure environment Employees must possess enthusiasm and proficiency to effectively manage the diverse and complex clientele Given the challenging nature of the bar setting, it is essential for managers to provide thorough training to prepare staff for potential difficulties, ensuring that the establishment can mitigate risks and maintain a positive atmosphere.
The relationship between customers and shop owners in the bar club industry is complex and vital for business success Unlike typical markets, bar owners must navigate licensing for alcohol sales, shisha, and regular inspections, which can lead to asset confiscation and inventory challenges A strong owner-employee dynamic is crucial, as the owner serves as an inspiration, instilling strength and confidence in the staff This powerful leadership naturally attracts dedicated employees who are committed to the establishment's success Additionally, managers must cultivate relationships not only within the bar but also in the broader community to enhance business opportunities.
SWOT strategy analysis
+ Locational advantage: Eases in physically reaching, become noticeable by, and stimulating willingness of potential customers
+ Price advantage: Suitable and appealing to the majority of students
- potential customers who are financially budgeted
+ Brand’s identity: Promotes attractiveness and relatability in marketing activities, while still creating a sense of distinction among other competitors
The first franchisee in Vietnam faces significant challenges due to a lack of experience, making it difficult to penetrate the market and establish a reliable source of goods and customers, unlike more established competitors Additionally, during the startup phase, staff members are required to take on multiple roles, which prevents them from fully dedicating their efforts to their specific responsibilities.
Advantages: Few competitors, take advantage of position to compete
Advantages: Large amount of potential customers
Advantages: New product for beverage market;
+ Choose a convenient location + Beautifully designed shop luxury, luxury
New special promotion to attract customers
+ Diversify products + Keep the restaurant clean + Improve product quality + Continue to build and staff training customer satisfaction staff row
+ Developing training for marketing department
+ Gain experience and gain experience
+ Expand target market, attract new customers, retain old customers, create demand for potential customers
+ PEST Problems: Policy problem; Pandemic effects;
Incapability of taking advantage on 4.0 technology
+ Absorb the strengths and avoid the limitations of the opponent
+ Continue to create your own style, attract customers, satisfy customers' needs, build a familiar customer system
+ Train service staff in a separate and professional manner to meet the increasing demands of customers row
+ Market penetration by advertising strategies such as promotions, gift giving + Get customers' opinions about the product as well as the service of the staff to improve it better
+ Sourcing more and more quality products
Project Location
Project geographical location
As expected, Danbam will be located in Tran Dai Nghia Street, Hai Ba Trung, Ha Noi This would be an ideal place for business
As one of the province in the center of the capital, it gathers all the essentials to attract customers
Hai Ba Trung district, situated in the heart of Hanoi, boasts a strategic geographical location It is bordered to the east by Long Bien district along the Red River, while to the west, it adjoins Dong Da district.
Da district with Le Duan and Giai Phong streets To the southwest, it borders Thanh Xuan district with Giai Phong and Vong streets
II Status of usage of the land
Around Bach - Kinh - Xay region, Tran Dai Nghia street and Hai Ba Trung district, there are several plots available for sale.
General comment
The analysis revealed that the natural conditions and technical infrastructure in the Hai Ba Trung area, specifically in Bach - Kinh - Xay, significantly support the establishment and utilization of service bases The region boasts a favorable geographical location and modern infrastructure, making it highly convenient for operations.
A profitable project
Objectives of the project
- It will be an entertainment rendezvous for young people in the inner city of Hanoi
- Contributing to local socio-economic development
- Contributing to the budget revenue an amount from profit
- Providing jobs for needed citizens as well as students.
Necessity of investment
Modern entertainment bars are increasingly popular among the youth in Vietnam For production and service establishments, investing in new resources and maintaining existing facilities are crucial for business growth This investment is essential for enterprises to enhance their production, business, and service capabilities in the post-pandemic landscape.
- Bring high economic efficiency to the owner
- Customers can hang out with friends
In major cities, a diverse array of entertainment options exists, with bars serving as a unique form of leisure that enhances the balance between work and relaxation Consequently, residents in the capital can experience an improved quality of urban life.
Investment project implementation time
The project will be implemented in 12 months from the fourth quarter of 2021 to the end of September 2022, then the bar will be put into business
Information gathering, surveying and evaluation
Prepare pre-feasibility assessment report
Looking for capital and strategic partners to cooperate
Finalization and approval of technical legislation related to the project
Equipment come to the bar
Investment funds
The project is financed through capital raised by the investor Vingroup, supplemented by bank loans, and will also seek additional support from both domestic and international sources.
Basic design planning solution
Project grading determination
- Based on Article 24 Decree 103/2009/ND-CP about bar and disco business;
- Based on the reasoning about the competitive advantage and profitability of the bar area;
- Based on the capacity of the investor - Vingroup Joint Stock Company;
- Based on the trend of the bar entertainment market in Hanoi;
With the above bases, Vingroup Joint Stock Company decides to build Danbam bar according to state standards.
Technical scale determination
Danbam Bar is built on a total area of 173.7 m 2 including 1 ground floor and 1 floor with a scale of 86.85 m 2 each floor.
Services determination
The bar will feature an international-quality lighting system designed to foster a cozy atmosphere for patrons, complemented by an advanced electric sound system that enhances relaxation during their visit.
The bar features a dedicated area for bartenders and a main bar where customers can select nearby seating to savor drinks while enjoying live musical performances by renowned singers Additionally, the establishment offers a light menu complemented by an impressive selection of beverages.
The bar offers a 100-inch screen TV and free Wi-Fi internet access throughout the bar The bar provides a system of safety equipment such as:
- Automatic fire alarm and extinguishing system
- Advanced camera system against illegal acts.
Basic business requirements
- All areas in the business area must be designed to be easy to clean
A successful business bar requires a strategically chosen location and a spacious layout that supports efficient operations It is essential to organize each area thoughtfully to prevent clutter and ensure a seamless service experience for customers.
- Kitchen material storage area must be ventilated and clean for easy cleaning and in accordance with food hygiene and safety standards
- Restrooms must be well ventilated
2 When designing the bar layout, the following issues must be considered:
- The bar area must be arranged reasonably to create a highlight for the bar as well as create a spacious and airy space to have more area to serve customers
- Avoid placing too many tables and chairs in the business area, causing loss of aesthetics and space for the bar
- The toilet area should always be cleaned to avoid contamination
- Drainage areas such as drains need to be cleaned regularly to avoid clogging Where necessary, a suitable waste drainage system should be designed for ease of cleaning
- The service area must be provided with adequate lighting and sound
3 Pantry and bar equipment storage area
Properly designed pantry and bar equipment storage areas should be well-lit, spacious, and thoughtfully arranged to ensure organized storage of products while minimizing the risk of damage to wine bottles.
- It is necessary to ensure regular inspection and management of special storage conditions such as temperature, humidity and security issues to avoid unnecessary loss
- The arrangement of bottles must be reasonable (eg distinguishing different labels) to avoid confusion when serving.
Planning solution
Danbam bar is based on many existing planning projects, investment projects, specialized plans and related strategic orientations and calculation criteria
For the construction of the bar, utilizing two-layer hollow red bricks is an effective and economical soundproofing solution, with the option to leave the space between the walls blank or fill it with foam.
The main power source is from a 3-phase 4-wire 220/380 VAC, 50Hz power supply from the low-voltage power supply system of the national grid
Light system only requires enough power for the aptomat Therefore, the bar can completely use the civil electrical system without the need to upgrade the higher-pressure load system
The speaker system for Danbam needs to be suitable, just right, not too loud, causing waste, wrong style orientation as well as disturbing the surrounding houses
- Amply of famous brands JAGUAR, NANOMAX, ARIANG, CALIFORNIA, OBT, BOSE,
- Wall or ceiling speakers of big brands such as BOSE, BMB, JBL, OBT
- Potentiometer for convenience to adjust volume, mute/unmute sound
- Sound power covers the entire room space No noise, turn up loud does not affect the speaker
- Built-in bluetooth, USB, smartphone plug
- Three knobs to adjust bass, treble, volume separately
- Surface water: includes rainwater, water from the roof, water for watering plants
- Domestic wastewater: From the bar
The project, situated in the city center, will utilize the existing centralized wastewater treatment system Gray wastewater will be directly linked to the city's wastewater collection system, while black wastewater will first be stored in a septic tank before being transferred to the city's collection system.
- Surface water: This part includes rainwater collection mouths from floors, rainwater drainage pipes in the garden, rainwater collection pipes and connection to the city's stormwater drainage system
Fire protection plans are established on the basis of current standards of the State
This is a residential and public building, so the production grade of the building is grade C (TCVN 2622-1995)
The structure is mainly made of reinforced concrete, so the general fire resistance level of the work to apply the calculation is level II and III
The internal water-walled fire-fighting pipe system is equipped with a water supply network leading to fire-fighting cabinets, which house hose reels and canvas hose reels The hose reel features a diameter of 25mm, extending 30m in length, capable of delivering a water pressure spray of 10m In contrast, the canvas roll has a diameter of 50mm, also measuring 30m long, with a 10m dense water pressure spray Each throat is designed to meet established standards for water flow rate Additionally, fire hydrants are strategically installed to ensure that the maximum travel distance from any location within the premises to the nearest fire hydrant does not exceed 30 meters.
To enhance fire safety, each fire hydrant within the house will be equipped with a fire alarm unit featuring a push button and protective glass, commonly known as Break Glass Units, along with a fire alarm bell These installations will be strategically positioned in highly visible locations near escape doors to ensure quick access in case of an emergency.
Smoke and heat detectors will be designed and installed in all business areas to ensure the fastest signal acquisition
A 4.5 kg capacity fire extinguisher suitable for Class A, B and C fires will be installed
Arrange and install lightning protection systems at high points and evenly distributed in the area to prevent fire and explosion caused by lightning in a reasonable and effective manner
Using a lightning discharge system with early discharge lightning rods
To ensure comprehensive protection for the entire construction site, the lightning rod should be strategically placed at the highest point of the building.
The grounding system has a low impedance, this grounding system is equipotentially linked with the grounding system of the building
- Fully automatic, maintenance-free equipment
- Simple grounding can be connected to an existing grounding system
- The lightning protection grounding system must reach R