T The impact of covid 19 on CJ CGV revenue in Vietnam Name Nguyễn Ánh Ngọc Major in busisness administration Table of Contents 1 Introduction of CJ CGV in Vietnam 3 1 1 General introduction 3 1 2 Visi.
T The impact of covid-19 on CJ CGV revenue in Vietnam Name: Nguyễn Ánh Ngọc Major in busisness administration Table of Contents Introduction of CJ CGV in Vietnam 1.1 General introduction 1.2 Vision 1.3 Mission Impact of the covid-19 pandemic on CJ CGV revenue in Vietnam .4 2.1 Revenue of CJ CGV in Vietnam before 2020 2.2 Revenue of CJ CGV when impacted by covid-19 2.2.1 Overview of the covid-19 pandemic .5 2.2.2 Revenue of CJ CGV during the covid-19 pandemic Some solutions and recommendations on the impact of the covid pandemic on CJ CGV 3.1 Solution 3.1.1 Solutions for the company 3.1.2 Government solution 3.2 Request Conclusion 10 References 10 Introduction of CJ CGV in Vietnam 1.1.General introduction CJ CGV is the largest movie theater chain in Korea, and now has branches in countries: Vietnam, USA and China The phrase CGV is abbreviated from letters that start from: Cultural, Great and Vital Up to now, CGV has built 142 cinema complexes, including 681 screening rooms with more than 100,000 seats CJ CGV entered Vietnam market in 2011 with the acquisition of 92% shares of Envoy Media Partners (EMP0) EMP at that time held 80% of shares in Megastar Media Co., Ltd., which owned the Megastar cinema complex at that time, the remaining 20% was under the control of Phuong Nam Cultural Company After the above deal, EMP became a subsidiary of CJ CGV Although holding a large share of Megastar, it was not until the end of 2013 that CJ officially converted the MegaStar brand in Vietnam into CGV Finally, on January 15, 2014, all Megastar cinemas in Vietnam were renamed CGV and ushered in a prosperous period of CGV cinema chain (Thịnh, 2020) 1.2 Vision CJ CGV has expressed its vision with a short slogan: ''Create a New Culture For Healthy, Happy and Convenient Lifestyl''' CGV always aims to be the first choice for movie watching and entertainment activities 1.3 Mission Always our best to bring cinema products with international standards to all classes of audiences Become a model company that always actively contributes to the development of society in general and to the Vietnamese film industry in particular Impact of the covid-19 pandemic on CJ CGV revenue in Vietnam 2.1 Revenue of CJ CGV in Vietnam before 2020 According to the 2017 report, CGV said that it is managing and operating 47% of cinemas in Vietnam The scale of the CGV theater system has increased by times compared to 2011 In early 2017, after Platinum withdrew from some shopping centers, CGV immediately replaced Number of theaters and screening rooms from 2014 to 2017 As of February 2018, CGV currently has: According to statistics published by CJ CGV Corporation, in 2019 the CGV cinema chain brought in more than 3,600 billion VND in the Vietnamese market, an increase of 35% compared to 1028 This result comes from the expansion of the system as well as the success of popular hollywood and domestic movie The monthly revenue of the CGV theater system reaches 305 billion VND and averages more than 10 billion VND per day As of 2019, Vietnam's CGV system owns 82 cinemas with 475 screens, an increase of 15% compared to 2018 CGV's profit also increased from increasing the average ticket price by 6%, effective cost management and increased sales activities (khoán, 2020) 2.2 Revenue of CJ CGV when impacted by covid-19 2.2.1 Overview of the covid-19 pandemic Acute respiratory syndrome Corona Virus (SARS-CoV-2) was first detected in December 2019 in Wuhan city, Hubei province, China has caused a global outbreak and is a public health problem On October 30, 2022, WHO declared COVID-19 as the 6th public health emergency of international concern The rapid spread of the Covid-19 Pandemic is unexpected, not only in China but also around the world The number of sick people must be counted on a daily or even hourly basis Data of Covid-19 cases as of October 29, 2020 in Vietnam and the world 2.2.2 Revenue of CJ CGV during the covid-19 pandemic In 2020, when the Covid-19 pandemic appeared in Vietnam The state began to issue anti-epidemic policies, which greatly affected business activities in Vietnam Especially in the entertainment industry, CGV was forced to close most of its cinemas That has made CGV's revenue decline year on year The emergence of the pandemic also caused film production businesses to be delayed indefinitely Domestic and foreign film studios canceled their movie production plans and delayed the movie release schedule until the situation stabilized, leading to a situation in which the entire cinema market was severely short of new movie sources, especially especially blockbuster movies to attract viewers At the same time, the epidemic situation makes most people afraid to go to crowded places such as cinemas and shopping centers CGV Vietnam represents the face of the film industry when holding about 50% market share In 2020, this company was severely affected, seeing revenue decrease by 61% to nearly VND 1,400 billion In the peak year of 2019, CGV Vietnam recorded a revenue of more than VND 3,630 billion, or an average of more than VND 10 billion per day Notably, the loss of CGV Vietnam suddenly increased to more than 850 billion VND In the previous years, the company lost more than 150 billion dong and 27 billion dong respectively (according to the parent company's report) (CGV Việt Nam lỗ 850 tỷ đồng năm 2020, 2021) Chart of revenue and profit of CJ CGV Vietnam from 2018 to 2020 The heavy loss made CGV Vietnam's equity negative about 470 billion VND Total assets of the film company are more than 7,800 billion VND, while liabilities are recorded at more than 8,300 billion VND In the beginning of 2021, CGV Vietnam's revenue continued to decrease by 10% over the same period However, EBITDA improved thanks to the success of a number of Vietnamese films, including "Bố già" which hit box office records The recovery was quite positive, before the 4th wave of Covid-19 arrived, the development was complicated and prolonged (CGV Việt Nam lỗ 850 tỷ đồng năm 2020, 2021) Some solutions and recommendations on the impact of the covid pandemic on CJ CGV 3.1 Solution 3.1.1 Solutions for the company The film company makes recommendations to the Government and Ministries: There are support policies to restructure loans, or grant new preferential credit packages There are support policies to restructure loans, or grant new preferential credit packages Reduce 50% of the value added tax collected by film enterprises and postpone the payment of this tax until the end of the year, exempt and reduce personal income tax for employees of film enterprises Having policies to mobilize and support real estate businesses to create favorable conditions for businesses to rent premises to exempt rent and service fees for cinema units during the period of closure due to the epidemic and at least months since the theater reopened… 3.1.2 Government solution The Government has implemented measures to ensure social security, mobilized and mobilized the strength of national unity and social resources of domestic and foreign organizations and individuals for COVID-19 prevention and control activities To reopen entertainment activities when the epidemic is under control and most people have been vaccinated against covid 19 3.2 Request The government should have policies to encourage and promote cinema companies, typically CGV Strong measures should be taken against websites that use noncopyrighted movies and movies stolen from theaters To motivate people to go to the cinema to experience the movie Conclusion The major cinema chains in the market today can be mentioned: Platinum Cineplex, BHD Star, Galaxy Cinema, Lotte Cinema and CGV giants with 45% of the movie theater market in Vietnam, that helps CGV overwhelm other cinemas other competitors and bring huge revenue to the business That is why, when affected by the Covid pandemic, CGV is also a company that is greatly affected The above research article has raised the situation of CGV before and during the covid-19 pandemic From there, the impact of the covid 19 pandemic on CJ CGV can be drawn References Thịnh, V., 2020 Công ty CJ CGV Việt Nam- Cụm rạp chiếu phim CGV Micpectower 1st ed Hà nội: Đại Học Kinh Tế Quốc Dân Việt Hà, T., 2018 Chiến lược kinh doanh CJ CGV Việt Nam 1st ed Hà Nội: Học Viện Ngân Hàng NĐH 2022 CGV Việt Nam lỗ 850 tỷ đồng năm 2020 [online] Available at: [Accessed 26 May 2022] tin tức khoahocdoisong.vn 2022 CGV lỗ tỷ ngày trước kêu cứu Thủ tướng [online] Available at: [Accessed 27 May 2022] VietnamPlus 2022 COVID-19: Doanh nghiệp chiếu phim 'khóc rịng' tương lai mịt mù | Điện ảnh | Vietnam+ (VietnamPlus) [online] Available at: [Accessed 26 May 2022] khoán, K., 2020 CGV Việt Nam lợi nhuận 156% năm 2019 [online] Kinh tế chứng khoán Available at: [Accessed 31 May 2022] 10 ... CJ CGV can be drawn References Thịnh, V., 2020 Công ty CJ CGV Việt Nam- Cụm rạp chiếu phim CGV Micpectower 1st ed Hà nội: Đại Học Kinh Tế Quốc Dân Việt Hà, T., 2018 Chiến lược kinh doanh CJ CGV. .. respectively (according to the parent company's report) (CGV Việt Nam lỗ 850 tỷ đồng năm 2020, 2021) Chart of revenue and profit of CJ CGV Vietnam from 2018 to 2020 The heavy loss made CGV Vietnam's... of CJ CGV in Vietnam before 2020 2.2 Revenue of CJ CGV when impacted by covid- 19 2.2.1 Overview of the covid- 19 pandemic .5 2.2.2 Revenue of CJ CGV during the covid- 19