MARKET DEVELOPMENT STRATEGY FOR REAL ESTATE BUSINESS OF FPT CORPORATION IN THE SOUTH-EAST OF VIETNAM DURING 2012-2016

TR NG I H C M TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBAVB4 TR NH NG C BIÊN MARKET DEVELOPMENT STRATEGY FOR REAL ESTATE BUSINESS OF FPT CORPORATION IN THE SOUTH-EAST OF VIETNAM DURING 2012-2016 MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutor’s Name: Assoc Prof Lê Nguy n H u Ho Chi Minh City (2011) Page |i STATEMENT OF COMMITMENT I hereby, Trinh Ngoc Bien committed my honesty that this thesis for MBA degree is my own work I declare that all source of information that I use in this paper is reliable The information was re-produced from publication information or internal source with permission of owner is clear and duty cited I further commit that it does not constitute any previous work whether published or otherwise P a g e | ii ACKNOWLEDGMENT MBA is a challenging journey but interesting one This program inspires me to touch and enrich my knowledge At the end of this program, I understand that MBA is just a new starting point in my life and my study career To complete this project, I have received a lot support from many people who are professors of program, my colleagues, my classmates, my partners and my family I would like to acknowledge the help of all First and foremost, I would like to thank my family, especially my daughter because of giving me a great encouragement and support to complete not only 2years journey of this MBA program but also all struggles I have met in study as well as work I would like to express my deeply thanks and full of respect to my supervisor, Assoc Prof Lê Nguy n H u, for all challenges, enthusiastic encouragement and precious comments By the advice of Professor, I completed not only my final project but received a lot of knowledge and improve my experience in solving problem of business also I would like to express my thanks to my all colleagues in FPT Corporation; Mr Hồng Nam Ti n, Mr Lê ình L c, Mr Ph m Tùng Lâm, Dr Nguy n ình Hùng, Mrs Nguy n Th H ng Hà, Mr Nguy n V n L c and many others By your support to me in group discussion and in-depth interview, your great opinions and ideas in appropriate strategie formulation for real estate is helpful for me in this final project I also would like to express my thanks for Mr Phan Vu An, who not only helped me to collect secondary data and useful reference documents but reviewed this report and corrected my English and gave valuable comments also Last but not least, I would like to take this change to present my thanks to Solvay program, Open University, all professors, all coordinators and all classmates at MBAVB4 who have accompanied me in this journey HCMC, February 20th, 2012 P a g e | iv ABSTRACT Purpose – This study aims to formulate a strategy to market development for real estate business of FPT until year 2016 As one of the biggest private enterprises in growing economy of Vietnam, FPT were recognized as the biggest enterprise in the industry of Information and Computer Technology (ICT) in Vietnam After 20 years of development, because of some reasons and chance, FPT wants to diversify its business into some new unrelated industries such as banking, securities exchange, fund management and real estate Believing that ICT will continue to contribute to human life seriously; FPT aims to use ICT as core competence to make value for their products or service Framework of study – The study is constructed based on a comprehensive strategic-management model (David, 1988) Based on this model, the study applied Michael Porter’s five force model (Michael Porter, 1985) to analyze external environment factors of real estate industry By this analysis, the opportunities and threats were figured out and evaluated The study analyzed internal environment factors of FPT also By analysis of internal environment factors the strengths and weaknesses of FPT were figured out and evaluated Based on result of analysis external and internal environment factors, the matrix of strength; opportunities; weakness and threats (SOWT) was formulated This study used SWOT matrix and concept of generic strategy (Michael Porter, 1985) to formulate alternative market development strategies for real estate business of FPT Corporation from now to 2016 For more objectively and feasibility of strategy, this study used Quantitative Strategic Planning Matrix (QSPM) to evaluate strategies and chose the best one for the firm Key Findings – Focus on South-East region, that is the most dynamic economic region of Vietnam this study found that real estate market in Vietnam is in downturn but it is promising and profitable industry in coming years Because of dynamic urbanization trend and high demand of housing, development new township in suburban or vicinity town of Ho Chi Minh City is tendency in South-East Two major recommendations are (1) FPT should build townships that focus on ICT life FPT towns will convergence of ICT enterprises and ICT training centers, (2) the new way to acquisition land and compensation, which saves time, eliminates conflicts and avoids a large part of financial pressure Originality/Value – This study helps to figure out the opportunities, threats, strength and weakness of FPT in real estate business It also defined three alternative strategies to market development to real estate business of FPT Key words – Strategy, real estate, Michael Porter’s five forces, Resource base view, SWOT, QSPM, Housing demand, Construction Vietnam and South-East Page |v TABLE OF CONTENT STATEMENT OF COMMITMENT I ACKNOWLEDGMENT II TUTOR’S COMMENT III ABSTRACT IV TABLE OF CONTENT V LIST OF ABBREVIATION VIII LIST OF TABLES IX LIST OF FIGURES IX CHAPTER 1: INTRODUCTION 1.1: RATIONALE OF STUDY 1.2: PROBLEM STATEMENT 1.3: SCOPE AND LIMITATION OF STUDY 1.4:STUDY FRAMEWORK 1.5: STRUCTURE OF RESEARCH CHAPTER 2: LITERATURE REVIEW 2.1: STRATEGY AND STRATEGIC MANAGEMENT 2.2: TYPE OF STRATEGIES 2.3: STRATEGIC MANAGEMENT PROCESS 2.3.1: VISION AND MISSION 2.3.2: EXTERNAL ENVIRONMENT ANALYSIS 2.3.2.1: Macro Environment Analysis 10 2.3.2.2: Micro Environment Analysis 10 2.3.3: INTERNAL ENVIRONMENT ANALYSIS 13 2.3.4: LONG-TERM OBJECTIVE 13 2.3.5: STRATEGY FORMULATION AND STRATEGIC CHOICE 14 2.3.6: STRATEGY IMPLEMENT 17 CHAPTER 3: ANALYSIS OF FPT’S REAL ESTATE BUSINESS’S EXTERNAL ENVIRONMENT 19 3.1: MACRO ENVIRONMENT ANALYSIS 19 3.1.1: POLITICAL AND LEGAL ENVIRONMENT 19 3.1.2: SOCIAL ENVIRONMENT 21 3.1.3: ECONOMIC ENVIRONMENT 28 3.1.4: TECHNOLOGY ENVIRONMENT 30 3.2: MICROENVIRONMENT ANALYSIS 31 3.2.1: REAL ESTATE MARKET OVER VIEW 31 P a g e | vi 3.2.2: INDUSTRY COMPETITIVENESS AND COMPETITOR ANALYSIS 38 3.2.2.1: Barrier of entry 38 3.2.2.2: Substitute of products 40 3.2.2.3: Bargaining power of buyer 41 3.2.2.4: Bargaining power of supplier 41 3.2.2.5: Competitor analysis (rivalry among Industry) 42 3.3: SUMMARY OF COMPANY’S OPPORTUNITIES AND THREATS 44 3.3.1: OPPORTUNITIES 44 3.3.2: THREATS 45 3.4 EXTERNAL FACTOR EVALUATION MATRIX 46 CHAPTER 4: ANALYSIS OF INTERNAL ENVIRONMENT OF REAL ESTATE BUSINESS OF FPT 50 4.1: INTRODUCTION TO FPT CORPORATION 50 4.2: ORGANIZATION STRUCTURE OF FPT CORPORATION 52 4.2.1 ORGANIZATION CHART 52 4.2.2 CORPORATION STRATEGY AND MANAGEMENT SYSTEM 54 4.2.3 HUMAN RESOURCE AND CORPORATE CULTURE 57 4.3: FINANCIAL ANALYSIS 60 4.4: OPERATION OF REAL ESTATE BUSINESS OF FPT CORPORATION 63 4.4.1: GOAL OF REAL ESTATE BUSINESS 63 4.4.2: MARKET SEGMENTATION 64 4.4.3: MAJOR SUPPLIERS 65 4.4.4: INTERNAL SERVICES 67 4.4.5: INVESTMENT ACTIVITIES 67 4.5: SUMMARY FPT’ SWOT OF REAL ESTATE BUSINESS 68 4.5.1: STRENGTHS 68 4.5.2: WEAKNESSES 68 4.6: INTERNAL FACTORS EVALUATION (IFE) MATRIX 69 CHAPTER 5: FORMULATING MARKET DEVELOPMENT STRATEGY FOR FPT’S REAL ESTATE BUSINESS IN SOUTHERN VIETNAM 72 5.1: SWOT ANALYSIS 72 5.2: SWOT STRATEGY 75 5.3: STRATEGY FORMULATION AND CHOICE 76 5.3.1: VISION AND MISSION UNTIL 2016 76 5.3.2: MARKET DEVELOPMENT STRATEGY FOR FPT’S REAL ESTATE IN SOUTH-EAST REGION OF VIETNAM 77 5.3.2.1: Cost Leadership Strategy 77 5.3.2.2: Differentiation Strategy 79 5.3.2.3: Focus Strategy 80 P a g e | vii 5.4: STRATEGY EVALUATION – QUANTITY STRATEGIC PLANNING MATRIX 81 5.5: IMPLEMENT STRATEGY 85 CHAPTER 6: CONCLUSION AND RECOMMENDATION 89 REFERENCE 90 APPENDIX 92 APPENDIX 1: LIST OF COUNTRIES RECOGNITION VIETNAM HAS MARKET ECONOMY 92 APPENDIX 2: LIST OF INTERVIEWEES FOR SWOT MATRIX 93 APPENDIX 3: SAMPLE OF INTERVIEW FOR WEIGHTED SCORE OF EFE MATRIX 94 APPENDIX 4: SAMPLE OF INTERVIEW FOR WEIGHTED SCORE OF IFE MATRIX 97 APPENDIX 5: RESULT OF INTERVIEW FOR WEIGHTED SCORE OF SWOT MATRIX 99 APPENDIX 6: LIST OF PARTNERS OF FPT IN ICT FIELD 103 P a g e | viii LIST OF ABBREVIATION BOD : Board of Directors BRVT : Ba Ria Vung Tau Province CBD : Central Business Districts EU : Europe exFPTer: Person, who worked for FPT and stop now FDI : Foreign Direct Investment FPTer : Person, who are working for FPT GSO : General Statistic Office of Vietnam HCMC : Ho Chi Minh City ICT : Information Computer Technology MOC : Ministry of Construction NA : National Assembly PPP : Public Private Partnership QSPM : Quantitative strategic planning matrix REB : Real Estate Business REM : Real Estate Market SRV : Socialist republic of Vietnam UN : United Nation VCCI : Vietnam Chamber of Commercial and Industry VNR500: List of top 500 biggest enterprises of Vietnam WTO : World Trade Organization P a g e | ix LIST OF TABLES Table 2.1: The SWOT Matrix 15 Table 2.2 Quantitative strategic planning matrix 16 Table 3.1: Demography density of South-East region 25 Table 3.3: The net immigrant rate of Provinces in South–East 27 Table 3.4: The growth rate of population of Provinces in South-East 27 Table 3.5: Contribution of real estate industry to whole economy of Vietnam in nine years at the beginning of 21 century 34 Table: 3.6: Index of housing price/personal income 36 Table 3.7: Estimate Need of Urbanite construction area of Vietnam 37 Table 3.8: Estimate Need of Urbanite construction area of South-East region in the year 2020 37 Table: 3.9 External Factor Evaluation (EFE) Matrix of FPT 46 Table 4.1: FPT’s revenue in last five year 60 Table 4.2: FPT profit before tax in last five year 60 Table 4.3: Brief of Cash flow of FPT in last five yeas 62 Table 4.4: Internal factors evaluation matrix (IFE Matrix) 69 Table 5.1: Benchmark key requirement of overall cost leadership strategy 79 Table 5.2: Benchmark key requirement of differentiate strategy 80 Table 5.3: Quantitative Strategic Planning Matrix 82 Table 5.4: Summary of strategy evaluation 85 LIST OF FIGURES Figure 2.1: A Comprehensive Strategic management model Figure 2.2: Forces driving Industry competition 11 Figure 2.3: The strategy formulation analytical framework 14 Figure 2.4: Applied framework of study 15 Figure 3.1: History of legal about Land and REB in RSV 21 Figure 3.2: Urban population divided to geographic region (in million) 22 Figure 3.3: The ratio of urban population in regions of Vietnam 23 Figure 3.4: Scale of urbanite in provinces of South-East Vietnam 24 Figure 3.5: Household and House Ownership in South-East 25 Table 3.2: Growth rate of household in South-East during 1999-2010 26 Figure 3.6: Basic factors of macro economy of Vietnam 28 Figure 3.7: 20 years development of real estate market in Vietnam 33 Figure 3.8: Number of real-estate enterprise from year 2000 to 2009 33 Figure 3.9: Structure of demand of residential place in HCMC 36 Figure 4.1 Changing of identification factors of FPT 51 Figure 4.2 Organization chart by business field of FPT 53 Figure 4.3: A typical organization chart of subsidiary company of FPT 54 Figure 4.4: One FPT strategy and milestones 55 Figure 4.5: One FPT Diagram 56 Figure 4.5: Growth of personnel 58 Figure 4.6: Goals of Real estate Business of FPT 63 Page |1 Chapter 1: Introduction CHAPTER 1: INTRODUCTION 1.1: Rationale of study FPT Corporation has been one of the top five biggest private companies in Vietnam for recent years Started as a government company in 1988, FPT was equitized in 2001 and listed in Ho Chi Minh Stocker Exchange (HOSE) in 2006 FPT is well known as ICT Company in Vietnam with core competences as below: - Software development outsourcing services: Focus on Japanese market and EU, America recently FPT is the biggest player in this area in Vietnam today - Informatics System Integration: Provide system integration for domestic market (Government Agency and B2B business) This is very strong competence of FPT and FPT is market leader Game Telecommunication services: Provide Internet and ADSL services, IP Phone, online, social network as www.banbe.vn, online magazine as www.vnexpress.net or www.ngoisao.net , etc - Education: FPT University especially focuses on Informatics science - Informatics and telecom equipment Trading: One of important business sector of FPT, which is contributing a largest portion of annual corporate revenue This is one of traditional business of FPT Corp After over a decade of development, FPT obtained many achievements in its core business in 2006 In period from 2002 to 2006, the average annual revenue growth rate of FPT was about 60%-70% per year In term of profit, the growth rate was the same By good developing stage of firm, FPT accumulated amount of surplus capital and decided to diversify its business to some new business sectors Besides, after many years invested to provide short-term service, FPT had uncertain financial position in long-term perspective There was lack of long-term investment or long-term asset in balance sheet of FPT This image of financial structure of company can bring bad point of view from investor when they are concerning about opportunity of increasing market value of company Therefore, FPT joined into real estate market in the end of year 2006 Likewise, in year 2006, FPT invested to a big real estate project in Da Nang city, which is known as FPT city Da Nang This is a mega real estate project with total P a g e | 89 CHAPTER 6: CONCLUSION AND RECOMMENDATION Real estate industry is silent in frozen time Price of housing was down about a half of years ago However, price of housing is still higher than payment ability of customers Many real estate investors are stuck in middle, most of them facing to threat of bankruptcy because of deficient capital, low liquidity performance and inability of payment The demand of housing is still high, especially in big city and demand of youth generation In other hand, infrastructure in HCMC is overload seriously Therefore, urbanization is going to move from central of city to its suburban and vicinity This trend supports migrant trend from central of HCMC to vicinity town Besides, infrastructure of traffic and eco-social are formulating in vicinity of HCMC These factors form new opportunities for real estate in suburban and connected areas of HCMC As a new business, real estate business of FPT has change to take opportunities in South-East of Vietnam because of its strengths This paper aims to formulate market development strategy for this business of FPT until year 2016 ICT city is new ideal and it is difficult to imitate because of a lot of requirement as prestige in ICT market, role of market leader, relationship among community, etc Therefore, this paper propose focus strategy to determine more clear target customer and take advantage of differentiation strategy also Building up appropriate strategy for company is so complicated task even so unfamiliar business of firm However, deployment strategy is more complicated Diversifying business into unfamiliar industry as real estate is adventure activity of FPT Corporation Because of lack of advantage in new industry, the idea of use ICT as unique differentiation to build an ICT urban, which focus on serving ICT community is new idea in Vietnam The knowledge and role of market leader of FPT in both ICT industry and ICT community can support for FPT to achieve best performance in real estate but it must be careful in process of implement strategy, especially in convince ICT community It can be the most challenge that FPT must take over P a g e | 90 REFERENCE Rudolf Grunig; Richard Kuhn (2009), Ho ch đ nh chi n l c theo trình (Ph m Ng c Thúy ctv d ch), NXB Khoa h c k thu t, TP HCM Savills, Báo cáo ngành B t ng S n tháng đ u n m 2011 – Savills Viet Nam T ng c c th ng kê, (2010) Doanh nghi p Vi t nam n m đ u th k 21, NXB Th ng kê, Hà N i T ng c c th ng kê, (2010) Niên giám th ng kê 2010, NXB Th ng kê, Hà N i Carl Shapiro (1989), The theory of business strategy, RAND Journal of Economic, Vol 20 (No 1), 125-137 Fred R David (2009), Strategic management concepts and case – thirteen edition, Pearson Education, New Jersey John L Thomson; Frank Martin (2005), Strategic management the 5th edition, Thomson Learning, UK Michael E Porter (1998), Competitive strategy techniques for analyzing industries and competitors, Simon & SchusterThe Free Press Ltd, New York Raduan, C R, et al (2009), Management, Strategic Management Theories and the Linkage with Organizational Competitive Advantage from the Resource-Based View, European Journal of Social Sciences, Vol 11 (No 3), 402-418 Robert M Grant (1991), The Resource – Base theory of Competitive Advantage: Implication for strategy formulation, California Management Review 1991, 114-135 Tokuda Akio (2005), The Critical Assessment of the Resource-Based View of Strategic Management: The Source of Heterogeneity of the Firm, RITSUMEIKAN INTERNATIONAL AFFAIRS Vol 3, 125-150 Tsutomu Mishina (2004), A new approach to ward Corporate strategy, The Josai journal of business administration (2004) vol (No.1), 25-34 William B Brueggeman; Jeffrey D Fisher (2008), Real estate finance and investments – thirteen edition, McGraw-Hill/Irwin, New York Annual report of FPT Corporation Year 2007, 2008, 2009, 2010 Consolidation Financial statement of FPT Corporation Year 2011 Real estate Quarterly Repot of Savills Vietnam – Q1, Q2, Q3 year 2011 (2011) P a g e | 91 Real estate Quarterly Repot of CBRE Vietnam – Q1, Q2, Q3 year 2011 (2011) Vietnam infrastructure report Quarter of Business Monitor International Website http://data.worldbank.org/ http://data.worldbank.org/ www.businessdictionary.com www.fpt.com.vn www.investorword.com B S Vi t Nam – nhìn l i 20 n m qua: Nh ng th ng tr m B Xây D ng, 2011, Chi n l c phát tri n nhà đ n n m 2020 t m nhìn đ n 2050, Danh sách khu công nghi p, H i ngh Quy ho ch phát tri n nhân l c t nh vùng ông Nam B giai đo n 2011-2020, B k ho ch đ u t , 2010, K t qu toàn b T ng u tra Dân s Nhà Vi t Nam n m 2009, Quy ho ch thành ph H Chí Minh đ n n m 2020, P a g e | 92 APPENDIX Appendix 1: List of countries recognition Vietnam has market economy No 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Country Republic of Angola Republic of Argentina Commonwealth of Australia Republic of Belarus The kingdom of Brunei Darussalam Republic of Chile The People's Republic of China The Kingdom of Combodia Republic of India Republic of the United States of Indonesia Republic of Korea Lao People's Democratic Republic Republic of Malaysia Republic of the Union of Myanmar New Zealand Republic of Nicaragua Republic of the Philippines Russia federation Republic of Singapore Republic of South Africa The kingdom of Thailand Republic of Ukraine Bolivarian Republic of Venezuela Time Apr-08 May-09 Feb-09 May-10 May-07 May-07 Oct-10 May-07 Oct-09 May-07 Oct-09 May-07 May-07 May-07 Feb-09 May-07 May-07 Jul-07 May-07 May-07 May-07 May-07 May-07 P a g e | 93 Appendix 2: List of interviewees for SWOT Matrix No Name Lê Thành ô Nguy n Th H ng Hà Nguy n H u Thái Hòa T Huy Hoàng Nguy n Ng c Minh Huân Nguy n ình Hùng 10 11 Lê H u Hùng Ph m Tùng Lâm Nguy n V n L c Lê ình L c Hồng Nam Ti n Positon Manager of Construction Project of FPT building in Sai Gon High Tech Park Vice of FPT's Quality Assurance Depatment Strategic Management Director of FPT Corp Head of Construction Department of Dong Nai Province Real estate investment taskforce staff Head of Accounting Department of FPT HCMC Branch Real estate investment taskforce staff Real estate investment taskforce staff Vice Director of FPT Land Co.Ltd Vice Director of FPT Land Co.Ltd General Director of FPT Land Co.Ltd P a g e | 94 Appendix 3: Sample of Interview for weighted score of EFE matrix Dear Sir/Madam I am Trinh Ngoc Bien – student of MBAVB4, which is belongs to cooperation program between Solvay Business School and Ho Chi Minh Open University This interview is a part of my final project and the information in this interview is used to MBAVB4 course’s purpose only The table in below is list of 17 factors, which are determined as opportunities and threats of real estate business of FPT Would you please help me to answer only one question by give weighted score for each factors The weighted score of each factor is rated base on relative important of that factor to being successful in real estate industry The higher weighted score, the higher important level of factors is The total weight score of 14 factors must be equal 100 points Your answer will greatly assist me complete my study Thank you very much! No Opportunities - It is large demand of housing, especially demand of tow house, which is house and land attached because of young population and high speed of urbanization in Southeast Region - There is a trend of migrant from center of HCMC to suburban and vicinity town of HCMC because of overload infrastructure of HCMC - Crowded and chaotic traffic in big city as HCMC is pressure of Government from center to local Government is interesting on investment to transportation infrastructure as highway, metro This trend supports to trend of expansion population from big city to its neighbor town - Price of Land is cheaper and cheaper because of frozen real estate market This is opportunities for buyers, who want to own his house with low expensive than normal - Vietnam economic growth will still high rate within medium- Weight P a g e | 95 dated and this condition is advantage to attract capital from FDI flow This trend creates opportunities to co-op between domestic companies, which have advantage of resource of land and foreign investors, who have advantage of capital - New technology of building material (like unbaked material) and construction will save cost and time to deploy real estate project - Almost of real estate product in Southeast is serving for resident demand Lack of popular product concerned about living space and living condition Therefore, there are opportunities to think about differentiating strategy and this is attracting way for new players in real estate industry if they concern this point of market - Government advocates for new style of real estate product, which are smart in energy usage, friendly with environment and green urbanization This is opportunities for new players, who have known-how about new trend of living style - There are opportunities to merge and acquisition (M&A) with other player, who is being stuck on the market because of crisis 10 - Vietnamese Government reinforce in management of real estate market It aims to reduce speculating transaction on the market and create sane environment for real estate market Threat - Bank loan resources for real estate business activities are tighten It is not only scarce capital for investors running their business but also for customers, who has real demand to buy a house for living purpose - High cost of debt (about 22% to 26% per year) is unaccustomed situation of economy Therefore, lack of investors can seek profit now and very lack of people can borrow money to buy house - Legal system of Land and real estate will be changed in near time It is not stable and the way it act depend a lot of point of view of local government P a g e | 96 - Incumbency thinking of government syndics in local government is one of element affect to town planning in local It is new chief new plan and that why town planning is not stable in long time - It takes a long time to submit investment license to local government and most of case, submitting schedule is not stable Investors have to spend time to wait, amendment document multi times Because of unsuccessful master plan of National land using, the land for agriculture purpose is narrowing, many failed in land resource management so opportunities to have land for resident is harder and more difficult - Real estate is freezing, low liquidation on the market Therefore, pressure of bankrupt is pressing on real estate companies It is not only disadvantage for current player but also psychological obstacle for new player on the market Total Please check total score as 100 points Thank you very much! P a g e | 97 Appendix 4: Sample of Interview for weighted score of IFE matrix Dear Sir/Madam I am Trinh Ngoc Bien – student of MBAVB4, which is belongs to cooperation program between Solvay Business School and Ho Chi Minh Open University This interview is a part of my final project and the information in this interview is used to MBAVB4 course’s purpose only The table in below is list of 14 factors, which are determined as Strengths and Weaknesses of FPT in real estate industry Would you please help me to answer only one question by give weighted score for each factors The weighted score of each factor is rated base on relative important of that factor to being successful in real estate industry The higher weighted score, the higher important level of factors is The total weight score of 14 factors must be equal 100 points Your answer will greatly assist me complete my study Thank you very much! No Strengths Weight - Healthy standard of mechanics of operation - Clearance of Vision, mission and core value and good management system - Brand name FPT is top of mind brand name in ICT market in Vietnam and high recognition of Vietnam economy - FPT has good relationship with partners, who are financial organization or investment fun in Vietnam and foreign also - Finance transparence is one of value of spirit of FPT Has respect from investors and not difficult to issue securities to increase capital purpose or bidding process - Good in maintain contact and relationship with Government at both countrywide and local level It help for FPT has approach to investment chance that is consequence development policy of Government of economic P a g e | 98 - High expertise in ICT and project management skill and knowhow in Trading as distributor for many big player in ICT worldwide Weakness - FPT is low recognition brand in real estate industry and investment - FPT has lack of knowledge of technology about real estate industry - Mechanics to make decision in real estate business is rigid and over conservative and take a long time to make it - It is low objective in feasibility assessment of real estate investment opportunity Lack of standard or key performance index of this field of business in FPT - FPT has low knowledge of mechanics in real estate market - Lack of good expert for real estate business in its current workforce - FPT diversified investment in to bank and security service and funding in same time, therefore it is not easy to mobilize capital for mega real estate project as direction of FPT Total Please check total score as 100 points Thank you very much! P a g e | 99 Appendix 5: Result of Interview for weighted score of SWOT matrix No Opportunities Weight P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 - It is large demand of housing, especially demand of tow house, which is house and land attached because of young population and high speed of urbanization in Southeast Region 0.09 10 10 8 12 8 - There is a trend of migrant from center of HCMC to suburban and vicinity town of HCMC because of overload infrastructure of HCMC 0.05 6 5 6 - Crowded and chaotic traffic in big city as HCMC is pressure of Government from center to local Government is interesting on investment to transportation infrastructure as highway, metro This trend supports to trend of expansion population from big city to its neighbor town 0.06 5 6 0.04 3 0.07 7 7 8 0.05 5 0.06 5 0.03 3 2 4 - Price of Land is cheaper and cheaper because of frozen real estate market This is opportunities for buyers, who want to own his house with low expensive than normal - Vietnam economic growth will still high rate within medium-dated and this condition is advantage to attract capital from FDI flow This trend creates opportunities to co-op between domestic companies, which have advantage of resource of land and foreign investors, who have advantage of capital - New technology of building material (like unbaked material) and construction will save cost and time to deploy real estate project - Almost of real estate product in Southeast is serving for resident demand Lack of popular product concerned about living space and living condition Therefore, there are opportunities to think about differentiating strategy and this is attracting way for new players in real estate industry if they concern this point of market - Government advocates for new style of real estate product, which are smart in energy usage, friendly with environment and green urbanization This is opportunities for new players, who have known-how about new trend of living style P a g e | 100 - There are opportunities to merge and acquisition (M&A) with other player, who is being stuck on the market because of crisis 0.04 3 3 10 - Vietnamese Government reinforce in management of real estate market It aim to reduce speculating transaction on the market and create sane environment for real estate market 0.04 5 5 - - - - - - - - Threat - - - - Bank loan resources for real estate business activities are tighten It is not only scarce capital for investors running their business but also for customers, who has real demand to buy a house for living purpose 0.09 10 9 10 10 - High cost of debt (about 22% to 26% per year) is unaccustomed situation of economy Therefore, lack of investors can seek profit now and very lack of people can borrow money to buy house 0.09 10 9 10 10 Legal system of Land and real estate will be changed in near time It is not stable and the way it act depend a lot of point of view of local government 0.07 7 7 6 - Incumbency thinking of government syndics in local government is one of element affect to town planning in local It is new chief new plan and that why town planning is not stable in long time 0.05 5 - It takes a long time to submit investment license to local government and most of case, submitting schedule is not stable Investors have to spend time to wait, amendment document multi times 0.04 3 6 0.06 8 7 - Because of unsuccessful master plan of National land using, the land for agriculture purpose is narrowing, many failed in land resource management so opportunities to have land for resident is harder and more difficult - Real estate is freezing, low liquidation on the market Therefore, pressure of bankrupt is pressing on real estate companies It is not only disadvantage for current player but also psychological obstacle for new player on the market 0.08 9 7 6 10 P a g e | 101 Total 1.0 No Strengths - Healthy standard of mechanics of operation - Clearance of Vision, mission and core value and good management system - Brand name FPT is top of mind brand name in ICT market in Vietnam and high recognition of Vietnam economy - FPT has good relationship with partners, who are financial organization or investment fun in Vietnam and foreign also Weight 100 P1 100 P2 100 P3 100 P4 100 P5 100 100 P6 100 100 P7 P8 100 P9 P10 0.05 6 5 0.06 5 6 6 6 0.09 10 10 10 10 10 0.08 8 9 10 10 0.08 8 8 8 0.07 6 8 0.06 5 6 - Finance transparence is one of value of spirit of FPT Has respect from investors and not difficult to issue securities to increase capital purpose or bidding process - Good in maintain contact and relationship with Government at both countrywide and local level It helps for FPT has approach to investment chance that is consequence of economic development policy of Government - High expertise in ICT and project management skill and know-how in Trading as distributor for many big player in ICT worldwide Weakness - FPT is low recognition brand in real estate industry and investment 0.07 8 - FPT has lack of knowledge of technology about real estate industry 0.08 10 9 7 8 P a g e | 102 - Mechanics to make decision in real estate business is rigid and over conservative and take a long time to make it 0.08 9 9 6 0.07 7 7 - It is low objective in feasibility assessment of real estate investment opportunity Lack of standard or key performance index of this field of business in FPT - FPT has low knowledge of mechanics in real estate market 0.07 8 6 7 6 - Lack of good expert for real estate business in its current workforce 0.08 10 8 9 10 0.07 8 9 1.00 100 100 100 100 100 100 100 100 100 100 - FPT diversified investment in to bank and security service and funding in same time, therefore it is not easy to mobilize capital for mega real estate project as direction of FPT Total P a g e | 103 Appendix 6: List of partners of FPT in ICT field IT and Telecommunications Samsung Motorola Alcatel Nokia Microsoft Oracle Esri Sap Cisco System Thales RSA Security Net APP HP Invent SAP Intel Nortel Networks Toshiba Apple IBM Media Vietnam Television Broadcast Station Hanoi Television Broadcast Station Ho Chi Minh City Television Broadcast Station Vietnam Digital Television Broadcast Station BBC CNBC Reuters CCTV KBS Walt Disney Picture Paramount Pictures 20th Century Fox Bloomberg Warner bros Fremantle media Sony Pictures MBC Finance and Banking SBI Holdings Quang Ninh Construction and Cement Joint Stock Company Real Estates Education and Training APTECH RMIT Southern Cross University Edexcel International