1062THE BUSINESS PLAN FOR ESTABLISHING TOYOTA 3S DEALER OF SAVICO IN DA NANG CITY

INTRODUCTION

Rationale of the project

Savico is one of the first companies in Ho Chi Minh City trading in the sector of automobile - motorcycle Savico has begun the distribution of automobile products since

Since its inception in 1990, the Company has established itself as the leading automobile distributor in Vietnam, boasting a comprehensive dealer network across all three regions of the country after more than 20 years in the automotive industry.

Savico stands out as the premier distributor of Toyota in Vietnam, uniquely authorized by TMV to sell certified used Toyota vehicles with warranties and maintenance policies comparable to those of new cars This significant advantage positions Savico ahead of its competitors in the automotive market.

In the market in Da Nang and the surrounding provinces like Quang Nam, Quang Ngai and Binh Dinh, Savico is the only company having standard 3S dealer of Ford Vietnam

In 2010, Savico launched a 3S dealership focused on distributing Hyundai automobile products By 2011 and through the first nine months of 2012, Savico achieved the largest market share for Ford and Hyundai in the Central market.

Currently, Da Nang has only one 3S dealer for Toyota products, which is unable to fully meet customer demands, particularly in car repair and used car trading services The market for Toyota cars in the Central region shows significant potential, especially for used car sales In response to this opportunity, Savico plans to develop a comprehensive business strategy to establish a new Toyota 3S dealer in Da Nang City.

Savico specializes in a range of Toyota-branded products, including 4WD vehicles, multi-purpose vehicles, genuine spare parts, accessories, and particularly used cars Key models offered include the Corolla Altis, Camry, Vios, Innova, Fortuner, Hiace S/Wagon, Land Cruiser, and Hilux In addition to vehicle sales, Savico provides high-quality repair and maintenance services In response to the current economic challenges, many companies are opting for car rental services over purchasing new vehicles To meet this demand, Savico offers flexible short and long-term car rental options, including both driver and non-driver leases.

This business plan will evaluate market factors and market share, analyze the risk factors impacting the project, and assess the business outcomes to determine the feasibility of establishing a Dealer.

From the above mentioned reasons, the business plan of Toyota 3S Dealer of Savico in

Da Nang City needs to be carried out.

Objective of the project

The objectives of the business plan are:

- Collect information about the automobile market, market share in Vietnam and in the Central of Viet Nam

- Establish the detailed action plan to increase the feasibility for the business plan

- Identify the business strategy based on taking advantage of opportunities, promoting the strengths to increase the competitiveness of Savico to other competitors

Related with this objective, there are some issues needing to be researched as followed:

- What is the automobile market share and market in the Central of Viet Nam?

- What are the risk factors affecting to the project?

- How long will this project get back?

- What is the profitability this project brings in?

1.3 Trading area of this project:

Investing in the challenging current market requires careful consideration, with a primary focus on the Da Nang City market This business plan analyzes financial aspects to determine its feasibility, aiding the Management Board in making informed investment decisions Utilizing data collected from 2010 to 2012, the analysis projects profits over a decade by assuming various scenarios related to revenue growth, interest rates, and exchange rate fluctuations between the Vietnamese dong and the U.S dollar.

We employ the secondary research method to gather essential data on market trends and market share This information is sourced from various platforms, including online resources, magazines, VAMA reports, and the General Statistics Office of Vietnam.

The business plan for establishing the Toyota 3S Dealer of Savico in Da Nang City is structured into five comprehensive chapters Chapter 1 introduces the project's rationale, research questions, objectives, and trading area Chapter 2 offers a literature review focused on business planning and financial appraisal Chapter 3 conducts an in-depth analysis of the market and environmental factors Chapter 4 details the business plan analysis, while Chapter 5 presents conclusions and recommendations for the project's success.

Data collection

We employ the secondary research method to gather data on market trends and market share This information is sourced from various platforms, including the Internet, magazines, reports from VAMA, and the General Statistics Office of Vietnam.

Project process

The business plan for establishing the Toyota 3S Dealer of Savico in Da Nang City is structured into five comprehensive chapters Chapter 1 introduces the project's rationale, outlines research questions, defines objectives, and describes the trading area Chapter 2 presents a literature review focused on business planning and financial appraisal relevant to the project Chapter 3 conducts an in-depth analysis of the market and environmental factors Chapter 4 details the business plan analysis, while Chapter 5 concludes with key findings and recommendations for successful implementation.

LITERATURE REVIEW

Business plan

Professors Alexandre Schmitz and Francois Faeli from Solvay - OU define a business plan as a professional document that outlines a business opportunity and details how a team will establish and manage a new company, demonstrating its feasibility within a specified timeframe.

A business plan serves to demonstrate the value of an opportunity, outline a clear business strategy, and establish realistic, measurable goals It assesses the feasibility of the business, persuades potential partners, and provides a benchmark for the management team responsible for executing the plan, while also showcasing the entrepreneur's capabilities in crafting the proposal.

The business plan helps us to answer the questions of management, kinds of product, product value, customer, objectives, risk, implementation and development, sales activities, profit

To write a good business plan, we should answer the following question (Prof Alexandre Schmitz and Prof Francois Faeli):

• Who is the management team?

• What is impact of the economic environment?

• What do you sell? Why is it unique? To what needs do you answer?

• Who are the customers and copetitors?

• What are the main risk?

• What are the development stages of the venture? The action plan (what need to be done)?

• How and when you make profits (the financial plan)?

Financial appraisal

The Net Present Value (NPV) index is a crucial metric for assessing investment effectiveness, calculated as the difference between the Present Value of cash flows generated by an investment and the initial investment amount.

The formula for the discounted sum of all cash flows can be rewritten as:

When evaluating a project or investment, it is crucial for companies and investors to estimate its profitability The initial investment, represented as -C0, indicates a negative cash flow, reflecting the outflow of money To determine the investment's value, the net present value must be positive, which means that the discounted cash inflows should exceed the initial cash outflow.

When selecting between mutually exclusive projects, the decision-making process is straightforward: calculate the Net Present Value (NPV) for each option and select the project with the highest positive NPV.

2.2.2 Internal rate of return (IRR)

Prof Alexander Aschmitz emphasizes that while Net Present Value (NPV) is a valuable tool for project evaluation, it falls short when comparing multiple projects under budget constraints It does not provide clarity on which project yields the highest Return on Capital Employed (ROCE) Additionally, the Internal Rate of Return (IRR) represents the cost of capital at which the NPV of a project equals zero.

We can canculate the IRR by:

A project is considered financially viable if its Internal Rate of Return (IRR) exceeds the Cost of Capital Conversely, projects with an IRR lower than the Cost of Capital are deemed unworthy of investment In scenarios where multiple projects compete for limited funding, priority should be given to those with the highest IRRs, as they represent the most attractive investment opportunities.

In general, the decision of investment is based on two factors: NPV > 0 & IRR > r

The payback period is defined as the time needed to recoup the cost of an investment It serves as a crucial factor in deciding whether to proceed with a project, as investments with longer payback periods are generally less attractive.

Calculated as: Payback Period = Cost of Project / Annual Cash Inflows

ENVIRONMENT AND MARKET ANALYSIS

Market overview

3.1.1 The Vietnam’s economy in 2011 and of the 9 months of 2012:

In 2011, Vietnam's economy encountered significant challenges, with a GDP growth rate of just 5.9%, down 0.8% from 2010 The country also experienced rising inflation, with the Consumer Price Index (CPI) reaching 18.5% Increased input costs, including electricity, fuel, foreign currency exchange rates, and particularly bank interest rates, severely impacted business operations.

To stabilize the macroeconomy, the Government has prioritized inflation control and restricted credit growth through Resolution 11 (NQ-CP/2011) These measures have made it challenging for businesses to access capital and hindered the development of their projects.

In 2011, the financial and stock markets showed no signs of recovery, as the cost of capital nearly doubled compared to 2010 This high cost significantly impacted businesses and investment operations, making access to capital challenging for companies.

In the first nine months of 2012, the Central Government implemented measures to control inflation, stabilize the macroeconomy, and address challenges faced by companies As a result, various industry groups experienced positive changes compared to the start of the year Notably, the GDP in the third quarter rose by 5.35% from the second quarter, while the Index of Industrial Products increased by 2.5% from the previous quarter and 5.5% compared to the same period in 2011.

In September, the consumer price index (CPI) rose by 2.2 compared to August, complicating efforts to maintain inflation below 7% in 2012 This CPI increase is primarily attributed to rising input costs, including petrol and healthcare, rather than consumer spending Consequently, market purchasing power remains subdued, and the level of bad debt continues to be a significant concern.

3.1.2 OVERVIEW OF DA NANG CITY

Da Nang City has a strategic location:

Located 759 km from Hanoi and 960 km from Ho Chi Minh City, this region is bordered by Thua Thien - Hue to the north, Quang Nam province to the south and west, and the East Sea to the east It is strategically situated along the North-South road (National Highway 1A) and is accessible by railway, waterway, and airway.

Da Nang is strategically situated along the 1,500 km “World Heritage Road” that stretches along the Central Coast of Vietnam, from Vinh City to Da Lat City This prime location allows visitors to easily access four of Vietnam's five World Heritage sites—Phong Nha - Ke Bang, Hue, Hoi An, and My Son—via National Highway 1A, showcasing the region's rich cultural heritage and natural beauty.

Da Nang serves as a crucial gateway to the East of the East-West Economic Corridor, which connects the port city of Mawlamyine in Myanmar to the Myawaddy border gate This corridor traverses seven provinces in Thailand, extends into Laos, and ultimately leads to Vietnam, passing through the Lao Bao border gate and the provinces of Quang Tri and Thua Thien-Hue.

The City has the area of 1.256 km2 and the population in 2009 was 887.070 people, including 6 urban districts and 2 suburban districts

Da Nang boasts a strategic geographical location and robust infrastructure, highlighted by its status as the third largest commercial port in Vietnam and one of the country's top three international airports This advantageous setup, combined with rich tourism potential and a well-trained workforce, positions Da Nang as a prime destination for investment and development.

Da Nang city serves as a pivotal hub for development, driving progress across the Central and Central Highlands regions With its consistent and stable economic growth, Da Nang is fostering significant advancements in social well-being and quality of life.

Between 2001 and 2006, the average GDP growth rate was 12.47%, followed by a slight decrease to 12.2% from 2008 to 2011 The city's economic structure is evolving positively, with the industrial and construction sectors contributing 47.59%, the service sector at 49.4%, and agriculture, forestry, and fishery at 3.01%.

In 2011, Da Nang City experienced a significant GDP growth of 13%, surpassing the previous year's rate of 12.6%, as reported by the People's Committee of Da Nang City.

In 2011, the City experienced significant growth in industrial production, with a value estimated at 14,855 billion dongs, marking a 14% increase from 2010 The fishery, agriculture, and forestry sectors also saw positive growth, with production valued at approximately 639 billion dongs, a rise of 4.5% compared to the previous year Additionally, the service sector's production value reached about 12,287.7 billion dongs, reflecting a remarkable 17% increase from 2010.

Total retail rate of goods and services in the City was estimated about 42,670 billion dongs, increasing 25.2% as compared to that of 2010

In 2011, the City welcomed approximately 2.35 million visitors, marking a significant 33% increase from 2010 Additionally, tourism revenue surged to an estimated 1,800 billion dongs, reflecting a remarkable 45% growth compared to the previous year.

In 2011, the City launched investment certificates for 23 domestic projects, totaling over 4,400 billion dongs, alongside 35 foreign direct investment projects with an aggregate capital of US$ 350 million.

To 2011, Da Nang had 14,510 private companies, the total registered capital was 59,500 billion dongs and 207 FDI projects, the total investment capital was US$ 3.12 billion.

Market segmentation

3.2.1 The vietnam’s auto market analysis

Vietnam, situated in Southeast Asia, is recognized as a burgeoning auto market with significant potential With a regional population of approximately 600 million, Southeast Asia is projected to consume around 10 million cars annually in the near future The integration of Southeast Asian nations into AFTA and the WTO has facilitated free trade, paving the way for growth in the automotive industry.

So only one country manufactures autos, these autos can be circulated throughout the region

Southeast Asia is becoming a hub for major global auto manufacturers, with Thailand currently recognized as a key automotive center and Indonesia poised to follow The growth of the auto industry in this region not only satisfies domestic demand but also boosts exports, generating significant foreign currency and contributing to national prosperity.

Vietnam has the potential for robust auto manufacturing development, especially following the 2011 floods in Thailand that prompted global automakers to consider relocating their plants to Vietnam However, the Vietnamese auto industry remains underdeveloped despite a steady increase in car demand, with over 100,000 vehicles currently in the market The lack of significant investment, such as new projects exceeding US$ 100 million, is evident in a country of over 86 million people, where a shift from motorcycles to automobiles is anticipated In contrast, Thailand attracts substantial investments, including a US$ 450 million project from Ford Motor, alongside other automakers like Suzuki and Mitsubishi, which are reviving their investment initiatives post-financial crisis, each worth several hundred million dollars.

As of now, Vietnam has a car ownership rate of 18 vehicles per 1,000 individuals With the anticipated economic growth starting in 2020, along with rising per capita income and advancements in transportation infrastructure, there is expected to be a significant surge in demand for personal cars, particularly those with fewer than 10 seats.

The Ministry of Industry and Trade projects that Vietnam's automotive market will see significant growth, with an estimated 166,000 to 235,000 new cars in 2015, increasing to between 246,000 and 347,000 by 2020, and reaching 592,000 to 836,000 new cars by 2025 Notably, buses and trucks will represent only 27% of this growth, with the majority being personal vehicles.

Vietnam's commitments to ASEAN and its accession to the WTO necessitate a gradual reduction of tariff protections, particularly in the automotive sector The country has pledged to lower the auto import tariff from ASEAN nations to 0% by 2018, resulting in heightened competitive pressure from imported vehicles Consequently, this shift may diminish the appeal of Vietnam as a destination for investment and production.

If Vietnam fails to advance its auto industry for vehicles with fewer than 10 seats by 2025, the country could face an annual expenditure of $12 billion on car imports This situation threatens to create a significant trade balance deficit, raising concerns that Vietnam's burgeoning car market may become dominated by foreign manufacturers.

According to the forecasts, the market is entering into the motorization stage, it is expected to be after 2020

In 2011, significant changes impacted both the economy and the auto market in Vietnam A decline in the economy, coupled with a tightened monetary policy, resulted in high exchange and interest rates, contributing to a downturn in the auto market.

In 2011, statistics from the Vietnam Auto Manufacturers Association (VAMA) revealed that the Vietnamese auto industry possesses significant growth potential.

Type of car In 2010 In 2011 Increase

Table 3.2.2.1 The consumption of cars from 2010 to 2011 in Vietnam

In 2011, auto sales experienced a slight decline of 1% compared to 2010; however, manufacturers remain optimistic about the touring car segment, anticipating growth despite various industry changes.

According to the sales report from VAMA, the domestic auto market in the first 9 months of 2012 shows that the market has started to accelerate Although the sales in September

In 2012, sales experienced a decline of over 30% compared to the previous year; however, there was a 9% increase from August 2012 This indicates a market acceleration, suggesting that the final months of the year are expected to be prosperous.

Accordingly, the total sales of the market of the last month reached 7,669 vehicles, including 2,869 cars and 4,800 commercial vehicles, with the respectively increase of

In the latest report, auto sales in Vietnam showed a significant increase, with locally manufactured and assembled vehicles reaching 6,501 units, while imported cars saw sales rise to 1,168 units, marking a 9% growth compared to the previous month.

The report showed that after the first 9 months of 2012, the total auto sales of all members was 55,928 vehicles, reducing 32% as compared to the same period of last year

In which, the commercial vehicles segment decreased 26%, the multi purpose vehicles decreased 36% and cars decreased 40.8%

In 2011, Kia achieved significant success, with sales of their compact car rising by 2,779 units compared to the previous year, totaling 3,268 cars sold in 2010 This remarkable growth underscores the brand's strong performance in the automotive market.

In 2011, four of the top five best-selling cars in Vietnam were produced by the Japanese joint venture Toyota Vietnam The Corolla Altis secured the second position with 5,713 units sold over 11 months, while the Toyota Vios followed closely in third place with 3,522 sales The Fortuner ranked fourth with a total of 4,869 cars sold.

In 2011, among the members of VAMA, Truong Hai, with diversified types of vehicles, from buses, trucks to touring cars bearing Kia brand, had a prosperous business year,

31 thousand vehicles were sold, accounting for over 28% of market share

In Vietnam's automotive market, Toyota stands out as the most appealing brand for touring cars, holding the second-largest market share at 27% Notably, the majority of its offerings are touring cars, with the Hiace model being the sole exception as a commercial vehicle.

The Danang’s auto market analysis

Da Nang is experiencing a surge in auto sales, with official dealers from major brands like Toyota, Ford, Honda, Hyundai, GM Daewoo, Kia Truong Hai, VMC, and Isuzu This increase has led to overwhelming demand at existing dealerships, particularly in after-sales service Consequently, the necessity for more dealerships has become evident, prompting companies such as Hyundai and Truong Hai to establish additional locations to better serve the growing customer base.

3.3.1 The market share of Toyota in Da Nang City:

TOYOTA stands out as a top auto brand in Vietnam, offering a wide range of vehicles that cater to the diverse needs of customers across different segments With over a decade of experience in the Vietnamese market, TOYOTA has established itself as the preferred choice for consumers, thanks to its commitment to exceptional after-sales service and customer satisfaction.

The companies that are dealers of TOYOTA have achieved lots of success and sustainable development

Currently, in the area of Da Nang City, there is only one company trading Toyota autos that is Toyota dealer of Da Nang Toyota Enterprise

Table 3.3.1.1 The sale volume in the Central market from 2008 -2011

Table 3.3.1.2 The quantity of Toyota vehicles sold from 2008 -2011 at Central of Viet Nam

Toyota's market share in the Central region is relatively modest, ranging from 9% to 10%, while the overall market share for the Central region stands at approximately 14% compared to the national figures.

The Institute for Strategic Studies, Industrial Policies of the Ministry of Industry and Trade projects that from 2010 to 2015, Vietnam's demand for automobiles will rise significantly, increasing from an average of 18 vehicles per 1,000 people to approximately 50 vehicles per 1,000 people Additionally, vehicles with fewer than 9 seats are expected to dominate the market, comprising 70% of total vehicle sales.

The trend of vehicle import will increase because the auto industry has not made the necessary localization rate

Due to the influence of Circular 20, the genuine distribution companies will dominate the market

No Content In 2008 In 2009 In 2010 In 2011

Table 3.3.2.1 The forecast of viet nam automobile market

4 Market share in the Central (%)

Table 3.3.2.2 The forecast of Toyota production in the Central of Viet Nam (Source:

SWOT and Porter analysis

- Opportunity + Potential market + The number of Toyota autos in the market is very much so the demand for repair is high

+ Toyota brand is a strong one

-Threat + The change of macroeconomic policy to Auto industry

+ The competitors have the wide system of sales and services + There is scarce of

+ When the market faces the difficulties as present, the asking for license to open a dealer is much easier than the market with advantages human resources for Auto Business &

+ The financial resources and experience in the auto trading sector

+ Professionally trained and experienced staff

+ The facility investment matches with the brand

+ The development of the services of repair and spare parts to exploit the available potential

+ The establishment of professional sales and services model

+ The plan for the market expansion and the development of the sales network

+ The training and development of qualified and skilled staff

+ The establishment of good income policy to attract the human resources

+ The capital limit at the present time

+ It constantly improves and enhances the service quality

+ The organization of the advertisement, promotion, and PR programs to introduce the products and services to customers

3.4.2 Porter Five Forces Analysis: a Threat of new entrants

The automobile market poses a significant challenge for new entrants due to several barriers To successfully enter this industry, new companies must contend with the dominance of well-established brands, navigate restricted distribution channels, and meet substantial capital requirements These factors create a high entry threat, making it difficult for newcomers to compete effectively.

In Vietnam, automobile manufacturers such as Toyota Vietnam and Ford Vietnam impose stringent criteria for companies aspiring to become their 3S Dealers Notably, Toyota Vietnam emphasizes not only capital and dealership location but also rigorous human resource standards Key roles, including CEO, service manager, and marketing manager, are required to possess relevant experience and a proven track record in the automotive trading sector.

High barriers to entry in the automobile trading market, especially for Toyota products, pose significant challenges for new entrants Additionally, the bargaining power of suppliers further complicates the landscape for those looking to break into this competitive industry.

As a 3S Dealer of Toyota Vietnam, Savico operates under stringent guidelines set by Toyota Motor Vietnam (TMV), which holds significant power as a supplier The company must adhere to TMV's policies regarding pricing, payment terms, quality standards, sales processes, and after-sales service, as failure to comply could result in the loss of its dealer license Additionally, the high switching costs associated with changing suppliers—such as moving to Ford or Hyundai—further emphasize the strong bargaining power of suppliers in this industry.

The Company has two types of buyers

• The individual buyers (B2C sales form)

• The wholesale companies (usually the taxi companies buying vehicles of 4, 7 seats such as the taxi companies in Da Nang City: Mai Linh taxi, Han River Taxi, ) B2B sales form

In today's highly competitive automobile market, buyers wield significant bargaining power due to a limited number of wholesale buyers and a multitude of dealers offering similar products.

Da Nang offers a diverse selection of vehicles, including various brands like Toyota, giving buyers numerous options from multiple suppliers Additionally, the low switching costs make it easy for consumers to consider alternative products.

We expect the the revenue growth rate is from 5 % to 10%

In today's challenging economic climate, the competitive landscape of the automobile market has led dealerships to implement aggressive pricing and enhanced service quality, ultimately benefiting buyers with increased profits.

• Impact on quality / performances: Buyers are interested in the quality, the specifications of the products ợ Conclusion: The bargaining power of buyer is high d Threat of substitute products

The threat of substitute product is quite high because the big suppliers, the switching cost is not high e Industry competitors

As presented in the section of market and market share, currently, the automobile market in Vietnam has a fierce competition with so many brands and distributors

The main competitors of the Company in Da Nang market are Truong Hai Auto Joint

Stock Company (Kia Morning brand), Da Nang Toyota Enterprise and Cam Le Hyndai

Joint Stock Company and some others small competitors

Following is the statistics of the market share of the car manufacturers:

The competitors have a strong competition on the selling price and quality of service

Exit barriers: There is no barrier to exit the market

Overview about Savico

Saigon General Service Corporation (Savico) is a Joint Stock Company established in

Founded in 1982 and publicly traded on the Ho Chi Minh City Stock Exchange since 2009, Savico boasts a robust network of 9 subsidiaries and 15 joint ventures and associated companies With total assets amounting to 1,500 billion VND, Savico ranks among the top 500 companies in Vietnam based on asset size.

Address : 68 Nam Ky Khoi Nghia st., Distric 1, Ho Chi Minh City

Website : www.savico.com.vn

Email : savico@savico.com.vn

Savico's corporate strategy centers on enhancing trading services by organizing three key areas: Automobiles, Motorcycles, and additional trading services This approach aims to strengthen Savico's control over existing markets, boost market share, expand its customer base, and elevate brand recognition simultaneously.

Auto service and trading network: distributing top brands such as Toyota, Ford, GM –

Daewoo, Huyndai, Suzuki through subsidiaries and affiliated companies

- The Northern Vietnam region: Toyota Giai Phong JV Co., Ltd has created Toyota

Phap Van, Savico Hanoi Corporation is going to invest in Long Bien Toyota Co., Ltd which will be officially opened by the second quarter of 2010

- The Central Vietnam region: Dana Corporation (Dana Ford), Binh Dinh Ford branch, Gia Lai Ford branch (distributing Ford automobiles), Huyndai Song Han – Da Nang (distributing Hyundai automobiles)

In Ho Chi Minh City and Southeast Vietnam, several key automotive dealerships are making strides in the market Toyota East Saigon (TESC) has expanded its operations with the development of the Toyota Go Vap dealership and plans to venture into the used Toyota vehicle market Other notable distributors include Dong Do Thanh Co Ltd for Daewoo, Saigon Automobiles Co Ltd for Ford, Ben Thanh Ford Company also distributing Ford automobiles, Hyundai HCMC JV Company for Hyundai vehicles, and Saigon Ngoi Sao Corporation for Suzuki.

- The Mekong Delta region: established Toyota Can Tho Co Ltd (distributing Toyota automobiles), Savico Ford Can Tho Branch (distributing Ford automobiles).

Objective, Vision, Mission, Commitmen

In a highly competitive auto market, the company adopts a niche strategy for select products, targeting VIP customers with deluxe, high-quality offerings at premium prices Additionally, to swiftly gain market share, the company implements a market penetration strategy by setting lower selling prices than competitors, effectively attracting more customers to purchase their vehicles.

The specific characteristics about the strategy of car sales and strategy of products and services are as follows:

- Focus on the fleet customers (wholesale), who buy car for trading the taxi service

- Develop the service of used car purchase (with warranty policy) to promote the business of new cars

- Develop the sales team in the provinces in order to access, advertise and closely monitor the customers’ demand as well as the ability to finalize the sales contracts

- Establish the professional sales team and sales process

- Establish the financial services and other services to support the customers

- Cooperate with the driving schools to advertise the products and access the customers’ demand in the best and fastest way

4.2.2 The business strategy of services and spare parts

- Establish the standard process of after sales service

- Associate with the insurance companies to fully exploit the cars having accident for repair

- Develop the service of car care

- Develop the business service of accessories

- Develop the painting and repair service especially the fast painting and repair service

4.3 Objectives, Vision, Missions, Our Commitment

Establish a 3S (Sale, Service, Spartpart) Dealer to provide products and after-sales service of Toyota products in the Central region

Become the first leading Toyota supplier in the Central region’s market

- Meet the quality requirements of Toyota Vietnam

- Bring back profits to the shareholders

- Create more jobs for laborers

- Apply the new technologies in car repair for the environmental protection

- Contribute to the social community

- Always provide our customers with the best products and services

- Trade models of cars bearing Toyota brand Some main products of Toyota brand: Corolla Altis, Camry, Vios, InnoVa, Fortunner, Hiace S/Wagon, Land Cruiser, Hilux,

- Trade used cars bearing Toyota brand with warranty policy

- Trade spare parts, accessories of Toyota cars and similar products of other brands

- Provide car rental without driver, car rental with driver under the short-term and long-term contracts to the companies and individuals

- Provide the service of warranty and repair of models of cars bearing Toyota brand

Number Name of Cars Selling price

(USD) cost (purchase price) (USD)

Gross profit Gross profit margin

Table 4.4.1 The price of the product 4.5 Financial analysis

A company engaged in automobile trading typically organizes its business activities into three main departments: management, sales, and service Each department is allocated specific revenues, costs, and gross profits to ensure accurate accounting and administrative practices The details of these financial allocations are outlined in the accompanying income statement.

The cost allocation, depreciation calculation, accounting methods, and the tables included in this business plan adhere to Vietnamese accounting standards and tax management laws.

Using assumptions regarding the USD/VND exchange rate, interest rates, revenue growth, and expense growth, we calculated key financial indicators such as revenue, profits, Internal Rate of Return (IRR), and Net Present Value (NPV) across five different scenarios Detailed financial statements, including the Balance Sheet, Income Statement, and Cash Flow, are provided in the appendix below for each scenario.

For Scenario 1, we assump the exchange rate of USD/VND equal 21.630 (dong), interest rate is 1.17%/month (14%/year) and the growth rate as followed:

The growth rate of car sales % 5% 10% 10% 15% 15% 15% 15% 15% 15%

The growth rate of service customers 0% 5% 10% 10% 15% 15% 10% 10% 10% 10%

The growth rate of parts sales 0% 6% 12% 12% 18% 18% 12% 12% 12% 12%

The growth rate of service sales 0% 6% 12% 12% 18% 18% 12% 12% 12% 12%

The growth rate of personal expenses 10% 15% 15% 15% 15% 15% 15% 10% 10% 12%

The growth rate of other expenses 10% 15% 15% 15% 15% 15% 10% 10% 10% 12%

According to the Figure 1.1.of appendix 1, we can find the profit like that

In this situation, the project give the positive IRR (26.48%) The pay - back period of this project is 4 year 7 months The project has the NPV equivalent VND

The growth rate of car sales % 5% 5%

The growth rate of service customers 0% 5% 5%

The growth rate of parts sales 0% 6% 6%

The growth rate of service sales 0% 6% 6%

The growth rate of personal expenses 10 %

The growth rate of other expenses 10 %

According to the Figure 2.1 of appendix 2 , we can find the profit like that

We can find the result of P&L, IRR, NPV of Scenario 3, Scenario 4, Scenario 5 at the the appendix 3,4,5 The bref result is presented below:

The growth rate of service customers %

The growth rate of parts sales % 0

The growth rate of service sales % 0

The growth rate of personal expenses % 0

The growth rate of other expenses 0% 1

According to the Figure 4.1 of Appendix 4, we have the result of Profit:

The growth rate of personal expenses 10% 10% 10%

The growth rate of other expenses 10% 10% 10%

Exchange rate: 1 USD/1 VND = 21.420 Interest rate: 1.42%/month (17%/year)

The growth rate of service customers % 5% 10% 10% 15% 15% 15% 15% 15% 15%

In Da Nang City, banks typically offer interest rates ranging from 13.5% to 14% per year for common business projects However, these rates can fluctuate due to factors such as inflation, market demand, and government policies, leading to an assumed range of 14% to 18% Additionally, since the company enters into sales contracts with TMV in USD, any changes in the exchange rate between USD and VND will significantly impact the profitability of the business plan.

ANZ Bank forecasts that the USD/VND exchange rate will remain stable at 21,000 VND per USD through the end of 2012 However, our business plan anticipates a potential increase in the exchange rate of 2-3%.

The factors about interest rate, the difference of the foreign currency exchange rate, the revenue growth rate have a big impact on the results of the business plan

In scenario 2, the project features a 15% annual interest rate, with vehicle sales and repair revenue growth starting at 5% from the second year The payback period is 4 years and 10 months, while the Internal Rate of Return (IRR) stands at 24.68%, surpassing current bank interest rates Additionally, the Net Present Value (NPV) is valued at VND 16,104,082,413.

On the contrary, when the bank interest rate is from 16-18%, the breakeven time of the project lasts long, the IRR and NPV indicators are not good like that (scenario 4,5)

This business plan anticipates a sales and service growth rate of 5-10% starting from the second year, a target deemed both reasonable and achievable Savico's extensive experience in automobile trading, combined with a highly qualified team, supports this projection Notably, the CEO of Savico in Da Nang City brings over a decade of experience as a General Manager in the automobile sector, while key roles such as Marketing Manager and Service Manager are filled by industry veterans with deep market knowledge.

The business plan focuses on the assembly of Toyota-branded cars at the Toyota Vietnam plant Key risk factors include government policies affecting the automotive sector, such as tax regulations, cost structures, financial and monetary policies (including interest rates), and fluctuations in the exchange rate between the Vietnamese dong and the US dollar.

4.6.1 About the Government’s policies related to the auto sector:

The EuroCham White Paper highlights the significant effects of government policies on Vietnam's auto industry, urging the government to refrain from frequent tax adjustments that disrupt sector stability Such regular and substantial changes have led to significant disturbances in production lines, supply chains, and retail operations, creating artificial peaks and troughs in market demand Sudden increases in demand leave manufacturers and component suppliers struggling to keep up, while declines result in overproduction This instability adversely impacts company operations and consumer purchasing power, underscoring the need for a more consistent policy approach to support the auto sector.

EuroCham has conducted a thorough analysis before issuing its recommendations, noting the significant fluctuations in Vietnam's auto industry policies, particularly regarding taxes and costs These frequent changes have consistently elicited strong reactions from stakeholders in the sector.

In late 2008, the Government implemented a 5% increase in special consumption tax on cars with over five seats, followed by a significant rise in vehicle registration costs by 20% in Hanoi and 15% in Da Nang and Ho Chi Minh City by the end of 2011 This led to a tenfold increase in registration costs, prompting consumers to rush to purchase vehicles before the new policies took effect Consequently, demand for certain models surged, leaving manufacturers and importers unable to keep up, a stark contrast to the previously stagnant market conditions.

The Vietnamese Government's frequent changes to auto market policies, including increased registration costs and special consumption taxes, have led to a significant decline in market demand, as reported by Vama.

In the past three years, Vietnam's auto market has experienced a notable downturn, following a period of steady growth from 2006 to 2009 Since 2010, the market has faced a sharp decline, with forecasts from VAMA indicating continued challenges ahead.

2012, the whole market will only sell 100,000 vehicles, equivalent to the rate of 2008

The decline in the market identified by VAMA is attributed to the economic downturn, particularly due to rapid changes in Vietnam's tax and cost policies, including excessively high registration fees.

Financial analysis

A company engaged in automobile trading typically organizes its business activities into three main departments: management, sales, and service Each department is associated with specific revenue, cost price, and gross profits, which necessitates the accurate allocation of costs for effective accounting and administrative purposes This structure is further detailed in the accompanying income statement.

This business plan adheres to Vietnamese accounting standards and tax management laws in its cost allocation, depreciation calculations, and accounting methods, ensuring compliance with regulatory requirements.

We analyze five scenarios by calculating key financial indicators such as revenue, profits, IRR, and NPV, based on assumptions regarding the USD/VND exchange rate, interest rates, revenue growth rates, and expense growth rates Detailed financial statements, including the Balance Sheet, Income Statement, and Cash Flow, are provided in the appendix below.

According to the Figure 2.1 of appendix 2 , we can find the profit like that

We can find the result of P&L, IRR, NPV of Scenario 3, Scenario 4, Scenario 5 at the the appendix 3,4,5 The bref result is presented below:

In Da Nang City, banks typically offer interest rates ranging from 13.5% to 14% per year for common business projects However, these rates are influenced by various factors, including inflation, market demand, and government policies, leading to a potential range of 14% to 18% Additionally, as the company has signed sales contracts with TMV in USD, fluctuations in the exchange rate between USD and VND will significantly impact the profitability of the business plan.

ANZ Bank forecasts that the USD/VND exchange rate will remain stable at 21,000 VND per USD until the end of 2012 However, our business plan anticipates a potential increase in the exchange rate by 2-3%.

The factors about interest rate, the difference of the foreign currency exchange rate, the revenue growth rate have a big impact on the results of the business plan

In scenario 2, with an interest rate of 15% per year, the revenue growth rate from vehicle sales and repairs increases by 5% starting in the second year The project's payback period is 4 years and 10 months, while the Internal Rate of Return (IRR) stands at 24.68%, exceeding the current bank interest rate Additionally, the Net Present Value (NPV) is VND 16,104,082,413.

On the contrary, when the bank interest rate is from 16-18%, the breakeven time of the project lasts long, the IRR and NPV indicators are not good like that (scenario 4,5)

This business plan anticipates a sales and service growth rate of 5-10% starting from the second year, a target deemed reasonable and achievable due to Savico's extensive experience in automobile trading The CEO of Savico in Da Nang City brings over a decade of expertise as a General Manager in the automotive sector, complemented by a team of seasoned professionals in key roles such as Marketing and Service Managers, who possess in-depth market knowledge.

Risk analysis

The business plan focuses on Toyota-branded cars assembled at the Toyota Vietnam plant Key risk factors include government policies affecting the automotive sector, such as tax regulations, cost management, financial and monetary policies (including interest rates), and fluctuations in the exchange rate between the Vietnamese dong and the US dollar.

4.6.1 About the Government’s policies related to the auto sector:

The European Chamber of Commerce in Vietnam (EuroCham) highlights the significant impact of government policies on the country's auto industry, emphasizing the need for stable tax regulations Frequent and substantial tax adjustments have disrupted production lines, supply chains, and retail operations, leading to artificial peaks and troughs in market demand This volatility prevents manufacturers and component suppliers from effectively responding to sudden increases in demand, while also resulting in excess production during downturns Such fluctuations undermine production stability, adversely affecting company operations and consumer purchasing power.

EuroCham has conducted a thorough analysis prior to issuing its recommendations In recent years, Vietnam's automotive industry has experienced frequent changes in policies, particularly regarding taxes and costs, which have consistently elicited significant reactions.

In late 2008, the Government implemented a 5% increase in the special consumption tax on cars with over five seats By the end of 2011, registration costs surged to 20% in Hanoi and 15% in Da Nang and Ho Chi Minh City, leading to a tenfold increase in vehicle registration expenses This sudden rise prompted consumers to rush purchases ahead of the policy's implementation, resulting in a spike in demand for certain car models that manufacturers and importers struggled to meet This surge in demand sharply contrasted with the previously stagnant market conditions.

The Vietnamese Government's frequent changes to auto market policies, including increases in registration costs and special consumption taxes, have led to a significant decline in market demand, according to a report by Vama.

In the past three years, Vietnam's auto market has experienced a notable decline, contrasting sharply with its steady growth from 2006 to 2009 Since 2010, this market has faced a significant downturn, leading to forecasts by VAMA that indicate ongoing challenges ahead.

2012, the whole market will only sell 100,000 vehicles, equivalent to the rate of 2008

The decline in the market, as reported by VAMA, is primarily attributed to the economic downturn and rapid changes in Vietnam's tax and cost policies, particularly the high registration costs.

The Auto Transport Association reports that the auto transport market is significantly influenced by at least five types of taxes and nine types of costs, including import tax, VAT, environmental fees, and road tax.

During the seminar titled "The Current State and Solutions for Overcoming Challenges in Industry Development and the Vietnam Auto Market," organized by VAMA on September 27 as part of the Vietnam Motorshow 2012, industry experts emphasized the urgent need to revise tax and cost policies to boost demand in the automotive market.

4.6.2 The financial and monetary policy:

In 2012, the economic outlook remains challenging, with the government maintaining strict financial and monetary policies Bank interest rates are currently between 16-18%, making access to financing difficult If economic difficulties persist, these rates could rise to 21-22%, similar to levels seen in 2011, potentially impacting project efficiency.

4.6.3 The differential factor of the exchange rates:

The exchange rate fluctuations between the Vietnamese dong and the US dollar pose a significant risk to the project, as car purchases must be made in US dollars When exchange rates rise sharply, the cost of vehicles increases, directly impacting the project's revenue.

According to ANZ Bank's Q3 report, the Vietnamese Dong (VND) depreciated nearly 30% against the US Dollar (USD) from 2008 to 2011 In response to significant and prolonged discrepancies between official and free market exchange rates, the State Bank of Vietnam has adjusted the exchange rate policy Notably, on November 26, 2009, the bank implemented a 5.44% devaluation of the VND and reduced the exchange rate fluctuation margin from 5% to 3% Subsequently, on February 11, 2010, the USD/VND exchange rate rose by 3.36%, following the earlier adjustment.

According to the estimation of ANZ, the exchange rate of USD/USD will reach approximately 21,500 dongs, equivalent to VND with value loss of 2% for the whole year of 2012

Fluctuations in the exchange rate between the USD and VND significantly influence the project's input costs, ultimately affecting its overall efficiency.

The action plan

4.7.1 The location for dealer establishment

The Company has successfully secured a land lease for over 2,000 m² at 86 Duy Tan, with a lease term of 20 years This prime location in the heart of Da Nang city is just 1 km from Da Nang Airport and conveniently situated 4 km from National Highway 1 to the North and 7 km to the South Within a 2 km radius, numerous auto showrooms, including major brands like Honda and Hyundai, as well as individual truck and touring car dealerships, auto repair garages, and specialized service stores for tires and batteries, position this area as a burgeoning auto business and service hub for the future.

The land fund in central Da Nang City is nearly fully utilized, presenting a significant opportunity for Savico to develop long-term projects in the area.

- The expected area for the showroom and workshop of the Dealer is 2086m 2

- The Dealer will be designed and built in accordance with the set standard of TMV including working office for the departments, showrooms, and rooms for repair and body services

- The expected layout of the site is as follows:

The area for the showroom, working office 976m2

The area of the service center 1,223m2

No Items Group Unit Quantity

2 Main dealer in Da Nang

4 Two post lift Fixed assets piece 5.00

5 Four post lift Fixed assets piece 1.00

6 Scissor lift Fixed assets piece 1.00

7 Brake tester Fixed assets piece 1.00

8 Tire changing equipment Fixed assets unit 1.00

9 Other lifting equipment Fixed assets unit 1.00

Air conditioning repair equipment Fixed assets unit 1.00

11 Other workshop equipment Fixed assets pack 1.00

12 Testing & measuring equipment Fixed assets pack 1.00

13 Frame straitening equipment Fixed assets pack 1.00

14 Other body equipment Fixed assets unit 1.00

15 Electronic Diagnostic Tester Fixed assets piece 1.00

16 Paint curing lamp Fixed assets piece 1.00

17 Paint department Fixed assets piece 1.00

18 Network equipment for PC, Tel Fixed assets unit 1.00

20 Potable tools – Repair Equipments box 10.00

22 Service consulting counter Equipments counter 2.00

23 Manager’s table & chairs Equipments unit 7.00

24 Staff’s table & chairs Equipments unit 27.00

30 Potable tools – paint Equipments unit 4.00

33 Parts inventory Working capital warehouse 1.00

Table 4.7.2.1 The detailed investment plan:

No LIST OF INVESTMENT VND

Table4.7.2.2 Total The invesment plan

THE STRUCTURE OF INVESTMENT CAPITAL

The percentage of capital contribution

- Organize the advertisement on the mass media like: Tuoi Tre newspaper, Thanh Nien newspaper, Motorcycle Car Magazine, …

- Apart from the traditional methods mentioned above, the Company also uses Viral marketing method and e – marketing

The rise of personal communication technologies, including blogs, chat platforms, text messaging, email, and online feedback sites, has significantly enhanced the effectiveness of viral marketing strategies.

To effectively reach potential customers, the company will leverage online marketing strategies on social media and specialized car forums, recognizing that customers often seek information on these platforms before purchasing a vehicle or using repair services.

The company plans to purchase an advertising package through Google Ads, utilizing targeted keywords such as "car," "Toyota," and "cars trade." This strategy ensures that when customers search for these terms, they will be directed straight to the company's website.

- Organize the direct marketing campaigns to customers like: directly access customers, send mails, catalogues, leaflets Coordinate with the driving schools to advertise the products as well as access customerss

- Organize the gift programs to attract customers to the showroom for seeing cars

- Develop the loyal customer programs for sales and services

- Periodically organize the promotion and customer service programs

- Have mobile repair services to promote the image and brand

- Besides, the Company also works with the banks to support customers borrow capital for buying cars with the simplest procedures, the fastest time and lowest cost

- The company also grants scholarships to students of relevant industries: auto manufacturing, business administration to promote the image of the company and attract high quality human resources

To effectively prepare the human resources for the project, we establish a framework that includes essential roles Leveraging our extensive experience in the automobile industry, Savico boasts a team of skilled professionals, including seasoned staff and adept technicians Notably, the Dealer's CEO brings over 10 years of experience in leading an automobile trading company within the Central market.

To enhance the sales team's expertise, the Company has strategically recruited experienced professionals for key positions, including Sales Manager and Service Manager, who possess in-depth market knowledge These individuals will undergo training and practical experience at Ford and Hyundai in Da Nang City, ensuring a well-prepared workforce.

6.2 Customer Care Service Executive 02 College

Table 4.7.5.1 The anticipated number of human resources for the project

Foreman Sales Department 1 Sales Department 2

Marketing executive New customer care executive

General Accountant Payment Accountant Warehouse Accountant Treasurer

Human Resources Executive Admin Executive

CONCLUSION AND RECOMMENDATIONS

Conclusion

Currently, Savico is the leading company in the field of distribution of Toyota vehicles in Vietnamese market, accounting for 22.9% market share of TMV

With the fierce competition of the competitors in the industry, Savico must find the solutions to expand the market, increase the market share

In today's challenging market, developing a new dealership may seem risky, but it presents a unique investment opportunity for future growth as the market recovers The Central automobile market demonstrates significant potential, and Savico stands out among its competitors due to its strong human and financial resources, as well as its distinctive product offerings.

In our business strategy, we prioritize not only the sale of automotive products but also the investment and development of our repair and body service sector, which we believe is essential for sustainable growth This approach has proven effective, as evidenced by Savico's resilience during market downturns; while sales may decline, our revenue from the service sector ensures our survival Given the current volume of vehicles on the road, the demand for car repair and maintenance services remains robust.

We have analyzed the factors that may affect this business plan, identified our development strategy to prepare for the implementation of the business plan

The business plan shows the positive IRR, NPV, PBP indicators that are very useful for convincing the investor about the efficiency brought back by the project

Savico's establishment of the Toyota 3S Dealer in Da Nang City marks a significant milestone in its growth strategy As the automobile market begins to recover, this foundational dealership will pave the way for the expansion of satellite dealers and quick service centers in key Central and Highlands provinces such as Binh Dinh and Nha Trang This initiative aims to strengthen Savico's market presence in the Central region and throughout Vietnam.

Recommendations

To mitigate risks in the business plan, it's essential to develop alternative strategies In situations of force majeure that negatively impact the trading of Toyota products—such as serious technical issues or adverse publicity—it's important to pivot and consider trading other brands like Ford, Hyundai, and GM Daewoo Product sourcing can be facilitated through Savico's nationwide network of dealers.

The success of a company hinges on its people, making it essential to train officers and staff to enhance customer service quality Employees play a crucial role in fostering the company culture, upholding commitments to customers, and safeguarding the brand To support this, the company should implement a comprehensive remuneration policy clearly outlined in labor contracts Additionally, a rewards and salary structure based on employee performance is vital for motivation and efficiency.

A key aspect of the business plan is the repair service, where higher service quality directly correlates with increased profits Therefore, prioritizing the recruitment and training of skilled technicians is essential To retain and grow the customer base, building trust and actively listening to customer feedback are crucial strategies.

To increase the competition, it is necessary to bring back more benefits to customers and control the operation costs.

Appendix Table1 : P&L OF THE FIRST 10 YEARS OF THE PROJECT

456,406,628,629 502,047,291,492 577,354,385,216 663,957,542,998 763,551,174,448 878,083,850,615 1,009,796,428,207 1,161,265,892,438 1,335,455,776,304 1,535,774,142,749 Toyota parts cost of sales

0,715 7,046,370,844 8,314,717,596 9,312,483,707 10,429,981,752 11,681,579,562 13,083,369,109 Rental parts cost of sales

Appendix Table 2.1: ASSETS BALANCE OF THE FIRST 10 YEARS OF THE PROJECT

191,716,562 218,828,067 247,535,884 280,412,374 319,670,338 364,777,413 409,696,123 450,334,657 496,308,515 555,903,179 Car customer receivables 78,482,614,392 54,142,897,996 62,264,332,695 71,603,982,600 82,344,579,990 94,696,266,988 108,900,707,036 119,790,777,740 131,769,855,514 147,582,238,175 Service customer receivables 1,082,631,789 1,017,035,310 1,139,079,547 1,275,769,093 1,505,407,530 1,776,380,885 1,989,546,591 2,228,292,182 2,495,687,244 2,795,169,713

Appendix Table 2.2: P&L OF THE FIRST 10 YEARS OF THE PROJECT

Car sales 470,807,808,660 541,428,979,959 622,643,326,953 716,039,825,996 823,445,799,895 946,962,669,879 1,089,007,070,361 1,197,907,777,397 1,317,698,555,137 1,475,822,381,753 Toyota parts sales 6,778,844,868 7,185,575,561 8,047,844,628 9,013,585,983 10,636,031,460 12,550,517,123 14,056,579,178 15,743,368,679 17,632,572,920 19,748,481,670 Rental parts sales 104,289,921 110,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 242,205,672 271,270,353 303,822,795 Accessories sales 3,545,857,316 3,758,608,755 4,209,641,806 4,714,798,823 5,563,462,611 6,564,885,881 7,352,672,187 8,234,992,849 9,223,191,991 10,329,975,030 Repair sales 2,264,580,000 2,400,454,800 2,688,509,376 3,011,130,501 3,553,133,991 4,192,698,109 4,695,821,882 5,259,320,508 5,890,438,969 6,597,291,645 Welding sales 905,832,000 960,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 Painting sales 792,605,000 840,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903

Cost of sales 459,420,306,765 527,663,319,839 606,576,072,843 697,297,329,400 802,188,901,703 922,867,664,973 1,060,884,309,663 1,167,281,491,071 1,284,355,440,674 1,438,478,093,554 Car cost of sales 451,975,496,315 519,771,820,762 597,737,593,876 687,398,232,957 790,507,967,900 909,084,163,085 1,045,446,787,548 1,149,991,466,303 1,264,990,612,934 1,416,789,486,486 Toyota parts cost of sales 4,745,191,408 5,029,902,893 5,633,491,240 6,309,510,189 7,445,222,023 8,785,361,987 9,839,605,426 11,020,358,077 12,342,801,046 13,823,937,171 Rental parts cost of sales 104,289,921 110,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 242,205,672 271,270,353 303,822,795 Accessories cost of sales 2,482,100,121 2,631,026,128 2,946,749,264 3,300,359,176 3,894,423,828 4,595,420,117 5,146,870,531 5,764,494,994 6,456,234,393 7,230,982,520 Repair cost of sales 113,229,000 120,022,740 134,425,469 150,556,525 177,656,699 209,634,905 234,791,094 262,966,025 294,521,948 329,864,582

Car net margin 18,832,312,345 21,657,159,197 24,905,733,077 28,641,593,039 32,937,831,995 37,878,506,794 43,560,282,813 47,916,311,094 52,707,942,203 59,032,895,267 Toyota parts net margin 2,033,653,460 2,155,672,668 2,414,353,388 2,704,075,794 3,190,809,437 3,765,155,136 4,216,973,752 4,723,010,602 5,289,771,874 5,924,544,499 Rental parts net margin 0 - - - - -

Accessories net margin 1,063,757,195 1,127,582,627 1,262,892,542 1,414,439,647 1,669,038,783 1,969,465,764 2,205,801,656 2,470,497,855 2,766,957,598 3,098,992,510 Repair net margin 2,151,351,000 2,280,432,060 2,554,083,907 2,860,573,976 3,375,477,292 3,983,063,204 4,461,030,788 4,996,354,483 5,595,917,021 6,267,427,063 Welding net margin 905,832,000 960,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 Painting net margin 792,605,000 840,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903 Rescue net margin - - - - - margin - - - - -

Direct labor expenses 1,508,673,000 1,734,973,950 1,995,220,043 2,294,503,050 2,638,678,507 3,034,480,283 3,489,652,325 3,838,617,557 4,222,479,313 4,729,176,831 Basic salary 1,365,189,000 1,569,967,350 1,805,462,453 2,076,281,821 2,387,724,094 2,745,882,708 3,157,765,114 3,473,541,625 3,820,895,788 4,279,403,283

Production expenses 4,066,453,798 4,454,860,814 4,901,528,877 5,409,447,421 6,000,165,934 5,878,168,224 6,525,953,662 7,111,549,028 7,755,703,931 8,605,988,404 Personnel expenses 1,262,516,832 1,451,894,357 1,669,678,511 1,920,130,288 2,208,149,831 2,539,372,306 2,920,278,152 3,212,305,967 3,533,536,564 3,957,560,952 Raw materials, fuel expenses 18,000,000 20,700,000 23,805,000 27,375,750 31,482,113 36,204,430 39,824,873 43,807,360 48,188,096 53,970,668

Tools expenses 582,643,056 670,039,514 770,545,441 886,127,257 1,019,046,346 1,171,903,298 1,289,093,628 1,418,002,991 1,559,803,290 1,746,979,685 Depreciat ion expenses 1,477,073,724 1,477,073,729 1,477,073,729 1,471,324,000 1,471,324,000 670,000,000 670,000,000 670,000,000 670,000,000 670,000,000 Rental service expenses 245,580,000 282,417,000 324,779,550 373,496,483 429,520,955 493,949,098 543,344,008 597,678,409 657,446,250 736,339,800 Other expenses 480,640,186 552,736,214 635,646,646 730,993,643 840,642,689 966,739,092 1,063,413,001 1,169,754,301 1,286,729,731 1,441,137,299

Tools expenses 500,185,896 575,213,780 661,495,847 760,720,224 874,828,258 1,006,052,497 1,106,657,747 1,217,323,522 1,339,055,874 1,499,742,579 Depreciat ion expenses 365,376,000 365,376,000 365,376,000 365,376,000 365,376,000 363,000,000 363,000,000 363,000,000 363,000,000 363,000,000 Rental service expenses 284,379,996 327,036,995 376,092,544 432,506,426 497,382,390 571,989,749 629,188,724 692,107,596 761,318,356 852,676,559 Other expenses 595,799,996 685,169,995 787,945,494 906,137,318 1,042,057,916 1,198,366,603 1,318,203,263 1,450,023,589 1,595,025,948 1,786,429,062

Raw materials, fuel expenses 30,000,000 34,500,000 39,675,000 45,626,250 52,470,188 60,340,716 66,374,788 73,012,267 80,313,494 89,951,113 Tools expenses 175,447,104 201,764,170 232,028,796 266,833,115 306,858,082 352,886,794 388,175,473 426,993,020 469,692,322 526,055,401 Depreciat ion expenses 142,323,996 142,324,000 142,324,000 142,324,000 142,324,000 141,000,000 141,000,000 141,000,000 141,000,000 141,000,000 Rental service expenses 153,325,812 176,324,684 202,773,387 233,189,395 268,167,804 308,392,975 339,232,273 373,155,500 410,471,050 459,727,576 Other expenses 167,199,996 192,279,995 221,121,994 254,290,293 292,433,837 336,298,913 369,928,804 406,921,684 447,613,852 501,327,514

I.Cash flow from the business activities

3.Profits from the business activities before the change of working capital

(excluding borrowing interest, corporate income tax)

Net cash flow from the business activities

II Cash flow from the investment activities

Expenditures for procurement, construction of fixed assets, other long term assets

III Cash flow from Financing acitivities

Net cash flow from the financial activities

Net cash flow in the period

Cash and assimilated of period beginning

Cash and assimilated of period ending

15,743,368,679 17,632,572,920 19,748,481,670 Rental parts sales 104,289,921 10,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 242,205,672 271,270,353 303,822,795 Accessories sales 3,545,857,316 58,608,755 4,209,641,806 4,714,798,823 5,563,462,611 6,564,885,881 7,352,672,187 8,234,992,849 9,223,191,991 10,329,975,030 Repair sales 2,264,580,000 00,454,800 2,688,509,376 3,011,130,501 3,553,133,991 4,192,698,109 4,695,821,882 5,259,320,508 5,890,438,969 6,597,291,645 Welding sales 905,832,000 60,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 Painting sales 792,605,000 40,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903 Rescue sales - - - - - - - - - -

1,127,442,614,021 1,296,559,006,124 1,491,042,857,043 Toyota parts cost of sales 4,745,191,408 29,902,893 5,633,491,240 6,309,510,189 7,445,222,023 8,785,361,987 9,839,605,426

11,020,358,077 12,342,801,046 13,823,937,171 Rental parts cost of sales 104,289,921 10,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 242,205,672 271,270,353 303,822,795 Accessories cost of sales 2,482,100,121 31,026,128 2,946,749,264 3,300,359,176 3,894,423,828 4,595,420,117 5,146,870,531 5,764,494,994 6,456,234,393 7,230,982,520 Repair cost of sales 113,229,000 20,022,740 134,425,469 150,556,525 177,656,699 209,634,905 234,791,094 262,966,025 294,521,948 329,864,582

46,976,775,584 54,023,291,922 62,126,785,710 Toyota parts net margin 2,033,653,460 55,672,668 2,414,353,388 2,704,075,794 3,190,809,437 3,765,155,136 4,216,973,752 4,723,010,602 5,289,771,874 5,924,544,499 Rental parts net margin 0 - - - - - - - - - Accessories net margin 1,063,757,195 27,582,627 1,262,892,542 1,414,439,647 1,669,038,783 1,969,465,764 2,205,801,656 2,470,497,855 2,766,957,598 3,098,992,510 Repair net margin 2,151,351,000 80,432,060 2,554,083,907 2,860,573,976 3,375,477,292 3,983,063,204 4,461,030,788 4,996,354,483 5,595,917,021 6,267,427,063 margin 905,832,000 60,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 Painting net margin 792,605,000 40,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903

Rescue net margin - - - - - - - - - - Car care net margin - - - - - - - - - -

Direct labor expenses 1,508,673,000 59,540,300 1,908,471,345 2,194,742,047 2,523,953,354 2,902,546,357 3,337,928,310 3,838,617,557 4,414,410,191 5,076,571,719 Basic salary 1,365,189,000 01,707,900 1,726,964,085 1,986,008,698 2,283,910,003 2,626,496,503 3,020,470,978 3,473,541,625 3,994,572,869 4,593,758,799 Wages - - - - - - - - - -

Production expenses 4,066,453,798 91,734,972 4,828,934,158 5,325,963,494 5,904,159,418 5,767,760,730 6,398,985,044 7,111,549,025 7,916,319,226 8,896,702,090 Personnel expenses 1,262,516,832 88,768,515 1,597,083,792 1,836,646,361 2,112,143,315 2,428,964,812 2,793,309,534 3,212,305,964 3,694,151,859 4,248,274,638 Raw materials, fuel expenses 18,000,000 20,700,000 23,805,000 27,375,750 31,482,113 36,204,430 39,824,873 43,807,360 48,188,096 53,970,668

Tools expenses 582,643,056 70,039,514 770,545,441 886,127,257 1,019,046,346 1,171,903,298 1,289,093,628 1,418,002,991 1,559,803,290 1,746,979,685 Depreciat ion expenses 1,477,073,724 77,073,729 1,477,073,729 1,471,324,000 1,471,324,000 670,000,000 670,000,000 670,000,000 670,000,000 670,000,000 Rental service expenses 245,580,000 82,417,000 324,779,550 373,496,483 429,520,955 493,949,098 543,344,008 597,678,409 657,446,250 736,339,800 Other expenses 480,640,186 52,736,214 635,646,646 730,993,643 840,642,689 966,739,092 1,063,413,001 1,169,754,301 1,286,729,731 1,441,137,299

Tools expenses 500,185,896 75,213,780 661,495,847 760,720,224 874,828,258 1,006,052,497 1,106,657,747 1,217,323,522 1,339,055,874 1,499,742,579 Depreciat ion expenses 365,376,000 65,376,000 365,376,000 365,376,000 365,376,000 363,000,000 363,000,000 363,000,000 363,000,000 363,000,000 Rental service expenses 284,379,996 27,036,995 376,092,544 432,506,426 497,382,390 571,989,749 629,188,724 692,107,596 761,318,356 852,676,559 Other expenses 595,799,996 85,169,995 787,945,494 906,137,318 1,042,057,916 1,198,366,603 1,318,203,263 1,450,023,589 1,595,025,948 1,786,429,062

+ Allocation expenses 1,834,326,708 29,825,629 2,312,950,874 2,638,544,905 3,012,978,041 3,442,252,148 3,884,544,001 4,387,890,033 4,960,919,414 5,641,664,604 Personnel expenses 1,166,029,800 82,632,780 1,475,027,697 1,696,281,852 1,950,724,130 2,243,332,750 2,579,832,663 2,966,807,562 3,411,828,696 3,923,603,000 Raw materials, fuel expenses 30,000,000 34,500,000 39,675,000 45,626,250 52,470,188 60,340,716 66,374,788 73,012,267 80,313,494 89,951,113 Tools expenses 175,447,104 01,764,170 232,028,796 266,833,115 306,858,082 352,886,794 388,175,473 426,993,020 469,692,322 526,055,401 Depreciat ion expenses 142,323,996 42,324,000 142,324,000 142,324,000 142,324,000 141,000,000 141,000,000 141,000,000 141,000,000 141,000,000

Rental service expenses 153,325,812 76,324,684 202,773,387 233,189,395 268,167,804 308,392,975 339,232,273 373,155,500 410,471,050 459,727,576 Other expenses 167,199,996 92,279,995 221,121,994 254,290,293 292,433,837 336,298,913 369,928,804 406,921,684 447,613,852 501,327,514

1,044,837,821,490 Toyota parts cost of sales

17,857,757,735 Rental parts cost of sales 104,289,921

1,322,490,186,253 1,520,863,714,191 Toyota parts cost of sales 4,745,191,408 5,314,614,377 5,952,368,102 6,666,652,274 7,866,649,683 9,282,646,626 10,396,564,221 11,644,151,927

13,041,450,158 14,606,424,177 Rental parts cost of sales 104,289,921 116,804,712 130,821,277 146,519,830 172,893,399 204,014,211 228,495,916 255,915,426

Tiêu đề	The Business Plan For Establishing Toyota 3S Dealer Of Savico In Da Nang City
Tác giả	Le Thi Quy
Người hướng dẫn	Dr Trinh Thuy Anh
Trường học	Ho Chi Minh City Open University
Chuyên ngành	Master in Business Administration
Thể loại	Master Project
Năm xuất bản	2012
Thành phố	Da Nang City

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Số trang	63
Dung lượng	0,93 MB