MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS Suggested Capital Mobilization Project for Purchasing New Vehicles in order to Conduct the Driving Training Operation at t[.]
MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS Suggested Capital Mobilization Project for Purchasing New Vehicles in order to Conduct the Driving Training Operation at the Driving Test Centers – Ho Chi Minh City College of Transportation In partial fulfillment of the requirements for the degree of Masters of Business Administration Advisor: Dr Chih-Shing Tau Co-advisor: Dr Nguyen Van Hoa Graduate Student: Nguyen Thi Thuy Ngan December, 2010 ACKNOWLEDGMENTS I owe a great many thanks to a great many people who helped and supported me during the writing of this thesis First of all, a deepest gratefulness to my supervisor, Dr Chih-Shing Tau, whose encouragement, guidance and support from the initial to the final level enabled me to carry out this thesis I also wish to thank to Nguyen Van Hoa for his kindness on evaluating my thesis as a second supervisor and his willingness to help me whenever I need Then I am indebted to thank Mr Nguyen Trong Diep, my boss as well as my classmate, and many of my colleagues to support me and encourage me to complete this task so that I will not procrastinate in doing it I would like to express my deep sense of gratitude to all experts, especially to Mr Duong Tu Luc, Mrs Truong Thi Huong Viet, Mrs Le Minh Thu, Mr Nguyen Minh Tri, and Mr Quach Hong Ha, for their valuable advice on in some stages of my research Special thanks go to my friends who had always directly and indirectly supported me as well as offered me much of valuable instructions, suggestions and advice during my study process Above all, a special thank to my husband, my sons for the great love and encouragement for me throughout the 2-year EMBA course My deepest thanks go to my parents and parents-in-law who helped me to look after my sons while I was studying and injured after a serious accident Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the study I Suggested Capital Mobilization Project for Purchasing New Vehicles in order to Conduct the Driving Training Operation at the Driving Test Centers– Ho Chi Minh City College of Transportation ABSTRACT Socializing education, health, cultural activities is an important and long-term method in economic, social development strategy of Vietnam To perform socializing policy, the government encourages public career departments to implement to mobilize capital by contributing shares, contributed capital from worker in the departments, mobilizing other cooperated capital resources via cooperation, association with enterprises, economic organization, financial organization, domestic and abroad individuals to invest in building material facilities HCM City College of Transportation is a state school; it has a driving-training center and a driving-test center to teach driving and serving the test to issue driving license Because the requirement of learning driving will continue to increase therefore the college has advocated to mobilize capitals to purchase driving-school cars in order to increase drivingtraining flow Hence, the capital mobilization project for the driving test center is very important The research aimed at seeking out solutions for optimal capital mobilization project for purchasing new vehicles in order to conduct the driving training operation at the Driving Test Centers– Ho Chi Minh City College of Transportation The In-depth interview was conducted with interviewees are academic experts and experts in transportation, education, finance They are now the senior managers; experts have a lot of experiences in the domain of learning and work to find out effectively capital mobilization project Their responses were analyzed to get the answers for the research questions Keywords: Driving Test Centers, Capital Mobilization Project, Capital Loan from Bank, Capital from Staff Members, Capital Budget II Suggested Capital Mobilization Project for Purchasing New Vehicles in order to Conduct the Driving Training Operation at the Driving Test Centers – Ho Chi Minh City College of Transportation Contents ACKNOWLEDGMENTS I ABSTRACT II Contents III Tables V Figures VI Chapter1 Introduction 1.1 Background and Motivation 1.2 Research Purposes, Objectives and Questions 1.3 Research Scope and Limitations 1.4 Research Procedure 1.5 Definition of Terms Chapter2 Literature Review 2.1 General Theory of Production Investment Capital 2.1.1 Capital definition 2.1.2 Characteristics 10 2.1.3 The role of business production capital 12 2.2 Structure of Business Production Capital 12 2.2.1 Fixed capital 13 2.2.2 Current capital 14 2.3 Forms of Capital Mobilizing 15 2.3.1 Provision resource from internal of enterprise 15 III 2.3.2 Provision resource from external 16 2.4 Factors Influence the Ability of Corporate Capital Mobilization 19 2.4.1 Real financial situation of enterprise 19 2.4.2 Influential factor 19 2.5 The Basis for Determining Investment Requirement That Needs to Be Mobilized 20 2.5.1 Liquidity ratios 21 2.5.2 Activity ratios 21 2.5.3 Financial leverage ratios 22 2.5.4 Profitability ratios 22 Chapter Research Methodology 24 3.1 Research Method 24 3.1.1 Descriptive statistics 24 3.1.2 In-depth interview 25 3.1.3 Participants of in-depth interview 25 3.1.4 Design the questions 26 3.2 Reliability and Validity 27 3.3 Data Collection 28 3.3.1 Primary data 28 3.3.2 Secondary data 28 3.4 Data Analysis 29 Chapter Research Results and Analysis 31 4.1 Status of Driving Test Centers and the Needs to Learn Driving 31 4.1.1 Status of the driving test centers 31 4.1.2 Demand of society to learn driving 32 4.1.3 Preliminary survey about contributed ability 33 4.2 Regulations on Raising Capital 33 4.3 Evaluating Selection of Feasible Plan 35 4.4 Select the Most Feasible Plan 35 4.4.1 Estimates of revenue – expenditure of investment plan to supplement driving cars by raising capital from staffs of center 36 IV 4.4.2 estimates of revenue – expenditure of investment plan to supplement driving cars by capital loans from bank 38 4.4.3 The opinions of experts 40 4.3.4 Conclusion 42 Chapter Implications, Conclusions and Recommendations 44 5.1 Conclusions 44 5.1.1 Status of facilities (driving car) of driving test centers and supply and demand on learning of society 44 5.1.2 Find out the options for raising capital for driving test centers 45 5.1.3 Evaluation and selection of optimal capital mobilization for driving test centers 45 5.2 Solution to Implement Optimal Plan for Raising Capital for Center 45 5.2.1 Exploring the possibility of raising capital 45 5.2.2 Process of investment plans to supplement driving the car for the driving test centers with raising capital from officer of center 46 5.3 Limitations of Research Topics 47 References 48 Attachment 49 Attachment 51 Attachment 61 V Tables Table Summary of Interviewees’ Biography 25 Table Presents theIncrease in Training Scale of Years From 2006 to 2010 33 Table Waiting Time of Students to Learn Driving in Some Driving Center 33 Table Estimated Revenue - Expenditure of Investment Plan to Supplement Driving Cars by Raising Capital from Staffs of Center 36 Table Specific Content of Basic Expenses - Expenditure of Investment Plan to Supplement Driving Cars by Raising Capital from Staffs of Center 36 Table Estimated Revenue - Expenditure of Investment Plan to Supplement Driving Cars by Capital Loan from Bank 38 Table Specific Content of Basic Expenses - Expenditure of Investment Plan to Supplement Driving Cars by Capital Loan from Bank 39 Table Presents the General Opinions of Three Experts 41 Table Presents the General Opinions of Two Experts 42 Table 10 Compares the Feasibility of Two Options 42 V Figures Figure The Basic Steps for Research Methodology Figure Capital Mobilization Diagram 10 Figure Capital Mobilization Diagram - Phase 11 Figure Capital Mobilization Diagram - Phase 11 Figure Capital Mobilization Diagram - Phase 12 VI ... chosen the theme: ? ?Suggested capital mobilization project for purchasing new vehicles in order to conduct the driving training operation at the Driving Test Centers? ?? Ho Chi Minh City College of. .. II Suggested Capital Mobilization Project for Purchasing New Vehicles in order to Conduct the Driving Training Operation at the Driving Test Centers – Ho Chi Minh City College of Transportation. .. in any respect during the completion of the study I Suggested Capital Mobilization Project for Purchasing New Vehicles in order to Conduct the Driving Training Operation at the Driving Test Centers? ??