(TIỂU LUẬN) thacos financial and business activities in the period from 2017 to 2019

ADVANCE FINANCIAL MANAGEMENT Thaco's financial and business activities in the period from 2017 to 2019 LECTURER: Nguyễn Thúy Anh Class: Anh 01 - CTTT QTKDQT - K57 Group TB Member Phạm Việt Hùng: 1810280011 Phạm Nam Long: 1810280014 Đỗ Thế Tuấn Bình: 1816280028 Nguyễn Trần Hồng: 1811280044 Nguyễn Đức Long: 1811280056 INDEX I Introduction ………………………….………………….… …….… II Internal Environment Analysis ………… ………………………… III Financial Analysis…………… ……….………………….…………… IV Recommendation…….………………… ……………… ………… 28 V References……………………… … …………………………………31 I Introduction: Introduction: Truong Hai Auto Corporation (THACO) was founded on 29/04/1997 by Tran Ba Duong majoring in Mechanical and Automotive THACO also invests in Agriculture, Construction investment, Logistics, and Trade & Service THACO is the leading and largest enterprise in Vietnam in the field of Automobile production and assembly, with a value chain from product research and development (R&D), production of spare parts, and assembling to transporting and distribution, retail THACO’s products contain a full range of products: trucks, buses, passenger cars, special-use vehicles and full segments from mid-end to high-end with sales and market share always leading the Vietnamese market for many years Overview: - With Agriculture investment, THACO has established the THADI company which operates in the agricultural sector with main businesses: fruit trees, cereals, forestry, livestock, and agricultural materials - With Construction investment, THACO invests in the construction of traffic works in the PPP form and socialization, construction of industrial zones, investment in new urban development, and complex projects - In the field of Logistics, THACO’s logistics activities include Port Services, Shipping, Trucking, Warehouse meeting the needs of businesses in Chu Lai New Urban Area, and Central Region - Central Highlands - In the field of Trade - Services: THACO develops various types of business such as wedding convention center, supermarket, food business, entertainment, and provides car rental, security, cleaning, maid services, tree care, - THACO implements the business philosophy of creating value for customers and society, creating conditions for human resources to develop in line with the group’s unlimited development strategy - As a leading enterprise in the field of manufacturing, assembling, and distributing cars in Vietnam, THACO has determined that its target is to maintain this position while expanding the market in the ASEAN region, enhancing international cooperation to select the right technology, increase the localization rate, join the global value chain, create a foundation for development into a multidisciplinary industrial corporation, improve competitiveness to reach the position of goods to be on the top of the area Industry Analysis: THACO’s goal is to become a multidisciplinary industrial group of Vietnam with ASEAN regional stature, in which automobile production and businesses are the keys ● Evaluation of investment opportunities - Vehicle sales growth has slowed down in the 2017 - present period - The State has introduced many policies to support the automobile industry but has not yet obtained outstanding results - Infrastructure does not meet the demand for cars The low localization rate leads to high prices - Vietnam benefits very little in the supply and production chains of regional automakers Oversupply - It is forecasted that the car supply in 2020 will continue to be abundant - Fierce competition from imported cars - The demand for assembled cars declined significantly ● Long-term (>5 years): LOOKING POSITIVE - The stable macro environment supports growth in car demand - A potential market with a large population and a low vehicle-to-population ratio - The trend of moving car production from the Americas and Europe to Asia - Participate more deeply in the automotive supply chain in ASEAN and Asia - Government determination in the development of the automobile industry II Internal Environment Analysis: Corporate Governance ● Corporate Governance Analysis: The Board of Director executes the right to administrate the company through regular meetings of the permanent members, in form of written Resolutions The Board of Director provides direct supervisions to theManaging Directors, including but not limited to the following activities: - Executing the plans and targets set by the General Meeting of Shareholders and the Board of Director - Executing the Resolutions issued by the General Meeting of Shareholders and the Board of Directors – in terms of progresses and methods - Actively and frequently evaluate the execution of business strategies and economic statistics and provide feedback and directions where necessary - Monitoring the implementation of corporate laws, company policies and other regulations The Board of Director of THACO is not divided into subcommittees, however, each member are assigned to specific fields of operations, including: - One member representing the capital contribution of the family - One member in charge of the foreign relationships and business in foreign countries - One member in charge of the agriculture field, representing the capital contribution of the company at HAGL Agrico - Two members in charge of finance and risk management - One member in charge of accounting activities - One member in charge of training and development - Three members in charge of supervising the main businesses of the company ● The Board of Directors: - Mr.Trần Bá Dương: Chairman of the Board - Mr Nguyễn Hùng Minh: Vice Chairman of the board - Mr Phạm Văn Tài: CEO of THACO - Mr Cheah Kim Teck: CEO of JC&C - Mr Stephen Patrick Gore: CFO ofJC&C - Mr Lee Yong Bum: Head of FDI Investment department at Techcombank - Mr Đỗ Xuân Diện: Chairman of the Board of THADI - Mrs Nguyễn Thiện Mỹ - Mr Nguyễn Phúc Thịnh - Mr,Nguyễn Quang Bảo - Mrs Viên Diệu Hoa Position Assessment: Using BCG’s Matrix ● BCG’s Matrix: - Stars: Products in high growth market with high market share: THACO’s star products are the production and distribution of automobiles Until 2/2020, THACO is the leading company in Vietnam with 34.1% market share, with a total of 5.684 automobiles sold, an increase of 12% compared to the previous year - Question marks: Products in high growth markets with low market share Entering the agriculture business, THACO has acquired a 35% stake in Hoang AnhGia Lai Agrico (HNG) Later, the Group established THADI Corporation which specializes in producing, processing and trading fruit trees, cereals, livestocks, forestry and agricultural materials Both companies were not listed among the biggest agriculture companies in Vietnam, although the agriculture field is developing fast - Dogs: Products with low growth or market share Commerce plays a supporting role for THACO's main production and business fields They are now developing business complexes which include commercial centers, convention centers, offices, hotels, supermarkets, food courts, entertainment centers and cinemas via the partnerships with experienced and competent partners Commerce is not a fast-developing field and THACO’s new ideas are yet to be in the position to compete with other commerce corporations in Vietnam - Cash cows: Products in low growth markets with high market share THACO does not have any product in this type ● Position assessment: THACO is currently the biggest and fastest growing automobile corporation in Vietnamese’s market III Financial Analysis: Financial Analysis: - After analyzing the internal structure of the Thaco car manufacturing company, in this part, we are going to discuss the financial operations of the company, in other words, conduct financial analysis of Thaco in years so far Our financial analysis is always correlated to the organization's financial goals 1.1 Ratio analysis-Time series and Peer analysis 1.1.1: Liquidity Analysis: - To analyze the ability to pay their debts, the liquidity analysis is an effective tool Liquidity analysis consists of the cash ratio, quick ratio and current ratio - The cash ratio is used to determine whether the organization can pay the current liabilities using readily available assets, which is cash It is computed by dividing the amount of cash and its equivalent into its current liabilities - The quick ratio, in other words, the acid test ratio, measures the ability to pay its current liabilities by the liquidation of short-term assets, therefore characterize the company’s position The ratio is computed by dividing current assets without inventories with current liabilities - Lastly, the current ratio, which compares the current assets with the current liabilities of an organization Table 1.1: Liquidity Ratio Analysis Ratios 2017 2018 2019 Cash ratio 0.014 0.015 0.025 Quick ratio 0.34 0.53 0.37 Current ratio 1.21 1.22 1.022 - According to the data, the cash ratio in 2019 was nearly twice higher than both the year 2017, 2018, which means that Thaco’s ability to use cash to pay their liabilities in 2019 was better However, the quick ratio in 2019 was30%lower than that of 2018 This ís due to the fact that although Thaco had a10% increase in current assets (54689802 million dong in 2019 vs 49668342 million dong in 2018), the increase in the number of inventories from 2018 to 2019 was faster at the rate of 24,48% (34770542 million dong in 2019 vs 27933055 million dong in 2018) Especially,the current liabilities in 2019 was 53520207 million dong, 31,23% higher than that of 2018 (40781960 million dong) The faster increasing pace in current liabilities and inventories than current assets was the culprit of the reduction of the ability to liquid already available assets to pay off their debts The current ratio, though there was a slight improvement from 2017 to 2018, the ratio had a significant downfall in 2019, due to the faster pace in current liabilities than current assets The reason behind the 30% increase in current liabilities was that the company focused on increasing financial leverage based on debt funding, mostly because of their opening of new car manufacturing facilities and the cooperation with some international car brands Overall, although the company’s capability to convert their assets into cash to pay off their liabilities worsened somewhat, the current assets of the company are high enough to cover the debts 1.1.2: Efficiency analysis - About efficiency analysis, this measures how effective the business operates from year to year by the use of the capital, assets and resources to generate profit, revenue Thaco’s main industry is manufacturing automobiles and its parts, however, they invest some funds for the real estate, service and agriculture products industry In this case, we use the data from the joint financial statements, so we have to combine the revenues from all industries with each other, and so does the expenses and cost of goods sold There are categories for efficiency analysis, including inventory turnover ratio, accounts receivable turnover ratio, asset turnover ratio and accounts payable turnover ratio - Inventory turnover ratio is measured by dividing the cost of goods sold with average inventory per year This interprets the number of times an enterprise sells out of its stock of goods within a given period of time - Accounts receivable turnover ratio is measured by dividing net credit sales (sales- sales return and allowances) with average accounts receivable (sum of starting and ending accounts receivable, usually quarterly or annually, divided by 2), evaluates the efficiency of revenue collection and how many times the firm have to collect its receivables at a given period of time, mostly yearly - Asset turnover is measured by dividing the organization’s net sales with its average total assets (sum of ending and beginning total assets divided by 2) This ratio demonstrates how efficient the firm uses its total assets to produce revenue - Accounts payable turnover ratio is calculated by dividing the net credit purchases (cost of goods sold + ending inventory – only in automobile manufacturing but also in producing mechanical parts for automobile manufacturers in Vietnam like Toyota, Honda, etc Both Thaco and Veam Motors are domestically established firm, so they are considered direct competitors among car manufacturing industry, unlike Toyota (TMV) and Honda Both of them, although gained a good amount of profit in many years, they are multinational, so they are compared in different sector of the industry In terms of balance sheet comparison, we can see a big difference between the two Thaco's Total assets were more than twice as high as that of Veam Motor Despite Thaco had almost the same stockholder’s equity as Veam in 2017, the former had better pace than the latter However, the trend among liabilities of Thaco and Veam Motors went in opposite directions Veeam's total liabilities plummeted from 4.7 billion dong in 2017 to 1.5 billion in 2018, then recovered to 6.4 billion dong last year On the other hand, Thaco’s figure skyrocketed from 33,9 billion dong in 2017, to 67.5 billion in 2019, in addition to their times larger amount In terms of capital structure, we can see the bigger picture, while Thaco was debt-leveraged, Veam was equity leveraged In terms of financial ratio, the difference among the two is not large From 2018 to 2019, both firms had a downfall in efficiency and liquidity ratios, because they cannot generate enough revenue and profit to increase the ratio From that, we can see the whole picture of the car industry in 2019, where domestic manufacturers cannot gain much profit because of the enactment of the law which tax from ASEAN imported cars decreased to 0%, while international ones used this opportunity to import cars with a much cheaper price and they can create better promotion campaigns Thaco is one of the leading manufacturers, they can manufacture good and affordable cars, however, they received less revenue due to the bid amount of debt leveraged 1.2: Common size Analysis 16 - After the ratio's analysis, the common size analysis is a tool to analyze financial statements from year to year It is a way to identify the contribution of each vital category in the financial statement to assess the performance of the firm in each period of time In this report, our group analyze the income statement and balance sheet of Thaco We use total assets as the basis for common size balance sheet analysis, sales revenue is used for income statement Table 1.7: Balance Sheet Common Size Analysis Categories 2017 Amount 2018 Percent (Billion) Current Assets Amount 2019 Percent (Billion) Amount Percent (Billion) 38496.7 63.6% 49668.3 66.4% 54689.8 51.2% Cash and 450.085 Equivalents 0.74% 607.810 0.81% 1339.77 1.25% Short term 521.288 Investments 0.86% 2662.74 3.56% 211.33 0.2% Current AR 8351.14 13.8% 17417.6 23.3% 16918.3 15.8% Inventories 27570.8 45.5% 27933.1 37.3% 34770.5 32.6% Current 1603.48 2.65% 1087.09 1.45% 1449.82 1.36% Other Assets 17 Long-term Assets 22041.1 36.4% 25167.5 33.6% 52104.8 48.8% Long term AR 148.51 0.24% 125.56 0.17% 930.51 0.87% Fixed Assets 8454.17 14% 11893 15.9% 24121 22.6% Long-term Investments 8383.8 13.8% 8755.65 11.7% 22551.2 21.1% Other Long-term 427.48 Assets 0.71% 474.67 0.63% 1029.94 0.96% Commercial Advantage 4627.14 7.64% 3918.62 5.24% 3472.13 3.25% Total Assets 60537.8 100% 74835.8 100% 106795 100% Current 31919.6 52.7% 40782 54.5% 53520.2 50.1% Short term AP 9481.3 15.7% 15237.6 20.4% 20677.7 19.4% Taxes Payable 947.75 1.57% 1261.1 1.69% 1192.2 1.12% Salaries Payable 1.042 0.002% 4.204 0.006% 27.87 0.03% Liabilities 18 1174.4 1.94% 1705.06 2.28% 1657.57 1.6% ST Unearned 3.6 Revenue 0.006% 2.585 0.003% 335.94 0.31% Other Ex 0.55% 196.06 0.26% 306.51 0.29% 31.2% 22270.3 29.8% 29152.9 27.3% Accrued Expenses Accrued 331.56 Leasing 18879.4 Back expenses up 51.6 0.08% 93.67 0.13% 153.34 0.14% Rewards Expenses 8.06 0.01% 11.55 0.02% 16.17 0.01% 3.3% 2891.9 3.86% 13976.3 13.1% Long Liabilities term 2017.4 Total Liabilities 33937 56.1% 43673.9 58.4% 67496.5 63.2% Stockholders Equity 26600.8 43.9% 31161.9 41.6% 39298.5 36.8% Total Liabilities 60537.8 100% 74835.8 100% 106795 100% + SE 19 - According to Table 1.7, in terms of assets, current assets had a majority in Thaco’s total assets in all three years However, the figure was prone to go down from 2018 to 2019 because of the increasing number of long-term assets through investments The reduction in Thaco's Current assets was linked to the liquidity analysis before The fall of quick ratio and current ratio from 2018 to 2019 accounted for the downfall of the current assets About liabilities, most of them consisted of current liabilities, which accounted for over 50% of total assets This correlated to the leverage ratio analysis, where the debt to equity and debt to total assets increased in all of the three years due to the accelerating number of current liabilities (from 56.06% in 2017 to 63.20% in 2019) This reflected that Thaco generated debt through the construction of factories, leasing infrastructures, equipment and localization of international car brands Moreover, leverage ratios demonstrated that the firm was debt-leveraged, that was why the percentage of equity over debt was lower in all three years (they could not reach 45% in all three years) There was an opposite trend among total liabilities and total stockholder’s equity, while total liabilities per total assets went up from 56.1% in 2017 to 63.2% in 2019, total stockholder’s equity per total assets went down from 43.9% to 36.8% Overall, the firm though had a surge in total assets in the latest three years, the distribution of total liabilities and total equity went opposite Table 1.8: Income Statement Common Size Analysis Category 2017 Amount (Billion) Sales Revenue 49701.5 2018 Percent Amount 2019 Percent Amount (Billion) Percent 100% 56538.39 100% (Billion) 100% 59123.21 20 Sales Return 53.18 and Allowances 0.11% 40.7 0.07% 30.69 0.05% Net Sales 49648.4 99.89% 59082.51 99.93% 56507.7 99.95% COGS 40483.7 81.45% 47350.41 80.09% 46638.8 82.49% Gross Profit 9164.7 18.44% 11732.1 19.84% 9868.9 17.46% Financing Revenue 413.21 0.83% 682.51 1.15% 841.41 1.49% Financing Expenses 910.35 1.83% 1578.45 2.67% 2255.97 3.99% Gain/ Loss on 0.031 joint ventures 0.00% -0.044 -0.00% -292 -0.52% Sales operation expenses 1645.27 3.31% 1938.98 3.28% 2619.4 4.63% Firm 1651.95 3.32% 1934.25 3.27% 2156.32 3.81% management Expenses 21 Earnings from 5370.37 business ops 6962.89 11.77% 3386.35 6% Other revenues 284.65 0.58% 160.04 0.28% 2296.36 4.06% Other expenses 190.22 0.38% 176.21 0.3% 111.89 0.2% EBIT 5464.8 11% 6946.72 11.75% 5570.82 9.85% Tax 464.77 0.94% 675.3 1.14% 202.46 0.36% 10.06% 6271.42 10.61% 5368.36 9.49% After Earnings - 10.8% tax 5000.03 Shareholder’s benefits 101.81 0.2% 197.88 0.34% 548.17 0.97% Net Income 4898.22 9.86% 6073.54 10.27% 4820.19 8.52% According to Table 5.8, we can see the fluctuation in the figure in years All of the figures from2017 to 2018 had a slight ascent, however, from 2018 to 2019, it went downhill The special thing was that the decreasing pace was faster than the increasing pace The biggest increase of the firm was the sales revenue itself from 2017 to 2018, the increasing rate was18.85% from 2017 However, the biggest reduction was the earnings from business operations ratio, which was from 6962.89 billion in 2018 to 3386.35 billion in 2019, 51.36% decreasing rate This was because of the significant increase in all types of mentioned expenses and they generated loss on their joint ventures About expenses, the one that increased the fastest was the sales 22 and operation expense The figure in 2018 was 35.1% higher than that of 2019, which is a bit higher than that of financing expenses, whose percentage in 2019 was 49,2% lower than the last year) 1.3: Trend Analysis - The final part of our group’s financial analysis of Thaco is the trend analysis It is to predict what will happen in the future of the firm based on the data we obtained from financial statements In this case, we predict the trends from the balance sheet and income statement We use the 2017 figure as the base for income statement, while in balance sheet, we use sales revenue Table 1.9: Income statement trend analysis Categories 2017 Amount Percent (Billion) Current Assets 2018 Amount Percent (Billion) 2019 Amount Percent (Billion) 38496.7 100% 49668.3 29% 54689.8 10.1% Cash and 480.085 Equivalents 100% 607.81 27% 1339.77 120% Short term 521.288 100% 2662.74 411% 211.33 -92% 8351.14 100% 17417.6 109% 16918.3 -3% Investments Current AR 23 Inventories Other Assets 27570.8 100% 27933.1 1% 34770.5 24% Current 1603.48 100% 1087.09 -32% 1449.82 33% Long-term Assets 22041.1 100% 25167.5 14% 52104.8 107% Long term AR 148.51 100% 125.56 -15% 930.51 641% Fixed Assets 8454.17 100% 11893 41% 24121 103% Long-term Investments 8383.8 100% 8755.65 4% 22551.2 158% Other Long-term 427.48 Assets 100% 474.67 11% 1029.94 117% Commercial 4627.17 100% 3918.62 -15% 3472.13 -11% Total Assets 60537.8 100% 74835.8 24% 106795 43% Current Liabilities 31919.6 100% 40782 28% 53520.2 31% Short term AP 9481.3 100% 15237.6 61% 20677.7 36% Advantage 24 Taxes Payable 947.75 100% 1261.1 33% 1192.2 -5% Salaries Payable 1.042 100% 4.204 303% 27.87 563% Accrued 1174.4 100% 1705.06 45% 1657.57 -3% 100% 2.585 -28% 335.94 12896% 100% 196.06 -41% 306.51 56% 100% 22270.3 18% 29152.9 31% Expenses ST Unearned 3.6 Revenue Other Ex Accrued 331.56 Leasing 18879.4 Back expenses up 51.6 100% 93.67 82% 153.34 64% Rewards 8.06 100% 11.55 43% 16.17 40% 100% 2891.9 43% 13976.3 383% Expenses Long term 2017.4 Liabilities Total Liabilities 33937 100% 43673.9 29% 67496.5 55% Stockholder’s Equity 26600.8 100% 31161.9 17% 39298.5 26% 25 Total Liabilities 60537.8 + SE 100% 74835.8 24% 106795 43% Table 1.10: Income Statement Trend Analysis Categories Sales Revenue Sales 2017 2018 2019 Amount (Billion) Percent Amount (Billion) Percent Amount (Billion) Percent 49701.5 100% 59123.21 19% 56538.39 -4% 100% 40.7 -23% 30.69 -25% Return 53.18 and Allowances Net Sales 49648.4 100% 59082.51 19% 56507.7 -4% COGS 40483.7 100% 47350.41 17% 46638.8 -2% Gross Profit 9164.7 100% 11732.1 28% 9868.9 -16% Financing Revenue 413.21 100% 682.51 65% 841.41 23% Financing Expenses 910.35 100% 1578.45 73% 2255.97 43% 26 Gain/ Loss on 0.031 joint ventures 100% -0.044 -242% -292 663536% Sales operation 1645.27 expenses 100% 1938.98 18% 2619.4 35% Firm 1651.95 100% 1934.25 17% 2156.32 11% Earnings from 5370.37 100% 6962.89 30% 3386.35 -51% 284.65 100% 160.04 -44% 2296.36 1335% Other expenses 190.22 100% 176.21 -7% 111.89 -37% EBIT 5464.8 100% 6946.72 27% 5570.82 -20% Tax 464.77 100% 675.3 45% 202.46 -70% 100% 6271.42 25% 5368.36 -14% management Expenses business ops Other revenues After tax 5000.03 Earnings Shareholder’s benefits 101.81 100% 197.88 94% 548.17 177% Net Income 4898.22 100% 6073.54 24% 4820.19 -21% 27 IV Recommendation: - At the 7th Party Congress, the term 2020 - 2025, Thaco implements a strategy to become a multidisciplinary industrial corporation, in which auto and mechanics are the mainstay, agriculture and construction investment are the two The main areas, logistics and trade are the areas of support - Reported at the congress, said that in the past term, Thaco Party Committee has deployed extensively in many diverse, creative and practical forms associated with the launch of patriotic emulation movements and business production tasks business of the unit Since then, it has created a clear change in awareness, awareness of training and cultivating the way of life of Party members and workers - Through emulation movement activities, many good examples, innovative projects and technical improvements, 450 topics have been implemented, benefiting businesses more than 100 billion VND - Speaking at the Congress, Mr Le Tuan Anh, Secretary of the Party Committee of Dong Nai Province's Business Sector, suggested Thaco's Party Committee to continue implementing the Resolution of the 5th Conference of the Party Central Committee (Session XII) on development the private economy has become an important driving force of the socialist-oriented market economy In particular, it is necessary to follow the development strategy of the company, concretize the annual resolution of the Party Committee to implement; to build a regulation of coordination between the Party Committee and the Board of Directors and the Board of Directors of the company to create conditions for party organizations to participate in building and developing enterprises - Moreover, on March 24, 2019, at Groundbreaking ceremony in Chu Lai, Prime Minister Nguyen Xuan Phuc would like to present the main points drawn from Chu Lai Thaco: - First of all, the most important resource of Chu Lai in particular, and Vietnam in general, is not from the ground or the sea, but within the mind, the determination of the Party, the Government and the desire to rise up of the 28 business community and investors That is the reason since the beginning of the current term, the Government and the Prime Minister have had regular exchanges with the business community, encouraging and awakening the entrepreneurism, the nationalism in each enterprise and investor - Secondly, to succeed, the province needs to shake up the leading spearheads These are the investors who are energetic, determined, financially potential, nationalistic, visionary, broad-minded, governance - based and savvy businessmen - Thirdly, having the investors is only the first successful step on a long journey Localities, especially provincial leaders must always accompany investors, consider the enterprises’ reputation as their own, their impediments as their own difficulties and each achievement achieved is also the local outcomes as a whole On the other hand, the business community and investors must be equipped with the same mindset The key to achieve this is the 3-win formula, not just winwin: Between the Party, the Government - the local business community - the local people, at the same time, maintaining the principle “3 in 1” - economy, society and environment in all strategic choices and development models - Fourthly, it is a necessity to constantly nurture the aspirations to build a better future, all achievements are not to rest on the laurels but as the premise, the foundation for great determination and big success as in Uncle Ho’s principle in building “more completed” Vietnam More than ever, from now on, we must build trust, nurture this aspiration more deeply in each Vietnamese enterprise - Fifth, we must constantly innovate approaches for the same problem, in things that we have been doing well That’s the reason why we come back to the same place, a factory As this is not only a factory but also a vivid example of innovation, the ability to capture and apply the Industrial Revolution 4.0, which will be a great combination between industry - agriculture - forestry and exports while logistics services with aviation and maritime transport - Sixthly, in every strategic breakthrough, the breakthroughs in terms of systems, mechanism, policy always stay in the center This not only depends on the movements from the central level, but the local provinces also are the strategic planners, contributing practical examples to central policy and strategic 29 planning, which has contributed significantly to the achievements of the whole country, under the comprehensive leadership of the Party V References: Thaco Magazine (2019), “Prime Minister's speech at groundbreaking ceremony in Chu Lai on March 24, 2019”, Vol 52, Thanh Nien Publishing House, p.g 20 Sy Tuyen, "Thaco's strategy to become a multidisciplinary industrial corporation”, published on June 27, 2020, retained from https://bnews.vn/thaco-thuc-hien-chien-luoc-tro-thanhtap-do-job-industry-da-nganh / 160977.html Báo cáo tài THACO, http://www.thacogroup.vn/vi/quan-he-co-dong/Bao-cao-tai-chinh/ 30 ... increasing pace The biggest increase of the firm was the sales revenue itself from 2017 to 2018, the increasing rate was18.85% from 2017 However, the biggest reduction was the earnings from business. .. Chu Lai in particular, and Vietnam in general, is not from the ground or the sea, but within the mind, the determination of the Party, the Government and the desire to rise up of the 28 business. .. and investors That is the reason since the beginning of the current term, the Government and the Prime Minister have had regular exchanges with the business community, encouraging and awakening