Analysis of the financial potential of lam son technology development joint stock company

Factors affecting the financial potential of the enterprise...27CONCLUSION CHAPTER I...30 Trang 4 2.1.2 Features of business lines...312.1.3 Management structure:...372.2 Overview of th

Urgency of the topic

Today, along with the opening of the market economy, Vietnam has been deeply integrated into the world economy, creating great opportunities and not-so-small threats for domestic enterprises In addition to focusing on expanding production scale, product quality, goods, and services, minimizing costs, and minimizing profits, in order to improve competitiveness in the market, managers need to always know the financial status of the business In particular, the analysis and assessment of financial potential is a very useful tool Therefore, business managers often use this tool to assess the financial position of the company and draw up appropriate strategies to improve the financial situation better and better

The financial potential of the enterprise is a composite factor that reflects its strength of the enterprise The financial strength of the enterprise reflects the available potential to bring advantages in financial activities and also reflects the ability to organize and run the business activities of the enterprise to achieve financial goals in each given period To assess the financial potential of the enterprise, the administrator will analyze and evaluate through such contents as analyzing the business situation and results; Analyzing the level of money generation and cash flow situation; Analysis of the debt situation, and payment ability The analysis of the financial potential of the business will help the manager to make decisions that are suitable for each of his or her interests

Lam Son Technology Development Joint Stock Company is a special enterprise, operating in the main field of railway and road construction.According to the actual survey, the analysis of the company's financial potential has not been appreciated, many shortcomings need to be improved. Stemming from that fact, with the valuable knowledge about corporate financial analysis accumulated during the time of studying and researching at the Financial Analysis major - Academy of Finance, after a period of learning about Lam Son Technology Development Joint Stock Company, I chose the topic " Analysis of the financial potential of Lam Son Technology Development Joint Stock Company" as the topic of my graduation thesis

- To study the theory of financial potential and analyze the financial potential of enterprises.

- Studying the current situation of analyzing the financial potential of Lam Son technology development joint stock company

- Propose some solutions for analyzing the financial potential of Lam Son technology development joint stock company

- Research object of the topic: Analysis of corporate financial potential

- Research scope of the topic:

 Regarding content : Theoretical research on corporate financial potential serving managers and studying the current situation, proposing solutions to improve the content of financial analysis for managers

 About space: Research at Lam Son Technology Development Joint

The method of data collection and documents: Information and data used in calculations of this study were collected through journals report on income statement; statements of cash flows; the balance sheet of Lam Son technology development joint stock company

Qualitative research method: This method is applied to help detect and learn about the factors affecting and affecting the financial potential enterprise itself Sources of data to apply this research method include:

- I interviewed 5 officials in charge of finance and accounting on factors affecting the financial capacity, situation awareness, and use of financial instruments to prevent and limit the impact of interest rates, exchange rates, and commodity prices contribute to improving financial capacity.

- Sources of books, newspapers, specialized magazines, summary reports and conferences drafts of economic organizations and research institutions, research works relevant, and secondary information is also collected from the company financial statements for the period 2020-

2021 total report performance of tasks, plans and goals… These documents are compiled collected, classified, and arranged for each group by the research content.

Comparative method: Comparison is a commonly used method in report analysis finance to study the results, volatility, and volatility of the analysis targets Comparison is made between this period's execution number and the real number of the previous period to clearly see the trend of changes in the financial position of the enterprise Assess growth or decline in business operations of the business

- Compare the number of implementations with the number of plans to see the level of effort of enterprises.

- Compare the firm's data with the industry average of other enterprises to assess the financial position of the enterprise.

- There are three types of comparison: vertical comparison, vertical comparison horizontal, and trend-wise comparisons.

- Longitudinal comparison to consider the proportion of each item with the whole.

- Horizontal comparison of several periods to see the change in both numbers relative and absolute numbers of a certain item over the next period.

- Trend comparisons often use data from three years or more to see the evolution of the comparative criteria in relation to the other items highlighting fluctuations in the current and predicted financial situation of the business future financial position of the business.

When making comparisons, the problems of comparison conditions must be solved, and comparison criteria:

Comparability conditions: When comparing over time, items need to agree on economic content, methods, and units of calculation When comparing spatially, usually within a certain industry, so it is necessary to change to the same size under similar operating conditions.

Comparable standards: These are the criteria selected as a basis for comparison (also known as the base period) Depending on the purpose and requirements of the analysis, choose the only relevant standards of comparison.

For the specific purpose of the analysis, the comparative method is commonly used in the following forms:

Compare with absolute numbers: When comparing absolute numbers, analysts will know the scale fluctuations (increase or decrease) of the research target in the middle of the analysis period compared to the base period expressed in money, in kind, or specific instrument hours.

Compare with relative numbers: Relative numbers reflect the structure, relationships, growth rate, and level of popularity of the research target Therefore, comparing by relative numbers, the managers will understand the trend of changes in the items.

Compare by average: The mean represents the average or typical characteristic of 1 team, 1 department, 1 unit, etc When compared to the average, managers will know how well the business is doing compared to the overall average body, and industry From there, determine the position of the enterprise in the whole, in the industry.

5 Meaning of the research topic

Scientific significance: The thesis contributes to the systematic theoretical basis of analyzing the financial potential of enterprises for corporate governance

Practical significance: The thesis has studied the actual situation of analyzing the financial potential of Lam Son technology development joint stock company, thereby proposing and explaining specific solutions to improve the financial potential of the Lam Son Technology Development Joint Stock Company

In addition to the introduction, conclusion, and list of references, the thesis structure consists of 3 chapters:

Chapter 1 The general theory of the financial potential of enterprises

Chapter 2: Analysis current status of the financial potential of Lam Son technology development joint stock company.

Chapter 3: Solutions to improve the financial potential of Lam Son technology development joint stock company.

THE GENERAL THEORY OF THE FINANCIAL

Basic issues of corporate financial potential

The potential is possible The potential is the material and spiritual ability, which can mobilize the strength and form the strength of a specific task It reflects the distribution relationship of social wealth in the form of financial value In the process of formation, the monetary fund of economic entities is established and distributed to meet specific conditions The financial resource potential reflects the financial resource potential of the unit.Corporate finance is concerned with the process of mobilizing,allocating, and using the financial resources of enterprises to achieve certain business goals However, in the process of mobilizing, allocating, and using financial resources, economic relationships in the form of value such as the financial relationship between enterprises and the State appear through the implementation of their obligations financial services with the State such as paying taxes, fees, and charges to the state budget ; The financial relationship between enterprises and economic entities and social organizations is reflected in the payment, rewards, and punishments when enterprises and other economic entities provide goods and services to each other ; the financial relationship between the enterprise and the employees in the enterprise, reflected in the payment of wages and penalties by the enterprise to the employees when participating in the operation of the enterprise; the financial relationship between the enterprise and the owners of the enterprise, through the owner making capitals contribution, or withdraw capital from the enterprise and in the distribution of its net income; Financial relationships within the enterprise are reflected in the formation and use of the enterprise's funds.

Thus, in essence, corporate finance is economic relations in the form of value arising associated with the creation and use of the enterprise's monetary funds in the course of its operations.

In terms of form, corporate finance is monetary funds in the process of creating, distributing, using, and mobilizing associated with business activities.

Thus, the financial potential of the enterprise is the financial potential of the enterprise arising in the process of forming, distributing, and using the financial resources of the enterprise.

1.1.2 Contents of enterprise's financial potential

The financial strength of the business reflects the available potential for financial profitability, and also reflects the ability of the business to organize and run the business to achieve financial objectives for a certain period. Therefore, the financial potential of an enterprise is the financial potential of the enterprise arising in the process of creating, distributing, and using monetary funds, so the content of financial strength is related to the business results, debt situation, and the payment ability (showing the financial relationship between related parties in the course of business) and the cash flow position of the enterprise.

- The business situation and results of the enterprise show the potential of the enterprise in the process of operation Through the business results of the enterprise will see the potential financial potential of the business.

- The debt situation of the enterprise shows the situation of capital occupied and appropriated capital of the enterprise, thereby seeing the financial capacity of the enterprise and the financial potential of the enterprise.

- The situation of management and use of capital of the enterprise: showing the operational capacity of the enterprise To evaluate the efficiency of the enterprise's capital management and use through the efficiency of capital use and the profitability of capital Through the efficiency of capital use and profitability of the enterprise, it is possible to clearly assess the financial potential of the enterprise in the period.

General theory of the analysis of the financial potential of the enterprise.8 1 Concepts and goals

Financial potential is the ability to ensure the main financial source for the operation of the enterprise to achieve the set goals of the enterprise.

Analysis of the financial potential of an enterprise is a work that applies scientific analysis methods to evaluate and forecast the financial potential of an enterprise Thereby helping the management subjects (objects of interest) make decisions appropriate to each target of interest.

The financial potential information of an enterprise is the relationship between most management entities and the enterprise because it is the most important information, which provides the basis for the management decisions of each entity Many objects are interested in the financial potential of enterprises, such as enterprise managers; Investors; Credit providers; National management organizations

Enterprise managers: analyze the financial potential of enterprises and help managers create regular business management activities; Evaluate profits, creativity, and financial potential and financial status of enterprises; Through the analysis of financial resources, it is helpful for enterprises to make management decisions, investment decisions, financing, and profit distribution The future financial forecast of enterprises is a tool to monitor the internal financial activities of enterprises.

For investors: This object is to give it to enterprises for management and use, and income is often the key factor First of all, they pay attention to the characteristics of enterprise investment, such as risk, investment insurance, stock price, and value-added tax Therefore, investors are concerned about the analysis of the financial potential of enterprises, the evaluation of profitability, and the factors that affect the future market share price increase of enterprises, especially the position of enterprise decision-making.

Supplier: This is the object of the loan enterprise Their income is the loan interest rate Generally speaking, for creditors, income, and circulation are important because they are expected to repay loans and loans Do creditors care about the loan ability of present and future enterprises? Therefore, evaluating the financial potential of the loan target will help the credit supplier to decide how to provide credit and restrictions to the loan enterprise.

For state functional organizations, workers: state functional management organizations, especially tax authorities, also need enterprise financial informatization to control the operation status of enterprises and build macro-management plans.

1.2.2 Database for analysis of corporate financial potential

Databases for financial analysis include documents from inside the enterprise and documents from outside the enterprise

* Documents from within the enterprise:

Documents from within the enterprise including the financial reporting system, the system Management reporting system, and internal documents of the enterprise for management decision making

* Financial statements: are the most general reports on the situation of assets, equity, and liabilities as well as the status of the company Financial position, business results, cash flow position, and profitability for the period of an enterprise, which is different from the management accounting reporting system, which are reports related to providing information to investors. management within the enterprise Financial statements are those that are publicly available, relating mainly to members outside the enterprise.

- Financial statements of the enterprise, including the following reports: + Balance sheet

* Management report of the enterprise:

Reports on corporate governance of the Board of Directors, Board of Directors, stock transactions of major shareholders quarterly or quarterly…

Internal documents of the enterprise: Corporate financial policy, business goals of the enterprise….

Information outside the enterprise: Information sources outside the enterprise include general information about the economic situation, and information about the business industry of the enterprise:

- General information about the economic situation: Information reflecting the general economic situation at a certain period related to business activities of enterprises is important information to consider. The business activities of each enterprise are affected by many factors in the macro environment, so analyzing the financial situation of enterprises should be placed in the general context of the domestic and regional economy Based on combining this information, will facilitate a more complete assessment of the production and business situation of enterprises and at the same time can forecast risks and opportunities for the company's operations Information of interest usually includes

+ Information about economic growth or recession, especially concerning domestic and regional scope.

+ Major economic policies of the State: political policies, foreign affairs, laws, financial and accounting regimes are relevant. Information about the inflation rate

+ Information on bank interest rates, and foreign exchange rates

- Information on business lines: Within the industry, it is necessary to consider the development of the company about the activities and general characteristics of the industry business Industry-related information that needs attention usually includes:

+ Industry level and technology requirements

+ Market size and development prospects

+ Nature market competition, relationships with suppliers and customers

+ The threat of potential competitors

In addition to the above classification, information for analysis of the financial position of enterprises can also be classified according to different criteria such as information source, time of information recording, importance and level of exact information, Period of occurrence, and frequency of information usage.

1.3 Content analysis of corporate financial potential

1.3.1 Analysis of the business situation and results

When analyzing and evaluating business results of enterprises, we must comprehensively mention both in terms of time and space, and at the same time put it with the overall effect of the whole society

In terms of time, the business efficiency achieved in one period must not reduce the efficiency of the next business period and must be stable and secure.

In terms of space, business efficiency must be implemented in every business division of the enterprise from the parent enterprise to its subsidiaries and affiliated units All solutions to improve business efficiency, and increase profitability cannot be excluded from ensuring economic and social efficiency such as respecting the law and protecting natural resources and the environment.

Analyzing the business situation and results of the enterprise for the purpose of evaluating the results and business performance of the whole enterprise as well as of each field of operation in the period, thereby pointing out the causes and factors affecting the results efficiency and business efficiency, thereby proposing solutions to improve the business efficiency of enterprises in the following periods.

- Analysis of income statement reports:

Conduct an assessment of the increase and decrease of the criteria on the income statement between this period and the previous period (or actually with the base period) in both absolute and relative numbers, thereby evaluating the overall business results of the Company the whole enterprise as well as each field of operation during the period

When analyzing, it is necessary to pay attention to the fluctuation of items such as net income, Earning before taxes, Net profit from business activities, and Profit from sales and service provision.

Net income = Earnings before taxes - CIT expense

Earnings before taxes = Net profit from business activities + Other profit Net operating profit = Net sales from sales & services – Cost of goods sold + Financial revenue – Financial expenses – Selling expenses – General and administrative expenses = Profit from sales and service provision + profit from financial activities

In which: Profit from selling goods and providing services = Net revenue from selling goods and providing services - Cost of goods sold -Cost of sales

- Analysis of financial ratios calculated from income statement

The cost management situation of the enterprise is shown through the following criteria:

Cost ratio = Total cost/ Total revenue and income

Factors affecting the financial potential of the enterprise

Analyzing corporate financial potential is extremely important in making management decisions for managers This requires the content of financial analysis to reflect comprehensively, fully, and in detail the potential and financial capacity of the enterprise so that managers can have the most comprehensive view, as well as obtain the most correct solutions to help the financial situation of your business become healthier To do so, the content of financial potential analysis must be accurate, complete, and timely; managers must see the importance of analyzing financial potential; The number of analytical staff is sufficient and must have professional qualifications, to meet the information needs of administrators as well as interesting subjects Thus, the content of analyzing financial potential at enterprises is affected by the following factors:

The awareness of the management subjects about the importance of financial potential analysis: If managers fully realize the importance of financial potential analysis, they really consider analysis as a tool An important tool in management, with adequate attention to the content of financial analysis, then the analysis of financial potential will become an important management tool in providing information on financial capacity to make management decisions On the other hand, when managers are aware of the importance of financial analysis and assess whether the analysis is detailed or general, the content of the analysis will also be affected If the level of analysis is general, the content of financial analysis only reflects the most general features of the financial potential of the enterprise.

Quality of information used: This is the most important factor determining the quality of financial potential analysis because once the information used is incorrect or inappropriate, the results of the analysis of financial potential will be affected The main offering is just formality, with no meaning Therefore, it can be said that the information used in financial analysis is the foundation of financial analysis If the system of items for analyzing financial potential is collected from sufficient and accurate documents, it will reflect the financial situation of the enterprise in the past and present and predict future development trends Managers will come up with timely and reasonable solutions to help assess the health of the business's financial potential and vice versa This requires administrators to have qualifications and professional capacity to recognize the information provided.

Number and qualifications of staff performing the analysis: In a financial analysis in general and financial potential analysis in particular, the staff performing the analysis has a great influence on the time and quality of the analysis The number of staff performing the analysis affects the time to perform the analysis, thereby affecting the timeliness of the analysis results.The qualification of the staff performing the analysis affects the science and effectiveness of the analysis Analysts who have professional qualifications in finance, analysis, and operations of listed companies, are knowledgeable in law, have good moral character, etc will develop and calculate the appropriate criteria for the company, as well as will give information from the data of the items in the most accurate way to help managers and stakeholders make better decisions.

Characteristics of production and business activities, business lines also affect the system of items for analyzing financial potential Because each business line and business field will have its own characteristics Therefore, the item of financial potential analysis will have specific criteria that other businesses do not have, it helps interested parties to assess the unique features of each business, thereby offering appropriate solutions.

The development of financial analysis science, development of financial analysis science has a great influence on corporate financial analysis in general and financial potential analysis in particular Having analytical software will help analysts save time and effort for analysis and avoid errors in the analysis process compared to performing analysis manually In particular, financial analysis is considered a profession, and the higher the professionalism in analysis The person who performs the financial analysis is independent of the person who prepares the financial statements, which will ensure that the information of the financial analysis shows more objectivity. When it comes to the high-tech, professional level, the financial analysis system will specifically reflect the essence of the company, and the overall financial analysis system quality and personal financial potential analysis will also be upgraded.

The industry average financial analysis criteria system has an impact on the efficiency of financial potential analysis in making financial management decisions The industry average financial potential analysis criteria system is an important comparison basis in financial analysis When comparing the company's target with the industry average, the analysis results will not be narrow but will be presented more fully, helping the manager to see the company's position to make decisions more appropriate for management.

Thus, in chapter 1, the thesis has generalized the general theory of content analysis of the financial potential of Lam Son Technology Development Joint Stock Company securities joint stock companies As follows:

First: Basic issues of financial potential

Second: Content of financial potential analysis

Thirdly: The factors affecting the content of financial potential analysis Thereby, there is a basis to delve into the analysis of the financial potential of the ancient company Lam Son technology development section in chapter II.

ANALYSIS CURRENT STATUS OF THE FINANCIAL

General overview of Lam Son technology development joint stock company

2.1.1 The process of formation and development of the unit

Lam Son Technology Development Joint Stock Company operates under the Enterprise Certificate with enterprise code: 0105972066 first registered on August 16, 2012 (5th change on June 14, 2019) issued by Hanoi Department of Planning and Investment.

The company's head office is located at: No 9, Trung Yen 3 Street, Trung Yen Urban Area, Trung Hoa Ward, Cau Giay District, Hanoi City. Authorized capital: 100,000,000,000 (In words: One hundred billion VND per day)

With the experience accumulated through generations of engineers and construction workers, coupled with the constant application of modern and advanced construction and management technologies, the company will continue to be a trusted contractor by all public and private customers on the basis of meeting the highest technical standards, quality requirements, and progress of the country's railway, road and infrastructure projects.

The company is a leading enterprise in the field of railway construction in Vietnam with a series of construction projects related to renovating,upgrading and building new roads, bridges, tunnels and works serving national railway system In addition to railway works, the company has been participating in the construction of road traffic works of the national and local road network The company also plans to participate in the construction of energy and industrial infrastructure projects in the near future.

* Main lines of business: (Excerpt from the 5th amendment of business registration)

- Construction of railways and road projects;

- Installation of machinery and industrial equipment;

- Repair of electronic and optical equipment;

- Wholesale of computers, peripherals and software

- Wholesale of electronic and telecommunications equipment and components;

- Wholesale of agricultural machinery, equipment and spare parts

- Wholesale of equipment and other machinery spare parts

 Details: Wholesale of construction machinery, equipment and spare parts; Wholesale of electrical machinery and equipment, electrical materials (generators, electric motors, wires and other equipment used in electrical circuits; Wholesale of machinery; equipment and spare parts for office machines (except microcomputers) Computer and peripheral equipment; Wholesale of medical machinery and equipment; Wholesale of measuring equipment and instruments; Wholesale of machine tools, for all types of materials; Wholesale of used machinery and equipment used for agricultural production, commerce, maritime;

- Wholesale of metal and metal mats (except uranium and thorium mats);

- Sale of trading materials and other installation equipment during construction

 Details: Wholesale of bamboo, timber, and wood processing; Sale of cement; Wholesale of bricks, tiles, stones, sand, and baskets; Wholesale of construction glass; Wholesale of paints and varnishes; Wholesale of tiles and sanitary ware; Wholesale of hardware;

- Wholesale of raw agricultural and forest products (except wood, and bamboo) and live animals (except for those banned by the state);

- Build all kinds of houses

- Site preparation (excluding mine detectors and the like at construction sites)

- Installation of water supply, drainage, heating, and air conditioning systems;

- Installation of other construction systems

 Details: Automatic elevators and stairs; Types of automatic doors; Lighting system; Dust collection system; Sound system; System of equipment used for entertainment and recreation;

 Details: Construction of the building's foundation; Humidity testing and other water testing works; Moisture resistant buildings; Bury the pillar;Dismantle non-manufactured steel parts; Bending steel; Building bricks and lay stones; Roofing covers the building; Scaffolding and groundwork removing or demolishing construction works except for hiring scaffolding and premises; Removal of chimneys and industrial boilers

- Research and experimental development of natural science and engineering;

- Specialized design activities Details: Interior decoration activities

- Manufacture of other products from wood; production of products from bamboo, cork, straw, and materials for Tet;

- Leasing machinery, equipment, and other tangible goods;

 Leasing agricultural and forestry machinery and equipment; Machine, constructive equipment for hire; Rental of office machinery and equipment (including computers)

- Other specialized sales not elsewhere classified

 Details: Agents, brokers (excluding securities, insurance, real estate, and marriage brokers with foreign elements; telecommunications service agents;

- Transport of passengers by road within the inner city and suburbs (except for transport by bus)

 Details: Transporting passengers by car along fixed routes; Transporting and operating passengers under contract; Business of transporting tourists by car;

- Financial services support activities not elsewhere classified

 Details: Investment consulting activities (Not including legal, accounting, auditing, tax, and securities consulting);

- Other professional scientific and technological activities not elsewhere classified

 Details: Technology transfer services, including technology transfer environment; Technology transfer consultant; technology assessment; technology transfer promotion

- Architectural activities and related technical consulting Details: Consulting on making bidding documents, evaluating bidding documents

- Construction of other civil works Details of construction of telecommunications works;

- Other business support service activities that have not been classified elsewhere

 Details: Import and export of business products

(For conditional business lines; Enterprises only do business when they fully satisfy the conditions prescribed by law)

The Board of Directors of Lam Son Technology Joint Stock Company has run the company in 2020

- Name: Mr Nguyen Ngoc Ha

- In the period 2018 - 2022, Lam Son Joint Stock Company participates in bidding activities The results of data analysis of DauThau.info software for the contractor LAM SON TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY are as follows:

+ Participated in 8 premium packages, of which 4 packages were successful, 0, 3 failed, no results, and 1 package was canceled.

+ Total winning value: 77,071,265,365 VND (In which, 0 VND is the package of appointment of contractors; 0 VND is the bidding packages with IMP but no equipment)

+ The lowest bid rate when participating: 63.35% in the bidding package here (Only based on the packages that have announced the estimated price or the bid package price)

+ The average ratio of the bid price to estimated price: 91.58% (Based only on packages with announced estimated price or bidding package price)

+ Provinces participating in the project: Hanoi, Hung Yen, Ho Chi Minh City, Binh Duong, Dong Nai

+ Relationship with 3 bidders Used to fight with 10 bidders in 5 bidding packages, won 1 package, lost 0 packages, 3 have no result, 1 package has been canceled.

+ Once entered into a joint venture with 1 contractor in 2 bidding packages, bidding package 2, lost 0 packages, 0 has not yet received results, and 0 packages have been canceled:

- LAM SON TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY won the contract to provide 4G equipment installation service for expanding the coverage area in phase 2 in the South by + Viettel Network Corporation - Branch of Viettel Group Industry - Military Telecommunications + Street and street name: Thai Binh Building – Lot B1C - Alley 19 - Duy Tan Street – Cau Giay – Hanoi + Phone: 04.62660049 Fax: 04.62660069

- LAM SON TECHNOLOGY DEVELOPMENT JOINT STOCKCOMPANY won the bid for the construction and expansion package of broadband fixed infrastructure in 2021 in 63 provinces/cities byVIETTEL NETWORK CORPORATION - BRANCH OF MILITARYTELECOMMUNICATION GROUP

Diagram 2 1: Organization chart of the management apparatus of Lam Son technology development joint stock company

(Source: Accounting Department of Lam Son technology development joint stock company) Director : Mr Nguyen Manh Ha is the head of the company, who directly leads and runs all activities of the Company through the leadership apparatus in the company to ensure the effective and safe operation of the Company.and capital development of members The director of the company is also responsible before the law and the company for internal and external relations and for the results of the company's operations.

Accounting Department: Having the function of advising the Board of

Directors on financial and accounting work, and promptly informing the Director about capital sources in a correct, specific and accurate way, back pain at the right time Report the financial situation to the competent authorities of the State, develop the financial plan of the Company, manage the entire accounting system, daily books, analyze business results, determine assessment of the Company's current capital situation and the fluctuations of assets.

Sales Department: Find customer sources, order information, transaction money between orders This is a confidential work, top secret, the code, password, the supplier's bank address must be correct Confirm new orders, order, code, quantity, date of order, date of completion, etc., and then transfer it to the chief accountant for payment and transfer to the supplier Organize and conduct market research, find new sources of customers, market and promote the Company's brand, build programs from content to prices suitable to customer needs, maintain relationships with customer sources Ensure communication activities between the company and customer sources. Responsible for surveying and searching to expand consumption markets. Develop sales plans and sales network to submit to the Director for approval.

Administration Department: Has the function of advising the

Company's leaders in organizing the construction of the Company's management apparatus, planning the use of the annual salary fund, and dealing with the internal affairs of the Company company Organize internal and external affairs, purchase equipment, stationery, manage information activities, and care about the lives of employees and employees of the whole company Typed letters, manage records in accordance with regulations.

Operating vehicles for staff to go on business trips, organizing office service work, organizing preparation for company meetings Fully disseminate directives, guiding resolutions of the Party and State.

Design consulting department : Advise the company's leaders on the company's designs, ensuring the technical and quality elements of the works that the company participates in Looking for a design unit suitable to the requirements of the Company to ensure the technical requirements of the project.

Overview of the financial situation in the year of Lam Son technology

2.2.1 General analysis of the financial scale of Lam Son technology development joint stock company

Table 2.1: General analysis of the financial scale of Lam Son technology development joint stock company

4 Earnings before interest and taxes 6.338 8.546 -2.208 -25,84%

(Source: Calculated from the audited financial statements in 2020, 2021 of

Lam Son technology development joint stock company)

From the above data table, it can be seen that in the period from the end of 2020 to the end of 2021, the total assets of Lam Son technology development joint stock company have downward trends, namely (total assets at the end of 2020 are: VND 328.730 million, at the end of 2021 they are VND 254.939 million) Thus, the total assets of Lam Son technology development joint stock company in 2021 have decreased by VND 73.791 million compared to 2020, corresponding to a rate of 22.45% This makes the size of the company's assets tend to decrease The total assets of the company during this reduction period are due to the fact that current assets at the end of

2021 decreased by VND 79.997 million, with a rate of 27.61% and the company's non-current assets at the end of the year increased by VND 6.208 million, corresponding to the rate of increase is 15.94% The decrease in current assets of the company is cash and cash equivalents at the end of the year compared to the beginning of the year decreased by VND 9.867 million with a decrease rate of 64.66%, the company's inventories at the end of the year decreased by VND 63.055 million, so with the ratio at the beginning of the year corresponds to a decrease ratio of 32.77%, current receivables at the end of the year decreased by VND 3.618 million with a reduction of 4.85%, other current assets of the company at the end of the year decreased by VND

917 million compared to the beginning of the year, the rate of decrease was 28.58% The company's non-current assets increased as the company's year- end fixed assets decreased by VND 5.860 million compared to the beginning of the year, with a rate of 26.71%, the company's year-end non-current property in progress increased by VND 2.789 million compared to the beginning year, the growth rate was 22.69%, the company's non-current financial investment at the end of the year increased by VND 9.279 million compared to the beginning of the year, with a rate of 196.54% Also in this period (end of 2020 to the end of 2021), the owner’s equity of Lam Son technology development joint stock company tends to decrease (owner’s equity of the company at the end of 2021 is VND 111.757 million, and at the beginning of 2021 is VND 121.788 million) Thus, it is possible that compared to the end of 2021, the owner’s equity of Lam Son technology development joint stock company tends to decrease by VND 10.031 million with a reduction of 8.24% The fact that the owner’s equity of Lam Son technology development joint stock company decreased at the end of 2021 compared to the beginning of the year while the owner's contributed capital remained unchanged during the year, showing that the net income and the decrease in investment and development fund is the cause of the above- mentioned decrease in owner’s equity This shows that the owner’s equity size of Lam Son technology development joint stock company decreased at the end of 2021 compared to the beginning of 2021 On the other hand, the company's total assets at the end of 2021 decreased by VND 73.791 million compared to the beginning of the year with a reduction of 22.45%, while owner’s equity at the end of 2021 also decreased compared to the beginning of the year by VND 10.031 million with the reduction of 8.24% The decline rate of total assets is faster than the decline rate of owner’s equity, which proves that the company's capital mobilization policy at the end of 2021 compared to the beginning of 2021 followed an increasing trend the proportion of capital raised from owner’s equity and a decrease in the proportion of capital mobilized from liabilities.

Total revenue and income of Lam Son technology development joint stock company in the period from 2020 to 2021 tend to decrease Specifically, the company's total revenue and income in 2020 is VND 104.992 million, and in 2021 it is VND 92.323 million Thus, the total revenue and income in 2021 decreased by VND 12.669 million compared to 2020, corresponding to a reduction of 12.07% Total revenue and income decreased mainly from net sales of goods and services in 2021, which was VND 92.172 million, decreased by VND 12.788 million compared to 2020, with a rate of 12.18%. The decrease in total revenue and income shows that the production and business activities of Lam Son technology development joint stock company have not been effective in the year.

Earnings before interest and taxes of Lam Son technology development joint stock company in the period 2020 to 2021 tends to decrease. Specifically, the earnings before interest and taxes of Lam Son technology development joint stock company in 2020 is VND 8.546 million, and in 2021 is VND 6.338 million This item in 2021 decreased compared to 2020,specifically, earnings before interest and taxes have decreased by VND 2.208 million with a reduction of 25.84% Thus, without regard to the origin of capital and the performance of the company's obligations to the state, the company's profit scale in 2021 decreased compared to 2020.

Net income of Lam Son technology development joint stock company in the period of 2020 to 2021 tends to decrease Specifically, the company's net income in 2020 is VND 3.588 million and in 2021 is VND 1.543 million. Thus, compared to 2020, the net income of Lam Son technology development joint stock company in 2021 decreased by VND 2.045 million with a reduction of 57% The decrease in net income proves that the profit scale for the company's owners in 2021 is reduced compared to 2020 On the other hand, the company's total revenue and income in 2021 decreased by VND 12.669 million compared to 2020 with a reduction of 12.07% The company's net income decreased by VND 2.045 million with a rate of 57%, but the decrease in net income was faster than the decrease in total revenue and income, so in 2021, Lam Son technology development joint stock company has not used cost savings in the year of operation.

The net cash flow of Lam Son Technology Development Joint Stock Company in the period of 2020 - 2021 tends to decrease Specifically, the company's net cash flow in 2020 is VND 5.269 million and in 2021 is VND 9.867 million Thus, the net cash flow of Lam Son Technology Development Joint Stock Company in 2021 decreased by VND 15.136 million with a reduction of 287.27% Thus, in 2020, Lam Son Technology Development Joint Stock Company has a growing cash flow but by 2021 has a cash flow deficit This affects the financial potential of the company However, in order to clearly assess how the increase or decrease in cash flow affects the company's operations, it is necessary to specifically consider net revenue from operating activities, net revenue from financial activities, and net revenue from investment activities.

Thus, basically, the financial scale of Lam Son technology development joint stock company in the period 2020 to 2021 tends to decrease, which is shown through the decrease in the size of owner’s equity, size of net revenue decreased, the size of the company's net income decreased, the scale of earnings before interest and taxes decreased, the scale of production and business decreased, and the company ran a cash flow deficit Therefore, in order to improve financial capacity and scale up in the following years, Lam Son technology development joint stock company needs to have appropriate policies.

2.2.2 General analysis of the profitability of Lam Son technology development joint stock company

Table 2.2: General analysis of the profitability of Lam Son technology development joint stock company

Total revenue and income Million VND 92.323 104.992 -12.669 -12,07%

Earnings before interest and taxes (EBIT) Million VND 6.338 8.546 -2.208 -25,84% Average total assets Million VND 291.835 275.512 16.323 5,92%

(ROA) Times 0,0053 0,0130 -0,0077 -59,40% net income Million VND 1.543 3.588 -2.045 -57,00%

Average total assets Million VND 291.835 275.512 16.323 5,92%

(ROE) Times 0,0132 0,0295 -0,0163 -55,17% net income Million VND 1.543 3.588 -2.045 -57,00%

Average of equity Million VND 116.773 121.731 -4.958 -4,07%

(Source: Calculated from the audited financial statements in 2020, 2021 of

Lam Son technology development joint stock company)

From the data table, it can be seen that return on sales of Lam Son technology development joint stock company in the period from the end of

2020 to 2021 tends to decrease Specifically, the return on sales of Lam Son technology development joint stock company in 2020 and 2021 is 0.0342 times and 0.0167 times, respectively Thus, the operating profit coefficient of Lam Son technology development joint stock company in 2021 decreased by 0.0175 times compared to 2020 with a reduction of 51.09% In 2020, for every 1 dong of total revenue and income Lam Son technology development joint stock company will get 0.0342 dong of net income, but by 2021, for every 1 dong of total revenue and income, the company will only earn 0.0167 dong net income The decrease in profitability of Lam Son technology development joint stock company is due to the decrease in total revenue and income in 2021 by VND 12.669 million compared to 2020 corresponding to a reduction of 12.07% Total revenue and income decreased mainly from net sales of goods and services in 2021 of VND 92.172 million, decreased by VND 12.788 million compared to 2020, corresponding to a decrease rate of 12.18% and net income of the company in 2021 is VND 1.543 million, down VND 2.045 million with a reduction of 57% The decrease in total revenue and income is slower than the decrease in net income, which shows that in

2021, the company has not used cost savings in the operation process, thereby reducing operating profit This is considered a part of the company's shortcomings in the cost management process.

The company's basic earning power in the period from 2020 to 2021 tends to decrease Specifically, this data of Lam Son technology development joint stock company is 0.0310 times in 2020 and 0.0217 times in 2021 Thus, the basic earning power of the company in 2021 decreased by 0.0093 times compared to 2020, corresponding to a reduction of 29.98% In 2020, if the origin of capital and the performance of the company's obligations to the State are not taken into account, on average, for every 1 dong of total assets involved in the operation process, the joint stock company technology development Lam Son earns 0.0310 dong earnings before interest and taxes, but by 2021, for every 1 dong of total assets involved in its operation, Lam Son technology development joint stock company only obtained 0.0217 dong earnings before interest and taxes The reason why the coefficients decrease is that the average total assets in 2021 are VND 291.835 million, an increase of VND 16.323 million with a rate of 5.92%, the increase in average total assets of the company is due to current assets at the end of 2021, it decreased by VND 79.997 million with a rate of 27.61% and the company's non-current assets at the end of the year increased by VND 6.208 million, corresponding to an increase of 15.94% The decrease in current assets of the company is cash and cash equivalents at the end of the year compared to the beginning of the year decreased by VND 9.867 million with a decrease rate of 64.66%, the company's inventories at the end of the year decreased by VND 63.055 million, so with the ratio at the beginning of the year corresponds to a decrease ratio of 32.77%, current receivables at the end of the year decreased by VND 3.618 million with a reduction of 4.85%, other current assets of the company at the end of the year decreased by VND 917 million compared to the beginning of the year, the rate of decrease was 28.58% The company's non-current assets increased as the company's year-end fixed assets decreased by VND 5.860 million compared to the beginning of the year, with a rate of

26.71%, the company's year-end non-current property in progress increased by VND 2.789 million compared to the beginning year, the growth rate was 22.69%, the company's non-current financial investment at the end of the year increased by VND 9.279 million compared to the beginning of the year, with a rate of 196.54% and the company's earnings before interest and taxes in

2021 is VND 6.338 million decreased by VND 2.208 million with a rate of 25.84% From that, it can be seen that the basic earning power of the company decreased mainly due to the sharp decrease in earnings before interest and taxes The fact that earnings before interest and taxes decreased while interest expenses at both the end of 2021 and the end of 2020 were zero, showing that the decrease in EBIT was due to a decrease in earnings before taxes

Return on assets of Lam Son technology development joint stock company in 2021 is 0.0053 times, in 2020 is 0.0130 times, down 0.0077 times with a reduction of 59.40% Thus, in 2020, on average 1 dong of total assets is involved in the production and business process, and the company earns 0.0130 dong of net income, but by 2021, on average, 1 dong of total assets is involved in the production process and business, the company has only earned 0.0053 dong net income Thus, the company's return on assets in 2021 is lower than in 2020 This is part of the company's shortcomings in the process of using total assets The reason the company's net return on assets decreased because the average total assets in 2021 increased by VND 16.323 million compared to 2020, the increase rate was 5.92% and the company's net income in 2021 was VND 1.543 million, a decrease of VND 2.045 million, a decrease of 57% compared to 2020 The decrease in net income proves that the profit scale for the company's owners in 2021 is reduced compared to 2020.

The return on equity of Lam Son technology development joint stock company in the period from 2020 to 2021 tends to decrease Specifically, the return on equity of Lam Son technology development joint stock company is 0.0295 times in 2020 and 0.0132 times in 2021 Thus, the return on equity of Lam Son technology development joint stock company in 2021 decreased by 0.0163 times compared to 2020, with a reduction of 55.17% In 2020, for every one dollar of owner’s equity involved in the production and business process, Lam Son technology development joint stock company earns 0.0295 dong of net income, but by 2021, every one dong of owner’s equity is involved in the production and business process, the company only earns 0.0132 dong of net income Thus, the effective use of the owner’s equity of the company in 2021 has decreased compared to 2020 The reason is that the average equity in 2021 decreased by VND 4.958 million with a reduction of 4.07%, making the company's net income in 2021 decreased by VND 2.045 million compared to 2020 with a reduction of 57% It can be seen that the decrease in net income is faster than the decrease in average equity, showing that the policy that the company is applying is not reasonable.

Return on sales, basic earning power, return on assets, and return on equity, all these items of joint stock company development Lam Son technology development in 2021 are all reduced compared to 2020 Basically,the financial situation of Lam Son technology development joint stock company is not stable because of the size of revenue and income, the size of profit for owners tends to decrease However, the company's capital mobilization policy at the end of the year compared to the beginning of the year following the trend of increasing the proportion of capital mobilized from owner’s equity, reducing the proportion of mobilization from liabilities,along with that the company used Using a part of long-term capital after financing non-current assets to finance current assets, this usage is very reasonable In 2021, Lam Son technology development joint stock company has not yet saved costs during its operation, so the company's return on sales has declined.

Analyzing the situation of the financial potential of Lam Son technology

technology development joint stock company

2.3.1 Analysis of business situation and results of Lam Son technology development joint stock company:

Table 2 4: Analysis of business situation and results of Lam Son technology development joint stock company

2 Deductions from the total sales

16 Basic earnings per share (VND) 154.3 358.8 -204.5 -57.00%

22 Cost of goods sold to net sales ratio 0.9099 0.8869 0.0230 2.60%

23 Selling expense ratio to net sales ratio

24 General and administrative to net sales ratio 0.0230 0.0320 -0.0090 -28.21%

(Source: Calculated from the audited financial statements in 2020, 2021 of

Lam Son technology development joint stock company)

Net income of Lam Son Technology Development Joint Stock Company in 2021 is VND 1,543 million, decreased by VND 2,045 million in 2020 with a rate of 57%, the company's earnings before taxes in 2021 is VND 1,795 million, decreased by VND 2,377 million compared to 2020 with a reduction of 56.98% Thus, compared to 2020, the operating efficiency of the whole company in 2021 has decreased On the other hand, the company's return on sales in 2021 is 0.0167 times, decreased by 0.0175 times compared to 2020, the reduction ratio is 51.09%, and the company's earnings before taxes margin in 2021 is 0,0194 times decreased by 0.0203 times compared to 2020 with a reduction of 51.08%, it can be said that in 2020 for every 1 dong of total revenue and income, the company will get 0.0397 dong of earnings before taxes and 0.0342 dong of net income, but by 2021, for every 1 dong of revenue and income, the company only gets 0.0194 dong of earnings before taxes and 0.0167 dong of net income leading to the company's operating results in 2021 decreased compared to 2020.

Analyzing each field of activity we find:

For the main business, the company's operating profit in 2021 has decreased compared to 2020 because the company's operating profit in 2021 is VND 1,795 million, and VND 4,172 million in 2020, on the other hand, the company's operating profit margin from business activities in 2021 is 0.0194 times, a decrease compared to 2020 of 0.0203 times with a reduction of 51.08% Thus, in 2020, for every 1 VND of net revenue from business activities, the company will get 0.0397 VND of operating profit, but by 2021, for every 1 VND of net revenue from business activities, the company will only receive 0.0194 dong of operating profit, leading to a decrease in the company's main business performance in 2021 compared to 2020.

The company's sales and service provision results in 2021 decreased compared to 2020 because the company's profit from sales and service provision in 2021 was VND 6,187 million, which decreased by VND 2,328 million in 2020 with a reduction of 27.34% On the other hand, the sale profit margin of the company in 2021 is 0.0671 times, a decrease compared to that in 2020 is 0.0140 times, with a rate of 17.26% leads to the efficiency of sales and service provision activities in 2021 decreased compared to 2020 The reason is due to net sales and expenses for production and business:

The company's cost of goods sold in 2021 is VND 83,866 million, a decrease of VND 9,218 million compared to 2020 with a reduction of 9.9%. The reason for the decrease in the cost of goods sold is that in 2021, the COVID-19 pandemic is still extremely complicated, causing a negative impact on the economy, and directly affecting the company's production and business activities In 2021, the demand for construction of railway and road works, the demand for construction materials also decreased, and the consumption of goods decreased, so the company had to reduce production scale, cut production costs, the company reduces production norms, leading to a decrease in the company's cost of goods sold On the other hand, the company's cost of goods sold to net sales ratio in 2021 is 0.9099 times, in

2020 it is 0.8869 times (increased by 0.0230 times with a rate of 2.6%) Thus, in 2020 to generate 1 dong of net sales, the company must spend 0.8869 dong of cost of goods sold, but by 2021 to generate 1 dong of net sales, the company had to spend an additional 0.0230 dong cost of goods sold Thus, the above reduction in the cost of goods sold is not reasonable Therefore, the company should negotiate with input material suppliers, especially long-term suppliers to enjoy better COGS incentives, the company also should research the current market demand from which to store input materials appropriately. During the year, Lam Son technology development joint stock company did not incur any selling expenses

The company's general administrative expenses in 2021 are VND

2,119 million, decreased by VND 1,242 million in 2020 with a rate of 36.95% The main reason is the reduction in the cost of hiring management staff On the other hand, the company's G&A expense to net sales ratio in

2021 is 0.0230 times, in 2020 it was 0.0320 times, decreased by 0.0090 times with a reduction of 28.21% So in 2020 to generate 1 dong of net sales, the company has to spend 0.0320 dong in expenses for business management, but by 2021 to generate 1 dong of net sales, the company only has to pay 0.0090 dong in general administrative expenses.

The company's net sales in 2021 are VND 92,172 million, which decreased by VND 12,788 million in 2020 with a rate of 12.18% The decrease in net revenue from sales and provision of services mentioned above is due to the fact that in 2021, the company's net sales decreased (this is considered a weak part of the company in the process of production and consumption of materials in the field of construction) The reason for the decrease in the company's revenue from sales and service provision is that in

2020, the COVID-19 epidemic is still relatively complicated, directly affecting the company's production and business activities.

The company's financial performance in 2021 and 2020 are both negative because financial income in 2021 (VND 151 million in 2021) and

2020 (VND 32 million) are not enough to cover operating financial expenses (in 2021 it is VND 4,543 million, and VND 4,374 million in 2020) One of the reasons is that the company uses a lot of financial leverage.

Conclusion: The performance results of Lam Son technology development joint stock company in 2021 decreased compared to 2020 due to:

- In 2021, net sales decreased (this is a weak point of the company in the process of trading and providing services related to railway and road construction) compared to 2020 Although during the year the cost of goods sold and general administrative expenses of the enterprise both decreased, the cost of goods sold ratio increased This shows that the decrease in COGS is not reasonable In the year, the company did not incur selling expenses, showing that the company did not focus on sales and service provision Meanwhile, the company's financial income at the end of 2021 increased sharply compared to the beginning of 2021 (the growth rate was 371.88%) This shows that in the year companies mainly focused on financial investment

Solutions: In the next business period, in order to improve the operational efficiency of the whole company, Lam Son technology development joint stock company needs to:

- Use cost savings in the process of operation, especially the cost of goods sold The company should negotiate with input material suppliers, especially long-term suppliers to enjoy better COGS incentives, the company also should research the current market demand from which to store input materials appropriately At the same time, the company needs to come up with measures to help promote product consumption in the context of the epidemic by focusing on improving the quality of construction products and services, enhancing ng the company's reputation in the market by diversifying customer files as well as construction projects Search for new project types and focus on projects with fewer competitors In addition, the company can also have construction incentive packages for customers to reduce the price of work for long-term customers and new customers in order to retain old customers and expand the new customer file, which can both help the company increase profits and the company can also reach more potential customers Not only that, the company needs to focus on investing more in the fields of communication: building a professional marketing team with full experience and skills in the fields of railway and road construction, website construction, etc website, promoting a communication platform to easily reach customers, constantly explore and apply knowledge in the field of construction to be able to improve the quality of construction works, accelerate the completion of construction projects, improving the company's reputation in the market, diversifying forms of service provision.

Table 2 5: Analysis of debt scale of Lam Son technology development joint stock company

3 Taxes and other payables to the government budget 23 330 -307 -93.03%

13 Science and technology development fund 236 5.806 -5.570 -95.94%

(Source: Calculated from the audited financial statements in 2020, 2021 of

Lam Son technology development joint stock company) Table 2 6: Debt structure analysis and debt management level

VND 254.939 328.730 -73.791 -22,45% I.Total receivables-to-total assets ratio Times 0.2783 0.2269 0.0515 22.69%

II.Operating liabilities-to- total assets ratio Times 0.3444 0.4532 -0.1088 -24.00%

III.Total receivables-to- operating liabilities ratio Times 0.8082 0.5006 0.3075 61.44%

Current receivables at the beginning of the year

Current receivables at the end of the year

6 Cost of goods sold Million

Current payables at the beginning of the year

Current payables at the end of the year

V Days of Sales of Million 284.205 224.901 59.305 26.37%

VII Number of days of operating liabilities

(Source: Calculated from the audited financial statements in 2020, 2021 of

Lam Son technology development joint stock company)

Total receivables at the end of 2021 compared to the beginning of the year decreased by VND 3.618 million, a decrease of 4.85%, proving that the amount of capital occupied has decreased However, the total receivables-to- total assets ratio at the end of 2021 increased The turnover of receivables in

2021 decreased due to a decrease in the receivables turnover and an increase in the days of sales of outstanding This shows that the scale of capital being appropriated has increased This shows that the debt collection situation of the company is still limited and has not been improved.

Operating liabilities at the end of 2021 compared to the beginning of the year decreased by VND 61.168 million, the rate of decrease of 41.06% proves that the amount of capital misappropriated has reduced At the same time, the operating liabilities-to-total assets ratio at the end of 2021 decreased The turnover of operating liabilities at the end of 2021 decreased due to a decrease in the operating liabilities turnover and an increase in the number of days of operating liabilities From there, it shows that the scale of capital appropriation, the level of appropriation has decreased.

+ Receivables: at the end of the year, compared to the beginning of the year, it decreased by VND 3.618 million with a reduction of 4.85%, showing that the amount of capital that the enterprise is being occupied has decreased. Specifically:

General assessment of the financial potential of Lam Son technology

Basically, the company's payment ability is relatively satisfactory.Specifically, the company has the ability to pay total liabilities with total assets, to pay all current liabilities with current assets, and to pay all interest expenses by earnings before interest and taxes This trend is increasing gradually, one of the reasons is due to the company's capital mobilization policy at the end of the year compared to the beginning of the year, following the trend of increasing the proportion of capital mobilized from owner’s equity, reducing the proportion of capital mobilized from liabilities, at the same time, the company's financing policy follows the trend of using a part of long-term capital sources after financing non-current assets to finance current assets (the beginning of the year of financing VND 125,206 million Funding at the end of the year is VND 101,632 million), this way of financing will bring stability and financial security for the company.

Net cash flow from operating activities was the only activity during the year with a surplus This is the safest and most sustainable money-making channel Increased net cash flow from business activities helps maintain the company's business operations, which is the basis for the Lam Son technology development joint stock company to exist and develop.

The performance results of Lam Son technology development joint stock company in 2021 decreased compared to 2020 because, in 2021, net sales decreased (this is a weak point of the company in the process of trading and providing services related to railway and road construction) compared to

2020 Although during the year the cost of goods sold and general administrative expenses of the enterprise both decreased, the cost of goods sold ratio increased This shows that the decrease in COGS is not reasonable.

In the year, the company did not incur selling expenses, showing that the company did not focus on sales and service provision Meanwhile, the company's financial income at the end of 2021 increased sharply compared to the beginning of 2021 (the growth rate was 371.88%) Even so, financial revenue is still not enough to cover financial expenses.

The scale of receivables and the scale of operating liabilities decreased.

At the end of the year compared to the beginning of the year, the level of capital is occupied in total assets increased, and the level of capital occupies in total assets decreased.

In terms of the cash flow situation, it can be seen that in 2021, net cash flow is negative and decreased compared to 2020 This shows that the size of the company's cash capital is on a downward trend.

The performance results of Lam Son technology development joint stock company in 2021 decreased compared to 2020 because, in 2021, net sales decreased (this is a weak point of the company in the process of trading and providing services related to railway and road construction) compared to

2020 (The decrease in the company's net revenue from sales and service provision is due to the fact that in 2021, the Covid-19 pandemic is still extremely complicated, causing a negative impact on the economy, directly affecting the company's production and business activities, unfinished construction work was delayed due to the raw materials for construction and the limited human resources, and another reason comes from trade discount policy The company's commercial activities are not really effective in the context of 2021 associated with the epidemic) At the same time, the company has not managed well the expenses in the process of operation, preferably the cost of goods sold This can be shown through the cost of goods sold ratio in

2021 compared to 2020 (The reason is that in 2021, the COVID-19 pandemic will still be extremely complicated, causing a negative impact on the economy, and directly affecting the company's production and business activities In 2021, the demand for construction of railway and road works,the demand for construction materials also decreased, the number of goods consumed decreased, so the company had to reduce production scale, cut production costs, the company reduces production norms, leading to a decrease in the company's cost of goods sold) The strong increase in financial revenue of the company in 2021 compared to 2020 shows that in the period of 2020-2021, the company is mainly interested in financial activities However, interest expense on financial loans also increased sharply due to the increase in loan interest This shows that the company may use a lot of financial leverage during the year.

The size of the company's receivables in 2021 decreased compared to

2020 The reason was that the company quickly recovered the misappropriated debts from customers However, the turnover of receivables decreased due to a decrease in the receivables ratio and an increase in the days of sales of outstanding This is because the Covid epidemic has negatively affected the economy in general and the construction industry in particular, the company's partners also have difficulty in payment, so the turnover of receivables decreased The size of the company's payables in 2021 decreased compared to 2020 The reason was that in the year the company paid debts to the seller This will reduce the amount of capital occupied by the company. The turnover of payables in 2021 is slower than in 2020 due to a decrease in the company's operating liabilities turnover and an increase in the number of days of operating liabilities

During the year, the company also did not make good use of financial leverage Although the company's interest expense in 2021 increased, the company's earnings before taxes and interest and net income decreased The rate of decline of net income is faster than the rate of decrease of earnings before taxes and interest The reason is that the complicated development of the Covid epidemic forced the company to increase its mobilized capital from commercial banks and other credit institutions.

The company's net cash flow in 2021 was negative and decreased compared to 2020 The main reason was the decrease in net cash flow from investing activities This is because the company increases spending on purchasing and investing in fixed assets and other non-current assets while increasing capital investment spending in other entities This will bring great value to the company in the long run Another reason is the decrease in net cash flow from the financial activities of the company This is because the company's current and non-current borrowings received in 2021 are less than in 2020 This is due to the complicated developments of the covid epidemic in

2021, causing the company to reduce production scale, cut production costs,and reduce the company's need for loan capital This helps the company reduce financial risk but will also reduce the company's profitability.

In the context of chapter 2 on analyzing the financial potential of Lam Son technology development joint stock company, the thesis has clarified some of the following issues:

First, the first part of chapter 2 gave a detailed overview of the history of the formation and development of Lam Son technology development joint stock company At the same time, he also clarified the structure and organization of the company as well as gave a brief overview of the financial situation of Lam Su technology development joint stock company.

SOLUTIONS TO IMPROVE THE FINANCIAL POTENTIAL

POTENTIAL OF LAM SON TECHNOLOGY

3.1 Economic context and development orientation of Lam Son technology development joint stock company in the coming time:

Our country's socio-economy in 2022 takes place in the context that the world economy is facing great challenges, rapid and unpredictable fluctuations, and high instability; Inflation rose to its highest level in decades forcing countries to tighten monetary policy.

However, our economy in the past year had a strong recovery, the macro- economy was stable, inflation was under control, and major balances were secured The improved business investment environment positively contributes to socio-economic recovery and development, creating the trust and support of the people and the business community Some industries had higher growth than the year before the Covid-19 epidemic

The announcement of the General Statistics Office on December 29 shows that a prominent highlight is that GDP in 2022 is estimated to increase by 8.02%, reaching the highest increase since 2011 due to the recovery of the economy In the increase in the total added value of the whole economy, the agriculture, forestry, and fishery sectors, the industry and construction sectors, and the service sector all had significant growth, respectively: 3, 36%; 7.78%, and 9.99%.

Notably, in the industry and construction sector, the processing and manufacturing industry continued to be the growth engine of the whole economy with an increase of 8.10%, contributing 2.09 percentage points to the growth rate of total value added of the whole economy The service sector has recovered and grown strongly with a growth rate of 9.99% in 2022 - the highest in the 2011-2022 period.

Especially, GDP per capita in 2022 at current prices is estimated at 95.6 million VND/person, equivalent to 4,110 USD, an increase of 393 USD compared to 2021 Labor productivity of the whole economy in 2022 at current prices is estimated to increase by 4.8% due to the improvement of workers' qualifications, reflected in the proportion of trained workers with diplomas and certificates in 2022 also increased over the same period last year.

Agriculture, forestry and fishery production in 2022 will maintain stable growth and maintain the supporting role of the economy The output of some perennial crops mainly increased compared to the previous year; diseases on livestock and poultry are controlled; logging activities are actively implemented Aquaculture has developed quite well due to the increase in demand and export prices of key aquatic products such as pangasius, farmed shrimp

Industrial production in the fourth quarter of 2022 tends to slow down, the growth rate of added value is estimated at 3.6% over the same period last year For the whole year of 2022, the added value of the industry increased by 7.69% over the previous year, of which the processing and manufacturing industry increased by 8.10%.

One of the positive points of the economy in 2022 is that the total number of enterprises entering and re-entering the market will reach 208,300, up 30.3% compared to 2021 The survey results on business trends of enterprises in the processing and manufacturing industry in the fourth quarter of 2022 also show that: Up to 66.3% of enterprises think that the business situation is better and stable compared with the third quarter of 2022.

An area with a strong recovery after the Covid-19 epidemic is under control is trade, consumer services, transportation, and tourism.

In general, in 2022, the total retail sales of consumer goods and services increased by 19.8% over the previous year; passenger transport increased by 52.8% and rotation increased by 78.3% over the previous year; cargo transportation increased by 23.7% and turnover increased by 29.4% over the previous year; International visitors to our country reached 3,661.2 thousand arrivals, 23.3 times higher than the previous year (However, this number still decreased by 79.7% compared to 2019, the year there was no Covid-19 epidemic) Out of a total of nearly 3,661.2 thousand international visitors to Vietnam this year, visitors arriving by air reached 3,277.2 thousand arrivals - accounting for 89.5% of international arrivals to Vietnam

Another positive point is that in 2022, when global inflation pressure is high, the State Bank of Vietnam has adjusted interest rates to match the international context and macroeconomic stability As of December 21, 2022, the total means of payment increased by 3.85% compared to the end of 2021; capital mobilization of credit institutions increased by 5.99%; credit growth of the economy reached 12.87%.

Another highlight is that the total import-export turnover of official goods reached a new record of USD 732.5 billion for the whole year of 2022; trade surplus of 11.2 billion USD This is a record number in recent years In which, exports increased by 10.6%; imports increased by 8.4% The merchandise trade balance in 2022 is estimated to have a trade surplus of 11.2 billion USD and is the 7th consecutive year of trade surplus

Total foreign direct investment (FDI) registered in Vietnam as ofDecember 20, 2022 (including newly registered capital, adjusted registered capital, and value of capital contribution and share purchase by investors) foreign investment) is estimated at nearly 27.72 billion USD Realized foreign direct investment capital in Vietnam in 2022 is estimated at nearly US$22.4 billion, up 13.5% over the previous year This is the highest amount of foreign direct investment in the past 5 years In addition, for the whole year of

2022, CPI increased by 3.15% compared to 2021 and inflation was at 3.15% - reaching the target set by the National Assembly.

In 2023, Vietnam will reach 100 million people and its GDP will reach

10 million billion VND Although Vietnam's economy is experiencing a strong recovery, uncertainties also increase, causing economic growth and import and export to slow down and attracting foreign investment without a clear breakthrough

As an economy with high openness, there are many potential risks before the world economic trend is at a fragile time, growth slows down, even falling into a short-term local recession; Climate change is increasingly unusual, along with increasingly complex geopolitical tensions, Vietnam is facing pressure in governance Especially commodity prices, interest rates, exchange rates in the face of rising global inflation, and tight monetary policies of the

US and European Central Banks (two main export markets account for 41% of the export market share from Vietnam) Moreover, the epidemic is continuing to develop complicatedly, while the prevention and control work and preventive medicine capacity are still limited