Essay starting a business in the digital age

4, Layout of premises 4.1, Factory Main production area factory: Area: 400 square meters Description: This is where bamboo fiber fabric production machinery, dyeing equipment and related

THE STATE BANK OF VIET NAM MINISTRY OF EDUCATION AND TRANING

HO CHI MINH UNIVERSITY OF BANKING

ESSAY: STARTING A BUSINESS IN THE DIGITAL AGE

Lecturer : Bui Due Sinh

Class :DIM703 232 9 TA L23

Group 3 Member's name Student code

Trinh Thi Huyen 050609211968

Tran Thi Tuong Vy 050609212341 Nguyen Thị Hoa Mai 050609212035

Vo Hoang Phuong Uyen 050609212320

RaHlan Tong Thị Lan Huong 050609211975

Ho Chi Minh City, Jun 2024

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TABLE OF CONTENTS

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1 Cost table of raw materials, equipment and tools at the store: 36

2 Cost of raw materials, tools and tools at the workshop 38

3 Cosf estimate table: ch ni ưư 42

4 Cash flow statement table TS nh kh rrrrk 43 REFERENCTPES QQ On kh Ki Ki KH BE 44

TABLE OF CONTENTS

Table 1 Job description for each DOSItIOH - - iii nin i ii iii iii inane aaa 9 Table 2 Information of Heads of departinents - - - - + 5 + - xxx ky 11 Table 2i ni nh hố h 12 Table 4 Challenges and solutions for fiber processing using mechanical methods 14 Table 5 Advantages and Applications of Bamboo Fiber Fabric -.- 19 Table 6 Product price list 8n he eỐ 20 Table 7 Shirt size chart 2.00 cccsscccssccccceecceeeeeeceeeceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneeeneess 20 Table 8 Objectives and benefits of online shirt design ccsseccsescseeeeceeeeeeeeeeeeeeeeeees 24 Table 9 SWOT ooo EE EEE EEE EEE KH EI I III i ii iii HH gi 28 IFIU-0000900 ii 1 óo 30 Table I1 Advertising and sales channneÌs .- SH kh kg 32

TABLE OF CONTENTS FIGURES

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Figure 6 Hoodie n ốốốốố ố ẽố hố ens 22 Figure 7.Sun protection JaCKeK - + << sọ HH Họ Họ ok K 22 Figure 8.Cost of furniture, decoration, and fitting area at the stOF€ -~<sS- 36 Figure 9 Cashier cOUHf€T GOSfS - ĐT kk HH kg KH go gà 36 Figure 10.Cost of warehouse and manàeiment TOOI -ĂSSSS xxx y 37 Figure 11.Cost of equipment and other tools and equIpIm€II - «55 «<< «+ 37 Figure 12 Infrastructure COStS «0 ie te te it iil ini nil niin iii iii iii iii aaa naa naa aaa 38 Figure 13 Cost of production machinery and equIpI€HE - << + << <+<sxxx<<+ 38 Figure 14.Cost of office, warehouse, and break af€aS Sa 39 Eigure LŠ.Cost of toIlet area and other COSẨS nhe cư 39 Figure 16.Cost of fabric and t-shirt Figure production .:::ccccccceeceeeceeeeeeeeeeeeeeeeeeeeees 40 Figure 17.Production costs of shirts, hoodies, and sun protection jackets .:008 4I Figure L8.EstimatecÌ COSES nn nn nnn nnn KH KH Ho i ii Họ Họ 42 Figure 19 Investment capital and cash flow over the y€aFS - se ese 42 Figure 20.Cash flow sfafeIn€iit - cọ TT ĐH 43 Eigure 2l.FInancial appra1saÌ . - - «<< xxx xxx Họ Họ KH 43 Eigure 2l.FInancial appra1saÌ . - - «<< xxx xxx Họ Họ KH 43

INTRODUCTION

1 Reason for choosing the topic

Over the decades, the fashion industry has witnessed the strong rise of impressively innovative brands and products However, amid this constant flow, the trend of starting

a business that produces its own products from natural materials, such as bamboo fabric, has emerged as a notable option This is not just a trend but also a statement about sustainability and respect for the environment

Globally, interest in sustainability and green manufacturing processes 1s gradually changing the landscape of the fashion industry Especially in developed countries such

as Europe, America and Australia, this trend is not only a need but also a commitment

to environmental and social responsibility The application of sustainable standards from design to production has become an undeniable trend, promoting transformative and far-reaching changes

In Vietnam, after many years of pursuing this transformation, the positive impacts

of the Covid-19 pandemic have further highlighted the need for change and sustainability in the fashion industry Faced with this situation, Bamboo Chic was established, not only expanding the selection of products made from sustainable and high-quality bamboo fabric but also promoting green consumption habits in the Vietnamese community

PART 1 : BUSINESS DETAILS

1 Registration details

Bamboo Chic Company Limited

Registration certificate number: 0313730318 issued by the Department of Planning and Investment of Thu Duce city on June 4, 2024

Head office: 68 Street No 2, Binh Tho Ward, Thu Due City

Phone: 0933.527.421

2 Business

Producing fabric and trading fashion products from bamboo fiber fabric, including t-shirts, hoodies and sun protection shirts Focus on producing and providing high quality products that are environmentally friendly and comfortable for the wearer Using the main material is bamboo fiber fabric, bringing lightness, softness and airiness

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to the user In particular, the products are also designed for effective sun protection, protecting the skin from the effects of UV rays

3 Juridical

Enterprises ensure to comply with the following laws:

« Enterprise Law No 59/2020/QH14 was passed by the 14th National Assembly

of the Socialist Republic of Vietnam, 9th session, on June 17, 2020

« Commercial Law No 36/2005/QH11 was passed by the 1 1th National Assembly

of the Socialist Republic of Vietnam, 7th session, on June 14, 2005

¢ Intellectual Property Law No 50/2005/QHI11 was passed by the 11th National Assembly of the Socialist Republic of Vietnam, 8th session, on November 29, 2005

« Tax Law No 38/2019/QH14 was passed by the 14th National Assembly of the Socialist Republic of Vietnam, 7th session, on June 13, 2019

« Law on Fire Prevention and Fighting, Resolution No 25/NQ- June 2, 2010, Decree No 46/2012/ND-CP amending and supplementing a number of Decree No 35/2003/ND-CP, Decree No 130 /2006, Decree 79/2014/ND-CP

4, Layout of premises

4.1, Factory

Main production area (factory): Area: 400 square meters

Description: This is where bamboo fiber fabric production machinery, dyeing equipment and related equipment are located Space is needed to move and operate equipment effectively

Garment area: Area: 300 square meters

Description: This is a place for sewing clothes from manufactured and dyed fabrics Sufficient space is needed for sewing machines, cutting tables and trons, as well as warehouses to store products and accessories

Storage and office area: Area: 100 square meters

Description: This is the place to store raw materials (fabric, bamboo fiber, dye chemicals ) and finished products Office space is also needed to work, take orders, and perform administrative tasks

Dining and restroom area: Area: 80 square meters

Description: Ensure there is space and hygiene facilities for employees during work

Safe path and walkway area: Area: 40 square meters

Description: Arrange space for safe paths and walkways for movement of employees and vehicles, while ensuring ventilation and safety in the workshop Parking area: Area: 80 square meters

Description: Arrange parking space for employees

4.2 Sales shop

Product display area: Area: 150 square meters

Description: Main area to display t-shirts, shirts, hoodies and sunscreen products Includes display shelves, cabinets, and prominent display points to attract customers Cashier counter: Area: 20 square meters

Description: Area for payment and customer service Includes cashier counter, computer and payment devices

Warehouse area: Area: 100 square meters

Description: Place to store stock and inventory Includes shelves for storage, warehouse and space for merchandise management

Fitting room: Area: 50 square meters

Description: Area where customers can try on items before buying Includes changing rooms, mirrors and a comfortable space for customers to comfortably try on clothes

Management room: Area: 80 square meters

Description: Area to manage business activities, recetve orders, process payments and other administrative tasks includes desks, computers, filing cabinets and meeting

space

Resources

Production TT Department Department

Department Department

Figure 1 Personnel structure

Total number of employees: 25 people

Investor cum manager: 6 people

General manager Supervise all activities of employees, department leaders,

directly direct and meet with partners

Marketing room Come up with ideas, create creative product marketing content

and manage marketing strategies to have a good consumer market

Human resouces Responsible for managing human resources issues within the

Department

department store, including recruitment, training, employee policies,

performance management and employee benefits issues Research & Recetve feedback from customers and market trends to develop Development new products, research to improve old products and old processes

to optimize costs

Business

Department

The sales department is responsible for analyzing the market,

developing sales strategies, building customer relationships, finding and taking care of new customers, negotiating contracts, resolving disputes and reporting results business Ensure the business achieves revenue goals

Table 1, Job description for each position

3 Information of Heads of departments

Ngoc Hanh | manager goals and plans Administration, Ho Chi

Ensure compliance with legal Minh City Banking

regulations and business University

ethical principles

Nguyen Anh | Head of Manage communications, Bachelor of Marketing, Minh Marketing | advertising and marketing Ho Chi Minh City

Department | campaigns University of

Build customer relationships Technology and increase online and

offline interactions

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Pham Thanh | HR Manage issues related to Bachelor of Business Hang Manager employee salaries and Administration, Ho Chi

benefits Minh City Banking Ensure that the store complies | University with regulations on labor

safety and labor ethics

Manage resources and train employees to ensure efficient and standard production operations

Tran Anh Head of Monitor and evaluate the Bachelor of Fashion Linh R&D effectiveness of products and | Design, Ho Chi Minh

Department | services City University of

Collaborate with other Technology

departments to ensure that product development meets customer and market needs

Vo Nhu Chief Monitor and report on Bachelor of Finance Hien accountant | revenue and expenditure, and Banking from Ho

profit and cash flow Chi Minh City Banking

Dialogue with relevant University

parties such as banks, tax authorities and business

partners

Trinh Minh | Sales Develop and implement sales | Bachelor of Business Sang manager strategies for employees to Administration, Ho Chi

achieve sales goals

Manage and develop customer relationships, Minh City Banking

University

Table 2 Information of Heads of departments

4 Staff costs

PERSONNEL COSTS

Unit: Dong Department Position Quantity |Salary Total

1 Management Department

CEO 1 20,000,000 | 20,000,000 Marketing Department Department Head 1 12,000,000} 12,000,000

Department Head 1 9,000,000 | 9,000,000 Sales Department Sales Staff 3 6,000,000 | 18,000,000 Accounting Department Accountant 1 9,000,000 | 9,000,000

HR Department Department Head 1 12,000,000 | 10,000,000 Technical Department Department Head 1 9,000,000 | 9,000,000 Security Guard 1 5,000,000 | 5,000,000

10 92,000,000

2 Production Department

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Fabric Production Staff 5 6,000,000 | 30,000,000 Garment Making Staff 10 6,000,000 | 60,000,000

15 90,000,000 Total Personnel Costs 25 182,000,000

Table 3 Personnel costs

PART 3 : PRODUCTION PROCESS

1 Source of raw materials

Bamboo Chic bamboo fabric production enterprise seeks and establishes close cooperation with bamboo farmers in Thanh Hoa, one of the lands famous for its abundant and quality bamboo raw materials With more than 78,000 hectares , Thanh Hoa is the locality with the largest bamboo area, accounting for 50% of the country's bamboo area Living in the middle of a huge potential raw material area when households grow bamboo, most households still live in poverty Thanks to favorable natural conditions and efforts to protect the environment, households in Thanh Hoa have switched from traditional farming to bamboo farming, contributing to the supply chain

of raw materials for fabric production bamboo And cooperating with farmer households instead of large suppliers is also part of the business's desire Desire to improve people's lives in poor rural areas, contributing to helping bamboo growing households in Thanh Hoa

According to general price reference from bamboo farmers, the price of luong bamboo in Thanh Hoa fluctuates as follows:

southern provinces like Ho Chi Minh City And Bamboo Chic enterprise chose Ms Thao's household as a source of raw bamboo materials for the bamboo fabric production process Contact phone number: 0378853678

In addition to Ms Thao, Bamboo Chic business also cooperates with Mr Thien Manh's household It is known that Thien Manh is also a resident of Thanh Hoa He specializes in providing bamboo poles, bamboo poles, and tree poles in large quantities for projects, agents, and businesses Phone number: 0329066838

When collaborating with businesses to provide technical support and training for households, Ms Thao and Mr Manh applied modern farming methods to optimize bamboo production, from caring for and protecting the trees planting to harvesting process, ensuring a stable and quality source of raw materials This not only helps increase the income of two households but also promotes sustainable development of agriculture and living environment in Thanh Hoa

2 Bamboo fiber fabric production process

2.1, Bamboo fiber processing

Technology using mechanical methods

The method of processing bamboo fiber using mechanical technology is a sustainable production process, without using toxic chemicals, to create bamboo fiber from the raw material of bamboo This process mainly uses mechanical force and natural enzymes to separate and soften cellulose fibers from bamboo

Benefits of mechanical technology:

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Sustainable resource management: Bamboo growing areas are often managed according to sustainable standards, protecting ecosystems and ensuring long-term development of resources

e High product quality

Soft and durable fiber: Bamboo fiber produced using mechanical technology is usually soft, durable and has good air permeability, suitable for high-end textile products

Does not cause skin irritation: The product does not contain toxic chemicals, safe for the user's skin and health

Challenges and solutions

Challenge Solution

High initial investment costs:

Machinery and mechanical equipment

can be expensive, requiring large initial

investments

Seek funding sources or cooperate with research organizations to reduce initial investment costs

Highly technical process:

Mechanical processing requires highly

skilled techniques and human resources Train and improve skills for human

resources, cooperate with experts in the field of fiber and textile production

Table 4 Challenges and solutions for fiber processing using mechanical

methods 2.2, Harvest and prepare ingredients

Bamboo Harvesting: Bamboo is harvested from sustainable sources The type of bamboo selected must ensure it does not contain toxic chemicals during the planting and care process

Prepare bamboo: Bamboo is cut into short pieces, usually about 20-30 cm for easy handling

Bamboo grinding: Bamboo 1s ground into powder or paste using mechanical mills This process helps break down the structure of the bamboo and facilitates subsequent processing steps

Enzyme treatment: Bamboo pulp is soaked in a natural enzyme solution (such as cellulase) This enzyme helps dissolve the bonds between cellulose fibers, softening and separating them without the use of toxic chemicals ( SpringerOpen ) ( Fairware 2024 ) Combing: The separated and softened cellulose fibers are brushed to separate the fibers and remove impurities

Spinning: After being combed, bamboo fibers are spun into long and continuous fibers This process can use specialized spinning machines to ensure yarn quality and uniformity

2.3 Weaving bamboo fiber fabric

Preparing raw materials: Bamboo fibers, after being processed by mechanical technology, will be selected for uniform and best quality fibers to be ready for the weaving process

Pre-treatment: Bamboo fiber after preparation will be pre-treated to clean and soften This process includes rinsing the bamboo fibers to remove dirt and remaining impurities, and also helps soften the fibers for ease in the weaving process

Weaving fabric: After pre-treatment, bamboo fibers will be put into a weaving machine to form fabric The weaving process will be carried out on appropriate weaving machines depending on the desired fabric material, possibly a knitting machine (Using needles to bind the fibers together, creating a fabric with a network structure) , Jacquard loom (Used to create complex patterns on fabric)

Continued processing: Once woven, the fabric will undergo further processing steps for cleaning and finishing Steps like:

e Remove excess fibers and foreign materials from the fabric surface

e Wash the fabric to remove dirt and remaining chemicals from the manufacturing

process

e Press the fabric to create a smoother and flatter surface

Quality check: After going through pre-treatment, weaving and further processing steps, the fabric will be checked for quality This process ensures that the final product meets quality and technical standards

End of production process: After quality inspection, the fabric will be tightly folded and packed into fabric rolls to prepare for the fabric dyeing step

Air blow dyeing process:

e Prepare and mix dye solution:

Prepare the dye in powder or granule form

Prepare the dye bath by dissolving the dye in a small

amount of water to form the dye bath

Figure 2 Air blow dyeing machine a

e Mixing the dye solution with air:

The dye solution is prepared and mixed with a stream of high-pressure air This process ensures that the dye is evenly dispersed and completely dissolved in air, forming a dye-gas mixture

Air blow dyeing machine:

The fabric is passed through the air-dye mixture in an air-blow dyeing machine The air blow dyeing machine has a special mechanism to ensure that the mixture is sprayed onto and in contact with the fabric evenly and effectively

High-pressure air will help push the dye solution into the fabric fibers, where the color will be absorbed and dyed evenly

Dyeing process:

During operation, the fabric will continuously move through this aerodynamic system This process takes place quickly and effectively, saving time and energy compared to traditional dyeing methods

Finishing and treatment after dyeing:

After completing the dyeing process, the fabric is removed from the dyeing machine system

The fabric will then be processed after dyeing such as drying and final washing to remove waste and ensure color and quality And prepare to be transferred to the garment factory to process the product

Benefits of air blow dyeing technology:

e Save water: Do not use water for the dyeing process

e Energy saving: High efficiency, energy saving compared to traditional dyeing methods

e Environmental protection: Minimize the amount of wastewater and toxic chemicals to the environment

e Uniform color: Make sure the dye color penetrates evenly into each fiber of the fabric

2.5 The process of creating the final product

Receiving product design from the design team:

The company's design department plans and designs product models based on market needs and the company's business strategy

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Fabric cutting:

Workers in this department will use machines to cut fabric details according to samples prepared from the design department

Sewing into pieces:

Workers in this department will be responsible for sewing fabric details into shirts They will work on industrial sewing machines to assemble parts together in the prescribed order

Machining and finishing:

After being sewn, the details of the shirt will be transferred to the processing department for reinforcement and finishing, including the use of accessories such as buttons, buttons, zippers, anti-UV tags,

Check quality:

The shirt products will be transferred to the quality inspection department, where workers will inspect each product to ensure that they meet the required quality standards

Packaging and shipping:

After quality inspection, the shirt products will be folded, packaged and prepared

to be shipped to retail stores or delivered to distribution agents

3 Product

Bamboo fabric, also known as bamboo fiber fabric, is created by

_ crushing bamboo trees to extract

cellulose - a substance that is durable, flexible, lightweight and flexible When combined with some additives, this fabric has increased durability, safety and environmental friendliness

Advantages and applications of bamboo fiber fabric

Good ventilation and sweat absorption: Bamboo fiber is cool and absorbs sweat effectively, ideal for children and hot summer days Environmentally friendly: Bamboo fabric production does not require pesticides, consumes less water than cotton, protecting the environment

Anti-UV and ultraviolet rays: Bamboo fabric prevents UV and ultraviolet rays better than cotton, protecting the skin from sunlight Highly durable and soft for the skin: Bamboo fabric is durable, soft, creating a comfortable and gentle feeling

Safe for sensitive skin: Certified by Oeko Tex Standard 100, bamboo fabric does not contain toxic chemicals, suitable for sensitive skin

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Product price list

4 Sun protection jacket S, M, L, XL 500.000

Table 6 Product price list SHIRT SIZE CHART

Long shirt 69 71 73 75 Shirt width 53 35 57 59 Long sleeve 22 22 23 23 Shoulder level 49 51 53 55

Design: Bamboo Chic aims for simplicity and elegance Bamboo Chic's T- shirts have a round neck or V-neck design, simple but sophisticated, suitable for both men and women

Outstanding features: Outstanding sweat absorption ability, natural antibacterial, helping you always feel dry and comfortable

Color: Diverse from basic colors such as white , black, gray to bright colors suitable for all styles

Design: Button-down shirt, with collar, long or short sleeves, often with details such as chest pockets and cuff buttons

Color: Rich in colors from neutral

to bold, and can have elegant patterns The shirt is antibacterial, wrinkle-free, easy to iron and maintain Because of