BÁO CÁO THỰC TẬP-INVESTMENT GPS SYSTEM IN VINATAXI

VINATAXI    REPORT INVESTMENT GPS SYSTEM IN VINATAXI Location : Ho Chi Minh City, Vietnam Proposer : Vinataxi Performer : Vinataxi Investor : ComfortDelGro (Singapore) Tp.Hồ Chí Minh - Tháng 1 năm 2008 Ho Chi Minh City, June 2014 VINATAXI    REPORT INVESTMENT GPS SYSTEM IN VINATAXI VINATAXI (General Director) CONSULTANT CONSULTANCY & INVESTMENT THAO NGUYEN XANH CO. (Vice General Director) CHIA CHUEN HUEI NGUYỄN BÌNH MINH Ho Chi Minh City, June 2014 Investment GPS System in Vinataxi TABLE OF CONTENT CHAPTER II: THE ESSENTIAL INVESTMENT PROJECT 3 2.3. GPS solutions for taxi management 4 2.4. Status of application of GPS technology in the management of taxi in Vietnam 7 2.5. Conclusion about necessary of this investment 7 CHAPTER III: THE CONTENTS OF THE PROJECT 9 3.1. The list of machinery and equipment required investment 9 3.2. The progress of project 9 CHAPTER IV: FINANCIAL PERFORMENT 11 Vinataxi Investment GPS System in Vinataxi CHAPTER I: INTRODUCTION ABOUT THE PROJECT 1.1. In troduction about the project  Project Name : Investment GPS system in Vinataxi  Address: Ho Chi Minh City  Project Objectives: Investment into the GPS system to manage about business activities of Vinataxi : + Reduce personnel costs + Support for professional management + Anti- revenue losses + Support Executive + Improve customer service + Raising aware of drivers  Type of investment : ComfortDelGro Corporation (Singapore) investment 100% capital  Forms Management : Through Project Management Unit of Project is established by the investors.  Value investors GPS : 4,818,848,000 VND (equivalent 372,975S$)  Financial performance: NPV = 1,182,125,000 VND > 0; IRR = 25% >> re = 18%  The Project brings high profits for the investors The implementation progress: The project was deployed in August 2006 and put into use in early 2007 and gradually completed in 2008 1.2. The unit responsible for project  Unit investment : ComfortDelGro Corporation (Singapore)  Unit suggestions: Vietnam Taxi Company (Vina Taxi)  Unit implemented: Vietnam Taxi Company (Vina Taxi) Vina Taxi Co. is a joint venture between Tracodi Co. and ComfortDelGro (Singapore), established under the investment license dated 24.10.2008 No. 411022000346. English name: VIETNAM TAXI CO., LTD Trading name: VINATAXI Location: Tan Binh Industrial Zone, Road No. 4, Lot 4-15B, Tay Thanh Ward, Tan Phu District, Ho Chi Minh City Tel: (84 8) 38155152 - 38155153 Fax : (84 8) 38155158 Have a competitive advantage when the driver team have a lot of experienced , manage cost-effective and achieve efficient economic from advantages of scale. Therefore, Vinataxi is expected to continue to hold the leading position in the industry, particularly in the southern region. Thus, we believe that the growth of revenue will be stable, the using of capital effect will increase. 1.3. Legal Basis Vinataxi Page 1 Investment GPS System in Vinataxi - Law on Investment on 29/11/2005 No.59/2005/QH11 of the National Assembly of the Socialist Republic of Vietnam; - Enterprise Law on 29/11/2005 No.60/2005/QH11 of the National Assembly of the Socialist Republic of Vietnam; - Law on Road Traffic; - Dispatch No.206/2003/QD-BTC December 12, 2003, promulgating the regime of management, use and depreciation of fixed assets. Vinataxi Page 2 Investment GPS System in Vinataxi CHAPTER II: THE ESSENTIAL INVESTMENT PROJECT 2.1. Demand for use Taxi at the moment The taxi service branch is one of the industrial capable of positive growth in the macroeconomic situation in country at present. We estimate the taxi market will stabilize growth, especially in the large cities due to: (1) .Flow of passengers using the road traffic have increased significantly with the average speed at 9 % / year comes from the travel demand of the people as well as the increase in international passenger traffic to Vietnam. Moreover, the growth index of road traffic and the number of international tourists in the first 5 months of 2006 there has been a strong breakthrough compared with 2005. Consequently, we believe that taxi services will grow faster than by the transport market, strong growth in both scale (traffic volume) and number of passengers. Source: GSO 1. (2) People's incomes increase , traveling in the rainy season and the development yet strong enough of the public transport such as buses, motor taxi making people use the taxi services more because of the service and its utility. In short, today, growing social , people's lives improved physically and mentally. Demand for food, clothing, cosmetic, including the transportation of people increasingly more attention. Besides the appearance of the motorcycle, car, bus is transportation mainly of people, the demand uses taxis increasingly became popular. Demand for uses. Vinataxi Page 3 Investment GPS System in Vinataxi 2.2. The difficulties in management and operating taxi system Currently, the taxi companies operate as the traditional way: the customer will call to operator, he/she will recieves and writes information on paper: address, taxis and address of customers then, this information will be send to call center and up to the talkie. In parallel with the large number of people and vehicles, the administration - management and resolve issues arising relating faced many difficulties, may be mentioned the following difficulties ( 1) Call-Centre works - It was mainly based on the radio. Staffs could not locate the taxis so that they must depend entirely on the response of drivers whenever they wanted to go or arrived the points. Many drivers intended to cheat by reporting the wrong cars’ numbers, wrong locations or not reported to the Call-Centre when they got the customers to avoid being tracked. - At the tradition Pick-up-points where drivers used to gather to get and manage queues by themselves, there were some negative status like: the monopoly status (just a group of drivers could join that rank, the other could not), drivers could choose customers to serve, cheat customer, offer negotiated prices higher than by taxi meter - Beside, when those areas were short of car, staffs could not know in advance so that they could not give notice for drivers to bring car back to serve customers. (2) Customer Service works - The investigation mainly based on the radio and self-conscious of drivers. - Staffs resolved the complaints based on their personal experience so that must of our feedback were not convincing. - The rate of successful resolution is very low (<50%) (3) Defer shifts for drivers - The defer shift’s work was difficult, inaccurate and unprejudiced because it much based on the drivers’ reports and staffs’ records. - Drivers and employees took advantage of this work to make their profit and cause financial damage for the company. (4) To revoke taxis due to overdue debt - It was very difficult and took much time for enforcement staffs to take cars back because they could not know cars’ locations while drivers tried to hide by many ways. (5) Issue the VAT invoice for customer - Many drivers colluded with customers to apply for VAT invoice or co-operate with taxi card users to imprint receipts for false trips. In these cases, staffs could not check or verify. 2.3. GPS solutions for taxi management. 2.3.1. The features of GPS technology Vinataxi Page 4 Investment GPS System in Vinataxi The application of GPS technology in the management of transportation are becoming more popular in the world and this is a service that provides high value-adde, base telecommunications technology , information technology, background basis of geographic information systems (GIS). Today, It’s commonly used in the shipping industry on the worldwide. This application is used to monitor, track and manage vehicles in order to increase efficiency and save costs. The system provides the key features following: • Monitor, track parameters velocity, direction of travel, the status start and shutdown machine • Track and route simulation of vehicle movement • Statistical distance, use time, estimated the fuel consumption • Warning excessive speed, moving out of the area or the route permission 2.3.2. System Structure  The system consists of 04 main components: • Server coordinated car: located on Cloud server. This system is common to the taxi business. • Call center server: Server system stored customer data and vehicle coordination rules. Each taxi company will have own server. • Vehicle software: each driver will have own software coordinate car • Rack mounted in the taxi: a taxi have a GPS device setting in car screen to help locate vehicles and communication between the truck with center Figure: Structure taxi management system using GPS technology  The steps conditioned car Vinataxi Page 5 Investment GPS System in Vinataxi 1. Customers call to center to require vehicle 2. Software coordinator is used will send the customer address for the server is waiting car moderators. 3. Servers looking for taxi the nearest with customers and notice pickup . 4. When drivers acknowledge agreeing to pickup customers, this information will be forwarded by the coordinator. 5. Coordinator will notify customers: license plate, time to car arrive 6. Drivers will notice the situation: they're on the way to pick up, has arrived, customer has gotten in or gotten off taxi, to the Private Branch Exchange (PBX) can control situation of vehicle. Compared with the old method is use radio, the new system has the advantages following: + Call-Centre works - System can locate taxis on the Google map so that staffs can keep track of taxis, can know their status (Hired or For Hire) then try to contact drivers to ask them to go to the points or even show them direction to there. After that staffs call back to give our feedback to customer about taxi number and estimated time for taxi to come. - It makes the dispatch job be more efficient and has got customers and drivers compliments. - By GPRS, the queues are updated automatically by the system, drivers can get jobs orderly, can’t refuse the short-trips, can’t offer higher price It also helps stop the monopoly status as a driver can register to join Q in multiple ranks. - By the Q-Board-Display, staffs manage taxis on each rank better as they know the quantity of taxi on queues, status of them ( Free, On call or Meter-on…). It helps re-arrange taxis to serve customer effectively + Customer Service works Vinataxi Page 6 Investment GPS System in Vinataxi - The jobs dispatched by GPRS have the taxi number, time of dispatching and also the route so that drivers must be more responsible to their customers. Many drivers return belongings to customers before being recognized. The number of complaints has decreased significantly. - Currently, the rate of successful resolution is above 80%. + Defer shifts for drivers - Employees can easily check and confirm the business downtime of taxis correctly and objectively - It helps reduce the quantity of defer shifts and the negative attitudes of staffs. + To revoke taxis due to overdue debt - Locations of cars are shown on map clearly so that enforcement team can come to take car back quickly. - For drivers who intend to turn off the GPRS equipments, staffs still can track their locations by using some tools of GPRS system. + Issue the VAT invoice for customer - Staffs can check the authenticity of trips by viewing the cars’ routes. 2.4. Status of application of GPS technology in the management of taxi in Vietnam Worldwide, GPS devices have been widely applied in many fields, especially for the transportation sector; However, in Vietnam, location-based services are just beginning to be exploited with some simple applications and currently on the market domestic taxi, have yet to be a business application of GPS technology in the management and operating. GPS applications is essential for the transport activity. To develop the public transport system, the State should have focused investment for this solutions, so effective achieves tremendous will to the development of the economy. If the private sector to participate in the application will be difficult and slow because investment costs for large operating systems 2.5. Conclusion about necessary of this investment As above, we have analyzed the demand use taxi of Vietnamese is increasing and there is an opportunity for the development of Vinataxi,well as other taxi firms in the country. However, during operation, almost all taxi firms appear shortcomings as well as difficulties in management and administration. Realizing the benefits that GPS technology brings, Vinataxi the proposed decision ComfortDelGro Group (Singapore) invests positioning system into the management and administration in Vinataxi. GPS technology helps Vinataxi: + Reduce personnel costs + Support for professional management + Anti-revenue losses + Support Executive +Raising customer service + Raising awareness of driving. Vinataxi Page 7 [...]...Investment GPS System in Vinataxi In Short, if invested now, Vinataxi will be the first taxi firms in Vietnam applies GPS technology into management and this will be competitive advantage of the Vinataxi compared to competitors in the market Therefore, Vinataxi asserts that investment into positioning system is necessary and urgent in the current period Vinataxi Page 8 Investment GPS System in Vinataxi. .. & Window Server x x 8 Setting up of MDT support & Maintenance Team x x 9 Training of Drivers on the use of MDT 10 Purchase of GPRS Modem Vinataxi x x x x Page 9 x Investment GPS System in Vinataxi 11 Project Management & Agreement x x 12 Perchase of PC & Window Server for Call Center Agent x x 13 Training on Support and Maintenance of IT Infrastructure Vinataxi x Page 10 Investment GPS System in Vinataxi. .. economic development in our country, the investment GPS System to finalize management systems and improving the quality of services is a necessity to bring sustainable value to the brand Vinataxi Vinataxi Page 17 Investment GPS System in Vinataxi CHAPTER V: CONCLUSION "GPS System Investment Project" of Vietnam Taxi Company (Vinataxi) is feasible in technology, market and finance Moreover, it’s also effective... Agent 13 Training on Support and Maintenance of IT Infrastructure 4.2.2 The capital of project The total investment GPS System is 4,818,848,000 VND equivalent 372,975S$, this capital is used from interest free loans of ComfortDelGro Ltd., Co 4.3 Financial Performance 4.3.1 The benefits in investing GPS system Besides the intangible values of investing GPS system in Vinataxi, the benefits in operation... 3,377,136 402 28 6,719,811 + The benefit in saving employee’s salary Vinataxi Page 12 Investment GPS System in Vinataxi In Ho Chi Minh City, Vinataxi set up 26 areas, unless every taxi sets GPS system, there is one person to operate in each area, the basis salary is 2,800,000 VND/month/person, insurance and others are 800,000 VND/month/person  The benefit in saving employments’ salary/year = 3,300,000... 1,505,770 4.3.3 Audited Financial Statements A period of time is 8 years with WACC = 18% Net Cash Flow = Cash Inflow – Cash Outflow The Total of Benefit in investing GPS System includes (Cash Inflow): Revenue of taxis, saving cost in investing GPS System The total Expense includes: Depreciation Expense of GPS System, Depreciation Expense of 68 taxis, Operating Expense Audited Financial Statements Unit:... benefits in operation activities: + Increasing the total revenue in taxi operation Vinataxi Page 11 Investment GPS System in Vinataxi Thanks to GPS System, the service quality will increase remarkably then will build trust of customer when using Vinataxi s service, contributing to raise total revenue The number of cars is 452 units in the previous years Assumption, this will increase around 15%, the total... 4,565,955 Total Benefit The benefits of investing GPS System Saving employee’s salary in each area No of employments The average salary/person/month The benefit in saving employments’ salary/year Cutting cost of maintenance, replacement Vinataxi 2011 2012 26 4,011 1,355,77 6 26 4,212 1,423,56 4 2013 2014 26 26 4,422 4,643 1,494,74 1,569,480 3 Page 13 Investment GPS System in Vinataxi parts of cars 520 520 520... Unit: 1,000 VND Year Content CASH INFLOW Revenue Saving in employees’ salary Vinataxi 2006 0 - 2007 1 10,240,140 5,850,000 1,115,400 2008 2009 2010 2 3 4 10,412,910 10,590,809 10,774,022 5,967,000 6,086,340 6,208,067 1,171,170 1,229,729 1,291,215 Page 15 Investment GPS System in Vinataxi Saving in Maintenance,replacement parts of taxis CASH OUTFLOW GPS System Taxis Operating Expense 3,274,740 4,818,848... 691,457 1,918,592 INDEX OF PROJECT TABLE No Index 1 Total investment GPS System 2 Net Present Value NPV 3 Internal rate of return IRR (%) 4 Payback period Review Vinataxi Value 4,818,848,000 VND (372,975S$) 1,182,125,000 VND 25% 4 years Effective Page 16 Investment GPS System in Vinataxi Net Present Value: NPV = 1,182,125,000 VND > 0 Internal rate of return: IRR = 25% >> re = 18% According to analyse, . + Raising awareness of driving. Vinataxi Page 7 Investment GPS System in Vinataxi In Short, if invested now, Vinataxi will be the first taxi firms in Vietnam applies GPS technology into management. VINATAXI    REPORT INVESTMENT GPS SYSTEM IN VINATAXI Location : Ho Chi Minh City, Vietnam Proposer : Vinataxi Performer : Vinataxi Investor : ComfortDelGro (Singapore) Tp.Hồ Chí Minh. Total of Benefit in investing GPS System includes (Cash Inflow): Revenue of taxis, saving cost in investing GPS System. The total Expense includes: Depreciation Expense of GPS System, Depreciation