Luận văn xây dựng chiến lược kinh doanh công ty cổ phần địa ốc TASCO

LUẬN VĂN THẠC SĨ MBA Xây dựng chiến lược kinh doanh công ty cổ phần địa ốc TASCOTHESIS TOPIC BUILDING REAL ESTATE BUSINESS STRATEGY FOR TASCO JONT STOCK COMPANY... 1.4.2 Analyze and eva

LUẬN VĂN THẠC SĨ MBA Xây dựng chiến lược kinh doanh công ty cổ phần địa ốc TASCO

THESIS TOPIC

BUILDING REAL ESTATE BUSINESS STRATEGY FOR

TASCO JONT STOCK COMPANY

1.4.2 Analyze and evaluate external environment 8

1.4.3 Analysis and assessment Internal environmental 9

1.4.5 Analyzing strengths weaknesses of the business ( SWOT) 18

Chapter 2: ANALYSIS REAL ESTATE BUSINESS

2.1.3 History and development, Important timeline 20

2.3 External Factors environmental Matrix

2.6 Internal – External Enviroment Matrix of TASCO – IE Matrix 57

Chapter 3 : BUILDING REAL ESTATE BUSINESS STRATEGY OF TASCO JOINT STOCK COPANY

59

3.1 Oriented development 59

3.5 Chosing Real estate business Strategies for TASCO Jsc 71

3.7 Roadmap for implementation of strategies to 2020 77

LIST OF TABLES

3 Table 1-9 QSPM–Quantitative Strategic Planing matrix 19

4 Table 2-3 Statistics of the number of hotels and

accommodation Hanoi City

37

6 Table 2-5 External Factors Environmental Matrix of

TASCO

43

7 Table 2-6 Total of the opportunities and Threats affecting the

business activities of TASCO:

44

8 Table 2-7 Balance sheet of TASCO Joint stock Company 46

10 Table 2-9 Expenditure analysis of Financial 47

11 Table 2-12 Internal Factors environmental Matrix of TASCO

– IFE Matrix

56

12 Table 2-13 General strengths and weaknesses of TASCO 57

14 Table 3-1 Housing demand Prediction in the city, 2010-2025 63

15 Table 3-2 Demand for offices in Hanoi, 2010-2025 64

16 Table 3-3 Forecast demand for hotels in Hanoi, 2010-2025 65

17 Table 3-4 Prediction demand for the number of hotel rooms 66

18 Table 3-5 Synthesis of SWOT Matrix elements 67

19 Table 3-6 Scoring criteria of the Real estate business

Strategy

71

LIST OF FIGURES, GRAPHS

1 Figure 1-1 Model of strategic management comprehensive DAVID F 7

2 Figure 1-2 Models of competitive work force by Michael Porter 11

3 Figure 1-4 The process of building EFE Matrix 14

4 Figure 1-6 Map Process of building a matrix IFE 16

7 Figure 2-1 Value of GDP of Hanoi through the years 23

8 Figure 2-2 Economic structure of Hanoi in 2008 24

10 Figure 2-11 Drawings overall perspective Xuan Phuong New Urban 55

11 Figure 3-7 Models identified Values of the development in TASCO 72

12 Figure 3-8 Roadmap for implementation of strategies from 2009 to

2020 of TASCO

78

INTRODUCTION

1 The necessity of research Topics:

Vietnam joined the World Trade Organization (WTO), the trend of globalization astoday, the business is facing great opportunities to build and develop to a new leveland also for with the big potential threaten To survive and develope, businessesneed to build for themselves the direction and strategies of business on the basis ofrelevant research, analysis, business environment and the external environmentwithin their own to take advantage of opportunities, minimize risks from thebusiness environment, as well as promoting the strengths and limited weaknesses ofcompanies

Derived from practice that the building business strategy is very necessary for everybusiness It helps business-oriented, clear business objectives, user parts andindividuals to overall business objectives, prevent the local, distributed resourceswill weaken the business Today's business environment is rapidly changing,competitive global business always requires active and creative to adapt to thechange

Real estate business is a very particular, require special conditions such as strongfinancial resources, ability to mobilize capital, relationships with agenciesspecialized management functions, orientation as well as long-term vision ofbusiness leaders Real estate business is cycle activities, so the risk is great, butcomes with big risk is very attractive profit so business is increasingly attractingbusinesses to participate

Vietnam in general and The capital Hanoi in particular are on the rise rapidly, thedemand of the product properties such as houses, office buildings, commercialcenters, hotels very large, this is also the opportunity and challenge for the Realestate enterprises

3 Object and scope of research:

TASCO Joint stock Company is a company that has business on real estateestablished and operated mainly in Hanoi Capital Therefore content to go furtherresearch, The authors would focus on analyzing the business environment byTASCO is primarily the business environment in Hanoi Capital to build real estatebusiness strategic of the Company from now to year 2020

Due to limited time and duration of study, although the field of business activityaround Tasco very diverse skilled construction and installation is only the authors ofselected real estate business and limited geographical analysis is in the capitalHanoi This is a market-oriented of the father company when TASCO completeactivities in the model company This market is dynamic, challenging but full ofpotential

4 Research Methodology:

Research methods: the information gathered from books, newspapers, magazines,the statistics of Ha noi Statistics Department, information and statistics from theconsulting firm of real estate business Internal sources of information are thebalance sheet, reporting the results of production and business operations, financialreporting in 2007, 2008 – The time to December, 2009

Also Authors also uses analytical methods integrated, comparative approach,methods experts to analyze the situation of production and business operations ofCompany

5 Layout thesis: Thesis is structured as follows:

Introduction.

Chapter 1: Basic Theory of strategic

Chapter 2: Analyzing The real estate business environment of the TASCO joint

stock Company

Chapter 3: Building and Selection Real estate business Strategy of TASCO joint

stock Company

Conclusion.

CHAPTER 1 BASIS THEORY OF STRATEGY

1.1 Concept of Strategy:

Strategy is a general program of action to achieve specific objectives Speaking to astrategic organization that people often think it must be held to determine theobjectives to reach what, how and how to make sure that the resources for it

Afred Chandler definition: Strategy encompasses assign the basic long-term goals

of an organization, and selection process or how to act and allocate resources necessary to implement the goals

According FERD R, David in the "Treatise on management strategy”: The strategy

is the means of the long-term goals Business strategy may include the development

of geographical diversification of activities, chemical property, productdevelopment, market access, cut spending, liquidation and joint ventures

Strategy is also understood as a set of goals and policies as well as plans to achievethe main goal, it shows that business going to make what business and enterprise orwill be subject to any business

1.2.Role of strategy:

1.2.1.Planning: Business strategy to help companies find clear purpose and

direction to his It's just the administrator must consider and that is determine thedirection of organizing to do and always will achieve desired results

1.2.2.Forecasting: In a constantly fluctuating environment, the opportunities and

risks always appear Process of strategic planning helps managers to analyze theenvironment and make predictions to identify strategies accordingly Wherebyadministrators are better able to grasp opportunities, take advantage of opportunitiesand reduce risks related to the environment

1.2.3.Controlling: Strategic helps administrators to use and allocation of resources

is optimal as well as to coordinate effectively function within the organization toachieve a common goal threads out

1.3.Types of Strategy

1.3.1 By The level of strategic management

Based on level of management strategies that strategy is divided into three groupsbelow:

1.3.1.1 Strategies for companies:

Strategy for the company and outlined clearly defined purpose and objectives of thecompany, identifying the business that the company pursue, create policies andplans to achieve the basic objectives of companies, distribution of resources amongbusiness activities Strategy applies to the entire enterprise

1.3.1.2.The level business strategy :

Strategic level business planning is to determine the selection of specific products

or as the market for private business activities within the company Level businessstrategy, one must determine how each business unit must be completed tocontribute to accomplishing the goal for the company

1.3.1.3 Functionality strategy:

Strategy for functional people focus on supporting the company strategy and focus

on areas of industrial cooperation, the business sector

1.3.2 Dividing strategies by functions

Pursuant to the strategic functions that can be divided into the following groups:

1.3.2.3.Strategies to expand operations :

The strategic expansion activities include strategies to diversify the activities center,diversify activities and horizontally diversified operations activities mixed

- Diversify the activities center: bring to market existing products or new servicesrelated to existing products

- Diversify the horizontal activities: put on the market for existing customer groupspresent products or new services, not related to the products are

- Diversifying operations mixture: put on the market in existing products or newservices, not related to the products are

1.3.2.4.Other strategies:

In addition to the above strategy, the reality is there are some other strategies thatbusinesses can apply as a joint venture strategy, refine operations, quit operation,liquidation, etc

- Strategy venture: when one or more businesses link together to pursue a certaingoal

- Strategy to narrow it works: when enterprises need to restructure, ttu carried out anumber of products or fields of activity to save Left position of the business

- Strategy for liquidation: is the sale of assets to the enterprise Business acceptdefeat and try to rescue picked up what they can

1.4 Building strategies recuitment:

Strategic management process described by The model summarized below:

Implement controls to identify external opportunities and threats directly

Establish long-term goals

Set annual goals

Review business objectives

Building Implementation Rank

strategic strategic strategic

Figure 1-1: Model of strategic management comprehensive DAVID F.

1.4.1 Mission and objectives of the enterprise

Mission is a statement with the nature of long-term goals It distinguishes thisbusiness with other enterprises The declaration also so-called speech of a business

to business philosophy, principles of business, the trust company All of whichdetermine the region's business enterprises, in particular products, basic services,the fundamental group of customers, market demand, technical field or acombination of domains this area Mission contains a general wish to declare thearea outside the company as a public image that businesses wish

The company's mission should be deployed and sketches into specific target.Objective is defined as the achievements and results that administrators want toachieve in the future for your organization

1.4.2 Analyze and evaluate external environment

External environmental analysis focused on identifying and assessing trends withevents beyond the control of the company, such as growth of national economy, thecompetition abroad, explosion of information technology will see the opportunity

Implement internal controls to find the strengths, weaknesses strategies to Selection

pursue policies Forth

and the risk that an important experience to the organization managers can draftstrategy to take advantage of the opportunities and avoid or degrading imageseffects of such threats External environment including the macro environment andmicro environment.

b/Legal and political factors

Factors law and political influence to the growing activities of the enterprise.Factors, including legal institutions, policies, regulations, institutions, laws,treatment regimes, procedures, regulations, the State In some countries also have

to mention the level of political stability or sustainability of the government Lawsand state agencies along with pressure groups have roles to regulate the business

c/Social factors

All enterprises must analyze a wide range of social factors to assign opportunities,potential threats These factors include social factors such as women, demographicpressures, lifestyle, ethics, traditions, practices, rates of population growth,population shift, level of position etc Changes in geographic, demographic,cultural and social influences important to almost all decisions about products,services, markets and consumers

d/Natural elements

These businesses have long recognized the impact of natural circumstances in theirbusiness decisions Analysis of natural elements including the consideration toissues of environmental pollution, energy increasingly scarce natural resources,

mineral exploitation and indiscriminate quality natural environment risk ofdegradation, etc In addition, administrators must be aware of cases of forcemajeure such as natural disasters, storms, floods and painting services to reservethe countermeasures in the process of production activities their business.

e/Technology and technical factors

For businesses, technologies or other factors related to technology such as R & D,copyright and technology, automation trends, technology transfer, can be both anoppotinities, just the threat that they must be properly considered in drafting thestrategy Due to rapid technological change also means shorten the life cycle or lifecycle of products is required New technologies also bring the process of newtechnologies to help reduce costs significantly in product price Technical progresscan create new competitive advantages, strong advantages over the existing

f/International factors

Trend of globalization, economic integration and liberalization of international trade

is the prominent problems of the world economy today The rules and regulationsagreed by the members of the general European Community, World Bank, WorldTrade Organization (WTO) agreements free trade area and the world, theconference , economic summit has contributed to the interdependence betweencountries around the world and the global market generally appears, setinternational standards on product quality and standards on environmental pollution,the antitrust laws, anti-dumping The strategist must take advantage of theadvantages that the trend of globalization and international economic integrationoffers, and restrict the risks from the international environment, there is a fiercecompetition of foreign rivals, with products at competitive prices and better quality

1.4.2.2 Micro environment:

This is a working business environment of the company Michael Porter (theHarvard School of Business Administration) has launched five models of workforce formed the context of competition in the business as follows:

Potential Competitors

COMPETITORS

Industry competition

Buyers

Figure 1-2: Models of competitive work force by Michael Porter

a/Potential competitors

Potential competitors include companies involved in new sectors, thecompetitiveness of their current weak, but still has potential and competitiveness inthe future Potential competitors may reduce the profitability of their businesses due

to the exploitation of new production capacity, with the desire to win market shareand resources needed Therefore, when formulating strategies administrators shouldconsider the risk due to join the rival branches of the new potential

b/ Present competitors

The second force in the competitive in the model of Michael Porter are competitorsalready have solid gold position on the market in the same business The higherlevel of competition, price competition as reduce drag by reducing profits There arethree important factors constitute the level of competition among companiesoperating in the same business, that is: Structure competition; Situation-marketdemand; The barrier out of the business sector Important part of controlling theexternal factors is to identify all the competitors and identify the advantages,weaknesses, capabilities, oppotinities, threats, objectives and strategies of them

c/ Customers

The third force in in the model of Michael Porter is the ability to bargain forcustomers Often, Customers request or require off-quality goods to better comewith excellent services This makes the operating costs increase the risk of creatingprice competition

d/ Suppliers

The fouth is the ability of suppliers to bargain Suppliers not only supply materials,equipment and labor but also the consulting firm, providing services advertising,shipping generally provide the inputs of the process of production and business

To avoid the pressure of bargain or supplier company should build relationshipsmutual benefit or Backup supply various

e/Substitutes

Work force in the five competitive forces in the model of Michael Porter is the

competitiveness of these products instead Substitute products are the products ofcompetitors in the same industry or business sector can function together to meetthe same demands of customers To minimize the importance of pressure this risk,companies need to consider very carefully the price trends and forecasting ofproduct replacement in the future.

Besides the five competitive forces in the model of Michael Porter over , in theprocess of analyzing micro-environment, enterprises also must be very interested in

a number of other factors such as distributors stock east, community, laborfederations, to identify opportunities and risks to business operations of thecompany

1.4.2.3 External Factors Environment Matrix(EFE):

Table 1-3: Model building EFE Matrix The factors The importance Classification Marks

1= Small side business

2 = Medium enterprises reaction

3 = Business reaction onaverage

4 = good business response

(4)=(2)x(3)

EFE matrix for the strategic management summary and evaluation of economicinformation, social, cultural, demographic, geographic, political, legal, technologyand competitiveness by distribution etc importance and types of points from 0,0

to 1,0 for each factor Since then, the strategic management can recognizeopportunities and threats from external impact to the company

Figure 1-4: The process of building EFE Matrix

Indexing of

external

factors

Determinetheimportance

of the factor

Sortelementsfrom 1 to 4

Gradedelements

Points ofthe abovecategories

1.4.2.4 Competition Matrix:

In all events and environmental trends can affect the strategic position of acompany, affects competition is often considered the most important CompetitionMatrix dentify primarily with the competitive advantages and disadvantages of theirspecial While the choice, choose the companies have similar characteristics to theelements (markets, human resources, finance ) to conduct a comparison to drawconclusions about the strengths and weaknesses of your business in a competitiveenvironment

1.4.3 Analysis and assessment Internal environment

analysis Internal Environmental of the company is identification and evaluation ofstrengths and weaknesses in relation to strategies for the division in the company,including management, marketing, finance, accounting, manufacturing, humanresources, research and development (R & D), and information systems Buildingstrategies to improve the weaknesses of the company, turning it into strengths, and

if they can become special ability of the company

1.4.3.1 Human resources:

Human resouces is the most important resources of an organization Humanresource management can understand, including an overview of the work ofrecruitment, placement, training and the personnel

The objective of the strategic management of human resources is to develop apersonnel plan in accordance with the requirements of the company's strategy, bothshort and long term

1.4.3.2.Finance:

Financial conditions are often seen as methods of assessment and competitivepositioning of the company's best and most attractive conditions for investors Toform effective strategies to identify strengths and weaknesses of the financialorganization.Financial factors often alter existing strategies and implementationplans The functions of finance including: The ability to mobilize capital; riskmanagement financial ability profitable

1.4.3.3 Management Activies:

Management activities has five basic functions as the following:

a/ Planing: All activities related to the administration to prepare for the future The

specific tasks as expected, set goals, set out strategies, develop policies, formation

of goals

b/ Orgnization: All the activities of management to create the structure of the

relationship between rights and responsibilities The specific job is to designorganizations and specialized work, detailing the work, agreed order, coordinationarrangements, job design and analysis work

c/ Encouragement: Efforts to orient human activities, particularly leadership, joint

working groups, change how it works, authorized, improving the quality of work,organizational change, spirit of vienva management

d/ Human resources: Activities focusing on human resource management or

individual management of human resources including recruitment, payrollmanagement, employee welfare and safety for employees, the opportunity to workwith , relations with labor federation, discipline policies and procedures for protests,the mass media

e/ Control: Related to all management activities to ensure the results match reality,

consistent with the results was planned, as kiemtra quality, financial control, sales,inventory , analysis of changes,

1.4.3.4 Internal Factors environment Matrix (IFE):

Table 1-5: Model building IFE Matrix

1=Most important Weaknesses2=Weaknesses

Strong3,00 to 4,00

Medium2,00 to 2,99

Weak1,00 to 1,99High

Figure 1-6 Map Process of building a matrix IFE

1.4.4 Matrix Internal - External (Matrix IE)

Matrix Synthesis of external factors, the internal factors is based on two mainaspects:

• Total number of important elements of the IFE matrix

• Total number of important points of the EFE matrix

IE Matrix set parts of a business in a box of 9 as shown:

THE POINT OF IFE MATRIX

THE POINT

OF EFE

MATRIX

Figure 1 – 7: Model of IE Matrix

Components of the IE matrix includes 3 parts:

Development and construction (the yellow box - the box I, II, IV): the appropriate

strategy is to focus growth (market penetration, market development, productdevelopment),

Hold and maintain (the blue box - the box III, V, VII): the appropriate strategy formarket penetration and product development

Harvesting and remove (the red box - box VI, VIII, IX): cuts, liquidation or removeparts down inefficient operations

1.4.5 Analyzing the business environment (Strengths; Weaknesses; Opportunities; Threats - SWOT):

Opportunities (O) Threats (T)

Strengths

(S)

S+O

Use strengths totake advantage

Overcome weaknesses in order

to reduce risk

Figure 1 –8: Model SWOT Matrix

Matrix Strengths - Weaknesses, Opportunity - Threat is a critical tool combinationcan help the development of management strategies follows:

SO Strategies use strengths within the organization to take advantage of

opportunities outside.WO Strategies to improve weaknesses by taking advantage

of the opportunities outside ST Strategies use the strengths of the organization toavoid or to reduce the impact of the threats from outside

WT Strategies are defensive strategies to reduce the weaknesses and avoid threats

from the outside environment Combination of important elements inside andoutside the difficult task of developing a SWOT Matrix, it requires a well judged,and will not be a best match

Process of building strategy is a process that involves analysis of environmental

factors inside and outside the enterprise on the basis of mission and businessobjectives are set out of the business to prepare and select appropriate strategies Tobuild strategies to evaluate enterprises implement these measures properly or not,and the current activities of the business can be done more efficiently or not.Assessment often strategies will help the administration strategically avoid thecomplacency, subjective Objectives and strategies need to pay constant attention,development and combined so that complete the mission of the enterprise with themost effective.

1.5 Selection strategy:

1.5.1 Selection criteria:

To choose strategies for businesses that have identified the criteria chosen strategy

to ensure the requirements Strategically selected to ensure suitable environmentalconditions; Compliance with foreign policy viewpoints and methods ofmanagement of Directors of the company; Compliance with the financial capacitymaterial and personnel of the enterprise

1.5.2.Method of selection strategies

Using strategic planning matrix can be quantified (QSPM–Quantitative StrategicPlaning Matrix)

Table 1-9 : QSPM–Quantitative Strategic Planing Matrix

FACTORS Pproportion Strategic 1 Strategic 2The strategies Marks

JOINT STOCK COMPANY 2.1 Introduction

2.1.1 TASCO Joint Stock Company

Company Name: TASCO JOINT STOCK COMPANY (TASCO Jsc.,)

Address office: 3rd Floor, B15 Dai Kim Urban , Hoang Mai District , Hanoi city ,

Vietnam; Capital: 135 billions VND (One hundred thirty five billions VND)

2.1.2 Business Activities

Civil construction, industrial, transportation, irrigation; technical infrastructure;Leveling; Business development of the housing business and real estate or rentaloffices, housing, factories; Construction supervision of civil, industrial,transportation, irrigation;

Service testing of construction materials, testing quality control types ofconstruction works; Tourism services, restaurants, eating; Collection services andwaste treatment, production of the waste products; Construction of power projects(thermal power, hydro) electricity production; resellers electricity

2.1.3 History and development, Important timeline

Formerly the state-owned enterprises, was established in 1971 as first name HaNam Bridges have activities in the field of transportation infrastructureconstruction

November, 2000: Mark a major turning point in the evolution of the company Thecompany has conducted equitization, transfer from state-owned enterprises operateaccording to the Joint stock company , Decision No 2616/2000/QD-UB on 20thNovember, 2000 of People's Committee Nam Dinh of Province and named NamDinh Construction Transportation and Infrastructure Joint stock company

In 2002, the company changed its name to Thanh Cong Transportation andInfrastructure Joint stock company by decision of the Chairman

In 2003, the company has merged and become affiliated companies of theInvestment Corporation Housing and Urban Development (HUD), the Ministry ofConstruction

On 15th, December, 2003 changed its name to Thanh Cong Joint Stock Company

by Decision No 559/2003/QD-HDQT of Chairman

In 2005, to promote the strength, as well as continue to assert the prestige andexperience have grown since the project was completed, the company has officiallybecome the system of "parent company - subsidiary company" with two branches inNam Dinh, Ho Chi Minh City, 6 subsidiaries including Phuong Tay JSC, ThanhCong JSC Number 1,2,3,5, Tasco Tourism Joint Stock Company and 20 teams ofresponsibility directly at the fiels

Period from 2006 to present: marked leap forward in all areas of the company'schartered capital from 16.8 billion VND increased 55 billion VND , operations inthe model of parent company - subsidiary company, the strategy of sustainabledevelopment, stable production construction, continue to promote the strength andmaintain leading position in South Red River, specialized in construction andinstallation, especially construction technologies bridge; Contact list with partnersmust have capacity to execute the requirements of great value, high technology,from a building contractor company rose to the investor with many large projects

On 26th, December, 2007: Company renamed Tasco Joint Stock Company by the

Ha Noi Business Registration Office of Hanoi City and move office to the address:3rd floor, building Resco B15, Dai Kim New Urban Area, Dai Kim Ward, HoangMai Distric , Ha Noi city On 11th April, 2008, 5.5 million shares of the companywas officially traded on the Stock Exchange Hanoi HaSTC center with code HUT,affirmed the position of Tasco in the process of economic integration in the world

On 24th, June, 2008 Contract BOT project "Improving and upgrading Nation Roadnumber 10 - Clips from La Uyen Bridge to Tan De Bridge, Thai Binh Province c"with Department of Vietnamese Road, with total investment of 311 billion VNDand get Tan De Bridge to gather fee to return capital of the project;

On 10th, July, 2008 Contract BOT project "The line from Nam Dinh to avoidNational Road number 10 to My Loc " with the People's Committee of Nam Dinh

province, with total investment of 313 billion VND and get My Loc Bridge togather fee to return capital of the project;

On 12th, May, 2008 Contrac BT project "Building the route from Le Duc ThoRoad to new urban Xuan Phuong - Tu Liem District - Hanoi City" with Tu LiemDistrict, with a total investment of 1543 billion VND and the value from the landuse right of the "Unit 2, 3 areas " of Xuan Phuong New Urban projects and otherland to return to the project;

2.2 External environment analysis

Scope of operation of the real state business of TASCO is mainly in the city ofHanoi and for research and analysis is going into the issue, the authors would befocused analysis of the external environment of TASCO mainly in Hanoi city

Analyzing external environmental of TASCO will see the opportunities and threatthat the company may encounter from the business environment Since thatappropriate strategies to limit threat and make the most of opportunities for thedevelopment of the company External environment including the macroenvironment and micro environment

2.2.1 Macro environment

2.2.1.1 Economic environment:

a/ Total domestic income (GDP) of Hanoi

Report of City People's Committee of the 7th Session of Council, that the totaldomestic product in the capital six months increased by 10.04% GDP increased byhigh-speed total social investment reached 10,115 billion (up 16.3% over the sameperiod last year) In particular, specific value construction is made from the capitalbudget increased 90.8%, reaching record levels in many years

Accordingly, Hanoi is expected May 9, 2009, total domestic product (GDP) grew5.7%, industrial production value increased by 7.7%, total retail sales increased18.1% turnover exporters in the province decreased 11.2%, total social investmentcapital increased 19.1%

Total revenue budget in the area nine months in 2009 expected to reach 55,855

billion full-year forecast by 79.2%, including domestic revenue (excluding crudeoil) is 48,983 billion full-year forecast by 85.8%.

Total local budget in 2009 was nine months by 55.4% 15,298 billion in globalproject in which more often is 8057 billion by 66.7% year estimate, moreconstruction is 6500 billion in 47.5% full-year forecast

Figure 2-1: Value of GDP of Hanoi through the years.

Source: Statistical yearbook of Hanoi in 2008

b/ Economic structure of Hanoi:

2009, Hanoi's GDP rose by 5.7%, mobilizing social capital to reach 84,700 billion,

up 19.1% over the same period 9 months of budget revenues to reach 55,850 billionVND, 79.2% The city has also made additional capital investment target stimulusphase 1 is 3800 billion and is considering the first two delivered about 3000 billion.Some targets are reduced exports (down 11.2% over the same period last year),agro-forestry fishery products (down 3.1%)

One of the limitations were pointed out as the capital of economic growth but acomparison with provinces in the country, but still reveal the lack of sustainabilityfactors, lack of breakthrough Attracting foreign investment, mobilizing capital inthe country has not matched the potential advantages Economic structure of Hanoiafter merger poses many problems need to be adjusted to suit reality Besides doquyplanning, urban management is limited, inadequate, infrastructure Capital not matchthe requirements of development and increasing population Status of illegal

construction and order urban land management is still complicated development,especially with the new local merger of Capital; traffic jams still status,environmental sanitation has ensure.

Argiculture + Forest 6,5%

Industry + Construction 41,3%

Services 52,2%

Figure 2-2: Economic structure of Hanoi in 2008

Source: Statistical yearbook of Hanoi in 2008

c/ Average income per capita:

With the spectacular growth in the second half, the GDP of the capital increase toapproximately 6.7% and income per capita in 2009 reached 32 million In thesecond quarter last year, the GDP of the capital in turn increase 8.3% and 9%.Dramatic increase in the context of economic crisis contributed to the total domesticproduct of Hanoi estimated to grow 6.7% over 2008 and 6% higher than expected.Respectively, the average income of people capital reached 32 million dong (VND

30 million plan)

In 2010, Hanoi expected GDP to reach 90-10% or higher, bringing per capitaincome exceeding 36 million Expected, GDP per capita of the city late in 2015 willreach 72-75 million, ie more than double the 2010 level (35.56 million)

Ha Noi Department of Statistics has said that the average income a month working

in a sector of the city state management is 2.107 million, up 21.2% over the sameperiod by the State to change the basic salary

d/ Bank Interest:

If consumer prices in 2003 increased 12.3%, 2004 increased 9.5%, the 2005consumer prices increased 8.2%, this rate is lower than the previous year has just tộlower rate of economic growth Achieving this result, mainly due to State fiscal

policies monetary caution, flexibility, as in 2005

State enforcement has tightened monetary policy, fighting inflation by adjustinginterest rates increase (about 9% per year) but not to affect too heavy to economicgrowth The government has tried conditioner macroeconomic and market pricesthrough regulating the supply and demand of essential goods, price controls arefound exclusively business or share control with the book "to accept higher inflation

to growth, growth rate reached the highest in 8:43% within 9 years However,consumer prices surpassed inflation target control of Congress at 6.5%

Although the situation of currency and credit in the first quarter of 2008 there aresome evolutions are not favorable, but the market has tended to stabilize The creditinstitutions have basically overcome the imbalance status of capital availabletemporarily, have reserve funds for credit to buy votes and forced the State Bank.The lending interest rate was controlled at reasonable interest rates on the interbankmarket popularity 8% -10% from a year; VND mobilization interest rates of creditinstitutions, common at 1% / month interest rates for short-term loan of about USD11% -13% per year, interest rates for medium and long term lending VND at 14% -16% per year; mobilization rate is adjusted up from USD 0.11 % -1.29% per year(current interest rates to mobilize the highest-level U.S 6.15% per year), at U.S.lending rate fluctuations

Vietnam economy in general, especially

Hanoi is on high growth

Situation of high inflation, financialmarket currencies, banks have manychanges, causing difficulties in raisingcapital

Income and living standards of people

by increasing high-drag the demand for

housing, luxury apartments, shopping

needs in a modern commercial center,

luxury increased rapidly

The diverse segments of the marketmaking business difficult to determinethe target market and business-oriented

2.2.1.2 Political and law environment:

a/ Law:

The trend of integration and to meet the requirements of joining the World TradeOrganization (WTO), the National Assembly of Vietnam has approved a series ofimportant laws to further improve business environment , attracting the Tuva inaccordance with international commitments such as Investment Law, Bidding Law,Intellectual Property Law, the Law amending and supplementing some articles ofLaw on VAT and Special Consumption Tax Law, Law transfer tools, e-transactionslaw and the law have close relationships with the business environment such asanti-corruption Law, Law on Environmental Protection, Law on thrift and combat

Real estate market is a market of special goods and property of great value andinfluence to direct economic life - society In recent years, the real estate market inour country, especially the housing market has developed significantly, contributingsignificantly to promoting economic - society of the country Continuous series oflaws related to business property is issued such as the Land Law, Construction Law,Housing Law, the Law on business property, as well as many decrees and circularguide, written by the Government, the Ministry of Construction and issued togradually concretized and guide businesses business property Most importantly, thebusiness of real estate law by the National Assembly on September 26, 2006 andeffective from January 1, 2007 This Law on business property; rights andobligations of organizations and individuals trading in real estate; prohibited actsand handle violations in the business of real estate Real Estate Business Law shallspecify the business, building projects such as clearly defined rights and obligations

of the investment projects, new urban areas, the housing projects, lower projecttechnical industrial zone; regulations on purchase, lease, lease purchase homeconstruction projects

Besides the positive aspects, operation and management of real estate market in ourcountry have revealed several shortcomings such as real estate markets also developspontaneously, lack of healthy, dealing "underground" still occupied largeproportion; the status of the land, a virtual stimulus to increase property prices as

the market for hot, cold "erratic Legal system in general and real estate businessreal estate but has particular but scattered, incomplete and not consistent, not meetactual needs Mechanisms and management policies on business property is unclear,not strong enough.

b/ Political:

Today,Vietnam was selected as the safest investment in Asia, and is one of thecountry with political stability in the world Conditions favorable politicalenvironment of the law to provide opportunities for the company, which is to createthe business environment open and fair competition, equality between businessesand investors bravely head from production and business in Vietnam

Vietnam is a country with the political

situation is stable, creating favorable

conditions to attract investment capital

A number of policy transactions,

ownership of real estate improved to

make the real estate market healthier

Policies, legal and not uniform,particularly in the constructionmanagement as well as legal documents

on land still many inadequacies, overlapmake it difficult for enterprises whenimplementing project

2.2.1.3 Population and workers Environment:

After the expansion of administrative boundaries in August 2008, Hanoi now has anarea of 3324.92 km ², including a town, 10 districts and 18 suburban districts With

Ho Chi Minh, Hanoi is one of the two economic centers of both countries Hanoi is

a center of culture and education with theaters, museums, traditional villages, to themedia at national level and major universities

The population increased so fast the process of urbanization is not good planninghas led Hanoi to become a cramped cities, pollution and traffic congestion innerregular Many architectural heritage of the city are gradually disappearing, replaced

by the house is messy pipes across the city Hanoi is a city of uneven developmentwith many suburban areas and backward, where people still have the essential livingconditions

Hanoi is one of the local receive direct investment from abroad the most, to 1681.2million USD and 290 projects The city is also the location of the 1600 foreignrepresentative offices, 14 industrial parks with 1.6 ten thousand industrialproduction facilities But coupled with economic development, the industrial parksare making Hanoi faced the problem of environmental pollution Besides the state-owned companies, private enterprises also play an important role in the economyHanoi 2003, with nearly 300,000 employees, and private enterprises contributed77% of industrial production of the city In addition, 15,500 households industrialproduction and attracted nearly 500,000 employees In total, the private enterprisescontributed 22% of the total social investment, more than 20% of GDP, 22% of thecity budget and 10% of export turnover of Hanoi.

After expanding the administrative boundaries, with more than 6 million people,Hanoi has 3.2 million people in working age However, the city still lacks a workingprofessional level high Many graduates still need training, structure and quality oflabor demand has shifted the economic structure Hanoi must confront many otherproblems Competitiveness of many products and services as well as attractiveinvestment environment of the city's low The shifting economic structure is stillslow, especially the structure of domestic industry, services and products powerkey Quality development planning of economic sectors in Hanoi is not high and thecity has yet to mobilize a good economic potential in the population

2.2.1.4 Cultural and social Environment:

Thang Long - Hanoi has recorded outstanding features are excellent lifestyle:elegant summarize the past thousands of years history of traditional beautyElegance of Hanoi cover a nice lifestyle, a lifestyle beauty from outside the family

to society; from accommodation to the behavior of people - who, well up in the esteem and respect for people others to respect you

self-Elegance of Hanoi not only speaking, but more important is said to go in line with,with action Hanoi people are always aware of the high work well, do good deeds,done for relatives, for the community

With Ha Noi people, about three quarters of immigrants in the past 3.4 decades,from the village's many different provinces, Hanoi expansion, will have up to88.3% of the area and over 62, 5% of the population live in rural areas Each familyHanoi always put a foot in the rural countryside Perhaps the characteristics of each

of us are still farmers together in an urban area Or as a review of the English artistBarnaby: "Compared to a village, the city has many advantages in material, but alsothe weaknesses of it, the interaction between people, between individual and thecommunity to reduce travel

Combined with clarifying the qualities depcon has some shortcomings in thecharacter and lifestyle of Hanoi Hanoi is a topic that is too high academic level,scholars heavy on theory, making the school to apply in practice ignored; the Hanoicarefully, sure, into the cautiously, missing the guess, slower innovation,breakthroughs do not dare eat large; The confidential, preserve, to guest flute, lack

of sincere, frank, and lacks a certain extent, there is often manifested as individualprovinces Too humble, artist of the area did not dare look straight into acceptingthe truth, if preferred achievement than if defects

Waves of people migrating from rural to urban living more and more, big cities likeHanoi is no other way to develop new residential areas, the urban-style househusband house , anti-tank floor to solve this problem Buildings condominiumsappear more and dream of those immigrants, especially young families

Cultural environment, lifestyle changes

result in big demand for housing,

especially apartments increased Nhhu

goods for real estate diversification and

create opportunities for business

enterprises while actively studying out in

the market

The diversity in the cultural environmentwill create a lifestyle complex to meetthe diverse needs for specific fishdifferent cultures Enterprises will facedifficulties in the work of publicrelations, image building and customerrelations

2.2.1.5 Technologies Environment:

With the trend of international economic integration and technology transfer

between countries in the world, Vietnam has to enlist the opportunity to acquire andapply new technologies to construct building projects, shorten construction time,increase quality, as well as off the building Series of new building technologieshave been applied in Vietnam such as the method of top-down construction to helpreduce construction time; the methods of construction basement, fin walls, pilefoundations, concrete technology order beams; technology against rusted steel,technology building down the floor faster without reinforced phase, reducingconstruction time, increase the ability to bear load; technology used to build the 3Dwall panels, flooring, ceiling, stairs to save time of construction, technologyelevator up two floors to help mass transportation; Just as the application ofinformation technology in the operating management of construction, design,operation, maintenance , warranty help reduce costs, reduce the number ofemployees,

Along with economic development, foreign capital investment in increasing theproportion of investment we should have changed the perception of quality works.This agent is active in improving the management and construction expertise of ourcountry, contributing to integration with other countries in the region

Application of new technologies in

construction, project management,

shorten construction time, reduce costs

Competitiveness among enterprisesincreases, the demand for equipment towork up high, pressure to improvetechnology

2.2.1.6 Situation of Economic integration in Ha Noi Capital:

Pricewaterhouse Coopers LLP (PwC) predicted, Hanoi (Hanoi) and Ho Chi MinhCity in the "top" with GDP growth on average highest in the world 2008 - 2025.This is the result of the PWC study with 151 cities and municipalities around theworld, which, with Hanoi and Ho Chi Minh City in Vietnam

Hanoi and Ho Chi Minh City but not in the Top 30 but also two of the names mostnotably, the Ho Chi Minh City will "jump" from position 95 to position 64 also rose

to Hanoi from 82 locations 116 things in 2008

In terms of economic growth as GDP growth forecast from 2008 to 2025, Hanoi andHCM City leader and 2nd in the list of 30 cities with an average GDP growth of 7%

in the period hey Expected, the city's largest emerging markets, which, with Hanoiand HCM City to develop faster (about 6-7% per year) compared to the cities of thecountry's economy development (about 2%)

a/Foreign direct investment (FDI)

Hanoi ranked second in the national (later Ho Chi Minh City) to attract quality FDI

in Vietnam, followed by Binh Duong, Dong Nai, Ba Ria - Vung Tau FDI mainlyfocuses on the industry, real estate, construction and trade - service

Wave of foreign direct investment increased sharply in recent times drag on officedemand, as well as land for factories rise

b/ Capital Development (ODA)

Vietnam is one of the country received large ODA in recent years Total funding inthe period 1993 - 2004 is about 4.2 billion dollars

First six months of 2006, the Ministry of Planning and Investment, ODA disbursedabout 720 million USD, accounting for 41% of annual plan Of these, 618 millionfrom concessional loans and 102 million which remains is non-refundable Fundingsources mainly from three main sponsors of the World Bank (WB), AsianDevelopment Bank (ADB) and Japan

c/ Tourisnm

December, 2009, international visitors and Hanoi about 76 thousand visitors, 9.6%lower than last month, down 21.4% over the same period last year Domesticvisitors to Hanoi about 530 thousand visitors, up 3.1% over last month, up 0.4%over the same period last year

Expected nine months of 2009, the total number of tourists to Hanoi is 5803thousand turns, down 2.2% over same period last year in which the client is 745thousand international passengers (down 19.8%), internal customers address is 5058thousand passengers (up 1.1%)

Sales business travel, hotels nine months decreased 2.3% over the same period.General tourism activities Hanoi nine months off over the same period last year,especially international visitors to Hanoi reduce the impact of various economicrecession and translated influenza A/H1N1, many high ranking of hotel ratedecreased to 20-30% over the same period.

Many opportunities for exposure to new

technologies as well as building level

advanced management Besides

dangerous business when making joint

venture with foreign partners

The process of international integrationcan lead to fierce competition fromcorporate real estate business in theworld is big into the Vietnam market

2.2.2 Micro environment

2.2.2.1 Real estate Market:

Real estate market can be divided into four major groups as follows: housing andapartments market, office leasing market; commercial center market; hotels market.And one of the most important characteristics of real estate market is distinct cycles

a/ Housing and apartment market

According to the company's property management Savills Vietnam, as close to lastyear, the real estate market in Hanoi as "warm" thanks to the economic recovery,but also the chemical distribution between the domains area and the area alsobecame clearer

In the past three quarter, the total supply of apartments for sale in the market fromthe primary project is more than 1,000 apartments, most of the supply of primaryfocus in the districts, Tu Liem district, Dong Da and Hai Ba Trung district.However, the number of successful transactions over the primary market are lowerthan last quarter, estimated at just over 400 apartments were sold, accounting fornearly 38% of supply over 610 primary root is sold in quater 2/2009

Since you 4/2009 to 2012, estimated to be at least more than 10,000 apartmentswere launched Of these, approximately 34% of Tu Liem district, and about 30% ofCau Giay district Specifically, the primary market in the first quarter 4/2009

expected to get more supply approximately 2000 new apartments.

However, according to Savills, you do not see there is a significant changeregarding primary bid of apartments in all grades compared to quater 3 /2009 Priceand operation of the secondary market can be affected, in part due to the application

of the personal income tax for the transaction transferring the property since lateSeptember 2009

Different market segments apartments for sale, from your 4/2008 far, the averagerent in the market segment serviced apartments down continuously In thequater3/2009, apartment rents decreased 4.8% services, corresponding to the secondquarter compared with 1.2 USD/m2/month capacity on the market rent servicedapartments down 3% to 88 %

The cause of the reduction of tax rates is likely due to increased supply of 100 newapartments, equivalent to about 4% of the increased supply of market segmentsserviced apartments in the second part, 2009 Total supply in the market servicedapartments in the third quarter increased to over 219,000 m2 of additional about 100new apartment project from Fraser Suites Hanoi at 51 Xuan Dieu Road, Tay Hodistrict was launched on the market

There are 41 buildings on seven district Hanoi offers nearly 2200 apartment market,with the kind of studio, one bedroom apartments to six bedroom apartments, andapartment roof pressure Area of the types of apartments range from 40m2 to over560m2 SMC's demand mainly from the team of foreign experts working at theEmbassy, nongovernmental organizations and international, and foreign companies

In Quarter 4 2009, Hanoi has around 10 serviced apartments remaining projects inWestern Lake Fraser Suites Hanoi given market To about 2012, the expectedadditional 7 projects serviced apartments launched more than 1,200 apartments tothe market Despite signs of economic recovery has been seen in many countriesaround the world, but can in coming time, demand for serviced apartmentscontinues to mitigate the foreign companies are still having difficulty tissue fromthe negative balance of the economic crisis has left over

b/ Office leasing market:

According to research results on office leasing in the world

2008 (Office Space Across the World 2008) by Consulting Group Real EstateCushman & Wakefield (United States) made, Vietnam is currently the 5th position

in Asia - Pacific and 17th worldwide in the table ranking of countries with ratesmost expensive office rental With the strong economic conditions and foreigninvestment does not stop growing, the demand for office rent overcoming thecurrent supply

For the office market segment, investors continue to reduce rents in the thirdquarter Rent decrease with policies to encourage other investors to help reduce therate of space, rental rates also increased in both markets A and B class offices,especially offices for rent in remote B center is much more interested customers.This is a good signal on demand, but supply is expected to increase rapidly withover 60,000 m2 area and offices for rent in the coming quarters will make the risk

of excess supply reappear

c/ Trading Center Market:

Year 2009 marked the appearance of some projects complex commercial, serviceapartments in big cities like Hanoi A complex area of commercial options are oftendivided into several areas with different lines of business such as restaurants, hotels,swimming pools, apartments for rent office, business services, advertising, revenuecurrency exchange

The operating more commercial center marked tendency to move to invest in realestate sector to diversify the business activities of many foreign investors anddomestic enterprises More investors realize the living of urban residents increasingthe fund of their time on more narrow, so consumers prefer to shop in thedowntown area - where a large goods plentiful, easy to choose the price not toodistant consumers with the ability of the people Not only so, this model hasadvantages of high concentration, many items, buyers can choose a variety of goods

in one place According to surveys of CBRE, currently only about 25% of

households shopping at the trade center But demand is increasing rapidly increased,evidence that the number of trade centers to increase the number of people shopping

in the commercial center not reduced

Renting average trade center in Hanoi is 40 USD/month/m2 and are enclosed spacefor rent Not only foreign retail groups wishing to rent commercial center, even thedomestic enterprises have also recognized the benefits and effectiveness of rent inthe commercial center to sell display advertising promote their products

Table 2-3: Statistics of the number of hotels and accommodation Hanoi City.

Content Year 2005 Year 2006 Year 2007 Year 2008

Number of hotels and

Source: Statistical yearbook of Hanoi in 2008.

With the amount of tourists to the international and domestic Hanoi increasedcontinuously in recent years, especially of international travelers require travel,resort, do business, learn market demand in the form of secondary prevention andhigh-rise continuously

In quater 3/2009, 4 star hotel Mercure La Gare Hanoi with 102 rooms has been putinto operation, bringing the total number of hotel rooms from 3-5 star standard ofthe city from 5576 to 5678 rooms Results of the business hotel industry continues

to decline due to the impact of global recession and translated influenza H1N1.Revenue per blocks of rooms for rent 5 star decline 10% over last quarter However,revenue per room 4 star hotel just blocks mitigation, almost unchanged Rent ameeting of block 4 star hotel 5% compared with last quarter.

Capacity leased office signs up slightly, reaching 54%, higher than 2% compared toquater 2/2009 Rent a meeting of regional 5-star hotels decreased 10% compared tolast quarter The room rental rate of the area reached 51% in quater 3/2009, thiscapacity is the lowest rent rooms within 4 years Market demand for hotel mitigated

by the decline of international tourists to Hanoi

Savills estimates will be about 1180 from 3-5 star hotel rooms will be put intomarket in 2010 Nearly 1,000 of these rooms are located in Cau Giay and Tu Liem.Increase supply while reducing the number of tourists making business operations

of many hotels are still difficulties in the coming time

Demand for real estate products,

especially product line of real estate in

high-Hanoi in the near future is very

high Catalog also needs a rich diversity

Business real estate cycle characteristicsinfluence the mechanisms of monetarypolicy, banking regulations and laws

2.2.2.2 Customers:

Real estate Products of TASCO can be divided into three main product lines andcorresponds to a line of products that the customers are:

Customers who bought the apartment building;

Customers who bought apartments with average income (middle level);Customer group in midle level income include: class residential income from 3 to 4million VND per month; class migrants from other provinces to Hanoi to workretail and a new career; Students after graduating come to Hanoi capital to workwith table income

Customers leasing offices, buildings, premises commercial center (Businesscustomers in retail, the new company formed not enough financial resources tobuild headquarters; new household incomes are not stable)

2.2.2.3 Suppliers:

a/ Land fund

These inputs are very important for companies and business property for TASCOnot an exception TASCO contracted a lot BT, BOT projects and The Committee ofthe city pay the amount of investment for construction and installation items withpotential land fund in the region Le Duc Tho, Xuan Phuong, Tu Liem District

Traffic Design and consultant No 2 Joint stock Company;

Hoan Cau Consulting and designing Joint stock Company;

Thien Khai Consulting and designing Joint stock Company;

Viet Nam Building Consulting and designing Joint stock Company

2.2.2.4 Analysis of Capital providers:

Characteristics of the real estate business is the rate of loans used to conduct largeproject implementation, and then when revenues will refund the loans TASCO withmodel the joint stock company, besides using of capital from issuing shares orbonds to implement the project, the company also uses bank loans to meet the scale

of the project

Projects are implemented by TASCO are Group A projects, with total investmentfrom several dozen to several hundred million dollars requires a lot of new bankcapital sufficient financial resources for the project TASCO has been building arelationship of strategic cooperation with major banks like Bank of investment anddevelopment of Vietnam (BIDV), Vietnam Foreign Trade joint stock Banks(Vietcombank), VietNam incomercial Bank (VietinBank) Especially capital