Phân tích báo cáo tài chính của vinamilk và quyết định mở rộng đầu tư sang thị trường thái lan và malaysia

Phân tích báo cáo tài Vinamilk định mở rộng đầu tư sang thị trường Thái lan Malaysia hãng TABLE OF CONTENT 1.INTRODUCTION: 2.CONTENT 2.1Financial Analysis: 2.3 The legal and regulatory framework on foreign investment: .11 2.4 National Risk Analysis 14 2.5 Business expansion strategy: 18 3.CONCLUSION: 21 After analyzing financial situation of our company-Vinamilk; financial situation, Nation risks, Legal & Regulatory Framework of Thailand and Malaysia; advantage & disadvantage of entry modes to Malaysia, Group 3, in the role of Business Development Team of Vinamilk company, gave out the analysis report as above to recommend to CEO to expand Vinamilk’s current domestic business to the international business in Malaysia, with the entry form of joint-venture with a Malaysia company, who has been working in the dairy industry, to build a manufacturing plant and sell dairy products there Challenges are ahead, but with the analysis in detail as above, which will help us to avoid the risks as much as possible and the business more confident in Malaysia 21 4.REFERENCE 21 5.ATTACHEMENT 22 INTRODUCTION: Playing role of Business Development team of Vinamilk Joint Stock Company, which has stock as VNM, listed on the HCM stock exchange-HOSE, Our group will proceed to study business practices of countries in Asian region: Thailand and Malaysia, to analyse financial situation, nation risks, legal frameworks on foreign investment in these coutries to report to CEO of company for making decision of our company business expansion in the next time CONTENT 2.1 Financial Analysis: 2.1.1 Vinamilk JS Company Financial Statement Analysis : Analyzing Financial Index of Vinamilk Joint Stock Company in 2012: A Liquidity Ratio: (unit: billion VND) Current Ratio: Current Assets 11.110 Current Ratio = - = - = 2,68 Current Liabilities 4.144 Comment: VND current liability in 2012 was secured by 2.68 the current assets, the ability of liquidity by current asset is high Quick Ratio: (Current Assets –Inventories) Quick Ratio = -Current Liabilities (11.110 – 3.473) = = 1,84 4.144 Comment: VND current liability in 2012 was secured by 1.84 VND shows the ability of liquidity in a short term of company is good, ensure a quick liquidity for customer B Effective Performance Ratio: Inventory Turnover Ratio: 17.485 Inventory turnover ratio = - = 5,18 round/year 3.373 Comment: Good inventory management capabilities, in 2012 with rapid inventory turnover (5.18 cycles / year) Days Sales Outstanding (DSO): Receivables 2.208 DSO = = - = 29,43 days Average sales per day 75 Sale per year 26.561 Average sales per day = = = 73,78 Bil VND/day 360 360 Comment: Average sales per day is high, VNM’s business effectiveness is very good The company DSO is about 30 days, which is acceptable Fixed Asset RatioTurnover Ratio Net sales Fixed Assets Turnover = -Net fixed asset 26.562 = = 4,06 6.543 Comment: In 2012, VND of fixed asset makes 4,06 VND of net sales, so fixed asset turnover is high, which shows fixed asset used efficiently Total Asset Turnover: Net sales Total Asset turnover = -Total assets 26.561 = - = 1,5 17.640 Commentt: VND of total fixed asset makes 1.5 VND of net sales Value of total fixed asset of commany increased which shows that the company expanded its business operations C Debt Management ratio: Debt/ asset ratio: Total debt 4.204 Debt ratio = = = 0,21 Total asset 19.698 Comment: VND of asset finaced by 0,21 VND of debt, this ratio is hi-safe for the company Debt to equity ratio Total liabilities Debt to equity ratio 4.204 = = = 0,27 Shareholders equity 15.493 Comment: the ratio < 1, show that the company has effective use of debt, the debts are guaranteed payment Long term debt ration: Long term debt 60 Long term debt to Equity Ration = = = 0,004 Equity 15.553 Comment: The use of long-term debt to long-term investment in the company in 2012 is very low, companies limit the risks D Earning power ratio: Net Profit margin Net income 5.819 Net Profit margin = - = - = 0,22 Sales 26.561 Comment: VND of sales makes 0,22 VND of net profit Business result(profit) of company is very good Return on Assets-ROA Net income 5.819 ROA = - = - = 0,33 Total assets 17.640 Comment: VND of asset makes 0,33 VND of net income Asset joining in business activities is high The company was managed well and being used the asset effectively Return on Equity (ROE) Net income 5.819 ROE = = - = 0,42 Shareholder’s equity 13.985 Comment: 1VND of shareholder’s equity makes 0,42 VND of net income show that the company is using effectively shareholder’s equity In summary: - By analyzing the financial index, the financial situation of the company is healthy - The company operates efficiently, ROA and ROE are high - Net cash flow from operations is 5,294 billion, demonstrating a good cash flow balance, is a prerequisite for re-investment  From the above analysis, the investment expansion of Vinamilk abroad is entirely feasible 2.1.2 Financial Situation Analysis of Malaysia and Thailand: A GDP Growth: Thailand's strong growth in the end of 2012: Social Development Commission and the national economy of Thailand (NESDB) on 18/2 for gross domestic product (GDP) of the country in the quarter 4/2012 increased 18.9% compared to the same period last year, and up 3.1% from the previous quarter NESDB projected GDP growth of Thailand in 2013 will reach 4.5 to 5.5 percent CEO NESDB, Arkhom Termpittayapaisith, said that the economic recovery in the U.S., China and Europe will also have a positive impact on exports of Thailand Malaysian economy grew 5.6% in 2012: Central Bank of Malaysia, said despite facing difficulties and the impact of the global economic crisis, but in 2012 the Malaysian economy grew by 5.6% Particularly in quarter 4/2012, the economy grew a record 6.4% B Capital market Malaysia Malaysian capital market is highly appreciated by international commune Malaysia's capital market has achieved high results in a recent international assessment, even better than some developed countries Framework of the country's capital markets, according to the International Monetary Fund and the World Bank, the peak due to "fully implement" 34/37 rule of International Organization of Securities Commissions (IOSCO) Malaysian capital market in 2012 is unprecedented high, double-digit growth despite global market volatility because of political and economic factors Annual Report of the Securities Commission (SC) Malaysia Malaysian capital market in 2012 showed that 16.4% 2470 billion ringgit (RM 793.3 billion U.S dollars), stock market capitalization increased 14.1%, assets under management increased by 19.2% and the Islamic capital market increased by 22.6% Malaysia is well placed when the ASEAN Economic Community takes effect in 2015 and when the capital markets are connected Mr Ranjit Ajit Singh emphasized regional integration will be "extremely important" for ASEAN, as it will allow the transaction to greater cross-border investment, fund distribution easier and help the region cope competition from China and India However, he said that the ASEAN members still need to develop infrastructure in order to facilitate cross-border investment even after standardization of the legal framework of the capital market Thailand: Capital market in overview The SSC model (as figure below) consists of three major sectors, namely stability, structure, and challenge An ultimate goal of market stability can be decomposed into four components, namely: liquidity, volatility, effciency, and transaction costs In other words, our goals of market stability bowls down to how to induce market liquidity, to control the market volatility, to increase the market efficiency, and to minimize the transaction costs in the market In order to achieve the ultimate goal of market stability, structures must be taken into consideration.The structure components consists of exchanges (or market microstructure), investors, listed companies (or products) and intermediaries (especially, brokerage firms) Finally, the authors challenge theview on regulations, technology and procedure, competition and behaviour for developing the stability of the Thai capital market Structure of Thai Capital Market: -Exchange Structure: The authorized secondary market in Thailand consists of three major markets, namely the Securities Exchange of Thailand (SET), the Bangkok Stock Dealing Center (BSDC), and the Bond Dealer Club (BDC) These authorized secondary markets are regulated by the Securities and Exchange Commission (SEC) - The Investor Structure of the Thai Capital Market The investors in the SET (Security Exchange of Thai) are divided into four sectors: individual investors, foreign investors, mutual funds, and brokerage portfolios While mutual funds and brokerage portfolios are institutional investors, foreign investors can actually be divided into individual and institutional investors - The Listed-Company Structure of the Thai Capital Market In the capital market, Products include not only securities but also companies issuing securities The criteria of the basic qualifications for listing common or ordinary and preferred shares are shown in Table C Interest rate InterestRate Country Malaysia Thailand 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1.08574 6.40100 8.848513 3.296312 2.906032 0.0345 1.263715 2.511636 1.448113 3.86649 3.10761 5.075493 6.009057 4.549112 2.302153 1.248565 1.989262 3.378127 3.083622 3.867492 Thailand: most economists expect the BoT will keep interest rates at 2.75% from now until the end of 2013 Malaysia: In Malaysia, the interest rate decisions are taken by The Central Bank of Malaysia (Bank Negara Malaysia) The official interest rate is the Overnight Policy Rate.The benchmark interest rate in Malaysia was last recorded at percent Interest Rate in Malaysia is reported by the Bank Negara Malaysia Historically, from 2004 until 2013, Malaysia Interest Rate averaged 2.92 Percent reaching an all time high of 3.50 Percent in April of 2006 and a record low of Percent in February of 2009 D Inflation Inflation Country Malaysia Thailand 2000 2002 2003 2004 2005 1.53474 2001 1.41678 2006 1.807873 0.992816 1.518542 2.960865 3.609236 1.591969 1.626909 0.697309 1.80435 2.759149 4.540369 4.637474 2007 2008 2009 2.027353 5.440782 0.583308 2.241541 5.46849 0.84572 Thailand: Thailand's inflation in February / 2013 dropped to 3.23%, lower than the median forecast of 3.4 percent in a Reuter poll and 3.39% of 1/2013 This is the second consecutive month inflation of Thailand reduced by government subsidies caused commodity prices not raise and the strong Baht makes imports cheaper Ministry of Commerce of Thailand also forecast inflation in quarter 1/2013 is 3.3% and at 2.8 to 3.4% in 2013, compared to 3.02% in 2012 Malaysia: According to the Central Bank of Malaysia, the inflation index in quarter 4/2012 at 1.3% 2.3 The legal and regulatory framework on foreign investment: THAILAND: Thailand's legal system is based on civil law system but there is some influence of the common law system a The provisions on import: - Documents to import: import goods into Thailand must have documents: commercial invoice (at least 5); lading (2); packing, special certificates (in the regulations on public health), import and export license - Commodities of import restrictions: the government agencies are responsible for controlling the import, marketing, distribution and sale of goods, including Administration Food and Drug Administration, Bureau of Customs, Department of Agriculture business and industry; including some commodities such as agricultural products, chemicals, garments, Milk, Wood, Flour - The goods banned from export, import: Cigarettes, Arsenic, ethylene diclorua, chemical thallium waste and waste - Temporary import: under Tariff Thai law, a certain number of items if temporary import and re-exported within six months from the date of accession, shall be exempt from import duties and / or taxes, but the importer must agreement with the tax authorities to ensure the item will be re-exported within a certain period of time and may have to pay a fee to the tax authorities b Tax policy and tax rates: - Import tax: appling the two columns under HS tariff, imports from ASEAN countries enjoy preferential tariffs Imported goods are usually subject to two taxes, import tax is calculated based on the gathering import tax rates of the CIF value of the goods (the price includes the value of goods, insurance and freight transport switch) and value added tax (VAT) is calculated based on the entire CIF price and the import of goods Common goods for reexport are exempt from import tax and VAT - Value Added Tax (VAT): applies to all goods and services produced (currently 7%) with the exception of services sold agricultural products, books and newspapers -Corporate income tax: adjusted based on the profits of the company, equal to 30% c Regulations on packaging and labeling: - Packing: be made of secure and resistant to heat and moisture (avoid hay and straw packing) - Labels: very strict regulations on the labeling for dairy products, children's food, canned food, vinegar, beverages, cooking oil and gunpowder Labeling of food products must be licensed by the Administration of Food and Drug Administration For drinks, the label must specify the percentage of alcohol in the product, warnings about the dangers to health (if any) and must be printed in Thai d Animal and plant quarantine regulations: - All food items imported in Thailand must comply with health and safety requirements and national standards in Thailand - The food items imported in Thai must be certified into medical quarantine with the certifcate together with food import shipments Food commodities must be certified in accordance with hygiene standards, suitable for users , which allows import / export e Established businesses: Foreign enterprises can business in Thailand in a number of forms: - Joint venture: by a group of people with common economic interests through agreements cooperation venture formed, it is not the Thai Civil and Commercial Code recognized but still subject to enterprise income tax per Law on income - Branch company: when established, it must follow certain provisions to calculate correctly the income subject to Thai tax because the tax authorities considered gross income of foreign companies gained in Thailand are taxable (branch wants to have a business license must have a minimum capital of million baht at the same rate over the next four years) - Representative Office: limited to non-commercial activities such as sourcing of goods and services in Thailand for the company or the inspection and supervision of the quality of goods which it bought in Thailand and other activities, such as products marketing management activities, new services, report on the situation of local business - Regional Office: established to act on behalf of the company to coordinate and direct the activities of the subsidiary companies in the region, the advantage is not registered or incorporated as a legal entity in Thailand and not submit any financial reports with the Business Registration Office MALAYSIA Malaysia's legal system is mainly based on the common law (common law) of the United Kingdom and each state has more system state laws given by the state's Legislative Council a Legal environment for foreign investment in Malaysia: Malaysia has signed investment guarantee agreements with 54 countries around the world Malaysia has no regulations restrictions on the transfer of profits abroad or import of capital Government encourages foreign direct investment in projects producing goods for export and high-tech sectors on the basis of joint ventures but retains significant authority approval for each investment project For investment projects aimed at the domestic market, the Malaysian government limits foreign capital contribution at 30% and requires foreign companies to joint ventures with local partners in Malaysia b Import and export regulations: Documents imported: All imported goods (including goods not subject to import duty) must declare the prescribed declaration form and submitted to the tax authority at the place of importation - Import License: is mandatory for some items, including weapons and explosives, motor vehicles, a number of pharmaceutical and chemical plants, some food - Some items are prohibited imports: milk and dairy products import restrictions or import ban c Tax policy and tax rates: - A federal tax legislation drafted and passed by parliament as income tax law, income tax law from real property, law to promote investment - Indirect Taxes including import and export tax, sales tax and services tax, domestic property tax, entertainment tax, road tax - Malaysia has a system of comprehensive tax treaty and signed 48 agreements on tax to twice tax avoidance and to encourage foreign direct investment An important point of agreement on a tax is "tax savings", which, interest is divided from income to be exempt the tax under the tax incentives will be paid from the income tax payable - To ensure foreign investment capital, Malaysia has signed 54 agreement guaranteed investment (IGA) to ensure for the investor that their funds are not expropriated or nationalized and allows free to repatriate capital - Value Added Tax (VAT) in Malaysia has no, but consumption tax which is similar with VAT, is included after unified sales tax and service tax (sales tax and service (SST) - Import duties: to regulate the import of goods, in the range of 0% to 300% - Income tax: Malaysia not have payroll taxes, wage income tax, sales and development d Animal and plant quarantine regulations - Import controlled goods through quarantine regulations: drugs and raw materials for the production of drugs, pharmaceuticals, chemicals and additives for food - Goods with compulsory quarantine: raw materials used in food processing, manufacture of drugs and pharmaceuticals e Free zones Malaysia has the free zone (FZs) for the establishment of export-oriented manufacturing base and storage of goods Raw materials and equipment may be imported free tax in these areas under the minimum customs procedures f Regulation on standards for goods and services: To be able to circulate in the market, some kind of end products are required to have some sort of certification by the Ministry of Health Malaysia): Health Certificate, Free Sale Certincate-FSC, Good Hygienne Practice (GHP) Certificate The packaged foods sold in Malaysia must be labeled nutrients including cereals, milk, juice, soft drinks g Established a business in Malaysia: The types of businesses to comply with the Enterprise Law of Malaysia, the type that is: Corporation (the company must have at least "Berhad_Bhd" at the end of the company name or the word "Sendiriam Berhad_Sdn Bhd" for private companies; branches of foreign companies, limited liability companies and infinite Establishment of branches of companies in foreign: by ROC responsible agencies receive registration documents established, ROC will approve the name of the branch on the basis of review of records (including charter operations of branches and other documents as required in English) Business licensing regulations for the direct selling company: Malaysian law provisions: the foreign party is not in power for more than 30% in a company that was established in the country, the price increases must be approved by the Ministry of Domestic Trade and Consumer (MDTCA) 2.4 National Risk Analysis 2.4.1 Foreign Exchange Rate risk Foreign exchange risk refers to the risk faced due to fluctuating exchange rates For example, a Malaysian trader who exports palm oil to India for future payments in Rupees is faced with the risk of Rupees depreciating against the Ringgit when the payment is made This is because if Rupee depreciates, a lesser amount of Ringgit will be received when the Rupees are exchanged for Ringgit Therefore, what originally seemed a profitable venture could turn out to be a loss due to exchange rate fluctuatiosn Such risks are quite common in international trade and finance A significant number of international investment, trade and finance dealings are shelved due to the unwillingness of parties concerned to bear foreign exchange risk Hence it is imperative for businesses to manage this foreign exchange risk so that they may concentrate on what they are good at and eliminate or minimize a risk that is not their trade Elsewhere traditionally, the forward rates, currency futures and options have been used for this purpose The futures and options markets are also known as derivative markets Malaysia: The 1997 East Asian currency crisis made apparent how vulnerable currencies can be The speculative attacks on the Ringgit almost devastated the economy if not for the quick and bold counter actions taken by the Malaysian government, particularly in checking the offshore Ringgit transactions It also became apparent the need for firms to manage foreign exchange risk Many individuals, firms and businesses found themselves helpless in the wake of drastic exchange rate movements Malaysia being among the most open countries in the world in terms of international trade reflects the degree of Malaysia’s exposure to foreign exchange risk  In Malaysia, futures and options on currencies are not available This is a risk of exchange rate for foreign investment Thailand: Prior to 1997, Thailand operated under a fixed exchange rate regime The mechanics of the regime as well as the value of the peg were adjusted from time to time Thailand’s monetary policy after the crisis: After the floatation of the baht, the immediate macroeconomic policy priority turned towards the restoration of both internal and external stability With the support of an IMF program, Thailand began to put in place a series of economic adjustments and reforms to deal with the structural problems in the economy and restore investor confidence In regards to the monetary policy framework, a new nominal anchor as needed after the fixed exchange rate regime was abandoned and Thailand adopted a monetary targeting regime under an IMF program whereby domestic money supply was targeted to ensure macroeconomic consistency Together with a managed float currency regime on 2July 1997, this framework gave the Bank of Thailand sufficient flexibility to respond quickly to fast changing domestic and external developments while ensuring price stability in the long run Figure shows that Thailand’s inflation and growth performance has generally been quite good with the sharp recovery not accompanied by a corresponding pickup in inflation => Thailand implemented Practical Applications of Effective Exchange Rate throughout Assessment of competiveness, Assessing the degree of possible exchange rate misalignment, Evaluating monetary and financial conditions, Guide for intervention operation to maintain the stability of monetary policy & exchange rare regime and to limit exchange risk for foreign investments 2.4.2 Political risk and Financial risk Weight assigned by us to factors according to importance when investing in Malaysia Political Risk Factors Rule of law : 20% Regulatory quality : 30% Political stability : 30% Government effectiveness: 20% Financial Risk Factors Interest rates: 70% Inflation: 30% Weight assigned by us to factors according to importance when investing in Thailand Political Risk Factors Rule of law : 20% Regulatory quality : 30% Political stability : 25% Financial factors Interest rates: 70% Inflation: 30% Government effectiveness: 25% The risk weights of investments in Malaysia and Thailand are determined subjectively from us (Group 3) by observing the changes of the factors in the country Malaysia and Thailand By the calculation of risk weights on the national risk & financial risk on the above table, we see the results of assessing the risk of the country of Thailand and Malaysia as follows: Below is a diagram that shows the level of country risk fluctuations from year 2000-2010 From the above results, we see that: Malaysia has fluctuating levels of country risk is very high In 2000 the level of risk only is -0.12 while only a year later, in 2001, this risk increased to more than and decreased to -0.11 in 2004 However, by 2009 this ratio had increased to 1.4 and 1.3 in 2010 High level of vibration indicates the stability of this country is not high Malaysia is one of the few countries in Asia appreciated by the international financial institutions on the growth potential of the economy But behind the impressive appearance that is potentially more dangerous risks, such as the budget deficit is too high and the explosion of electronic trading systems Meanwhile, Thailand has fluctuating levels of risk is not as high as Malaysia Highest risk of falls in 2008 is 1.48 That is the year when Thailand was impacted from the financial crisis in 2007 while the lowest was 0.48 and 0.49 in 2009 and 2010 Thailand is a country in Asia has the growth potential of the economy But it is still potentially more dangerous risks, especially political changes in this country is very high Recently, the consulting firm on political and economic risks (PERC) in Hong Kong has announced the results of the investigation, said the level of business risk in Thailand soared, due to political problems in the country In a scale of to 10 that PERC publication (the lower the better), Thailand ranks 9/14 countries with score of 5.49, business risk indicators is much higher than other ASEAN countries such as: Singapore, Malaysia, Vietnam, etc As the graph shows, although risk fluctuate levels in Thailand is more stable than in Malaysia, but look at the general level in 10 years, Malaysia has up to years with a lower level of risk compare to Thailand If Malaysia is to control the consequences of the financial crisis impact in 2009, certainly this risk will decrease in the next years According to the International Relations Committee - VCCI, besides Malaysia have appropriate policies for each period for the development of foreign trade, there are many reasons for Malaysia to become investment choices: • This is where the crowded gathering of religious and ethnic groups such as Muslims Malai, Indians, Chinese and many other ethnic groups, but people living in peace and harmony • Malaysia is a safe country and has low crime rate Law and favorable business climate • Malaysia is always open for foreigners to business and they can buy real estate in his own name, which can not get in most Southeast Asian countries • Malaysian Investment Promotion Agency (MIDA) is very professional in assisting investors to explore business opportunities as well as to establish a company or set up shop in Malaysia • Malaysia has good relations with all countries in the world and not hostile to any neighbors  So, our company-Vinamilk decided to choose Malaysia to expand our business 2.5 Business expansion strategy: Malaysia is a potential market for Vinamilk for a number of reasons: - The demand and domestic production capacity: Like other Asian countries, rapid income growth, expanding urbanization and conversion constant diet puts increasing pressure on the string high value agricultural supply in Malaysia, especially dairy products - Climate: Malaysia is hot and humid climate, with climate control as this is an obstacle for livestock production as well as dairy products, since this leads to the local production does not meet the demand The business environment in Malaysia is open to all countries, especially Asian countries: - Malaysia has a stable political situation, many people live - Malay 50.4%, Chinese 23.7%, Indigenous 11%, Indian 7.1% other ethnic groups 7.8% They maintain political neutrality peace and stimulate economic development - Malaysian corporate income tax system is not too high: Indicator Malaysia East Asia & Pacific average 25 Payments (number 13 per year) Time (hours per year) 133 209 Profit tax (%) 7.5 16.7 Labor tax and 15.6 10.9 contributions (%) Other taxes (%) 1.4 6.9 Total tax rate (% 24.5 34.5 profit) Nguồn: Doing Business in Malaysia 2013 – World Bank OECD high income average 12 176 15.2 23.8 3.7 42 - Malaysia has the advance scientific and technology, this is the premise for the - research and development of new products Has joined the AFTA free trade, this is the basis for export abroad In the type of businesses (entry modes) to expand to Malaysia: Franchise, License, Turnkeys, Export, Whole owned subsidiary and Joint Venture, each entry mode has a number of actractions & limitations as follows: • Franchise: Franchise requires an existing product and preferred brand, the unique products and services and market expectations for expansion In fact, Vinamilk is a strong national brand, with a wide variety of products, but on the world market in general and Asian countries in particular, it is still new and is not expected in Malaysia • License: License requires the product or manufacturer owns the technology, advanced manufacturing processes, and and when a licensed company get ownership of production, it will bring more profit for the company Currently, Vinamilk owns many quality product lines and modern production process, but in fact, these advantages are only within the national scope and are not superior to the potential markets such as Malaysia Therefore, it’s very difficult to enter the Malyasia market in the form of License • Turnkeys: When expanding into Malaysia market, Vinamilk focus on market share, so the investment in the form of turnkey is not in accordance with the development strategy • Export: This is the entry form is preferred because it is less cost and low risk, but in the long run with this direction, the market will not take full advantage of Malaysia Besides, the cows livestock and dairy production industry in Malaysia don’t meet all the needs for the future growth of company to expand domestic market and increase the market share in Malaysia So this enter mode is not suitbale • Whole owned Subsidiary: Enter the Malyasia market by this form help Vinamilk reduce the risk of losing control over core competence but it’s unattractive because Vinamilk bear the full cost and risk of setting up all operations in Malaysia • Joint- venture: When entering the Malaysian market, the form of Joint-venture by cooperating with a Malyasian partner to build a dairy manfucturing factory in Malaysia was chosen because of its several advantages: - Vinamilk can benefit from the local partner’s knowledge of the Malaysia country’s - compatitive conditions, culture, language, politic sysystem & business system The cost & risk are shared with this partner Reduce risk of nationalization or other adverse government interference, which Vinamilk may be not better than the partner However, Vinamilk will be prudent when giving control of its technology for the partner or share ownership can lead to conflicts and battles for control if thier goals & objectives differ or change over time 3 CONCLUSION: After analyzing financial situation of our company-Vinamilk; financial situation, Nation risks, Legal & Regulatory Framework of Thailand and Malaysia; advantage & disadvantage of entry modes to Malaysia, Group 3, in the role of Business Development Team of Vinamilk company, gave out the analysis report as above to recommend to CEO to expand Vinamilk’s current domestic business to the international business in Malaysia, with the entry form of joint-venture with a Malaysia company, who has been working in the dairy industry, to build a manufacturing plant and sell dairy products there Challenges are ahead, but with the analysis in detail as above, which will help us to avoid the risks as much as possible and the business more confident in Malaysia REFERENCE http://www.vinamilk.com.vn/ http://cafef.vn/tai-chinh-quoc-te/thai-lan-nam-trong-nhom-thi-truong-moi-noi-hap-dan-nhat-2012022309381292ca32.chn http://www.vietnamplus.vn/Home/Thi-truong-von-Malaysia-duoc-quoc-te-danh-gia-cao/20133/188052.vnplus http://www.vietnamplus.vn/Home/Thai-Lan-tang-truong-manh-trong-dip-cuoi-nam-2012/20132/183471.vnplus http://www.vietnamplus.vn/Home/Lam-phat-cua-Thai-Lan-giam-trong-2-thang-lien-tiep/20133/185702.vnplus http://www.thuongmai.vn/thi-truong-malaysia/114268-kinh-te-malaysia-tang-truong-56-trong-nam-2012.html http://export.gov/thailand/doingbusinessinthailand/index.asp http://lcweb2.loc.gov/frd/cs/thtoc.html http://www.wipo.int/sme/en/documents/franchising.htm http://www.myownbusiness.org/franchising_your_business/ http://smallbusiness.chron.com/should-license-franchise-3940.html http://www.franchisefoundations.com/franchisevslicense.html http://www.wipo.int/sme/en/documents/franchising.htm http://www.agrifood.info/review/2010/Boniface_et_al.htm Hồ Sơ Thị Trường Malaysia – Ban Quan Hệ Quốc Tế VCCI – tháng năm 2012 http://ngoisao.net/tin-tuc/thuong-truong/2007/03/dau-tu-o-thai-lan-nhieu-rui-ro-67208/ http://www.lariba.com/knowledge-center/articles/pdf/Malaysia%20-%20GOLD%20-%20Hedging%20With%20Dinar.pdf(foreign exchange risk) http://www.bot.or.th/Thai/FinancialMarkets/operations/DocLib_FX/Effective%20Exchange%20Rate%20and%20Monetary%20Policy %20The%20Thai%20experience.pdf http://webh01.ua.ac.be/cas/PDF/CAS13.pdf ATTACHEMENT - Finance Statement of Vinamilk Joint Stock Company - Nation Risk Analysis ... balance, is a prerequisite for re-investment  From the above analysis, the investment expansion of Vinamilk abroad is entirely feasible 2.1.2 Financial Situation Analysis of Malaysia and Thailand:... exports of Thailand Malaysian economy grew 5.6% in 2012: Central Bank of Malaysia, said despite facing difficulties and the impact of the global economic crisis, but in 2012 the Malaysian economy... Thailand: most economists expect the BoT will keep interest rates at 2.75% from now until the end of 2013 Malaysia: In Malaysia, the interest rate decisions are taken by The Central Bank of Malaysia