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

INTRODUCTION: Playing role of Business Development team of Vinamilk Joint Stock Company, which hasstock as VNM, listed on the HCM stock exchange-HOSE, Our group will proceed to studybusi

Phân tích báo cáo tài chính của Vinamilk và quyết định mở rộng đầu tư sang thị trường Thái lan và Malaysia của hãng

TABLE OF CONTENT

1 INTRODUCTION: 4

2 CONTENT 4

2.1 Financial Analysis: 4

2.1.1 Vinamilk JS Company Financial Statement Analysis : 4

2.1.2 Financial Situation Analysis of Malaysia and Thailand: 8

2.3 The legal and regulatory framework on foreign investment: 12

2.4 National Risk Analysis 16

2.4.1 Foreign Exchange Rate risk 16

2.4.2 Political risk and Financial risk 17

2.5 Business expansion strategy: 20

3 CONCLUSION: 22

4 REFERENCE 22

5 ATTACHEMENT 23

1 INTRODUCTION:

Playing role of Business Development team of Vinamilk Joint Stock Company, which hasstock as VNM, listed on the HCM stock exchange-HOSE, Our group will proceed to studybusiness practices of 2 countries in Asian region: Thailand and Malaysia, to analyse financialsituation, nation risks, legal frameworks on foreign investment in these 2 coutries to report toCEO of company for making decision of our company business expansion in the next time

2 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 11.110Current Ratio = - = - = 2,68

Current Liabilities 4.144

Comment: 1 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: 1 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

Average sales per day 75

Sale per year 26.561Average 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, 1 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: 1 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: 1 VND of asset finaced by 0,21 VND of debt, this ratio is hi-safe for the company.

Debt to equity ratio

Total liabilities 4.204Debt to equity ratio = - = - = 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 60Long 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

Comment: 1 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 aprerequisite for re-investment

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 18/2for 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 globaleconomic crisis, but in 2012 the Malaysian economy grew by 5.6% Particularly in quarter4/2012, 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, evenbetter than some developed countries

Framework of the country's capital markets, according to the International Monetary Fundand the World Bank, the peak due to "fully implement" 34/37 rule of InternationalOrganization of Securities Commissions (IOSCO)

Malaysian capital market in 2012 is unprecedented high, double-digit growth despite globalmarket 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 marketcapitalization increased 14.1%, assets under management increased by 19.2% and the Islamiccapital market increased by 22.6%

Malaysia is well placed when the ASEAN Economic Community takes effect in 2015 andwhen the capital markets are connected

Mr Ranjit Ajit Singh emphasized regional integration will be "extremely important" forASEAN, as it will allow the transaction to greater cross-border investment, fund distributioneasier and help the region cope competition from China and India

However, he said that the ASEAN members still need to develop infrastructure in order tofacilitate cross-border investment even after standardization of the legal framework of thecapital market

Thailand: Capital market in overview

The SSC model (as figure 1 below) consists of three major sectors, namely stability,structure, and challenge An ultimate goal of market stability can be decomposed into fourcomponents, 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 themarket volatility, to increase the market efficiency, and to minimize the transaction costs inthe market

In order to achieve the ultimate goal of market stability, structures must be taken intoconsideration.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, competitionand 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 theSecurities Exchange of Thailand (SET), the Bangkok Stock Dealing Center (BSDC), and theBond Dealer Club (BDC) These authorized secondary markets are regulated by theSecurities 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 mutualfunds and brokerage portfolios are institutional investors, foreign investors can actually bedivided 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 issuingsecurities The criteria of the basic qualifications for listing common or ordinary andpreferred shares are shown in Table 3

is reported by the Bank Negara Malaysia Historically, from 2004 until 2013, MalaysiaInterest Rate averaged 2.92 Percent reaching an all time high of 3.50 Percent in April of 2006and a record low of 2 Percent in February of 2009

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 subsidiescaused commodity prices do 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 at2.8 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 at1.3%

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 thecommon law system

a The provisions on import:

- Documents to import: import goods into Thailand must have documents: commercialinvoice (at least 5); lading (2); packing, special certificates (in the regulations on publichealth), import and export license

- Commodities of import restrictions: the government agencies are responsible for controllingthe import, marketing, distribution and sale of goods, including Administration Food andDrug 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, chemicalthallium waste and waste

- Temporary import: under Tariff Thai law, a certain number of items if temporary importand re-exported within six months from the date of accession, shall be exempt from importduties and / or taxes, but the importer must agreement with the tax authorities to ensure theitem will be re-exported within a certain period of time and may have to pay a fee to the taxauthorities

b Tax policy and tax rates:

- Import tax: appling the two columns under HS tariff, imports from ASEAN countries enjoypreferential tariffs Imported goods are usually subject to two taxes, import tax is calculatedbased on the gathering import tax rates of the CIF value of the goods (the price includes thevalue 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 export are exempt from import tax and VAT.

re Value Added Tax (VAT): applies to all goods and services produced (currently 7%) withthe 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 strawpacking)

- Labels: very strict regulations on the labeling for dairy products, children's food, cannedfood, vinegar, beverages, cooking oil and gunpowder Labeling of food products must belicensed by the Administration of Food and Drug Administration

For drinks, the label must specify the percentage of alcohol in the product, warnings aboutthe 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 andnational standards in Thailand

- The food items imported in Thai must be certified into medical quarantine with thecertifcate together with food import shipments Food commodities must be certified inaccordance with hygiene standards, suitable for users , which allows import / export

e Established businesses:

Foreign enterprises can do business in Thailand in a number of forms:

- Joint venture: by a group of people with common economic interests through agreementscooperation venture formed, it is not the Thai Civil and Commercial Code recognized butstill subject to enterprise income tax per Law on income

- Branch company: when established, it must follow 1 certain provisions to calculatecorrectly 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 licensemust have a minimum capital of 5 million baht at the same rate over the next four years)

- Representative Office: limited to non-commercial activities such as sourcing of goods andservices in Thailand for the company or the inspection and supervision of the quality ofgoods which it bought in Thailand and other activities, such as products marketingmanagement activities, new services, report on the situation of local business

- Regional Office: established to act on behalf of the company to coordinate and direct theactivities of the subsidiary companies in the region, the advantage is not registered orincorporated as a legal entity in Thailand and do not submit any financial reports with theBusiness Registration Office

MALAYSIA

Malaysia's legal system is mainly based on the common law (common law) of the UnitedKingdom 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 andhigh-tech sectors on the basis of joint ventures but retains significant authority approval foreach investment project For investment projects aimed at the domestic market, theMalaysian government limits foreign capital contribution at 30% and requires foreigncompanies 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) mustdeclare the prescribed declaration form and submitted to the tax authority at the place ofimportation

- Import License: is mandatory for some items, including weapons and explosives, motorvehicles, a number of pharmaceutical and chemical plants, some food

- Some items are prohibited imports: milk and dairy products import restrictions or importban

c Tax policy and tax rates:

- A federal tax legislation drafted and passed by parliament as income tax law, income taxlaw from real property, law to promote investment

- Indirect Taxes including import and export tax, sales tax and services tax, domesticproperty tax, entertainment tax, road tax

- Malaysia has a system of comprehensive tax treaty and signed 48 agreements on tax totwice tax avoidance and to encourage foreign direct investment An important point ofagreement on a tax is "tax savings", which, interest is divided from income to be exempt thetax under the tax incentives will be paid from the income tax payable

- To ensure foreign investment capital, Malaysia has signed 54 agreement guaranteedinvestment (IGA) to ensure for the investor that their funds are not expropriated ornationalized and allows free to repatriate capital

- Value Added Tax (VAT) in Malaysia has no, but consumption tax which is similar withVAT, 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 do 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 theproduction of drugs, pharmaceuticals, chemicals and additives for food

- Goods with compulsory quarantine: raw materials used in food processing, manufacture ofdrugs and pharmaceuticals

e Free zones