CÁC NGUỒN vốn MÀ DOANH NGHIỆP CÓ THỂ HUY ĐỘNG ở VIỆT NAM e

Mobilizing capital by the "Prestige" 4 7 Business in internal capital mobilization 5 PART 2 Current status of capital raising and proposed solutions to mobilize capital in the Chien Tha

CÁC NGUỒN VỐN MÀ DOANH NGHIỆP CÓ THỂ HUY ĐỘNG Ở VIỆT NAM

Topic:

Analyze business capital that can be mobilized in Vietnam Choose a business that you do know best Assume that business is access to capital, she would advise him that business capital mobilization from the source yet? Why?

PART 1 The enterprise funds that can be mobilized in Vietnam 4

2 Mobilizing capital by the "Prestige" 4

7 Business in internal capital mobilization 5

PART 2 Current status of capital raising and proposed solutions to

mobilize capital in the Chien Thang Garment company

6

1 Overview of the Chien Thang Garment company 6

2 The need to renew equipment in Chien Thang Garment company

7

3 Demand balance for capital equipment and technology innovation at the Chien Thang Garment company in the future

8

4 Some solutions for mobilizing capital for the Company in exchange for new technology equipment

9

Reference:

To ensure regular funding for activities and development is one of the core issues that need attention of each enterprise However, there are so many leaders of enterprises who are not interested in the preparation, and they said that when it needs to be done And when they need doing, thay haven’t a systematic approach to success

Capital is one of the current hot issues for enterprises in the market economy Therefore the task of business have to mobilize and use capital that is most effective on the basis of principles of finance, credit and law observance To change capital funding regularly will help the management of state enterprises and the granting agency to show the causes and extent of influence of each factor to effective use of corporate capital

Nowaday, in the market economy, the demand for business capital has become more important and more urgent Because the business have to face directly with the fluctuation of the market, with the edge competitiveness of domestic enterprises, as well as overseas customers, so it requires companies to use capital reasonably to bring the highest efficiency

in production and business activities, and increase their competitiveness On the other hand,

to expand business, companies must find any ways to boost capital, so the competition in the capital markets have become more intense and more aggressive

Nowaday, there is a problem in the economy competitive market finding any ways to raise capital was hard, and how to use the financial means of most useful is more difficult To be able to attract investment capital for production and business processes, first of all the businesses need to use most effectively the capital of their business However, the business still continued to use these funds wasted, and use of capital bring low efficiency The reality of the mobilization process and use of business capital in the recent period took place like? And the solutions that businesses need to do to mobilize and use capital more effectively, become a strong business, and orientate activities for other economic sectors? This is a difficult task for all enterprises in the past and present

PART I FUNDS WHICH ENTERPRISES CAN MOBILIZE IN VIETNAM

Maintain capital in the enterprise is as important as blood vessel in the human body, and this

is a condition for survival Today, in times of monetary tightening bank, managed to have enough money to pay bank interest rates was difficult, bank loans are more difficult How can people are as smart and trendy as entrepreneur who raise funds to maintain the operation

of the business? That is raising capital outside the stock market, raising capital by a "credit" and mobilizing idle capital in enterprises and promoting self-funding of the business

1 Joining the stock market to raise capital

The stock market is always the most effective mobilization of funding methods This fund is long term and strong enough to provide for long-term investment plan First, let's sell shares

to shareholders depending on the amount needed If you want to sell to the public, you shall

be listed on the stock market, at that time shares are called stock The next time you want to raise capital, then you continue to sell the remaining shares or you can register new Then whenever you want to raise capital, the company will sell shares retained at the beginning, or release a batch of new shares, called the new release, depending on the consensus of the Board

2 Mobilizing capital by the "Prestige"

The word "Prestige" for businesses has never been so important as the period of monetary tightening bank Today, the most common way businesses is using the word "Prestige" to use captial of customers, business partners and take advantage of loans from family and friends

3 Use of capital partners, customers: Extension of time limit for payment with customers

is the way that many enterprises have done to generate capital This capital does not have to pay interest rates that is right in most of their funds The business partner usually deference,

so they will understand and not confuse it for proving Besides that is raising capital from the customers to get an agreement with putting money first and taking the goods after This is the rule with the auto companies, computer, real estate, and construction For example, signing incentives apartments sold before construction of residential projects of the company

A and customer loans at an interest rate equal to the deposit rates of banks Both companies and customers are profitable because the company raised capital and customer bought cheap apartments

4 Borrowing from family: The relatives as family, friends, colleagues is abundant

capital Maybe they are successful in business and does not intend to invest or that is amount

of money what they saved or inherited, or forex To raise capital is not difficult if you pay them interest rates higher than raise interest rates (but lower interest rates for bank loans to businesses - this is good) Company should agree from the beginning this is not a loan and make capital contributions paid as soon as possible because the business is risky and sometimes not as expected

5 Business in internal capital mobilization

When you are absorbed in raising capital, capital is a fairly large and very cheap back in just

in your business It is idle capital from employees Besides the internal issue of bonds in order to raise capital, make raising additional idle capital in your employees with a reasonable interest rate If your employees are not busy with the stock market and real estate,

they sure will join hands to help your businesses in this difficult period

6 Enterprises can create with own capital: own capital of the business that is the goods

and services of the business (eg projects), debt of customers and other assets such as real estate , shares, securities, or even jewelry Create high liquidity, debt collection and sale part assets is also a way of raising capital with the resources of its own business

7 Creating high liquidity for the goods: High liquidity of the goods and the project is

always the dream of business Take this opportunity to implement "rolling" for the project, completed then sold out in order to create liquidity for capital projects, to raise capital and reinvest

8 Sell the property: You can sell some assets that you own, such as housing, cars, stocks,

jewelry These sources also give your business a capital not less to maintain production and generate profits in the next project

9 Debt collection as much as possible: Debt is what has always existed in the industrial

applications Make sure your debts must be collected at the highest level and in the shortest possible time Because capital is not concentrated and distributed at each customer a little, that is not good for your business

PART 2 Current status of capital raising and proposed solutions to mobilize capital in the Chien

Thang Garment company

1 Overview of the Chien Thang Garment company

Chien Thang Garment Company is an state-owned enterprise, a member of the Textile and Garment Corporation of Vietnam, under the Ministry of Industry Chien Thang Garment Company International named are: Victory Garment Company

Abbreviation: CHIGAMEX

Headquarters: 10 Thanh Cong – Ba Dinh – Ha Noi

1.1 The process of formation and development of the Company

On 02/03/1968, on the basis of machinery, equipment and personnel of the station Le Truc and Ha Tay level I factories, Ministry of Domestic Trade decided to establish Chien Thang Garment Factory, No 8B based in Le Truc street, Ba Dinh District, Hanoi City and assigned

to the Bureau of textile apparel management

On 15/06/1968, the Chien Thang factory was inaugurated, with the total number of factory workers at that time was 325 persons (including 147 women) In 1986, in the spirit of Resolution 306 of the Political and Decision of the Council of Ministers 217/HDBT transferred autonomy to enterprises in production and business organizations, in addition to the annual State plan communication, enterprises are allowed to organize production to ensure more jobs and increase incomes for laborers In 1992, enterprises established a new facility at dress number 10 in Thanh Cong street On 08/25/1992 the Ministry of Light Industry issued Decision No 730/CNn-TCLD renamed The Chien Thang factories into The Chien thang Garment Company

1.2 Duties of the Company during the production and business activities

When the newly established company, it has production tasks of clothing, caps, gloves, with targets of the State From 1975 to the present, the company's production is increasingly more severe, in addition to the annual State plan, the company also have discretion in the sourcing, production organization processing the garments under economic contracts with foreign organizations as well as domestic production of garments sold FOB export products woolen carpets, leather, etc to serve the needs consumption of domestic and international

The company must complete tasks assigned by the Textile-Garment Corporation Affairs, have the responsibility to preserve and develop, continuously improve their material and spiritual life, foster and improve the professional qualifications of staff and workers in enterprises,

In the future, the company focused on building a business task in the direction of decreasing revenues from the public to undertake the search for direct export markets, expand market for domestic products , etc

2 The need to renew equipment in Chien thang Garment Company.

It can be seen clearly revolutionized science and technology has brought to society of great progress, technology in general and in particular garment technology are now growing very fast A device operating uptime below 10 years are considered also to be used, if used more than 10 years shall be regarded as outdated Therefore, in present conditions the company needs to increase the ratio of devices that work time less than 10 years However, now at Chien Thang Garment companies still use these devices have a lifespan of 10 years as a metal machine 8332/005, attached machines CS 600, 771 Le Agave plant, The total

number of machines in use for over 10 years about 50-60 units (3%) of these machines have been fully depreciated production capacity has been greatly reduced but still in use these machines not only have a large coefficient of wear and tear of the more notable but also were

no longer synchronized between the stages of the production process In a line of industrial sewing machines to produce qualified products require high quality, the type of equipment is not only modern, but also need to be produced at the same time and by a vendor

.But now, in the Chien thang company devices are arranged on the production line is "lame." This lack of synchronization problems exacerbate the same product is produced but there are beautiful parts of the seam, the department has not reached the technical requirements such

as rough only, leaving the nose, Besides the obsolete equipment and technology competition in the market requires investment in new machinery and equipment changes need to be done regularly Now, in Vietnam there are many businesses may operate, businesses may occur between phenomenon competition fierce Some businesses may have gradually asserted themselves in competition such as: May 10, VietTien, Phuong Dong, Thang Long The fact that requires companies to Chien thang if want to survive and thrive in the future, they must actively reform and renewal and made on all sides of which must focus

on improving product quality products, improvement of skills for workers and rapid

modernization of machinery and equipment to get the ISO standards of quality apparel products as some other garment enterprises, to improve the company's reputation both domestic and international

Raising capital to renovate fixed assets in general, in particular machinery and equipment in the current period can lead to the company certain difficulties, but the company should determine if we want to win the competition, the requirements first is to improve product quality, diversification of forms design and the convenience and uniqueness of the product because apparel innovation is now very fast (about the design quality of 13% -14% above a year) can satisfy the tastes of consumers

Finally, the modernization of machinery and equipment will be capable of lowering production costs, minimize defects in production, crux of the problem and is able to reduce product prices contributed to increased volume of products sold in domestic market-a market that is very sensitive to product prices and gradually raising the prestige of market companies targeting international contracts signed direct export

In short, machine and technology innovation has become essential requirements in the innovated process of production and business operations at the Chien thang company It is vital issues, influence the decision to the existence of the company, is key to help the company win the competition and ensure sustainable development in the future

3 Demand balance for capital equipment and technology innovation at the Chien thang company in the future.

Chien Thang Garment Company is an enterprise specialized in manufacturing of products, including many factories with each manufacturing workshop closed chain must conduct all the hard work from modeling, sensory form, until the product in stock Each stage of production the use of specialized machinery and equipment separately To invest in the renovation of machinery and equipment in the company now has two options

Option 1 : Invest on the basis of upgrading, renovating, inheritance and development of existing technology platform combined with additional investment in key areas in a number

of key equipment have to be replaced

Option 2 : New Investment entire device completely technology

Each investment plans have their advantages and limitations:

The first option: investment in the renewal process can be undertaken in the near future because upgrading only conducted in a part of the process technology, companies can take advantage of current technology, renovation costs are not too large, consistent with the ability to raise capital in the near future at the company However, the biggest drawback of this scheme is the efficiency of investment activities can not be achieved as expected, the lack of synchronization can cause "discrepansy" of the technological lines

The second: Renovation complete equipment and machinery will be creating the new technology for the company, improve production quality, and can bring the desired results The biggest drawback of this plan is to put all these advantages of using of existing technology, to train or recruit new workers and technical staff while the risk of technology being obsolete in the near future can still happen and especially need to use a large amount

of investment capital

In my opinion, with the situation as the current capital mobilization, the company should make investment in the first plan is appropriate And in fact the company also plans to renovate in this plan The investment project is expected to end in 2013 and it is likely to increase capacity to 140% of current capacity The project is divided into two phases

Stage 1 :

+ To purchase additional specialized sewing 700 kinds of brand JUKI, these devices produced by Japan, the entire semi-automatic and automatic 100%

+ To add a line embroidery machine brands including Tajima embroidery newest first 20 fully programmable and controlled by computer

Stage 2 :

Investment in innovation ironing and packaging system for finished sewing product, switch

to using the system ironing, packaging processes and industrial hygiene almost entirely automated

According to calculations in the economic and technical, to accomplish the project the company has to raise capital of about $ 13.5 billion To the Chien Thang company, this is a huge amount of capital, if the company only raised from depreciation of investment and development funds, it will not have enough capacity to cover capital requirements for investment activities This investment activity can not delay initiate Therefore, to meet the needs for capital of this project, the company must be mobilized companies from other sources Through the options above, I would strongly propose solutions to mobilize capital in the Chien thang company

4 Some solutions for the Chien thang company raise capital to innovate equipment and technology.

One of the advantages of raising loans is that it can overcome the limitations of funds inside Mobilized through borrowing to meet the needs for capital in large numbers The Victory Garment Company can borrow in various ways such as loan staffs in the company, bank loans and other credit institutions, loans of Textiles Corporation, and I offer my solution which to mobilize capital from loans of staff in the company to present

Borrowing staffs in the company as a loan is quite popular in the business today The Chien Thang Company is characterized by an enterprise may have an average size but greater labor force (currently about 2490 workers) The mobilization through loan staffs at the company should be conducted in two forms:

- Loans from family savings of staffs This form of loan intended use of derivative instruments no need to use in family, friends, The company long term and medium term loans to invest in renovating the buildings, upgrading machinery and staffs are paid the interest rate or higher interest rates that the bank was mobilized but not higher levels of bank lending

- Loans from savings in the production of staffs: This form of raising capital from savings in production of workers and managers at the factories Each workshop produced after implementation of the order processing usually save a number of finished products and accessories The number of savings products transferred to this department and the company was converted into a certain amount The company will keep the money and treat it as an loan of staff company The biggest advantage of this loan method is time for borrowing very long (20-25 years), because the company is obliged to return these savings when employees leave the regime, and in case of staff of voluntary resignation, termination, companies do not have to return this money

Suppose the next time the ability to raise capital in the form of this company by my calculations is based on actual income situation in a number of garment enterprises in the country and the Chien Thang Company, the company can raise capital from the savings of each household staff of about 5,000,000 VND within 2490 and the number of workers, capital of the company was able to raise about 10 billion VND The ability to raise capital in production depends entirely on the production scale of the company in the future To increase the ability to mobilize capital from the company to boost production and business activities, more and more signed contracts, increase sales volume of products sold as FOB,

According to calculations based on the actual production situation at the company over time, funds raised from annual savings of about 0.7 to 0.8% of net revenue gain in the period If these statistics are based on expected net revenue in 2012 reached about 70.6 billion VND,

so the amount of capital from savings in production estimated at 570 million VND

Total mobilization from the staff of the company achieved approximately 7.030.000.000 VND (about 52.07% of the needed capital) To achieve this solution the company should implement the following measures:

Measure 1: To maintain business operations of the company to at least achieve the scale of revenue and profitability as in 2011, scaling up an order with the garment company's processing abroad, creating the potential signing more contracts of garments (especially customer contracts that pre-booked customers) Search for export markets apparel products directly sold as FOB, gradually raising the reputation of product quality, boost exports directly to the EU, the United States, by the Marketing policy, product advertising, participation in fairs and exhibitions to introduce the product Continuing to expand domestic consumption, enhance product introduction, promotion, marketing, gradually occupy and expand market share in consumer products in countries with apparel and leather products that the company has an advantage in production, such as jackets, skirts of all kinds, gloves, embroidered products If this measure is implemented effectively, the volume of consumer products company will boost, direct impact to the volume of products produced, contribute

to increased ability to raise capital from savings in production

Measure 2: To issue official incentive regulation for the staff (the loan of company) In this case the company will create favorable conditions for the loan have a right to withdraw funds after a certain time or convert it into shares or bonds (as the company to issue stocks and bonds to raise capital) On the other hand, companies should determine the level of interest rates to borrow funds from savings to suit the actual situation on the market, in case of necessity can be adjusted higher or more quivalent than long-term interest rate companies in the bank The company should really consider that interest rates is the leverage for loans from the staff of the company, in addition to the factory should adjustable rate increase when investment projects bring higher profits or investment plans expansion of welfare projects, the implementation of reward in order to create a positive impact on the psychology of the lender

Raising capital in this manner is capable of mobilizing large amounts of capital to ensure investment in innovation activities, furthermore long-time loans to mobilize simple and more