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I.1.1 Chapter 1: PROJECT OVERVIEW 1.1 Introduction - Project name: Investment to built wood chips factory - Location: Que Cuong, Que Son District, Quang Nam Province - Type of investment: Investment in new building 1.2 Imperativeness Currently, the domestic materials for paper production mainly depend on imports, accounting for nearly two thirds of the domestic material needs of paper production, the rest, by offshoring Due to import raw materials, domestic production faced many difficulties This is one of the reasons to push paper prices increase in the future On the other hand, the demand for paper in the market is very large, so businesses in paper industry have increasingly developed Most businesses have confirmed, if materials prices continuously face to difficulty, it might lead to the increase in paper even businesses always uphold the spirit of saving production costs and accepting in reducing profits Facing the tension of the current paper market, we would like to set up and implementation of the project: "Construction woodchips factory in Quang Nam" 1.2.1 The natural conditions of the project area Quang Nam province is located in central Vietnam (from 14057'10'' to 16003'50'' north latitude, from 107012'50 to 108044'20'' east longitude), it takes 860 km to the south from Hanoi, 865 km to the north from Ho Chi Minh City The administrative center of the province is Tam Ky City Quang Nam is famous for two world cultural heritages are Hoi An and My Son Factory is located in the industrial park - East Que Son in Que Cuong, Que Son district, Quang Nam province Project location is located next to Highway 1A, it takes about 40 Km to the west from Chu Lai airport and Ky Hay port Advantages of the project location: Page of 27 - Located close to the material area - Located near the building materials - Advantages in developing infrastructure a) Topography Project superficies is about hectares, the factory is located in the industrial park East Que Son, it’s terrain is quite flat, that located next to Highway It is convenient to transport product from the central to the South – North and input materials from other provinces b) Climate - weather Quang Nam is located in tropical climate, there are two seasons: rainy and dry seasons, Quang Nam is influenced by cold winter in the north The average temperature of 25.4 ° C, winter temperatures may plains below 20oC The average humidity in the air is at 84% The average rainfall is 2000-2500mm, but it distributed unevenly in time and space, mountain areas rain more than in plains, rainfall that is largest in the months of 9-12 accounting for 80% of the annual rainfall, the rainy season coincides the hurricane season, so the hurricane central often cause landslides, flash floods in the mountainous districts and caused flooding in the riverine areas c) Forest Resources Quang Nam Province has 425 921 hectares of forest, the coverage rate reached 40.9%; the provincial timber volume is about 30 million m3 The natural forests area is 388 803 ha, planted forests is 37 118 Rich forest in Quang Nam has about 10 thousand hectares, distributed in the high mountains, the remaining are mostly poor forests, average forest and forest regeneration, with timber volume of about 69 m3/ha The nature reserve is located in the province of Nam Giang Thanh River d) Land use status The project area is ha, lies in the Industrial Park - East Que Son Investors lease land for a period of 50 years The land is located next to other companies in this industry park Page of 27 where the focus so many workers The location of this area exudes value and untapped potential for economic efficiency when operating 1.2.2 Economic, social and cultural conditions of the projects Quang Nam province has much potential, location is next to Da Nang City where is one of the economic centers of the country Quang Nam has abundant labor force with more than 887.000 people (accounting 62% of the provincial population) Quang Nam economic grow quickly, during the period 1997-2011, Gross domestic product (GDP) has average growth of nearly 10.6%, especially in 2011 GDP rise to 12.2%, higher more than times in 1997 The economic structure has shifted towards increasing the share of industry and services (from 52% in 1997 to 79% in 2011); reducing agriculture's share (from 48% in 1997 to under 21% in 2011) Labor structure shifted towards positive, the employment rate that is primarily agricultural goes down from over 78% to below the 55%, non-agricultural workers account for more than 45 % of total employment Income increased over 10 times from 2.1 million in 1997 to nearly 22.5 million in 2011 Quang Nam province did not have any industrial parks, however recently Quang Nam has nine industrial parks with a total planned area of 4,390 hectares; 52 industrial clusters with an area of 1,400 hectares; the province has restored and developed 19 villages traditional, rural industries Up to now, over 5,300 domestic enterprises have registered and operated, the project attracted 81 foreign direct investment totaling more than $ 4.7 billion, promote economic restructuring and create strong growth step, solid, industrial production value increased by 23.6%/year Cultural - social in recent years also recognizes outstanding efforts and strong development in the field of culture and society - a factor to ensure sustainable development 1.2.3 Project evaluation: Regarding to basis analysis of the economic conditions, social, over natural conditions of region as well as the basis of legal documents related The invesment of construction project of pulp factory product can be feasibled The construction project factory is located in Que Son, Quang Nam Province The project area has been havest in accordance with the functions of a modern industrial, to ensure Page of 27 production standards as well as environmental issues for companies here to invest in production Project location is advantaged of all the aspect such as nearby resources, good traffic, ensures the production and operation of the factory Implementation strategies for urban development, creating specific patterns consistent with policy planning and public policy, contribute to the economic development of the region, particularly the province of the paper industry To planning and management of construction, economy development in sync with the overall development process of Quang Nam province At the same time the project will contribute to society, to the economy of the province an industry consumes a large amount of mangrove trees to plant adjoining districts of the province but also help farmers no longer worry the output auriculiformis plantations According to a survey of contrition recent years, the country's forestry is difficult Many farmers are deforestation by planting mangrove trees to encourage advocate of the province But recently the devaluation Melaleuca trees caused many hardships farmers, accompanied by incessant storms made them anxious lest the tree will fall So building factories for investors this is an urgent task should be done right and not just the interests of investors in mining projects but also help farmers improve their lives, step out of poverty Considering that in Quang Nam area but had some manufacturing pulp and paper, what worries or concerns about the product output acacia trees and eucalyptus trees have not been satisfactorily resolved, the prices the output is so low that farmers depressed, many families have broken many hectares of Acacia and Eucalyptus for planting cassava However, wood chips market in recent years many positive changes Our country is in the process of improving pulp production capacity to gradually eliminate imports and exports began in 2015 Currently, Vietnam is still trying to meet the domestic demand and thus still more opportunities is opening up in front of the producers as well as business in the future The favorable conditions for investment is in Vietnam, including the advantages of geography, political system and social stability, forest resources, water and abundant labor However, the risks and challenges coexist as slow administrative reform, corruption exists, poor infrastructure and strict regulations on environmental barriers to business in South Vietnam Besides Vietnam wood chip company is in the process of restructuring in order to develop sustainably Page of 27 Perhaps that is why the need to build a pulp factory in central is needed 1.3 Objectives and results of the project 1.3.1 Goals • The overall goal Develop manufacturing plants for the wood grain paper manufacturing industry Specific objectives - Bring economic benefits to investors: after the project is completed and put into operation to provide an income for the owner and staff of factory workers - Each year, the project needed a large mangrove tree leaves as inputs This contributes ideas and improves life for farmer’s plant neighboring districts - Create employment conditions for workers in Quang Nam province - To contribute to the socio-economic development of Quang Nam province especially the paper industry 1.3.2 Expected results of the project Operations wood chip production plant with a capacity of 3,504 tons/year Annual plants brought in some investors large profits in addition to creating jobs provide stable source of income for near 80 labors in the region 1.4 The size and capacity of the project Page of 27 Investment in construction of pulp mills in Eastern Industrial Zone Que paint To meet the increasing demands of the domestic paper market, and to address inputs of untapped investment properly, as we know the neighborhood and the industrial park adjacent Que Son district, such as Nong Son, Duy Xuyen, Bac Tra My, Thang Binh, Dai Loc…have planted many trees and Acacia auriculiformis To catch all the other advantages of the hotel location as well as the utility and brings valuable business and brand our company decided to invest in the construction of the plant above locations to fully exploit’s potential and inherent advantages 1.4.1 The model of portfolio construction Total construction area: 2ha With a total area above along with the ability to calculate and financial investors to invest in the following categories: THE CONSTRUCTION VOLUME OF THE PROJECT No Content Unit Amount Volume Total I The works Office construction m² 200 200 200 Wall construction 2,4 meters height m² 220.00 220 220 Workshop construction m² 1,000.00 1,000 1,000 m² 500.00 500 500 m² 700.00 700 700 m² 200.00 200 200 Construction of wastewater treatment ponds Build the void for wooden materials Build the ponds for chemical disposal Parking m² 200.00 200 200 The volume leveling m³ 1,600.00 1,600 1,600 3-phase power system HT 1.00 1 Page of 27 10 Truck 1.00 1 11 System grinder, chopped HT 1.00 1 12 Supply system, drainage HT 1.00 1 13 Fire protection system HT 1.00 1 1.4.2 The factory capacity The operating principle of the factory: The input material from Acacia trees and Melaleuca trees are first bought from local people Therefore, the average capacity of the factory per day is estimated about 36 tons fresh Acacia per 1ha of factory However, this capacity will be increased gradually in following years With 36 tons fresh acacia, the company collects about 12 tons of material powder which produces 12 tons of finished-product paper The process is below: Manufacturing Process from Acacia tree Pulp Cutting machine Agitator Wood chips Paper Machines Digester Paper excision The remaining material will be put into storage for preservation for the production of the next day Page of 27 The amount of water used to wash cleaning materials is put into the line to be monitored by the flow meter With such operating principles, we have driven operating capacity of the factory 12 tons / day which is equivalent to 3,504 tons / year 1.5 Product consumption market of the project In Quang Nam province today; even though, there were some manufacturing pulp and paper, the worries and concerns about the output for the products of acacia and eucalyptus trees have not been resolved because the prices of output products is so low that farmers are depressed, many households have destroyed many acres of Acacia and Eucalyptus to plant cassava The factory construction project is located in Dong Que Son industrial zone, Quang Nam Province Project location is convenient in many divisions such as nearby area materials, smooth traffic, which ensures the production process and operation of the factory Products of the factory in operation will meet the demand of paper in the province in particular and in the country in general 1.6 Progress of project implementation time Factory construction area has a large area, items and group of items have relatively large distances and the large construction area projects and construction plans for the project The building and installtion items are carried out at the same time, which will ensure to shorten construction time, reduce administrative costs, construction supervision, and other expenses and soon put construction to use and bring economic benefits General construction solutions includes: - Assemble construction : used for items as pretentious steel - Construction of monolithic : for items foundations , water tanks , equipment foundations , pile foundations , underground works - Construction Manual : for items gates , fences , yards , roads - Commissioning shall be carried out with all the equipment and machinery Page of 27 WORK ALLOCATION STRUCTURE TABLE Unit: 1.000 VND Subjects that No WBS Work name Time carry out Objectives Establish management 1.1 board T12/2013 Meeting all related 1.2 Investors division 2.1 Receive ground + 2.2 Clearance Management board 2.3 Surveying the construction design and T12/2013 Finding a plant model best suits Evaluation of design 2.4 approval Estimating for the entire project T12/2013 Management Selecting the most suitable board contractor with the lowest cost 4.1 Preparing bidding documents Page of 27 4.2 Bidding Selection of successful bidder 6.1 Material gathering Preparing plans T12/2013 6.2 against fire and explosion 7.1 Reinforcing foundations 7.2 Leveling earthworks Preparing the main 7.3 bearing structure T12 Building protective barrier 8.1 Complete schedule of items ensuring technical standards for construction at the site and the temporary house 8.2 9.1 Office Building T1/2014 T3/2014 9.2 Building workshops – Bidder 10.1 Making garden 10 10.2 Construction fencing and entrance T 3/2014 gates 10.3 Parking Construction of drainage system 11 Construction of treatment ponds Construction treatment 12 lake wastewater T2/2014T3/2014 chemical 12.1 Purchase of equipment 12.2 Installation of equipment T4/2014 Ensure timely and properly installed according to design Page 10 of 27 Based on the results of the project labour table, it is showed that the number of labor of workers needed for the project is 79 employees The investor has launched recruitment orientation, the number of employees above will be given priority in hiring locally first and then recruit in neighboring provinces in order to solve the employment problem in the province 1.7.2 Capital investment of projects a, Total capital investment: THE COSTS OF THE PROJECT (Unit: 1.000 dong) No Content Amount of money (before tax) VAT Cost of construction 3,389,000.00 338,900.00 Cost of equipment 6,559,000.00 0.00 Cost of investment advisory 644,724.73 64,472.47 Cost of project management 152,900.76 15,290.08 Other costs 182,178.77 18,217.88 Provision for expenses 1,186,780.43 43,688.04 TOTAL 12,114,584.68 480,568.47 Total investment 12,114,584.68 480,568.47 The following table sets cost we determine the total investment 12,114,585 thousand dong b) Funding methods: THE CAPITAL FOR PROJECT OPERATION Page 13 of 27 (Unit: 1.000 dong) No Content 12/2013 Quarter I/2004 Total Owner’s capital (40%) 1,928,573.94 2,917,259.93 4,845,834 2,892,860.91 4,375,889.89 7,268,751 4,821,434.86 7,293,149.82 12,114,585 Borrowings (12.5%/year) Total Method loans: the principal will be extended in constructing period, just to pay interest based on the term loans and the loan period Starting pay from the project in operation Repayment of principal and interest are calculated annually by the beginning balance c) The progress of Capital use: The Progress of Capital Use (Unit: 1.000 dong) No Content 12/2013 Quarter I/2014 Total Cost of construction 1,355,600.00 2,033,400.00 3,389,000 Cost of equipment 2,623,600.00 3,935,400.00 6,559,000 Cost of advisory Cost of management Other costs Provision for expenses Total investment project 257,889.89 386,834.84 644,725 45,870.23 107,030.53 152,901 63,762.57 118,416.20 182,179 474,712.17 712,068.26 1,186,780 4,821,434.86 7,293,149.82 12,114,584.68 Progress drawdown and repayment is presented in the following table: (Unit: 1.000 dong) Page 14 of 27 Year 2013 2014 December Quarter I Beginning Debt Borrowings during the period Repayment + Interest incurred 2,892,860.9 2,892,860.91 4,375,889.89 33,750 254,406 33,750 254,406 2,892,860.9 7,268,750.8 + Principal Ending Debt Funds: 40 % equity, 60 % debt The investors will increase the charter capital of the company and make arrangements with the commercial banks for medium term loans Currently, the average lending rate of commercial banks is about 14 % / year With added borrowed funds made up 60 % of capital investment projects, so investors need to be oriented for funds arrangement in order to not affect the project schedule This loan amount expected to be disbursed beginning of the month 12/2013 in the amount of one and the beginning of the month 2,892,860,910 1/2014 with the same amount of 4,375,889,890 During construction of the end of each quarter will pay all unpaid interest but not the principal source of revenue for the general interest of time the building is 288 156 000 Interest during construction is equal to the amount paid premium reserves or borrowing from banks When the project went into operation business, with revenues going to start paying principal Time quarterly repayment plan in years at an interest rate of 14% / year , payable quarterly amount includes interest and principal with equal amounts Through planned revenue and expenses and the interest on that debt repayment plan effective projects, capable of very high debt service, bringing huge profits for investors and partners effects such as banks Page 15 of 27 Chapter 2: EVALUATION THE PROJECT’S EFFECTIVENESS 2.1 Evaluation the financial effectiveness 2.1.1 Payback time Repayment plan proposed in this project is the plan to pay interest and principal annually from the start of project activities Repayment plan is shown in detail in the following table: (Unit: dong) The loan amount 7,268,750.81 thousand dong Borrowed time years Interest rate 14.0%/year Repayment schedule: Attachment Through calculating table shows quarterly investors have to pay the original funds for the borrowings is 363 438 000 and the payment of this amount will be paid in 20 next quarter and the investors will pay the interest with the original interest which was based on the balance of each quarter It is expected that the first quarter of 2019 the investors will repay for the bank in time So payback period of the project is years from the first quarter of 2013 to first quarter of 2019 2.1.2 Profit of the project: For the project’s operation, some expenses are needed such as: - Advertising expenses - Costs of electricity, water - Maintenance costs - Cost of insurance - Welfare costs, unemployment insurance, benefits, bonus - Cost of inputs Page 16 of 27 - The cost of land rent - Shipping costs - Chemical materials costs - The cost of stationery, phone - Other expenses Investor intends operation time of the project is 292 days / year Based on that we can collect the operational costs of the project are as follows: OPERATION COSTS OF THE PROJECT Unit: 1000 VND No Content Year 2014 Marketing cost (0,31,5%revenue) Cost of utilities Utilities cost per day Maintenance costs: 0.5% of assets value (excluding land cost) Insurance cost Benefits fund, unemployment insurance, bonus Raw material cost 2015 2016 2017 2018 83,76 142,93 155,06 17 6,884 19 2,432 328,50 511,00 552,36 59 7,870 64 7,997 1,5 00 1,7 50 1,8 92 2,048 2,219 45,43 60,57 63,60 6,782 0,121 9,08 12,11 12,72 3,356 4,024 581,92 775,90 814,70 85 5,435 89 8,207 5,190,30 8,073,80 8,727,39 9,44 10,23 Page 17 of 27 Raw material cost per day Lease expenses Transportation cost 6,346 8,347 23,7 00 27,6 50 29,8 88 2,351 5,063 0,000 0,000 1,971,00 3,066,00 3,314,20 3,58 7,220 3,88 7,980 21 29 29 292 292 9,0 00 10,5 00 11,3 50 2,285 3,315 raw 4,730,40 7,358,40 7,954,08 8,60 9,328 9,33 1,152 Chemical raw material cost per day 21,6 00 25,2 00 27,2 40 9,484 1,956 Operation days Cost per day Chemical material costs 10 Stationery 225,00 300,00 306,00 31 2,120 31 8,362 11 Other cost 1,184,88 1,624,05 1,752,01 1,89 6,427 2,05 1,090 14,350,29 21,924,78 23,652,13 25,60 1,768 27,68 9,712 Total • Revenue: With modern technological processes, advanced technology along with the utilization of raw materials available capital from the market operators and stable output Revenue includes the following items: Revenue from trampling: Page 18 of 27 - In 2014, investors are expected to produce paper, this year is the first year the project operate, so every day produces about tons of paper sold at 8,500,000VNĐ/ton Therefore revenue this year is about 16.7535 million thousand dollars - In the next years, the factory manufacture more plants and gold paper, so to produce paper about tons/day and sold 8,500,000 VND/ton in 2013, 2014 and 2015, in 2016 price is 8.925 million VND/ton Paper output will increase % in the next year Thus revenue in 2015 is 14.892 million, and the revenue next years will increase with the same volume and prices Revenue from the cutted paper: In 2015, factory began to produce cutted paper with capacity is 2.5 tons/date, unit price per ton of paper is approximately 10,200,000 VND Thus the revenue is about 7.446 billion in 2015 Revenue is calculated as follows: Revenue = Price x yield x number of operation days/ year Paper output hike 10% and unit price increased 5% in the next year in the cycle life is calculated Revenue from gold paper In 2015, factory began to produce cutted paper with capacity is tons/date, unit price per ton of paper is approximately 10,200,000 VND Thus the revenue is about 6.248.800.000 VND in 2015 Revenue is calculated as follows: Revenue = Price x yield x number of operation days/ year Paper output hike 10% and unit price increased 5% in the next year in the cycle life is calculated REVENUE OF THE PROJECT Unit: 1000 VNĐ No Content Revenue from Year 2013 2014 2015 2016 2017 16,753 14,892, 15,636, 17,239, 18,101, Page 19 of 27 trampling Output (ton) Price (VND/ton) 600 352 319 6.3 6.6 6.9 219 292 292 292 292 8,500 8, 500 8, 500 8, 925 8, 925 8,190, 600 9,460, 143 10,406, 157 Revenue from cutted paper - 7,446, 000 Output (ton) - 2.5 2.8 3.0 3.3 219 292 292 292 292 0,200 10, 200 10, 200 10, 710 10, 710 7,186, 120 8,677, 240 9,978, 826 quality Operation days Price (VND/ton) 000 quality Operation days ,500 Revenue from gold paper - 6,248, 800 Output (ton) - 2.0 2.3 2.6 3.0 219 292 292 292 292 Price (VND/ton) 0,700 10, 700 10, 700 11, 235 11, 235 Total 16,753 ,500 28,586, 800 31,013, 320 35,376, 734 38,486, 302 quality Operation days Based on revenue and operating costs of the project annual income can be estimated as follows: INCOME STATEMENT OF THE PROJECT Year 2013 2014 2015 2016 2017 Page 20 of 27 Revenue Cost Wage cost 16,753,500 14,350,299 28,586,800 21,924,785 3,112,054 31,013,320 35,376,734 38,486,302 23,652,139 25,601,76 27,689,712 4,149,405 4,149,40 4,149,405 965,322 4,149,405 Depreciation 723,992 965,322 965,322 965,32 Interest expense 725,058 788,659 585,134 381,609 178,084 1,661,319 4,278,63 5,503,779 415,330 1,069,65 1,375,945 1,245,990 3,208,97 4,127,834 Profit before tax (2,157,902) Tax (25%) Profit after tax 758,629 189,657 (2,157,902) 568,972 The factory operates in the second quarter in 2014, so capacity and costs have not been fully utilized In addition investors estimate inputs prise is higher than the market prise So in the first year the investor loss of 2.157902 billion However, this figure is estimated to prevent changes, operational risks in business But by 2015, profits from the operation of the plant is 758 629 000 Profit of the plant increases in the next year to see the project activities effectively 2.1.3 Net present value and internal rate return of the project Based on the results of cash flows in and out, we calculate the financial indicators, and the results showed: Net present value of project is: NPV = 17.286.968.000 dong >0 Internal rate of return of project is: IRR = 38% STATEMENT OF CASHFLOW Unit: 1000 dong Page 21 of 27 Year 2013 2014 2015 2016 2017 CASHFLOW IN 16,75 3,500 Revenue Bank loan 2,8 92,861 28,5 86,800 31,01 3,320 35,37 6,734 4,37 5,890 Liquidation value 28,586 ,800 31,013 ,320 35,376 ,734 Operating cost, 14,35 0,299 21,9 24,785 23,65 2,139 25,60 1,768 Salary expenses 3,11 2,054 4,1 49,405 4,14 9,405 4,14 9,405 Debt 33,750 2,06 9,777 2,2 42,410 2,03 8,885 1,83 5,360 4,85 5,185 26,825 ,279 28,316 ,599 29,840 ,429 31,586 ,533 (1,9 62,324) (5,69 5,889) 27 0,201 1,17 2,891 3,79 0,202 18 9,657 41 5,330 98 3,234 3,37 4,872 TOTAL INFLOWS 2,89 2,861 21,129 ,390 4,8 21,435 7,29 3,150 CASHFLOW OUT Capital cost Total outflows Net cashflow before tax Corporate Income Tax (CIT) Net cashflow after tax (1,9 62,324) (5,69 5,889) 27 0,201 Discount rate Page 22 of 27 1.00 0.87 0.76 0.66 0.57 Present net cashflow (1,9 62,324) (4,95 2,947) 20 4,311 64 6,492 1,92 9,594 Present accrued value (1,9 62,324) (6,91 5,271) (6,7 10,961) (6,06 4,468) (4,13 4,874) NPV 17,28 6,968 IRR 38% Review: Through the planning, analyzing and calculating process, the results of the project are as follows: No Target Outcomes The total investment excluding VAT 10% (1.000 dong) 12,114,585 Present net value NPV (1.000 dong) 17,286,968 Internal Return Rate IRR (%) Return time (year) 38% Total Table shows that project brings high returns for investors over the initial capital investment spending 2.2 Evaluation of socioeconomic efficiency of the project 2.2.1 Economic efficiency Project of wood chip factory construction has many positive impacts to the socioeconomic development of the province Contributing to the development and growth of the Quang Nam’s economy in general and Que Son district in particular State and local have budget revenues from VAT, corporate income tax Creating jobs for workers and income for the investors; 2.2.2 Social efficiency Page 23 of 27 Not only potential in terms of economic sector, but also great value to the social sector When the project is put into operation, consuming a large amount of acacia, acacia trees, and create secure to the plant output of mountain farmers In recent years, agricultural economic has faced difficulties due to weather, natural disasters, floods making life of farmers miserable Nothing from crops to harvest, many farmers are not eligible to live Since the policy of the state of the acacia trees come, the people life here help less miserable However, the efforts of the farmers have not been satisfactory for the price paid to buy fresh acacia Thus launch of project is a solution to this problem In addition, the project will contribute greatly to the State budget and solve a large highly qualified and skilled as well as unqualified workforce for Quang Nam Province 2.3 Evaluation of project impact on environment The project goes into operation generating a large volume of solid and gas, liquid wastes, dust and noise that impact on the environment inevitably The solution given by investors is:  Reduction of waste Accurately estimate the volume of materials for construction, reducing excess unsold after construction Selecting appropriate gathering place for materials at the end of the wind direction and on high ground to avoid damage and loss when not in use Proposed measures to minimize dust and waste water generated during the construction process Regularly check, periodic maintenance of work items to promptly prevent and remedy the problems that may occur  Collection and treatment of waste: In this project, the collection and treatment of waste should be done from the establishment to operation and dismantling process to avoid affecting the operation of the station and surrounding environment area Page 24 of 27 CONCLUSION Through analysis, evaluation and calculation of technical and economic indicators that show the project brings more efficiency Project after months in operation contributed resolving jobs for 80 employees in the region, bringing a steady profit for investors Especially project solves the concerns of worried farmers, helping them improve their lives In addition, the project contributes greatly to the State budget The market is huge demand for chip wood, reducing imports and pushing exports and is a trend and strategy of our country in this sector Hence the birth of the project is consistent with the general situation of the society, especially in the matter of Quang Nam to promote industrialization and modernization of the province Moreover, the project goes into operation solving employment, generating income for many people Suggest authorities to help facilitate investors to project be early built and operated! Page 25 of 27 APPENDIX TOTAL TABLE OF RETURN TIME OF THE PROJECT 2014 Year II Beginning debt 2015 III IV 7,268,750.8 6,905,313.3 I II 6,541,875.7 6,178,438.2 5,815,000.6 Pay debt: 617,844 605,124 592,403 579,683 566,963 + Arising interest 254,406 241,686 228,966 216,245 203,525 + Principal 363,438 363,438 363,438 363,438 363,438 6,905,313.3 6,541,875 6,178,438.2 5,815,000.6 5,451,563.1 Ending debt Year Beginning debt 2015 III 2016 IV I II III IV 5,451,563.1 5,088,126 4,724,688 4,361,250 3,997,813 3,634,375 Pay debt: 554,242 541,522 528,802 516,081 503,361 490,641 +Arising interest 190,805 178,084 165,364 152,644 139,923 127,203 + Principal 363,438 363,438 363,438 363,438 363,438 363,438 5,088,125.6 4,724,688 4,361,250 3,997,813 3,634,375 3,270,938 Ending debt Year 2017 I II 2018 III IV I II Page 26 of 27 Beginning debt 3,270,938 2,907,500 2,544,063 2,180,625 1,817,188 1,453,750 Pay debt: 477,920 465,200 452,480 439,759 427,039 414,319 +Arising interest 114,483 101,763 89,042 76,322 63,602 50,881 + Principal 363,438 363,438 363,438 363,438 363,438 363,438 2,907,500 2,544,063 2,180,625 1,817,188 1,453,750 1,090,313 Ending debt Year Beginning debt 2018 III 2019 IV I 1,090,313 726,875 363,438 Pay debt: 401,598 388,878 376,158 +Arising interest 38,161 25,441 12,720 + Principal 363,438 363,438 363,438 Ending debt 726,875 363,438 Page 27 of 27 ... harvest, many farmers are not eligible to live Since the policy of the state of the acacia trees come, the people life here help less miserable However, the efforts of the farmers have not been... the plant increases in the next year to see the project activities effectively 2.1.3 Net present value and internal rate return of the project Based on the results of cash flows in and out, we... includes interest and principal with equal amounts Through planned revenue and expenses and the interest on that debt repayment plan effective projects, capable of very high debt service, bringing