International Business Course Management EH_UNIVERSITY Lecturer : iss Duong Ngoc Hon COLLEGE OF ECONOMICS Class ye paRTMENT OFINTERNATIONAL BUSINESS — Group : 3 MARKETING UEH UNIVERSITY Final Essay Topic: Simulating the decisions that you might be asked to make in a multinational or global corporation. It is intended to give you first-hand experience in identifying a market opportunity and developing a market entry 2. DEPARTMENT OF INTERNATIONAL BUSINESS — MARKETING Final Essay UEH UNIVERSITY Course : International Business Management. Project name : Vinpearl Siem Reap - A Vingroup’s Raal-actata inveactmant in Ho Chi Minh city, October 10° 2023.
Group Members: Too long to read on your phone? Save to read later on Conte Your computer I. h Save to a Studylist 2. Vision, Misions & Core valueg. HT tư nớ con nh 2 3.
on HT ưng 3 3.-s sọ TH ng 4 3. Industrials and Technology 6 4. Real estate and Services 6 4. 4Q2022 and FY2022 Financial Overview.
Income statement highlights 7 II. General COUNtIY In(ÌÌCAÝOS. Market potential we 13 2. High rental Yields 13 2.
Stabilised Polotical Environment and Favorable Legal Framework 14 2. Urbanization and Growing Middle Class 16 3. Barriers to entry 17 3. Seasonality in Tourism 17 3.
Local Licensing requirements 21 III. The global strateg: Localization 22 1. Explanation for the company’s choosing Localization strategy. Local/ Cost pressure 23 1.
Applying Localization Strategy to Vingroup’s Real Estate Investment in Cambodia-Vinpearl 29 2. Mode of entry 30 3. Suggestions to improve global in the marketing 34 3. Recommendation and Implementation 39 1.
Guidelines for the Implementation Plan 42 2. Long-term investment 42 2. Implementation plan 42 Reference Il. *Vingroup Joint Stock Company (Vingroup JSC): The company was founded by property developer and entrepreneur Pham Nhat Vuong in Ukraine in 1993 as Technocom and was originally producing food products.
Vision, Missions & Core values. “Vingroup aims to develop into a leading Technology — Industry — Services group in the region. “To Create a Better Life For People” 2. “Credibility - Integrity - Creativity - Speed - Quality - Humanity” 3.
VinGroup is a conglomerate that operates in various fields, including real estate, hospitality, retail, healthcare, education, and automobile manufacturing. VinGroup's real estate arm, Vinhomes, is one of the largest real estate K== ee = K> developers in Vietnam. It specializes in high-end apartments, villas, and urban areas. Vinhomes has completed multiple projects in major cities, including Hanoi, He Chi Minh City, and Da Nang.
Vinpearl is VinGroup's hospitality brand, which owns and operates luxury hotels and resorts throughout Vietnam. Its properties include Vinpearl Resort & Spa, Vinpearl Convention Center, and Vinpearl Discovery. VinCommerce is VinGroup's retail arm, which owns and operates VinMart supermarkets and VinMart+ convenience stores. As of September 2020, * 3,001 2,888 2018 2019 September 2020* @ VinMan+ @ VinMart @ Additional Information Show source @ there were 2,524 VinMart+ convenience stores and 122 VinMart supermarkets under VinCommerce's operation in Vietnam.
In addition to Vinmec International Hospital, Vingroup also operates Vinfa pharmacies, a network of healthcare facilities offering a wide range of medical services. VinUni is VinGroup's education brand, which collaborates with renowned international universities to offer high-quality education programs in various fields, such as business, engineering, and healthcare. VinUni's campus is located in Hanoi. 10 On the other hand, Vinschool education institution offers programs from pre-school to high school level with a focus on cultivating critical thinking, creativity, collaboration, and communication skills among students.
Vingroup owns VinFast, a subsidiary that produces automobiles, electric motorcycles, and electric bicycles. HH The company also operates VinBus, a public transportation system in Vietnam's major cities. Industrials and Technology. Cars: around 24000 vehicles were purchased, of which 7400 were electrical vehicles.
E-motorcycles: 5 brand new models with LFP batteries were successfully launched, achieving 60000 vehicles sold and +36% YoY. Operation: 110 showrooms were globally opened, including in the U., Germany, France, and Canada. 120 digitization projects were completed. Marketing: 11 global auto shows were attended; organized 4 Vietnam Elite Tours.
Real estate and Services. Vinhomes: net profit after tax obtained 97% initial target (VND 29.0 trillion vs VND 30. Vincom Retail: Outperformed FY2022 Plan. FY2022 leasing revenue and net income achieved VND 6.8 trillion and VND 2.3 million room nights were sold, principally attributed to the Year-over-Year recovery in Phu Quoc, Nha Trang, Dang Nang, and Quang Nam.
4Q2022 and FY2022 Financial Overview. 4Q2022 402021 YoY(%) FY2022 FY2021 YoY (%) VND Total revenue 42,5 38.3 Á 11% 130,5 1287 Al% trillion Recurin, VND so 12 I7 À2% 46.2 À1% revenue trllion VND EBITDA ; 9.8 0,3 A39x 46,8 27,8 A68% trllon 12 Pro-forma VND 10 71 A41% 48,4 41,1 A 18% EBITDA trillion VND Profit after tax 1 0,4 -9,3 A 104% 2 -7,6 A 126% trillion EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization. Income statement highlights. Income Statement Highlights Revenue! Gross Profit! EBITDA! 54 Profi it Before Tax VND billion VND billion VND billion VND billion 5.0% 2 9 VÀNG 1H2023 42022 — 1H202 á0,2 35,204 3646 = 139 21,638 0 0: 021 }; +2 14202 2020 202 2022 42022 1H2023 2020 202 2022 42022 1H2023 ) Gross profit margin %) EBITDA margin Up to 2023, the portion of Vingroup’s revenue was around 102,528 billion VND (26,919 billion VND recurring revenue and 75,608 billion VND property sales).
With a profit before tax at around 7,936 billion VND, Vingroup is compared to a Vietnamese chaebol. General country indicators. Agriculture remains the main source of income for many Cambodians, but the economy of Cambodia is heavily dependent on tourism revenues and garment exports. Cambodia is one of the poorest countries in Asia, however thanks to this, Cambodia’s economy grew at an average annual rate of 7.7 percent between 1998 and 2019, making it one of the fastest-growing economies in the world.
Over the two decades before COVID-19 struck in 2020, Cambodia blossomed economically. Having reached lower middle-income status in 2015, it set its sights on attaining upper middle-income status by 2030. Cambodia’s economy continued to recover in 2022, especially in the services sector which is driven largely by pent-up consumer demand. GDP in Cambodia is expected to reach 31.88 USD Billion by the end of 2023, according to Trading Economics global macro models and analysts’ expectations.COM ORLD BANK ( Regarding real estate: - Most of the new condo projects are overpriced, yet shophouse apartments are incredible deals in certain areas.
- Phnom Penh is also one of the few capitals in the world where you can purchase property for below US$1,000 per square meter. Our strong belief is that property values in Cambodia will only increase from here. Culture Cambodian culture is conservative and hierarchical, and Theravada Buddhism is practiced by 95% of the population. Followers adhere to the concept of collectivism — the idea that the family, neighborhood and society are more important than the wishes of the individual — and as in many Asian cultures the sense of ‘face’ is also considered paramount.
A Khmer-style shophouse is easy to identify and is one of the most common property types in Phnom Penh, often built up into three or four-story low-rise row homes. 15 This type of apartment can be found in nearly every Phnom Penh neighborhood. A Khmer-style shophouse is generally four meters wide by 16 meters long. The entrance is typically in the front or back of the apartment and the walls on either side have no windows.
Bedrooms don’t commonly have windows, and if they do, they will face the interior of the home, not outside. Bedrooms usually will not have closets and instead have movable dressers or rattan shelving. The kitchen in a Khmer-style shophouse is normally very basic: a sink, two or one- burner gas cooktop, sink, and often lacking cabinet storage. Bathrooms are also basic with no separate shower, floor-to-ceiling tiles, and no windows.
Other home furnishings will also be sparse and be either rattan or wood. In terms of furnishings, you can expect chairs or a loveseat, a coffee table, and a table for eating. Social The average monthly income of Cambodian people is around $200. The poverty rate in Cambodia has decreased from 47.
The average monthly expenditure of a Cambodian household is around $200. The largest expenditure for Cambodian households is food, which accounts for 50% of their total expenditure.4, Political perspective 16 On October 15th 2021, the Government of Cambodia adopted a new Law on Investment that aims to boost foreign investment. The new law will replace the Law on Investment of 1993, as revised in 2003. The new Law aims to create an open and transparent legal framework for investment, as well as to attract and promote quality, efficient and effective investment tailored to support socio-economic development.
Investment incentives: establishing an investment incentive regime that is transparent, predictable, non-discriminatory, competitive, and supportive of socio-economic policies. Incentives are offered in 19 sectors, including high-tech industries involving innovation or research and development, notably through a mechanism of tax-related basic incentives, additional incentives and special incentives; KHỮNK INVESTMENT '[nTe.U-e14 Investor guarantees: a set of protective measures are granted by the law to investors and their assets, including non-discrimination, guarantees against nationalization and arbitrary expropriation, free transfer of funds, intellectual property protection etc. Investment procedures: the new law revises and improves administrative procedures for applying for registration of qualified investment projects (SEC) , a basic introduction to some technical aspects addressed in the law, such as registering and transferring an Investment project. L7 The government of Cambodia has been making concerted efforts to draw in international capital for the real estate industry.
By upgrading domestic sectors and defending investor rights, Cambodia unveiled a new investment legislation in late 2021, hoping to make the nation more appealing to overseas investors. A number of incentives are available under the new law, including incentives for customs duties and income tax exemptions. The law also reinforces the nation’s prior investment guarantees and safeguards for foreign investors, including the outlawing of foreign exchange controls and discrimination against foreign investors, the protection of intellectual property, and the assurance of protection against price-fixing, nationalization, or unjust expropriation by the government. Affordability: 18 One of the main advantages of investing in Cambodian real estate is its affordability.
Prices are relatively lower compared to neighboring countries like Thailand. Cambodia: Square metre peices. premier city centre. Singapore EG 315,251 : nón TT 35 Japan s10.724 Taiwan 87,112 China GY s<.922 Thailand QR $2,952 High Potential Philippines J $3,084 Cambodia QM 2,912 Indonesia QJ $2,766 Malaysia QJ 52.616 Bars chart of Average square meter prices in US$ of 120-sq.
apartments located in the center of the most important city of each country. (Source: Global Property Guide) The average price for an apartment in Siem Reap in 2022 1s between USD 68,000 and USD 163,000, and the average rental is around USD 400 to USD 450 per month. This makes it an attractive destination for those looking for good value for their investment in Cambodia. High rental Yields: The "rental yield" or “yield” of a property tells you how much money you are likely to earn on your investment each year.
It is calculated by expressing the annual rental income earned from a property as divided by how much the property costs. Cambodia boasts competitive rental yields, which are often higher than those in more developed markets. “The property market is seeing growing interest from overseas buyers looking for a bargain and strong returns. Average rental yields are some of the best in Asia, exceeding 5% in cities like Phnom Penh and Siem Reap.” as Matt Lavin, Director at Benoit Properties International said.
19 Rental Yields in Asia (Global Property Guide) Among countries in Asia, Cambodia has one of the best rental yields for investors, amounting to an average of 5.33% GRY as reported by Global Property Guide. In Phnom Penh alone with that GRY, the average buying price for properties is at $349,560 with a standard of $1,553 rent per month. Since Cambodia’s economy is expected to grow to 7.