Clm | Course Paper

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HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM DEPARTMENT

———–oOo———-

INVESTMENTS AND PORTFOLIO

REPORT OF VINH HOAN COMPANY

AND DAT XANH GROUP

Tutor :

Pham Thi My Phuong

Subject :

IPM

Tut :

6

Student :

Bùi Lê Hà Vi

1504040106

Nguyễn Quỳnh Châu

1504000007

Đỗ Hoàng Việt

1504000108

Vũ Hoài Giang

1504040032

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September 27th , 2018

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Table of Contents

I. Industry analysis ……………………………………………………………………………………………………………………….. 4

1. Seafood processing and exporting industry …………………………………………………………………………… 4

1.1 Bargaining power of suppliers ………………………………………………………………………………………….. 4

1.2 Bargaining power of buyers ……………………………………………………………………………………………… 4

1.3 Threat of substitute products (moderate) ………………………………………………………………………….. 4

1.4 Threat of new entrants ……………………………………………………………………………………………………. 4

1.5 Intensity of rivalry among competitors………………………………………………………………………………. 5

2. Real estate industry ……………………………………………………………………………………………………………… 5

2.2 Weaknesses……………………………………………………………………………………………………………………. 5

2.3. Opportunities ………………………………………………………………………………………………………………... 6

2.4. Threats …………………………………………………………………………………………………………………………. 6

II, Company selection and justification: ………………………………………………………………………………………….. 6

1. DXG …………………………………………………………………………………………………………………………………… 6

2. VHC …………………………………………………………………………………………………………………………………….. 8

III. Portfolio formation …………………………………………………………………………………………………………………. 9

IV. Investment report and summary of Profit or Loss …………………………………………………………………….. 11

V. Conclusion and comments on experience gained ……………………………………………………………………… 12

REFERENCE AND APPENDIX ………………………………………………………………………………………………………… 14

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I. Industry analysis

1. Seafood processing and exporting industry

1.1 Bargaining power of suppliers

In processed aquatic products for export, raw material costs account for 20-30% of the cost of

the product. Therefore, the pressure from the input supplier is moderate for the seafood

processing and exporting enterprises. In spite of the fact that the raw material area is

concentrated, the link between the farmers is very low. This causes the price of aquaculture is

unstable and most of businesses are price pressure. However, due to the shortage of raw

materials, farming households have been pressured to increase raw material prices when

enterprises immediately need materials to meet the demand from customers.

Hence, it can be concluded that the bargaining power of suppliers in Vietnamese seafood

processing and exporting is moderate.

1.2 Bargaining power of buyers

Looking at the downward trend of export of pangasius, shrimp, it can partly show the power of

buyers. EU, USA, and Japan are the key markets, accounting for the majority of export share of

Vietnam seafood enterprises. The fact that these three fastidious markets account for a high share

of the export structure makes Vietnamese firms highly dependent on import policies in these

markets. Vietnamese enterprises always have to adjust the process of raising and processing

products to keep up with the standards of products imported by the importing countries.

It can be concluded that the bargaining of buyers is high.

1.3 Threat of substitute products (moderate)

1.4 Threat of new entrants

Analyzing new competitors is critical to every firm because they can threaten the market share of

the firm by providing additional production capacity. In terms of absolute cost advantages, with

the seafood processing and exporting industry, the investment for standard machines and

processing lines is quite high. However, if they do not continue trading seafood, these devices

cannot be used in any other business. In addition, costs such as bank interest rates, taxes, and

salaries increase.

Regarding economies of scale, most of the companies in the industry, especially large ones, have

a stable or stable market share. These large companies have the advantage over the market share,

fixed costs, production lines. In addition, new entrants will receive the trust of their foreign

clients. This is the food sector, so the customers will have certain loyalty with the prestigious

brand certified for food hygiene and safety.

The above analysis shows that barriers of entry are high. Therefore, the threat of entry from

potential opponents is low.

1.5 Intensity of rivalry among competitors

Enterprises in mutual sector are interdependent. A company‘s actions often involve the response

of other companies. In addition to state-owned enterprises, private seafood processing and

exporting enterprises have thrived in recent years. Some businesses have export turnover of

nearly $ 100 per year.

The level of competition in the market is relatively high.

2. Real estate industry

2.1. Strengths

– Tourism developing leads in the development of properties as well.

According to Mr. Nguyen Tran Nam, Chairman of the Vietnam National Real Estate