• Student’s Name:

• Student’s ID:
Bar Business Project • Class:
• Subject: Cost – Benefit Analysis
DANBAM

- 2021 -
 SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
-------***-------

DESCRIPTION OF BAR BUSINESS PROJECT

DANBAM

Place: Hai Ba Trung, Ha Noi, Viet Nam

Investor: Vingroup Joint Stock Company

Hanoi, October 2021

Contents
Part A: General Introduction .................................................................................................................... 3
I. Investor introduction ......................................................................................................................... 3
II. Brief description of the project ......................................................................................................... 3
III. Legal basis .................................................................................................................................... 3
Part B: Overview......................................................................................................................................... 4
Chapter I: Market Research. ................................................................................................................. 4
I. Macroeconomic............................................................................................................................. 4
II. General information about the project .......................................................................................... 6
III. SWOT strategy analysis ............................................................................................................ 9
Chapter II: Project Location ............................................................................................................... 10
I. Project geographical location ...................................................................................................... 10
III. General comment .................................................................................................................... 10
Part C: Danbam ........................................................................................................................................ 11
Chapter I: A profitable project............................................................................................................ 11
I. Objectives of the project ............................................................................................................. 11
II. Necessity of investment .............................................................................................................. 11
III. Investment project implementation time. ................................................................................ 11
IV. Investment funds. .................................................................................................................... 12
Chapter II: Basic design planning solution ........................................................................................ 13
I. Project grading determination ..................................................................................................... 13
II. Technical scale determination ..................................................................................................... 13
III. Services determination ............................................................................................................ 13
IV. Basic business requirements ................................................................................................... 13
V. Planning solution ........................................................................................................................ 14
Chapter III: Marketing strategy development ................................................................................... 18
I. Product ........................................................................................................................................ 18
II. Pricing ......................................................................................................................................... 19
III. Staff ......................................................................................................................................... 20
Chapter IV: Environmental impact assessment................................................................................. 22
I. Legal basis .................................................................................................................................. 22
II. Purpose of the environmental impact assessment report ............................................................ 22

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 III. Environmental impact of the project ....................................................................................... 22
IV. Measures to minimize adverse impacts, prevent and respond to environmental incidents ..... 24
V. Commitment to take measures to protect the environment ......................................................... 24
Chapter V: Management apparatus and personnel organization .................................................... 25
I. Management apparatus diagram ................................................................................................. 25
II. Human resources needs............................................................................................................... 25
Chapter VI: Total project investment ................................................................................................. 26
I. Purpose of setting up total investment ........................................................................................ 26
II. Basis for making total investment ............................................................................................... 26
III. Content .................................................................................................................................... 27
IV. Result of total investment ....................................................................................................... 28
Chapter VII: Investment capital of the project.................................................................................. 29
I. Investment capital of the project ................................................................................................. 29
II. Calculating the cost of the project............................................................................................... 32
Chapter VIII: Economic - financial efficiency ................................................................................... 34
I. Economic assumptions and calculations ..................................................................................... 34
II. Project revenue............................................................................................................................ 34
III. Cash flow statement ................................................................................................................ 36
IV. Evaluation of socio-economic efficiency ................................................................................ 37
Part D: Conclusion.................................................................................................................................... 38

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 Part A: General Introduction
I. Investor introduction
• Company name: Vingroup Joint Stock Company
• Enterprise identification number: 0101245486
• Dated: 3rd May, 2002
• Issued by: Hanoi Department of Planning and Investment
• Authorized capital: 34,447,690,560,000 Dong
• Company headquarters: Vinhomes Riverside ecological urban area, Viet Hung
ward, Long Bien district, Hanoi
• Phone: (84 24) 3974 9999 Fax: (84 24) 3974 8888
• Business sectors: Real estate business (Main)
• Legal representative: Nguyen Viet Quang
• Position: Vice Chairman of the Board of Directors

II. Brief description of the project

1. Preliminary information
• Project Name: Danbam Le Théâtre
• Investment location: Hai Ba Trung, Ha Noi, Viet Nam
• Investment form: Economic organization establishment
2. Bar information
• Type: Bar (Foreign alcohol club)
• Attachment service: Café, Fastfood, Non-alcoholic drinks
• Usable are: 86.85 m2
• Construction area: 173.7 m2 (Including 2 storeys)

III. Legal basis

• Danbam Le Théâtre
- Decree 103/2009/ND-CP promulgating the Regulation on cultural activities and
business in public cultural services.
- Directive 17/2005/CT-TTg dated May 25, 2005 of the Prime Minister on the
rectification of negative activities in bars, karaoke restaurants and discos.
- Ensure security and order conditions specified in Article 4 of Decree
08/2001/ND-CP dated February 22, 2001 of the Government stipulating security
and order conditions for a number of branches, conditional business.

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 Part B: Overview
Chapter I: Market Research.
I. Macroeconomic
1. Demographic environment
There is a significant increase in the number of young people studying and working in big
cities.
The number of students from "Bach-Kinh-Xay" area is climbing rapidly.
➔ High demand of Food and Beverage brands surround the area

2. Ecological environment
Due to the essence of the business, waste count can be insignificant, therefore not many
environmental issues are directly correlated with the operation of Danbam.

3. Economic environment
• The Vietnamese economy has been hit hard by the ongoing COVID-19 pandemic
but has shown remarkable resilience.
The pandemic hit Vietnam’s economy hard where GDP fell to 3.8 % in the first quarter of
2020 as compared to 6.8 % in the same period the previous year.
Nevertheless, Vietnam fought the pandemic early by timely solutions and policies. Despite
the pandemic, the Asian Development Bank (ADB) has forecast a 2.3 % growth for
Vietnam for 2020, with the economy set to bounce back to 6.1 % in 2021, provided the
pandemic is contained.
• The food and beverage market are stable:
The food and beverage market has great potential for development despite the difficulties
caused by the COVID-19 pandemic, according to experts. The growth rate of this market
is forecasted to reach from 5-6% annually in 2020-2025.

4. Political environment
• Food and Beverages Restriction in Vietnam

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Depending on their categories, Food and Beverages are controlled and regulated by 3
separate ministries in Vietnam: Ministry of Industry and Trade (MOIT), Ministry of Health
(MOH), and Ministry of Agriculture and Rural Development (MARD).
Through this product registration, business owners will get a Certificate of Conformity
Declaration (CCD). Then, they can import their food and beverages to the Vietnamese
market for sales and distribution.
• Safety and Hygiene of Food and Beverage Product in Vietnam
Businesses of Food and Beverage products must obtain the Certificate on Satisfaction of
Standards on food hygiene and safety.
The safety and hygiene standards apply to many things. They include processors,
equipment, importers, workshops or stores, production premises, storage and warehouse,
sales and distribution premises.

5. Socio-cultural environment
• Social financial perspective
The majority of students occupying the Bach-Kinh-Xay area are under limited financial
supply.
➔ Lavish, ‘high-ended’ pubs and bars are not typically considered as an option.
Consequently, there is an unsatisfied demand for average-priced, ‘middle-end’ alcoholic
services among the youth.
• Rising cultural trends
The socio-cultural environment of younger generations, which possesses a major
proportion of the Bach-Kinh-Xay area, is experiencing waves of influences from foreign
sources through social media.
➔ Tendency to be open-minded and drawn towards foreign socio-cultural oriented
features, and alcoholic beverages are among them.
Consequently, a sense of attraction towards such businesses can be found as alcoholic
beverages are increasingly becoming more appealing for younger generations.

6. Technological environment
Densely consist of youthful, interactive and technologically engaged inhabitants, the Bach-
Kinh-Xay area and its social and business activities are deeply influenced by the virtual
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social platforms. Thus, implementing technology into doing business is essential for
Danbam.
• International influences
International influences play a crucial role in defining trends and tendencies of the market,
and forecasting trends is a key element of business success.
For the market segment of alcoholic beverages, this action is critically more important, as
the business is essentially imported from foreign cultures.
• Closing customer-supplier gaps
With the influence of technology, the concept of marketing has forever changed. Thus,
businesses have the ability reach out to potential target customers with great extends.
For Danbam, as the target customers of the business are mostly students of the Bach-Kinh-
Xay, which are heavily influenced by social media for their decisions, taking advantage of
virtual platforms to reach and affect customers plays an essential role in marketing.

II. General information about the project

1. About Danbam
Today, when the economy is growing, and people's quality of living is improving
increasingly, people' s need is not only for food, clothes and shelter, but also for leisure.
Experiencing the 4th long outbreak of the epidemic with many events, Vietnam finally
overcame and continued to rise to develop. Seizing this ripe opportunity, it makes perfect
sense to start a bar business when the government's economic stimulus policies are
supporting the entertainment industry.
Danbam is a franchisor of Korean bars and became popular since the movie called “Itaewon
Class”. Danbam is being planned to bring this brand into Vietnam, particularly in the Bach-
Kinh-Xay area. It will probably be the first bar in this area, which serves popular alcoholic
drinks for students.
2. Market segmentation
• Segmentation
The first customer segment that the project targets is students ranging from 18 to 24 years
old in BKX universitys area with low budgets and the second customer segment is the
middle and upper-class people, adults from 25 – 50 years old with high incomes.
The products of the bar which will be served are low-price alcoholic drink brands such as
Soju, Strongbow. They are alcoholic drinks which are suitable for students to enjoy and
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hang out with friends. The Danbam also serves cocktails, mixed shots of strong wines such
as Whiskey, Rum, Tequila, Cognac.
• Trends and behaviours
According to Forbes, the speed of alcohol consumption in Vietnam in 2017 ranks first in
the world. On average, each Vietnamese consumes nearly 9 liters of alcohol per year.
On a reseach of bar market, the bars operate individually and do not have much interaction
on social networks, so maybe this is an opportunity for Danbam to develop.
- Vietnamese young people increasingly prefer the open-minded lifestyles from
Korean and Western countries → Demand for nightlife entertaiments has
increased dramatically in recent years.
- Three – fourth of young people feel interested in a pub with a youthful, Korean
space. This is a good sign for Danbam because of the good impression the
Korean-style pub has given youngster through the movies.
- There are also many reasons for young people for using services: relieve stress,
enjoy the cuisine, meet friends or new people or they simply want to hangouts.

3. Competitors
Data shows that there are up to 184 bars/ pubs in Ha Noi and 110 of them are in Hoan
Kiem. However, only 3 pubs and 4 bars are in Hai Ba Trung district. Some of them can be
mentioned such as Gold - Wine & Cigar Lounge, Tierra Wine Bar, Airport Exclusive Club,
Klub One Club - Lo Duc, La Lune Rooftop, Climax Garden Beer - Tran Hung Dao.

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(Some of the direct rivals that Danbam has to compare)
Because the bars/pubs operate independently from each other, it is very important to know
where the bars are located. In the BKX area, there are no pubs. Those are mentioned above
is far away 5km from the Bach – Kinh – Xay area. Therefore, the project can use the
advantage of location and price to compete with competitors in the same industry.

4. Possible risks and solutions

- Cash price and area: In Vietnam, finding a large business premises is not easy.
Therefore, renting a cheap space and suitable area is the first decisive factor for
successful business. However, because in the center of downtown, the price for
leasing is normally high to extremely high. Hence, the project needs to analyse
carefully in order to not being frauded by the landlord.
- Human resources: The staff at the bar needs to be in large numbers. Employees
need to be able to work with enthusiasm, dedication and proficiency because of
a high-pressure working environment. The audience at the bar is often quite
diverse and complex, so the staff needs to be able to handle situations quickly.
Because the bar environment is complicated with different types of people, the
manager should train the employees carefully in case of bad situation happens,
the bar can get rid of unworthy risk.
- Customer - shop owner relationship: Bar club is not a simple market, people who
don't usually want to open can open it, apply for a license to sell alcohol, smoke
shisha, are regularly inspected, confiscate assets, take inventory. The
relationship of the shop owner is an important factor that directly affects the
business interests. The owner is the inspirational person, transmits strength and
faith to the staff, so they need to be the one who can withstand any bad situations.
The fact that the owner himself has great power, will automatically attract a
number of enthusiastic employees who dedicate themselves to the shop. Also,
the manager not only deals with relationships in the bar, but also needs to build
relationships outside.

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 III. SWOT strategy analysis
SWOT
Opportunities
+ Infrastructure & Location
Advantages: Few
competitors, take advantage
of position to compete.
+ Number of Inhabitants
Advantages: Large amount
of potential customers.
+ Novelty Drink
Advantages: New product
for beverage market;
Changing in beverage trend;
Lifestyle changing.
Threats
+ PEST Problems: Policy
problem; Pandemic effects;
Incapability of taking
advantage on 4.0 technology
+ Competitiveness:
Popularity issue.
Competitive rate is high;
Cost problem.
Strengths
+ Locational advantage: Eases in
physically reaching, become
noticeable by, and stimulating
willingness of potential customers.
+ Price advantage: Suitable and
appealing to the majority of students
- potential customers who are
financially budgeted.
+ Brand’s identity: Promotes
attractiveness and relatability in
marketing activities, while still
creating a sense of distinction among
other competitors.
S – O Strategy
+ Choose a convenient location
+ Beautifully designed shop luxury,
luxury.
+ Establish credibility, offer
promotions,
New special promotion to attract
customers.
+ Diversify products
+ Keep the restaurant clean
+ Improve product quality
+ Continue to build and staff training
customer satisfaction staff row
S – T Strategy
+ Absorb the strengths and avoid the
limitations of the opponent.
+ Continue to create your own style,
attract customers, satisfy customers'
needs, build a familiar customer
system
+ Train service staff in a separate and
professional manner to meet the
increasing demands of customers
row.
Weaknesses
+ Lack of experiences: First
franchisee in Vietnam →
Difficult to access the market,
source of goods and
customers like competitors.
+ Start – up: Staff in the first
phase must assume many
positions → Cannot fully
focus on their work
W – O Strategy
+ Developing training for
marketing department.
+ Gain experience and gain
experience.
+ Expand target market,
attract new customers, retain
old customers, create demand
for potential customers.
W – T Strategy
+ Market penetration by
advertising strategies such as
promotions, gift giving.
+ Get customers' opinions
about the product as well as
the service of the staff to
improve it better
+ Sourcing more and more
quality products.
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 Chapter II: Project Location
I. Project geographical location
As expected, Danbam will be located in Tran Dai Nghia Street, Hai Ba Trung, Ha Noi.
This would be an ideal place for business.
As one of the province in the center of the capital, it gathers all the essentials to attract
customers.
Hai Ba Trung district is located
in the center of Hanoi city, has
a geographical position: the
East borders Long Bien district
with the boundary of the Red
River. The West borders Dong
Da district with Le Duan and
Giai Phong streets. To the
southwest, it borders Thanh
Xuan district with Giai Phong
and Vong streets.
II. Status of usage of the land
Around Bach - Kinh - Xay
region, Tran Dai Nghia street
and Hai Ba Trung district, there
are several plots available for
sale.

III. General comment

Through the analysis of factors, the company found that the natural conditions and
technical infrastructure in Hai Ba Trung area in general and Bach - Kinh - Xay in
particular not only do not affect the process of creating a service base as well as
exploitation and use but also very convenient including factors of favorable
geographical location and modern infrastructure.

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 Part C: Danbam
Chapter I: A profitable project
I. Objectives of the project
• Directional purpose:
- It will be an entertainment rendezvous for young people in the inner city of
Hanoi.
- Contributing to local socio-economic development.
- Contributing to the budget revenue an amount from profit.
- Providing jobs for needed citizens as well as students.

II. Necessity of investment

Entertainment in bar in the modern times is now becoming trend of the youth in Viet Nam.
For production and service establishments, investment activities are a part of production
and business activities in order to add new material and technical foundations, maintain the
operation of existing technical and material bases, and therefore, it is a condition for
enterprises to develop production, business and services after the pandemic.
• Benefits of bar:
- Bring high economic efficiency to the owner.
- Customers can hang out with friends.
- Gather people together.
- Consumer benefit.

• Social benefits:
Currently, in big cities, there are many different types of entertainment, in which bars are
a fairly specific type of entertainment, contributing to the harmony between the working
and leisure areas. Therefore, people in the capital can increase the quality of urban life.

III. Investment project implementation time.

The project will be implemented in 12 months from the fourth quarter of 2021 to the end
of September 2022, then the bar will be put into business.

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Danbam bar construction roadmap:
2021 2022
Category 10 11 12 1 2 3 4 5 6 7 8 9
I Investment’s prepation
Information gathering,
surveying and evaluation
Prepare pre-feasibility
assessment report
Prepare a feasibility report
Looking for capital and strategic
partners to cooperate
Finalization and approval of
technical legislation related to
the project
II Project implementation
1 Equipment line
Equipment come to the bar
Equipment installation and
testing
2 Bar’s construction
Construction and Decoration
3 Human resource training
Recruitment
Training
4 Marketing
Marketing about the bar
Action plan

IV. Investment funds.

The project is implemented from the capital called for by the investor vingroup and money
borrowed from the bank. In addition, the project will also find other sources of
support/mobilization inbound and from foreigners.

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 Chapter II: Basic design planning solution
I. Project grading determination
- Based on Article 24 Decree 103/2009/ND-CP about bar and disco business;
- Based on the reasoning about the competitive advantage and profitability of the
bar area;
- Based on the capacity of the investor - Vingroup Joint Stock Company;
- Based on the trend of the bar entertainment market in Hanoi;
With the above bases, Vingroup Joint Stock Company decides to build Danbam bar
according to state standards.

II. Technical scale determination

Danbam Bar is built on a total area of 173.7 m2 including 1 ground floor and 1 floor with
a scale of 86.85 m2 each floor.

III. Services determination

The bar will provide international quality lighting system to create a cozy atmosphere for
customers. Accompanying the quality lighting system is an electric sound system that
brings a sense of relaxation when customers use the services at the bar.
The bar will have an area for the bartender and there is the main bar. Customers can choose
nearby seats to enjoy drinks as well as watch musical performances invited by elite singers.
The bar serves a light menu and impressive drinks.
The bar offers a 100-inch screen TV and free Wi-Fi internet access throughout the bar.
The bar provides a system of safety equipment such as:
- Automatic fire alarm and extinguishing system.
- Advanced camera system against illegal acts.

IV. Basic business requirements

1. Overall requirements
- All areas in the business area must be designed to be easy to clean.
- The business bar must have an appropriate location, with a construction area
large enough to ensure favorable production activities. Each area must be
arranged reasonably to avoid clutter or other defects that may adversely affect
service quality.
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 - Kitchen material storage area must be ventilated and clean for easy cleaning and
in accordance with food hygiene and safety standards.
- Restrooms must be well ventilated.

2. When designing the bar layout, the following issues must be considered:
- The bar area must be arranged reasonably to create a highlight for the bar as well
as create a spacious and airy space to have more area to serve customers.
- Avoid placing too many tables and chairs in the business area, causing loss of
aesthetics and space for the bar.
- The toilet area should always be cleaned to avoid contamination.
- Drainage areas such as drains need to be cleaned regularly to avoid clogging.
Where necessary, a suitable waste drainage system should be designed for ease
of cleaning.
- The service area must be provided with adequate lighting and sound.

3. Pantry and bar equipment storage area.

- Pantry and bar equipment storage areas must be spaced, properly lit, arranged
and equipped to allow the storage of stored products to be organized and limit
the fragility of wine bottles.
- It is necessary to ensure regular inspection and management of special storage
conditions such as temperature, humidity and security issues to avoid
unnecessary loss.
- The arrangement of bottles must be reasonable (eg distinguishing different
labels) to avoid confusion when serving.

V. Planning solution
Danbam bar is based on many existing planning projects, investment projects, specialized
plans and related strategic orientations and calculation criteria.
1. Lighting system solutions
When designing and building the bar, two-layer hollow red bricks will be used, between
the two walls can be blank or insert foam. This is a relatively effective and economical
soundproofing solution.
The main power source is from a 3-phase 4-wire 220/380 VAC, 50Hz power supply from
the low-voltage power supply system of the national grid.

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Light system only requires enough power for the aptomat. Therefore, the bar can
completely use the civil electrical system without the need to upgrade the higher-pressure
load system.

2. Sound system solutions

The speaker system for Danbam needs to be suitable, just right, not too loud, causing waste,
wrong style orientation as well as disturbing the surrounding houses.
Including:
- Amply of famous brands JAGUAR, NANOMAX, ARIANG, CALIFORNIA, OBT,
BOSE, ...
- Wall or ceiling speakers of big brands such as BOSE, BMB, JBL, OBT...
- Potentiometer for convenience to adjust volume, mute/unmute sound.
- Sound power covers the entire room space. No noise, turn up loud does not affect
the speaker.
- Built-in bluetooth, USB, smartphone plug.
- Three knobs to adjust bass, treble, volume separately.

3. Drainage solutions
• Wastewater source:
- Surface water: includes rainwater, water from the roof, water for watering plants
- Domestic wastewater: From the bar
• Solution plan:
- Domestic wastewater: Due to the location of the project located in the city center,
there is a centralized wastewater treatment system available in the city, so gray
wastewater will be directly connected to the city's wastewater collection system,
black wastewater will be concentrated in the septic tank before being put into the
city's wastewater collection system.
- Surface water: This part includes rainwater collection mouths from floors, rainwater
drainage pipes in the garden, rainwater collection pipes and connection to the city's
stormwater drainage system.

4. Fire protection solutions

• Fire prevention
Fire protection plans are established on the basis of current standards of the State.

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This is a residential and public building, so the production grade of the building is grade C
(TCVN 2622-1995).
The structure is mainly made of reinforced concrete, so the general fire resistance level of
the work to apply the calculation is level II and III.
- Water fire fighting system
Internal water-walled fire-fighting pipe system with water supply pipe system to fire-
fighting cabinets, fire-fighting cabinets containing hose reels and canvas hose reels. Hose
reel has a diameter (25mm, 30m long, 10m thick water pressure spray. The canvas roll has
diameter (50mm, 30m long, 10m dense water pressure spray. Number of throats and water
flow rate). each throat is designed according to the above standards. The location of
installation of fire hydrants will be appropriately designed so that the travel distance from
any place inside to the nearest fire hydrant does not exceed 30 m.
- Automatic fire alarm system
A fire alarm unit with push button and protective glass (Break Glass Units) and a fire alarm
bell (Fire Alarm Bell) will be placed next to each fire hydrant inside the house and the most
visible place of the escape doors.
Smoke and heat detectors will be designed and installed in all business areas to ensure the
fastest signal acquisition.
A 4.5 kg capacity fire extinguisher suitable for Class A, B and C fires will be installed.

• Lightning protection
Arrange and install lightning protection systems at high points and evenly distributed in
the area to prevent fire and explosion caused by lightning in a reasonable and effective
manner.
Using a lightning discharge system with early discharge lightning rods
The location of the lightning rod will be arranged at the appropriate and highest position
of the building so as to provide a protection area that covers the entire construction site.
The grounding system has a low impedance, this grounding system is equipotentially
linked with the grounding system of the building.
- Fully automatic, maintenance-free equipment.
- Simple grounding can be connected to an existing grounding system.
- The lightning protection grounding system must reach R<10 ohm.

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 5. Air conditioning solutions
- Fresh air ventilation system: It helps to make the air airier and more comfortable;
molds will not have an environment to multiply and grow.
- Low noise, high durability: Ventilation systems supplying fresh air, exhausting
exhaust gases usually have the lowest noise level so as not to affect people working,
working and studying. Air conditioners are designed with high durability and stable
operation for a long time.
- At least 10% of the air circulation in the room
- Minimum 20m3/h/person
- Fresh air supply line: Use fans and air channels to supply fresh air into the air-
conditioned space.
- Exhaust air intake line: Use fans and air ducts to suck exhaust air from the air-
conditioned space to the outside.
- Air conditioner capacity 12000 Btu.

6. Hygiene solution
Take measures to ensure hygiene requirements in the following areas:
- Environmental sanitation, landscape around the bar.
- Sanitize areas in the bar.
- Sanitize equipment and customer service tools.
- Food Hygiene.

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 Chapter III: Marketing strategy development
I. Product
Danbam's target customers are students and people with high incomes.
Therefore, these are 2 different customer groups, so the bar must have an
extensive menu. At the same time, Danbam's products must also be tasty.

To ensure the first and most basic requirement: ensure the quality of drinks and
food here.

About beverage, Danbam provides customers a delicious menu with several

drinks that they can try:

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About food, customers when choosing Danbam as destination to hangout can try the
traditional Korean street food:

II. Pricing
Table reservation price is
calculated in 2 ways: Book a table
in advance for a fixed fee or use
more than 4 drinks to get a free
table reservation. Prices are in
Vietnamese Dong, plus 10%
VAT. Since the target customers
are students and high-middle-
income people, the fees are very
affordable for students as well as
lower than competitors.
Danbam's pricing strategy is
mainly based on cost and location
when using the service. Danbam's
drinks are divided according to
the fees to be paid. That is also the
basis for Danbam to launch a
cost-based pricing strategy. In
addition, Danbam will apply a
reservation strategy to attract
customers.

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 III. Staff
1. Developing employee-customer relationships
The biggest difference: Danbam's hospitality: Hospitality is a characteristic and a beautiful
culture of Vietnamese people. Danbam will exploit this to add to its service quite radically.
Why is it called "Danbam's hospitality"? If in other places the concept of service is
thoughtful and dedicated, here Danbam also feels the enthusiasm and 'joy' of the service
staff and the manager. Smiles will always appear on the faces of Danbam's waiters.
2. Management Department
The management department will include the best people to be able to manage the bar and
staff thoroughly. If possible, the bar will recruit a well-trained manager from the investor
Vingroup to take over.
3. Bartender Department
The bartender department will be basically devided into 2 parts:
- Chief bartender
- Bartenders
Chief bartender is the position responsible for managing the bartending area, coordinating
the work of the Bartenders / Baristas - ensuring the best service quality.
The bartender runs the restaurant's bar area. They make drinks for customers at the bar and
prepare requested drinks for the wait staff.
4. Waiters Department
The waiters will take requests to order drinks from guests and do some other work such as
cleaning tables and chairs, charging guests or checking information to make sure that
customers are old enough to use alcohol.
5. Janitor Department
The cleaning staff at the bar is responsible for keeping the bar clean so that customers
always feel clean when entering the bar.
6. Cashier Department
The cashier department has to be good at payment skills in order to make it quick for
customers so that they do not feel uncomfortable.
7. Security Department

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The security department is also one of a very important part of the bar, because they have
to control the bad situation in case some customers are trying to do something harmful to
the others.
8. Staff recruitment and training
• Skill
- Good communication skills, know how to express problems clearly and coherently.
- Able to respond well, skillfully handle complaints and grievances of guests, find the
best solutions for arising problems.
- Ability to organize work.
- Acquire computational skills.
- Office computer skills.
- The ability to remember details.

• Knowledge
- Requires knowledge of the job applied for, proficiency in English, and other
knowledge requirements.
- Ability to communicate with customers and sales skills.
- Maintain industry standards and regulations.
- Mastering the rules and regulations of the bar management.
- Understand some rules on diplomacy, etiquette, customs, and guest psychology.

• Personality traits
- Honest
- Dynamic, agile, resourceful and flexible in handling situations.
- Diligent and meticulous with a process-oriented working style, with high accuracy
and efficiency.
- Open and hospitable, cordial, polite, respectful and ready to help guests.
- Enthusiastic in work and know how to convince customers.
- Teamwork in work, always ready to support and help the staff in the department
- Always on time, accurate and sensitive to the requirements of customers of different
backgrounds

• Physical and appearance requirements

- Well condition of health.
- Well-proportioned appearance (no deformity, no infectious disease).
- Good-looking, charming form.
- Have good communication skills.
21 | P a g e
 Chapter IV: Environmental impact assessment
I. Legal basis
Environmental protection to ensure sustainable socio-economic development has been paid
special attention by the Party and State, especially in cities that are cultural, political and
economic centers of the country.
- The Law on Environmental Protection was passed by the National Assembly and
the President signed a decree promulgating the law on January 10, 1994.
- Decree 175/ND-CP of the Government guiding the implementation of the law on
environmental protection
- Decision 290/QD-MTG dated December 21, 1996, announcing 97 mandatory
standards for environmental protection in Vietnam.

II. Purpose of the environmental impact assessment report

The environment includes natural factors and man-made factors that are closely related to
each other and occur regularly around humans, it affects human life, material, production,
existence, development of human and nature.
The Danbam bar business project can have an impact on the surrounding environment even
in the stage of building the bar and going into production and business.
The environmental impact assessment for this project aims to achieve the following
purposes:
- Firstly: Fully identify the negative impacts of the project on the environment from
the construction and decoration stage to the business stage.
- Secondly: Research and propose measures and solutions to overcome the limitations
and promote the positive aspects of the project.

III. Environmental impact of the project

1. Construction phase
The main sources of pollution during construction and project construction can be
summarized as follows:
• Solid waste:
- Generated from the following sources: redundant materials, scattered, daily-life
waste of construction workers such as: cement, roofing sheet, iron nails, steel wire,

22 | P a g e
 saw blade, packaging, plastic box , equipment containers, broken bricks, lime and
domestic waste such as plastic bags, waste paper of workers.
• Dust:
- Incurred due to the process of transporting raw materials, construction materials,
steel structures, equipment to the project area and internally
- Due to loading and unloading, mixing concrete materials (sand, stone, cement)
when constructing, dismantling, digging and embanking underground works.
The main dust components are rock dust, sand dust, cement dust, smoke dust.
• Noise:
- Arising from means of transport in and out, supply of construction materials and
equipment.
- From construction activities, including construction equipment operations such as
construction worker activities.
• Toxic gas vapors
- Generated from exhaust gases of internal combustion engines of transport vehicles
and motorized construction vehicles such as: CO, CO2, NO2, SO2, gasoline vapor.
- From the process of decomposing organic substances in the domestic waste of
construction workers.
• Wastewater
- During the construction phase, water supplied for construction activities is mainly
used for mixing mortar and concrete. Wastewater of this stage includes water for
washing sand, stone, curing concrete... and domestic wastewater of construction
workers

2. Operation phase
Waste sources generated during the operation of the project include: domestic waste of
employees and customers, overflowing rain water, domestic wastewater, production
wastewater, dust generated from the process. traffic of vehicles in and out of the project
area, emissions generated from wastewater treatment systems, sewers.
3. Forecasting environmental risks and incidents
• Environmental risks and incidents during project construction
Environmental risks and incidents that may arise during project construction:
- Labor accidents arise due to carelessness, due to inadequate equipment of labor
protection of workers.

23 | P a g e
 • Environmental risks and incidents during project operation
The type of risks and incidents occurring in the project scope can be very diverse, including
risks and incidents of fire and explosion, local environmental pollution in the project area,
etc. Incidents of this type, when they occur without timely handling solutions, will cause
very serious consequences, affecting the project's assets, health as well as human life.
4. Subjects and scale affected
For both phases: construction and operation of the project:
- Affected objects are the soil, water, air environment, human health, a number of
businesses, services and households around the area, landscape, environment,
socioeconomics and some other impacts.
- The affected scale is within the project area, households around the project area.
- The equipment installation, bar construction and decoration period are only in 3
months, which is quite short at time, therefore the time each component of the living
environment and public health is affected is short. In addition, the affected scale
also has households along Tran Dai Nghia road transporting raw materials and
materials.

IV. Measures to minimize adverse impacts, prevent and respond to environmental

incidents
1. Construction phase
- Reduce air pollution.
- Reduce wastewater pollution.
- Safety in construction and protection of construction works.
- Ensuring security and order in the region.
2. Operation phase
- Reduce pollution caused by exhaust gas.
- Wastewater treatment solutions.
- Medical solutions and food hygiene and safety.
- Solutions to prevent fire and environmental incidents.

V. Commitment to take measures to protect the environment

Vingroup Company, the investor of the project - Danbam Bar is committed to coordinating
and directing the project (during the construction phase), the Project Management Board
(when the project comes into operation) strictly implements it environmental protection
solutions mentioned in the report as well as general regulations on environmental
protection related to the project implementation and implementation process.

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 Chapter V: Management apparatus and personnel
organization
I. Management apparatus diagram

II. Human resources needs

The employees will be devided as follow:
Position Direct Staffs
Manager 1
Waiter 3
Chef 2
Janitor 2
Bartender 2
Security 2
Cashier 1
Total 13

To prepare for this project to go into operation, the company will assemble a team of
personnel to manage and operate the bar to go into business.
The maximum number of employees is 13 employees, including all departments.
In addition, the cost of recruitment, training and training is about 300,000 VND/ person/
year.

25 | P a g e
 Chapter VI: Total project investment
I. Purpose of setting up total investment
The purpose of the total investment is to calculate the entire investment cost of building
the Danbam bar project, as a basis for planning and managing investment capital,
determining the investment efficiency of the project.

II. Basis for making total investment

The total investment for the project "Bars" is made based on the project's scale - capacity
plans and the following bases:
- Law on corporate income tax of the 12th National Assembly, 3rd session, No.
14/2008/QH12 June 3, 2008;
- Decree No. 12/2009/ND-CP dated February 12, 2009 of the Government on the
management of investment and construction projects;
- Decree No. 209/2004/ND-CP dated December 16, 2004 of the Government on
quality management of construction works and Decree No. 49/2008/ND-CP dated
April 18, 2008 of the Government on the amendment and supplement of a number
of articles of Decree 2009/2004/ND-CP;
- Decree No. 99/2007/ND-CP dated June 13, 2009 of the Government on
management of construction investment costs;
- Decree No. 123/2008/ND-CP dated December 8, 2008 of the Government detailing
the implementation of the Law on Value Added Tax;
- Decree No. 148/2004/ND-CP dated July 23, 2004 amending and supplementing
Clause 1, Article 7 of Decree No. 158/2003/ND-CP;
- Circular No. 05/2007/TT-BXD dated May 27, 2007 of the Ministry of Construction
on “Guiding the formulation and management of construction investment project
costs”;
- Circular No. 129/2008/TT-BTC dated December 26, 2008 guiding the
implementation of Decree No. 123/2008/ND-CP;
- Circular 130/2008/TT-BTT dated December 26, 2008 guiding the implementation
of a number of articles of the Law on Corporate Income Tax.
- Circular No. 02/2007/TT-BXD dated 14/2/2007. To guide a number of contents on:
formulation, appraisal and approval of work construction investment projects;
construction permits and organization of management of construction investment
projects;
- Circular 33-2007-TT/BTC of the Ministry of Finance dated April 9, 2007 guiding
the final settlement of completed projects funded by the state capital;

26 | P a g e
 - Circular 203/2009/TT-BTC of the Ministry of Finance dated October 20, 2010
guiding the regime of management, use and depreciation of fixed assets;
- Cost norms for project management and construction investment consultancy
attached to Decision No. 957/QD-BXD dated September 29, 2009 of the Ministry
of Construction;
- Other documents of the State related to the preparation of the total investment, total
cost estimate and work cost estimate.

III. Content
Total investment of the project: 3,532,100,000 VND (Three billion, five hudred, thirty two
million and one hundred thousand VND). Total investment includes: cost of premises, cost
of site repair, cost of equipment procurement.
• Cost of premises: 90,000,000 VND for 2 quarters (6 months from April to
September) with 15,000,000 VND each month.
• Cost of repair, renovation, interior decoration and facade: 1,675,000,000 VND
including:
Unit: 1000 VND
Category Price
Facade decoration 200,000
Interior 150,000
Installation of electricity and water supply systems 125,000
Installing the Set Free- Hitachi central air conditioning system 200,000
Lighting system 60,000
Sound system 70,000
Cost of buying tables and chairs (12 sets of tables and chairs * 10 million 120,000
VND/set)
Cash register 10,000
Seamless management computer + management software 20,000
Dark glass decoration 50,000
Orchestra 5,000
Uniform 6,000
Camera system 15,000
Fire protection system 50,000
Total 1,081,000

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 • Cost of purchasing equipment for business: 210,000,000 VND including:
Unit: 1000 VND
Category Price
Kitchen equipment system (FAGOR- Spain) including stove, hood, 160,000
dishwasher, dish dryer
Mixing equipment (grinders, presses, wine openers, shakers, glasses, 15,000
mixing bowls)
Wine glasses of all kinds 15,000
Dishes 10,000
Washing and drying machine 10,000
Total 210,000

• Electricity, water and other necessary costs

Total fees of necessary things in the pre-business phase would be calculated approximately
30,000,000 VND, which is 10,000,000 VND each month in 3 months
• Preservation fee
Fee reserve equals 10% of all expenses related to the pre-business stage in accordance with
Circular No. 05/2007/TT - BXD dated 25/07/2007 of the Ministry of Construction on the
"Guidelines for preparation and cost management of construction investment projects".

IV. Result of total investment

The total investment of the project before tax includes:
- Fixed capital: Cost of buying premises, cost of repairing and renovating premises,
cost of equipment for business.
Unit: 1000 VND
Category Price
1. Cost of premises 90,000
2. Premises repair costs 1,081,000
3. Equipment costs 210,000
4. Electricity, water and other necessary costs 30,000
5. Preservation fee (10% of all the others) 321,100
Total 1,732,100

28 | P a g e
 Chapter VII: Investment capital of the project
I. Investment capital of the project
1. Capital structure and investment capital allocation
Unit: 1000 VND
Expense item Money before tax VAT (10%) Money after tax
Cost of premises 90,000 9,000 99,000
Premises repair costs 1,081,000 108,100 1,189,100
Equipment costs 210,000 21,000 231,000
Electricity, water and 30,000 3,000 33,000
other necessary costs
Preservation fee 321,100 32,110 353,210
Total 1,732,100 173,210 1,905,310
Total Investment 1,905,310

2. Progress of using capital

Unit: 1000 VND
Expense item 2nd quarter of 2022 3rd quarter of 2022 Total
Cost of premises 49,500 49,500 99,000
Premises repair costs 594,550 594,550 1,189,100
Equipment costs 231,000 - 231,000
Electricity, water and 16,500 16,500 33,000
other necessary costs
Preservation fee 176,605 176,605 353,210
1,068,155 837,155 1,905,310

3. Capital source for project implementation

Unit: 1000 VND

Time 2nd quarter 3rd quarter Percent Total

Category 2022 2022
Equity 314,077.5 198,577.5 27% 512,655
Bank loans 754,077.5 638,577.5 73% 1,392,655
1,068,155 837,155 100% 1,905,310

With a total investment of 1,905,310,000 VND

29 | P a g e
In which, the investor invests 27% of the total investment, equivalent to the amount of
512,655,000 VND. In addition, the company intends to borrow 73% of the total investment
capital from the bank, which means the total amount to be borrowed is 1,392,655,000VND.
This loan is expected to be borrowed for a period of 6 quarters with the expected interest
rate at the current general interest rate of 23%/year, or 5.75%/quarter.
Borrowing method: The principal is graced in the pre-business period, only paying
interest according to the outstanding balance at the beginning of the period and loan capital
in the period. Debt repayment starts from the time the project comes into operation. Pay
the principal on a monthly basis and interest is calculated based on the outstanding balance
at the beginning of the period.
The loan withdrawal and repayment schedule is as follows:
Year 2022
Quarter II III
Debts at the beginning of the 754,077,500
period
Borrowing during the period 754,077,500 638,577,500
Pay: 43,359,456.25 80,077,662
- Interest Exense 43,359,456.25 80,077,662
- Original debt 0 0
End-of-term debt 754,077,500 1,392,655,000

This loan is expected to be disbursed several times at the beginning of each quarter, with a
total amount of VND 1,392,655,000. During the renovation period and equipment
installation, at the end of each quarter, the whole loan interest will be paid but not the
principal because there is no revenue source with the total loan interest during the
construction period is 123,437,118.3 VND. Interest during the construction period is paid
with the reserve amount or from a bank loan.
When the project goes into business, there is a source of income that will begin to pay the
principal. The repayment period by quarter is estimated in the next 1 year at an interest rate
of 23%/year, the amount to be paid each quarter includes loan interest and principal in
equal amounts.
Through planning the sources of revenue, expenses and loan interest according to the debt
repayment plan, the project has shown that the project operates efficiently, has a very high
ability to repay debt on time, and brings great profits to investors and cooperation partners
like banks.
4. Loan repayment plan and interest expense

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The loan repayment plan proposed in this project is the plan to pay the interest and principal
every year from the beginning of the project operation. The loan repayment plan is shown
in detail in the following table:
Loan ratio 73% Total investment
Loan amount 1,392,655,000 VND
Term of a loan 6 Quarter
Grace 2 Quarter
Interest Rate 5.75% Quarter
Repayment term 4 Quarter

• Repayment schedule:
Year 2022
Quarter II III
Debts at the beginning of the 754,077,500
period
Borrowing during the period 754,077,500 638,577,500
Pay: 43,359,456.25 80,077,662
- Interest Exense 43,359,456.25 80,077,662
- Original debt 0 0
End-of-term debt 754,077,500 1,392,655,000

Year 2022 2023

Quarter IV I II III
Debts at the
beginning of the 1,392,655,000 1,044,491,250 696,327,500 348,163,750
period
Borrowing during
- - - -
the period
Pay: 428,241,413 408,221,997 388,202,581 368,183,166
- Interest
80,077,663 60,058,247 40,038,831 20,019,416
Exense
- Original
348,163,750 348,163,750 348,163,750 348,163,750
debt
End-of-term debt 1,044,491,250 696,327,500 348,163,750 0

Quarterly, the investor must pay the principal for the loan amount of VND 348,163,750
and this amount is paid in 4 consecutive quarters. The amount of loan interest the investor
will pay together with the principal is based on the outstanding balance at the beginning of

31 | P a g e
each quarter. It is expected that by the third quarter of 2023, the investor will repay the loan
on time to the bank.

II. Calculating the cost of the project

1. Staff and manager costs
Annual personnel costs include salaries of managers and employees and the costs of social
insurance, health insurance and other allowances. Each year, this cost is estimated at an
average of 178,200,000 VND quarterly, with an increase of about 4%/year. Salary details
are as follows:
No. Position Number Salary/ Total Cost of Total Cost of
of staffs month monthly social quarterly social
salary insurance salary insurance
and and health
health insurance
insurance (quarter)
(month)
1 Manager 1 10,000,000 10,000,000 2,000,000 30,000,000 6,000,000
2 Waiter 3 3,000,000 9,000,000 1,800,000 27,000,000 5,400,000
3 Chef 2 4,000,000 8,000,000 1,600,000 24,000,000 4,800,000
4 Janitor 2 3,000,000 6,000,000 1,200,000 18,000,000 3,600,000
5 Bartender 2 4,000,000 8,000,000 1,600,000 24,000,000 4,800,000
6 Security 2 2,500,000 5,000,000 1,000,000 15,000,000 3,000,000
7 Cashier 1 3,500,000 3,500,000 700,000 10,500,000 2,100,000
Total 148,500,000 29,700,000

2. Operating expense
• Cost of electricity, water, wifi
The cost of electricity, water, and wifi for the bar's activities is estimated at 3.5% of
revenue.
• Advertising cost
In order for the project to operate effectively, businesses deduct an income for advertising
and marketing, accounting for about 3% of revenue/year.
• Leasing cost
The rent for the bar is 15,000,000 VND/month. Therefore, the one-quarter rent will be
45,000,000 VND

32 | P a g e
 • Maintenance costs
In order for machinery and equipment to work well and be durable over time, the investor
deducts about 0.5% of the value of machinery and equipment for maintenance. In 2023,
spending about 10,455,000 VND, which is 2,611,250 VND quarterly. Assume this cost
increases by 4% per year, which equals 1%/ quarter
• Cost of good sold
Table (Assume the amount served for each day with 100% capacity and the COGS equals
30% of the price):
Category Unit Amount COGS (VND) Total Cost
Beer (Average) Bottle 15 12,500 225,000
Wine (Average) Bottle 8 36,500 401,500
Cocktail (Average) Shot 14 45,000 900,000
Other (Average) Shot 13 42,500 637,500
Food (Average) Dish 20 35,000 770,000
Total 2,934,000

Annual COGS = COGS (Daily estimated) x Number of operating days in a year

• Other expense
This cost accounts for 5% of all costs from the project

Summary table of project operating costs

Quarter
Category 1 2 3 4
Cost of electricity,
19,887,840 22,597,558 25,359,482 25,613,077
water, wifi
Advertising 17,046,720 19,369,336 21,736,699 21,954,066
Leasing cost 45,000,000 45,000,000 45,000,000 45,000,000
Maintenance costs 2,611,250 2,637,363 2,663,736 2,690,373
Cost of good sold 170,467,200 193,693,356 217,366,988 219,540,658
Other expense 12,750,651 14,164,881 15,606,345 15,739,909
Total 267,763,661 297,462,494 327,733,250 330,538,083

33 | P a g e
 Chapter VIII: Economic - financial efficiency
I. Economic assumptions and calculations
The above assumed parameters are used to calculate the economic efficiency of the project
based on the calculation of the implemented projects, documents related to the selling price,
documents provided from the investor, specifically as follows:
- The operation period of the project is about 8 years and will come into operation
from the fourth quarter of 2022.
- 50% equity, 50% loan.
- The project's revenue includes sales of beverages and foods.
- Operating expenses include: Advertising costs; electricity; water; maintenance
costs; cost rent; employee salary; cost of raw material; other costs.
- Depreciation cost of fixed assets: Applying the straight-line method of depreciation,
the depreciation period will be calculated depending on the forecast period of capital
recovery. In the calculation, the depreciation period is applied according to the
attached appendix.
- Loan interest rate for local currency is temporarily calculated: 23%/year. Debt
repayment period 6 quarters, 1 year 4 times both principal and interest; grace period
for non-payment of principal in the first 2 quarters.
- The corporate income tax rate of the project is 25%.

II. Project revenue

Operating capacity: The fourth quarter of 2022 is 80%; The first and second quarters of
2023 are 90% and from the third quarter of 2023 onwards, 100%.
Quarterly revenue = Unit price x Quantity sold/day x Number of operating days in a quarter
Category Amount Price Days in quarter Revenue
Beer 15 42,000 90 56,700,000
Wine 8 122,000 90 87,840,000
Cocktail 14 150,000 90 189,000,000
Other 13 142,000 90 166,140,000
Food 20 117,000 90 210,600,000
Total 710,280,000

34 | P a g e
Summary of the project's revenue over the quarters (Suppose the price for each of the
category will increase 1%/ quarter):
2022 2023
Year IV I II III
Revenue 568,224,000 645,644,520 724,556,628 731,802,194
Operating
267,763,661 297,462,494 327,733,250 330,538,083
Expesne
Labor costs 178,200,000 179,982,000 181,781,820 183,599,638
Depreciation 65,343,750 65,343,750 65,343,750 65,343,750
Interest Expense 80,077,663 60,058,247 40,038,831 20,019,416
Earning before
-23,161,074 42,798,029 109,658,977 132,301,307
tax
Corporate
income tax 0 10,699,507 27,414,744 33,075,327
(25%)
Net profit after
-23,161,074 32,098,522 82,244,233 99,225,980
tax

In the fourth quarter of 2022, during the market exploration phase, the project only operated
at 80% capacity, so the capacity and costs were not fully utilized, the investor lost
23,161,074 VND. This loss is offset by the provision for fees included in the total
investment. The project brings profit from the first quarter of 2023 with VND 32,098,522.
The profit of the project has increased gradually over the years, each quarter the investor
earns a profit of over 80 million VND.
Through the income statement, it can be assessed that the Danbam bar business investment
project is very feasible. The project not only has social value but also economic efficiency,
with this high profit can help businesses maintain and develop the project in a sustainable
way.

35 | P a g e
 III. Cash flow statement
Year Q-II/2022 Q-III/2022 Q-IV/2022 Q-I/2023 Q-II/2023 Q-III/2023
0 1 2 3 4 5
CASH
INFLOW
Revenue 568,224,000 645,644,520 724,556,628 731,802,194
Bank loan 754,077,500 638,577,500
Total cash
inflow 754,077,500 638,577,500 568,224,000 645,644,520 724,556,628 731,802,194
CASH
OUTFLOW
Initial
investment
1,068,155,000 837,155,000
costs
Operating
costs 267,763,661 297,462,494 327,733,250 330,538,083
Labor costs 178,200,000 179,982,000 181,781,820 183,599,638
Interest
Expense 43,359,456.25 80,077,662 80,077,663 60,058,247 40,038,831 20,019,416
Total cash
outflow 1,111,514,456 917,232,662 526,041,324 537,502,741 549,553,901 534,157,137
NCF before
Tax -357,436,956 -278,655,162 42,182,676 108,141,779 175,002,727 197,645,057
CIT (25%) 0 0 10,545,669 27,035,445 43,750,682 49,411,264
NCF after
Tax -357,436,956 -278,655,162 31,637,007 81,106,334 131,252,045 148,233,793
Discount
1 0.97 0.94 0.92 0.89 0.86
coefficient
PV of NCF -357,436,956 -270,538,992 29,820,913 74,223,785 116,615,742 127,867,772
Cumulative
-357,436,956 -627,975,948 -598,155,035 -523,931,250 -407,315,508 -279,447,736
NPV
r 12%/year
NPV 2,742,010,139
NPV test 0
IRR 14.69%
Tpb 9 Quarters

36 | P a g e
 Target
Total investment excluding VAT (10%) 1,732,100,000 VND
Net Present Value (NPV) 2,742,010,139 VND
Internal rate of return (IRR) 14.69%
Breakeven point (Quarter) 9
Assessment Effective

Time to analyze the financial performance of the project in the 34 quarter - life cycle
from the year of construction start to the year of asset liquidation.
Cash inflows include: Total annual revenue, income from bank loans.
Cash outflows include: Initial investment expenses, annual operating expenses (excluding
depreciation costs), loan payments including interest and principal, and taxes paid to the
state budget.
With the rate of return, the investor expects to be greater than the loan interest rate to
ensure the loan repayment capacity is re = 12%/year.
Based on the results of cash inflows and outflows, we calculate financial ratios, and the
results show:
NPV = 2,742,010,139 VND > 0
IRR = 14.69%
Breakeven point = 9 quarters (including investment periods)
Through the process of planning, analyzing and calculating the above financial ratios, it
shows that the project brings high profits to the investor, the internal rate of return is also
higher than investors' expectations, and the ability to recover capital is quick.

IV. Evaluation of socio-economic efficiency

When the project is put into operation, it will bring many socio-economic benefits to the
community:
- Project with high economic efficiency.
- Annual GDP contributions.
- Bringing profits to investors.
- Create jobs for workers.
- Contribution to the state budget.

37 | P a g e
 Part D: Conclusion
This business plan is the basis for the investor to deploy resources to develop the bar in
order to serve the entertainment needs of the youth living and working in the center of
Hanoi as well as citizens living in Hanoi with middle - high income.
The analysis shows that the project is not only economically viable but also very feasible
through financial parameters. This shows that the project brings high profits to investors,
creates great confidence when the loan repayment capacity is high and the investment is
recovered quickly.

Ha Noi, 1st November 2021

Investor
Vingroup Joint Stock Company

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