ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 5 August 2022 Date Received 1st submission 5 August 2022

Re-submission Date Date Received 2nd submission

Student Name Bui Le Na Student ID GBH210125

Class GBH1108 Assessor name Doan Thi Trang

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 Table of Contents
1. Introduction ...................................................................................................................................................................... 5
2. Types and purposes of the public sector .......................................................................................................................... 5
2.1. Types of the public sector in Vietnam (Wilson, 2020) ............................................................................................... 5
2.1.1. Government sector ............................................................................................................................................. 5
2.1.2. State-owned enterprise sector ........................................................................................................................... 5
2.2. Purpose of the public sector (Wilson, 2020) .............................................................................................................. 5
2.2.1. Government sector ............................................................................................................................................. 5
2.2.2. State-owned enterprise sector ........................................................................................................................... 6
2.3. Examples and evidence about Vietnam Airlines Corporation - Vietnam Airlines ...................................................... 6
3. Types and purposes of volunteering ................................................................................................................................. 6
3.1. Types of the voluntary sector (Diễm, 2021)............................................................................................................... 6
3.1.1. Social enterprise.................................................................................................................................................. 6
3.1.2. Non-governmental organizations ....................................................................................................................... 7
3.2. Purposes of the voluntary sector (Dương, 2022)....................................................................................................... 7
3.2.1. Social enterprise.................................................................................................................................................. 7
3.2.2. Non-governmental organizations ....................................................................................................................... 7
3.3. Example and evidence for Tòhe ................................................................................................................................. 7
4. Types and purposes of the private sector ......................................................................................................................... 9
4.1. Types of private sector ............................................................................................................................................... 9
4.1.1. Private enterprise................................................................................................................................................ 9
4.2.2. Partnerships ........................................................................................................................................................ 9
4.2.3. Limited liability company .................................................................................................................................... 9
4.2.4. Joint Stock Company ........................................................................................................................................... 9
4.2. Purpose of the private sector..................................................................................................................................... 9
4.3. Example and evidence of Vinamilk ............................................................................................................................ 9
4.4. Example and evidence of Vinamilk .......................................................................................................................... 10
5. Novaland Group .............................................................................................................................................................. 11
6. Advantages and disadvantages of private enterprise management .............................................................................. 14
6.1. Advantages ............................................................................................................................................................... 14
6.2. Disadvantages .......................................................................................................................................................... 14
7. The size of the company ................................................................................................................................................. 14
7.1. Data .......................................................................................................................................................................... 15
7.2. The scale of Novaland .............................................................................................................................................. 16
 8. Scope of Novaland .......................................................................................................................................................
8.1. Novaland's economic goals related to revenue, product development, and social goals for 2022 ........................ 17
8.2 Identification of stakeholders ................................................................................................................................... 17
8.2.1. Internal stakeholders ........................................................................................................................................ 17
8.2.2 External stakeholders ......................................................................................................................................... 17
9.1 Novaland's organizational chart. (Novaland, 2022) .................................................................................................. 17
9.2 Main functions of Novaland's main departments related to Human Resources and Accounting (Novaland, 2022)
......................................................................................................................................................................................... 18
9.3 Linking each Human Resources and Accounting to Novaland's goals (Novaland, 2022) ......................................... 19
10. Conclusion ..................................................................................................................................................................... 19
References........................................................................................................................................................................... 20
1. Introduction
Today's Vietnamese economic market is one of the potential markets with cooperation and development
relationships of domestic and foreign companies. However, choosing a suitable partner for investment is not
easy. As a business analyst at Vietcombank Fund Management (“VCBF”), a joint venture between Joint Stock
Commercial Bank for Foreign Trade of Vietnam (“Vietcombank”) and Franklin Templeton Investments. I have
chosen Novaland - No Va Real Estate Investment Group Joint Stock Company, also known as Novaland Group,
to conduct business analysis in this report. With the goal of becoming a prestigious leading brand in the field
of real estate investment and development in Vietnam, I believe that the cooperation of the two sides will
well exploit the market potential, business advantages, and construction. build. building a financial
foundation, a launching pad for the sustainable development of each party. I will research the company in
relation to its type, size and scope, functions, and organizational structure in its investment plan.

2. Types and purposes of the public sector

The public sector is the part of the economy with the control of the government and agencies. This is where
the state establishes and operates different types of organizations on behalf of its citizens and for the benefit
of the citizens or for their common good.

2.1. Types of the public sector in Vietnam (Wilson, 2020)

The public sector includes two types: The government sector and the state-owned enterprise sector. Each
area has its own character.

2.1.1. Government sector

The government sector is an area consisting of units controlled and managed by the government.

The government sector will include central and local governments, social insurance funds such as pension
insurance, unemployment insurance, health insurance, etc.

2.1.2. State-owned enterprise sector

State-owned enterprises are units with shares (at least 50.1%) owned by the state

The State has the right to decide the policy on the appointment of directors, boards of directors, and
regulatory agencies in the financial and non-financial sectors.

2.2. Purpose of the public sector (Wilson, 2020)

The purpose of the public sector is to provide services to the public and is financed by taxes. The areas in
which public sector organizations operate are health, education, housing and social work.

2.2.1. Government sector

The government sector is responsible for the non-market delivery of public goods and services.
2.2.2. State-owned enterprise sector
State-owned enterprises play an extremely important role in state management, contributing to promoting
and stabilizing the national economy.

2.3. Examples and evidence about Vietnam Airlines Corporation - Vietnam Airlines

(Stockbiz, 2022)

3. Types and purposes of volunteering

The volunteer sector is charities, volunteer agencies and community businesses, not nonprofit and non-
governmental buisiness

3.1. Types of the voluntary sector (Diễm, 2021)

The volunteer sector includes two types: Social enterprises and non-governmental organizations. Each area
has its own characteristics.

3.1.1. Social enterprise

Social enterprise is an enterprise operating for the society, conducting business as usual. However, profits are
not distributed to owners, not paid dividends, instead profits will be used (at least 51% of total annual
profits) to reinvest in social activities association, other public

Social enterprises have tax advantages

3.1.2. Non-governmental organizations
Non-governmental organizations (NGOs) is a privately owned organization. It's not a company, it's not state
owned, it's not business, and it's not for profit

Foreign non-governmental organizations (NGOs) wishing to conduct development assistance or humanitarian

aid activities in Vietnam for non-profit or other purposes must obtain permission from the Government of
Vietnam.

3.2. Purposes of the voluntary sector (Dương, 2022)

The volunteer sector is generally not interested in profit, is made up of groups with a desire to serve along
with enriching society, with little or no government involvement.

3.2.1. Social enterprise

Social enterprises have operational objectives to solve social and environmental problems for the benefit of
the community.

Social enterprises operate for the purpose of maximizing financial returns.

3.2.2. Non-governmental organizations

Non-governmental organization (NGOs) whose purpose is to encourage people to perform charitable
activities, promote people for the common good of humanity, propagate and disseminate education.

Non-governmental organization (NGOs) established to help develop the fields of science, technology and
engineering with a global network

3.3. Example and evidence for Tòhe

(Tòhe, 2022)
Tòhe is a Vietnamese social enterprise established in 2006 with the mission of providing disadvantaged
children with a playground for artistic experiences to create, practice and learn.

Tòhe brand is named after a familiar folk toy of Vietnamese children. The special thing about this toy is that
after "play", children can still "eat". Its meaning is close to the meaning of the project, which is to create an
artistic playground for children and help them reap the fruits of these fun activities.

Tohe created this playground with 3 levels (basic art classes, advanced vocational training classes) for
disadvantaged children (children with disabilities, autistic children, orphans, and children living in other rural
areas).

Their artworks are selected, redesigned and then used for fashion or lifestyle products.

5% of the revenue will be given back to the children as royalties of the paintings.

Tòhe has also organized many art events or exhibitions for children, especially the series of events
KIDSTALLATION which is the first art installation program for children in Vietnam.

(Tòhe, 2022)

Tohe always tries to "preserve" the innocence in children, especially disadvantaged children through free
creative art playgrounds held weekly. Their works are categorized and selected according to their own
themes, materials and styles.

Through the product, Tohe also wants to cultivate the innocence, smile, and love that we adults are "at a
disadvantage" when accidentally losing in the midst of a suffocating real life.
4. Types and purposes of the private sector
The private sector is part of the national economy. It is owned, controlled and managed by individuals or
businesses. The private sector is not owned or controlled by the state.

4.1. Types of private sector

There are four types of private sector: sole proprietorship, partnership, limited liability company, and joint
stock company. Each type has its own role

4.1.1. Private enterprise

A sole proprietorship is an enterprise with one owner who has full decision-making power and is solely
responsible with all his assets for all activities of the business.

Private enterprises are less bound and encounter legal problems. In the event of a loss, the loss must be
compensated. The sole proprietorship has unlimited liability for all business operations of the business. In
addition, private enterprises have no legal status and cannot issue securities of any kind.

4.2.2. Partnerships
A partnership is an enterprise that must have at least two members (individuals) who are joint owners of the
company. In addition to general partners, the company may have additional capital contributors. Capital
contributors are only liable for the debts of the company to the extent of the amount of capital contributed

to the company. A partnership has limited liability if it is a general partner and unlimited liability for capital
contributors.

A partnership company has legal status from the date of issuance of the Certificate of Business Registration.

4.2.3. Limited liability company

A limited liability company is a company that is built and established by an organization or individual with a
maximum number of between 1 and 50 people. The company has legal status and has limited liability

4.2.4. Joint Stock Company

Joint-stock company is a company in which the charter capital is divided into equal, smallest parts called
shares. The members of the company (shareholders) may own one or more shares and are liable only to the
extent of the value of the shares they hold. The company has the right to issue shares to raise capital.

4.2. Purpose of the private sector

The private sector operates for profit, with the aim of conducting profit-seeking business on a regular basis.

4.3. Example and evidence of Vinamilk

Payment to shareholders from Vinamilk
 (Vinamilk, 2021)

4.4. Example and evidence of Vinamilk

Ownership structure
 (Vietstock, 2022)

5. Novaland Group
The company that I choose to introduce No Va Real Estate Investment Group Joint Stock Company, also
known as Novaland Group

(Novaland, 2022)

Website: https://www.novaworldland.com/

Introduction:

On September 18, 2022, Mr. Bui Thanh Nhon established Thanh Nhon Trading Company Limited - the
predecessor of Novagroup with a charter capital of 400 million VND to operate in the field of production,
import and distribution. veterinary drug products, pharmaceutical raw materials, chemicals. (wikipedia,
2022)

In 2007, implementing the first restructuring, Thanh Nhon Trading Company Limited was restructured into
two units: Anova Joint Stock Company and No Va Real Estate Investment Group Joint Stock Company
(Novaland). ). Novaland operates mainly in the field of real estate with an initial charter capital of VND 95.3
billion. Bui Thanh Nhon holds the position of Chairman of the Board of Directors of Novaland. (wikipedia,
2022)

After 12 times of capital increase, by November 2016, Novaland has a charter capital of nearly VND 5962
billion. On December 28, 2016, Novaland was officially listed on Vietnam stock market with stock code "NVL"
on Ho Chi Minh Stock Exchange (HOSE), listed price is 50,000 VND/share, total 589.4 million share. At this
price, Novaland's market capitalization as soon as it goes public is VND29,500 billion (about $1.3 billion),
making it the second largest real estate enterprise on the Vietnamese stock market, just behind Vingroup.
(wikipedia, 2022)
 In 2020, Novagroup carries out the second restructuring, aiming to become the leading economic
development and investment group in Vietnam, including 3 corporations: Novaland, Nova Service and Nova
Consumer - operating in the fields of Real Estate, Trade - Services, Agriculture - Consumer Goods. (wikipedia,
2022)

In particular, Novaland has always maintained its position as the leading prestigious real estate developer in
Vietnam. Nova Service provides international quality products and services, bringing many conveniences to
customers and adding value to the tourist destinations that NovaGroup develops. Nova Consumer provides
quality consumer products and enhances the value of community life; Pioneering in promoting closed chain
from production to distribution system, bringing advantages and optimization for customers and consumers;
Local exports bring Vietnamese specialties to the world, contributing to building Vietnam's position and
image in the international market. (wikipedia, 2022)

In 2021, NovaGroup continues to improve the ecosystem, operating mainly in 3 areas of Service - Technology
- Industry; at the same time, 5 more corporations were established, including: Nova Tech, Nova Capital
Partners, Nova Logistic, Nova Industry, Nova Finance. (wikipedia, 2022)

Our company is known as a leading real estate company in Vietnam, so we appreciate urban areas,
developing cities, areas that have been and have not been expanded, central The city center is active. Based
on the development and changing trends of the Vietnamese economy, we will be flexible in our main areas of
activity.

Type and purpose of the company:

Type

(Novaland, 2021)

Novaland group is a private sector company - a joint stock company. According to the 2021 Annual Report,
the company has to pay 49,516,473,359 (VND) dividend to the owners. (Novaland, 2021)
 (Vietstock, 2022)

Novaland is also a public corporation. Novaland shares were first launched on the Ho Chi Minh City Stock
Exchange (HOSE) on December 28, 2016. On the exchange, Novaland's stock ticker is NVL.

Novaland has 100% private shareholders, as seen in the image from the 2021 ownership structure, proving
that it is a private corporation.

(Novaland, 2021)
 (Stockbiz, 2022)
Purpose:
Vision
Novaland is the leading Real Estate Developer in Vietnam from Urban - Tourism - Industry (Novaland, 2021)
Mission
NovaGroup - the business community connection point. By resources in the corporation's ecosystem; the
company wishes to be able to connect and support Vietnamese businesses to create outstanding products
and experience services to integrate into the international community. (Novaland, 2021)

6. Advantages and disadvantages of private enterprise management

6.1. Advantages
A sole proprietorship is owned by only one person, and that person has unlimited liability, but the fact that
the company is managed by a single person will create unity for the business, the management and
administration will also be easier. This unlimited liability can create trust and peace of mind of customers and
partners. This is also a great advantage of private enterprise. In addition, because of this feature, businesses
are less likely to be bound by laws such as finance and accounting compared to other types of businesses.
(Lawkey, 2022)

6.2. Disadvantages
In addition to the above advantages, it is impossible not to mention the disadvantages of the unlimited
liability regime. The fact that a single person owns a business also means that he or she has to bear all the
risks in the business of the business without being able to ask others to bear the same. If the business has a
loss, the initial capital is not enough to pay, the owner of the private business must use his own assets to
make up for the loss. This is also the difference between private enterprises and other businesses. With a
limited liability company, when there is a loss, the members of the company are only liable for the company's
debts to the extent of the amount they have spent to contribute capital. Meanwhile, the owner of a private
business is always responsible for the entire loss of the business with all his assets if the initial capital
invested is not enough to repay the debt. This means that if a private enterprise cannot pay its debts and falls
into bankruptcy, the assets of the owner of the private business will also be considered part of the
bankruptcy property of the business. In other words, once a business goes bankrupt, the owner of a private
business will be completely empty-handed, hardly able to do it again. (Lawkey, 2022)

7. The size of the company

Novaland is the leading real estate group in Vietnam. Based on Novaland's 2021 annual report, total capital is
201,834 billion VND, total debt is 160,661 billion VND, equity is 41,173 billion VND. (Novaland, 2021)
7.1. Data

(Novaland, 2021)
 (Novaland, 2021)

(Vietstock, 2022)
According to the financial statements for 2021, Novaland recorded total consolidated revenue unchanged at
more than VND 14,967 billion and consolidated profit after tax unchanged at VND 3,455 billion. (Novaland,
2021)
Revenue from sales was unadjusted, reaching nearly VND 13,511 billion, up 264% over the same period last
year, recorded from the handover of projects such as NovaHills Mui Ne, Saigon Royal, Aqua City, NovaWorld
Phan Thiet, NovaWorld Ho Tram, Victoria Village; revenue from service provision reached 1,457 billion dong.
(Novaland, 2021)
As of December 31, 2021, the Group's total assets reached VND 201,834 billion, an increase of 0.16%
compared to the unaudited data and an increase of 39.6% compared to the end of 2020. (Novaland, 2021)
7.2. The scale of Novaland
According to the above data, with a total capital of more than 201,834 VND and a staff of more than 1700
people, I can conclude that Novaland is a large-scale enterprise. (Novaland, 2021)
8. Scope of Novaland
8.1. Novaland's economic goals related to revenue, product development, and social goals for 2022
According to Novaland, the company has just experienced 2021 with many bright spots despite many
interruptions in business activities due to the epidemic. The company has handed over many products in
major cities and recorded total consolidated revenue of VND 14,967 billion, and a profit after tax of VND
3,455 billion. (vietnamnet, 2022)
Novaland's representative said that the group clearly identifies the focus in 2022 is to continue its
development advantages, and shorten the time to implement the phase 2 strategy combined with entering
phase 3 - developing megacities and destinations travel. At the same time, on land banks ready to be put on
the market, in 2022, Novaland will introduce about 15,000 products. In which, 80% of product reserves will
come from 03 key ongoing projects, namely Aqua City, NovaWorld Ho Tram, NovaWorld Phan Thiet, and 20%
from some new projects. (vietnamnet, 2022)
8.2 Identification of stakeholders
8.2.1. Internal stakeholders
To raise the value for megacities, Novaland and other members of NovaGroup, Nova Service, together with
Nova Consumer, have been developing a comprehensive ecosystem of products and services. Currently,
members of Nova Service focus on investing and managing service utility chains in big cities, making a
significant contribution to the operation progress. (vietnamnet, 2022)
Specifically, in 2022, NovaWorld Phan Thiet will continue to hand over and operate many second-home zones
in the Florida subdivision (vietnamnet, 2022)
In 2022, Aqua City also operates many important utility projects such as a security center, Aqua Central mall,
Aqua Sports Complex, Nova Clinic Aqua City.... to ready. Welcome the first residents. (vietnamnet, 2022)
8.2.2 External stakeholders
Basically, the great interests of shareholders over competitors include enjoying dividends of joint stock
companies, participating in voting to decide the company's direction in the general meeting of shareholders
along with the following: to be given priority to buy shares when the company conducts an offering, and
finally is required to convene a general meeting of shareholders in some cases.

9. Relationship between Novaland's various organizational functions and how they link to Vietcombank's
goals (Novaland, 2022)

Corporate governance includes a system of principles, laws and policies to guide the operation, operation
and control of the business in five aspects: Ensuring a reasonable governance structure, ensuring operational
efficiency of the Board of Directors, the Supervisory Board, to ensure the interests of shareholders and
related people, to ensure fair treatment among shareholders, to publicize and transparently all activities of
the company.
9.1 Novaland's organizational chart. (Novaland, 2022)
Effective corporate governance helps promote operations and improve production and business efficiency,
company management is transparent, investors are minimized risks and are treated fairly, which is the
 foundation of good corporate governance. foundation for the competitiveness and reputation of
enterprises, thereby facilitating access to capital markets, developing financial markets and promoting
economic growth.

(Novaland, 2022)
9.2 Main functions of Novaland's main departments related to Human Resources and Accounting (Novaland,
2022)
The main function of the main departments related to human resources and accounting is risk management.
Risks always exist in the course of business operations, Novaland aims to control risks to seize breakthrough
opportunities.
 (Novaland, 2022)
9.3 Linking each Human Resources and Accounting to Novaland's goals (Novaland, 2022)
With this orientation, risk management at Novaland focuses on the following objectives:
Establish an effective and transparent risk monitoring and reporting mechanism throughout the Group in
order to early identify and assess risks to have a plan to limit adverse impacts in time and exploit
opportunities and challenges.
Apply risk prevention measures, increase the operational efficiency of the control system.
Build a culture of risk management throughout the organization so that each employee is an owner and
practice of risk management.

10. Conclusion
In short, Novaland is one of the leading real estate companies in Vietnam. This is a big brand with an
impressive growth trajectory. In my opinion, Novaland will be invested and grow more and more worldwide
over time with its goals, mission, vision and fundamental principles.
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