7,986,953,484 VND compared to 2018. This has made the gross profit of Quy Nhon Forestry One Member Co., Ltd. increase slightly over the years. Specifically, the company's gross profit in 2017 was 13,772,617,926 VND, in 2018 it was 13,889,121,786 VND and in 2019 it was 19,592,948,468 VND, the average growth rate reached 119.3%. This result shows the business efficiency and production capacity of the company.
We can see that the company's costs tend to decrease in financial costs, but business management costs tend to increase sharply with an average growth rate of 132.2%. Specifically, business management costs in 2017 were 9.8 billion VND, but in 2018 they increased to 12.02 billion VND and reached 17.1 billion VND in 2019.
Due to the sharp increase in business management costs, the Company's after-tax profit tended to decrease from VND 3.38 billion in 2017 to VND 1.42 billion in 2018 and VND 1.98 billion in 2019, the average growth rate of after-tax profit reached 76.5%. Due to the impact of climate change, abnormal weather changes caused many diseases that negatively affected the growth and development cycle of ornamental plants and rubber trees. In addition, the application of advanced scientific and technical achievements in planting, care and exploitation is still limited. This has affected the Company's production and business results.
3.1.2.3. Business performance results of La Nga Forestry One Member Co., Ltd.
The production and business results of La Nga Forestry One Member Co., Ltd. in 2017-2019 are shown in Appendix 3.9.
Through the report on the Company's production and business results in the past 3 years, we can see that the company's profit situation has not fluctuated much, total profit after tax increased from 1.67 billion VND in 2017 to 3.14 billion VND in 2018.
2018 and decreased to 2.23 billion VND in 2019, the average growth rate over 3 years reached 115.5%.
The company's sales and service revenue has been increasing over the past 3 years with an average growth rate of 124.6%. Specifically, revenue in 2017 reached 14.7 billion VND, the company's revenue increased to 17.76 billion VND in 2018 and reached 22.84 billion VND in 2019. The company's revenue has been increasing but due to increased costs, profits have fluctuated unevenly over the years.
The company's cost of goods sold also increased over the past 3 years with an average growth rate of 128.2%, which is faster than the growth rate of revenue. Specifically, in 2017, the company's cost of goods sold was 12,137,793,516 VND, in 2018 it was 14,132,732,164 VND and in 2019 it increased to 19,946,746,542 VND.
The company's gross profit increased slightly from VND2.56 billion in 2017 to VND3.62 billion in 2018 before decreasing slightly to VND2.89 billion in 2019, with an average growth rate of 106.1%.
Revenue from financial activities brings a large source of income to the company and has tended to decrease slightly over the past 3 years with an average growth rate of 92.6%.
Specifically, revenue from financial activities in 2017 was 1.28 billion VND, this figure increased to 1.48 billion VND in 2018 and reached 1.09 billion VND in 2019. Meanwhile, financial expenses were much lower than revenue, the figure recorded in 2017 was 186 million VND and increased to 627 million VND in 2018, in 2019 there were no financial expenses.
Business management costs have tended to increase rapidly over the past 3 years with an average growth rate of 111.0%, specifically business management costs in 2017 were 1.88 billion VND, and this figure increased to 2.32 billion VND in 2019. Such high business management costs are due to increased salary costs and
Prices of purchased services such as stationery, electricity, and fixed asset repairs all tended to increase rapidly during the study period.
The growth rate of revenue is greater than the growth rate of expenses, so the report shows that the company's after-tax profit also tends to increase over 3 years with an average growth rate of 115.5%.
3.2. Current status of criteria for determining enterprise value of selected forestry companies for research
In addition to regional representation, the three companies selected as research sites also represent large-medium and small-scale production. For comparison, the author selected Nguyen Van Troi Forestry Company - Tuyen Quang, a forestry company that used the criteria for determining enterprise value to pilot the equitization plan in 2018.
Currently, forestry companies are using criteria to determine enterprise value according to the regulations of the Ministry of Finance. State-owned enterprises mainly determine enterprise value by the asset method, because this method is simple and easy to calculate, the data used is mostly from accounting reports, and for state-owned enterprises in the forestry sector in the past, they also used the asset method to determine their value, the results of using criteria to determine enterprise value of companies are as follows:
3.2.1. Current status of criteria for determining enterprise value of Yen Son Forestry Company Limited
The results of the current status of indicators determining the enterprise value of Yen Son Forestry Company Limited in the 3 years from 2017 to 2019 are shown in the following data table:
Table 3.3: Results of determining the enterprise value of Yen Son Forestry Company Limited in 2017 - 2019
Unit: Dong
TT
Determination criteria | 2017 | 2018 | 2019 | TDPT (%) | ||||
Value | Proportion (%) | Value | Proportion (%) | Value | Ratio weight (%) | |||
I | CURRENT ASSETS | 24,622,452,046 | 96.82 | 24,161,413,362 | 87.07 | 24,131,501,644 | 95.23 | 99.00 |
1 | Cash and cash equivalents cash equivalent | 1,235,799,370 | 4.86 | 60,466,759 | 0.22 | 481,433,358 | 1.90 | 62.42 |
2 | Short-term receivables | 2,572,519,196 | 10.12 | 12,044,023,890 | 43.40 | 12,359,989,438 | 48.78 | 219.19 |
3 | Inventory | 20,814,080,720 | 81.84 | 12,056,922,711 | 43.45 | 11,290,078,847 | 44.55 | 73.65 |
4 | Other current assets | 52,760 | 3.18 | 0.00 | ||||
II. | LONG-TERM ASSETS | 809.836.905 | 3.18 | 3,587,254,766 | 12.93 | 1,208,952,237 | 4.77 | 122.18 |
1 | Fixed assets | 707.773.105 | 2.78 | 3,427,417,788 | 12.35 | 1,143,012,486 | 4.51 | 127.08 |
2 | Long-term financial investment | 0.00 | ||||||
3 | Other long-term assets | 102,063,800 | 0.40 | 159,836,978 | 0.58 | 65,939,750 | 0.26 | 80.38 |
TOTAL ASSETS | 25,432,288,951 | 100.00 | 27,748,668,128 | 100.00 | 25,340,453,881 | 100.00 | 99.82 | |
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Production and Business Performance Results for the Period 2017 - 2019 -
![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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zt2a3gsnon-credit services, joint stock commercial bank
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Business Performance of the Company in the Period 2009–2011 Table 2.1. Business Results of Viet Holiday Travel Company -
Company's Business Performance Results for 3 Years (2018-2020) -
Subjective Requirements: State Management and Anti-Production Work in Our Country Still Have Many Limitations, Results Are Not High.
(Source: Finance and Accounting Department)
91
The results of Table 3.6 show that the criteria used to determine the enterprise value at Yen Son Forestry Company Limited have not changed over the past 3 years, 2017-2019. The determination of the company's value uses the asset method and is in accordance with the regulations of the Ministry of Finance. The value of the enterprise is divided into 2 groups: short-term assets and long-term assets.
The company's current assets are mainly short-term assets, accounting for more than 90% of the company's total assets, including cash and cash equivalents, short-term receivables, inventories and other short-term assets. In which, cash and cash equivalents are the current cash in the current balance sheet. Short-term receivables are money that customers still owe the company, which has been invoiced but not yet transferred. The company's inventories are mainly the criteria for the value of production forests and partly from the value of sawn timber and wood chips in inventory that have not been consumed. The criteria for the value of production forests are collected from the costs incurred in the process of forest construction and annual forest care costs. Other short-term assets are short-term assets that can be converted into cash but are not classified in the above categories.
Using the above criteria to calculate the company's short-term assets has the limitation that the forest value is aggregated into the inventory item. With such a calculation, it only shows the cost of planting forests without showing the potential value, so for forestry enterprises, it is necessary to separate the forest value into a separate item. The inventory value criterion decreased sharply from VND 20.81 billion in 2017 to VND 11.29 billion in 2019. The inventory value criterion decreased because the company exploited the production forest area and the inventory value was transferred to the short-term receivables from customers.
Long-term assets include tangible fixed assets, long-term investments of the enterprise and other long-term assets, long-term assets account for an insignificant proportion of the total assets of the company. Criteria for the value of long-term assets of
The company's main asset value is fixed assets, other long-term assets account for an insignificant proportion. The company's fixed assets are the remaining book value of buildings, structures and machinery and equipment. The company's fixed assets have fluctuated greatly in the past 3 years, with an average growth rate of 127.08%. This fluctuation is due to the company's fixed asset purchase and liquidation activities. Other long-term assets are the remaining book value of small production machinery and equipment such as weed cutters and sprayers.
In summary, through analyzing the current status of the company's asset value, we can see that the company's assets are mainly short-term asset value criteria, while the long-term asset value criteria account for a low proportion. The company's asset value is largely in the inventory criteria.
Yen Son Forestry One Member Co., Ltd. does not determine the criteria for land use rights value and business advantage value (intangible value) in the enterprise value. The value of land use rights has not been included in the calculation by the company because the company chooses the option of leasing land with annual payment, so it is not included in determining the enterprise value. The value of business advantage has not been included in the calculation because compared to similar companies, Yen Son Forestry One Member Co., Ltd. does not have any distinct advantages to calculate business advantage. In addition, the criteria for the enterprise's debts are not included in the company's balance sheet.
Thus, it can be seen that with the asset method and the criteria listed in the balance sheet, the company's goal is to determine the value based on the current status of the company's assets. The value of the forest is included in the inventory item, this accounting method is not really reasonable when determining the value of the enterprise. This method does not show the value of the enterprise after deducting debts, nor does it show the advantages and development potential of the enterprise in the future.
3.2.2. Current status of criteria for determining enterprise value of Quy Nhon Forestry One Member Co., Ltd.
The results of the current status of criteria for determining the enterprise value of Quy Nhon Forestry One Member Co., Ltd. in 3 years (2017-2019) are shown in Table 3.4.
Similar to Yen Son Forestry Company Limited, Quy Nhon Forestry Company Limited also determines the enterprise value according to the asset method and uses the balance sheet, accounting book form and bookkeeping vouchers, in accordance with the regulations of the Ministry of Finance.
The value of the State capital includes the criteria for short-term asset value and long-term asset value, the criteria for land use rights value and intangible values such as business advantages that have not been included in the calculation of the company's assets. Because the company's land is leased land with annual payment, it is not included in determining the enterprise value.
However, compared to Yen Son Forestry Company Limited, the criteria for determining enterprise value are gathered in more detail by Quy Nhon Forestry Company Limited. The reason for this difference is due to the characteristics of production and business and the difference in accounting processes of the companies.
Current assets account for a large proportion of the company's total assets, about 90%. The company's current assets include five items; cash and cash equivalents, short-term financial investments, short-term receivables, inventories, and other current assets.
In which cash and cash equivalents are the current cash in the current balance sheet, cash and cash equivalents tend to increase over 3 years with an average growth rate of 155.59%, this item increases because the company receives money from short-term financial investments.
The company's short-term financial investments are mainly bank deposits, which account for a large proportion of the company's total assets and have been on a downward trend over the past 3 years, with an average growth rate of 55.65%. Short-term receivables are money owed to the company by customers, which have been invoiced but not yet transferred. The company's short-term receivables tend to increase rapidly, with an average growth rate of 144.6%.
The company's inventory is mainly the criterion for the value of production forests, collected from the annual costs of planting and caring for forests. Because the potential value of forests has not been taken into account and the discount rate has not been used to convert cash flows over time, the forest value is calculated very low, not reflecting the actual value. The value of the company's inventory accounts for about 30% of the total asset value, and tends to increase with an average growth rate of 114.72%. Other current assets are short-term assets that can be converted into cash but are not classified in the above categories, this item has an insignificant value.
The company's long-term assets are grouped into six items including; long-term receivables, fixed assets, investment real estate, long-term unfinished assets, long-term financial investments, and other long-term assets. Compared to Yen Son Forestry Company Limited, the criteria for determining long-term assets of Quy Nhon Forestry Company Limited has taken into account the value of investment real estate, however, the value of forest land has not been included in the calculation.
The criteria for the value of the company's long-term assets are mainly the value of fixed assets and long-term financial investments. The company's fixed assets are the remaining value on the accounting books of buildings, structures and machinery and equipment. The company's fixed assets have tended to increase over the past 3 years, with an average growth rate of 130.44%.