-Confidential-

Business plan
Sikl & Cotton Viet Ltd,.

Date: 12.05.2012 Version: Skill & Cotton Viet Ltd,.Co Created by: Entrepreneur

Phone: E-mail:

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1. Summary of the Business Plan

Our company name is Silk & Cotton Viet LTD, which focus on export skill & cotton from Vietnam to France company (B2B way). The fabric textile in Vietnam is developing tremendously. In 2010, the export reached approximately 10 billion dollars which increases 23% in compared with the previous year. It is now becoming one of the major and focused industry that Vietnamese government pay attention to. The fabric textile products have been producing and providing to many countries all over the world such as Africa, Japan and the USA. From the simple to complex form, the products have been improved to be more precise and higher quality. Besides that, France is a prosperous country to import the product because of the famous fashion development there. We believe that our company has its unique competitive advantages to compete well between other competitors from Asian countries. First of all, it is the cheap source of silk and cotton we can find in Vietnam, and the richful experience from managers working for us. In addition, our exported products are silk and cotton which are abundant and hight quality in VIetnam and more and more likeable in France. However, we still face some difficulties in the business because of we are new company so it could be hard to have partner and gain trust from them. Moreover, because of export problem such as tax, international laws, it constrains to enter a developed and harsh market in France. The fabric textile industry in Vietnam also must go through the Chinese and Taiwan intermediaries before exporting. Therefore, we hope that our business will be independent to China, and will develop in term ''made in Vietnam''. Furthermore, our company also focuses on social responsibility. For example, our partners and suppliers must follow ethical rules such as no child labor, overwhelmed working hours... With the fist investment 20000 euro from our money, we need 100,000 euro bank loan for starting our international business. The profit after tax is very optimist, 406 439,40 EUR (first year), 652 079,18 EUR and we can pay the bankloan in the beginning of the second year. So this is a very promitising chance for us and our investor.

SWOT
Strengths
-Cheap source of cotton and silk: The climate in Vietnam is hot and humid, which is suitable for the growth of plants (cotton) which is used to make plant textile. In addition, there is another kind of

Weaknesses
-Just a start-up company, so that the experiences are still limited in front of the others competitors -The low level of applying technology in fabric textile in Vietnamese suppliers

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textile which is made from the insects (silk moth). These kinds of insects live well in Vietnamese climate condition. This is the main reason there is an abundant source that we can buy them from private household, textile production enteprise with cheap price but still make them very sastifying. -Hihg quality cotton and fabric: Vietnam has a long tradition in making fabric textile. -Experience in textile industry and sales negotion: our managers work for more than 10 years in textile industry and he have quite a long of time spending in sale position.

Business Management & Capital Management" We don't have enough skill to management to confront with many changes, ups and downs at international level yet.

Opportunities
Opportunities -Prosperous market in France. How? Trade Unions: Vietnam is a member of WTO, which brings many opportunities to the industry, especially in the way that makes it become internationally

Threats
-Competitors: Our Company is facing a big competition from the top world countries of textile production such as India, China, and Mexico... They have strengths like us: good climate, abundance of human force and raw ingredient... But with more experiences and a good government policy, they even have great advantages of higher quality and cheaper price of textile. Also, they already deal with buyers before us for a longtime ago. -Taxes of Countries import: Europe has a high tax with textile products. Even Vietnam have some agreement with some countries in Europe to have some advantage in trading, taxes is still a great barrier for our company to enter to new markets in Europe. Suppliers: some of our partner don't provide ingredient, machines on time, or as agreement. There are cases that some cheat us to buy old machines or low quality ingredient from us. They even ask a high price for what they supply that cause us to difficult to deal and negotiation.

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3. Products and services

Our product is fabric textile. Textile refers to any material made of interlacing fibres. Fabric refers to any material made through weaving, knitting, spreading, crocheting, or bonding that may be used in production of further goods (garments ...) As we analyze the market in France, people prefer natural dye materials which make from organic cotton and silk. It is our two main product lines. 1.1/ Silk Silk is a natural protein fiber (thin and smooth) whose forms can be woven into textiles. The silk is obtained from the cocoons of the larvae of the mulberry silkworm reared in captivity. This is one of a traditional job in Vietnam. In the past, this product is a luxury thing just dedicated from rich people in society. The shimmering appearance of silk is due to the triangular prism-like structure of the silk fiber, which allows silk cloth to refract incoming light at different angles, thus producing different colors. Silks are produced by different kinds of insects, but generally only the silk of moth caterpillars has been manufactured for textile. There are many silks differentiated at the molecular level. Many silks are mainly produced by the larvae of insects undergoing complete metamorphosis, but some adult insects such as web spinners produce silk, and some insects such as raspy crickets produce silk throughout their life. Silk Habotai Also known as "China Silk" . Smooth lightweight silk in 5 weights Crepe Back Silk Satin (Charmeuse fabrics): Silk satin with crepe back Silk Chiffon : Sheer silk with crepe like texture in 2 weights Devore Satin : Rayon satin face with silk backing Flat Crepe :Lustrous shine with slight crepey texture Silk Twill :Shimmery silk with twill weave Crepe de Chine :Slightly crinkled texture with graceful drape Silk Gauze :Very light, very sheer gauze in 2 weights Raw Silk (Silk Noil) : Natural colored nubbly textured silk Silk Dupion :Shimmery texture with intermittent silk slubs Silk Organza: Very sheer, transparent, crisp silk Silk Velvet: Plush rayon pile with silk backing

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1.2/ Natural cotton Cotton is a soft, fluffy staple fiber that grows in a bowl. Organic cotton is produced without the use of any synthetic agricultural chemicals, such as fertilizers or pesticides. The production process enhances biodiversity and biological cycles. Here is our export products Medium Weight : Smooth, soft cotton with a medium weave and medium weight. Finely Woven : Smooth, dense high quality with a higher thread count. Gauzy & Sheer: Soft and light weight, with a loose, open weave. Sheeting: Smooth, flat, and closely woven. Denim: Densely woven twill weave. Strong and durable. Jersey and Other Knits: Lightweight, smooth, slightly stretchy knit fabric. Velveteen: Smooth, short but dense pile with a slight sheen. Combed Lawn: Soft, high quality semi-sheer cotton. Canvas & Duck: Strong and durable utilitarian fabric. Quilter's Flannel: Brushed, soft and warm! Sateen: Soft, finely woven with a silky sheen. Muslin : Economical plain weave in natural or bleached. The "all purpose" fabric. Cotton Blends : Humble Cotton is a wonderful fabric, but mix it with something else to make it amazing soft and attractive. Organic Cotton Fabrics:Beautiful organic cotton and organic cotton blends! Amazing quality, texture, and dyeability.

4. Customers and markets

Target customers -Business companies: Fashion Company, Curtain Company... who needs materials for their operations. Maybe because we are just beginners, our customers may be small and medium sized companies. Who are they, which city, the size of them. Some specific company.

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-Individuals: designers, models... with demand of great amount (minimum 1 bolt)

Customers/customer groups
Fashion Company Allocation of resources: Curtain Company Allocation of resources: Individuals Allocation of resources: 5 35 60

5. Markets and competition

Competitors
Vietnamese textile exported Other textile exported companies from China, India

6. Your company
1/ Mission statement Our company mission is to export quality fabric textiles to France and will remain developed and become a trusted partner, so that we can expand our business all over European Union after 5 years. 2/ Business history The company has just started, however we have good knowledge from employer's experiences. The company members and employees are mainly those have good education and experiences from previous working in fabric textile industry. 3/ Corporate structure The company belongs to limited liability form which we receives shares from investors and shareholders.

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4/ Management In our company, there are total 30 employees. Ten people working in marketing department while there are ten working for exporting. The others deal with manage and control the company other activities such as finance, human resource management, paperwork, tax...We outsource the accounting part from another company, so that it can reduce the work load. 5/ The export team There are two main leaders in the export team; both can foster French language well. In addition, they studied in France for several years, so that they understand the custom and business there. One person is a master in marketing whiles another one is an expert in financial issues. Therefore, our company is sure of our strengths and abilities to export to France. 6/ Resources The company is situated in Ho Chi Minh City, Vietnam which is the most developed city. Our main suppliers are from many provinces with long tradition and experiences in fabric textile industry throughout the country. Branch Office in France 7/ Export Goals and objectives -Goal one: Export fabric textile as business to business. Our target customers are those fashion or curtain companies who need materials to make the final products. -Goal two: Have some stores who sell as business to customer. We will sell materials to individuals who can design and make the products themselves (designers, model...) -Goal three: Use ebusiness as a tool to develop the business.

7. Financial administration and accounting

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Capital requirements and sources of financing

Calculation version : Skill & Cotton Viet Ltd,.Co Calculation version: bunatino

Date

12.05.2012

CAPITAL REQUIREMENTS
INVESTMENTS Immaterial goods Machinery and equipment Registration costs other IT Production equipment acquirements Assets, in kind Vehicle Furniture phone/fax/Internet including installation Installation of machinery and equipment Renovation of premises Office supplies Other devices Initial advertising/brochures Rent and rent deposit Equipment rental/leasing costs Personnel costs Entrepreneur s personal living costs initial inventory Cash reserve

Movables of the company month Working capital Costs of the premise Equipment costs Salaries Sales and Financial assets

CAPITAL REQUIREMENTS IN TOTAL

CAPITAL SOURCES
Equity Share capital Personal funds invested Personal production tools and equipment other Shareholder loan Bank loan Finnvera loan other Supplier loan 0.00 0

Equity loan

Other sources of financing

Difference SOURCES OF CAPITAL IN TOTAL

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Profitability calculation

Calculation version: Skill & Cotton Viet Ltd,.Co Name : bunatino

Date

12.05.2012

Comp. form: Private entrepreneur um. of Entrepreneurs N 1 Per month =TARGET NET RESULT + Loan amortisements + Taxation =CAPITAL REQUIREMENTS + Company loan Interests A = OPERATING MARGIN + Fixed costs (excl. VAT) -YEL % -other insurances -salaries -salary related -Company premises -leasing payments -communication -accounting, tax declaration etc. -office expenses -travel, vehicle etc. -marketing -education, books, magazines -Fixing and maintenance unemployment fund -other expenses B = TOTAL FIXED COSTS 0.00 0.00 % or EUR 0.00 0.00 % 0 Income level Sale% 0 0 0 0.00 0.00 0 0 0 0.00 0 0.00 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0.00 % 0 0.00 0 0.00 % Years Ammount 0.00 % 0 0 0 0 0 0 = INCOME AFTER TAXES Per year 0.00 0 0.00 0.00 0 0 0

A+B = SALES MARGIN REQUIREMENT + purchases (excluding VAT:) Margin

NET REVENUE REQUIREMENT -other net income +VAT % TOTAL SALES / INVOICING REQUIREMENT

By selecting the suitable alternative, you can estimate your minimum target invoicing level, or the ratio between price/quantity Excluding tax Monthly invoicing target Weekly target invoicing Product/service target price months/year days/month units/day 0 0 0 Including VAT 0 0 0

Daily calculation (only if days/month selected above)

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Sales projection Calculation version: Skill & Cotton Viet Ltd,.Co

Product 1/ group Product s/ product group s name
unit price costs margin unit price costs 0.00 margin unit price costs 0.00 margin unit price costs 0.00 margin

Date

12.05.2012

Name: bunatino
Product 4/ group Product 5/ group Product 6/ group EUR/month

Product 2/ group

Product 3/ group

Excluding VAT
unit price costs 0.00 margin unit price costs 0.00 margin 0.00

Customer /customer group Fashion Company Curtain Company Individuals

pcs

Total pcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total pcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total pcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total pcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total pcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 0 0 0 0 0 0 0

Sales margin total

0.00

0.00

0.00

0.00

0.00 month 0 0 0 0 0

0.00 per year

0 0 0 0 0 0

Net revenue (excluding VAT): Total costs: Sales margin total: Sales margin requirement from the profitability calculation
Difference (possible need of additional sales)

0 months/year

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