ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment
Submission date 4/6/2021 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Pham Nguyen Hong Phuc Student ID GBD19912
Class GBD0906 Assessor name Võ Thị Thảo Ngọc
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Figure 1: Vietjet air Logo.................................................................................................................................1
Figure 2: Vietjet air Stock information............................................................................................................3
Figure 3: Vietjet air profit of shareholders.....................................................................................................3
Figure 4: Shareholder Equities........................................................................................................................4
Figure 5: Annual report Vietjet Air 2019........................................................................................................6
Figure 6 : Owner's equity................................................................................................................................7
Figure 7: Liability of Vietjet air........................................................................................................................7
Figure 8: Revenue of Vietjet...........................................................................................................................8
Figure 9 : Vietjet's Human resources structure..............................................................................................8
Figure 10: Vietjet Air tickets in Danang..........................................................................................................9
Figure 11 Information page for Vietjet investors, 2021...............................................................................10
Figure 13: Vietjet Air lowers the measurement of Vietnam Airlines to
become the largest airline in Vietnam - Cheap flight tickets.......................................................................11
Figure 14 : Vietjeb organization structure chart..........................................................................................12

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 Table of Contents

I. INTRODUCTION.......................................................................................................1

II. TYPE OF THE COMPANY AND PURPOSE............................................................3

1. Type of the company......................................................................................................3

2. Purpose...........................................................................................................................5
3. Size.................................................................................................................................6
4. Scope..............................................................................................................................9
III. FUNCTION................................................................................................................11

IV. CONCLUSION...........................................................................................................15

V. REFERENCE..............................................................................................................16

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 I. INTRODUCTION

Figure 1: Vietjet air Logo

Following the company's public announcement, VietJet Aviation Joint Stock Company, also known as VietJet
Air or Vietjet, is an international low-cost airline from Vietnam. The company was approved to operate by the
Vietnamese Minister of Finance in November 2007 and first launched in December 2011. Since then, VietJet
has become the second private domestic airline and the fifth airline overall to offer civil domestic flights. VietJet
is operating an intensive flight network in Vietnam and is planning to expand its operations throughout the
Asia-Pacific region. As it is titled as a joint stock company, Vietjet is owned by Sovico Holdings, HDBank and
other organisational investors, and individual stakeholders.
VietJet Air has been honored with prestigious awards in Vietnam and the world. At the “Budgies & Travel

Awards”, held in London, VietJet Air, along with SpiceJet (India), EasyJet (UK), Southwest (USA) and AirAsia X
(Malaysia), entered the list of “Top 5 Good New Routes” Best Reporter”. Promptly affirming its leading position,
the company has been awarded the title of "Airline with cultural entertainment and creative programs" by the
Asian Records Organization and won the "Golden Star Award for Quality" from Business Initiative Directions
(BID), Switzerland.

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 Profile of the company

Company VietJet Aviation Joint Stock Company

Founder Nguyen Thi Phuong Thao, Nguyen Thanh Ha

CEO Nguyen Thi Phuong Thao

Founded November 2007 (13 years

ago)

Headquarters Ba Dinh, Ha Noi, Viet Nam

Type Public

Products and Lounge, Private jet, In-flight meals, Unlimited entertainment with
Services hightech equipment, In-flight meals, Flight entertainment activities,
Shopping for unique souvenirs and talking with One 2 fly,…
Total Assets 48,859 billion VND (2020)

II. TYPE OF THE COMPANY AND PURPOSE

1. Type of the company
According to Tuoitrenews.vn, the year of 2017 became VietjetAir’s turning point to be the
first airline in Vietnam listed on the bourse when the company entirely finished its
publication process on the Ho Chi Minh City Stock Exchange (HOSE). As a result, along with
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 the non-governmental base, VietJet Air has public offering and up to
now, the company has also been owned by other organisational
investors, and individual stakeholders, besides these two parent companies. And the
company of Vietjet Air is public company

Vietjet air is a profitable company based on the following dividend payment and share capital increase
information sheet calculated from 2016 to 2020

Figure 3: Vietjet air profit of shareholders

A private-owned company is defined as a non-governmental organization and not owned by a relatively small
number of shareholders or company members. In other words, a close corporation does not offer or trade
company shares on the stock exchange market, yet those stocks are offered, owned and traded or exchanged
privately or over-the-counter. It is also called a closely held corporation, unquoted company, and unlisted
company.
Consistent with the definition of privately owned corporations, VietJet Air has so far been known as the first
private-owned airline in Vietnam and under the parent companies of Sovico Holdings and HDBank.

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 Figure 4: Shareholder Equities

2. Purpose

The purpose of the airline is to meet the increasing travel needs of domestic and international tourists by
providing on-time flights and high quality of services, contributing to bringing Vietnam's aviation industry into
the new era.

Vision:

• VietJet Air aims to become a global airline group with an extensive regional and worldwide flight
network, providing not only airline services but also consumer services across advanced ecommerce
platforms; a trusted and highly prestigious brand in the eyes of travelers all over the world.
Mission:

- Stated in VietJet Air annual report 2019, the airline carries the mission of continuously expanding its
flight network nationally, regionally and globally, bringing innovation to airline services, making air
travel the most popular form of transportation for Vietnamese and all people around the world and
bringing happiness and satisfaction to our customers by offering outstanding services, always with a
friendly smile.
Core Values: Safety – Fun and Friendly - Affordable price – Punctuality

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 Also in the company’s annual report, VietJet Air defined its core value as
safety, fun and friendly, affordable price and punctuality.
(VietJet Air, 2021)
Business Objective:
According to the most recent announcement made by the Board of Directors in 2019, Vietjet is aiming to
increase its foreign currency collection through ticket sales, which have benefited from lower fuel prices in
international markets, as well as increasing sales of ancillary goods, which have high profit margins

Activities during the COVID-19 pandemic:

 Transporting doctors, nurses and medical experts for free during the Covid-19 epidemic
 Presenting masks, medical instruments to help prevent the epidemic in the destinations where having
Vietjet’s flights
 Attended the meeting with Prime Minister Nguyen Xuan Phuc and Vietnamese leading private
corporations to discuss how to fight against the Covid-19 epidemic’s effect

3. Size
• Total assets
Total assets reached VND 48,859 billion, a 25% increase over the previous year. In 2019, the proportion of
short-term and long-term assets in total assets was maintained at 50.1 percent - 49.9 percent, indicating
financial structure stability.
When compared to the same period last year, short-term assets increased by 28.2 percent. Long-term assets
totaled VND 24,400 billion, a 22% increase over the same period last year, and accounted for 49.9% of total
assets.

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 Long-term receivables, in particular, increased 41.5 percent year on year
to 14,970 billion and accounted for 30.6 percent of total assets, owing
primarily to increased contributions to the aircraft maintenance reserve fund (+825 billion) and deposits for
aircraft received after 12 months (+2,780 billion). Deposits for aircraft leasing totaled +176 billion,
corresponding to the year's fleet development; deposits for office and commercial center rentals totaled
+623.5 billion. This is the monetary value of leased assets.
Figure 5: Annual report Vietjet Air 2019

• Owner’s equity

Since of retained earnings, capital has gradually increased owners' equity over the years. In 2019, owners'
equity, including treasury stocks, accounted for 35.3 percent of total assets, with retained earnings accounting
for the majority of the +3,265 billion increase.

Figure 6 : Owner's equity

• Total of liability

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 The total liabilities in 2019 VND 19,170 billion, a 28.3 percent
increase over the same period last year (2018), and accounted for
39.2 percent of total assets, primarily due to an increase in short-term loans of VND 3,203 billion and an
increase in unearned ticket revenue of 452 billion that will be recognized within the next 12 months. By
the end of the year, the unrealized revenue balance was VND 3,184 billion, expected to be realized and
allocated in the next 12 months.

Figure 7: Liability of Vietjet air

Despite headwinds caused by the Covid-19 pandemic, Vietjet airline budget recorded an earnings after tax of
70 billion dong ($3 million) in 2020. As a result, Vietjet was one of the few airlines in the world that has not cut
staff.

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 Figure 9: Revenue of Vietjet

Figure 8 : Vietjet's Human resources structure

In terms of employees, the airline’s total number of employees on December 31, 2019 is 5,092 employees, an
increase of 29.3% compared to 2018. During the year, Vietjet had a new recruitment of 1,154 personnel
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 including 284 pilots, 861 employees staff and other personnel at the level
of Directors, managers and employees members at the same time
developing internal human resources through the appointment of 78 new positions.

4. Scope

Figure 10: Vietjet Air tickets in Danang

According to the company's annual report, low-cost airline Vietjet Air is currently focusing on developing a
network of domestic routes in Vietnam and routes from Vietnam to countries in Asia. Up to now, Vietjet Air has
operated domestic routes to 17 cities: Hanoi, Hai Phong, Thanh Hoa, Vinh, Dong Hoi, Hue,
Da Nang, Chu Lai, Pleiku, Quy Nhon, Tuy Hoa , Buon Ma Thuot, Da Lat, Nha Trang, Ho Chi Minh City, Phu
Quoc, Can Tho. Vietjet Air's international flight network system spans to 20 cities in Asia: Ibaraki, Seoul,

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 Tianjin, Jinan, Busan, Kitakyushu, Shanghai, Ningbo, Hangzhou, Wuhan,
City Du, Qingdao, Kunming, Guiyang, Bodh Gaya, Yangon, Bangkok, Kuala
Lumpur, Singapore, Taipei. Vietjet Air's international routes are operated from 5 airports: Noi Bai, Tan Son
Nhat, Da Nang, Cam Ranh, and Can Tho.

Figure 11 Information page for Vietjet investors, 2021

Target customer
In a nutshell, VietJet is a low-cost airline that caters to middle-income and first-time flyers. They are usually
young, active people who are particularly adept at using technological devices such as smartphones, laptops,
and other similar devices.

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Figure 12: Vietjet Air lowers the measurement of Vietnam Airlines to become the largest airline in Vietnam
- Cheap flight tickets

From those provided information, in terms of business scale evaluation, VietJet Air's size has increased
significantly by 35% from year 2012 to year 2017. Plus, the chart above illustrates the huge change in
market share between the biggest airline corporation – Vietnam airlines and VietJet Air, which reflects the
rapid improvement in sales of VietJet. In the aspect of business scope, the fast expansion among networks
routes has supported the Vietnamese airline ranking of VJ Air, which affirms the company’s competitive
position in the market. Despite having been established way after Vietnam Airlines, VJ Air now becomes
the top airline corporation and the top of mind for most Vietnamese because of the high demand of
cheap and economical transportation.

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 III. Functions
Vietjet Air’s corporate structure is focused on functional structure. A
functional organizational structure is one that is used to organize employees. They are
organized into groups based on their specific skills and knowledge. It organizes each department
vertically, with roles ranging from the president to finance and sales departments, customer service, and
employees assigned to a single product or service. Functional organizations are made up of specialized
units that report to a single authority, which is usually referred to as top management. Each functional
unit is responsible for a specific aspect of the product or service offered, such as:
 Information Technology
 Marketing

 Development
 Research, etc

Figure 13 : Vietjeb organization structure chart

Meaning of structure of the company

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 • Information Technology: are incorporated into business
processes efficiently, from flight schedules, technical
maintenance to customer relationship management. This capability is very important since it
improves information delivery. Business data or details such as customer feedback, online sale
volume, flight schedules can be easily accessed with the application of information systems.
• Marketing: VietJet focuses on developing an image of a new-generation low-cost airline that targets
young and dynamic passengers. This approach is more suitable for the new generation of customers,
who are not the only price-oriented but also have high expectations for the service

• Development and research: Regarding R&D, Vietjet Air has a lot of capabilities in terms of
advanced technology and development. Firstly, the brand applies digital technology into
customer services and check-in, check-out process. Next, the airline has a good into
customer services and check-in, check-out process. Next, the airline has a good the airline also
employs advanced navigation technology to reduce flight time, costs, and environmental impact.
• The Board of Director: is in charge of overseeing the General Director and other managers, as well as
approving and directing the Company's strategy, main action plan, and risk management policy.
• The Supervisory Board: is the body authorized by the General Meeting of Shareholders to oversee all
of the Company's operations and business activities
• Accounting and Financial Management: oversee Accounting and Finance activities and prescribe
relevant policies for all matters of financial management and accounting of the Company, ensuring
finance – accounting of the Company is smooth, healthy, transparent, and in accordance with
applicable accounting standards. (ir.vietjetair.com,2018)

• Flight attendant: is in charge of the services provided to passengers on flights; guides and monitors
the safety of passengers during the flight; and provides other services such as meals and assistance to
passengers who require special care, such as children, pregnant women, disabled people, and elderly
people

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 Though VJ implies the functional structure meaning the high level of
specialization, any department relates to each other and works
together under the mission and vision of the company. To illustrate the close relationship among different
departments, as the technical division and the finance accounting division, the two division are opposite for
each departmental mission, however, they promptly connect together due to the fact that while the
technical division is in charge for maintenance, engineering and supply and store, the finance accounting
division will help to finance company's budget for such activities as well as record necessary
transaction/events that may come up

IV. Conclusion

Vietjet Air is the leading low-cost airline in Vietnam. The company operates a fleet of narrow-body aircraft
serving domestic and international short-haul and long-haul flights throughout Asia. Currently, the aviation
industry in Vietnam as well as some countries around the globe is being negatively affected by COVID-19.
However, Vietnam has fully restored domestic routes and is expanding its domestic network thanks to its
success in the fight against COVID-19. Therefore, it can be believed that Vietnam's aviation industry will recover
in the near future. In the short term, Vietjet has the ability to successfully overcome the pandemic and
minimize the risk of default. In response to the global COVID-19 outbreak, VJC has implemented a series of
powerful solutions to manage cash flow and minimize bankruptcy risk.
Specifically Vietjet Air operated its first commercial flight in 2011. VJC operates under a low-cost airline business
model providing short and medium routes, domestic and international point-to-point. With the absolute
advantage of traveling by air, VJC has successfully attracted the segment of low-middle-income customers that
make up the majority of the Vietnamese population. As a result, VJC surpassed Vietnam Airlines and became the
leading airline in the domestic market (accounting for 49% of the market share in 2018). By the end of 2019, VJC
had 78 aircraft serving 44 domestic routes and 95 international routes.

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V. Reference

VIETJET AIR AIRLINE PROFILE | CAPA, Centreforaviation.com. 2021. VietJet Air Airline Profile | CAPA. [online]
Available at: < https://centreforaviation.com/data/profiles/airlines/vietjet-air-vj > [Accessed 3 June 2021].

TRANG THÔNG TIN DÀNH CHO CÁC NHÀ ĐẦU TƯ VIETJET, Ir.vietjetair.com. 2021. Trang thông tin dành cho các
nhà đầu tư Vietjet. [online] Available at: < https://ir.vietjetair.com/Home/Menu/annual -reports > [Accessed 3
June 2021].

VIETJET AVIATION : SHAREHOLDERS BOARD MEMBERS MANAGERS AND COMPANY PROFILE |

VN000000VJC7 | MARKETSCREENER | M.marketscreener.com. 2021. VIETJET AVIATION : Shareholders Board
Members Managers and Company Profile | VN000000VJC7 | MarketScreener. [online] Available at: <
https://m.marketscreener.com/quote/stock/VIETJET -AVIATION-34602789/company > [Accessed 4 June 2021].

VIETJET AIR, Let Beauty we Love be What we Do. 2021. VietJet Air. [online] Available at: < https://hanhpho-
portfolio.weebly.com/vietjet-air.html > [Accessed 4 June 2021].

Ir.vietjetair.com. 2021. [online] Available at: < https://ir.vietjetair.com/File_Upload/financial information/annual-

reports-root/annual-reports/AR_VIETJET_FINAL%20seal%202606%20ENG.pdf > [Accessed 4 June 2021].

VJC: CTCP HÀNG KHÔNG VIETJET - VIETJET., JSC - TÀI CHÍNH | VIETSTOCKFINANCE | VietstockFinance. 2021.
VJC: CTCP Hàng không Vietjet - VIETJET., JSC - Tài chính | VietstockFinance. [online] Available at: <
https://finance.vietstock.vn/VJC/tai-chinh.htm > [Accessed 4 June 2021].

Wsj.com. 2021. VJC.VN | VietJet Aviation JSC Annual Balance Sheet - WSJ. [online] Available at: <
https://www.wsj.com/market-data/quotes/VN/XSTC/VJC/financials/annual/balance-sheet > [Accessed 4 June
2021].

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 Ir.vietjetair.com. 2021. Trang thông tin dành cho các nhà đầu tư Vietjet.
[online] Available at: < https://ir.vietjetair.com/Home/Menu/annual -reports > [Accessed 3 June
2021].

Ir.vietjetair.com. 2021. Trang thông tin dành cho các nhà đầu tư Vietjet. [online] Available at: <
https://ir.vietjetair.com/Home/Menu/annual -reports > [Accessed 3 June 2021].

danangfly.com. 2021. Vé máy bay Vietjet Air tại Đà Nẵng. [online] Available at: < https://danangfly.com/ve-
may-bay-vietjet-air-tai-da-nang.html > [Accessed 4 June 2021].

Ir.vietjetair.com. 2021. Trang thông tin dành cho các nhà đầu tư Vietjet. [online] Available at: <
https://ir.vietjetair.com/Home/Menu/annual -reports > [Accessed 3 June 2021].

Vé máy bay giá rẻ. n.d. Vietjet Air hạ đo ván Vietnam Airlines trở thành Hãng hàng không lớn nhất Việt Nam - Vé
máy bay giá rẻ. [online] Available at: < https://maybaygiare.vn/vietjet-air-ha-do-van-vietnamairlines-tro-thanh-
hang-hang-khong-lon-nhat-viet-nam.html > [Accessed 4 June 2021].

Ir.vietjetair.com. 2019. [online] Available at: <

https://ir.vietjetair.com/File_Upload/financial information/annual-reports-root/annual-
reports/AR_VIETJET_FINAL%20seal%202606%20ENG.pdf > [Accessed 4 June 2021].

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