ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 32: Business Strategy (574)

Submission date 3/8/2022 Date received (1st submission) 3/8/2022

Re-submission date Date received (2nd submission)

Student name Ha Tran Doan Thuc Student ID GBD201438

Class GBD0905 Assessor name Nguyen Huu Nam Phuc

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Table of Contents
PART 1. INTRODUCTION ............................................................................................................................................ 1

PART 2. REPORT ......................................................................................................................................................... 2

I. THE STRATEGIC CONTEXT OF THE COMPANY .............................................................................................................. 2

1.1. Mission, Vision, Values and Objectives of Vinhomes ............................................................................. 2
1.2. The role of business strategy to obtain business objectives and goals .................................................. 3
II. MACRO ENVIRONMENTAL AUDIT ............................................................................................................................ 4
2.1. Political factor .............................................................................................................................................. 5
2.2. Economic factor ........................................................................................................................................... 5
2.3. Social factor ................................................................................................................................................. 7
2.4. Technology factor ........................................................................................................................................ 8
III. INDUSTRY AUDIT............................................................................................................................................ 11
3.1. Threat of entry - Medium........................................................................................................................... 12
3.2. Competitive rivalry - High .......................................................................................................................... 12
3.3. Supplier’s power - Medium ........................................................................................................................ 15
3.4. Customer’s power (Buyers) - High ............................................................................................................. 15
3.5. The threat of substitute product ................................................................................................................ 16
IV. STAKEHOLDER ANALYSIS.................................................................................................................................. 16
4.1. Definition.................................................................................................................................................... 16
4.2. Vinhomes’s stakeholder analysis ............................................................................................................... 16
V. MAIN OPPORTUNITIES AND THREATS ..................................................................................................................... 21
5.1. Vinhomes’s opportunities .......................................................................................................................... 21
5.2. Vinhomes’s threats .................................................................................................................................... 22

PART 3. CONCLUSION .............................................................................................................................................. 23

PART 4. REFERENCES ............................................................................................................................................... 23

 PART 1. INTRODUCTION
VINHOMES – A system of apartments, villas and commercial townhouses with high-class services. Vinhomes is
the number 1 real estate brand in Vietnam, operating in the field of development, transfer, and operation of
mixed-use residential real estate in the mid and high-end segments. Vinhomes' projects all have prime locations
in key cities and provinces across the country. Vinhomes aims to not only build houses but also create a civilized
and classy living environment so that each house in Vinhomes is truly a "Place of overflowing happiness"
(Vingroup, 2022).

Figure 1. Vinhomes logo

In this report, the researcher will study and explain the external factors that impact the development of the
company's strategy generally and focus on Vinhomes' strategy particularly. There are five main sections in this
report: the first is the company's specific strategic context (which includes its vision, mission, values, and
objectives of Vinhomes). Secondly is the macro-impact environment on it using the PESTEL framework. Thirdly,
an industry audit for Vinhomes using Porter's 5 Forces and the next section is the stakeholder analysis. Finally,
researcher will analyze opportunities and threats.

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 PART 2. REPORT
I. The strategic context of the company
1.1. Mission, Vision, Values and Objectives of Vinhomes
Mission: To pioneer an ideal living experience in Vietnam’s urban locations, featuring professionally planned
residential complexes in harmony with nature, integrated facilities and a green environment, together forming a
new lifestyle for the Vietnamese people. Vinhomes also nurtures its communities and develops a modern, lively
and gracious environment, so that its residents will enjoy an excellent quality of life (Vinhomes Annual Report,
2021).

Vision: Vinhomes is the No.1 real estate development and management company in Vietnam, recognized for its
superior scale, execution speed, and service quality, leading the market to sustainable growth, with the vision of
becoming a world-class enterprise (Vinhomes Annual Report, 2021).

Core values: According to Vinhomes (2021), Vinhomes have 6 core values, including:

- Credibility: Vingroup vigorously protects its Credibility as one would protect his honor, continously
strenthening its deployment readiness and execution competences, and spares no effort in delivering its
commitments
- Integrity: Integrity lays the foundation for Vingroup where we stricly respect and comply with the laws
and ethical standards, putting the interests of our customers first.
- Creativity: Vingroup sees Creativity as its vitalizing catalyst for growth, embracing the entrepreneurial
spitit to build an enterprise of constant learning.
- Speed: Vingroup values Speed and Efficiency as the priciples of its Decision-making – “Fast to Decide. Fast
to Invest. Fast to Deploy. Fast to Sell. Fast to Change, and Fast to Adapt”.
- Quality: Vingroup’s commitment to high quality in its operations is expressed as: “Best in People. Best in
Products and Services. Best in Quality of Life, and delivering the Best in Society”.
- Compassion: Vingroup nurtures its relationships with Compassion, treasuring human capital as its most
valuable asset and harmonizing all the stakeholders’ benifits on the basis of fairness, integrity and solidarity.

Objectives: In 2022, Vinhomes aims to achieve revenue of VND 75,000 billion, profit after corporate income tax
of VND 30,000 billion. The company also approved the plan to pay a cash dividend at the rate of 20% to
shareholders, which is expected to be implemented in the third or fourth quarter of 2022 (Vinhomes Annual
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Report, 2021). In addition, within the next 5 years, Vinhomes aims to complete 500,000 social housing houses
across the country. The selling price of this social housing is expected to range from VND 300 million to VND 950
million/unit. The brand of the officially selected social housing product line is called “HAPPY HOME” (TTXVN,
2022).

1.2. The role of business strategy to obtain business objectives and goals
According to Vinhomes Annual Report (2021), Vinhomes has specific business strategies in 2022 to achieve the
above-mentioned objectives, including:

01. Land bank expansion throughout Vietnam

With a vision to develop super-mega projects in the coming years, the Company will seek opportunities to expand
its supply of developable land in the strategic locations of major provinces and cities, including Ha Noi, Ho Chi
Minh City and large, high potential sites in coastal areas.

02. Research and development of super-mega projects

After the successful development of hundreds of hectares of megacities, Vinhomes will pursue the development
of prominent large-scale urban complexes, and comparable to other super megacities in the world. These will be
coastal or riverside ecological projects with complete transport systems along major national highways and
arterial roads. The projects will be uniquely designed with signautre buildings and high-end facilities. Advanced
technologies will be used for operations management and superior green solution offerings. Vinhomes constantly
attempts to achieve breakthroughs in the development of state-of-the-art projects in Vietnam that rival premier
international projects.

03. Continued focus on strong and comprehensive digital transformation

Vinhomes will consistently improve and upgrade platforms in the O2O (Online to Offline) ecosystem to support
its business activities, enhance operational efficiency, and improve the customer experience. The company will
also promote the development of a high-level smart city model to manage and operate super mega projects in
the future.

04. Expand sustainable recurring revenue through business diversification

The core residential property business, Vinhomes will further expand such products and services as services as
serviced apartments, serviced villas and office leasing. These new products will generate stable recurring revenues
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and will help buld Vinhomes’ brand equity. In addition, the Company also promotes industrial park development
– a fast-growing business with high potential that is expected to be among the mainstay activities of Vinhomes in
the future.

05. Developing human capital. Human capital development has long been a Vinhomes priority

Developing human capital supports the Company’s aggressive growth strategy by adding to staff knowledge and
skills to respond more effectively to customer needs. In parallel with staff traning, the Company also builds its
pool of management talent to prepare for new projects.

 It can be seen that Vinhomes will start a new development cycle with the development of new mega-cities
and mega-projects from a few hundred to several thousand hectares, continuing to transfer the land fund to
secondary investors to develop new project components from 2022. From the specific business strategy,
Vinhomes assesses that the above target sales are completely feasible, especially after the positive signal of the
market when opening the Vinhomes the Empire Hung Yen project for sale. Demand in the real estate market is
still very large, especially for low-rise products. At the same time, Vinhomes will also maintain the strategy of
selling large lots with reputable and potential partners and customers to diversify products as well as reduce risks
in the process of completing projects.

II. Macro environmental audit

This report will analyze macro environment in Vietnam by using PESTEL framework, including Political, Economic,
Social, Technology, Environmental, Legal. However, before proceeding with the business strategy, researcher
needs to conduct a macro-environmental audit to analyze how macro factors influence the decision-making of
Vinhomes. These elements in this framework will be clarified to understand how they impact to strategy of
Vinhomes.

Figure 2. PESTLE model

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 2.1. Political factor
From the perspective of Perera (2017), the political environmental factors include political stability íntability,
political consequences, changes in government constitutions, changes in political and national policies,
goverment actions, government stability, government support to the industry and the organization, impact of
government policies. In addition, the political environment is a highly significant consideration to a business
especially if it is a foreign company where in general, political support is essential for the success and penetration
of the market. Furthurmore, the political pressures or consequences are high considering a business that drives
the key incomes to the country. Overall, the political environment is of highly significant that defines the country
risk, political and operation risk. However, as mentioned above strategies and actions can be taken to minimize
possible negative effects.

According to Annual Report of Vinhomes (2021), 2022 is a pivotal year that will lay the foundation for the five-
year development plans of 2021 to 2025. The Gorvernment has issued guidelines and plans on safe and flexible
adaptation and effective control of the pandemic, while staying ready for every opportunity to boost socio-
economic recovery and development in order to maintain long term growth momentum. Especially, Vietnam’s
industrial parks are expected to become a bright spot on Southeast Asia’s investment map, engaging many
international investors. This trend is backed by political stability. In addition, both central and local authorities
have continued to complete and improve the inter-provincial and inter-regional transport infrastructure to
promote socio-economic development and help attract both dometic and foreign investors (Vinhomes Annual
Report, 2021).

It can be seen that the Government proposed to amend a series of regulations on the construction of houses and
urben areas during the extraordinary session of the National Assembly. With this positive signal, a series of legal
difficulties related to the real estate market have been focused on removing in the period of 2020-2021, but it
will have to wait until 2022 for new regulations to be gradually implemented to life. However, due to the large
legal delay usually new regulations will come into practice in 6-9 months, therefore during the waiting time for
legal clearance, the real estate supply will still be affected and housing price still tend to increase in the first
quarters of 2022.

2.2. Economic factor

According to Perera (2017), economic factors are critical to organizational success and can be considered to be of
most significance. Some of the critical economic factors includes age-related factors, age structure, income levels,

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the disposable income of the country, poverty considerations, employment and unemployment rates, tax rates,
inflation rates, and so on. Therefore, it is clear that economic factors play a critical role in the external
environment of the business that should be considered.

In recent years, the economy of Vietnam has undergone rapid and noticeable development. The World Bank
Group (2022) estimates that from 1984 to 2021, Vietnam's GDP per capita averaged 1576.03 USD, with a record
high of 3373.08 USD in 2021 and a record low of 577.47 USD in 1984. Additionally, based on projections from
experts and Trading Economics' global macro models, Vietnam's GDP per capita is predicted to reach 2070.00
USD by the end of 2022 (The World Bank, 2022). Long-term estimates indicate that the Vietnam GDP per capita
will tend to trend around 2070.00 USD in 2023. In 2021, Vinhomes made around 38.8 trillion Vietnamese dong in
profits after taxes (Ngoc, 2022). Vinhomes was founded by Vingroup and is one of the largest commercial real
estate developers in Vietnam. According to Vinhomes Annual Report (2021), with its resolution on fiscal and
monetary policies and a support package worth nearly VND 3500 trillion for socio-economic recovery and
development, the National Assembly targets a GDP growth rate of 6 to 6.5% in 2022, GDP per capita of USD 3,900
and CPI of under 4%.

Figure 3. Key financial indicators for the period of 2018-2021 (Source: VinhomesAnnualReport)
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It can be seen that Vietnam can embrace this opportunity to keep pace with the global economic recovery, backed
by a series of new-generation free trade agreements with economic blocs (Vinhomes Annual Report, 2021).
Vietnam has a great opportunity to boost its trade surplus in 2022.

2.3. Social factor

From the perspective of Perera (2017), the traditions, cultureal aspects, norms, myths, religious values, religious,
ethical values, perceptions, and attitudes towards the business and the industry within the operating market
should be considered here. The business environment is linked with the cultural and traditional values of the
country and thus adapting to these cultural values is important for better performance, higher productivity, and
achievement of growth targets. Most of the economies or people show high resistance to changes in socio-
cultural environmental factors that need to be addressed when introducing goods and services.

By the end of 2021, the population of Vietnam is projected by experts and global macro models from Trading
Economics to reach 98.70 million people. Vietnam's population is anticipated to trend around 99.70 million people
by 2022 (General Statistics Office of Vietnam, 2022).

Figure 4. The Vietnam Population trend (Source: General Statistics Office of Vietnam)

In Vietnam, Vietnamese people have a kind and friendly nature with 97 million people are populating Vietnam
approximately. However, the middle class has been growing at an exponential rate, and it would reach 26% by
the end of 2026. According to TTXVN (2022), Vinhomes announced the implementation of social housing projects
under the Happy Home brand nationwide. Within the next 5 years, Vinhomes is expected to complete 500,000
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social houses. Accordingly, Vinhomes will deploy social housing projects under the Happy Home brand
nationwide. Vinhomes said Happy Home are independent urban projects, separate from Vinhomes's commercial
housing projects, or social housing plots in Vinhomes's mega-projects. The enterprise emphasized that Happy
Home is the first "full utility" social housing model in Vietnam with a full and convenient utility ecosystem,
ensuring a good quality of life for residents such as a children's play area, sports ground, park with a scale suitable
for the segment The expected selling price for apartments ranges from 300 million to 950 million dong/unit.
Vinhomes expects Happy Home with a different and superior model compared to existing social housing projects
will contribute to redefining this segment, completely changing stereotypes about construction quality, lack of
utilities. poverty or low quality of life in housing projects for low-income people (Vingroup, 2022).

Figure 5. Vinhomes's objectives in the next five years (Source: kinhtemoitruong, 2022)

2.4. Technology factor

According to Perera (2017), this is highly relevant for a technology-based industry. Factors such as technical
competency, the productivity of technology, updates, hardware, and software should be considered here.

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Moreover, technology can be used in the organizational process to improve the effectiveness of the decisions
taken. To sum up, technology has become a vital part in the function of marketing where online strategies has
taken over the traditional marketing strategies that were offline. Social media and digital strategies such as SMS,
Email, SEO, GPS marketing have become crucial in the intergrated marketing communications mix.

According to VinhomesLand (2020), the investor Vinhomes is the number 1 real estate brand in Vietnam and is
considered the first flag to pioneer the trend of "real estate 4.0". With the leading position in the real estate
"field", Vinhomes has affirmed its vision and acumen when anticipating new consumption trends in the future.
Vinhomes Ocean Park project pioneers to apply the 4.0 technology revolution to build new forms of approach,
giving customers unique and interesting experiences. With the support of modern technology, the birth of online
platforms blows a new wind in business investment and creates momentum for the real estate trading floor to
grow. Along with that, customers can visually view the project in 3D with detailed information related to the
project on the mobile application. And from there, you can make a choice and decide to invest in the project
quickly and easily. Thanks to the application of the 4.0 platform, Vinhomes customers can quickly and easily access
each project, especially those who are passionate about technology and foreign customers who approach projects
remotely. The target of Vinhomes is aimed at customers in the mid-high-end segment (VinhomesLand, 2020).

Figure 6. Vinhomes sells goods on an online platform (Source: vinhomesland, 2021)

At the super projects of Vinhomes are Vinhomes Ocean Park Gia Lam apartments; Vinhomes Smart City; Vinhomes
Grand Park is currently being applied by this investor with a technology model; modern management with a series

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of smart city model applications to bring great convenience to customers as well as create livable urban areas;
Large green living environment, designed in harmony with nature. Especially the application of the most modern
technology. In addition, Vinhomes also applies technology to organize online events, including Online panel
discussion, Livestream session with real estate experts to discuss the privileges of the Origami buyers, Series of
online talk shows about living trends and lifestyle, to maintain customer interaction during social distancing
(Vinhomes JSC, 2021).

Figure 7. Vinhomes Online Events to Maintain Customer Engagement During Social Distancing

(Source: Vinhomes Joint Stock Comapny, 2021)

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CONCLUSION: It is clear from this macro-environmental research that the real estate industry is attracting more
attention and is thought to have enormous potential. Vietnam is also a prospective market for all major
businesses, particularly Vinhomes, with a population of over 96 million. Aside from that, the key driver of change
in Vinhomes is the Economic factor which shows some other crucial details and serves as proof of the economy's
amazing ability to bounce back from crises, most recently the Covid-19 epidemic. In particular, analysts believe
that the most important local and global economies anticipate that Vietnam's economic development would be
even more robust in 2022. After two pandemic years, now is a chance to assist Vinhomes grow even further.
Vinhomes intends to attract middle-class and upper-class clients more swiftly because to the class's exponential
growth, which will see a 26 percent representation by the end of 2026 when combined with social and technical
considerations. In addition, technology is rapidly growing, and Vinhomes is able to use this to grow its business.
It is clear that external variables have a big impact on Vinhomes' development and outreach to the outside world.

III. Industry audit

When developing and choosing a strategy, the elements of an industry are taken into consideration. Additionally,
a range of techniques may be used to assess and build a successful plan for the firm. This report uses Porter’s Five
Forces to analyze the level of competitive factors in the Trade – Service industry sector in Vietnam. The five basic
forces include threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of
substitutes, and rivalry among existing competitors.

Figure 8. Porter's Five Forces (Gerry Johnson, Richard Whittington, Kevan Scholes, Duncan Angwin, Patrick Regnér, 2014)
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 3.1. Threat of entry - Medium
According to VinhomesNews (2021), Vinhomes's barrier recently is the connection between owners and
homebuyers in the secondary real estate market. While the primary real estate market is where the investor sells
their products to customers, the secondary real estate market is where the products are exchanged, bought, sold
and transferred by the owners with a value of money attractive returns. About Vinhomes, O2O (Online to Offline)
is a real estate business model after the owner buys a product of Vinhomes and has a need to sell, transfer, or
lease it through the Vinhomes bridge without having to go through any intermediary agency. In other words,
Vinhomes will be a direct bridge between owners wishing to transfer real estate products at Vinhomes projects
and home buyers. However, this method does not always work. In many cases, the results received are "bombs",
messages, phone calls... making the seller both time consuming and tiring. Complicated transaction procedures
and documents also make many sellers easily frustrated. Meanwhile, people wishing to buy secondary houses
often face many risks such as unclear legality, cumbersome purchase and sale procedures, high "team" prices if
real estate products have passed many owners. These difficulties will be solved with Vinhomes' O2O model. This
will definitely be the first and reliable search channel for customers wishing to buy secondary real estate. Thus,
both for home owners and home buyers, problems related to customer sources, product information and
transaction procedures are all solved by Vinhomes in a streamlined and efficient manner through the O2O model.

3.2. Competitive rivalry - High

According to Vinhomes Annual Report (2021), Vinhomes is the leading real estate company in Vietnam. Vinhomes
successfully maintains its leading position in residential real estate market with a large land bank of 153 million
m2. In addition, a portfolio of 22 projects, especially three mega urban projects in Hanoi, Ho Chi Minh City and
key cities would help the company ensure profit growth and maintain market share in the coming years.
Vinhomes' real estate projects have a great competitive advantage thanks to Vingroup ecosystem. Vinhomes also
faces barriers in the middle and upper real estate segment, this is a market with a lot of potential as well as high
growth, so there are many domestic and foreign investors who want to invest in this market this field. It can be
seen that Vinhomes has to compete strongly with rival companies such as Sheldon Adelson in the Casino chain,
Novaland, FLC Group Joint Stock Co, Cuu Long Petro Urban Development and Investment Corp, and so on
(Vinhomes JSC, 2021). Therefore, high competitiveness with potential rivals.

For example, compare the profitability between Vinhomes and Novaland of the two richest real estate billionaires
in Vietnam (Cafebiz, 2022). Vinhomes’ business strategy is to develop mega-projects with a scale of thousands of

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hectares after the success of megacities such as Times City, Vinhomes Ocean Park. Meanwhile, Novaland
proactively and flexibly adjusted its business plan according to the market situation, launched mid- and high-end
product lines with appropriate financial packages, meeting the needs and affordability. customer payment. The
founders of these two businesses are the two richest real estate billionaires in Vietnam – Mr. Pham Nhat Vuong
and Mr. Bui Thanh Nhon. Firstly, Gross profit margin is the first and most important level of measuring the
profitability of a business. Considering the period from 2013-2021, the gross profit margin of Vinhomes and
Novaland has doubled. This index of Vinhomes increased from 26% to 57%, Novaland increased from 20% to 41%.
However, Vinhomes’ gross profit margin is more volatile, while Novaland’s is quite stable and has a steady upward
trend (Cafebiz, 2022).

Figure 9. VHM's gross margin is superior but also more volatile than NVL (Source: cafebiz, 2022)

The median gross profit margin of Vinhomes and Novaland at 34% and 28%, respectively, also shows that the real
estate industry has a high level of competition, but not to the extreme.

Secondly, operating margin is a financial indicator that shows how much operating profit a business can earn,
after deducting all costs for production activities. This indicator has a significant difference between Vinhomes
and Novaland. Considering the period from 2018-2021, Vinhomes’ gross profit margin has always maintained at
more than 50%. Meanwhile, this figure of Novaland fell to 5% in 2019 then bounced back to 100% in 2020 (Cafebiz,
2022)
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 Figure 10. VHM's operating profit margin is more stable than that of NVL (Source: cafebiz, 2022)

Finally, Net Profit Margin (Net Profit Margin) is the percentage of profit after tax that a company earns from each
dollar of sales. Similar to operating profit margin, Vinhomes has maintained this index at a high level of over 38%
in recent years. Meanwhile, Novaland’s net profit margin fluctuates strongly in the range of 0-78%. With a median
of over 20%, it can be seen that real estate is a very good money-making industry for both billionaires Pham Nhat
Vuong and Bui Thanh Nhon (Cafebiz, 2022).

Figure 11. VHM's net profit margin is more stable than NVL (Source: cafebiz, 2022)

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It is clear that competitors in Vinhomes's high-end real estate segment shown above which are strong financial
enterprises, so they compete very strongly with the Company. Therefore, Vinhomes mustimprove its service
quality, and create a unique brand for the product on the market.

3.3. Supplier’s power - Medium

According to VinhomesNews (2022), In the field of real estate, suppliers have a very important role in completing
projects and activities of the company, Vinhomes's sources include:

- Raw material suppliers: Company leaders recognized the high price of raw materials in recent years,
affecting construction costs of projects. However, the company has taken measures to fix it. They have worked
with suppliers and suppliers to have the most optimal cost. In addition, businesses also invest in products to
increase value in the eyes of customers (VinhomesNews, 2022)

- Financial suppliers: Vinhomes Joint Stock Company, formerly known as BIDV-PP Urban Joint Stock
Company, was established in 2008 with an initial charter capital of 300 billion VND and Ernst & Young Vietnam
Company Limited is a financial provider audit firm for Vinhomes (Vinhomes Annual Report, 2021)

3.4. Customer’s power (Buyers) - High

For Vinhomes, the customer resources that the Company targets will depend on the products that the Company
creates. That is, Vinhomes product lines are classified according to 03 standards Sapphire, Ruby and Diamond
with diverse areas, smart designs, suitable for the preferences and financial conditions of many customer
segments (VinhomesNews, 2022).

- Vinhomes - Vinhomes Sapphire product lines are aimed at customers

+ A group of young dynamic guests with good income and accumulation, want to enjoy an independent and
comfortable life

+ Newlyweds or families with 1-2 small children, looking for a comfortable living space for the whole family in
parallel with the goal of financial accumulation

+ Short-term and long-term investment group (buy and rent)

+ Group of foreign guests working in Vietnam

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 - Vinhomes - Vinhomes Ruby product lines: With a more advanced positioning, Vinhomes Ruby apartments
are aimed at families with good savings and income, knowledgeable and civilized community of residents who
want to experience a luxurious life Full service, high-class facilities. On the other hand, Ruby standard apartments
are also suitable for investors with idle cash flow or foreign experts coming to Vietnam to work.

- Vinhomes - Vinhomes Diamond product lines: With the highest price in the Vinhomes product lines,
Vinhomes Diamond is aimed at the elite who want to affirm their personal level such as: successful businessmen,
directors, gender artists, engineers, foreign experts working in Vietnam, etc..

In conclusion, due to their high income levels, Vingroup's clients do not really worry about money; instead, they
are more concerned with the kind of service they receive and how happy they are with the products they
purchase. As a result, Vingroup has been under intense pressure to improve the design, positioning, and raw
material quality. For Vingroup, buyer power is extremely strong.

3.5. The threat of substitute product

The threat of substitution is quite minimal for Vingroup since its target market consists of high-net-worth
individuals and luxury real estate items that are challenging to be replaced by new product lines.

IV. Stakeholder analysis

4.1. Definition
Accordingn to Whittington, et al., (2019), Strategic decision-making is influenced by stakeholders' perceptions.
The direction of the organization is determined by stakeholders. Stakeholders, to use a more official term, are
people or organizations that depend on another entity to help it accomplish its own objectives. There are two
types of parties involved: Internal stakeholders, including manufacturing lines, local authorities, and employees
at various levels of the hierarchy External stakeholders are those who are not employed by a company but who
are still impacted in some ways by its performance and activities. Vendors, investors, and public bodies are all
examples of external stakeholders.

4.2. Vinhomes’s stakeholder analysis

- Managers:

Table 1. Members of the management during 2021-2022 (Source: Vinhomes Annual Report, 2021)

Name Title

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 Mr. Pham Thieu Hoa Chief Executive Officer & Director
Mr. Douglas John Farrell Deputy Chief Executive Officer
Mr. Nguyen Duc Quang Deputy Chief Executive Officer
Mr. Pham Van Khuong Deputy Chief Executive Officer
Ms. Nguyen Thu Hang Deputy Chief Executive Officer
Ms. Mai Thu Thuy Deputy Chief Executive Officer
Mr. Nguyen Ba Tin Deputy Chief Executive Officer
Mr. Nguyen Vu Hung Deputy Chief Executive Officer
Mr. Nguyen Anh Dung Deputy Chief Executive Officer

It is clear that managers actively participate in organizational choices and play a significant influence in shaping
the company's strategy. Managers frequently assume accountability for actions and act as a liaison between
shareholders, the management board, and the business itself. The success of a company in the future may be
greatly influenced by a senior manager of research and development. Therefore, how this community of internal
stakeholders is handled will determine how competitive, growing, and sustainable a company organization is.
They are in charge of attaining the aims and objectives of the company. Owner and honorary president of
Technocom Co., Ltd. in Ukraine from 1993 to 2009 is Mr. Pham Nhat Vuong. Bachelor of Geological Economics
from the Geological University of Moscow, Russia, awarded in 1992.

- Shareholders:

Table 2. Shareholders of Vinhomes (Sources: VinhomesAnnualReport, 2021)

Name Equities %
Vingroup Joint Stock Company 2,902,482,482 66.7%
GIC Pte Ltd. (Investment Management) 266,747,615 6.13%
Viking Asia Holdings li Pte Ltd. 241,592,000 5.55%
P&S Investment Business & Trade JSC 116,745,200 2.68%
Dragon Captical Management Co. Ltd. 48,323,553 1.11%
PYN Fund Management Ltd. 35,723,740 0.82%
Matthews International Capital Management 22,415,510 0.51%
LLC

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 VinaCapital Investment Management Ltd. (Invt 22,089.734 0.51%
Mgmt)
Norges Bank Investment Management 16,506,428 0.38%
Fubon Asset Management 14,881,810 0.34%

Any of the most significant stockholders or financiers of a company's operations. Even though they might not be
actively involved in corporate activities, shareholders nonetheless provide cash to corporations. Additionally, they
directly influence the company's strategic aims. According to Vinhomes, the company's annual earnings are
constantly increasing in order to fulfill shareholders' desires to maximize profits. As a result, Vinhomes has
established a reliable financial source for investors, fostering their confidence and encouraging them to keep
investing in the company.

- Government: Government of Singapore (GIC)

Government taxes on corporations have a big impact on their development. Governments might be seen as the
main actors who gave the profit motivation. Additionally, governments have regulatory oversight to make sure
that firm representatives adhere to legal, ethical, and accounting requirements. Government policies on business
assistance have a significant influence on Vingroup's operations, including production and the creation of
subsidiaries. Whether Vingroup pays high or low taxes always relies on these policies. According to Ha Anh (2022),
Government of Singapore (under the Government of Singapore) announced that it has purchased 612,000
Vinhomes shares, bringing the holding volume to more than 218.2 million shares, equivalent to an increase in
ownership ratio from 4.99% to 5.01%.

- Employees:

The number of the Company’s employees as at 30 June 2022 is 8,912 employees (Vingroup, 2022). With Vinhome,
the employees are the main internal stakeholders. Employees have a critical role in the organization's policies and
organizaitons, and have a great deal of interest in the business and its resources. Controlled organizations that
include employee perspectives, concerns, and values while shaping the company's strategy, vision, and objectives.
The success of Vinhomes is greatly influenced by its personnel. In addition, human activity is also one of the most
precious and crucial resources for Vinhomes.

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 - Competitors:

Figure 12. Vinhomes's competitors (Source: miraeasset, 2022)

- Investors:

According to VinhomesNews (2022), The owner of Vinhomes, formerly known as BIDV Urban Joint Stock Company
- PP, was established in 2008. This is a real estate brand under VinGroup. The Group operates in many different
fields such as technology, industry, trade and service, real estate... Established in 1993, VinGroup has become a
prestigious brand name that resonates greatly in the Vietnamese market. Male. Since its establishment, the
investor Vinhomes has built for himself a long-term vision and a consistent and sustainable development
perspective over the periods. Therefore, Vinhomes has achieved many successes, reflected in prestigious awards,
including:

• Vietnam Gold Star AwardTop 10 strongest brands in Vietnam

• Top 10 excellent commercial service enterprises
• Enterprise with the best capital market transactions in Vietnam in 2012
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Not only that, the products built by the investor are also honored at major awards such as:

• Vinhomes Riverside project won the Asia Pacific real estate award in 2013 in the category of Best Complex
Project in Asia Pacific
• Vinhomes Royal City project won the 2014 Asia Pacific real estate award in the category of Highly
appreciated Complex Project
• Vinhomes Smart City and Vinhomes Grand Park projects won prestigious awards in the Asia - Pacific Real
Estate Awards (APPA) in 2021, including:

+ Vinhomes Smart City project: the most sustainable housing development project in Vietnam and the
best mixed-use project in Vietnam.

+ Vinhomes Grand Park project: the best high-rise housing project in Vietnam

• Vinhomes Ocean Park project received the award of Best Complex Project in Vietnam at the Asia - Pacific
Real Estate Awards (APPA) 2019.

- Suppliers:

Currently, Vinhomes real estate projects are simultaneously using 2 unique materials to put into construction.
Technology & Materials to build Vinhomes real estate project (Eosland, 2022).

Firstly, using Low-E glass, which is coated with a special compound to help the glass have slow heat emission,
reduce dispersion, slow heat absorption and slow down the process. heat transfer but still ensure the brightness
in the room. This confirms the preeminent features of apartment products at Vinhomes real estate projects such
as Vinhomes Lieu Giai, Vinhomes Pham Hung, helping to keep the rooms warm in winter and cool in summer.
especially suitable for construction works in areas with tropical monsoon climate like in Vietnam. Thereby, with
the use of Low-E glass, it will maximize the cost of air conditioning in the room while still maintaining the maximum
brightness and aesthetics (Eosland, 2022).

Secondly, using ETFE material instead of glass installed on the roof of the indoor swimming pool. Currently, ETFE
is applied in many famous projects such as Beijing Aquatics Center for the 2008 Olympic Games (China), Eden eco-
zone in Comwan (UK ... Compared with traditional glass materials, ETFE only accounts for 1/100 of the weight,
transmits a lot of light, has high aesthetics (Eosland, 2022).

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Always using the most modern advanced construction technologies and exceeding the committed construction
schedule, real estates located in the golden location of Vinhomes such as: Vinhomes Giang Vo, Vinhomes Pham
Hung, Vinhomes Cao Xa La, Vinhomes Lieu Gia will always be of interest to customers (Eosland, 2022).

V. Main opportunities and threats

5.1. Vinhomes’s opportunities
a) People's income is high

Through the analysis of Vinhomes, we can see that most of Vingroup's income is through products and services
such as real estate business, trade centers and resort tourism services, especially especially the real estate
industry. Therefore, the increase and improvement of people's income is a very important factor for the
development of Vingroup in general and Vinhomes in particular.

The economy of Vietnam has rapid and noticeable development. The World Bank Group (2022) estimates that
from 1984 to 2021, Vietnam's GDP per capita averaged 1576.03 USD, with a record high of 3373.08 USD in 2021
and a record low of 577.47 USD in 1984. 2021 and 2022, however, are strongly impacted. of the COVID-19
epidemic with a delta variant, but Vietnam's growth is expected to recover to 5.5% in 2022 (The World Bank,
2022).

With positive data about a developing economy and constantly improving and increasing people's income,
Vingroup's products and services will certainly be welcomed in the near future.

b) Expansion of the service market

People's income increases, which means people's living standards will improve. This means that the requirements
for service quality will be higher and high-quality products will be more interested and selected instead of cheap
as in the past. Especially, in recent years, the increasing urbanization trend along with the demand for housing
and urban structure makes the real estate industry hot again. After the COVID epidemic with potential economic
development, the real estate and resort tourism market will continue to recover. These are the factors that make
Vinhomes' products and services the first choice of consumers. For example, instead of buying a moderately
priced apartment with good quality to live in like in the past, consumers can consider Vinhomes products, with
higher quality and service, accompanied by high quality products with services in the Vin ecosystem such as
Vinschool, or Vinmec…

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 c) Many prime locations

Vingroup is a large multi-industry corporation, however, one of the industries that brought great profits to
Vingroup in the beginning was the real estate industry. With investment strategies and real experience, Vinhomes
has become the "king" in the real estate field in Vietnam with a series of projects and complexes of large
commercial centers, offices for rent or houses. high-class. One of the success factors of Vinhomes' real estate
projects is choosing beautiful and prime locations. In addition, Vingroup also has many real estate projects for
houses, villas and services, located right in Hanoi along with major cities such as Vinhomes Royal City, Vinhomes
Nguyen Chi Thanh, Vinhomes Central Park New Port and The Landmark 81… These are all places that are
considered to have beautiful locations and high potential for development in the future.

d) Opportunities from the administrative mechanism

Since reunification, Vietnam has always been a country with a stable political background with steady economic
growth year after year. In order for the country's economy to develop further, the Government always has
support for businesses, especially large-scale enterprises, especially the real estate industry, Vinhomes. The
preferential policies on tax and interest rates as well as the expansion of the real estate market are opportunities
for Vingroup in the present as well as in the future. Not only that for the tourism service industry, many localities
across the country wish to have the opportunity to expand the local tourism industry such as Thua Thien Hue,
Quang Nam, etc.

5.2. Vinhomes’s threats

a) Slow growing business market
Although Vingroup is a multi-industry corporation with its strength in real estate. However, competition is
inevitable. In recent years, the level of competition in the market for leasing commercial space, retail space, office
space and apartments is becoming increasingly fierce. In particular, Vinhomes has to deal with "internal enemies"
which are domestic enterprises such as Bitexco Group, Tran Anh Group, Novaland, Dat Xanh Group, Hung Thinh
Corporation, Hoang Anh Gia Lai Joint Stock Company ... and "enemies" outside” are foreign corporations such as
Ciputra Group, Land Capital, Keppel Land, etc.
b) Import of high technology
Another challenge for Vinhomes is complicated administrative procedures. Administrative procedures in Vietnam
are always considered to be very complicated and confusing, with many different stages. For real estate, an
industry with huge cash flows, these administrative procedures become even more complicated.

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 c) Complicated administrative procedures
Technology is a factor that helps affirm the position of Vingroup with many product lines using the most advanced
and second-class modern technology in the world. However, most modern technologies in Vietnam must be
imported from abroad at present. This greatly affects Vinhomes's initiative in developing new products as well as
mastering the market.
d) Influence from suppliers
Vingroup is the largest real estate investment group in Vietnam, so in order to ensure the supply of products to
customers, the company also needs a source of raw materials to create products. However, in recent years, with
the impact of the COVID epidemic as well as the war between Russia and Ukraine, the price of raw materials has
escalated. This will significantly affect the sustainable development of the group. Not to mention the impact of
the COVID epidemic in the last two years, which has made the country's economy more bleak than ever, the stock
trading output has continuously decreased, making it difficult for many businesses, including Vinhomes can access
capital from potential domestic investors.

PART 3. CONCLUSION
This research used PESTEL analysis to clarify the opportunities and risks by looking at how the macroenvironment
affected Vinhomes and its policies. Additionally, the Porter Five Forces model was examined to evaluate for the
organization the competitive advantages and advantages of stakeholder research for a particular business
industry. In addition, the stakeholder analysis highlights the relevance of stakeholders in the creation and
evolution of business strategy. Furthermore, there is clear definition of the possibilities and hazards, as well as
supporting data.

PART 4. REFERENCES

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