Question 2: Vietnam USA Society English Center (VUS) – Nguyen Nghiem Ward,

Pho Duc Town, Quang Ngai Province.

1.1. Choose a company.
VUS English Center: Nguyen Nghiem Ward, Duc Pho Town, Quang Ngai Province. The
economy of our nation is integrating with a high degree of "openness," which is fostering
an atmosphere that is conducive to foreign companies making significant investments in
Vietnam. For Vietnamese human resources to be prepared to engage in a professional
working environment with competitive salary levels at global enterprises, they must arm
themselves with foreign language abilities, particularly in English. Furthermore, the
annual rate of economic growth is around 7.03%. The need to acquire other languages,
particularly English, is growing as the economy becomes more open-minded (Yến,
2023). This is also the reason why, in recent years, students' needs to learn English have
tended to be "expanded" in terms of topics, rather than restricted to younger student age
groups or those who already need to study English.
Seeing this potential, our team decided that the next location for the VUS English center
network should be Nguyen Nghiem Ward, which is experiencing significant economic
growth and rising living standards. One of the top English language centers in Vietnam is
the VUS English Center. After experiencing fast growth, the organization now runs over
70 English language training facilities throughout cities and regions.

1.2. Feasibility analysis

1.2.1. Market feasibility

With a total population of 1,244,130 in 2021, Quang Ngai is regarded as a crucial

economic area in Central Vietnam, and Duc Pho Town has a total population of 112,592
people (Thống kê dân số tỉnh Quãng Ngãi, 2023). A comparatively comprehensive,
cohesive, and varied national education system at every level, from preschool to
postgraduate, has now been established in Quang Ngai province. There are 25
kindergartens, 28 elementary schools, 15 middle schools, and 9 high schools in Nguyen
Nghiem Ward. In addition, there aren't many well-known English centers in the region.
As a result, there is little competition from other English-speaking centers. In terms of
geographical location and current economic situation, Quang Ngai province in general,
and Nguyen Nghiem ward in particular are experiencing significant economic and
people's life development. In 2022, the overall economic picture of Quang Ngai province
has many bright spots, exceeding 25/25 socio-economic targets and GRDP per capita
reaching 97.67 million VND. Moreover, the system of district roads, commune roads,
village roads, hamlets, and city blocks in Nguyen Nghiem district has been asphalted and
91–97% concrete (Tuan, 2022). Along with that, agricultural infrastructure, irrigation,
electricity, healthcare, culture, and education, especially English education, receive
strong investment attention to integrate with the international economy. Not only that,
foreign investors are investing heavily in the Quang Ngai market, contributing to solving
employment needs for tens of thousands of local workers. Therefore, this is considered a
promising and potential market to expand the VUS English center chain due to strong
development as well as improved people's living standards, and it is expected to continue
to grow strong in the future because the need to learn foreign languages is increasingly
becoming a trend for integration.

1.1.1. Market trend

Since the early 1990s, the success of the open policy of international integration has
brought English "to the throne" and made it the most popular foreign language in
Vietnam. Future trends in foreign language learning include:

 Change the foreign language output standards of university graduates from

national certificates A, B, and C to international certificates such as IELTS,
TOEIC, and TOEIC Bridge.

 The need to learn foreign languages to study abroad is increasing; exam

preparation for certificates such as TOEFL, iBT, and IELTS.

 The need for foreign languages for teenagers and working people has also
increased sharply in recent years.

1.1.2. Targeted clients

 Gender: male, female

  Age: Children 5–11 years old; teenagers 12–22 years old; people over 25 years old

 Occupation: All occupations

 Income level: average high

 Geography: Nguyen Nghiem Ward and 3 neighboring wards, including Pho Ninh,
Pho Minh, and Pho Hoa.

VUS English Center focuses on the market segment of clients with moderate-to-high
income levels. VUS's current tuition fees range from 4–15 million VND per course,
depending on the program. Besides, VUS's target clients will be ages 6–11 years old,
because parents always want their children to improve their English from a young age,
and this is an extremely suitable time to acquire the language, and ages 12–22 years old,
mainly students with international certification exam preparation courses necessary for
the needs of this age group. As for those over 25 years old, they will be able to participate
in separate study programs for business communication.

VUS is positioned as a brand with a unique position in the market, with tuition fees
commensurate with quality. The current center has courses with different tuition fees,
from low to high (4–15 million VND per course).

Table 1: VUS Training Program

TRAINING PROGRAM
Kindergarten Pre Smartkids Plus 1-2
Smartkids Plus 1-2-3-4-5-6
Superkids Pre-Superkids 1-2
Superkids A,B,C 1-2-3-4
Superkids Plus Pre-Superkids 1-2
Superkids A,B,C 1-2-3-4
Youth Pre-Young Leaders 1-2
Young Leaders 1-2-3-4; 5-6-7-8; 9-10
Adult
English for International Communication Elementary 1-2-3
(EIC)
Intermediate 1-2-3
Speed English for International SEIC 1-2; 3-4; 5-6
Communication (SEIC)
TOEIC S-TOEIC 500
TOEIC 500
IELTS S-IELTS 4.5,5.0; 5.5, 6.0; 6.5, 7.0
IELTS 4.5, 5.0; 5.5, 6.0; 6.5, 7.0
TOEFL iBT TOEFL iBT 45,50; 60, 70
SAT SAT 1100, 1200, 1300
English for Business Communication Communication iTALK; Interact; Program
exclusively for Businesses

( Source: Author)

1.1.3. Market potential

According to estimates, the average annual income of Quang Ngai province is

100,000,000 VND (2022). In particular, the total cost of learning English is estimated to
be 20,000,000 VND.

VUS will be opened in Nguyen Nghiem Ward, with a population of 8,172 people
(Linkcark.vn, 2022). The surrounding areas are Pho Ninh, Pho Minh, and Pho Hoa
Wards, with areas and populations respectively: Pho Ninh Ward with 9,395 people, an
area of 22.25 km2, Pho Minh Ward with 5,281 people, an area of 9.33 km2, and Pho Hoa
Ward with 5,198 people, an area of 16.27 km2 (LuatVietNam, 2020).

According to Quang Ngai population statistics by age group, the age group of 5–24 years
old is 355,156 out of a total of 1,241,300, equivalent to 28.61%. Besides, the age group
of 25–29 accounts for 103,283 out of a total of 1,241,300, equivalent to 8.31% (Thống kê
dân số tỉnh Quãng Ngãi, 2023).

According to the owner's estimates, at Nguyen Nghiem, the number of people aged 5-29
willing to spend on learning English at VUS is 100%. Thus, VUS's sales at Nguyen
Nghiem are:
 20,000,000 ×(36 , 92 % ×8,172 ×100 %)=60,342,048,000 VND

In three wards neighboring Nguyen Nghiem, Pho Ninh, Pho Minh, and Pho Hoa, the
estimated revenue for VUS for the age group of 5–24 years old is 26%, 34%, and 31%,
respectively. In addition, this figure for the 25–29 age group will be 14%, 21%, and 19%,
respectively. Hence, VUS's estimated revenue in these two regions is:

20,000,000 × [ ( 28 , 61 % × 26 % × 9,395 ) + ( 28 , 61% ×34 % ×5,281 ) + ( 28 , 61 % ×31 % × 5,198 ) + ( 8 , 31 % ×14 %

Therefore, the potential market share of VUS at Nguyen Nghiem will be:

Potential market share=60,342,048,000 +245,467,960 , 400=305,810,008,400 VND

1.1.4. Market Share
Currently, there are 8 different English centers in Nguyen Nghiem ward. VUS English
Center is expected to open a new facility with an area of 250 m2. Based on the above
data, the market share of VUS English Center will be:
250
=11 ,1 %
( 250× 8 ) +250
1.1.5. Project Income
Based on the data above, the revenue figure in 2024 will be:
Revenue figure∈2024=11 ,1 % × 305,810,008,400=33,944,910,930 VND

Although by 2025, English will no longer be a mandatory subject for high school
graduation exams, with the need for integration and current social development trends,
there is a need to learn English for work, and learning continues to increase.

Table 2: Projected Income Statement For Three Years

(Unit: Vietnam Dong)

PROJECTED INCOME STATEMENT FOR THREE YEARS
2024 2025 2026
Revenue 44,128,384,209 57,366,899,472
33,944,910,930

COGS 3,394,491,093 4,412,838,421 5,736,689,947

Marketing, advertising and 7,128,431,295 9,266,960,684 12,047,048,889

promotion

Staff wages 15,614,659,028 20,299,056,736 26,388,773,757

Utilities expenses

2,036,694,656 2,138,529,389 2,245,455,858

Rent

4,752,287,530 4,894,856,156 5,041,701,841

Telephone 101,834,733 106,926,469 112,272,793

Repair and maintenance 305504198 397,155,458 516,302,095

Depreciation 407,338,931 407,338,931 407,338,931

Insurance 237614377 308,898,689

401,568,296

Interest 407,338,931 529,540,611 688,402,794

Total expenses

30,991,703,679 38,349,263,123 47,848,865,254

Net income before tax (441,283,842) 1,366,282,665 3,781,344,270

Tax 273,256,533 756,268,854

_

Net income after tax 1,093,026,132 3,025,075,416

(441,283,842)

(Source: Author)

1.1.6. Rationale for location:

The reason for choosing Nguyen Nghiem ward, Quang Ngai, as the location for analysis
is because the demand for learning English here has been increasing for many years.
Besides, this will be a place to attract many potential clients now and in the future
because there are many schools and a large number of students here. Besides, residents
here all have jobs, have good financial ability, and can pay for quality courses. This helps
the VUS English Center expand and maintain a modern learning facility. In short,
Nguyen Nghiem district is a suitable and ideal place to develop a VUS English center.
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