Types, Size, and Scope of Organizations: A Study on Vietjet Air

This report delves into the different types, size, and scope of organizations, specifically focusing on Vietjet Air. It explores the interrelationship of various functions within the airline and how they link to the organizational structure. The report also examines the external and internal business environment of Vietjet Air.

I. Introduction.
The development of science and technology has promoted global economic cooperation
and increased travel demand, promoting the rapid development of the aviation industry. In
Vietnam, the number of passengers using aviation services in 2019 reached nearly 116
million views, an increase of 12% compared to the previous year, of which about 64% were
domestic passengers (Thi, 2019). These numbers may show that the aviation market in
Vietnam still has a lot of potential. In addition to Vietnam Airlines - the largest flight network
in the country - the Vietnamese aviation market also has VietJet Air. In this report, firstly, the
author explain the different types of business structure, size and scope of organizations. Next
is the interrelationship of the various functions within Vietjet Air and how they link to
organizational structure. The author will also present the research into the external and
internal business environment of Vietjet.
II. Explain the different types, size and scope of organisations.
1. Different types and purpose of organisations: public, private and voluntary
sectors.
An organization is a group of people who work together to achieve certain goals. There
are three main types of sectors in the economy and society: public, private and voluntary.
Each sector has its own unique characteristics, goals, and approaches. They are operating
with many differenct goals and they all work towards a certain common goal.
1.1. Pubic Sector Organisation.
A public sector organization is an organization that is owned or controlled by the
government that is focused on goods and services which intended to benefit the society.
Public sector organizations include schools, hospitals, libraries, and police and fire
departments. The public sector plays an important role in society. Public sector organizations
provide important services that the market would not provide on its own. Public organizations
provide some of the most important services in today's society, helping to ensure the
education of children, the healing of the sick, the provision of essential services and the
maintenance of infrastructure. These services are not aimed to make a profit from people.
1.2. Private Sector Organisation.
The private sector is run by individuals and companies and is not government controlled
that is often for profit from selling products or service the customers. The private sector has a
goal of making money and employed more wokers than the public sector. It plays a vital role
in the economy by creating new jobs, providing goods and services that people will pay for
and contributing to the economy. It is an important source of tax revenue for government,
business will pay taxes to help to fund public services. Private sector firms also collaborate
with the public sector and government to acquire resources and develop new products. For
example, at the 2021 Cybersecurity and Infrastructure Agency and National Cybersecurity
Summit, private critical infrastructure companies asked the U.S. government to provide more
information about cybersecurity threats so they can protect their assets in a growing threat
environment.

1.3. Voluntary Sector Organisation.
The voluntary sector plays an important role in society, providing services that would
otherwise be unavailable due to lack of public funding or private business resources. This
field depends mainly on the contribution of individuals and volunteers who are willing to
sacrifice their time to make a difference in their community or the world at large. Examples
of voluntary sector organizations are charities, non- governmental organisations (NGOs) and
social enterprises that rely on donations and volunteer efforts to provide services such as
education, healthcare and environmental protection. Volunteer organizations deal with a wide
variety of issues - from youth clubs to specialized medical research. Most focus on a specific
critical issue, such as climate change or affordable housing, or a specific social group in need
of support and representation, such as women who have experienced domestic violence.
1.4. The difference between Public, Private and Voluntary sector Organisation.
Table 1. The difference between public, private and voluntary sector organization.
2. Legal structure of business.
One of the first decisions you’ll need to make when you start a business is to determine
the correct legal structure for your company. The legal structure in which a company chooses
to function is a critical decision that influences how money and assets are structured within
the organization. These are only a few examples; other legal forms, like as cooperatives and
nonprofit organizations, are possible based on your specific scenario. There are several legal
structures to choose from, and each has its own advantages and considerations. The most
common legal structure include: Sole Proprietorship, Partnership, Limited liability company
(LLC), Corporation.
2.1. Sole Proprietorship.
This is the simplest form where the business is owned and operated by one individual. It
offers easy setup and complete control but also comes with personal liability for debts and
obligations. The sole proprietorship is also one of the most frequent legal arrangements for
small businesses. A sole proprietorship business has serveral advantages: It is the simplest
legal structure to set up, the only fees associated with a proprietorship are license fees and
Public Sector Private Sector Voluntary Sector
Funds Government Businesses Fundraising and
donations
The aims
Educate, inform and
provide a service to
its customers Making profit Preserve, protect and
promote their cause
Providing Essential services to
the public
Goods and services
to consumers
Serving the
community,
advocating for social
causes, addressing
specific issues

company taxes, forming a sole proprietorship is simple, as is dissolving one. As a sole
proprietor, you can dissolve your company at any time with no official paperwork. For
example, if you open a day care facility and want to close it down, you should stop operating
it and advertising your services.
Many well-known firms began as sole proprietorships and developed into multimillion-dollar
enterprises. For examples: eBay, JCPenney, Walmart, and Marriott Hotels.
2.2. Partnership.
A partnership consists of two or more people. For instance, you and your friend would be
co-owners of the company if you established a general partnership and founded a bakery
together. Every owner contributes a particular amount of working capital and experience to
the company, which has an impact on each partner's business share and contribution. There
are two types of partnerships: general, in which all are divided equally; limited, in which only
one partner controls the operation and the remaining person (or persons) contribute and
receive a portion of the profits. Depending on the capital source and liability structure of the
entity, a partnership may operate as a sole proprietorship, with no separation between the
partners and the business or corporation limited liability partnership (LLP). Business
partnerships have many advantages: There isn't much documentation to file for a company
partnership, just like with a sole proprietorship.
There are examples of successful partnerships: Apple, Twitter, etc.
2.3. Corporation.
A corporation is a type of business that separates the business from its owners. Clause 1,
Article 2 of Decree 69/2014/ND-CP stipulates: “Economic groups and corporations with
parent companies are organized in the form of one-member limited liability companies
owned by the State. Ownership or parent company is a joint stock company or limited
liability company with two or more members with controlling shares and contributed capital
of the State. At this time, the corporation has completely independent legal rights from the
owners. This allows the corporation to sue, be sued, own and sell assets, and sell stock. C
corporations, S corporations, and B corporations are examples of different types of
corporations. Some individuals do not think that such corporations are classified. Corporation
has two main advantages: Cooperatives may be eligible to receive federal government
support to get started, cooperatives can sell goods and services to members at low prices.
Examples of corporation: Domino’s Pizza, Amazon, etc.
2.4. Limited Liability Company (LLC).
As the name says, your liability will be limited to the amount you contribute. A limited
liability company is an independent organization without shareholders, directors and
managers. The liability of shareholders is limited to the amount paid for capital or unpaid.
But this type has many limitations. The company must prepare and maintain many different
types of accounting records. You must choose a company to audit and maintain annual
records with the business registry, including accounting records as well as details of directors
and mortgage transactions. The biggest disadvantage of this type is that you have to pay a lot
of money to establish it and it must comply with many legal regulations.
Here are some well-known examples of LLCs: Sony, Pepsi-Cola, Nike, etc.
3. Size and scope of organisations.

The size and scope of organizations can vary greatly depending on their purpose,
industry, and target market.
3.1. Size.
The size of an organization is its structural characteristic. This size can be determined by
space, sales volume, net assets, customers or number of employees (Theodore, 2009).
Businesses in Vietnam are called micro, small, medium and large. These groups depend on
their total capital, income and number of employees (Vietnam Law 2020).
Micro Small Medium Large
Number of
employees
Total
capital
Number of
employees
Total
capital
Number of
employees
Total
capital
Number of
employees
Total
capital
Agriculture,
Forestry,
Fishery
1 - 9
people
< 3
billions
VND
10 – 99
people
< 20
billions
VND
100 – 199
people
< 100
billions
VND
200+
people
> 10
billion
VND
Industry,
Construction
1 - 9
people
< 3
billions
VND
10 – 99
people
< 20
billions
VND
100 – 199
people
< 100
billions
VND
200+
people
> 10
billion
VND
Trading,
Services
1 - 9
people
< 3
billions
VND
10 – 49
people
< 50
billions
VND
50 – 99
people
< 100
billions
VND
100+
people
> 10
billion
VND
Table 2. Business size in Vietnam (OECD, 2010)
3.2. Scope.
Scope of an organization refers to business activity, when considering the scope of your
organization, it's essential to think about your target audience, your products or services, and
the overall market demand. You are aiming to serve a local community, a national market, or
globally. Of course, growing the scope of your organization necessitates rigorous planning
and study. To achieve a successful expansion, issues such as market trends, competitiveness,
regulatory environments, and even cultural differences must be taken into account. An
organization's scope is not a set idea. It will evolve and change as your company grows and
changes. Accept change, be open to new opportunities, and continually look for methods to
connect your organization's scope with your long-term goals.
4. The structure, size and scope of different organistions link to the business
objectives and product and services offered by the organisations.
The structure, size, and scope of an organization are crucial elements that greatly impact
its business objectives and the products and services it offers.
 Structure: Organizational structure is how different roles, functions, and departments are
organized and interact with each other. It can be a matrix, flat, hierarchical or even
network structure. The structure must align with company goals and provide effective
communication and decision-making. For example, if a company's goal is to promote
innovation and agility, it might adopt a flatter, more decentralized organizational structure.

This allows decisions to be made faster, allowing employees to take ownership and
contribute to new goods and services.
 Size: An organization's size can be defined as the total number of personnel, divisions, and
sites it operates. The range of goods and services provided as well as the company's goals
can be directly impacted by size. Larger companies are typically able to pursue more
ambitious goals and provide a greater array of goods and services because they possess
greater resources and capabilities. Due to resource limitations, smaller businesses could
have narrower goals and a more constrained selection of goods and services.
 Scope: A company's scope is the extent of its activities, including the target market it
serves, the industries it works in, and the regions it serves. A wider market might be
covered by a broad scope, or it can be narrow, concentrating on a particular niche. An
organization's scope and business objectives ought to coincide. For example, if a
company's goal is to lead the world in a specific area, it will have a large scope that
includes several markets and nations. However, a local firm could focus more narrowly,
catering to a particular area or neighborhood.
An organization's goals are influenced by its size, scope, and organizational structure,
which also affects the goods and services it provides. To increase their chances of success,
companies must carefully analyze these aspects and make sure they are in line with their
strategic goals.
I. The interrelationship of the various functions within Vietjet Air and how they
link to organizational structure.
Vietjet Air, like any organization, has interconnected functions that contribute to its
overall operation. These functions typically include: Marketing and Sales, Finance and
Accounting, Human Resources, Customer Service, Technology and Information System.
1. The various funtions within Vietjet Air.
Vietjet Air, as a prominent player in the aviation industry, operates in a complex and
dynamic environment. The effectiveness of the airline is contingent upon the seamless
interaction of various functions within the organization.
1.1. Operations.
The operations function is at the heart of VietJet Air, responsible for flight scheduling,
logistics and aircraft maintenance. This involves the day-to-day running of flights, ensuring
they are on schedule, managing logistics, and maintaining aircraft. It links closely with the
frontline staff and ground operations, such as check-in, boarding, baggage handling, and
aircraft turnaround.
1.2. Maketing and Sales.
The primary goals of this role are to advertise Vietjet Air's offerings, draw clients, and
increase sales. It frequently works in tandem with other departments to comprehend
consumer demands and modify offerings appropriately. Over time, VietJet has proven that
they have great strategies to attract customers, increase market share and purchase frequency.
VietJet focuses on building its image as a new generation low-cost airline targeting young,
dynamic passengers, contrary to the common perception of air travel and the often expensive
airline industry. The new generation of customers, who are price conscious and have high
service expectations, will prefer this approach.

VietJet has strict quality management and training processes to ensure the best possible
customer experience. VietJet excels at tracking and adapting to changes in consumer trends,
being one of the leading airlines in Vietnam. They also give free gifts to customers and run a
loyalty program. These methods have helped VietJet customers become more satisfied and
loyal.
1.3. Finance and Accounting.
Budgeting, financial reporting and resource allocation are part of financial management.
To maintain the financial health of the airline, this function is crucial. Monitor and control
costs to ensure operational efficiency and financial sustainability. This requires analyzing
costs for different parts of the company. This function manages revenue stream optimization
methods such as pricing, promotions, and partnerships. In this job, the marketing and sales
teams work closely together. Managing the airline's capital structure supports investment and
growth needs through equity and debt financing.
1.4. Human Resource.
Responsible for recruitment, training and human resource management. The HR function
ensures that the organizational structure is supported by a vibrant and professional workforce.
Regarding training and recruitment, VietJet always focuses on building strong human
resources, because all development activities depend on working people. VietJet strives to
provide employees with unlimited development opportunities, competitive remuneration and
sharing humane values with the community. The airline will expand its flight network around
the world and become a global airline in the near future. In addition, VietJet has received
many famous awards globally, such as the "Asia's Best Employer Brand" award, Top 500
"Asia's Leading Brands" and Top 50 Good Airlines awards. "financially and operationally
sound" by AirFinance.
1.5. Customer Service.
Vietjet Air, the first international airline in Vietnam, operates under a new generation
aviation model, providing a variety of services for customers to choose from and at low costs.
The company's mission is to become a popular means of transportation in Vietnam and
globally. Vietjet Air, with the motto "Flying is fun", always strives to bring joy and
satisfaction to customers by providing excellent and luxurious services. Customer satisfaction
depends on this function. It helps enhance a company's reputation by interacting with
customers and solving problems. Mr. Desmond Lin, Director of VietJetAir Business
Development, said: "We not only transport passengers to a safe destination but also care and
bring passengers interesting and fun flying experiences at a reasonable cost." most
economical fee. VietjetAir will work with passengers to add more amenities to their flights,
especially for guests with special needs so that everyone, along with their families and
friends, can feel "always ours". No.1".
1.6. Technology and Information Systems.
Technology is very important for the modern industry. This function manages the
development, exploitation and maintenance of technology systems such as communication
networks and network systems. Manages and maintains the reservation systems that handle
booking, ticketing, and passenger information. Creates and maintains digital platforms,
including as the official website and mobile apps, to improve the passenger experience.
Technology and information systems are critical to VietJet Air's operations, customer service
and strategic goals.
1.7. Safety and Compliance.

The Safety and Compliance function within Vietjet is paramount in ensuring the airline's
adherence to strict safety standards and regulatory requirements. Ensures that Vietjet Air
complies with all relevant aviation regulations set forth by national and international
authorities. Develops and oversees safety protocols and procedures to safeguard passengers,
crew, and aircraft. Conducts risk assessments to identify potential hazards and implements
strategies to mitigate risks. Leads investigations into safety incidents, accidents, or near
misses to identify root causes and prevent recurrence. Conducts regular safety audits and
inspections to assess compliance with safety standards and identify areas for improvement.
Develops and maintains emergency response plans to handle unforeseen situations or crises
effectively.
2. The relationship between functions.
All these functions are interconnected and work together to achieve the overall
organizational objectives. The structure of the organization, including how these functions
are organized and coordinated, plays a crucial role in ensuring that they work together
effectively. The relationship between functions within Vietjet Air is crucial for the seamless
operation and success of the airline. Marketing and operations work together closely to adjust
flight schedules to suit market needs, to know detailed information about customer
preferences and market trends that are suitable for Vietjet's apparatus, Helps operations
departments optimize routes and schedules for maximum efficiency. Therefore, finance and
operations are interdependent. Operations require financial resources allocated by the finance
department and rely on accurate operational data for budgeting and financial planning for
vietjet's financial activities. Regular financial reporting from operations allows the finance
department to make informed decisions, and budget discussions between the two departments
ensure alignment with operational goals. In order for Vietjet's operating system to operate at
its best, it is necessary to have a human force suitable to its operational needs. Therefore, the
human resources and operations departments work closely together, especially in crew
management. The human resources department recruits, which the operations department
relies on to train and schedule crew, and this collaboration is essential to manage crew
rotation, training and support overall human resources in the most effective way. Technology
and Information Systems support various departments by providing and maintaining IT
infrastructure, data security, and digital solutions. Therefore, it is necessary to focus on
applying technology and information to the aviation sector, for example, at a time when the
lack of replacement parts put Vietjet in a difficult situation because of some of the
components to produce it takes a year or more. Effective communication and collaboration
between these departments are vital for Vietjet's overall efficiency, safety, customer
satisfaction, and financial success. Coordination ensures that each department's functions
align with the airline's strategic goals and regulatory requirements.
3. Vietjet Air’s functions link to their structures.

II. The positive and negative impact the macro environment has on Vietjet Air’s
operatons.
This report analyzes five factors influencing Vietnam's aviation industry on VietJet's
strategy, applying the PESTLE framework. These factors include Political, Economic,
Social, Technological, Environmental and Legal.
1. PESTLE model of Vietjet Air.
1.1. Political factors.
Compliance with government aviation-related regulations and policies in both Vietnam and
other countries where VietJet operates is important. One of the most important factors is the
stability of the political system, which will significantly affect the development of the
national economy and VietJet's business strategy. When businesses choose to invest to
expand their operations, they are always interested in this aspect, especially when building
flight networks for air carriers. Vietnam is the most politically stable country in Southeast
Asia, Vietnam participates in multinational cooperation organizations such as APEC (1998),
WTO (2007) and a number of Free Trade Agreements; Air travel increases revenue.
Additionally, the industry has easy access to modern technologies and can compete in the
global market. The government supports measures to encourage the expansion of the aviation
industry so that it becomes an important part of the nation's development. International
competitors intending to enter the rapidly growing airline market pose a threat.
1.2. Economic factors.
The overall economic growth of Vietnam and other key markets directly affects air travel
demand. Economic expansion typically correlates with increased business and leisure travel,
positively impacting Vietjet's passenger numbers. As a part of the economy, Vietjet's
business activities are always associated with economic growth. In recent years, Vietnam's
economy has grown strongly, causing the middle class and its disposable income to increase.
This has contributed to increasing demand for air travel and increasing VietJet's passenger
count. According to the World Bank, the COVID-19 pandemic caused GDP growth to
decline to 2.58% and 2.91% in 2020 and 2021, from 7.02% in 2019. However, it should be
noted that Vietnam is currently one of the few countries in the world with the most positive
economic growth rate. Vietnam's economic growth rate in the first quarter of 2022 increased
clearly, first quarter GDP reached 92.175 billion USD, up 5.03% over the same period last
year, higher than China's economic growth rate ( 4.8%) and Singapore (3.4%). Vietjet's
business growth also accompanies the growth rate of Vietnam's aviation industry. According
to IATA's report, Vietnam's domestic aviation market will fully recover and grow strongly
compared to 2019. The global market is gradually recovering and is predicted to reach 2019
levels by the end of the year 2023. Vietnam is recognized as one of the aviation markets with
the fastest annual growth rate in the world, higher than the average speed of the Asia-Pacific
region. According to the Vietnam Aviation Administration, the number of passengers passing
through airports recorded in January 2023 reached 9.8 million passengers, an increase of
13.8% compared to December 2022. Of which, foreign passengers reached 2.3 million

people, an increase of 10%, and domestic visitors reached 7.5 million people, an increase of
15%.
Vietjet's operating costs may be impacted by changes in exchange rates, particularly those
involving the Vietnamese dong (VND) in relation to other currencies. For example, if the
Vietnamese dong depreciates in value relative to the US dollar, the cost of buying aircraft,
spare parts, or gasoline with a foreign currency value may increase. VNDirect Securities Joint
Stock Company said that one of the challenges airlines face is fluctuating exchange rates and
rising USD interest rates, which causes them to incur exchange rate losses when re-evaluating
USD debt. In addition, expanding airlines' fleets becomes more difficult due to increased
aircraft investment costs.
Raw material costs account for the largest proportion of the Company's total costs. Fuel
prices depend on many economic and political factors around the world and are completely
beyond Vietjet's control. According to VNDirect, Vietjet, a low-cost airline, will be affected
less than traditional airlines because fuel consumption depends closely on the weight and
capacity of the aircraft. Vietjet, with most of its aircraft, is narrow-body, short-haul aircraft
(except for two new A330s welcomed in the past year). In contrast, about 30% of Vietnam
Airlines' aircraft are wide-body long-haul aircraft. Therefore, Vietjet's average fuel
consumption per circulating seat (ASK) is lower than that of Vietnam Airlines. Global Jet A1
fuel prices will increase 79% in 2022 due to tensions between Russia and Ukraine. The
increase cools to 13% in 2023. In 2022–2023, jet fuel prices remain at their highest level
since 2015. It will be difficult for Vietjet to increase ticket prices to offset fuel costs if its
prices increase due to competition from competitors in the same industry. Therefore, fuel
price fluctuations can affect a business's ability to operate.
1.3. Social factors.
Social factors significantly influence Vietjet's operations and strategies. Vietnam is a country
with a large population located in the Asia-Pacific region, so it has strong economic potential.
Our country has large tourism resources, with many historical and cultural landscapes,
attracting both domestic and foreign tourists. According to data published on the morning of
March 29 by the General Statistics Office, the number of foreign visitors to Vietnam in the
first quarter of 2022 is estimated to reach nearly 91 thousand people, an increase of 89.1%
over the same period last year. The number of tourists mainly comes from countries such as
Korea, Taiwan, Malaysia, Thailand and Cambodia. This trend is forecast to continue to
increase for a long time. This is an opportunity for Vietjet to develop. Additionally, many
people live in Ho Chi Minh City, Hanoi and Da Nang. Huge potential for the development of
domestic and international air traffic is provided by the scale of economic growth and GDP
growth. Vietnamese travelers have evolving expectations regarding comfort, amenities, and
overall travel experience. Vietjet continually assesses and adapts its services to meet
changing customer expectations, ensuring a positive.
In addition, Vietjet prioritizes operating transit flights rather than exploiting all geographical
locations. The culture and travel customs of Vietnamese people involve the use of traditional,
cheap and flexible door-to-door transportation for departure and arrival points, such as buses
and buses. bed or maybe a family car. Therefore, changing the travel habits of Vietnamese
people is a big challenge, not to mention buying tickets and checking in on planes…
1.4. Technological factors.
In an age of ever-evolving technology, these changes are important to the organizational
environment because they underpin and create the future. Planning experts say that "Vietjet
already has internal strength and creative ability. The application of technology will help the
airline improve in all aspects and achieve more achievements." According to Mr. To Viet

Thang, "Currently, Vietjet is cooperating with advanced technology solution providers to
develop e-commerce, cloud infrastructure and information technology applications to
improve quality." services, operations and management”,
The first airline in Vietnam to use automatic check-in machines at airports is Vietjet. This is a
modern technology widely used globally, helping passengers save time and become more
free. Vietjet, a new generation airline, constantly invests in modern technology to maximize
e-commerce benefits and facilitate easier online purchases. In addition, Vietjet's website is
ranked among Vietnam's top e-commerce websites. Vietjet invests in modern and fuel-
efficient aircraft models, like Airbus A320neo, to reduce fuel consumption per passenger.
Adoption of fuel-efficent aircraft and technologies contributes to cost reduction and
environmental sustainability. Through digital services and in-flight entertainment, Vietjet is
able to offer a smooth and customized customer experience thanks to technology. Passengers'
total travel experience is improved by Vietjet's Wi-Fi access, personal screens, and
assortment of digital entertainment alternatives.
Besides that, increasing reliance on technology exposes Vietjet to cybersecurity threats, such
as data breaches or system disruptions. A cyberattack on Vietjet's reservation system could
compromise passenger information and disrupt operations. Investing in new technologies
requires substantial capital, and the return on investment may not be immediate. The
implementation of advanced technologies, such as biometric systems or updated reservation
platforms, involves significant upfront costs. By leveraging technology wisely, addressing
potential risks, and ensuring a seamless transition for both staff and passengers, Vietjet can
continue to thrive in the dynamic aviation industry.
1.5. Environmental factors.
The impact of the environment greatly affects Vietjet's development strategy. Nowadays, the
impact is becoming stronger and stronger, making businesses pay more and more attention to
this issue. Embracing sustainable aviation practices and fuel-efficient technologies reduces
carbon emissions and operational costs. For example, Vietjet investing in modern, fuel-
efficient aircraft like the Airbus A320neo, which lowers fuel consumption and contributes to
a greener operation. Vietjet achieving certifications like the IEnvA (IATA Environmental
Assessment) or implementing carbon offset programs to showcase commitment to
sustainability. Participation in green initiatives and obtaining environmental certifications
enhances Vietjet's corporate image and attractiveness to environmentally conscious
passengers.
Besides that, extreme weather events and climate change can disrupt flight schedules, leading
to operational challenges and increased emissions. It causes delays or cancellations due to
severe weather conditions impacting Vietjet's punctuality and efficiency. More than that,
Meeting stringent environmental regulations may lead to increased operational costs.
Implementing technologies to reduce emissions or investing in sustainable practices might
require substantial financial resources, impacting Vietjet's profitability.
1.6. Legal factors.
Vietjet's operations are guaranteed to be safe and dependable by following aviation laws.
Vietjet always complies with international and local aviation safety standards, contributing to
a positive safety record and customer trust. Participation in international agreements and open
skies policies facilitates expansion into global markets. Vietjet has opened 11 new
international routes in the second quarter of 2023 to Australia, Indonesia, and India, bringing
the total number of routes to 120 (45 domestic routes, 75 international routes). Vietjet
benefiting from open skies agreements, allowing it to operate more freely on international
routes without significant restrictions. Adherence to labor laws contributes to positive

employee relations and overall organizational stability. Vietjet ensuring compliance with
labor laws, including fair wages, working hours, and employee benefits, promoting a positive
workplace environment.
Besides that, implementation of new safety or security measures mandated by aviation
authorities, contributing to higher operational expenses for Vietjet. Stringent consumer
protection laws may require compensation or additional services in case of flight disruptions.
Director of the Vietnam Aviation Administration Mr. Lai Xuan Thanh confirmed this "post-
incident" of the plane carrying passengers to the incorrect airport. According to Mr. Thanh,
we also conducted a periodic inspection of VJA in April 2014 to ensure that the company
remained eligible for aviation operator certificates (AOC) and to establish the conditions for a
comprehensive evaluation of the operator's system. VJA. VJA is still eligible to maintain
AOC, according to the inspection, but there are still issues and constraints that need to be
resolved. In order to manage these legal considerations, Vietjet must proactively interact with
regulatory agencies, keep up with legislative developments, and put strong legal compliance
procedures in place to reduce any potential bad effects.
IV. The internal strengths and weaknesses of specific businesses and their
interrelationship with external macro factors.

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the-best-companies-to-work-for-in-asia-award-1607268360413
14. https://www.vietjetair.com/vi/pages/khach-hang-ban-la-thuong-de-1618547732730
15. https://www.fidinam.com/en/blog/vietnam-economic-recovery-2022
16. https://baochinhphu.vn/kinh-te-viet-nam-but-pha-sau-dai-dich-
102220530084419455.htm
17. https://mof.gov.vn/webcenter/portal/vclvcstc/pages_r/l/chi-tiet-tin?
dDocName=MOFUCM105498
18. https://mekongasean.vn/iata-du-bao-hang-khong-viet-nam-se-hoi-phuc-hoan-toan-
vao-cuoi-nam-2023-post17474.html
19. https://cafef.vn/vndirect-voi-loi-the-cua-hang-khong-gia-re-vietjet-co-khan-nang-lai-
hon-1300-ty-dong-trong-nam-nay-20221208085442706.chn
20. https://nguoiquansat.vn/lai-suat-tang-va-dong-usd-manh-len-anh-huong-den-cac-
hang-hang-khong-ra-sao-70441.html?
fbclid=IwAR23_Z7STnB6sc9zFlzrLkM0w13LOmLMva-
MhzOJ2Ran4P1h5w2v5Xit-0c
21. https://vietnamtourism.gov.vn/post/40257
22. https://thanhnien.vn/chuyen-gia-cong-nghe-vietjet-la-innovation-airline-
185783972.htm
23. https://thitruongtaichinhtiente.vn/6-thang-dau-nam-2023-vietjet-tien-phong-mo-rong-
bau-troi-hut-khach-quoc-te-toi-viet-nam-48251.html
24. https://cafeland.vn/doanh-nhan/doanh-nhan/vietjet-air-va-nhung-chieu-marketing-
khong-ngan-scandal-21187.html
<https://cafeland.vn/doanh-nhan/doanh-nhan/vietjet-air-va-nhung-chieu-marketing-khong-
ngan-scandal-21187.html