Report on Business Environment and Organizations in Vietnam - Unit 1

This report provides a detailed analysis of business organizations operating in Vietnam. It begins by defining and differentiating between the private, public, and voluntary sectors, outlining their respective characteristics, types, and purposes. The report then delves into the specifics of various business structures within the private sector, including sole proprietorships, partnerships, limited liability companies, and joint-stock companies. Following this, the report examines the size and scope of different types of organizations in Vietnam, using Binh Minh Plastics Joint Stock Company as a case study. The analysis includes an examination of the company's size based on financial metrics, its scope encompassing stakeholders, vision, mission, and core values. The report concludes with an assessment of the company's organizational structure, functions of its departments, and the overall fit between its size, scope, and goals, ultimately evaluating its potential as a sound investment target. The report is a comprehensive guide to the Vietnamese business environment.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 1: Business and Business Environment
Submission date 27/02/2023 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Tran Thi Ngoc Tam Student ID BH01016
Class BA0602 Assessor name Bui Le Th
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of pla
making a false declaration is a form of malpractice.
Student’s signature Tam
Grading grid
P1 P2 P3 M1 M2

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 Summative Feedback:  Resubmission Feedback:
Grade: Assessor Signature: Date:
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Table of Contents
I. Introduction .................................................................................................................................................... 6
II. The characteristics, types and purposes of different areas of business organization ................................... 6
2.1: Private sector ......................................................................................................................................... 6
2.1.1: Definition of private sector ................................................................................................................ 6
2.1.2: Types and Characteristics of the private sector ................................................................................. 6
2.1.2.1: Sole proprietorships ......................................................................................................................... 6
2.1.2.2: Partnerships ...................................................................................................................................... 7
2.1.2.3: Limited liability company ........................................................................................................ 8
2.1.2.4.Joint stock company: .............................................................................................................. 10
2.1.3. Role of the private sector: ........................................................................................................ 11
2.1.4. Example of the private sector: ........................................................................................................... 12
2.2: Public sector ................................................................................................................................ 12
2.2.1: Definition of public sector .................................................................................................................. 12
2.2.2: Types of the public sector .......................................................................................................... 12
2.2.3. Characteristics of the public sector ........................................................................................... 13
2.2.4. Example of the public sector .................................................................................................... 14
2.3. Voluntary sector ......................................................................................................................... 14
2.3.1: Definition of voluntary sector .................................................................................................. 14

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2.3.2. Types of the voluntary sector ................................................................................................... 14
2.3.3. Characteristics of voluntary sector ........................................................................................... 15
2.3.4. The purpose ............................................................................................................................. 15
2.3.5. Example of the Voluntary sector .............................................................................................. 15
III. The size and scope of a range of different types of organizations in Vietnam ................................. 16
3.1. The size of range of different types of organizations in Vietnam .................................................. 16
3.1.1. Micro businesses ...................................................................................................................... 17
3.1.2. Small businesses ...................................................................................................................... 17
3.1.3. Medium businesses .................................................................................................................. 18
3.1.4. Large business .......................................................................................................................... 18
3.2. The scope of a range of different types of organizations in Vietnam ............................................ 19
3.2.1. Stakeholder ............................................................................................................................. 19
3.2.2. Shareholder ............................................................................................................................. 19
IV. The size and scope of Vietnam dairy products joint stock company and CNG Vietnam joint stock
commpany ........................................................................................................................................ 20
4.1. General infomation of Binh Minh Plastics Joint Stock Company ............................................... 20
4.2. Size ............................................................................................................................................. 22
4.2.1 Total Liabilities and Total Owners’s Equity ................................................................................. 22
4.2.2. The total revenue ..................................................................................................................... 24

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4.2.3. The updated total employees ................................................................................................... 24
4.2.4. The size of the Binh Minh Plastics accroding to Vietnamese regulations .................................... 26
4.3. The scope of Binh Minh Plastics Joint Stock Company .................................................................. 27
4.3.1. Vision ....................................................................................................................................... 27
4.3.2. Mission .................................................................................................................................... 27
4.3.3. Core value ................................................................................................................................ 27
4.3.4. Stakeholder mapping of Binh Minh Plastics .............................................................................. 28
4.4. Listen and harmonize the needs and expectations of the stakeholders of Binh Minh Plastics Joint
Stock Company .................................................................................................................................. 30
4.5. Organizational chart of the company and the functions of the departments ................................ 33
V. Conclusion ..................................................................................................................................... 39
VI. Referent ....................................................................................................................................... 39

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I.Introduction:
As a business analyst at Vietcombank Fund, I am writing this report for the purpose of In-depth research
on companies doing business in Vietnam. Specifically, I want to first analyze the main characteristics of the
types and purposes of business organizations with different legal structures, and then demonstrate that
the selected companies can be in Private, public or voluntary business sector. Second, I will outline the
size and scope of various types of organizations in Vietnam with specific examples such as Binh Minh
Plastics Joint Stock Company. With the above aspect, let's draw the conclusion that the company is a micro,
small, medium or large company according to Decree 80/2021 and determine stakeholders, vision and
mission of the company and then comment. The fit between the size, scope and goals of the company.
Finally, I go deep in research and coordination among internal departments in the company. From that, it
is concluded that Binh Minh Plastic Joint Stock Company is a company worth becoming a bright investment
targe or not.
II. The characteristics, types and purposes of different areas of business organization.
2.1: Private sector.
2.1.1: Definition of private sector
The private sector is the part of the economy where ownership and control of the organization is in the
hands of private individuals or groups and where profit-seeking is a central goal.
2.1.2: Types and Characteristics of the private sector
2.1.2.1: Sole proprietorships
A sole proprietorship is an agency owned by way of an person who is completely accountable for all his/her
property for all things to do of the business.( Luat doanh nghiep 2020)
- Ownership through character : One character is the proprietor of this. The required capital is
contributed via the sole proprietor. They oversee all operations in addition to being the company's owner.

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- Freedom of work and Quick Decisions: The man or woman does now not want to seek advice from
every person else due to the fact they are the proprietor themself. So, they are in a position to make swift
decisions.
- Unlimited Liability: When the belongings of his commercial enterprise are no longer ample to cowl
the money owed of their business, they have to use their non-public belongings to pay these debts.
- Enjoying Entire Profit: They work nonstop to develop and amplify their company, and they reap the
rewards.
- Absence of Government Regulation: Government guidelines do now not follow to a sole
proprietorship. In its creation, administration, or dissolution, there are no prison formalities that should
be followed.
2.1.2.2: Partnerships
A partnership is a kind of business enterprise in which the participants collectively habits business things
to do underneath a frequent company and are collectively and severally dependable for all money owed
of the company.( Lawyer Le Minh Truong 2021)
- There should be at least two contributors who are frequent proprietors of the company, doing
enterprise collectively beneath a frequent title (hereinafter referred to as time-honored partners). In
addition to standard partners, the employer might also have extra capital contributors.
• General partners: ought to be individuals, accountable with all their property for the
responsibilities of the company.( luat doanh nghiep 2020)
• Capital contributors: are groups or persons and are solely accountable for the company's
money owed inside the quantity of capital they have dedicated to make a contribution to the
company.( luat doanh nghiep 2020)
- Property legal responsibility regime:

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• General partners: have to be together and one by one dependable for all money owed
bobbing up from the company's operations. General companions have to be accountable with all
their belongings as nicely as the property they make a contribution to the business, they need to
limitless legal responsibility for all money owed of the member, the complete debt of the
enterprise.
• Capital-contributing members: are guilty for their capital contributions to the company.
Capital contributors are solely accountable for the total quantity of cash they invested in the agency
if a partnership in commercial enterprise experiences difficulties or losses.
- Capital of the partnership: A partnership's constitution capital is the complete quantity of property
that its founding participants have contributed or agreed to contribute. A partnership's participants can
also make a contribution capital in property different than these listed in the constitution of the company,
inclusive of gold, freely convertible overseas currencies, Vietnam dong, the price of land use rights, the
price of mental property rights, technology, and different assets.
- Raising capital of a partnership company: A partnership is now not allowed to difficulty any
securities in order to increase cash from the ordinary public. When extra constitution capital is required,
the commercial enterprise will elevate it with the aid of admitting new members, elevating the capital
contributions of every member, or noting a upward jab in the company's asset value.
- Legal fame and property liability: A partnership has prison reputation from the date it is granted
an organization registration certificates beneath the Enterprise Law 2020. When a partnership is
concerned in transactions, it has its very own belongings and is legally accountable for it. with these
belongings on an impartial foundation from the members, the organisation has impartial prison status.
2.1.2.3: Limited liability company
According to the Enterprise Law 2020, Limited legal responsibility agencies encompass one member
restrained legal responsibility organizations and two or extra participants restricted legal responsibility
companies.
- Limited legal responsibility organisation with two or extra members:

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• A restrained legal responsibility organisation with two or greater individuals is an
organization with between two and 50 participants who are agencies and individuals.
Members are responsible for money owed and different property responsibilities of the
business enterprise to the extent of the quantity of capital contributed to the enterprise.(
Luat doanh nghiep 2020)
• From the second the Certificate of Business Registration was once issued, a constrained
legal responsibility business enterprise with two or extra individuals has been legally
recognized.
• A constrained legal responsibility business enterprise with two or extra participants may
additionally no longer problem shares. Only in the tournament of conversion into a joint
inventory employer may also a confined legal responsibility organization with two or
greater participants difficulty shares.
• Bonds may also be issued through restricted legal responsibility businesses with two or
greater participants in compliance with this Law and different relevant laws; nevertheless,
the non-public placement of bonds is problem to the necessities of Articles 128 and 129 of
the Enterprise Law 2020.
• A restricted legal responsibility corporation with two or greater members' constitution
capital, when the organization applies to open for business, is the whole quantity of capital
the contributors have agreed to make a contribution and is targeted in the charter.
• Organizational shape and administration of the company: A confined legal responsibility
corporation with two or extra contributors has a Board of members, a chairman of the
Members' Council, a director or widespread director.( Luat doanh nghiep 2020)
- One member constrained legal responsibility companies:
• Single-member constrained legal responsibility corporation is an company owned
by means of an company or character (hereinafter referred to as the enterprise owner).
The employer proprietor is accountable for the company's money owed and different
property responsibilities to the extent of the company's constitution capital.( Luat doanh
nghiep 2020)

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• Similar to a confined legal responsibility agency with two or extra members, a single
member confined legal responsibility organisation additionally has prison reputation from
the date of issuance of the Certificate of Business Registration.
• A one-member constrained legal responsibility employer might also now not problem
shares, barring in the case of conversion into a joint inventory company.( Luat doanh nghiep
2020)
• A one-member confined legal responsibility business enterprise may additionally
trouble bonds in accordance with this Law and different applicable laws; the non-public
placement of bonds as prescribed in Articles 128 and 129 of the Enterprise Law 2020. ( Luat
doanh nghiep 2020)
• Charter capital of a one-member constrained legal responsibility agency when registering
for enterprise institution is the whole fee of property dedicated to make contributions by
way of the business enterprise proprietor and referred to in the company's charter.( Luat
doanh nghiep 2020)
2.1.2.4.Joint stock company:
- Joint oint stock company is an agency in which:
• Charter capital is divided into equal components known as shares.
• Shareholders can be companies or individuals; the minimal wide variety of shareholders is
three and there is no restrict to the most number.
• Shareholders are solely accountable for money owed and different property duties of the
business enterprise to the extent of the quantity of capital contributed to the enterprise.
• Shareholders have the proper to freely switch their shares to others.
- A joint-stock agency has felony popularity from the date of issuance of the Certificate of Business
Registration.
- A joint-stock organisation has the proper to trouble shares, bonds and different securities of the
company.
- Capital of joint inventory company: The constitution capital of a joint-stock organisation is the
complete par cost of shares of all kinds sold. Charter capital of a joint-stock employer when registering for

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enterprise institution is the complete par price of shares of all types which have been registered for buy
and recorded in the company's charter.
- Company shareholders: Shareholders are humans who are individuals of a joint inventory
corporation. Owners of at least one share in a organisation are regarded shareholders. There is no most
variety of shareholders allowed by means of law; solely that there have to be at least three shareholders
for a joint inventory company. This allows the joint inventory agency to extend its membership as
necessary.
- Legal status: The joint inventory association is completely legitimate. Debts owed with the aid of
the enterprise are its responsibility. If there are any civil or commercial enterprise conflicts, the
organisation may also file a lawsuit or shield a civil claim. Owning the company's very own property is legal.
Shareholders are solely approved to personal the company's shares, no longer its assets.
2.1.3. Role of the private sector:
The private sector plays an essential role in the economy's development. The specific functions include:
• Generating employment
Many businesses belong to the private sector because of the existing freedom to function independent of
the state, allowing for job creation in the community. This sector provides many career advancement
opportunities through job promotions and work experience. It employs a lot of skilled personnel in the
community.
• Promoting innovation
Businesses in the private sector stabilise prices by providing fair market conditions. It's a competitive field
where various companies strive to provide the best services at the most reasonable prices to attract
customers. Such competition can promote innovation. Innovation in the private sector can allow you to
create unique products and services, giving you an advantage over your competition and expanding your
customer base. Innovation may also help brand expansion and lead to lucrative opportunities.
• Assisting in economic development

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A working economy is a growing economy. The private sector can assist in economic development in
various ways, such as tax revenues and employment generation. Industrialisation in this sector can help
you increase the production of goods and services, leading to economic growth. A high employment rate
in a nation may allow growth through increased tax revenues. Introducing new industrial machinery and
the latest technology can promote economic growth by fostering industrialisation.
2.1.4. Example of the private sector:
Hoa Phat Group is Vietnam's leading private industrial manufacturing group. Producing steel and related
products such as coking coal, calcining iron accounted for 75% of revenue, which is the key business of the
Group. Business results in 2015 with revenue of 27,864 billion VND and profit after tax of 3,504 billion VND
– an increase of 30% and 24% respectively compared to 2014.
2.2: Public sector
2.2.1: Definition of public sector:
Pulic sector is the part of the economy under the control of government and its agencies and where the
state establishes and runs the different types of organization on behalf of its citizens and for their general
well-being.
2.2.2: Types of the public sector:
There are several public sector organizations, each with a unique set of duties and obligations. Some types
include:
• Executive Agencies
These organizations are directly responsible by the government and are for implementing policies and
initiatives. The Department of Education and the Environmental Protection Agency are examples.
• Independent Agencies
These organizations function independently from the government but are though seen as part of the
sector. The Federal Reserve and the National Aeronautics and Space Administration are examples (NASA).
• State-Owned Enterprises