HANOI UNIVERSITY OF AGRICULTURE

FACULTY OF ACCOUNTING AND BUSINESSADMNISTRATION

----------------------

INTERNSHIP PROJECT REPORT STAGE 1

Student Name : Nguyen Đai Nghia ( 576804)

Pham Thi Thanh Huyen(576552)

Nguyen Thi Hong Nhung ( 575754)

Class : K57 QTKDT

Major : Business management

Instructor : Dr. Pham Huong Diu

ACKNOWLEDGEMENTS

The education system in Vietnam has been changing so as to beable to reach the world level achievements. We all know thatstudy must be accompanied with practice, which is one of themost effective learning methods and has been applied in manyuniversities in Vietnam. In order for us to practice what wehave learned and to approach the reality, we are agreed to doan internship in Tien Phong company and then write aninternship report.

During the time of learning and working in the company, wehave faced many difficulties and made some mistakes but wealso have received enthusiastic help from the company’s staffwith the agent Mr. Nguyen Van Sau – Director of the companyand Mrs. Mai Thu Giang - Vice-Director as well as thededicated guidance of the knowledge from our teacher. So now,we could finish our fieldtrip report as scheduled and have haduseful experiences in a real life situation to support ourbusiness in the future.

Therefore, on the first page of this report, we would like toexpress our deep thanks to all people helping us a lot specialthanks to our assistant professor, Dr.Pham Huong Diu.. who haddirectly guided us and provided us with useful advices in thepractice period as well as the interesting and enthusiastichelps of the staffs in Tien Phong Tourist and ConstructionCompany Limited

Yours sincerely!

Students:

1

Nguyen Dai Nghia

Pham Thi Thanh Huyen

Nguyen Thi Hong Nhung

Class: K57QTKDT

2

CONTENT

PART I: INTRODUCTION........................................1

1.1. Rationale of research……………………………………………………………...11.2. Objective ……………………………………………………………….……….…...1

1.2.1. General Objective …………………………………………………………….…….1

1.2.2. Specific Objective ………………………………………………….….……….…..1

1.3. Major key questions. ……………………………………...…………………….…..1

1.4. Scope of Research……………………………………………………....……….…..1

1.4.1. Location…………………………………………………………..……..……….…..1

1.4.2. Time ……………………………………………………………………..…………..1

1.4.3. Content ………………………………………………………….……………….…..2

1.5. Research Methodology……………………………………………………….……..2

1.5.1. Data collection…………………………………………………..…………….……..2

1.5.2. Processing and analyzing information. …………………….

……………….……..2

PART II: FINDING…………………………………………..………………....................3

2.1 Overview…………………………………………………………………….......................3

2.1.1 General information: …………………………………………….……….............3

2.1.2 History and development……………………………………..…….……...........3

2.1.3 Functions and tasks …………………………………………………….............4

2.1.4 Organizational Allocation………………………………..………………..........5

2.2 Resources……………………………………………………………………......................7

2.2.1 Human resources ………………………………………..………….……..............7

2.2.2 Company’s declaration of construction equipment ……………………

.............................................................8

2.2.3 Financial resources of the company. …………………………………….....9

2.3 Operating model of the company…………………………………………..........10

2.4 Financial Report…………………………………………………………….................12

3

2.5.Swot Analysis…………………………………………………….….……..................16

PART III CONCLUSION …………………………………………..………...................18

3.1 Conclusion ……………………………………………………….…………...................18

3.2 References …………………………………………………………………....................19

LIST OF TABLES:Table 1:Key personnel, technical personnel of the

contractor…………………………..9

Table 2:Declaration technical workers of the

contractor…………………………………9

Table 3:Declaration of instruments and laboratory equipment

checked at the construction

site……………………………………………………………………………....9

Table 4:Summary financial data in the recent 03 fiscal

year…………………………….11

Table 5: Revenue in last 3 years……………………………………………………………11

Table 6:Taxes in paid……………………………………………………………………….11

Table 7:Total revenue from 2011 to

2012………………………………………………....13

Table 8:Balance sheet……………………………………………………………………….15

Table 9:The statement of financial performance…………………………………………

16

LIST OF FIGURE:

Figure:Structure of Management…………………………………………………………...6

4

PART I:

RESEARCH BACKGROUND

1.1. Rationale of researchPeople need houses, roads, schools, hospitals; peoplewant to live in a healthy environment and be safe fromdiseases and natural disasters and so on. Therefore,constructors are usually shown respect. The constructionindustry created products which have both physical andcultural value.Thanks to a significant increase in constructing projectsin fields such as harbors, railways, publictransportation, malls, construction industry in Vietnamis developing faster and faster. It is an indispensablepart of our lives, and also helps to create jobs for manypeople.There was a large number of both skilled andunskilled Vietnamese employers who work in constructionindustry in 2013. Economical experts rank the industry atthe top in the 10 the most wanted employment in the labormarket and predict it would be able to maintain itsranking in at least 10 years. When scale and need of the market change, investorsalways look for chances in major industries and want tocooperate with the most reliable companies which werelong established and have high competitiveness.Construction industry always maintains a swift andsustainable development, which attracts a lot of long-term investment. To understand its developing history aswell as its future prospect, we need to research theirchoices. This report will show our investigation intoreality and prospects of Tien Phong Construction andTourism Ltd Co.

1.2. Major Research Objective1.2.1. General Objective:

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We research about the establishment and development,strengths and weaknesss , opportunities,threats,financial of the company.

1.2.2. Specific Objective: Firstly,Collect information about business sources (capital, investment, equipment and so on), strong and weak points. Secondly,Find out how to understand balance sheet.

Thirdly,Get to know how a company is operated. Fourthly,Synthesize information and writing a report. Finally,Evaluate and draw a lesson.

1.3. Major research questions.- How was the company established?- How many employers were and are there in the company

(at first and at present)?- How to attract investment?- Financial situation of the company? (balance sheet,

capital gain, loss,...)

1.4. Scope of Research1.4.1. Location: No. 11 Lane 0,255 / 3/11 Vong Str., Hai Ba

Trung, Hanoi.1.4.2. Time: From 2014/02/07 to 2014/01/08. 1.4.3. Content: to understand generally operation, business

and producing processes, staffs, financial activities ofthe company in recent years.

1.5. Research Methodology1.5.1. Data collection

- Collect information from documentations, reports,statistical tables from 2011 to 2013.

- Collect information from staffs through interviews,questionnaire and so on about financial balance sheets,human resource operation, business operation, cash flowsheets,...

1.5.2. Processing and analyzing information.

6

After collecting information, we classified, selectedsuitable information to put in the report. Then weanalyzed and evaluated each one. For example, we madefigure tables and graphs to compare each year’s data andthen explained the data and gave conclusion. In thisreport, we also use a lot of different methods such asstatics, analyzing, comparing, and so on.

PART II:

FINDING

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2.1 Overview of the company

2.1.1 General information:

The name of the company is Cong ty TNHH Xay Dung và Du LichTien Phong.English name is Tien Phong Tourist and ConstructionCompany Limited.The abbreviated name of the company is TTCC Co., Ltd.The company’s head office at 31 Giai Phong st., Dong Tam Commune, Hai Ba Trung District, Hanoi.Phone number of the head office is (84-4)-9783496.

The transaction office of the company is located at No. 11, 255/3 Alley, Vong st., Hai Ba Trung District, Hanoi.Phone number of the transaction office is (84-4)-22165188.Fax numberof the company is (84-4)-36288456 .The company's email addressis TienPhong@yahoo.com. company representative who is also thedirector of the company is Mr. Nguyen Van Sau.

The main manufacturing sector of the business are Civil engineering, industry, transportation, irrigation, leveling and drainage, construction of cultural facilities, and domestic tourism. The company is established on January 04, 2001.Business License No. 0102002451,it is issued on April 26,2001 by the Hanoi Authority for Planning and Investent. Tax code is 010112592

2.1.2 History and Development

Tien Phong Tourist and Construction Company Limited was formedfrom a small firm in the field of business.

In 1997, CEO Nguyen Van Sau (or Nguyen Son Tung) set a food onthe path of business operation by hiring TTCC Co., Ltd’s legalentity – which was set up from 308 Division (The Warriors). From that point, he worked in the field of tourism, started marketing and operating tours for many schools and companies in the area. Because the range of firm’s operation is domestic, along with being inexperienced and the dependence of

8

tours on weather, Mr. Nguyen Son Tung’s firm encountered countless difficulties at first, especially when he was leading a firm under the form of leasing a legal entity, causing tons of disadvantages for himself as well as the firm.With his talent and promotion, Director Nguyen Son Tung has effortfully led the company to overcome difficulties, made wise decisions in using human resources and other available resources, gradually establishing firm’s reputation as well asits own character, gaining trust and building relationships with other partners, serving effectively for the transition ofthe firm later.

After 3 years of operation under the charge of 308 Division, along with the financial pressures from family and his own living, immediately when he had released the opportunity to foster his business, Director Nguyen Son decided to take the firm to a new development stage. With his strategic vision, hefound out that the annual budget that Districts and Precints, particularly in Hanoi, had given to construction sector is quite high and increasing in direct proportion to the development of Vietnam’s economics.

By understanding the importance of construction sector and realizing the up-and-coming market, combining with the social relationships built from his tourism business, in 2001, he decided to change his firm’s name into Tien Phong Tourist and Construction Company Limited focusing on the operations of civil construction, industry, irrigation and transportation, leveling and drainage; construction of cultural facilities, and domestic travel. From here, with the efficient support of the Deputy Director Nguyen Van Khoi, he has officially embarked in the company construction, setting up the management apparatus, leading up the company and achieving more and more success.

2.1.3 Function and tasks of the Company

The company has been involved in the constructions for public use such as schools, culture houses, temples, committee

9

offices, and roads. After many years of operation with lots oflarge and small project, the company has significantly contributed to the construction of new rural program, repairing and upgrading the welfare projects that contribute to society. With a team of highly experienced leaders in the field of design and construction, the company has designed andconstructed many complex works of groups A and B in Hanoi and nationwide. The implementation of these construction requires a large size of operation as well as intricate demand for engineering, fine arts, and strict construction schedule.

After years of establishment, the Company has considered to being into play new force to foster the business. The company continues investing in construction equipments and recruiting more engineers, dynamic technicians and highly qualified workers in order to help the Company assert its reputation in the market of urban infrastructure construction, civil construction, industry and transportation.

The revenues of company in 2010, 2011, and 2012 were recorded at 118.8 billion VND, 154.6 billion VND, and 165.01 billion VND respectively. Predicted production plan implementing in 2013 would be 200 billion VND.

2.1.4 Organizational Allocation

Figure 1:Structure of Management

(Source:Director )

BOARD DIRECTOR

TechnicalDepartment (Nguyen Van Khoi)

Financial and AccountingDepartment

(Mai Thu Giang)

Planning department(Nguyen Thi

Tam)

Administration

Department(Bui Ngoc

Uyen)

Clerical

division

Personnel

division

Server divisi

on

Constructiondivisio

n

Machinery and Equipment

Support

service

10

Functions of management departments Director (Nguyen Son Tung): the person who isresponsible to the state and Corporation forproduction and business result of company, buildingstrategies, long term and short term plan annually,investment and cooperation projects, ensure livingstandard for employees. Directing, giving missionsand examining; promoting or removing positions,rewarding and punishing according to company rules.Directly taking responsibilities for human resources,financial tasks and business.

Vice-Director (Nguyen Van Khoi) : Management of TechnicalDepartment A technical manager ensures that his teamperforms within set technical guidelines by providing orco-authoring standard operating procedures. He alsoassigns each team member specific tasks and overseestheir performance. He meets with his senior managementregularly and gives them his monthly and annual reports,which include his team's performance, budgets and projectstatus. He may also meet with his counterparts, technicalpartners and customers. He conducts regular meetings withhis teams, whether as a whole or through one-on-onediscussions. He provides each team member an objective or

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goal that he will monitor progress or status onthroughout the year. He then conducts performance reviewsof team members and gives them feedback, as well as makespromotion recommendations or salary increases if and whenapplicable.

Vice-Director ( Mai Thu Giang): cum. Chief Accountant,Manager of finance and accounting department, helpingDirector with projects’ strategy and advisory; person whoassist general director to representative and authorizedon behalf of general director to solve these tasks whengeneral director is absent. Responsible to the generaldirector and law for own decisions. Under the directionof the Director, organize, coordinate and supervise theaccounting operations of the Company and maintain relatedfinancial records; provide internal control of fiscalplans and budgets; develop and prepare studies in thearea budget; train, supervise and evaluate theperformance of assigned personnel.

Departments:

+ Technical department: managing the team of engineers,machinery equipment, directly getting involved in designingand constructing on sites, being responsible for technicalsegment of projects, and being the cadre of the business;responsible for the execution of a wide range of dutiesassociated with the design and management of constructionprocesses required to take a project described in writtenform by a set of plans and specifications and transform itinto a finished usable, physical facility or structure.

+ Finance Department: finance department will be responsiblefor all the day to day transactional accounting for thebusiness.  This will include the tracking of alltransactions and the management of any government reporting.

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+ Planning Department: the company’s headquarter, placedunder the direct supervision of the Director, having closeties with other departments, being responsible for thepreparation of detailed plans that mostly determine theprojects’ success; management of the organization’s cashflow and ensuring there are enough funds available to meetthe day to day payments. advising and sourcing longer termfinancing, contribute to the management and improvement ofthe operations by measuring and reporting regularly on keynumbers crucial to the success of the organization. provideinformation to assist managers in making key strategicdecisions, such as which markets or projects to pursue orthe payback periods for large capital purchases. 

+ Administrative/Clerical Office: Keeping the company’sseals, typing, editing, and printing; reception/switchboardduties, filing and provision of relief for specialists inthe office; Specializing in humans, labor contracts,regulations and policies, and other subjects relating tohumans of the company.

+ Planning Department: the company’s headquarter, placedunder the direct supervision of the Director, having closeties with other departments, being responsible for thepreparation of detailed plans that mostly determine theprojects’ success. Manage planning process, import and export,the supply of materials for production, organize business andtrading, participate in the negotiation and signing ofeconomic contracts, drafting and payment the contracts.Construction and supervise the implementation of theproduction planned of units to ensure that the company's plansare completed on time.

2.2 Resource

2.2.1 Human resource:

The total number of officers and employees of company are 535.In which include Master’s degree in engineering has 3

13

people,36 of them are bachelor of Engineering,bachelor of Business Administration has 4 people,Officials and high-level technical workers from 5/7 has 30 people.and there are462 people in Workers from 3/7.

Table 1:Key personnel, technical personnel of the contractor

STT

Title Professional qualifications

Quantity

Years ofexperience

Note

1 Director Economics and Civil Engineers

1 16

2 Vice - Director

Civil Engineers 2 18

3 Commander in Chief

Civil Engineers 5 12;17;27

4 Technical Officer

Civil Engineers, and other relate to construction

28 3-18

5 Architects Architects 2 4-76 Accounting

staffBachelor of economics

4 4-11

… (source:director )

Comment: Although the number of staff and workers are less, but they have many years of experience.Therefore, leaders ofthe company capture easily market, offer strategies to control and development company. Labor qualification is highly so they receive easily to science and technology

Table 2:Declaration technical workers of the contractor:

No Title trade number Experience(year)

level

1 Team of rigger

rigger 220 2-20 5/7 and3/7

2 Team of falsework

Carpenter, falsework

20 3-9 5/7and3/7

3 Team of steel fixer

Steel fixer 15 4-6 5/7 and3/7

4 Team of electrician 18 2 – 6 5/7 and

14

electrician 3/75 Team of

solderersolderer 14 3 – 5 3/7

6 Team of mechanic

mechanic 25 4 – 8 5/7and3/7

7 Team of concretor

concretor 20 4 – 10 5/7 and3/7

8 Team of painter

painter 20 2 - 18 5/7 and3/7

(source: technical department)

Comment:Team of worker have many years of experience and level is highly.The company focus on selecting and training labor.Therefore,productivity is more and more improved, construction progress is promoted.

2.2.2 Company’s declaration of construction equipment

Table 3:Declaration of instruments and laboratory equipment checked at the construction site.

equipmentnumber

Year ofproducti

on

numbercapacity Status

qualityowned

rented

Theodolite NIKON 2 2005 2 0 goodGradienterNIKON

3 20062009 3 0 good

mia drawnmetal 4 2005 4 0 goodsteel measuringtape 50-200m

4 2008 4 0 good

drier 4 2005 4 0 goodtractor 1 2005 1 0 gooddensity bottle 1 2007 1 0 good

Crane Benkeman 1 2005 1 0 goodcementing 4 2005 4 0 good

15

outfitbalance 9 2008 9 0 goodconcrete gun Schimidt

2 2005 2 0 good

ring interfaceadapter

4 2002 4 0 good

sand hopper 2 2006 2 0 good Cubical concrete block mould10x10x1015x15x1520x20x20

10 2009 10 0 good

Cylindrical concrete block mould

D=150-300

10 2008 10 0 good

Cone testconcrete mortar

2 2005 2 0 good

standardsselector 2 2009 2 0 good

the mortar experiments

2 2009 2 0 good

(source:technical department)

Comment:Equipment of the company are owned and status quality is good at the construction site.It shows that the company use and preservate reasonably and effectively equipment.The company continuous very different and new equipment for production over the year.

2.2.3 Financial resources of the company.

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Assets can be converted into cash: 8.000.000.000 VND

Capital Credit: 25.000.000.000 VND

Table 4:Summary financial data in the recent 03 fiscal year

No Norm 2008 2009 20101 Total Assets 22.979.943.

54838.030.410.

35347.507.958.6

372 Liabilities 9.771.710.8

0512.647.712.

58515.677.581.2

493 Current assets 21.138552.9

7835.771.209.

94143.190.999.2

404 Current

liabilities9.771.710.8

0512.647.712.

58515.677.581.2

495 revenue 42.702.905.

97572.575.891.

126118.878.211.

6096 Profit before tax 982.166.827 6.493.612.2

589.076.906.15

97 Profit after tax 707.160.123 4.870.209.1

936.807.679.62

0

(Unit:BillionVND)

(Source: Financial and accounting department)

Comment: In general, the total assets of company increasedover the years from 2008 to 2009.It can be that the liabilities and short-term debt increased over the year from2008 to 2010.The Short-term debt is mainly come from accounts payable to suppliers, amounts that buyers pay in advance, and the tax payable to the state, the short-term loans.

Revenue, profit after tax and pre-tax profit also increased strongly in three years 2008,2009 and 2010

Table 5: Revenue in last 3 years:

No norm 2008 2009 2010

17

1 The value of output

50.056.238.00

85.762.486.000

158.597.764.511

2 revenue 42.702.905.975

72.575.891.126

118.878.211.609

3 Growth 145% 171% 164% (Unit:Billion VND)

(Source: Financial and accounting department)

Comment: It can be seen that revenue of the company increased slightly over the years from 2008 to 2010.This is anencouraging growth in both size and proportion, as a result ofthe business of the company effectively through the formation of a number of basic constructions.

Table 6: Taxes in paid:

No Norm 2008 2009 20101 Licence taxes 6.000.00 6.000.000 6.000.0002 Income taxes 275.006.714 1.623.403.0

652.394.560.869

3 VAT 538.581.058 1.108.972.000

1.092.122.161

(Unit:Billion VND)

(Source: Financial and accounting department)

Comment:. Income taxes increased hardly,1.348.396.351 billion from 2008 to2009,but increased slightly 771.157.804 million from 2009 to 2010.VAT increased slightly 570.390.942 million from 2008 to 2009,but decreased slightly 16.849.839 million from 2009 to 2010.

2.3 Operating model of the company

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Operating model of the business is a specializedconstruction company and a construction contractor. Whilebidding for projects, the construction contractor acts asthe B party and a mission of looking for Investor, which isthe A party, to participate in the bidding for appropriatepackage deals. This activity takes place in the form ofcollecting, receiving the bidding documents (tender documentis a record that shows and analyzes meticulously therequirements of construction projects, including:requirements for the bidding procedures, bid data sheet,evaluation criteria and information content of assessedvaluation, and bidding form) and using anticipated recordsto meet the requirements set out by the Investor. Otherwise,the second way to approach is using the company’s records toinform contractor’s capacity to meet the requirements of theInvestor.

In contrast, the company plays an importance role as the Aparty in activities with Service Providers providing labor,equipment, and materials. The company is responsible forverification of pricing information, understanding workingprinciples based on the contract.

Implementing procedures of a package deal:

Period 1: When Investor has the need for working/buildingconstruction, they shall put it out to tender by publishingnotice of inviting bids, in which specify projectinformation and detailed declaration of items to beconstructed, informing requirements for contractor’scapacity, time, location, and construction quality to beachieved.

Period 2: The B party will receive the notice of invitingbids; the Planning Department shall mainly be in charge andcoordinate with other departments in the bidding preparationthrough the following steps:

Step 1: Checking the notice of inviting bids

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It is an examination for the design, construction drawing,and estimated costs. The Planning Department is responsiblefor reviewing design patterns; at the same time, it willevaluate if notice is appropriate or not, and coordinatewith Technical Department and Finance Department to re-evaluate and come to a conclusion, then inform to Directorthe ability to tender, bidding price, and the reasons whychoosing this package deal.

Step 2: When the Director agrees the competition (tender)

The Planning Department is directly responsible fororganizing the bidding competition, layout, analysis,planning for bidding for examination. At the same time,meticulously researching the notice of inviting bids,package information, and understanding the detailedrequirements for engineering and financial experiences.Contacting the Finance and Technical Departments to examinethe capacity of personnel, machinery, and equipment as wellas the financial capacity of the company. Whether it hasenough money to meet the requirements of the Investor.Giving the project an outline of the detailed and accuratestrategy, ensuring that once the company participates in thebidding, it should get the ultimate goal effectively.

Step 3: Deploying works

The Planning Department shall coordinate with the FinanceDepartment to calculate the anticipated costs, to check thematerials’ costs and the situation of the TechnicalDepartment, to declare machinery equipment, and to estimatethe probability of gains and losses as constructioninvolved.

Step 4: (If won the bid)

Divide supplies needed and send to the Finance Department totrack, combined with other receipts to continuously trackand monitor. If the consumable supplies were provided more

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than needed for construction, that means losses and thecompany must review strategy plans to overcome problems.

Step 5: Creating balance-sheet and record of settlementpayment

Combining with all invoices submitted to the Director, thentransferring to the accounting departments of both A and Bparties to track, create consistency and certainty in thecooperation between A and B parties.Maintaining control ofthe flow of supplies and other changes.

Step 6: Preparing for serving auditing services

The Planning Department is responsible for providing recordsand protecting the complete works from the inspections ofthe inspectors when constructing state projects. Withprecision, dexterity, and flexibility, the departments inthe company must coordinate very closely in hand and inspirit based on a legal basis.

2.4 Financial Report

Table 7: Total revenue from 2012 to 2012;

Norm 2010 2011 2012

Change (2010– 2011) Change (2011 – 2012)

Absolutevalue

Rate %

Absolutevalue

Rate%

Revenue

118.8

154.6

165.01

35.8 13.09

10.41 3.25

( Unit: Billion VND)

(Source: Financial andaccounting department)

Comment: It can be seen that total revenue of the companyincreased slightly over the years from 2010 to 2011. From 2010to 2011,revenue increased by 35.8 billion,more than twice therevenue from 2011 to 2012.The reason for this is that from

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2010 to 2011,the company expanded its market to theoutside.It has received many contracts from the constructionworks. From 2011 to 2012, the company's revenue was affectedby a general reduction of the global economy.

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Table 8:Balance Sheet:

No. 2011 2012 2013

Change (2011-2012) Change (2012-2013)

Absolutevalue % Absolute

value %

Total assets 54.223.894.577

55.957.723.680

111.275.121.772

1.733.829.110

103,2

55.317.398.02

198,8

A. Short-term assets

50.389.841.245

53.011.483.058

25.485.287.041

2.621.642.550

105,2

27.526.196.01

48,07

Cash and cash equivalents

2.068.025.700

5.172.689.795

7.512.242.687

3.104.664.095

250,1

2.339.552.892

145,2

Short-term Investments

0 `0 0 0 0 0 0

Short-term Investments

15.336.792.870

220.465.134 17.423.730.736

15.116.327.74

1,43 17.203.265.6

790,3

Inventories 31.227.710.842

44.226.624.465

351.470.281 12.998.913.623

141,6

43.875.154.18

794,7

Other short-term assets

1.757.311.833

3.391.703.664

197.843.337 1.634.391.831

193 3.193.860.327

5,83

B. Long-term assets

3.834.053.332

2.946.240.622

85.789.834.731

887.812.710

76,84

82.843.594.11

2911,8

Fixed Assets 3.799.533.179

2.843.106.401

85.643.065.640

956.426.778

74,82

82.799.959.24

3012,3

Investments 34.520.153 0 0 34.520.153 0 0 023

financial in long-termOther long-term assets

0 103.134.221 146.769.091 103.134.221

0 43.634.870

142,3

Total capital 54.223.894.577

55.957.723.680

111.275.121.772

1.733.829.110

103,2

55.317.398.02

198,8

A. Liabilities 18.838.600.321

22.459.344.232

91.637.744.648

3.620.743.910

119,2

69.178.400.41

408,01

Current liabilities

18.838.600.321

22.459.344.232

91.637.744.648

3.620.743.910

119,2

69.178.400.41

408,01

Long-term liabilities

0 0 0 0 0 0 0

B. Equity 35.385.294.256

33.498.379.448

19.637.377.124

1.886.914.810

94,6 13.861.002.32

58,62

Equity 35.385.294.256

33.498.379.448

19.637.377.124

1.886.914.810

94,6 13.861.002.32

58,62

Other sources of funding

0 0 0 0 0 0

Unit:Billion VND

(Source: Financial and accounting department)

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Comment:- Total assets increased slightly from 2011 to 2012 (over 1.7 billion), then from 2012 to 2013,total assets increased strongly(over 55 billion).

-Total current assets increased slightly from 2011 to 2012 (over 2.6 billion) ,but,from 2012-2013,it decreased strongly (over 27 billion).

- Cash and cash equivalents increased slowly from 2011 to 2013.

- No short-term investments.

-Short-term receivables declined from 2011 to 2012 (over 15 billion),but,increased significantly from 2012 to 2013 (over 17 billion).

- From 2011 to 2012 ,Inventories increased nearly 13 billion,but,fell sharply between 2012 and 2013 (nearly 44 billion dong)

- Other short-term assetsfrom 2011 to 2012, increased slightly (1.6 billion),then decrease slightly from 2012 to 2013(more than 3 billion).

- Long-term assets decreased slightly from the year 2011-2012is (over 887 million) but increased sharply from 2012-2013 (over 82 billion)

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Table 9:

The statement of financial performance:

Norm 2011 2012 2013 Change (2011-2012)

Change (2012-2013)

Absolute value

(%) Absolute value (%)

Sales of goods andrendering of services

154.541.675.092

165.062.525.966

31.066.339.432

1.052.085.087

106,8 133.996.186.534

18,82

Deductible Amounts 0 0 0 0 0 0 0Net revenue from sales of goods andrendering of services

154.541.675.092

165.062.525.966

31.066.339.432

1.052.085.087

106,80

133.996.186.534

18,82

Costs of goods sole

139.902.174.023

149.516.029.427

28.195.155.813

9.613.855.404

106,87

(121.320.873.614)

18,86

Gross profit from sales of goods andrendering of services

14.639.501.069

15.546.496.539

2.871.183.619

906.995.470

106,19

(12.675.312.920)

18,47

Revenue from financing activities

46.362.503 148.556.273 12.266.598 102.193.770

320,42

(136.289.675) 8,25

Financial expenses 0 0 23000 0 0 (23000) 0General and 3.279.307.7 5.465.512.9 2.796.754. 2.186.205. 166,6 2.668.758.838 51,17

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administrative expenses

48 12 074 164

Net profit from operations

11.406.555.824

10.229.539.900

86.673.143 (1.177.015.924)

89,7 10.142.866.768 0,8

Other income 0 0 0 0 0 0 0Other expenses 0 0 0 0 0 0 0Other profit 0 0 0 0 0 0 0Total profit before tax

11.406.555.824

10.229.539.900

86.673.143 (1.177.015.924)

89,7 10.142.866.768 0,8

The cost of corporate income tax

2.851.638.956

2.557.384.975

21.668.286 294.253.981

89,7 2.535.716.689 0,85

Profit after tax corporate income

8.554.916.868

7.672.154.925

65.004.857 (882.761.943)

89,7 7.607.150.068 0,85

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(Unit:Billion VND) (Source: Financial and accounting department)Comment: Revenue from sales of goods and rendering of servicesequals to net revenue from sales of goods and services: from2011 to 2012. It increased slightly more than 1 billion, butfrom 2012-2013, it plummeted (nearly 134 billion VND). Cost of goods sold increased more than 9 billion VND from2011 to 2012, from 2012 to 2013, it declined more than 121billion VND. Gross profit from sales and services increased slightlymore than 906 million VND in the two years 2011 and 2012, from2012 to 2013, it declined more than 12 billion VND. Revenue from financing activities increased slightly morethan 102 million VND from 2011-2012, decreased slightly bymore than 136 million VND from 2012-2013. Financial Expenses in 2013 was 23000 VND, in 2011 and in2012,were zero. From 2011-2012, General and administrative expensesincreased slightly by nearly 2.8 billion VND. Net profit from operations = total profit before tax, downthrough the years, decreased slightly more than 1 billion VNDfrom 2011 to 2012, declined more than 10 billion VND from 2012to 2013. Other profit, other costs and other income is zero. The cost of corporate income tax reduced over the years,decreased slightly more than 294 million VND from 2011 to2012, declined more than 2.5 billion VND from 2012 to 2013. Profit after corporate income taxes declined over theyears, decreased slightly more than 882 million VND from 2011-2012, declined more than 7.6 billion VND from 2012-2013.2.5. SWOT analysis

Opportunities:1. Macro: real estate market

is a bustling activity, the government bailout

Threats: 1. The process of

integration brings new challenges, especially

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has begun to take effect,with signs that the economic situation of the recession.

2.Micro: Small and medium enterprises can receive more support from the Government than Big enterprises can,in terms of tax policy.

competition from foreign firms who have strong resources. The bad debt situation remains unsettled in the banking systems that makes loans to the business operations more difficultto access.

Strengths:1. Human resources: the

company has 535 staff andworkers who have many years of experience (Director has 16 years ofexperience, deputy director works with 18 years of experience, commander of 12 years of experience, all of whom are engineers construction, in additionto technical staff, architects, accountant....who also have at least 3 years of experience are construction engineers), workers are workers of atleast 3 / 7,39 staff subjects, 462 construction workers.

2. Equipment, construction machinery: High capacity and good quality.For example, there are Ben Maz cars with 10-12 tons capacity in a good situation. Water trucksStec Zin 131 has 2 trucks with the capacity of 3m3 / car which

Weaknesses:

1. Workers' wages are low compared to the average, company need to improve wages for workers to 4-5 million / 1 month to helpthem produce more energetically, ensure family life.

2. Creativity in design is not high.There are still many limitations in aesthetic ,design works.

3. The area of operation of the company is mostly in Hanoi city.Company have a very small marketshare or no marketshare in provinces and surrounded cities.

4.The competitiveness is low due to a small scale construction history and short development.

5.The organizational management structure of the company is still sketchy, so divided to

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actived from 2004 until now still good.

3. Instruments and laboratory equipment inspection at the construction site: the quality is still good, mostly operated from 2005until now as mia drawn metal, oven ...

4. The company has built many projects in Hanoi . projects are ensured quality, have high aesthetics, ensured time as village cultural center of Dai Thap-Mo Xuan Dinh upgrade old market ...

5. Total business capital was 48 billion in 2001, after 13 years of establishment and development of the company,revenue has increased significantly, more than 118 billion in 2010, more than 154 billion in 2011 and 2012 was more than 165 billion.

6. The company has also applied many scientific achievements,including modern technologies in manufacturing, construction, investment in machinery and the recruitment of skilled workers

each unit more specialized to improve workplace productivity.

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Strategy:

s-o: Take advantage of the profits to generate from thebusiness results to re-invest in the construction of newprojects

s-t: Although loans are limited, due to an increase of capitalit should be able to partially overcome the need for futurecapital

w-o: The housing market is a bustling activity after thefreezing period, providing opportunities for market expansioninto other areas (outside Hanoi )

w-t: Need to improve the quality of the company's products inorder to face the competition from foreign enterprises andforeign-powerful longtime => Recruiting young creative humanresources, qualified domestic and foreign.

PART III

CONCLUSION

3.1 Conclusion

After 13 years of establishment and development, Tien PhongConstruction and Tourism Ltd Co. has managed to gain areputable in the construction industry. Thanks to it’sexperienced leadership, the company has carried out a lot ofcomplex projects, which have strict technical, aesthetical andtime requirements. Moreover, the company always tries toconsolidate its operation,by investing money to buy new andmodern equipment and to recruit more well-trained and skilledemployers (all leaders of the company are qualified asMasters, Bachelors and labor levels are majorly 3/7 and 5/7).As a result, capital gain of the company increases steadily:the capital gain in 2010 is 118.8 billion, in 2011 it is 154.6billion and in 2012 it is 165.01 billion despite its initialthe capital was only 48 billion and wages of employers alsoincrease. Besides, the company has met a lot of difficulties

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such as competing with larger companies, having a small numberof staffs,and not having a stable productivity, and etc.Therefore, we want to give some recommendations. At first, thecompany should have a 5 or 10 –year plan with clear goals suchas spreading producing scale, finding new markets,...It is notonly the qualification but also aesthetics, time and marketingwhich are very important. We strongly believe that if thecompany recognizes its strong and weak points, it will be verysuccessful in the future.

We want to thank staffs of Tien Phong Company again forhelping us complete this internship report. We also aware thatthere are a lot of things that need to be improved in thisreport due to our lack of knowledge and experiences.Therefore, we are looking for your response so that we canimprove this report. Thank you!

3.2. References document:

1. Curriculum corporate financial analysis,academic of finance,(pr.dr Ngo The Chi,vice-pr.dr Nguyen Trong Co),print 2009

2. Income statement in 2011,2012,2013 of Tien Phong

Construction and Tourism Ltd Co

3. Balance sheet in 2011, 2012, 2013 of Tien Phong

Construction and Tourism Ltd Co

4. http://sohastore.vn/english-vietnamese-dictionary-

238.html

5. Financial and Managerial Accounting ( JohnJ.Wild_ KenW.Shaw_ Barbara Chiappetta).print2011

6. Fundamentals of Corporate Finance – Ross Westerfield

Jordan ,print2012

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