Tài liệu Cars market and loan installment service from acb

RESEARCH PROJECT (BMBR5103) Research Proposal CARS MARKET AND LOAN INSTALLMENT SERVICE FROM ACB STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : PHAM MINH DUY : 2448443 : MAY 2012 : Mr.NGOC THUY (PhD) NOVEMBER 2013 Page 2 Advisor’s assessment ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. ............................................................................................................................................. Advisor’s signature 1 2 CONTENTS 1. Title 2. Executive summary 3. Problem statement 4. Objectives of research 5. Literature review 6. Justification 7. Research design 7.1 Methodology of research  Data sources  Analyzing method 7.2 SWOT analysis 7.3 History data 8. Budget 8.1 cars loan services 8.2 Profit analysis 8.3 Business model CONCLUSION AND RECOMMENDATION REFERENCE 3 1. TITLE The title of study is “Cars market and loan installment service from ACB”. 2. EXECUTIVE SUMMARY Asia Commercial Bank, often abbreviated to the ACB, is the largest private bank in Vietnam by assets, headquartered in Ho Chi Minh City. It was founded in June of 1993. The bank's stock is listed at Hanoi Securities Trading Center, its symbol is ACB ( Wikipedia ). The bank owns a branches system spreading over the country with more than ten thousands of staffs and experts. The chart 1 below illustrates how much fields the bank is running and its existing services. Some financial highlights in 2011 are also pointed out. So far a range of various types of loan services have been launched for years. In order to improve revenue. A plan of providing personal installment loan service for electricity consumer goods to personal customers is set up by market research division. Chart 1 3. Problem statement Lending to the personal loan customers to enable them to buy goods and services costing beyond their means has a long tradition in the Vietnamese banks. In fact, the emergence of mass markets for consumer goods and the attainment of high standards of living by Vietnamese consumers are often attributed to the widespread 4 availability of personal loan. Yet, undoubtedly owing to its recent introduction into the retail-banking scene, not too much studies are available on this. Credit to the private sector is defined as lending to households and private businesses to carry out transactions in the private sector of the economy. Credit to the household sector includes personal loan and mortgage credit. Personal loan is made up of loans granted for a specific purpose and credit granted for a general use. 4. Objectives of research  Vietnam Auotos Industry analysis.  Estimating cars consumption in Vietnam  Identifying profits that the bank could get by providing its service. 5. Literature review A personal installment loan is a loan made to a private party that is paid back in smaller payments little by little. The most common type of loans are those which are paid back monthly, and involve a payment that combines principal and interest. They are generally different than revolving credit loans in that the loans are issued on a one-time basis. Interest rate percentages are based on the bank's standard rates, plus considerations for personal credit history and possibly other factors. For this study’s aim, the loan targets people whose income are low or average. In view of the World Bank and UNDP , low-income people who spend at least 66 % of their income on food in order to survive . The remaining 34 % for income ( housing , culture , education , health…). 6. Justification The study aims to investigate of Personal installment loan services for Asia Commercial Bank . The study revealed that personal installment loan services have been popularizing among the customers of medium-low income levels in the society. It is demonstrated that, in general, the more Vietnamese income grow up 5 the more demands of cars increase. In additional, cars are one of the most highgrade goods. The personal installment loan services will get customers to consume more and more this such transportation. At once, the more profit are possibility delivered to the bank. The study points out what kind of goods should be chosen for providing the services and in what extent it profits the bank. 7. Research design 7.1 Methodology of research a) Data sources  Secondary data The research uses data from The result of the Vietnamese household living standards surveys 2010 (VHLSS) and cars consumption report for the first six months of 2012 in Vietnam from Toyota_mydinh.com. The tool searching data was used is Google Insights for Search, which can compare search volume patterns across specific regions, categories, time frames and properties. For this case study, the data was collected by some such ways: + Categories : cars market reports, Vietnamese standard living… + Seasonality : 2010, 2011, 2012… + Geographic distribution : Vietnam + Properties: chart, picture… Another method of collecting data is use information portal. The General Statistics Office of Vietnam is the largest data source which was set up for people and investors who are in need of informations about Vietnam.  Primary data The survey in the household will be a one-visit survey, with the person who come to cars showroom. It will be conducted through a questionnaire, with pre-coded answers. 6 Methods and criteria for sampling collection:  Cars store questionaires: Do you own a car? Yes/no Which car do you own? Do you think that you would be buying a car in the near future? Yes/no Which factors do you think would influence your purchasing decision the most? Price Financing past financial record brand name Word of mouth shape and size technical aspect After sale service any other (please specify). Does the company’s past financial performance affect your final decision? Not at all / not too much / significant Cars store questionnaires will be used to collect general information on cars market relating to needs, brandname, financial condition...  Other information through using open questions with content similar to household questionnaire. b) Analysing method Microsoft Office Excel is used to analyse collected data. Since this is an assignment study, the use of Excel become effective and can provide an overall result of personal installment cars loan service in Vietnam. And some graphic features are helpful to illustrate information of data. 7  Study constraints The study only concentrates on assessment of cars consumption and profit of loan service in Vietnam. Although the study analyzes domestic consumption based on data of VLSS, autos reports these data are considered just for references. Field surveys results may not reflect accurately surveyed data of VLSS and autos reports because the primary objective of the field survey only concentrates on cars marketing situation other than dealing with large items covered by VLSS and autos reports. 7.2 SWOT Analysis : According to Vietnam autos report includes BMI'S forecast from www.businessmonitor.com, sales of cars are influented by three major factors : insustry, policy of government and economy. These factor are analysed in detail below:  Vietnam Autos Industry SWOT Strengths:  More opportunity for sales grow because of low rate of vehicle ownership  Low labour costs. Weaknesses :  Import tariffs on completely built units (CBUs) fluctuate leading to instability to the market.  Domestic manufacturers were put pressure due to Increased special consumption tax (SCT) Opportunities :  The market grows in both the premium and small car segments. Threats : 8  Despite the component sector was developed effortfully, growth may still be slow down by a lack of enough domestic CBU production to absorb output. Vietnam Economic SWOT Strengths  Vietnam has been one of the fastest-growing economies in Asia in recent years, with GDP growth averaging 7.2% annually between 2000 and 2010.  The economic growth has lifted many Vietnamese out of poverty, with the official poverty rate in the country reducing from 58% in 1993 to 20% in 2004. Weaknesses  The heavily managed and weak currency lead to reducing incentives to improve the quality of exports, and also serving to keep import costs high, thus contributing to inflationary pressures. Opportunities  By join in WTO, Vietnam access to both foreign markets and capital, this make Vietnamese enterprises stronger through increased competition.  Urbanisation enable urban population will rise from 29% of the population to more than 50% by the early 2040s, and become the long-term growth driver. Threats  Macroeconomic instability could motivate the authorities to put reforms on hold to stabilise the economy. 7.3 History data : Vietnam Autos Sector - Historical Data And Forecasts: 9 Vietnam Autos Sector - Historical Data from January to May 2012:  Jan 2012: Figure 1. 10  February 2012: Figure 2. 11  March 2012:  Figure 3. 12  April 2012:  Figure 4. 13  May 2012:  Figure 5. 14 8. Budget From the figures of cars consumption during the first half of year, Truong Hai company has got a consistent market share. This is due to the fact that the company has brought out a series of KIA models, which have gain consumers' needs. In order to maximize ACB's loan service profit, the bank should choose the products which got good results last months and a larger potential consumers in the future. In case, Truong Hai products are the best choice for bank to provide loan service to their customers. Particularly, KIA MORNING which cost less than 400 milions VND should be chosen for its high demands. The more information of service are below. COMPARING THE FOUR SHARE LEAD COMPANY 50 45 40 35 30 TOYOTA 25 TRUONG HAI 20 GM VIETNAM 15 VINAXUKI 10 5 0 JAN FEB MARCH APRIL MAY 15 8.1 Cars loan service Information: "Benefits:  Time for Installment plan is up to 48 months  Maximum loan amount: 70% of the value of purchased cars  Secured by purchased cars  Flexible repayment method  Document processing is within 3 business days only. Target customers and Conditions and object:  Vietnamese individuals, households, private enterprises.  Can contribute 30% to the value of cars.  Monthly income is enough to repay. Procedure:  ID card/passport, house registration book/temporary resident permit of the borrower and co-payer  Documents to certify the purpose of loan utilization: quotation, contract for the sales and purchase of cars, receipt (if any)  Documents to specify source of income for repayment" (…ACB source) 16 8.2 Profit analysys FORCASTING MONTHLY PROFIT PRICE SALES TIME INTEREST LOAN AMOUNT PAYMENT INCOME/1 RATE PRODUCT 60.18 24 1.5 50 184500000 66420000 369000000 140.42 48 1.666 70 110700000 103278672 Here we expect the quantity of sales with 50% loan amount is 70% of total average sales and the other is 30% SALES OF KIA MORNING PERIOD JANUA FEBRUARY MARCH APRIL MAY AVERAGE 203 141 200.6 RY SALES 250 142 267 8.3 Business Model: The key to reduce cost of delivering the personal installment loan services to customers is that the bank just communicate with cars stores chain instead of a large number of customers. All marketing activities related with cars product are carried out by stores chain. A significant quantity of money is saved for the bank. This such business model is "business to business" which "describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G)." ( Wikipedia ) 17 Customer Customer Customer Customer cars STORES 18 ACB BANK CONCLUSION AND RECOMMENDATION 1. Conclusion: As far as I am concerned the personal installment loan services are released with some important advantages for economy background. On the other hand, the practice of competitors can bring several bad points. For my personal point of view, cars consumption trend keeps increasing in the future. ACB bank wil get successful on this business. 2. Recommendation: Services quality make a decisive factor to the sales. Customers' feedbacks are the important data for the bank to improve the quality better. 19