vietnam accommodation service industry report q4/2019 · 2020. 2. 5. · 2 report summary 5 2.2.4...

1

VIETNAM ACCOMMODATION SERVICE INDUSTRY REPORT Q4/2019

2

Report Summary 5 2.2.4Top enterprises in the world accommodation service

industry44

1. Business Environment 7 3. Vietnam accommodation service industry 46

1.1 Macroeconomic situation 8 3.1 Situation of the tourism and travel industry 47

1.2 Legal framework 11 3.2 Overview of the accommodation service industry 55

1.3 Free Trade Agreements 16 3.3 Supply 63

2.The world tourism and travel industry and The

world accommodation service industry20 3.4 Operating capacity 70

2.1 The world tourism and travel industry 21 3.5 Room hiring price 74

2.1.1 The world tourism and travel industry scale 21 3.6 Typical enterprises 77

2.1.2 Situation of the world tourism and travel industry 27 3.7 Typical accommodations 80

2.2 The world accommodation service industry 31 3.8 Risks and challenges 83

2.2.1 The world accommodation service industry scale 31 Risks 83

2.2.2Situation of the world accommodation service

industry33 Challenges 86

2.2.3Situation of the accommodation service industry

in some regions in the world38 SWOT Analysis 87

Content

3

3.9 Planning and Outlook of development 88

Planning 88

Driving force 95

Outlook of development 99

4 Enterprise analysis 104

4.1 Overview of the enterprises in the industry 105

4.2 Financial analysis 108

Profitability 108

Liquidity 110

Solvency 112

Performance efficiency 113

Return on investment ratios 115

Appendix 116

Content

4

Abbreviations

BCG Boston Consulting Group

CAGR Compounded Annual Growth Rate

CNTA China National Tourism Administration

GSO General Statistics Office (of Vietnam)

JLL Jones Lang LaSalle Incorporated

SBV State Bank of Vietnam

UNWTO World Tourism Organization

VHA Vietnam Hotels Association

VNAT Vietnam National Administration of Tourism

WEF World Economic Forum

WTTC World Tourism and Travel Council

5

Summary

Contribute to world GDP

(2018)x trillion USD (total contribution)

Number of tourists

(2018)x million people

The region with the

largest tourists

(2018)

Europe (x%)

The largest spending

region on outbound

tourism (2018)

China (x%)

Global tourism revenue

(2017)x billion USD

Capital invested in the

accommodation service

industry (2018)

x bllion USD

Value of accommodation

service industry

(2017)

x billion USD

Number of hotels

(2017e)x hotels

The largest hotel

companies

(2016)

Hotel growth (2018) x%

6

Summary

Số lượng khách du lịch

(9M/2019)

Domestic: x million customers

International: x million customers

The country with the

largest number of

international tourists

(9M/2019)

China: x million customers

Korea: x million customers

Hanoi (Q3/2019)

HCMC (Q3/2019)

x rooms

x roomsSupply (2018)

Revenue from tourism

industry (9M/2019)x trillion dong

Capacity (2018) x%

• Vietnam is one of the fastest growing tourist destinations in Southeast

Asia.

Booking channels (2018)Tour operators: x%

OTA: x%

High-end segment

renting price (2018)x USD/room/night

Hanoi (Q3/2019)

HCMC (Q3/2019)

x%

x%

Hanoi (Q3/2019)

HCMC (Q3/2019)

x million dong/room/night

x million dong/room/night

1. BUSINESS ENVIRONMENT

8

Gross domestic product (GDP) in the 3rd quarter of 2019 is estimated to

increase x.xx% compared to the same period last year

Source: VIRAC, GSO

1. Business Environment

1.1 Macroeconomic situation

GDP growth rate by quarter, 2016 - 2019

Source: VIRAC, GSO

%

Contribution of accommodation and catering services to GDP, 2014-

2018Trillion VND

GDP structure at current prices, 9M/2019

Source: VIRAC, GSO

9

VND/USD exchange rate, 2011 - 9/2019

Source: VIRAC, SBV

The VND/USD exchange rate in the first 9 months of 2019 increased slightly but remained relatively stable


1.1 Macroeconomic situation

Source: VIRAC. SBV

USD/CNY exchange rate, 2016 - 9/2019

10

General regulations

• 2017 Law on Tourism became effective from January 1, 2018, including 9 chapters and 78 articles


1.2 Legal framework

11


1.2 Legal framework

• On November 14, 2013, the Decree No. 180/2013/NĐ-CP was issued to amend the Decree 92/2007/NĐ-CP on instructing Tourism Law

• On July 1, 2016, the Government issued the Decree No. 99/2016/NĐ-CP regulating the conditions of security in some conditional business sectors

12


1.2 Legal framework

On December 31, 2017, the Government issued the Decree 168/2017/NĐ-CP particularly regulating some articles of Tourism Law. The Decree became

effective from January 1, 2018

13


1.2 Legal framework

On May 21, 2019, the Government issued Decree No. 45/2019/ND-CP

14


1.2 Legal framework

Business taxes and fees in accommodation service industry

15

Vietnam's integration process since 1995 to date


1.2 Free Trade Agreements

By the end of the 3rd quarter of 2019, Vietnam has signed, implemented, and has been negotiating a total of 17 free trade agreements (FTAs).

16

Comprehensive and Progressive Agreement for Trans-Pacific Partnership - CPTPP



17

ASEAN Economic Community (AEC)



18

Asia-Pacific Economic Cooperation (APEC)



2. THE WOTLD TOURISM, TRAVEL INDUSTRY AND THE WORLD ACCOMODATION

SERVICE INDUSTRY

20

2. The world tourism and travel industry and The world accommodation service industry

2.1 The world tourism and travel industry - 2.1.1 The world tourism and travel industry scale

In 2018, the world tourism market revenue reached approximately x,xxx

billion USD.

billion USD

Source: VIRAC, Statista

Source: VIRAC, WTTC

World Tourism Market Revenue, 2010 - 2017

Labor structure of the world tourism and travel industry, 2016

21



0-1 1-3 3-10 10-25 25-70 240+

Global tourism revenue, 2017

Đơn vị: tỷ USD

22



Source: VIRAC, WTTC

Economic contribution of the Tourism and Travel industry

23



The contribution of the tourism and travel industry to GDP includes:

Direct contribution (1) + Indirect contribution (2) + Derivative contribution (3)

trillion USD


Currently, the contribution of the tourism and travel industry to

the world economy has been greater and greater

Đóng góp của ngành du lịch và lữ hành vào GDP

thế giới, 2010 - 2018

24



billion USD

Source: VIRAC, WTTC

Source: VIRAC, WTTC

Contribution to globally economic growth by sectors, 2018

Top countries have the most important contribution to the

global GDP, 2018, 2027e

25



billion USD

Source: VIRAC, WTTC

Source: VIRAC, WTTC

billion USD

Export value of the world tourism and travel industry, 2011 – 2027fInvestment into the tourism and travel industry, 2011 – 2027f

26

Structure of the contribution to the world tourism and travel industry, 2018

Source: VIRAC, WTTC

The tourism and travel industry includes relative activities of people going out of their homes in a while of under 1 year, for the purpose of holiday or

business, in their country or the others. More precisely,


2.1 The world tourism and travel industry - 2.1.2 Situation of the world tourism and travel industry

27



Source: VIRAC, WTTC

Source: VIRAC, UNWTO

million people

The world visitor volume, 2013 - 2018e

Growth rate of visitors volume by region, 2018e

28



In terms of regions, Europe is the largest tourism market

Source: VIRAC, WTTC

Source: VIRAC, WTTC

Structure of visitor volume by region, 2018

Structure of outbound travelling expenditure by country, 2018

29



China

Source: VIRAC, Statista, CNTA

billion CNY

Indicator 2017e Growth

Inbound Tourism

Outbound Tourism

Revenue from foreign

visitors

Domestic visitors

Revenue from domestic

visitors

Source: VIRAC, Travel China Guide

Some indicators of China tourism and travel industry, 2017e

Source: VIRAC, Trading Economics

million people

Direct contribution of the tourism and travel industry to Chinese GDP,

2011 - 2017e

Number of international visitors to China, 2011 - 2017e

30


2.2 The world accommodation service industry - 2.2.1 The world accommodation service industry scale

billion USD



billion USD

Average revenue from each room in global hotels, by region,

2008 – 2016

The scale of the world hospitality industry, 2014 - 2016

Growth rate of revenue from each room in global hotels, by region, 2017e

Source: VIRAC, STR

31


2.2 The world accommodation service industry - 2.2.1 The world accommodation service industry scale

32

Overview of the world accommodation service industry in different regions, 2017

Source: VIRAC, GHS


2.2 The world accommodation service industry - 2.2.2 Situation of the world accommodation service industry

33

In 2012 and 2013, the hotel industry seriously deteriorate due to the recession





Growth of the world hospitality industry, 2010 - 2018e

Hotel occupancy rate by region over the world, 2015 - 2017

34

billion USD

Source: VIRAC, JLL



Investment capital in the world accommodation service industry by region,

2016 - 2018e

In 2017, total investment in the accommodation industry in the world

reached about x billion USD, up nearly x% compared to 2016, of which

the Asia Pacific region increased the most.

Number of rooms in hotels and accommodations over the world, 2014 – 2025f

35

The number of hotel rooms tends to grow continuously form 2014 to 2025f. There are over xxx,xxx hotels and resorts over the world and their assets

are worth up to xx.x billion USD



Source: VIRAC, JLL

36

Investment trends of industry



Source: VIRAC, JLL

37


2.2 The world accommodation service industry - 2.2.3 Situation of the accommodation service industry in some regions in the world

Source: VIRAC collects

Important markets of the accommodation service industry in Asia-PacificImportant markets of the accommodation

service industry in Asia-Pacific

38


Important markets of the accommodation service industry in Asia-Pacific

No. Market International visitor

volume (Up to the

time of publication)

Number of

new rooms

(2017)

Occupancy rate

(up to 7/2017)

Average daily

rate (up to

7/2017), USD

Turnover per room

(up to 7/12017),

USD



39


Important markets of the accommodation service industry in Asia-Pacific



No. Market International visitor

volume (Up to the

time of publication)

Number of

new rooms

(2017)

Occupancy rate

(up to 7/2017)

Average daily

rate (up to

7/2017), USD

Turnover per room

(up to 7/12017),

USD

40

The United States and Canada market Average growth rate of revenue per room in the USA in 2017, compared with 2016

Source: VIRAC, STR



41

Central and South America market

Europe market



42

Middle East and Africa markets Growth of occupancy rate and average daily rate in some

market in Middle East and Africa, 2017 compared with 2016



43


2.2 The world accommodation service industry - 2.2.4 Top enterprises in the world accommodation service industry

thousand

rooms


HotelTypical enterprises in the world hospitality industry, 2016

44


2.2 The world accommodation service industry - 2.2.4 Top enterprises in the world accommodation service industry

4. Wyndham Hotel Group:

5. Choice Hotels International (CHI):

6. Accor Hotels:

7. Plateno Hotels Group:

8. Starwood Hotels & Resorts Worldwide:

9. Shanghai Jin Jiang International (SJI):

10. Best Western International:

3. VIETNAM ACCOMMODATION SERVICE INDUSTRY

46

Source: VIRAC, VNAT

million people

3. Vietnam accommodation service industry

3.1. Situation of the tourism and travel industry

• Vietnam is one of destinations that have the most rapid growth rate in Southeast Asia

Number of visitors to Vietnam, 2014-9M/2019

47

Source: VIRAC, VNAT

Source: VIRAC, VNAT



million

people

Structure of visitors to Vietnam, 9M/2019

Top 10 countries that have visitors to Vietnam the most,

9M/2019

• In the first 9 months of the year, the number of international

tourists is growing rapidly.

• China is still the leading country in terms of tourists to Vietnam.

48

Source: VIRAC, VNAT

Source: VIRAC, VNAT Source: VIRAC, VNAT



Big cities like Hanoi and TP. Ho Chi Minh City and Da Nang are still

important destinations to attract tourists in the first 9 months of

2019.

million

people

million

people

million

people

Number of foreign visitors to Hanoi, 2014- 9M/2019

Number of foreign visitors to Ho Chi Minh City (HCMC),

2013-9M/2019

Number of foreign visitors to Da Nang, 2013-9M/2019

49



Top countries having the highest development of visitors, 2017

Nguồn: VIRAC, UNWTO

According to the latest report "Tourism Highlights 2018" of

the United Nations World Tourism Organization (UNWTO),

Vietnam has become one of the top choices for many

international tourists.

50

Source: VIRAC, VNAT, Grant Thornton Source: VIRAC, VNAT, Grant Thornton



A survey by Grant Thornton Vietnam reveals that there was no considerable different between the structure of accommodation purposes of visitors

to Vietnam in 2017 and that in 2016

Accommodation purposes, 2017Accommodation purposes, 2018

51



Trillion VND

Source: VIRAC, VNAT

In the first 9 months of 2019, the total revenue from the tourism industry reached x trillion VND, an increase of x% compared to the same period in

2018. The above results show that the tourism industry is still on track to develop as planned. are set by the Government.

The Tourism market revenue, 2009-9M/2019

52

Source: VIRAC, VNAT, Grant Thornton



Structure of tourism revenue by channels, 2013-2018e

53

Source: VIRAC, VNAT, Grant Thornton



Traditional tourism in comparison with online tourism

Traditional tourism Online tourism

Market scale

Marketing expenses

Distribution systems

Information of customers

The initiative of visitors

54


3.2. Overview of the accommodation service industry

Operational model of accommodation service industry

(2)

55

Source: VIRAC, GSO Source: VIRAC, GSO



Thanks to the domestic tourism development, the number of enterprises in the accommodation service industry continuously increase over years.

Between 2010 and 2017, the number of enterprises in the accommodation service industry experienced CAGR of x.x%

Number of enterprises in accommodation service industry,

2010-2017Structure of enterprises in accommodation service industry by region,

2017

56

Source: VIRAC, GSO



Because of the development of tourism, the number of labors in the

accommodation service industry has continuously increased over

years

Number of labors in the accommodation service industry,

2010-2017

57



Source: VIRAC, GSO

billion

VND

billion

VND

Source: VIRAC, GSO

Total investment capital of the accommodation service industry,

2010-2017

Total fixed assets of the accommodation service industry,

2010-2017

58



billion

VND

Source: VIRAC, GSO Source: VIRAC, GSO, Grant Thornton

Revenue of the accommodation service industry,

2010-2018

Structure of revenue of the accommodation service industry,

2014-2018

The accommodation service revenue after slowing down in 2016 due to the effects of the Formosa incident in the Central region caused domestic

tourists to decline in this area to have grown well again in 2017, reaching x billion dong, increasing x% compared to 2016.

59



Source: VIRAC, Grant Thornton



Structure costs and profit on revenue, 2015-2018Structure of unallocated activity-based expenses, 2015-2018

Structure costs and profit to revenue by segment, 2018

60



Source: VIRAC, GSO

billion

VND

Profit of the accommodation service industry, 2010-2017After the decline in 2016, the profit of the accommodation service

industry has grown strongly again in 2017, reaching x trillion VND,

an increase of x% compared to 2016 thanks to the development of

the tourism industry across the country. , the number of tourists

increased sharply during the year.

61



Source: VIRAC, GSO

Structure of booking room channels,2017

Structure of booking room channels,2018

• The structure of booking channels in 2018 recorded a sharp

increase through online travel agency (OTA) channels.

62


3.3. Supply

Source: VIRAC, VNAT

Source: VIRAC, VNAT

The development of tourism industry is one of incentives

encouraging number of accommodations to rise.Number of accommodations over the country, 2008-2018

Number of rooms over the country, 2008-2018

63


3.3. Supply

Source: VIRAC, VNAT

Recently, the accommodation has witnessed a noticeable change of

high-end segment

Rooms

Source: VIRAC, VNAT

Number of accommodations of 3-star and above, 2013-2018

Supply of accommodations of 3-star and above, 2013-2018

64


3.3. Supply

Source: VIRAC, VNAT

In 2018, the number of properties as well as the room supply of most

low-end accommodation tend to decrease.

Rooms

Source: VIRAC, VNAT

Number of accommodation units in the low-end segment, 2016-2018

Supply of low-end segment services, 2016-2018

65


3.3. Supply


In key tourism destinations in Vietnam, 3-star hotels accounts for a major proportion of the luxury supply

Number of hotels in some key tourism destinations, 2017

66


3.3. Supply

Nguồn: VIRAC tổng hợp

Room

Number of 3-star hotels in some newly popular tourism destinations, 2018

In addition to major tourist destinations, the resort real estate market is witnessing a strong rise coming from emerging and potential markets such as

Quang Binh, Quy Nhon, Phu Yen ....

67


3.3. Supply



Number of hotels in Hanoi, Q1/2017-Q3/2019

Rooms

Rooms

Number of hotels in HCMC, Q1/2017-Q3/2019

68


3.3. Supply


Source: VIRAC collects Source: VIRAC collects

Supply of resort vilas in Danang, Q3/2019Supply of condotels in Da Nang, Q3/2019

Supply of hotels in Da Nang, Q3/2019

69


3.3. Supply



Rooms

Supply of 4-star-and-above hotels in some important destinations, 2017

Supply of resort villas in some important destinations, 2017Supply of condotels in some important destinations, 2017

70

Source: VIRAC, VNAT

Source: VIRAC, VNAT


3.4. Operating capacity

Average operating capacity of the accommodation service over

years has been stable around xx%

Average room capacity over the country, 2006-2018

Operating capacity of 4-star and 5-star segments, 2014-2018

71



Source: VIRAC, VNAT


In Q3/2019, the average operating capacity in Hanoi market remained

stable compared to the previous quarter at x%

Operating capacity in Hanoi market, Q1/2016-Q3/2019

Operating capacity in Hanoi by segment, Q3/2019 Operating capacity of some large hotels in Hanoi, 2017

72





Operating capacity of the accommodation service industry in HCMC has

remains stableOperating capacity of accomadation service in HCMC, Q1/2016-Q3/2019

Operating capacity in HCMC by segment, Q3/2019

73




Operating capacity of hotels in some important destinations such as

Da Nang, Nha Trang, Phu Quoc was quite high at xx%

Operating capacity of hotels in some important destinations, 2017

74



3.5. Room hiring price

USD/room/nightAverage room hiring price by segment, 2015-2018

• Average hotel room rates in the high-end segment of 4 or more stars in 2018 continued to grow well, increasing x% compared to 2017.

75





USD/room/night

Million VND/room/night

Average room hiring price in Hanoi, Q1/2015-Q3/2019

Average room hiring price by segment, Q3/2019

76




Million VND/room/night

thousand VND/room/night


Average room hiring price in HCMC, Q1/2016-Q3/2019

Average room hiring price by segment, Q3/2019

77

No. Enterprise Province/ City

1

2

3

4

5

6

7

8

9

10

10 leading international travel enterprises in Vietnam, 2018


3.6. Typical enterprises

Source: VIRAC, VHA

78



Source: VIRAC, VHA

10 leading domestic travel enterprises in Vietnam, 2018


1

2

3

4

5

6

7

8

9

10

79



Source: VIRAC, VHA


1

2

3

4

5

6

7

8

9

10

10 leading restaurants for tourists in Vietnam, 2018

10 leading 5-star hotels in Vietnam, 2018


3.7. Typical accommodations

81



Source: VIRAC, VHA

10 leading 4-star hotels in Vietnam, 2018

82



Source: VIRAC, VHA

10 leading 3-star hotels in Vietnam based on the number of tourists, 2018

83


3.8. Risks and challenges - Risks

• Risks of real estate investors:

• Financial risks:

84



• Risks of strategies:

• Risks of natural and weather conditions:

• Political and social risks:

85



• Risks of advertisement strategies:

• Risks of seasonal factors affecting on the quality of service

86


3.8. Risks and challenges - Challenges

Source: VIRAC, WEF

Source: VIRAC, WEF

10 countries that have the highest competitive ability indicators

of tourism and travel, 2019

Competitive ability indicators of tourism and travel in Southeast Asia, 2019

T87

S W

O


3.8. Risks and challenges – SWOT analysis

88

On January 22, 2013, the Decision No. 201/QĐ-TTg was issued to approve “General Planning of Vietnam tourism development to 2020 and outlook to

2030”


3.9. Planning and Outlook - Planning

89



90

On November 13, 2014, the Decision No. 2054/QĐ-TTg was issued to approve “General Planning of Development of Culture, Families, Sports and

Tourism in key economic region in Central Vietnam up to 2020 and outlook to 2030”



91

On August 18, 2015, the Prime Minister issued Decision 1400/QD-TTg on approving the Master Plan for cultural development, family, physical training

and sports and tourism in the Southeast and the region. Southern key economy till 2020, vision to 2030

Tourism development orientations:



92



On August 14, 2017 the Decision No. 1355/QĐ-TTg was issued to approve “General Planning of Development of Culture, Families, Sports and Tourism

in Northern Vietnam up to 2025 and outlook to 2030”

93

Southeast Asia

Việt Nam

Area of lan

Area of sea

Population (2017)

GDP (2016)

Income per capita (2017)

GDP growth rate (2017)

Vietnam


3.9. Planning and Outlook - Driving force

94

Disposal income and expenditure of household, 2008 – 2017fIncrease in income and purchasing power:

Source: VIRAC, GSO

Structure of population by class (expenditure), 2013 – 2020f

Source: VIRAC collects, BCG

million

people



95

Source: VIRAC collects, Ministry of

Construction

Trillion VND

Source: VIRAC collects, Ministry of

Construction

Debit balance of Real Estate Debt, 12/2012-12/2018

Structure of Debit balance of Real Estate Debt, 2018



In 2018, the total outstanding credit of the economy increased by

about x%, which can be considered as a record in the management of

the State Bank. According to credit institutions, the proportion of

credit in real estate business activities in the total credit balance is

x%, estimated at x trillion, up x% compared to 2017.

96



Vietjet launches 3 routes connecting Vietnam - Japan

Within the framework of the official visit of Vietnamese Prime Minister Nguyen Xuan Phuc to Japan, on October 10 in Tokyo, Vietjet simultaneously launched

three commercial routes from Vietnam to Japan.

Bamboo Airways opens a regular flight from Vietnam to Seoul

97

Source: VIRAC, WTTC

billion USD/ thousand jobs

Source: VIRAC, WTTC


3.9. Planning and Outlook - Outlook

Forecast of value of the world tourism and travel industry, 2026f

Forecast of the world tourism and travel industry growth, 2017e, 2026f

98

Vietnam Visa Exemption, 2018Outlook of tourism industry

Source: VIRAC collects, BCG



No Region NationDuration of ViSA

exemption

1

Asia

2

3

4

5

6

7

8

9

10

11

12

European

13

14

15

16

17

18

19

20

21

22

99

On January 16, 2017, the Resolution No. 08-NQ/TW by Ministry of Politics was issued. The Resolution was on considering tourism as a key economic

sector



100



The development trend of resort real estate in 2019

One of the prominent trends that can be mentioned is that information technology has had a great impact on the tourism industry in both the resort

and business segments.

101



Accommodation service industry revenue, 2016-2022fBillion

dong

Source: VIRAC

Revenue from accommodation services in 2019 is forecast to continue to grow along with the overall development of the tourism industry.

With the development of the domestic tourism industry, the visa policy is increasingly relaxed, the Government increasingly prioritizes the

development of the tourism industry with the attraction of large domestic and foreign investors, the potential for development. The industry's

development is still very large. .

4. ENTERPRISES

103

4. Enterprises

4.1. Overview of enterprises

No Enterprise Contact Information

1

Vinpearl JSC

2

HAINS CARAVELLE HOTEL JOINT

VENTURE COMPANY LTD

3

GRAND PLAZA HANOI HOTEL

CO., LTD

104

4. Enterprises



4

NGU HANH SON BEACH JSC

5

MUONGTHANH GROUP, JSC

6

LOTTE HOTEL VIETNAM (Ltd)

7

SG RIVERSIDE HOTEL CO.,LTD

http://www.thongtincongty.com/company/4b105e4f-cong-ty-trach-nhiem-huu-han-vinametric/

105

4. Enterprises



106

million VND

4. Enterprises

4.2 Financial analysis - Profitability


Net revenue growth, 2017-2018

In 2018, the tourism industry continued to reach new milestones in the number of domestic and international tourists. Motivation from tourists also

helped the industry's revenue soar in 2018. The average revenue growth reached a high, over x%.

107

million VND

4. Enterprises

4.2 Financial analysis - Profitability


Gross profit growth, 2018

With the characteristics of the service industry, the cost of goods sold is not high, the average gross profit margin of the entire accommodation service

industry is always very high compared to other industries, in 2018 reaching x%.

In general, the top hotels in the hospitality industry in 2018 have good solvency, expressed in both quick solvency ratio and current solvency ratio. The

industry average with quick solvency coefficient and current solvency ratio are x and x, respectively.

108

4. Enterprises

4.2 Financial analysis - Liquidity


Liquidity Ratios, 2018

109

Rounds

4. Enterprises

4.2 Financial analysis - Liquidity


Receivable turnover, 2018

In general, the leading businesses in the hospitality industry have relatively high receivables turnover, averaging 14.84 rounds/year. It clearly shows the

characteristics of the short-term service business.

110

4. Enterprises

4.2 Financial analysis - Solvency


Solvency, 2018

In general, businesses in the hospitality industry have a fairly balanced capital mobilization structure and tendency to use less loans.

It can be seen that the long-term names such as Chains Caravelle, Grand Plaza Hanoi, Saigon Riverside, Hanoi Hotel all have low loan mobilization

structure due to only providing accommodation activities, not scaling up. In contrast, the names like VinPearl, Muong Thanh, Indochina Resort Hoi An

expanded not only in the number of accommodation establishments but also in the size of the accommodation, expanding to many other fields and

industries.

111

4. Enterprises

4.2 Financial analysis - Performance efficiency



Rounds

Rounds

Asset Turnover Ratio, 2018

Fixed Asset Turnover ratio, 2018The two long-term hotels, Chains Caravelle and

Hanoi Hotel, have the best effect of using fixed

assets in 2018, respectively x cycles/year and x

rounds/year.

112

4. Enterprises

4.2 Financial analysis - Performance efficiency



Interest Expense/Net revenue, 2017-2018

Enterprise management expense/Net revenue, 2017-2018

113

4. Enterprises

4.2 Financial analysis - Return on investment ratios


Return on investment ratios, 2018

Thanks to the good utilization of the strong growth of tourism in the past year, combined with the use of quite high financial leverage, it has helped

businesses such as Grand Plaza Hanoi Co., Ltd. and Ngu Hanh Beach Resort Joint Stock Company. Son, Indochina Resort have very high profit margin

compared to other businesses in the industry.

114

Appendix

Financial Statement

VINPEARL JSC

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS

I. Cash and petty cash

II. Temporary investments

III. Accounts receivable

1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS

A. CURRENT LIABILITIES

I. Current liabilities

1. Loan and Current liabilities

2. Taxes and accounts payable to the state

II. Long-term liabilities

1. Loan and Long-term liabilities

2. Long-term accounts payable

B. OWNER'S EQUITY

TOTAL LIABILITIES AND OWNER'S EQUITY

INCOME STATEMENT

Unit: VND 2017 2018

Net revenue from sales and services

Cost of goods sold and services

Gross profit of goods sold and services

Profit from financial activities

Financial cost

Interest expense

Cost of goods sold

Administration cost

Net profit from business activities

Gross profit before tax

Current corporate income tax expense

Deferred corporate income tax expense

Profit after tax

115

Appendix

Financial Statement

CHAINS CARAVELLE HOTEL JOINT VENTURE COMPANY LTD

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

116

Appendix

Financial Statement

GRAND PLAZA HANOI HOTEL CO., LTD

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

117

Appendix

Financial Statement

NGU HANH SON BEACH JSC

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

118

Appendix

Financial Statement

MUONGTHANH GROUP, JSC

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

119

Appendix

Financial Statement

LOTTE HOTEL VIETNAM (Ltd)

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

120

Appendix

Financial Statement

SG RIVERSIDE HOTEL JOINT VENTURE COMPANY

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

121

Appendix

Financial Statement

LAGUNA, LTD

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

122

Appendix

Financial Statement

INDOCHINA RESORT COMPANY LIMITED (HOIAN)

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

123

Appendix

Financial Statement

HANOI HOTEL LIMITED LIABILITY COMPANY

BALANCE SHEET

Unit: VND 2017 2018

A. CURRENT ASSETS




1. From customers

IV. Inventory

B. LONG-TERM ASSETS

TOTAL ASSETS








B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND 2017 2018





Financial cost

Interest expense

Cost of goods sold

Administration cost





Profit after tax

124

REPORT DISCLAIMER

Report Disclaimer:

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has

produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to

be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently

verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and

materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not

use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organisation, or place it on a website for

public access without the express written permission of VIRAC.

SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US:

VIETNAM INDUSTRY RESEARCH AND CONSULTANT (VIRAC JSC.,)

6 th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam

Website: http://virac.com.vn/

Email: [email protected] | Tel: +84 463289520

Thank you !

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