ASSIGNMENT 1 FRONT SHEET

Qualification BTEC HND in Business

Unit number and title Unit 1: Business and Business Environment

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2. Type and purpose of 3 major sectors: Public, Voluntary and Private sector
2.1. Public sector
2.1.1. Public corporation in Vietnam
The public sector is a part of the economy that is owned, operated, and controlled by
government agencies. According to the Enterprise Law 2020, “State-owned enterprises include
enterprises in which the state holds more than 50% of charter capital and the total number of
shares with voting rights as prescribed in Article 88 of this Law”.

The State owns >=50% The State owns 100%

 Limited liability company (LLC)

Types of with two or more members Limited liability company
companies (LLC) with one member
 Joint stock company (JSC)

Legal bases Enterprise Law 2020, Article 88, Clause 1 and Clause 3

The purpose of the public sector focuses on the interests of the people through the
provision of support and essential services such as postal services, public utilities, or
infrastructure, rather than focusing on profit. For example, Vietnam Electricity (EVN) is a
single-member limited liability company with the state as the owner, holding 100% of the charter
capital. EVN operates in the fields of electricity production, transmission, distribution, and
trading, fulfilling the task of supplying electricity to meet the country's socio-economic
development needs.

2.2. Private sector

The private sector is a part of the economy that is operated by individuals or
organizations for profit and is not controlled by the state. Organizations in the private sector
include newly established businesses or the privatization of public sector entities. A company is
considered to be in the private sector when individuals or private organizations own more than
50% of the equity. The private sector includes joint-stock companies, limited liability companies,
partnerships, and private companies.
The main purpose is profit-oriented, with a portion of the profits distributed to members
or shareholders as dividends. For example, Hòa Phát Group is a joint-stock company with
shareholders as the owners of the company, operating for profit. The profits are distributed to the
shareholders through dividends.

2.3. Voluntary sector

The purpose of these two types of organizations is not profit-focused, but rather centered
on social benefits or goals such as environmental issues and poverty alleviation.

Social enterprise Non-governmental organization (NGO)

 As a business, normal
business operations are  Not a business, no business
Characteristics conducted. operations.
 State-owned or privately  Privately owned.
owned.

Conduct development support and

50% of the business profits are humanitarian aid activities in Vietnam for
reinvested or used to fund social non-profit or other purposes through the
programs. permission of the Government of
Activities
Vietnam.
*Supported by the state with tax
incentives. *Typically foreign non-governmental
organizations (NGOs).

Article 10 of the Law on Enterprises

Legal bases Article 3 of Decree 58/2022/ND-CP
2020

KOTO, iFarm, VinaCapital World Vision Vietnam, Operation Smile

Specific business
Foundation Vietnam, CARE International

3. The major business legal structures (Joint stock company (JSC), Limited liability company
(LLC), Partnership and Sole trader) in Vietnam.
3.1. Legal representatives

Legal bases - Enterprise

Types of company Legal representatives
Law 2020

JSC Article 137

 Chairman of Boards of Directors
 Directors
LLC with two or more
 General Directors Article 79
members

Members are organizations:

 Chairman of Board of Members
 Chairman of company
LLC with one members Member is individual: Article 54
 Chairman of company
 Directors
 General Director

Partnership members
Partnership Article 184

Owner of enterprise
Sole Trader Article 12

3.2. Legal structure of companies

Types of Legal Liability of Legal bases -

Numbers of owners
company personality owners Enterprise Law 2020

JSC 3 <= Shareholders Article 111

LLC with two

or more 2 <= Members <= 50 Article 46
Limited
members
Yes
LLC with one 1 individual or
Article 74
member 1 organization

Unlimited and At least 2 unlimited

Partnership Article 177
Limited partners

Sole Trader No Unlimited 1 individual Article 188

4. Compare the size and the scope of business organizations in Vietnam.

BINH MINH PLASTICS JOINT STOCK THIEN LONG GROUP

COMPANY (1) CORPORATION (2)
Types of
Joint Stock Company (JSC)
company

Thien Long is committed to

providing the best quality
Providing products and services to meet the
stationery products and services
increasing needs of the market. Ensuring harmony
Mission for studying, working, and
of interests of customers, employees, shareholders
creating, contributing to
and society
conquering the pinnacle of human
knowledge.

Maintaining its position as a leading enterprise in

Bringing Thien Long products to
Vietnam's construction plastics industry.
Vision all parts of the country and around
Proactively improve capacity and be ready for
the world
regional and international debate

Operating in the plastic construction materials Production and sales in the field of
Field of
industry, specializing in providing plastic pipe stationery including pens, office
business
products and spare parts tools, student tools, and art tools

Total
capita 3.502.089.917.066 VND 2.808.448.178.821 VND
(2023)

The total
revenue 5.199.922.785.685 VND 3.496.671.800.535 VND
(2023)

The total
employees ? 3.075 people
(2023)

According to Vietdata's report, the scale of Vietnam's stationery market in 2023 will
reach 195.35 million USD. SSI forecasts that the value of Vietnam's plastic pipe market in 2023
will reach 11,000 billion VND (equivalent to 470 million USD), an increase of 10% compared to
2022. Binh Minh Plastics has a significantly larger scale than Thien Long Groups. expressed
through total capital and total revenue. This is reflected in their vision and mission. Thien Long
Groups' goal is to provide the best quality stationery products for many users. Binh Minh Plastics
focuses on production and business activities in the field of plastic construction materials, with
specialized products being plastic pipes and spare parts. This shows that products and services
will affect the size and scope of the organization.

5. Identify and demonstrate the roles and considerations of stakeholders - Analyse the power of
each type of stakeholders.
5.1. Stakeholder.
Stakeholders are individuals or groups that have an interest in a company. They can
affect or be affected by that company's business operations. The list of stakeholders of an
organization is determined according to the context of each business, usually including
managers, employees, suppliers, government and customers.

Types of stakeholder Role of stakeholders Stakeholders’ interest

Managing business activities; Stable job, promotions,

Managers
employee manager (5n) bonuses (5n)
Internal Wage levels; working
Stakeholders conditions; job security;
Employees The company's main workforce personal development (5d)

Number of orders,
Suppliers Providing raw materials (5m) payments, contract
guarantees (5m)

External Promulgate policies, monitor

Taxes, creating jobs for
Stakeholders Government and manage companies'
people. (5t)
activities. (5c)

They are the target of business Price, quality of product,

Customers
(5o) company reputation (5o)
5.2. Analyze the strength of each type of stakeholder by relating it to the characteristics of Thien
Long Groups.

Types of
Power of stakeholder
stakeholder
High - Affects the maintenance of stable operations of the company
Managers
Average - Depends on the company's business activities
Employees

Suppliers Medium - ???

Government High – Policies that directly or indirectly affect the business

Customers High – Main revenue comes from them

6.
6.1. Specific company