MANEGERIAL

ECONOMICS

FLC GROUP
ANALYSIS
REPORT
Contents

TABLE OF CONTENTS
I. COMPANY BACKGROUND ............................................................................................. 3
1. History ........................................................................................................................ 3
2. Remarkable milestones ............................................................................................... 4
II. VISION AND MISSION .................................................................................................... 5
1. Vision ......................................................................................................................... 5
2. Mission ....................................................................................................................... 5
III. GOALS & STRATEGIES ................................................................................................. 5
1. Goals........................................................................................................................... 5
2. Mission ....................................................................................................................... 6
IV. BUSINESS MODEL ......................................................................................................... 7
1. Core values ................................................................................................................. 7
2. Overview of FLC Joint Stock Company’s operation .................................................. 7
REAL ESTATE 7
HOSPITALITY & SERVICES 9
FINANCE INVESTMENT 9
V. COMPANY PERFORMANCE .......................................................................................... 9
2. Company strategy ..................................................................................................... 11
3. Comparing to Industry and Competitors .................................................................. 12
VI. MANAGEMENT CHARACTERISTICS ....................................................................... 13
2. Corporate culture and value ...................................................................................... 15
3. Organizational structure ........................................................................................... 15
XI. PROBLEM: ................................................................................................................... 10
1. Problem: Constructing without license and quality inspection ................................. 10
2. Cause of the problem: Time consuming and complicated process ........................... 13
3. Impacts: ........................................................................................................................... 13
4. Solutions of the problem........................................................................................... 14
X. CHALLENGES ................................................................................................................ 15
1. Competition .............................................................................................................. 15
2. Bamboo Airways ...................................................................................................... 16
XI. SOLUTIONS AND RECOMMENDATIONS ................................................................ 19
1. Real estate................................................................................................................. 19
2. Bamboo Airways ...................................................................................................... 20
XII. CONCLUSION .............................................................................................................. 21
 I. COMPANY BACKGROUND

1. History
FLC Group Joint Stock Company was previously known as Vietnam Trade Corp Joint Stock
Company founded by lawyer Trinh Van Quyet and 2 co-founders in 2001. After considering a
significant event that would have a major influence on the company’s development, the top
executive decided to launch Management Consulting & Investment Monitoring Joint Stock
Company (SMic). By this time, as the company was confronted with requirements of
professionalization and consulting demand of the market policy, the law counselling department
was separated into the law office of SMiC. In 2006, the law office was officially transformed into
SMiC Co., Ltd.
Accordingly, FLC Group Joint Stock Company (FLC) was officially established from the merger
of member companies in 2010. FLC is the abbreviation of Finance, Land, and Commerce which
are the key business areas of the Group. FLC's logo was inspired by images of DNA, gene sequence
and evolution of living creatures. Following 17 years of formation and development, FLC has
become one of the most powerful Vietnamese business corporations with 3 core business
segments:
 Finance: Mainly focus on investment advisory and project management for affiliated
company to generate greater profits, as well as observe and analyze real estate business.
 Real estate: Resort property (FLC Sam Son Beach & Golf Resort, FLC Sea Tower Quy
Nhon, FLC Quang Binh Eco Resort), office for lease; real estate for industrial zone, real
estate brokerage services, real estate consulting service, etc.
 Commerce and services: Import and distribution of specialized medical equipment,
trading in sports facilities, especially golf courses.
 Other main businesses that have a strategic relationship with the main business: High-
tech agriculture; Business of air transport; Financial investment. The Hanoiheadquartered
company also engages in other activities such as resorts and hotels services, civil
construction, trading medical machinery and equipment, education and labor exports,
industrial law and mining and mineral processing, etc.

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 2. Remarkable milestones
For the last 17 years of formation and development since 2001, FLC has made significant changes
in its three major sectors including real estate, finance and commerce. As a matter of fact, it has
accomplished a growing number of important achievements:
 2001: Vietnam Trade Corp JSC was established, operating in commercial and service
sectors. Afterwards, Supervision Management Investment Consulting JSC (SMiC) was
established as well.
 2006: SMiC law office was transferred into SMiC Law firm Co., Ltd.
 2007: FLCS Securities JSC (formerly regarded as Artex Securities JSC). FLCS officially
was operated in 2008.
 2008: Companies were established such as: Truong Phu Investment Co., Ltd (its name was
changed into FLC JSC since January, 2010); SaiGon Invest Co., Ltd and most importantly,
Ninh Bac financial investment JSC (the Precursor of FLC land JSC - owner of Landmark
Tower project).
 2009: stock company and was renamed as Investment Corporati Truong Phu Fortune
Investment Co., Ltd changed its operation model as a joint on General CRV JSC.
 2010: Merged company members into FLC Joint Stock Company.
 2010: 170 billion VND. FLC JSC renamed as FLC Group Joint Stock Company with the
charter capital of
 2011: Ticker FLC was officially listed and traded on HNX.
 2012: Increased the charter capital up to 771.8 billion VND.
 2013: FLC was moved from HNX to HOSE.
 2014: in Thanh Hoa with a total investment of 5,500 billion VND. FLC started Golf Course
and FLC Samson Golf Links international resort project
 2015: Increased the charter capital up to 5,299 billion VND.
 2016: Increased the charter capital up to 6,380 billion VND.
 2017: billion Viet Bamboo Airways Co., Ltd was established with the charter capital of
700 VND. FLC has officially expanded its investment in civil aviation.
 2017: Opened representative office in Japan.
 2018: FLC and Airbus reached an agreement of $3 billion on purchasing 24 aircrafts for
Bamboo Airways.
“Besides, FLC groups was also awarded for honored rewards”“Prestigious real estate
developer” “Premium real estate resorts project with FLC Quy Nhon Beach Golf & Resorts”
“Qualified eco-resorts project with The Coastal Hill” “Top 10 real estate investors in Vietnam”
“Asia Pacific Real Estate Awards”
FLC Group’s project assets value is estimated at a value of $3.8 billion by the international real
estate consulting agency Savills. It is recognized as one of the 50 most valuable brands in Vietnam
by Brand Finance in 2016.

II. VISION AND MISSION

1. Vision
To become a potential, dynamic and competitive group that aims at conquering higher goals; and
to be the first choice of business partners and customers.

2. Mission
FLC commits itself to constantly making renovation and promoting full investment in order to
develop and supply high-quality products and services at reasonable prices to customers. It is a
firm basis for close relationships between the enterprise and customers as well as partners.
For shareholders and partners: To set strong responsibility for long-term benefits as well as
pride of shareholders and partners, and build corporate culture among individuals.
For employees: To build up a solidary, friendly, active and professional work environment in
which all individuals get enthusiastic about serving the development of FLC Group.
For society: To seriously commit to the organization’s and society’s long-term benefits, and
exhibit resident’s feelings of duties and national pride.

III. GOALS & STRATEGIES

1. Goals
 To become a multiand gradually reach out to the international market.-line and multi-sector
group with a strong trade mark in Vietnam
 To continuously improve the quality of products and services.
 To manage and use efficiently resources, reduce costs and risks, and take advantage of
every potential and chance.
 To enhance cooperation with domestic and foreign partners in order to promote potential
and enhance position.
 2. Mission
With the aim at becoming a highly dynamic, potential, competitive corporation that have strong
brand in Vietnam and reaching out to international market, FLC Group constructs its mission with
respect to standards of maintainability, expert administration and sustainable development.
By the end of 2017, FLC corporation’s total revenue and profits after taxes were 11,645 and 385
billion VND respectively, which increased by 87% compared to 2016. Meanwhile, the revenue
from real estate reached 5,563 billion VND, accounting for approximately half of the total
corporation’s revenue (VnEconomy, 2018). Specifically, FLC sold 3,510 real estate products, and
achieved 104% of its plan. By 2017, apartment projects in Hanoi and Ha Long have also exceeded
100% revenue target. Furthermore, real estate activities deployed by FLC Group are allocated
along the nation with the total area of 6,500 ha and 3,1 billion USD of investment, typically mega
ecological resort project worth hundreds of millions of USD in Hanoi, Vinh Phuc, Quang Ninh,
Thanh Hoa, Quang Binh, Binh Dinh, Khanh Hoa, Nghe An (Auschamvn, 2017). Besides the core
field being real estate, FLC group also achieved high business performance in other major areas
such as construction materials, hospitality services, and other services with revenues of 6,082
billion VND.
By diversifying its business fields, FLC always sets its growth target higher by each year. To be
more specific, according to VnEconomy (2018), FLC aims to achieve total revenues and profits of
12,500 and 560 billion respectively, which increase by 7% and 45% in comparison with the
previous year. In quarter 3/2018, FLC Group will issue 300 million shares worth 3,000 billion to
increase its charter capital from VND 7,100 to 10,100 billion. Revenues collected from issuing
shares will be spent on FLC Quang Binh Beach & Golf Resort (FLC Quang Binh).
Another noticeable point is that FLC intends to operate aviation sector, in which they plan to
operate Bamboo Airways in late 2018 (VnEconomy, 2018). Such investment in aviation is
expected to reach two important targets as to meet the travel needs and enhance the ability to attract
domestic as well as international tourists to their resort projects that are in operation. As the
aviation plan is accepted, FLC group will be able to independently exploit potential opportunities
in those two sectors: aviation and resort, which consequently creates a greater chance of double
profits (Dautuchungkhoan, 2018).
 IV. BUSINESS MODEL
1. Core values
“RESPONSIBLE – ACTIVE – CREATIVE – PROFESSIONAL – EFFICIENT – FOR THE
BENEFITS OF ALL PARTIES”
According to FLC Joint Stock Company, its cores values are based on:
 Responsible: to build trust and unswerving relationships with customers and partners by
persistently innovating, fostering investment and providing the both quantity and quality
that express the enterprise’s stature on the market with reasonable price and friendly
environment.
 Active: to aggrandize the investing market and propose perspicuous goals and missions for
future business development.
 Creative: to exceedingly appreciate creativity as a prerequisite for further development and
 commit to strong innovation to keep pace with new market trends in order to
maximize company potentials and opportunities.
 Professional: to set an orientation which is an individual in the company will be a critical
factor in contributing to the overall success of each company, thereby enabling them to be
in harmony with a dynamic, flexible and effective working environment.
 Efficient: to achieve significant economic evolution and bridge the distance towards the
overall goal of the company by taking full advantage of the available resources and
utilizing it to express the enterprise’s stature.
 Benefits for all parties: to commit to achieve the optimal development of the company but
still take responsibilities for the benefits of all partners and subsidiaries.

2. Overview of FLC Joint Stock Company’s operation

FLC revenues comes from some following main business activities:

REAL ESTATE
In early 2010, FLC Group established the property exchange floor and started company’s business
with some services:
Real State Business
Trading floors help clients make investment transactions, buy or lease infrastructure,
apartments, villas and land. There are also investments in land reclamation schemes and
infrastructure on leased land.

Real State Brokerage Services

Real estate brokerage services can be the type of transaction for two or various entities to create
a business relationship. Real estate brokerage services play a key role in the general trading
floor. FLC Group provides brokerage services with various product categories for clients such
as: land, apartments, villas, hotels, resorts, offices, industrial centers, buildings, factories,
industrial areas. The main activities of the floor include: The recipient can be bought from the
parent company, money can be received from affiliated companies and corporations or from
the sale of assets to individuals and customers.

Real State Transaction Service

Notary service (the public and personal notary) together with everything associated with real
state. This service conjointly combines with state management agencies so that the owners are
supplied some services like coming up with, transferring for.

Advertising Service for Real State

The real trading floor is where regular customers have the demand to buy, sell, rent and
evaluate their assets. There are many customers who visit the site to get information and use
customer support services. Therefore, communication services for this field on the website or
trading platform are very effective. Services utilized through the trading floor are the
consulting companys which introduce the state projects, investment companies, companies
providing housing design services, office design and a number of companies. Some of them
provide equipment, furniture, construction materials. Posters are sent to the office, project
photos at the trading floor and on the site, 3D movies on the website, banners are categories
for entertainment.

Real State Consulting Service

The FLC group also provides legal advice and services on investment projects and state
management contracts. In addition, credit and financial advisory services, construction permits
 and legal documentations for clients are also supported through this exchange floor.

HOSPITALITY & SERVICES

FLC group JSC is additionally referred to as a premium category of cordial reception and business
brand. Starting from Cam Quy Lake Golf and resort and speedily increasing, FLC group currently
owns a sequence of luxury hotels and resorts throughout Vietnam, which incorporates FLC Quy
Nhon (five-star resorts), FLC Luxury Resort (international standards), FLC Quy Nhon Beach and
camp; Gold Resort (premium resorts and villas) and FLC Ha Long Bay Golf Club and camp;
Luxury Resort.

FINANCE INVESTMENT
FLC focuses on investment recommendation and project management to assist different units,
which is the basis for the corporate to penetrate the $64,000 estate market. Additionally, FLC
focuses on connecting with giant firms and foreign corporations to reinforce skilled development
in technology investment and land project management.

Furthermore, FLC is additionally concerned in different activities associated with capitalist

building. These activities really generate immense profits and revenue for the corporate.
Specifically, FLC has contractile with FLC Land Finance Investment Joint Stock Company to
supply materials for the institution of FLC Landmark House value 60 billion VND. So far, the
corporate has equipped steel with a complete contract price of 25 billion VND.

V. COMPANY PERFORMANCE
1. Financial performance

2017 2016 2015

Total Revenue 11,172 Billion VND 6,088 Billion VND 5,326 Billion VND

Gross Profit 1,045 Billion VND 1,666 Billion VND 663,860 Billion VND

Net Income 382 Billion VND 1,021 Billion VND 902,186 Billion VND

Total Assets 22,568 Billion VND 17,898 Billion VND 9,814 Billion VND

Figure 5.1a) FLC Group’s Annual Financial Report (based on Investing.com)

In 2017, FLC Group JSC:

 Revenues pumped up nearly 84% compared to 2016 and reached 11,172 billion VND

 Net income fell down dashingly 62% to 382 billion VND

 Gross profit dropped by 37% to 1,045 billion VND

 Total assets rose to 22,568 billion VND, which was on the verge of 20% higher than in
2016

Figure 5.1b) FLC Income Statement (by Investing.com)

Figure 5.1c) FLC Balance Sheet (by Investing.com)

 Figure 5.1d) FLC Cash Flow Statement (by Investing.com)

2. Company strategy
FLC sustainable development is proposed by adjusting and minimizing the risks of corporate,
environmental and social administration to the lowest level as well as ceaselessly up operational
processes to realize business objectives.
In specific, FLC Group’s development factors include:
 Capital and assets: expressing the enterprise’s stature by growing up all capital sources
and assets in both quantity and quality.
 Brand value: maintaining its prestige and reputation with the leading price. Preserving
and developing that such price is the largest challenge in the future.
 Human resources: this is an significant factor that determines the speed and success of a
company. FLC promotes employee recruitment policies and in-depth training to create a
healthy working environment that brushes up self-efficacy.
 Management capabilities: in FLC, human management is the most vital management
ability. additionally to the flexibility to speak, arrange and manage, the administrator
should be a knowledgeable worker and a key supporter of business leaders.
 Creating corporate culture and community responsibility: while corporate culture
makes the personality of business, serious commitments to social responsibility contribute
to consolidating the corporate reputation and connecting the enterprise to the community
 3. Comparing to Industry and Competitors

Figure 5.3a) Top 10 Most Reputable Property Developers 2016 (by Vietnam Report)

Top ten property engineers exhibited in the diagram were the most legitimate in 2016. As indicated by the
chart, FLC Group positioned second place in the land business. Furthermore, FLC Group likewise had a
similar position in the rank with Hoa Phat Group, the two Groups scored 6.5. Based on the
measurements from the graph, FLC Group is turned out to be one of the greatest Groups in the business in
2016, alongside VIN Group, Hoa Phat Group, Novaland, and others.

Figure 5.3b) Top 10 Most Reputable Building Contractors 2018 (by Vietnam Report)
The outline shows top ten building temporary workers which are most trustworthy in the time of 2018. As
can be seen from the diagram, FLC Faros, an organization had a place with FLC Group, was positioned in
tenth position contrasting with others organizations in development industry.

Figure 5.3c) Financial Reports of FLC Group & VIN Group In 2017
(based on Investing.com)
The table showed FLC Group's and VIN Group's monetary measurements in 2017 by means of aggregate
income, net salary and aggregate resources of the two gatherings. In explicit, in 2017, FLC Group earned
11,173 billion VND as aggregate income, which was only one eighth as VIN Group's income. Additionally,
net salary of VIN Group in 2017 was roughly eleven fold the amount of as FLC Group's aggregate net pay.
Likewise, with 27,501 billion VND, net benefit of VIN Group was fundamentally more prominent than
FLC Group's gross benefit.

VI. MANAGEMENT CHARACTERISTICS

1. Board of Managers
 Full Name Date of birth Positions Qualifications Others

-Chairman of the Board (FLC

-Master of Faros Construction JSC)
Chairman of Business -Member of the Board (SG
27/11/1975
Board of Administration Invest Real Estate Co., Ltd)
Management -Bachelor of -General Director (SMiC Law
Trịnh Văn Quyết
Laws Firm)

-Vice Chairman -Member of the Board (H.A.I

of Board of -Doctor of Laws Agriculture Joint Stock
Management -Master of Company)
12/05/1979
-Deputy General International -Deputy General Director
Director Business (SMiC Law Firm)
Lê Thành Vinh

-Vice Chairman
of Board of -President (FLC Helicopters and
Management Doctor of Laws Helicopter Service Company)
19/08/1978
-General -Director (FLC Land Co., Ltd)
Hương Trần Kiều
Director
Dung

-Chairman of the Board (Artex

Securities, KLF International
Member of
Investment Joint Stock
Board of
Company & FLC
23/05/1975 Management Engineer
Communication and
Technology JSC)
Nguyễn Thanh Bình
-Chairman of Member Board
(SG Invest Real Estate Co., Ltd)
 -General doctors -Director (Hong Duc Medical
12/10/1977 Member of -Master of Technology JSC)
Board of Health -Vice Chairman (Hong Duc
Management Management Medical Technology JSC)
Lê Bá Nguyên

Member of Master of
02/06/1972
Board of Business
Management Administration
Trần Quang Huy

(Based on cafef.vn)

2. Corporate culture and value

In FLC, individuals live and cooperate as a family for a typical perfect and a comparable target.
Strong establishment is the base of achievement. In any case, every individual dependably has
chances to convey what demands are. Indeed, FLC empowers each representative to demonstrate
their very own personalities in congruity with the aggregate perfect. Since the accomplishment of
every individual adds to the general achievement of the business, the achievement of the business
is for the advantages of all people.

FLC pushes toward the harmonization between individual advantages and business interests by
means of making a solidary, inviting, dynamic and expert workplace in which all people get eager
about serving the improvement of FLC (Flc.vn, 2018).

3. Organizational structure
 Figure 6.3a) FLC Group Organization Chart (by Flc.vn)

For the most part, all FLC Group's backups and members are under the control of FLC Group. In detail,
there are three little organizations which are named FLC arrive one-part constrained organization, OTP
FLC Vietnam innovations JSC and FLC professional school work as FLC Group's auxiliaries.
Furthermore, FLC kindergarten additionally has a place with FLC arrive one-part restricted
organization. While FLC Group likewise collaborates with different organizations to frame three
partners which are Alaska arrive speculation JSC, FLC golf and resort JSC, and in addition KLF joint
endeavor worldwide venture JSC. Moreover, three little organization are controlled by KLC joint
endeavor worldwide venture JSC straightforwardly named Hai Chau constrained organization, Vinh
Phuc travel JSC and Green Bell excitement JSC.

9
 XI. PROBLEM:
1. Problem: Constructing without license and quality inspection
FLC Group has been successfully conducted numerous of construction projects but dozens of these
have been carried out with the absence of building permits or quality inspection from the
government. Additionally, these skyscrapers have been completely constructed and put into using
while necessary materials related to construction industry have been yet approved or supplied such
as the construction permit from The Department of Construction. Besides, each projects has its
own controversial problems. Going into detail, these aforementioned projects are as followed:
FLC Garden City
 Location: Dai Mo, Bac Tu Liem, Hanoi

 Total area: 53,440 m2

 Total Investment: 3,500 billion VND
 Invested development: 1,638 apartment units and 153 villas and townhouses
The Garden City owned by Alaska Real Estate Investment Corporation (FLC) was expected to be
completed and handed over to customers in the first quarter of 2017, which has been pledged by
the investor to the client in the sale and purchase contract. However, the residents related said that
after that, the investor unilaterally moved the handover time to the fourth quarter of 2017. Up till
now, FLC has been yet able to hand over the house to the customers (Giang, L., & Minh, C, 2018).
Moreover, though the buildings have not been completed and has not met the requirements for
handing over, FLC urged residents to take over the house and pay the money which is wrong
compared to the content signed in the purchase contract (Tri Anh, 2018).

10
FLC Sam Son Beach & Golf Resort
 Location: Ho Xuan Huong Street, Sam Son, Thanh Hoa province.

 Total area: 2,001,485 m2.

 Total investment: 12,088 billion VND

FLC Sam Son Golf Links

 Location: Quang Cu, Sam Son, Thanh Hoa province

 Total area: 761,606 m2

11
  Invested development: A golf course of 18 holes, Clubhouse

Thanh Hoa has changed the purpose of using more than 11 hectares of protective forest land for
FLC to implement the FLC international resort project when they did not have enough conditions
stipulated by the Government Decree on the implementation of the Law forest protection and
development (Lan Anh, 2017). Changing this purpose also violates the provisions of the Prime
Minister's decisions. In addition, four buildings of these 2 projects of FLC in Thanh Hoa
constructed without a license. FLC Sam Son Golf Links were constructed without a license for the
golf course technical area, spiritual area and no record of fire prevention and control. All two FLC
projects inspected by the Ministry of Construction in the conclusion are violations of fire
prevention (Lan Anh, 2017).

FLC Quy Nhon Beach & Golf Resort

 Location: Nhon Ly Commune, Quy Nhon, Binh Dinh province
 Total area: 300 ha
 Total investment: 7,000 billion VND

12
Being constructed without a license, approval of environmental impact assessment and fire
protection also happens with these FLC Quy Nhon projects (Ngọc Tuyên, 2017).

2. Cause of the problem: Time consuming and complicated process

According to Vietnamese law, not only does a project get through compulsory licenses but there
are also sub-licenses which this project has to have. Therefore, this process accounts for a great
deal of time and effort of the corporations themselves. The wider the scope of firms, the more often
the firms have to get through these complicated processes with a large amount of licenses which
has a great contribution to the long delay of big projects. Thus, it can be considered that the
aforementioned problems are risks that seriously lessen the profits of firms and the economy alike.
And FLC group’s decisions to construct their projects before receiving the official permit from
The Department of Constructions are attributed to the time-consuming and complicated approval
processes.

3. Impacts:
Currently, the reputation of FLC Group has unfortunately witnessed a downward trend due to the
regular involvement in illegal issues, especially the building permit and quality inspection. As can
be seen from the Figure 5.3b, FLC group was at 10th one of the most highly real estate companies
in 2016, but there has been a dramatic change in this chart in 2018 – there is no existence of FLC
13
Group in top 10 most prestigious real estate investors. This means customers’ trust in FLC Group
has gradually decreased. Consequently, the gross profit in 2017 gained by FLC Group is less than
that in 2016, which declined 37% to 1,045 billion VND. By and large, the building permit leads
to the decline in FLC Group’s profit as well as FLC ‘s reputation.

Figure 9.2a) Top 10 Prestigious Real Estate Investors in 2018 (by Vietnam Report)

4. Solutions of the problem

Creating a specific long-term plan before starting a new construction project
It is essential to create a specific and step by step plan before putting the project into reality. This
key method helps to forecast the potential business risks and setting the specific time frame for the
operation. This will eliminate the unfortunate loss and mistakes which can cause huge issues later.
Therefore, FLC Group managers should create a detail plan of actions in terms of time frame in
order to avoid time-consuming waiting for approval process of license and also reduce the business
risks.

Enhancing trusts from customers

The process of building customers’ trust takes all corporations enormous time and great effort. The
reality is that building trust between customers and firms is highly likely to create a long term
relationship and ultimately lead to the higher profits. Since FLC Group’s notoriety from client in
14
genuine bequest industry is adversely reduced for a long time due to issues the firm has confronted,
it is vital for FLC to form trusts from clients as well as keep up and enhance the firm’s reputation.
To realize the objectives, FLC Group ought to follow the laws from the government, gaining a
customer’s belief starts with giving extraordinary client benefit. Subsequently, FLC Group may
get to spend more endeavors on fulfilling their customers’ request by giving great client benefit as
well. By upgrading the firm’s trustworthy and building beneficial relationship with clients, FLC
Group can dodge negative financial results as well as increment their net benefit in long term.

X. CHALLENGES
1. Competition

As can be seen from this outline, the real estate business of flat and lodging has gotten to be a
productive showcase that numerous companies point to enter. Particularly, the exchange of lofts
in Hanoi and Ho Chi Minh has expanded drastically through each quarter. In semester fourth,
especially in Hanoi where the number of apartment transactions has exceeded 9,336, more
people have tendency to purchase this type of accommodation.

15
2017 appeared a positive increment in income by 82% (at 11.1272 billion); however, the benefits
after assess as it were over 40% of year arrange (390 billion). Discernibly, real estate sector
accounts for the major extent of add up to revenue.
Ventures of FLC’s apartments and workplaces are basically found within the most crowded areas
in Hanoi. This commerce segment appeals various potential high-paid clients, which is in turn
engaging for organizations to include in. However, focusing on the portion of high-paid clients,
FLC is in completion with emphatically competitive rivals such as Vin Group (Vinhomes Royal
City, Vincom Park Palace), Hoa Phat (Mandarin Garden Hòa phát), Bitexco Group (The Maner
My Dinh), Ciputra Ha Noi (The Link Ciputra), CENLAND (Sky Central) and Sun Group.
Whereas rivals are expanding their products and services not as it were to alter the changes in
property market, but moreover to urge into the mid-end portion, FLC ought to plan a fitting
technique to support and thrive within the market.

2. Bamboo Airways

Viet Bamboo Airlines is an exceptional aspiration of FLC in 2018. In fact, FLC reports that this can
be the primary Viet flying service, adaptably combine between conventional demonstrate and flying
show at sensible costs, pointing at a benefit that satisfy diverse request of each client portion.
16
Agreeing to FLC, the company will begin with dispatch the primary flight on October 10th, 2018,
and offer tickets on the primary day of September. Based on FLC’s venture arrange of flying benefit,
Bamboo Aviation routes will work 37 residential courses to popular goals in Vietnam. The carrier
will rent 20 flying machines in 2018, and 20-30 airplanes will be included the year 2019 to actualize
this arrangement, before getting conveyance of the new aircrafts from the year 2020. Also, FLC
Group is endeavoring to open universal courses and end up one of the best avionics benefit marks in
Vietnam. Regarding market, FLC Group has marked an agreement worth $5.6 billion to initially buy
20 Boeing 787-9 Dreamliner with the end goal to set up a strong establishment for accomplishment
in the coming years. Boeing presented that Boeing 787-9 Dreamliner would assume an essential job
in boosting profitability and financial execution. Likewise, qualified furniture of the Dreamliner is
additionally steady with the introduction of administration offices of global benchmarks, which
makes Bamboo Airway the primary carrier in Vietnam to offer five star seats.

Bamboo Airways has a developing number of focal points while getting support from Government
and occupants, and is relied upon to give proficient administrations at sensible costs to clients. Be

17
that as it may, it is as yet a tenderfoot in this amusement, which implies difficulties and issues are
inescapable

The pie diagram illustrates market shares of flight industry in 2017 with Vietnam Airlines 57%,
Viet Jet Air 32%, Jet star Pacific 15%, and clearly Vietnam Airlines holds a huge part in this
industry. Boeing asserted that Boeing 787 Dreamliner airplane was a totally new air craft and
"super powerful" in the fragment of business airplanes (Bao Moi 2017). Likewise, as a learner in
this oligopoly advertise, Bamboo Airways certainly bring to the table "better" cost than different
rivals with the end goal to pick up client's inclination. In this manner, it would be very hard for
Bamboo Airways to create more noteworthy benefits contrasted with different segments of FLC
Group. However, the huge points of interest of FLC are better costs, yet same quality for clients;
nonetheless, changing clients' behavior is truly issue. Having real pieces of the overall industry,
these organizations have officially manufactured a decent distinction all alone with great
transportation administrations, client administrations and furthermore had turnover from brand
faithfulness. In this way, Bamboo Airways can barely persuade clients who are accustomed to

18
being comfortable with these administrations. And, as a learner in this oligopoly showcase, it
would test for Bamboo Air to have great execution in regards to back toward the start.

XI. SOLUTIONS AND RECOMMENDATIONS

1. Real estate
The industrial flats section continues to be thought-about to be the key space, though it's not shown
a ascension in recent years. However, over ninety p.c of the flats within the FLC, FLC Star Tower,
FLC advanced Pham adorned Street, Long Bien Eco FLC, FLC Garden townproject, etc. area unit
already bought. in step with FLC, assets may be a thriving sector, accounting for concerning five
hundredth of the company's revenue. FLC ought to thus concentrate and still invest as its main
product line during this market.
Business-line segmentation
Although FLC cluster has many exceptional realty comes within the northern half and is hierarchal
as a prime prestigious company, it faces several opponents during this sector.

19
The only distinction between FLC and different competitors is that it tends to use a price-skimming
strategy geared toward prime well-paid customers with high - quality flats with a " golden space "
in town centres. Meanwhile, different corporations, like CENLAND, concentrate onmiddle -
category housing comes that meet the stress of assorted customers with success.
First, so as to contend with success with different sturdy opponents, FLC ought to concentrate on
the implementation of housing comes of the center category to expand its line of products and
meet various client demands.
In addition, the corporate itself will eliminate these new entrants and bit by bit cut back beginners
during this market by applying a worthpenetration strategy. later on, FLC might additionally
expand its housing line of products from luxury to the center category and gain higher market
share.

2. Bamboo Airways
There is little doubt that aviation is Associate in Nursing marketplace market that might prohibit
new entries thanks to monumentalinvestment wants. during this market there area unit several
firms, specifically Vietnam Airlines, Viet Jet Air, Jet star Pacific and alternativeforeign
services.These area unit all well-known services with a few years of aviation expertise and massive
monetary power. Bamboo Airways can face intense competition during this market.
Actually, today's customers have a great deal of decisions than ever before, which implies that the
snap of the demand is incredibly high. it'dso be troublesome for Bamboo Airways to decide on
their customers.
As a result, FLC has possible solutions to boost its competitive ability:
● Focus on its quality so as to fulfill client necessities.
● Use valuation strategy to achieve customers and concentrate a lot of on new potential
customers than existing customers.
● Have Associate in Nursing acceptable advertising strategy to require advantage of domestic
users ' support for domestic product and, within the meanwhile, avoid exaggeration of their
quality so they are doing not find yourself as a phone.

20
 XII. CONCLUSION
In conclusion, the FLC cluster JSC is currently within the progressive method of exponentially
growing each in volume and in significance and retentive its leading position in Vietnam as a non-
public multiline company. FLC cluster was supported in 2001 and may be a palmy multi - billion
dollar development company in virtually each sector during which it strategically decides to
participate. With a radical understanding of Vietnam's macro surroundings and real social
responsibility, within theinterests not solely of business growth and client satisfaction, however
conjointly of the welfare of society as a full, FLC frequently innovates. Building its foothold in
Vietnam, The FLC cluster strives to expand its business internationally within the future, despite
the fact that potential obstacles and challenges look it.

21
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