APPENDIX A

Table A3.1 Investment by countries, Jan 1994 to Dec 1, 1994 (US$ million)
Country

Investment, US$

Legal capital, US$

Hong Kong

45

516.00

220.30

Singapore

26

512.20

225.40

Japan

26

327.60

174.20

Taiwan

48

320.00

167.10

South Korea

41

259.70

105.50

Switzeland

235.80

114.20

USA

19

221.70

97.10

France

17

149.30

53.50

Malaysia

10

121.70

52.70

10 Thailand

14

110.90

60.00

11 Bermuda

70.40

17.40

12 Netherland

45.10

27.80

13 Australia

41.70

24.30

14 Canada

26.00

26.00

15 Danmark

24.30

19.70

30

103.70

56.50

301

3,086.10

16 Others
Total
Source: SCCI, 1994

1,441.70

-76-

Table A3.2 Investment by countries, Jan 1988 to Dec 1, 1994 (US$ million)

Country

Investment, US$

Legal capital, US$

Taiwan

148

1,853.80

883.40

Hong Kong

163

1,495.50

715.00

Singapore

74

969.50

468.70

South Korea

91

855.70

378.70

Japan

69

690.80

484.00

Australia

43

676.90

272.80

Malaysia

32

577.50

304.70

France

58

540.70

267.70

Netherland

15

350.00

311.10

10

United Kingdom

15

345.00

309.70

11

British Virgin Island

262.50

111.40

12

Switzeland

11

244.60

121.90

13

USA

25

225.10

100.50

14

Thailand

40

224.80

140.00

15

Bermuda

164.90

85.90

16

Others

299

2,639.40

1,365.30

Total

948

10,262.90

5,437.40

Source: SCCI, 1994

WEST LAKE DEVELOPMENT COMPANY LIMITED

Communication Channels

Figure A4.1

(for Project & Construction Management)

Housing
HousingRenovation
Renovation&&Development
DevelopmentCompany
Company
(Board
of
Directors)
(Board of Directors)

Primwell
PrimwellInvestments
InvestmentsPte
PteLtd
Ltd
(Board
of
Directors)
(Board of Directors)

Owners
OwnersRepresentative
Representative
(Cheah
(CheahSheau)
Sheau)

Sam Chong in Hanoi will assist in

the communication with HRDC

Project
ProjectManager
Manager&&Quality
Quality
Supervisor
Supervisor
(Simon
(SimonLee
LeeOf
OfLiang
Liang
Court-Veldon)
Court-Veldon)

Interior
InteriorDesigner
Designer

User
UserRepresentative
Representative
(Allan
(AllanTan
TanofofLiang
LiangCourt
CourtRegency)
Regency)

Design
DesignTeam
TeamLeader
Leader
(Furuichi
(Furuichi&&Associates)
Associates)

Design
DesignTeam
TeamMembers
Members
**JJRoger
RogerPreston
Preston
*DTC
*DTCFormwork
FormworkConsultant
Consultant

West
WestLake
LakeSite
SiteManager
Manager
(Mr.
(Mr.YYKKLow)
Low)

Local
Local
Contractors
Contractors

Local
LocalArchitect
Architect
(CDIH)
(CDIH)

Structureal
Structureal
Engineers
Engineers

-78-

Table A4.1 Master Budget for West Lake Service Apartments Development
Project
Items
1

PRE-PROJECT
Feasibility study, preliminary designs
Land clearing, soil test, fence
Gifts and entertainement
Groung breaking ceremony
Rental on office and apartments
Travel, transportation
Telephone, accounting, petty expenses
Subtotal
OFFICE IN SINGAPORE
Travel, transportation
Gifts, party, entertainment
Telecommunication
Local travel and petty expenses
Accounting, auditing, law
Subtotal
OFFICE IN HANOI
Office rent, equipment
Coordination, translation
Travel, transportation, petty expenses
Subtotal
CONSUNTANCY
Management, supervision
Foreign archtect
Water & power system design
Interior design
Construction structure
Local architect
Transportation
Subtotal

US$

Total

65,000
190,000
7,000
18,000
19,000
90,000
16,000
405,000
62,000
40,000
4,000
1,000
55,000
162,000
18,000
20,000
1,000
39,000
100,000
100,000
42,000
75,000
10,000
50,000
30,000
407,000

-79-

Table A4.1 Master Budget for WLSAD Project (continue)

Items
5

OFFICE IN CONSTRUCTION SITE

Salary for supervisors, clerks
Travel, transportation
Office equipment
Telecommunication, security
Subtotal
CONSTRUCTION
Surface clearing, foundation work
and main construction work
Finish work
Water & power system
Swimming pool, tennis court, other
Preparation work & contigencies
Subtotal
MATERIALS, EQUIPMENT
Equipment for Apartments
Equipment for reception, lounge rooms
Cars
Subtotal
PRE-INAUGURATION
Telephones system
Accounting system
Traning
Travel
Advertisment
Subtotal
TOTAL ESTIMATED COST

US$

Total

75,000
19,000
11,000
25,000
130,000

1,811,000
400,000
1,297,000
104,000
440,000
4,052,000
1,440,000
12,000
70,000
1,522,000

296,000
7,013,000

-80-

Table A4.2 Expenses for West Lake Service Apartments Development

Items
PRE-PROJECT (1/10/1992-31/7/1993)
Feasibility study, preliminary designs
Land clearing, soil test, fence
Gifts and entertainement
Groung breaking ceremony
Rental on office and apartments
Travel, transportation
Telephone, accounting, petty expenses
Subtotal
OFFICE IN SINGAPORE
Travel, transportation
Gifts, party, entertainment
Telecommunication
Local travel and petty expenses
Accounting, auditing, law
Subtotal
OFFICE IN HANOI
Office rent, equipment
Coordination, translation
Travel, transport., petty expenses
Subtotal
CONSUNTANCY
Management, supervision
Foreign archtect
Water & power system design
Interior design
Construction structure
Local architect
Construction support system
Transportation
Subtotal

US$

Total

65,000
190,000
113,000
18,000
19,000
90,000
16,000
511,000
62,000
40,000
4,000
1,000
55,000
162,000
18,000
20,000
1,000
39,000
100,000
100,000
42,000
75,000
10,000
80,000
6,000
121,000
534,000

-81-

Table A4.2 Expenses for WLSAD (continue)

Items
5

OFFICE IN CONSTRUCTION SITE

Salary for supervisors, clerks
Travel, transportation
Office equipment
Telecommunication, security
Subtotal
CONSTRUCTION
Surface clearing, foundation work
and main construction work
Finish work
Water & power system
Swimming pool, tennis court, other
Preparation work & contigencies
Subtotal
EQUIPMENT
Apartments (US$ 24,000*60 units)
Reception, lounge rooms
Subtotal
PRE-INAUGURATION
Telephones system
Accounting system
Traning
Travel
Advertisment
Subtotal
TOTAL DEVELOPMENT COST

US$

Total

75,000
19,000
11,000
25,000
130,000

1,811,000
400,000
1,170,000
104,000
440,000
3,925,000
1,440,000
12,000
1,452,000

296,000
7,049,000

-82-

Table A4.3 Projected Income Statement (conducted in feasibility study)

R1
R2
R
E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

1
Revenue
Revenue from
2,061,000
apartments
Revenue from services
515,250
Total Revenue
2,576,250
Expenses
Expenses on apartments
309,150
Expenses (other
309,150
services)
Salary
88,800
Social expense
8,880
Expenses (water &
103,050
power)
Expenses on cars, buses
5,400
Management expense
64,406
Expense on training
25,763
Insurance fees
51,525
Maintenamce cost
51,525
Advertisement expense
51,525
Interest
450,000
Depreciation
547,171
Inflation cost
82,440
Other expenses
103,050
Total Expenses
2,251,835

GP
TP
ARE
D
DVN
IVN

2,596,860

3,181,154

3,817,384

649,215
3,246,075

795,288
3,976,442

954,346
4,771,730

389,529
389,529

477,173
477,173

572,608
572,608

88,800
8,880
129,843

88,800
8,880
159,058

88,800
8,880
190,869

5,400
81,152
32,461
64,922
64,922
64,922
450,000
547,171
103,874
129,843
2,551,247

5,400
99,411
39,764
79,529
79,529
79,529
450,000
547,171
127,246
159,058
2,877,721

5,400
119,293
47,717
95,435
95,435
95,435
450,000
547,171
152,695
190,869
3,233,215

Gross profit
Taxes
Addition to RE
Dividends
To VN party
Real income to VN
party
DFR To foreign party
TR
Remittance tax
IFR Real income to F.
party

324,415
0
16,221
308,194
92,458
55,971

694,828
132,017
34,741
528,069
158,421
121,934

1,098,721
208,757
54,936
835,028
250,508
214,021

1,538,515
292,318
76,926
1,169,272
350,782
314,295

215,736
15,102
200,634

369,649
25,875
343,773

584,520
40,916
543,603

818,490
57,294
761,196

GI
f
CF
CCF

51,589
13.69%
855,366
855,366

194,380
20.70%
1,075,241
1,930,606

286,160
29.02%
1,382,199
3,312,806

386,099
36.16%
1,716,443
5,029,249

Government Income
Dividends/Expenses
Dividends + Depreciation
Cumulative Cash flow

-83-

Table 4.3 Projected Income Statement (Continue ...)

5

R1
R2
R

4,509,285
1,127,321
5,636,606

4,734,749
1,183,687
5,918,437

4,971,487
1,242,872
6,214,359

5,220,061
1,305,015
6,525,076

5,481,064
1,370,266
6,851,330

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

676,393
676,393
88,800
8,880
225,464
5,400
140,915
56,366
112,732
112,732
112,732
450,000
547,171
180,371
225,464
3,619,814

710,212
710,212
97,680
9,768
236,737
5,400
147,961
59,184
118,369
118,369
118,369

745,723
745,723
97,680
9,768
248,574
5,400
155,359
62,144
124,287
124,287
124,287

783,009
783,009
97,680
9,768
261,003
5,400
163,127
65,251
130,502
130,502
130,502

822,160
822,160
97,680
9,768
274,053
5,400
171,283
68,513
137,027
137,027
137,027

547,171
189,390
236,737
3,305,561

547,171
198,859
248,574
3,437,838

547,171
208,802
261,003
3,576,729

547,171
219,243
274,053
3,722,564

GP
TP
ARE
D
DVN
IVN
DFR
TR
IFR
GI
f
CF
CCF

2,016,792
383,190
100,840
1,532,762
459,829
423,342
1,072,933
75,105
997,828
494,783
42.34%
2,079,933
7,109,182

2,612,876
496,446
130,644
1,985,786
595,736
559,249
1,390,050
97,304
1,292,747
630,237
60.07%
2,532,957
9,642,139

2,776,521
527,539
138,826
2,110,156
633,047
596,560
1,477,109
103,398
1,373,711
667,424
61.38%
2,657,327
12,299,466

2,948,348
560,186
147,417
2,240,744
672,223
635,736
1,568,521
109,796
1,458,725
706,470
62.65%
2,787,916
15,087,382

3,128,766
594,466
156,438
2,377,862
713,359
676,872
1,664,504
116,515
1,547,988
747,468
63.88%
2,925,034
18,012,416

-84-

Table 4.3 Projected Income Statement (Continue ...)

10
R1
R2
R
E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E
GP
TP
ARE
D
DVN
IVN
DFR
TR
IFR
GI
f
CF
CCF

11

12

13

14

15

5,755,117
1,438,779
7,193,897

6,042,873
1,510,718
7,553,592

6,345,017
1,586,254
7,931,271

6,662,268
1,665,567
8,327,835

6,995,381
1,748,845
8,744,226

7,345,150
1,836,288
9,181,438

863,268
863,268
97,680
9,768
287,756
5,400
179,847
71,939
143,878
143,878
143,878

906,431
906,431
107,448
10,745
302,144
5,400
188,840
75,536
151,072
151,072
151,072

951,753
951,753
107,448
10,745
317,251
5,400
198,282
79,313
158,625
158,625
158,625

999,340
999,340
107,448
10,745
333,113
5,400
208,196
83,278
166,557
166,557
166,557

1,049,307
1,049,307
107,448
10,745
349,769
5,400
218,606
87,442
174,885
174,885
174,885

1,101,773
1,101,773
107,448
10,745
367,258
5,400
229,536
91,814
183,629
183,629
183,629

547,171
230,205
287,756
3,875,691

547,171
241,715
302,144
4,047,220

547,171
253,801
317,251
4,216,042

547,171
266,491
333,113
4,393,306

547,171
279,815
349,769
4,579,433

547,171
293,806
367,258
4,774,867

3,318,206
630,459
165,910
2,521,836
756,551
720,064
1,765,285
123,570
1,641,715
790,516
65.07%
3,069,008
21,081,42
4

3,506,372
666,211
175,319
2,664,843
799,453
762,966
1,865,390
130,577
1,734,813
833,275
65.84%
3,212,014
24,293,43
8

3,715,229
705,893
185,761
2,823,574
847,072
810,585
1,976,502
138,355
1,838,147
880,736
66.97%
3,370,745
27,664,18
3

3,934,528
747,560
196,726
2,990,242
897,072
860,585
2,093,169
146,522
1,946,647
930,569
68.06%
3,537,413
31,201,59
6

4,164,793
791,311
208,240
3,165,243
949,573
913,086
2,215,670
155,097
2,060,573
982,895
69.12%
3,712,414
34,914,01
0

4,406,571
837,248
220,329
3,348,994
1,004,698
968,211
2,344,296
164,101
2,180,195
1,037,836
70.14%
3,896,165
38,810,17
5

-85-

Table 4.3 Projected Income Statement (Continue ...)

16

17

18

19

20

R1
R2
R

7,712,408
1,928,102
9,640,510

8,098,028
2,024,507
10,122,535

8,502,930
2,125,732
10,628,662

8,928,076
2,232,019
11,160,095

9,374,480
2,343,620
11,718,100

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

1,156,861
1,156,861
118,193
11,819
385,620
5,400
241,013
96,405
192,810
192,810
192,810

1,214,704
1,214,704
118,193
11,819
404,901
5,400
253,063
101,225
202,451
202,451
202,451

1,275,439
1,275,439
118,193
11,819
425,146
5,400
265,717
106,287
212,573
212,573
212,573

1,339,211
1,339,211
118,193
11,819
446,404
5,400
279,002
111,601
223,202
223,202
223,202

1,406,172
1,406,172
118,193
11,819
468,724
5,400
292,952
117,181
234,362
234,362
234,362

547,171
308,496
385,620
4,991,891

547,171
323,921
404,901
5,207,357

547,171
340,117
425,146
5,433,595

547,171
357,123
446,404
5,671,146

547,171
374,979
468,724
5,920,574

GP
4,648,618
TP
883,237
ARE
232,431
D
3,532,950
DVN 1,059,885
IVN
1,023,398
DFR 2,473,065
TR
173,115
IFR
2,299,950
GI
1,092,839
f
70.77%
CF
4,080,121
CCF 42,890,297

4,915,178
933,884
245,759
3,735,536
1,120,661
1,084,174
2,614,875
183,041
2,431,834
1,153,412
71.74%
4,282,707
47,173,004

5,195,067
987,063
259,753
3,948,251
1,184,475
1,147,988
2,763,775
193,464
2,570,311
1,217,014
72.66%
4,495,422
51,668,426

5,488,949
1,042,900
274,447
4,171,601
1,251,480
1,214,993
2,920,121
204,408
2,715,712
1,283,796
73.56%
4,718,773
56,387,198

5,797,526
1,101,530
289,876
4,406,120
1,321,836
1,285,349
3,084,284
215,900
2,868,384
1,353,917
74.42%
4,953,291
61,340,489

-86-

Table 4.3 Projected Income Statement (Continue ...)

21

22

23

24

25

R1
R2
R

9,843,204
2,460,801
12,304,005

10,335,364
2,583,841
12,919,205

10,852,132
2,713,033
13,565,165

11,394,739
2,848,685
14,243,424

11,964,476
2,991,119
14,955,595

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

1,476,481
1,476,481
129,530
12,953
492,160
5,400
307,600
123,040
246,080
246,080
246,080

1,550,305
1,550,305
129,530
12,953
516,768
5,400
322,980
129,192
258,384
258,384
258,384

1,627,820
1,627,820
129,530
12,953
542,607
5,400
339,129
135,652
271,303
271,303
271,303

1,709,211
1,709,211
129,530
12,953
569,737
5,400
356,086
142,434
284,868
284,868
284,868

1,794,671
1,794,671
129,530
12,953
598,224
5,400
373,890
149,556
299,112
299,112
299,112

174,142
393,728
492,160
5,821,914

174,142
413,415
516,768
6,096,909

174,142
434,085
542,607
6,385,653

174,142
455,790
569,737
6,688,835

174,142
478,579
598,224
7,007,175

GP
6,482,090
TP
1,231,597
ARE
324,105
D
4,926,389
DVN 1,477,917
IVN
1,441,430
DFR 3,448,472
TR
241,393
IFR
3,207,079
GI
1,509,477
f
84.62%
CF
5,100,530
CCF 66,441,020

6,822,296
1,296,236
341,115
5,184,945
1,555,484
1,518,997
3,629,462
254,062
3,375,399
1,586,786
85.04%
5,359,087
71,800,106

7,179,512
1,364,107
358,976
5,456,429
1,636,929
1,600,442
3,819,500
267,365
3,552,135
1,667,959
85.45%
5,630,571
77,430,677

7,554,589
1,435,372
377,729
5,741,488
1,722,446
1,685,959
4,019,041
281,333
3,737,708
1,753,192
85.84%
5,915,629
83,346,306

7,948,420
1,510,200
397,421
6,040,799
1,812,240
1,775,753
4,228,559
295,999
3,932,560
1,842,686
86.21%
6,214,941
89,561,247

-87-

Table A4.4 Estimated Income Statement (conducted before operation)

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

Revenue
Revenue from apartments
Revenue from services
Total Revenue
Expenses
Expenses on apartments
Expenses (other services)
Salary
Social expense
Expenses (water & power)
Expenses on cars, buses
Management expense
Expense on training
Insurance fees
Maintenamce cost
Advertisement expense
Interest
Depreciation
Inflation cost
Other expenses
Total Expenses

GP
TP
ARE
D
DVN
IVN
DFR
TR
IFR
GI
f
CF
CCF

Gross profit
Taxes
Addition to RE
Dividends
To VN party
Real income to VN party
To foreign party
Tax on income remittation
Real income to F. party
Government Income
Dividends/Expenses
Dividends + Depreciation
Cumulative Cash flow

R1
R2
R

Year 1

Year 2

Year 3

2,700,000
675,000
3,375,000

3,402,000
850,500
4,252,500

4,167,450
1,041,863
5,209,313

405,000
405,000
88,800
8,880
135,000
5,400
84,375
33,750
67,500
67,500
67,500
450,000
547,171
108,000
135,000
2,608,876

510,300
510,300
88,800
8,880
170,100
5,400
106,313
42,525
85,050
85,050
85,050
450,000
547,171
136,080
170,100
3,001,119

625,118
625,118
88,800
8,880
208,373
5,400
130,233
52,093
104,186
104,186
104,186
450,000
547,171
166,698
208,373
3,428,814

766,124
0
38,306
727,817
218,345
181,858
509,472
35,663
473,809
72,150
27.90%
1,274,989
1,274,989

1,251,381
237,762
62,569
951,050
285,315
248,828
665,735
46,601
619,133
320,851
31.69%
1,498,221
2,773,210

1,780,498
338,295
89,025
1,353,179
405,954
369,467
947,225
66,306
880,919
441,087
39.46%
1,900,350
4,673,560

-88-

Table A4.4 Estimated Income Statement (continue ...)

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

R1
R2
R

5,000,940
1,250,235
6,251,175

5,907,360
1,476,840
7,384,200

6,202,728
1,550,682
7,753,410

6,512,865
1,628,216
8,141,081

6,838,508
1,709,627
8,548,135

7,180,433
1,795,108
8,975,542

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

750,141
750,141
88,800
8,880
250,047
5,400
156,279
62,512
125,024
125,024
125,024
450,000
547,171
200,038
250,047
3,894,527

886,104
886,104
88,800
8,880
295,368
5,400
184,605
73,842
147,684
147,684
147,684
450,000
547,171
236,294
295,368
4,400,989

930,409
930,409
97,680
9,768
310,136
5,400
193,835
77,534
155,068
155,068
155,068

976,930
976,930
97,680
9,768
325,643
5,400
203,527
81,411
162,822
162,822
162,822

1,025,776
1,025,776
97,680
9,768
341,925
5,400
213,703
85,481
170,963
170,963
170,963

1,077,065
1,077,065
97,680
9,768
359,022
5,400
224,389
89,755
179,511
179,511
179,511

547,171
248,109
310,136
4,125,794

547,171
260,515
325,643
4,299,083

547,171
273,540
341,925
4,481,036

547,171
287,217
359,022
4,672,087

GP
TP
ARE
D
DVN
IVN
DFR
TR
IFR
GI
f
CF
CCF

2,356,648
447,763
117,832
1,791,053
537,316
500,829
1,253,737
87,762
1,165,975
572,012
45.99%
2,338,224
7,011,784

2,983,211
566,810
149,161
2,267,241
680,172
643,685
1,587,068
111,095
1,475,974
714,392
51.52%
2,814,412
9,826,196

3,627,617
689,247
181,381
2,756,989
827,097
790,610
1,929,892
135,092
1,794,800
860,827
66.82%
3,304,160
13,130,35
6

3,841,998
729,980
192,100
2,919,919
875,976
839,489
2,043,943
143,076
1,900,867
909,543
67.92%
3,467,090
16,597,44
7

4,067,099
772,749
203,355
3,090,995
927,299
890,812
2,163,697
151,459
2,012,238
960,695
68.98%
3,638,167
20,235,61
3

4,303,455
817,656
215,173
3,270,626
981,188
944,701
2,289,438
160,261
2,129,178
1,014,404
70.00%
3,817,797
24,053,41
1

-89-

Table A4.4 Estimated Income Statement (continue ...)

Year 10

Year 11

Year 12

Year 13

Year 14

R1
R2
R

7,539,455
1,884,864
9,424,319

7,916,428
1,979,107
9,895,535

8,312,249
2,078,062
10,390,312

8,727,862
2,181,965
10,909,827

9,164,255
2,291,064
11,455,319

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

1,130,918
1,130,918
97,680
9,768
376,973
5,400
235,608
94,243
188,486
188,486
188,486

1,187,464
1,187,464
107,448
10,745
395,821
5,400
247,388
98,955
197,911
197,911
197,911

1,246,837
1,246,837
107,448
10,745
415,612
5,400
259,758
103,903
207,806
207,806
207,806

1,309,179
1,309,179
107,448
10,745
436,393
5,400
272,746
109,098
218,197
218,197
218,197

1,374,638
1,374,638
107,448
10,745
458,213
5,400
286,383
114,553
229,106
229,106
229,106

547,171
301,578
376,973
4,872,690

547,171
316,657
395,821
5,094,068

547,171
332,490
415,612
5,315,233

547,171
349,114
436,393
5,547,457

547,171
366,570
458,213
5,791,292

GP
TP
ARE
D
DVN
IVN
DFR
TR
IFR
GI
f
CF
CCF

4,551,629
864,810
227,581
3,459,238
1,037,771
1,001,284
2,421,467
169,503
2,251,964
1,070,799
70.99%
4,006,409
28,059,820

4,801,467
912,279
240,073
3,649,115
1,094,734
1,058,247
2,554,380
178,807
2,375,574
1,127,572
71.63%
4,196,286
32,256,106

5,075,078
964,265
253,754
3,857,059
1,157,118
1,120,631
2,699,942
188,996
2,510,946
1,189,748
72.57%
4,404,231
36,660,337

5,362,370
1,018,850
268,119
4,075,401
1,222,620
1,186,133
2,852,781
199,695
2,653,086
1,255,032
73.46%
4,622,573
41,282,910

5,664,027
1,076,165
283,201
4,304,660
1,291,398
1,254,911
3,013,262
210,928
2,802,334
1,323,580
74.33%
4,851,832
46,134,742

-90-

Table A4.4 Estimated Income Statement (continue ...)

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

R1

9,622,468

R2
R

2,405,617
12,028,08
4

10,103,59
1
2,525,898
12,629,48
9

10,608,77
0
2,652,193
13,260,96
3

11,139,20
9
2,784,802
13,924,01
1

11,696,16
9
2,924,042
14,620,21
2

12,280,97
8
3,070,244
15,351,22
2

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

1,443,370
1,443,370
107,448
10,745
481,123
5,400
300,702
120,281
240,562
240,562
240,562

1,515,539
1,515,539
118,193
11,819
505,180
5,400
315,737
126,295
252,590
252,590
252,590

1,591,316
1,591,316
118,193
11,819
530,439
5,400
331,524
132,610
265,219
265,219
265,219

1,670,881
1,670,881
118,193
11,819
556,960
5,400
348,100
139,240
278,480
278,480
278,480

1,754,425
1,754,425
118,193
11,819
584,808
5,400
365,505
146,202
292,404
292,404
292,404

1,842,147
1,842,147
118,193
11,819
614,049
5,400
383,781
153,512
307,024
307,024
307,024

547,171
384,899
481,123
6,047,318

547,171
404,144
505,180
6,327,965

547,171
424,351
530,439
6,610,234

547,171
445,568
556,960
6,906,617

547,171
467,847
584,808
7,217,818

547,171
491,239
614,049
7,544,580

GP
TP
ARE
D
DVN
IVN
DFR
TR
IFR
GI
f
CF
CCF

5,980,767
1,136,346
299,038
4,545,383
1,363,615
1,327,128
3,181,768
222,724
2,959,044
1,395,556
75.16%
5,092,554
51,227,29
6

6,301,524
1,197,290
315,076
4,789,158
1,436,747
1,400,260
3,352,411
234,669
3,117,742
1,468,445
75.68%
5,336,329
56,563,62
5

6,650,729
1,263,639
332,536
5,054,554
1,516,366
1,479,879
3,538,188
247,673
3,290,515
1,547,799
76.47%
5,601,726
62,165,35
1

7,017,395
1,333,305
350,870
5,333,220
1,599,966
1,563,479
3,733,254
261,328
3,471,926
1,631,120
77.22%
5,880,391
68,045,74
2

7,402,394
1,406,455
370,120
5,625,819
1,687,746
1,651,259
3,938,073
275,665
3,662,408
1,718,607
77.94%
6,172,991
74,218,73
3

7,806,643
1,483,262
390,332
5,933,048
1,779,914
1,743,427
4,153,134
290,719
3,862,414
1,810,468
78.64%
6,480,220
80,698,95
2

-91-

Table A4.4 Estimated Income Statement (continue ...)

Year 21

Year 22

Year 23

Year 24

Year 25

R1
R2
R

12,895,027
3,223,757
16,118,784

13,539,778
3,384,945
16,924,723

14,216,767
3,554,192
17,770,959

14,927,605
3,731,901
18,659,507

15,673,986
3,918,496
19,592,482

E1
E2
E3
E4
E5
E6
E7
E8
E9
E10
E11
E12
E13
E14
E15
E

1,934,254
1,934,254
129,530
12,953
644,751
5,400
402,970
161,188
322,376
322,376
322,376

2,030,967
2,030,967
129,530
12,953
676,989
5,400
423,118
169,247
338,494
338,494
338,494

2,132,515
2,132,515
129,530
12,953
710,838
5,400
444,274
177,710
355,419
355,419
355,419

2,239,141
2,239,141
129,530
12,953
746,380
5,400
466,488
186,595
373,190
373,190
373,190

2,351,098
2,351,098
129,530
12,953
783,699
5,400
489,812
195,925
391,850
391,850
391,850

174,142
515,801
644,751
7,527,120

174,142
541,591
676,989
7,887,375

174,142
568,671
710,838
8,265,643

174,142
597,104
746,380
8,662,824

174,142
626,959
783,699
9,079,864

GP
TP
ARE
D
DVN
IVN
DFR
TR
IFR
GI
f
CF
CCF

8,591,663
1,632,416
429,583
6,529,664
1,958,899
1,922,412
4,570,765
319,954
4,250,811
1,988,857
86.75%
6,703,806
87,402,758

9,037,347
1,717,096
451,867
6,868,384
2,060,515
2,024,028
4,807,869
336,551
4,471,318
2,090,134
87.08%
7,042,526
94,445,283

9,505,316
1,806,010
475,266
7,224,040
2,167,212
2,130,725
5,056,828
353,978
4,702,850
2,196,475
87.40%
7,398,182
101,843,465

9,996,683
1,899,370
499,834
7,597,479
2,279,244
2,242,757
5,318,235
372,276
4,945,959
2,308,133
87.70%
7,771,621
109,615,086

10,512,618
1,997,397
525,631
7,989,590
2,396,877
2,360,390
5,592,713
391,490
5,201,223
2,425,374
87.99%
8,163,732
117,778,817

-92-

Table A5.1 Master budget for Thuy Tien Development Project

Iterms Description
1. PRE-CONSTRUCTION
- Architect & Construction design
- Interior design
- Construction permit & relevant fees
- Preparation & Groundbreaking ceremony
- Land clearing and compensation
Subtotal

Cost
(VND)

Cost
(US$)

10,000,000
2,000,000
7,000,000
2,000,000
30,000,000
51,000,000

909.09
181.82
636.36
181.82
2,727.27
4,636.36

2. CONSTRUCTION
- Preparation, foundation work
- Main construction work
- Water and power supply system
- Construction completion
- Preparation for finishing
Subtotal

100,000,000
400,000,000
55,000,000
6,000,000
2,500,000
563,500,000

9,090.91
36,363.64
5,000.00
545.45
227.27
51,227.27

3. MECHANICAL AND ELECTRICAL WORKS

- Single splite air conditioning unit
- Telephones
- Exhaust fans
- Lighting
- Pumpset
Subtotal

130,000,000
32,000,000
15,000,000
3,000,000
1,100,000
181,100,000

11,818.18
2,909.09
1,363.64
272.73
100.00
16,463.64

35,000,000
4,500,000
1,500,000
4,000,000
45,000,000

3,181.82
409.09
136.36
363.64
4,090.91

840,600,000

76,418.18

4. OTHERS
- Interest peyment
- Water and power supply contract
- Washing, cleaning, decorating, painting
- Inauguration ceremony
Subtotal
TOTAL

-93-

Table A5.2 Expenses for Thuy Tien Project

Iterms Description
1. PRE-CONSTRUCTION
- Architect & Construction design
- Interior design
- Construction permit & relevant fees
- Preparation & Groundbreaking ceremony
- Land clearing and compensation
Subtotal

Cost
(VND)

Cost
(US$)

10,100,000
2,000,000
7,700,000
2,200,000
30,000,000
52,000,000

918.18
181.82
700.00
200.00
2,727.27
4,727.27

2. CONSTRUCTION
- Preparation, foundation work
- Main construction work
- Water and power supply system
- Construction completion
- Preparation for finishing
Subtotal

99,000,000
396,000,000
56,400,000
6,600,000
2,200,000
560,200,000

9,000.00
36,000.00
5,127.27
600.00
200.00
50,927.27

3. MECHANICAL AND ELECTRICAL WORKS

- Single splite air conditioning unit
- Telephones
- Exhaust fans
- Lighting
- Pumpset
Subtotal

132,000,000
32,000,000
15,400,000
3,300,000
1,100,000
183,800,000

12,000.00
2,909.09
1,400.00
300.00
100.00
16,709.09

32,675,000
4,500,000
1,800,000
4,200,000
10,825,000
54,000,000

2,970.45
409.09
163.64
381.82
984.09
4,909.09

850,000,000

77,272.73

4. OTHERS
- Interest payment
- Water and power supply contract
- Washing, cleaning, decorating, painting
- Inauguration ceremony
-Missileneous
Subtotal
TOTAL

-94-

Table A5.3 Projected Income Statement (Thuy Tien Project)

Year 1

Year 2

Year 3

Year 4

Year 5

4,000.00
5.00%
1.00

4,200.00
5.00%
1.12

4,410.00
5.00%
1.25

4,630.50
5.00%
1.40

4,862.03
5.00%
1.57

48,000.0
0

50,400.0
0

52,920.0
0

55,566.0 58,344.30
0

14,880.0
0

15,624.0
0

16,405.2
0

17,225.4 18,086.73
6

3,600.00
648.00
4,957.09
1,527.27
960.00
11,692.3
6

3,600.00
648.00
4,957.09
1,710.55
1,008.00
11,923.6
4

3,600.00
648.00
4,957.09
1,915.81
1,058.40
12,179.3
0

3,600.00 3,600.00
648.00
648.00
4,957.09 4,957.09
2,145.71 2,403.19
1,111.32 1,166.89
12,462.1 12,775.17
2

DEPRECIATION

6,979.09

6,979.09

6,979.09

6,979.09

6,979.09

INTEREST

5,954.55

2,759.09

545.45

0.00

0.00

NI

8,494.00

13,114.1
8

16,810.9
5

Monthly rental
Rental increase
Salary rate
REVENUE
Rental Revenue
TAX
Rental Tax (31%)
EXPENSES
Electricity
Water
Telephone
Salary
Maintenance
Total expenses

18,899.3 20,503.31
3

-95-

APPENDIX B

Figure B1 - Investment by sector (January 1994 to December 1, 1994)

Telecom & Post
3%
Culture, Health & Education
Construction
1%
12%
Agro-products
2%
Banking & Finance
less than 1%

Service
21%

Heavy Industry
12%
Oil & Gas
2%

EPZ
1%

Hotels & Tourism

20%
Light Industry
19%

Agro-Forestry
7%

Source: SCCI, 1994

Table B2 - Foreign bank branches in Vietnam (by Jan 1995)

Bank branches
1 Indosuez
2 Banque Nationale du Paris
3 Banque Francaise du Commerce Exterieur
4 Credit Lyonnairs
5 Bangkok Bank
6 Thai Military Bank
7 ANZ Bank
8 Cathay Investment & Trust Corp. of Taiwan
9 Standard Chatered Bank
Source: Vietnam Investment Review, 1995

Country
France
France
France
France
Thailand
Thailand
Australia-New Zeland
Taiwan
Britain

-96-

Figure B3 - The leaders (investment by country, 1/1/1988-1/12/1994), in miilion

US$
Source: SCCI, 1994

-97-

QUESTIONNAIRE: B4
1. Who are your major customers (Please, rank)?

Foreign investors operating in Vietnam

Local investors
2. What types of business obtain loan from your Bank most (Please, rank)?

Heavy industry
Light industry
Tourist industry (Hotels, restaurants, tourist zones, etc.)
Commerce and Trade
Agriculture, Forest and Fishery
Other _________________________________________
3. What types of loans are offered by your Bank?

Simple interest loan (SL)

Discount interest loan (DL)
Installment loan with add-on interest (IL)
Simple interest loan with compensating balance (SLC)
Discount interest loan with compensating balance (DLC)
Other (O) ___________________________________________
4. What are interest rates for each kind of loan but different maturities (M)?
Type of
loan
1
month

Nominal interest rate for different maturities

(% annual)
3
6
1 year
3 years 5 years
months months

>5
years

SL
DL
IL
SLC
DLC
O
5. What are conditions for obtaining interest rate priority and favorable repayment
terms?

Reputation of the customer

Reliability of the customer
Size of the investment

Close relationship with your bank

Duration of maturities
Other _______________________

-98-

6. Who usually obtain loans from your bank with favorable terms?

Government organizations
Public companies
Only foreign investors

Non-government organizations
Private companies
Other _______________________

7. Has your bank ever granted loans for Hotel projects located in Hanoi? If yes,
which?

8. Has your bank ever participated financing of hotel projects in Hanoi area? If yes,
which?
1
9. Is risk and return analysis considered in your banking activities?

Yes

Sometime

No

10. What kinds of risk are taken in your consideration most during financing of
projects ( If any, please, rank)?
Development phase
Bid risk
Credit risk
Technological risk
Market risk

Construction phase
Political risk
Exchange risk
Performance risk
Cost over-run risk
Completion risk

Other risks

Other risks

Operating phase
Political risk
Exchange risk
Performance risk
Cost over-run risk
Off-take risk
Liability risk
Other risks

11. What techniques dealing with risk are applied in your analysises most (Please,
rank)?

Sensitivity analysis
Utility theory
Game theory
GENERAL INFORMATION
1.
2.
3.
4.

Name of your bank:

Type of ownership:
Starting date of operation in Hanoi:
Total assets:

Probability analysis
Decision trees
Other______________

-99-

QUESTIONNAIRE: B5
The "West Lake Development Co. Ltd." is in fact a Service Apartments
Project financed mainly by foreign investor - PRIMAWELL INVESTMENTS
PTE. LTD. (Singapore). We are interested in your considerations regarding
the financing of this project.
1. How much time have you spent for the survey on the demand and supply of hotel
services in Hanoi before you decided to finance this project?

Less than 3 months

6 - 12 months

3 - 6 months
More than 12 months

2. Have you selected your partner through:

State Committee for Cooperation and Investment (SCCI)

Public Consultant Agency
Private Consultant Agency
Your own relationship
Other ___________________________________________
3. Who are major shareholders in your side?
Shareholders
A
B
C
D
...
Total

Shares
subscribed

Amount paid
up
USD

Percentage
holding
%

-100-

4. Which banks have granted loans for financing of this project?

Lenders

Type of
loan

Amount
lended
USD

Nominal
interest rate
(%, annual)

A
B
C
D
...
Total

Simple interest loan (SL)

Discount interest loan (DL)
Installment loan with add-on interest (IL)
Simple interest loan with compensating balance (SLC)
Discount interest loan with compensating balance (DLC)
Other (O) ___________________________________________
5. Other partners involved in this project financing?
Suppliers:
Contractors:
Customers:
Other:
6. How much was the cost estimation before the construction of the project?
.....................................................................................USD
7. Would you please, provide your financing plan?
Before starting foundation work: ........................................................USD
For the first 2 months of construction: ................................................USD
For the next 2 months of construction: ................................................USD
etc.

Maturity
Years

-101-

8. How much is total real investment (regardless right of land use)?

.....................................................................................USD
9. What is the average rate of return do you expect from investment on this project?
10. What kinds of risk are taken in your consideration most during financing of
projects ( If any, please, rank 1,2, ... 7)?
Development phase
Bid risk
Credit risk
Technological risk
Market risk

Construction phase
Political risk
Exchange risk
Performance risk
Cost over-run risk
Completion risk

Other risks

Other risks

Operating phase
Political risk
Exchange risk
Performance risk
Cost over-run risk
Off-take risk
Liability risk
Other risks

11. What techniques dealing with risk are applied in your analysis?

Sensitivity analysis
Utility theory
Game theory

Probability analysis
Decision trees
Other______________

12. What is expected return in relation to risk?

First year of operation:
Year 10:
Year 20:

%
%
%

Year 5:
Year 15:
Year 25:

%
%
%

13. Would you please provide some documents related to Project evaluation
Hotel service analysis
Fees and Revenues
Financial Analysis
Sensitivity Analysis
Economic Analysis
Project risks and expected returns (in relation to risk)

-102-

REFERENCES
1. Adhikary, U.; Bhosle, Meenal, "Risk-return Analysis of Mutual Fund Growth
Schemes.", Indian Management, Vol. 33 No. 8, August 1994, p48-58.
2. Ba, Han, "Joint Venture Banks",
1994/January 1995, p14-15.

Vietnam Economic Time, December

3. Bao, Anyou; Morgan A.; Florence C.; Deborah D., "Is Vietnam Really Ready for
Business", Asia INC., March 1993, p54-60.
4. Bennett, R., "Morton's folly" (Eurotunnel's financing record), Euromoney, June
1993, p59-63.
5. Bergsman, Steven, "Economy Hotels: Building continues", Barron's vol. 71,
September 16, 1991, p69.
6. Bladen, M., "Project Finance: make them pay", The Banker vol. 144, January
1994, p 66-68.
7. Bowers, John A., "Data for project risk analysises", International Journal of
Project Management, 12 (1), 1994, p9-16.
8. Brigham, Eugenne F., "Risk analysis and the optimal capital budget",
Fundamentals of Financial Management, sixth edition, the Dryden Press, 1992,
p405-430.
9. Chew, William H., "Infrastructure finance hinges on credit quality and strength.",
ENR vol. 230, March 1993, p 26.
10. Edwards, B., "How to finance projects in risky countries", Euromoney, January
1994, p 86-89.
11. Hill, James W., "Project financing: avoiding six weaknesses.", The Journal of
Commercial Bank Lending vol. 72, October 1989, p17-22.
12. Jubelt, A.; Murphy, M., "Reeling in real estate risk", Bankers Monthly vol. 109,
June 1992, p30-31.
13. Khang, Luu, "Accounting in Vietnam", Vietnam TODAY, Vol. 3, Issue 3, 1994,
p47-48.
14. Lim, Bee lian, "Vietnam's Financial system - Changes and Development",
Vietnam TODAY, Vol. 3, Issue 3, 1994, p49-51.
15. Locke, Stuart M., "Property investment analysis using adjusted present values",
The Appraisal Journal vol. 58, July 1990, p 373-8 tabs.
16. Mattoo, P. K., Project Appraisal, First edition, Lancer International, 1986
17. Merrett, A. J., The finance and analysis of capital projects, 1976.
18. Michael, Collins, "Vietnam plays: opportunity or gimmick?", Asianmoney, April
1994, p50-51.

-103-

19. Murray, Hiebert; Susumu A., "The Next Great Leap", Far Eastern Economic
Review, 22 April 1993, p68-70.
20. Nevitt, Peter K., "Project Financing", Euromoney Publications, 1983.
21. Reinbach, A., "Financing a project through the capital markets.", Barron's vol.
66, February 24, 1986, p 64-65.
22. Rwelamila, P. D., Savile, P. W., "Hybrid value engineering: the challenge of
construction project management in the 1990s.", International Journal of Project
Management, 12 (3), 1994, p157-164.
23. Simister, Steve J., "Usage and benefits of project risk analysis and
management", International Journal of Project Management, 12 (1), 1994, p5-8.
24. Thomadakis, S.; Usmen, N., "Foreign project financing in segmented capital
markets: equity versus debt.", Financial Management vol. 20, Winter 1991, p4253.
25. Trung, Ha, "Six monthly Report on Activities of Credit Institutions", Vietnam
Economic News, No. 33, August 17-23, 1994, p27.
26. UNDP, Vietnam - Transition to the market, Hanoi, 1993.
27. UNDP-WB, VIETNAM - Policies for Transition to an Open Economy, Hanoi,
December 1993.
28. Vietnam Investment Review, Hanoi, August - December 1994 and January 1995
29. Vietnam News - Sunday, Hanoi, August - December 1994.
30. Vu, Duc Huynh, "Some pictures of Bank System of Vietnam", Bridge for
Business, Hochiminh city, 1994.
31. Willams, Terry M., "Using a risk register to integrate risk management in project
definition.", International Journal of Project Management, 12 (1), 1994. p17-22.