I.

Introduce:

I’m working as a business analyst at Masan Consumer, a Vietnamese company. My direct

supervisor asks me to deep research the companies carrying out business in Vietnam, with
respect to types, sizes and scope, functions ad organizational structures for the investment plan
of the company.

My task is to make a report of what I have conducted for the research as in the following
themes.

II. The main characteristics of the types, and the purposes of various sector of business
organizations with different legal structure.
2.1. Private sector[1]
• Define: The area of the economy where businesses looking to make a profit is known as
the private sector. The state regulates businesses in the private sector relatively little,
and they compete for customer dollars. The fair market conditions brought about by
competition stabilize prices. A public institution may be privatized or a new corporation
may be founded by private persons to form the basis of the private sector. At the option
of the stakeholders, shares of these firms may be traded on either the private or public
stock exchanges.
• Key features of the private sector
- Profit motive: Making a profit is what private sector businesses are primarily concerned
with. Of course, they establish additional objectives like manufacturing top-notch
products and offering top-notch customer service to remain competitive. Independent
enterprises' primary goal is to provide favorable financial returns, while they may also
advocate for other causes like offering green products to consumers.
- Private ownership and control: The private sector is owned, controlled, and managed by
private businesspeople. A group of persons or a single person may be in charge of
management. When only one individual owns the business, it is referred to as a sole
proprietorship. A group of people may also own a business together as a cooperative
society, partnership, or joint-stock corporation.

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 - Limited state regulation: The freedom to establish their pricing and produce goods in
accordance with their standards is afforded by the limited vulnerability of private sector
organizations to government meddling. However, some laws that are important in
sectors like food, medicine, and finance apply to these businesses in the interest of
customer safety.
- Independent management: The private sector's owners are wholly responsible for its
administration. In a sole proprietorship, the manager decides everything and represents
the business in court. Management of a joint stock corporation is reliant on a board of
directors chosen to represent shareholders.
- Private finance: Owners or shareholders provide capital to the private sector. Different
private sector businesses use different methods to raise finance. For a single
proprietorship, the money is contributed by the lone trader, and for a partnership, the
money is invested by the partners. As an alternative, a joint stock firm can raise money
by issuing bonds and shares (a type of long-term debt).

Another method the private sector gets money is through applying for loans to cover
both long- and short-term demands or cash. Unless they are big and important for a nation,
private sector enterprises receive very little financial help from the government. Companies
with stronger financial positions have better abilities to raise more money from the market,
depending on the financial health of the private sector.

Work culture of employees: The competitive workplace culture in the private sector is defined
by improved pay and job advancement depending on performance. To preserve a competitive
advantage over other private sector organizations, businesses try to provide the finest working
environment for their staff. Additionally, companies provide benefits like paid time off and
health care to attract and keep outstanding employees

- Sole proprietorships:a business owned by one self-employed individual who may, in

some cases, employ other people on either a full-time or a part-time basis.[2]
- Partnerships: often operate in partnerships Partnerships can have a minimum of 2 and
a maximum of 20 partners. Lawyers, estate agents, doctor and dental practises often

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 operate as partnerships. A partnership is a business set up by the deed of partnership
document. [2]
- Privately owned corporations: a company that is not publicly traded. This means that
the company either does not have a share structure through which it raises capital or
that shares of the company are being held and traded without using an exchange.[2]
• Purpose of the private sector: The private sector includes all enterprises operating
for profit and is not owned or operated by the government.[3]
• Example: - Truong Hai Auto Corporation lost its top spot among largest business
private companies in Vietnam.
2.2. Public sector[4]
• Define a part of the economy that comprises all organizations that are owned and
operated by the government. This includes everything from schools and hospitals to
roads and bridges. The main purpose of the public sector is to provide services that are
considered essential for the well-being of society. These services are typically provided
free of charge or at a subsidized rate.
• Features of Public Sector Enterprises
- Finance by Government: The public authority provides funding for public projects. They
either belong to the public authority, which has claimed them, or the public authority
owns a bigger portion of them. In certain attempts, private initiatives are also
authorized, but the public authority, in a sense, performs the dominant role.
- Government management: Public ventures are overseen by the public authority. Now
and again the government has begun ventures under its own specializations. In different
cases, the government chooses people to deal with the endeavors. Indeed, even
independent bodies are straightforwardly and by implication constrained by the public
authority divisions.
- Finance independence: Regardless of how interests in government projects are
completed by the public authority, they gain financial freedom. For their daily needs,
they are not dependent on the government. These initiatives manage and handle their
own financial resources. The productivity of their things is also taken into account while

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 estimating them. It has helped the initiatives by enabling them to fund their own
growth.
- Public services: The primary goal of all government initiatives is to assist the general
populace. These endeavors are launched after careful consideration. If there are
opportunities to get benefits, a private businessperson will start to worry, but this is not
the case with public endeavors.
- Useful for various sectors: State-run businesses benefit everyone, even if they don't
cater to any particular group of the general public. They provide services throughout the
board.
- Direct channels for using foreign money: The great bulk of the people's access to
government assistance is obtained through transparent endeavors. Projects openly
make use of the financial and professional assistance received from economically
developed nations.
- Helpful in implementing government plans: The public authority's financial policies and
plans are carried out through open undertakings.
- Autonomous or semi-independent bodies: These businesses are autonomous or largely
autonomous entities. They occasionally operate under the heavy influence of
government agencies, and in some circumstances, they are governed by laws including
the Companies Act.
• Purpose of public sector:
- The provision of services deemed necessary for society's welfare is the primary goal of
the public sector. Usually, these services are offered for free or at a reduced cost.
Organizations in the public sector, like the nonprofit sector, do not aim to turn a
profit.[5]
• Example: Based on their ownership structure, banks in our nation are a part of both the
private and public sectors. Public sector banks include institutions like State Bank of
India, Bank of India, Bank of Baroda, and Indian Bank. On the other side, private sector
banks include institutions like ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank,
and Yes Bank.[6]

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2.3. Voluntary sector
• Define: The voluntary sector, often referred to as the nonprofit sector, the community
sector, or the third sector, is typically made up of groups whose goal is to develop and
serve society, frequently without the consideration of profit and with little to no
government intrusion[7]

Voluntary sector including 2 fields:

- A non-governmental organization (NGO) a group that operates without the

involvement of any government. Most often, it is nonprofit. NGOs, also known as civil
society groups, are formed at the local, state, and federal levels as well as
internationally to advance a social or political objective, such as the defense of the
environment or a humanitarian cause. [8]
- Social enterprise: a company that has definite social goals that further its main mission.
The revenues from social companies are mostly used to finance charitable initiatives.
Social enterprises aim to maximize profits while maximizing benefits to society and the
environment.[8]

• Characteristics of voluntary sector [9]

- Liability: Unincorporated organizations' members may be held personally liable for
debts and legal proceedings brought against them, which might be a serious issue if you
want to acquire real estate, erect structures, or engage in business. Similarly, trustees
might be held personally liable if something goes wrong.
- Demoracy: Even though unincorporated groups typically operate democratically, this
will rely on the guidelines outlined in their constitution. Unless trustees decide to hold
themselves accountable to a larger number of people, trusts may be far less democratic.
In general, corporations are democratic organizations where members provide a
guarantee or shareholders have the authority to elect and dismiss officials and/or
committee members.
- Ownership of land and property: However, because a business has a distinct legal
personality, owning and transferring property is very straightforward. Unincorporated

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 organizations will find it difficult to hold land and property without some personal risk
resting on people, as will be the case with trusts. The ownership of the property stays in
the name of the firm even if your committee or membership changes.
- Raising and borrowing money: Depending on their nonprofit status, unincorporated
organizations will often be limited to collecting money through events, membership
fees, grants, and low-risk trading. A firm will often find it simpler to borrow money since
the lender understands that the organization, rather than a shifting collection of
individuals, is accountable for the repayment. However, corporations will find it easier
to obtain substantial grant financing and trade subject to charity status.
- Accountability: Due to the Companies Acts' regulation of their operations, companies
are subject to additional regulations and bureaucracy than other types of legal
formations. The registrar of corporations must receive annual reports and accounts.
Registers of members, directors, and committee members must be preserved and made
available for public review. Companies that are limited by guarantee are required to
inform the registrar of companies whenever a director resigns or is replaced. When a
corporation enters into a legal charge (such as borrowing money from a bank that
simultaneously has a mortgage over the firm's assets), it must also inform the registrar
of companies. Organizations that have registered as charities are likewise subject to
Charity Commission oversight.
- Example: For example, NGOs may concentrate their efforts, for instance, on projects
related to health or medical crises, education, infrastructure, the defense of minority
rights, assistance to the underprivileged, and the lowering of crime. : Many social
enterprises successfully maximize improvements in social well-being. For example,
Koto is a not-for-profit social enterprise that empowers at-risk and disadvantaged youth
in Vietnam through its holistic hospitality training program.

III. The size and scope of a range of different types of organisations in Vietnam with
specific example.

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Based on Article 5 decree 80/2021nd-cp, which stipulates the criteria for micro-emterprises,
small enterprise, and medium enterprises in the field of e-commerce, it is determined as
follows:

3.1. Micro-enterprise[10]

- Any micro-enterprise in the field of agriculture, forestry, aquaculture; industry and

construction that has an average annual number of employees who participate in social
insurance not exceeding 10 people, total revenue in the year not exceeding 3 billion
VND or total capital of the year not exceeding 3 billion VND.

- Any micro-enterprise in the field of commerce and services that that has an average
annual number of employees who participate in social insurance not exceeding 10
people, total revenue in the year not exceeding 10 billion VND or total capital of the
year not exceeding 3 billion VND.

- Example: grocery, bakery

3.2. Small enterprise[10]

- Small enterprises in the fields of agriculture, forestry and fishery; the industry and
construction sector employs an average of not more than 100 employees annually
participating in social insurance and has a total annual revenue of not more than VND
50 billion or a year's total capital of not more than VND 20 billion, but not more than
VND 20 billion. must be a micro-enterprise as prescribed in Clause 1 of this Article..
- Small enterprises in the field of commerce and services employing employees with an
average annual social insurance participation of no more than 50 people and a total
annual turnover of not more than VND 100 billion or a year's total capital not exceeding
VND 50 billion. dong, but not a micro-enterprise as prescribed in Clause 1 of this Article.
- Example: showroom, hairsalon
3.3. Medium enterprise[10]

- Any medium enterprise in the field of agriculture, forestry, aquaculture; industry and
construction that has an average annual number of employees who participate in social

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 insurance not exceeding 200 people, total revenue in the year not exceeding 200 billion
VND or total capital of the year not exceeding 100 billion VND, except micro-enterprises
and small enterprises mentioned in Clause 1 and Clause 2 of this Article.

- Any medium enterprises in the field of commerce and service that has an average
annual number of employees who participate in social insurance not exceeding 100
people, total revenue in the year not exceeding 300 billion VND or total capital of the
year not exceeding 100 billion VND, except micro-enterprises and small enterprises
mentioned in Clause 1 and Clause 2 of this Article.
- Example:
3.4. Large enterprise
- large enterprise in filed of agriculture, forestry and fishery, industry and construction
that has an average annual number of employees who participate in social insurance
more than 200 persons, total revenue in the year more than 200 billion VND or total
capital in the year more than 100 billion VND
- Large enterprise in the field of trades and services that has an average annual number
of employees who participate in social insurance more than 100 persons, total revenue
in the year more than 300 billion VND or total capital in the year more than 100 billion
VND

Table 1: Criteria of size enterprise according to decree 80/2021 ND/CP

Criteria of Size Agriculture, Forestry and Fishery, Trades and Services

Industry and Construction
Micro Small Medium Large Micro Smail Medium Large
Total employees <= 10 <= 100 <= 200 >200 <= 10 <= 50 <=100 >100
(social insurance Persons Persons Persons Persons Persons persons persons persons
payment )
Total Revenue <=3 <= 50 <=200 >200 <= 10 <= 100 <=300 >300
Billion Billion Billion Billion Billion Billion Billion Billions
VND VND VND VND VND VND VND VND

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 Total Capital <=3 <= 20 <= 100 >100 <=3 <= 50 <= 100 >100
Billion Billion Billion Billion Billion Billion Billion Billion
VND VND VND VND VND VND VND VND
Source: Author

IV. The size and scope of Vietnam dairy product joint stock company and CNG
Vietnam joint stock company.
For the companies in Vietnam, I chose Masan Consumer because it is one of the large
companies in the private sector in Vietnam according to decree 80/2021 ND/CP. To prove
Masan Consumer is the large enterprise, I have finger out the criteria below.

4.1. Overview Masan Consumer

Name: MASAN CONSUMER CORPORATION

Registered name: CÔNG TY CỔ PHẦN HÀNG TIÊU DÙNG MASAN

Abbreviation name: MASAN CONSUMER CORP

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Tax code: 030207440

Phone/Fax: (84-28) 6255 5660 / (84-28) 38109463

Stock code: MCH

Head office: 12th floor, MPlaza Saigon Building, No.39, Le Duan Street, Ben Nghe Ward, 1
District, Ho Chi Minh City, Vietnam

Founded year: 04/01/1996

Website: http://www.masanconsumer.com

4.2. Shareholder structure of Masan Consumer

- Foreign shareholder ownership: 1.81% There are no major foreign shareholders ( annual
report of Masan consumer, 2021)
- Domestic shareholder ownership: 98.19% ( annual report of Masan consumer, 2021)

Table 2 SHAREHOLDER INFORMATION

Source: annual report of Masan consumer 2021

4.3. Size of Masan consumer

• Total capital of Masan consumer in 2021 is based on total liabilities and total owner
equity. In there, total liabilities is 13,198,456 million VND ( thirteen million one hundred
and ninety-eight thousand four hundred fifty-six million VND), and total owner equity is
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 17,005,693 million VND ( seventeen million five thousand six hundred and ninety three).
Total capital of Masan consumer is 30,204,149 million VND ( thirty million two hundred-
four and one hundred fourty nine VND)

Table 3 AUDITED FINANCIAL RESULTS

Source: annual report of masan consumer

• Total revenue of Masan consumer in 2021 is 28,098.885 miilion VND ( twenty eight
million ninty eight thousand eight hundred eighty five )

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 Table 4 Total revenue

Source: annual report of Masan consumer

• Total employees: As of December 31, 2021, Masan Consumer has 6,049 employees,
including 3,866 men (64%) and 2,183 women (36%) and this team is well-trained and
highly qualified ( Masan news, 2021)

Based on Article 5 of decree 80/2021 nd-cp, Masan consumer is one of the large enterprise in
Vietnam.

4.4. Scope of Masan consumer

4.4.1. Vision of Masan consumer: To be a leading consumer player in Vietnam in terms of
sales, profits and brand recognition; To address daily needs of 100 million Vietnamese
consumers; To attract top talents and to be recognized as one of Vietnam’s best
workplaces and become a representation of quality and pride of Vietnamese (annual
report of Masan consumer, 2021)

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4.4.2. Mission: Masan believes in the philosophy of “doing well by doing good”. The
Company's mission is to provide superior products and services to the 90 million people
of Vietnam.
4.4.3. Stakeholder of Masan consumer

Table 5: Stakerholder's mapping

Source: author

a. Board of manager

The development of Masan consumer depents on ability to stay active or keep qualified
employees in key positions. There for, Masan always focuses on attracting talent. The business
has recruited many senior leaders with many male experience

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V. Refrence

[1] : Florestano, P. S. and Gordon, S. B. (1980) Public vs. Private: Small Government Contracting
with the Private Sector, Public Administration Review, JSTOR, 40(1), p. 29, [online] Available at:
http://dx.doi.org/10.2307/976105.In-Text Citation: (Florestano and Gordon, 1980)

[2] Locke, S. and Duppati, G. (2014) Agency costs and corporate governance mechanisms in
Indian state-owned companies and privately owned companies - A panel data
analysis, Corporate Ownership and Control, Virtus Interpress, 11(4), pp. 8–17, [online] Available
at: http://dx.doi.org/10.22495/cocv11i4p1.

In-Text Citation: (Locke and Duppati, 2014)

[3] VietnamBiz (2019) Khu vực tư nhân (Private Sector) là gì?, vietnambiz, [online] Available at:
https://vietnambiz.vn/khu-vuc-tu-nhan-private-sector-la-gi-20191231111022865.htm.

In-Text Citation: (2019)

[4] Anon (2022) What are the features of public sector enterprises? -
GeeksforGeeks, GeeksforGeeks, [online] Available at: https://www.geeksforgeeks.org/what-
are-the-features-of-public-sector-enterprises/.

In-Text Citation: (Anon, 2022)

[5] Anon (2023) What is the Public Sector? Definition & Examples, PrivacySense.net, [online]
Available at: https://www.privacysense.net/terms/public-sector/.

In-Text Citation: (Anon, 2023)

[6] Anon (n.d.) Difference between Public and Private Sector, BYJUS, [online] Available at:
https://byjus.com/commerce/difference-between-public-and-private-sector/.

In-Text Citation: (Anon, n.d.)

[7] Handy, F. and Srinivasan, N. (2004) Valuing Volunteers: An Economic Evaluation of the
Net Benefits of Hospital Volunteers, Nonprofit and Voluntary Sector Quarterly, SAGE
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Publications, 33(1), pp. 28–54, [online] Available at:
http://dx.doi.org/10.1177/0899764003260961.

In-Text Citation: (Handy and Srinivasan, 2004)

[8] Anon (2016) LAS VEGAS SANDS CORP., a Nevada corporation, Plaintiff, v. UKNOWN
REGISTRANTS OF www.wn0000.com, www.wn1111.com, www.wn2222.com,
www.wn3333.com, www.wn4444.com, www.wn5555.com, www.wn6666.com,
www.wn7777.com, www.wn8888.com, www.wn9999.com, www.112211.com,
www.4456888.com, www.4489888.com, www.001148.com, and www.2289888.com,
Defendants., Gaming Law Review and Economics, Mary Ann Liebert Inc, 20(10), pp. 859–868,
[online] Available at: http://dx.doi.org/10.1089/glre.2016.201011.

In-Text Citation: (Anon, 2016)

[9] Gilmour, J. and Stancliffe, M. (2004) Managing knowledge in an international organisation:

the work of Voluntary Services Overseas (VSO), Records Management Journal, Emerald, 14(3),
pp. 124–128, [online] Available at: http://dx.doi.org/10.1108/09565690410566783.

In-Text Citation: (Gilmour and Stancliffe, 2004)

[10] thuvienphapluat.vn (n.d.) 80/2021/ND-CP in Vietnam, Decree 80/2021/ND-CP elaboration

Law on Provision of Assistance for Small and Medium Enterprises in Vietnam, 80/2021/ND-CP in
Vietnam, Decree 80/2021/ND-CP elaboration Law on Provision of Assistance for Small and
Medium Enterprises in Vietnam, [online] Available at: https://thuvienphapluat.vn/van-
ban/EN/Doanh-nghiep/Decree-80-2021-ND-CP-elaboration-Law-on-Provision-of-Assistance-for-
Small-and-Medium-Enterprises/487551/tieng-anh.aspx.

In-Text Citation: (n.d.)

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