A BUSINESS ENVIRONMENT REPORT FOR BRITISH PETROLEUM IN VIETNAM Prepared for: Lecturer, Mr Jubred A Peñano The unit 4: Business Enviroment The Banking Academy Prepared by: Phạm Hải Yến - Alice Student No: F05-261 Class: F05A No of words: 8890 Submission date: 23 November, 2012 Phạm Hải Yến – Alice Executive summary After joining the WTO, Vietnam expanded integration with other countries in the region and the world As a developing country, Vietnam offers many opportunities for multinational companies to invest in Vietnam BP - the world leading oil and gas company - is one of them Founded in 1908, today BP operations in over 100 countries around the world, with 29 facilities exploration and exploitation of oil and gas, 17 oil facilities with a total staff of up to 92,000 people Before, BP had oilrigs in Ba Ria Vung Tau, in 2009, after the oil spill BP had to sell 50% stake to TNK Their business now Vietnam is focused on the production and distribution of lubricants through Castrol BP Petco The purpose of this report is providing some information about BP and their operations in the world and in Vietnam Furthermore, it also focuses on the economic environment in Vietnam that influences BP’s business Phạm Hải Yến – Alice Contents Phạm Hải Yến – Alice List of table List of figure Phạm Hải Yến – Alice Introduction The economic growth of Vietnam has increased markedly in recent time Besides that, Vietnam is also a potential market with the unlimited demand After joining WTO in 2007, Vietnam has more incentive policies to attract foreign companies investing in Vietnam BP came to Vietnam in 1989 and after 23 years, BP has some particular achievements in Vietnam that meets their worldwide purpose The aim of the report is to show the vision, mission, value, goals, and objectives of BP worldwide and how it meets them in Vietnam Then, writer indicated the influenced of stakeholders in BP and how BP satisfies them Following this, the responsibilities of BP in Vietnam and in the world is described In the second part, the writer gave information about the economic system and the allocation resources in Vietnam Last but not least, the impact of fiscal, competition policy and competition policy on BP was evaluated Source of information comes from the course book BBP Learning Media and Internet This report still has shortcomings because the limited knowledge and experience of writer, the language barriers Phạm Hải Yến – Alice 1.1 Identify the purposes of different types of organization: 1.1.1 Type of organization: The legal structure of a business decides the way it operates There are three types of organization, which are sole trader, partnership, company According to case study (BRITISH PETROLEUM, UK – PUBLIC LIMITED COMPANY , 2012), BP is a multinational public limited company whichcompany, which is owned by a large number of investors from all over the world They have more than 83,000 employees in 70 countries Their upstream and midstream are active in 30 countries Additionally, BP is FTSE 100 listed on London Stock exchange with the ticker BP PLC (Londonstockexchange, 2012) Therefore, its shares can be acquired by anyone When buying shares from a public company, shareholders are not responsible for company’s debts or liabilities so they only possible lose all money that they pay for shares The more shares they hold, the more power they have They also receive dividends according to number of shares The dividend paid to shareholders in 2011 was $4,072 1.1.2 The vision, mission, goals, values and objectives of BP: a Vision, mission, goals, values and objectives of BP: Vision: “To be a stronger and safer company” (BP, 2012) Mission: “To deliver energy to the world, to be held to high standards in what they and to be a safety leader in their industry, a world-class operator, a good corporate citizen and a great employer” (BP, n.d.) Goals: Phạm Hải Yến – Alice “No accidents, no harm to people and no damage to environment” (BP, 2012) Value: “Safety, respect, excellent, courage, one team” (BP, 2012) Objectives: “To create value for shareholder by helping to meet the world’s growing energy needs safely and responsibly” (BP, 2012) b Explanation: - The vision of BP is brief, clear and concise It describes what company intends to be in the future In each period, company can change it vision to be suitable with the situations at that time For example, Lord John Brown (1995) set his vision in restructuring BP and making it to become one of the most profitable companies in the world (Energy intelligence, n.d.) However, at that time, British Petroleum was considered as one of the worst companies related to environment Therefore, when Tony Hayward replaced the former CEO, he set out his vision includes intensifying safety efforts, improving performance and adhering “even more strongly to BP values” (McNulty, 2007) In 2012, because of the consequences of the oil spill in the Gulf of Mexico happening in 2010, the vision of BP focus on change the bad image in public’s eye and want to be considered as a safe and strong company With this vision like that, the management system of company must be concentrated on safety Furthermore, employees of company have to put the safety of themselves and their colleagues on the top The employees also determine to contribute to make BP stronger - The mission of BP is specific, focused and easily to understood BP's mission focuses on the need of customers They understand that energy is essential for everyone, every process and everywhere for heat, light and mobility Therefore, they provide energy products such as fuel, which are affordable, secure, and does not damage to the environment Their main strength is oil and gas They also supply renewable energy sources Their target market of BP is the whole world It is a big market that needs a lot of effort to carry out Besides, BP put a high standard for them to operate to be the leader in the industry This also requires a great performance from their workers to meet the world standard, Moreover, BP continues to aim to be safer so it is Phạm Hải Yến – Alice related to the vision In the mission, British Petroleum also shows their concerns to the community, environment that they run in - The goal of British Petroleum is short and concise There is three clear parts in the goal The first one is “No accidents” for their employees They committed to ensure the safety, the security and health of their people The next one is for the safety of community The final one is the commitments to the protection of environment To achieve this goal, BP runs their business compliance with HSSE system (Health, safety, security and the environment) - The value of BP is detailed It is also the environment that company runs, the interaction of the boss and the attitudes for customers BP set its value with elements as follow:  Safety: They want to create a safe working environment for their worker They also care about the safety of the communities around company Their product must meet the safe requirements  Respect: All of their operations follow the respect They respect the community so their performance must be ethical and trustable They respect the world in which they operate so they obey the laws and regulations They respect their partners and their employees’ thought Finally, they respect the environment by caring about their decisions’ consequences  Excellent: Because of the hard conditions, BP’s operations are following the system and disciplined They are willing to learn and not mind to correct mistakes  Courage: They are not afraid of difficulty and dare to express what they believe BP wants to be creative and ready for asking for help They accept their own mistake and want the feedback from other to improve them because they want to run the business lastingly  One team: They try to run a unified whole They put the benefit and success of company ahead Firstly, their success comes from safety and excellent They put safety on the top and try to protect employees and the community They also make effort to protect the environment where they work Furthermore, because of the hard conditions, British Petroleum’s employees must be excellent and follow the discipline They are always willing to learn and correct the mistake Secondly, their behaviors base on how they respect each other and are they courage to the right thing? Every one trusts each other The basic of equality is respecting people’s right and no discriminations Everybody is protected by laws Most importantly, they work as a team The strength of company contains individual capability - The objective of BP is to pass several milestones by setting a 10- point plan for 2012 and to have greater financial investments in 2013 – 2014: Phạm Hải Yến – Alice Three of their objectives (BP, n.d.) are:  Drilling 12 exploration wells double the 2011 total in 2012 Specific: Carry out to explore more wells Measurable: 12 exploration wells double 2011 Attainable: attainable by implementing their main projects in Angola, Gulf of Mexico and the North Sea Results – oriented: to find more energy Time – bounded: in 2012  Completing payments into the Deepwater Horizon oil spin trust Specific: pay compensation money for the oil spill Measurable: No specific number Attainable: by selling business or earn more revenue Results – oriented: to earn back the trust and show the responsibilities Time – bounded: 2012  Completion of $38 billion divestment programme by the end of 2013 Specific: to reduce the capital Measurable: $38 billion Attainable: selling business Results – oriented: to have capital for other programme Time – bounded: 2013 c Summary: In summary, BP is a multinational published company which operating in oil and gas field All of their vision, mission, goals, values and objects are based on three priorities of safety, earning back trust and growing value for shareholders With the first priorities, BP sets their mission to be a safer company Their mission also related to safety when they want to be a safety leader in their industry To implementing these vision and mission, their goal direct to the safety of their employees and the communities that they operate in The second priority shows clearly in the value of company To earn back trust, they must show their respect to other people Their performance must be ethical and trustable They also have to be courage to accept their mistake and fix it Additionally, they need to show the responsibility by completing the payment for the oil disaster The last priority can be seen in the vision “to be a stronger company” To make it come true, BP has set several objectives to earn more profit such as explore more wells, carry out some major project As a part of BP worldwide, BP in Vietnam has been following the vision, mission, goal, value and objectives BP arrived Vietnam in 1989 and after 23 years investing in Phạm Hải Yến – Alice Vietnam, their operations focus on exploring and exploiting oil, gas; producing and consuming lubricants, crude oil They also contribute to Vietnamese power industry In recent years, BP in Vietnam has implementing some business activities to meet the BP worldwide purpose BP creates a safety working environment for their workers They prohibited all the illegal behavior or activities that are hostile, fighting and doing harm with each other To protect workers in drilling platforms, BP put safety instructions everywhere Workers have to follow the strict rule and wear protective clothing Additionally, they have many programs to protect and conserve environment For example, they have program to train their staff how to minimize, recycle and reuse waste They also helped to replant 20-hecta of trees for the environment conservation Moreover, they also earn trust of customers in Vietnam by producing and supply high quality products and good services Their products have been accredited ISO 9001 quality standard Beside this, their image in Vietnam is good when they contribute to the social education or social heath BP cooperated with UK's Foreign and Commonwealth Office and Leeds University to award scholarships for Vietnamese student and government employees In 2012, they sponsored billion VND for cancer patients However, in 2010, BP sold its assets in Vietnam and Venezuela to TNK – BP (a Russia‘s third largest oil company) It was a part of BP objectives to earn $38 billion divestment and have money to pay for the oil spill In conclusion, all of activities of BP in Vietnam are not separated from their worldwide purpose 10 Phạm Hải Yến – Alice Land and natural resources: The total area of land in Vietnam is 33095.7 and is divided into three groups: Agricultural land, non - agricultural land and unused land The chart below shows the percentage of land using in each group: Figure Land use Source from (General statics office, n.d.) From the chart, land use for agricultural still accounts for the highest percent because Vietnam is an agricultural country (26226.4 ha) This land used for production, forestry, water surface for fishing, salt production and others Picture Land in Vietnam Besides that, the land uses for non- agricultural (3705 ha) and unused land (3164,5 ha) is nearly the same amount Non – agricultural used for homestead, specially used, religious, cemetery, rivers and specialized water surfaces and others Unused land included unused flat land, unused mountainous land and non-tree rocky mountain => In recent years, effectiveness in managing and using land change positively The mechanisms and policies about land management are completed and tight This contributes to innovations and development economy and society of Vietnam However, there are still 28 Phạm Hải Yến – Alice violations and deficiencies For example, many projects stop working or are revoked, making difficulties for residents Therefore, this generated complaints and denunciations A lot of land used with wrong purpose To managing and using land effectively, government inspectors conduct inspections for the planning, management and using land in 2011 to clarify the current situation of land management and point out the problems, contribute to improving efficient land use On the other hand, Vietnam is has many minerals resources with nearly 40 kinds such as metallic, non- metallic minerals or construction materials However, this resource only has a small amount and decentralized distributes There are main kinds as follows: - Energy minerals: + Oil and gas may run out of exploitation in few decades + Coal is also shortage of + Uranium and geothermal potential is not significant - Non-metallic minerals and construction materials is not much and not high economic value - Metal minerals such as gold, silver, copper, lead, zinc, iron, tin, molybdenum and so on has very little amount - Gems such as ruby, sapphire, period reserve little Invalid source specified => Minerals resources of Vietnam are not rich and need strategy to use suitably Current mineral resources of Vietnam were exploited illegally in large numbers This makes a particularly serious threat to the ecosystem and leads to the risk of depletion of natural resources 29 Phạm Hải Yến – Alice BP is the oil and gas company and has been exploiting in Lan Do, about 360km from southeast coast of Ba Ria-Vung Tau province The exploitation of oil and gas should be reasonable and comply with the rules Picture Lan Tay rig in Ba Ria Vung Tau Labor: Labor is the strength of Vietnam Vietnam has am abundant labor with the population of 87,840 people (ranked the fourteenth in the world and the third in South East Asia) In 2011, the number of people in working age was 46,480 people, increase 0, 12% compared with 2011 Figure Labor force from 15 years old However, Vietnam lacks of skilled labors, high – tech labours and the quality of labours in Vietnam is much lower than other countries Figure 10 Percentage of trained employed worker at working age 2011 The number of trained employee is nearly fold lower than the number of untrained employee This will affect directly to the salary and the living standard of residents 30 Phạm Hải Yến – Alice Besides that, labor focus on some main field such as agricultural, forestry and fishing and manufacturing Labors working in agricultural were 24362.9 which representing for nearly half of employed population at 15 years Vietnamese labors are smart and agile in understanding the innovation, however, is not trained fully This will affect the quality and the development of Vietnam society and economy => Labors are advantages of BP when running in Vietnam There are always enough labours for BP However, BP needs to train them to meet the requirement of labours Capital: There are many sources of capital in Vietnam such as Foreign Direct Investment (FDI) and Official Development Assistance (ODA) ODA is an official part of the financial resources that developed countries’ governments and multilateral organizations lending developing countries to develop economic and social welfare of this country ODA including all amounts grants, refundable loan and incentives loan; including grants and other incentive factors accounting for 25% of supply There were 51 bilateral and multilateral ODA donors to Vietnam In 2011, donors signed to finance Vietnam 8.342 billion USD In particular, concessional ODA accounts for 87%, 13% non-refundable ODA Receiving and using of ODA over time are evaluated basically effective and have a positive impact on the socio-economic development and poverty reduction in Vietnam Vietnam has actively exploit the positive aspects of ODA to cater to reform, restructure the economy, to build a market economy with socialist orientation while maintaining the independence, autonomy, according to 31 Phạm Hải Yến – Alice 2.2 Access the impact of fiscal and monetary policy on business organizations and their activities: 2.2.1 Macro- economic policy: Macro – economic policy: “Government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth Common macroeconomic policies are fiscal and monetary.” (glossary, n.d.) In 2011, although there were a lot of difficulties, challenge, however, under the management of the Party and Government, the efforts of the businesses, people, the Vietnamese economy has a positive change and achieve results in curbing inflation, stabilizing macro economy For example, the economy growth was 6%, exporting increased fold compared with targets and super importing declined dramatically Besides this, there were some limitations, weakness Manufacturing had a lot of difficulties because of the high input price Businesses are difficult to access capital Business performance decreased clearly The pressure of inflation is still high These problems required higher efforts, attempt and determination of political system, firms and residents in the future The objectives of 2012 is to curb inflation, stabilize the macro-economy, maintain reasonable growth rate associated with renew the growth model and restructure the economy, improve the quality, effectiveness and competitiveness To achieve these goals, government needs to apply effectively, coordinate closely between fiscal policy and monetary policy Fiscal policy: a The definition of fiscal policy: Fiscal policy is “government's revenue (taxation) and spending policy designed to counter economic cycles in order to achieve lower unemployment, achieve low or no inflation, and achieve sustained but controllable economic growth Fiscal policies are based on the concepts of the UK economist John Maynard Keynes (1883-1946), and work independent of 32 Phạm Hải Yến – Alice monetary policy which tries to achieve the same objectives by controlling the money supply.” (BusinessDictionary, n.d.) b The impact of fiscal policy on Vietnam economy: Fiscal policy related to taxation, other sources of income, government spending, borrowing whenever spending exceeds income, repaying debt when income exceeds expenditure Government collects tax to spend for public services such as infrastructure, health and education service, defense, wages and salaries, pensions and so on One example of the impact of fiscal policy on economy is the high tax High taxation impacted less revenue but government has more money for expenditure Corporation tax in Vietnam is high, 25 % of income for tax Therefore, businesses are not able to accumulate and reinvest High tax and cost can impact negatively: spiritual life of the majority of people is difficult, businesses have no accumulation, lose competitiveness even withdraw from the market It is also the driving force behind tax evasion, tax fraud, corruption, division between public servants and taxpayers The high tax is one of the barriers to attract foreign investment Thus, reducing the corporate income tax rate is necessary c Situation of Vietnam’s fiscal management: “RESOLUTION No 29/2012/QH13 Invalid source specified.: Introducing a number of preferential tax policies on organizations and individuals Reducing 30% of the enterprise income tax amount payable in 2012 for: a) Medium and small enterprises, excluding medium and small enterprises doing lottery, real estate, securities, finance, banking, insurance business or producing goods, providing services subject to special consumption tax; first-class enterprises, special-class enterprises belonging to economic corporation and general companies; b) Intensive-labor enterprises that produce, process and treat: agricultural products, forestry products, aquacultural product, textile and garment, leather and footwear, electronic components; building socio-economic infrastructural constructions The presumptive tax (value-added tax, personal income tax) and enterprise income tax in 2012 is exempted for households and individuals providing hostel services for laborers, workers, students; households and individuals providing nursery services; households 33 Phạm Hải Yến – Alice and individuals providing catering services as long as such households and individuals sustain the prices of their services as from the end of 2011 The personal income tax is exempted from July st until the end of December 31st 2012 for individuals earning taxable incomes from salaries, wages and business that belong to the Level of the Partially progressive tariff specified in Article 22 of the Law on Personal income tax No 04/2007/QH12.” => When BP has been operating in Vietnam, it has to pay tax regularly and fully With the high corporation tax, BP lost a lot of money in their revenue to pay tax Thus, BP has little money to invest in other projects However, with the new policy of tax reduction, BP is in the area of tax reduction Therefore, BP has more money to invest in their projects Monetary policy: a The definition of monetary policy: Monetary policy is “Economic strategy chosen by a government in deciding expansion or contraction in the country's money-supply Monetary policy plays the dominant role in control of the aggregate-demand and, by extension, of inflation in an economy.” Invalid source specified b The impact of monetary policy on Vietnam economy: Monetary policy involves interest rate, exchange rates, control of the money supply and the controls of overbank lending credit Interest rate is one of the main factors of monetary policy that affects a lot on economy When interest rate is high, the businesses have to pay more money for their loans so they will have less money for invest Furthermore, high interest rate makes residents want to keep money in bank, so the expenditure will fall and also not to buy expensive items In 2011, the high interest rate, the difficulty to access capital lead to more than 50,000 businesses went bankrupt and numerous others shrinked operation Therefore, reducing high interest rate is one of the main work for government when operating monetary in Vietnam in 2012 c Situation of Vietnam’s monetary management: Decision 407/QD – NHNN (Goverment, 2012) The interest rate provisions of the State Bank of Vietnam as follows: Refinancing interest rate: 14.0% / year Rediscount rate: 12% / year 34 Phạm Hải Yến – Alice Overnight lending rate in the inter-bank electronic payment and loans to make up for deficiencies in the clearing of the State Bank of Vietnam to banks: 15.0% / year Circular 05/2012/TT – NHNN To amend, supplement Article of the Circular No 30/2011/TT-NHNN dated 28 September 2011 providing for the maximum interest rate applicable to deposits in Vietnamese dong of organizations, individuals at credit institutions, foreign bank's branches: Paragraph Article shall be amended, supplemented as follows: "1 For maximum interest rate applicable to demand deposits and deposits with term of less than one month: to be of 5% per annum." Paragraph Article shall be amended, supplemented as follows: "2 For maximum interest rate applicable to deposits with term of one month and more: to be of 13% per annum; for local People's credit funds alone, they shall fix their maximum interest rate applicable to deposits with term of one month and more to be of 13.5% per annum." => Explanation:  Reducing the refinancing rates from 15% / year to 14% / year  Reducing the interest rates for overnight loans in the interbank electronic payment of 16% / year to 15% / year  Reducing the rediscount rates from 13% / year to 12% / year  Reducing the maximum interest rates applicable to term deposits with a term of less than month from 6% / year to 5% / year  Reducing the maximum interest rates for period term deposits and term deposits with a term of one month or more from 14% / year to 13% / year (only with people's credit fund basis, the maximum interest rates deposits with a term of one month or more decreased from 14.5% / year to 13.5% / year) => The interest rate reduction is an advantage for BP when borrow money from banks It does not need to pay high interest Therefore, they will save more money in reinvesting 35 Phạm Hải Yến – Alice 2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization 2.3.1 The industrial policy: a Overview of industrial policy in Vietnam: Industrial policy plays an important role in economic growth and development because the industry is one of the key industries in Vietnam and contributes to GDP It is also the driving force for the development of agriculture and services Industrial policy is the core of industry in Vietnam Industrialization and modernization of the country are implemented when Vietnam has industry basing on reasonable industrial policy It helps Vietnam increase economic growth, raise the ability to integrate regional and international economy Vietnam has many industrial policies to promote the pace of industrialization, modernization, economic growth and development However, this policy system is not synchronized; policy enforcement has many limitations Industrial policy is “the policies of a nation that help guide the total strategic effort of the country The policies influence the development of different sectors and create a stronger portfolio of national industry.” (BusinessDictionary, n.d.) b Situation of Vietnam’s industrial policy: According to directive 18/CT-TTg (government, 2012) for on the implementation ò human development planning Vietnam period 2011 – 2020 and stepping up training needs under social development of the period 2011 – 2015, it wrote: Businesses, agencies, organizations and employers: - Develop management plans and human resource development of their unit Proactively allocate business resources in the training and retraining to meet the demand for human resources for the period 2011 - 2015; reviewing human resource training contracts signed with the institutions of the years, assessing the quality of students, graduate students to provide feedback to training institutions - Continue to build and strengthen cooperation with training institutions, research institutions in training activities, determine staffing needs, mobilize and share resources, along with the 36 Phạm Hải Yến – Alice base funding training to promote training and research needs; coordinate with other institutions the standard output of the construction industry and trades training - Co-operation, support financial for institutions, to create favorable conditions on the basis of actual practice, students, students of the institution c The impact on BP Vietnam BP needs to have program to train and develop their employees to meet the requirement Furthermore, BP also has to support training institutions With the industrial competitiveness policy, BP has the right to free compete legally with their competitors However, it is forbidden to have any action of market exclusive It is prohibited to sell goods, services under the standard of price to eliminate competitors, prevent the participation of competitors, impose the buying and selling price of goods and services unreasonably or fix the minimum resale price damage to the client 2.3.2 The social welfare policy: a Overview of the social welfare policy in Vietnam: Social welfare policy seeks to protect and directly improve people’s standard of living It consists of old age programmes, unemployment, sickness/disability, social assistance/poverty alleviation, health/medical care, environmental policy (BBP Learning media, 2010) b Situations of Vietnam’ social welfare policy: Social welfare policy in Vietnam includes social insurance, social relief and social incentives Social insurance is the protections of society to residents before unexpected incidents such as illness, occupational accidents, and unemployment Social incentives are for the old, children, the poor, the disabled and so on Social relief is for when there are floods, drought and storm Recently, Vietnam has paid attention to develop economy but not yet cared about social welfare Vietnam has spent 40% of national budget for social welfare but not yet 37 Phạm Hải Yến – Alice covered all There are a lot of people not being supported of accessed social services There are many the old, homeless children, poor children that have to quit school for earning living but not being taken care Besides that, social welfare must ensure the standard living of labour On the other hand, Social welfare only support health problems or lending loans for the poor have household registration The self-employed, people not have legal papers are not eligible for this security level c The impact on BP Vietnam: BP needs to be sure about the standard living of their workers, have to protect their health, working environment and security On the other hand, BP also has to care about the community by protecting environment and dong charity 38 Phạm Hải Yến – Alice Conclusion Vietnam government creates a lot of good conditions for BP to run in Vietnam The aim of the report is to show the vision, mission, value, goals, and objectives of BP worldwide and how it meets them in Vietnam Then, writer indicated the influenced of stakeholders in BP and how BP satisfies them Following this, the responsibilities of BP in Vietnam and in the world is described In the second part, the writer gave information about the economic system and the allocation resources in Vietnam Last but not least, the impact of fiscal, competition policy and competition policy on BP was evaluated My analysis in this report is detailed However, next time it will be better because I will spend more time to conduct 39 Phạm Hải Yến – Alice Reference BBC, 2011 BBC [Online] Available at: http://www.bbc.co.uk/news/world-us-canada-12124830 BBP Learning media, 2010 Business environment 2010 ed s.l.:BBP Learning Media Ltd BP, 2006 BP [Online] Available at: 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15 .0% / year Circular 05/2 012 /TT – NHNN To amend, supplement Article 1 of the Circular No 30/2 011 /TT-NHNN dated 28 September 2 011 providing for the maximum interest rate applicable to deposits in Vietnamese dong of organizations, individuals at credit institutions, foreign bank's branches: 1 Paragraph 1 Article 1 shall be amended, supplemented as follows: "1 For maximum interest... 2 012 ), Total revenues and other income in 2 012 was $388,463, increasing in profit of $79, 535 and $14 2,325 in 2 010 and 2009 respectively Therefore, the profits also rise following revenue In 2 010 , because of the oil disasters, BP lost 17 Phạm Hải Yến – Alice profits of $3,324 and shareholders lost $ 3, 719 However, in 2 011 , BP earns profits of 26,097 and shareholders earn $25,700 c Continuation of business ... the third in South East Asia) In 2 011 , the number of people in working age was 46,480 people, increase 0, 12 % compared with 2 011 Figure 9 Labor force from 15 years old However, Vietnam lacks of skilled labors, high – tech labours and the quality of labours in Vietnam is much lower than other countries Figure 10 Percentage of trained employed worker at working age 2 011 The number of trained employee is... create a stronger portfolio of national industry.” (BusinessDictionary, n.d.) b Situation of Vietnam’s industrial policy: According to directive 18 /CT-TTg (government, 2 012 ) for on the implementation ò human development planning Vietnam period 2 011 – 2020 and stepping up training needs under social development of the period 2 011 – 2 015 , it wrote: Businesses, agencies, organizations and employers: -... from (PayScale, 2 012 ) 2 Shareholders: a Dividends – Achieved: In the third quarter of 2 012 , the quarterly dividends for shareholders increases by 12 , 5% to a 9c a share Although, in 2 011 , BP lost profits, in 2 012 with the strong process, the right management, BP can increase the dividend again It is dividend payment in September 2 012 : Figure 6 Dividend payment Source from (BP, 2 012 ) b Increase profits... a range of objectives 19 Phạm Hải Yến – Alice 1. 3 Explain the legal responsibilities of the BP and strategies employed to meet objectives of stakeholders: 1 Social a Specific responsibility Create jobs for residents responsibility b Social education 2 Environmental c Social welfare d Prevent pollution and the impact responsibility 3 Ethnics and business e Protect environment f Environment conservation... interbank electronic payment of 16 % / year to 15 % / year  Reducing the rediscount rates from 13 % / year to 12 % / year  Reducing the maximum interest rates applicable to term deposits with a term of less than 1 month from 6% / year to 5% / year  Reducing the maximum interest rates for period term deposits and term deposits with a term of one month or more from 14 % / year to 13 % / year (only with people's... media, 2 010 ) 1. 2.2 The influence of stakeholders: Types Stakeholders Stakeholders mapping 11 Phạm Hải Yến – Alice 1 Internal stakeholders 2 Connected stakeholders 3 External stakeholders a Management b Employees a Suppliers b Shareholders c Customers d Bankers a Community b Government Key Keep Keep Minimal players  satisfied informed effort        Table 1 Thethe influence of stakeholders 1 Internal... corporate image, business and ethnics 25 Phạm Hải Yến – Alice 2 .1 Explain how economic systems attempt to allocate resources effectively: 2 .1. 1 Overview of the economic system and identify Vietnam’s market system: 1 The economic system: The economic system is “An organized way in which a state or nation allocates its resources and apportions goods and services in the national community” (Businessdictionnary,... according to 31 Phạm Hải Yến – Alice 2.2 Access the impact of fiscal and monetary policy on business organizations and their activities: 2.2 .1 Macro- economic policy: Macro – economic policy: “Government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth Common macroeconomic policies are fiscal and monetary.” (glossary, n.d.) In 2 011 , although