VINATAXI

----------- ----------

REPORT

INVESTMENT GPS SYSTEM IN

VINATAXI

Location

: Ho Chi Minh City, Vietnam

Proposer

: Vinataxi

Performer

: Vinataxi

Investor

: ComfortDelGro (Singapore)

Ho Chi Minh City, June 2014

Tp.H Ch Minh - Thng 1 nm

VINATAXI
----------- ----------

REPORT

INVESTMENT GPS SYSTEM IN

VINATAXI
CONSULTANT
VINATAXI

CONSULTANCY & INVESTMENT

(General Director)

THAO NGUYEN XANH CO.

(Vice General Director)

CHIA CHUEN HUEI

NGUYN BNH MINH

Ho Chi Minh City, June 2014

Investment GPS System in Vinataxi

TABLE OF CONTENT
CHAPTER I: INTRODUCTION ABOUT THE PROJECT........................................................1
1.1. In troduction about the project.........................................................................................1
1.2. The unit responsible for project.......................................................................................1
1.3. Legal Basis..................................................................................................................... 2
CHAPTER II: THE ESSENTIAL INVESTMENT PROJECT....................................................3
2.1. Demand for use Taxi at the moment................................................................................3
2.2. The difficulties in management and operating taxi system..............................................4
2.3. GPS solutions for taxi management.................................................................................4
2.3.1. The features of GPS technology..............................................................................4
2.3.2. System Structure.....................................................................................................5
2.4. Status of application of GPS technology in the management of taxi in Vietnam.............7
2.5. Conclusion about necessary of this investment...............................................................7
CHAPTER III: THE CONTENTS OF THE PROJECT...............................................................9
3.1. The list of machinery and equipment required investment..............................................9
3.2. The progress of project....................................................................................................9
CHAPTER IV: FINANCIAL PERFORMENT IN INVESTING GPS SYSTEM......................11
4.1. Value Investment...........................................................................................................11
4.1.1. Value Investment...................................................................................................11
4.2. The capital of project.....................................................................................................11
4.2.1. The process of project...........................................................................................11
4.2.2. The capital of project.............................................................................................11
4.3. Financial Performance...................................................................................................11
4.3.1. The benefits in investing GPS system...................................................................11
4.3.2. Auditors report.....................................................................................................14
4.3.3.Audited Financial Statements.................................................................................15
4.4. The effects of socio-economic projects.........................................................................17
CHAPTER V: CONCLUSION..................................................................................................18

Vinataxi

Investment GPS System in Vinataxi

CHAPTER I: INTRODUCTION ABOUT THE PROJECT

1.1. In troduction about the project
Project Name : Investment GPS system in Vinataxi
Address: Ho Chi Minh City
Project Objectives: Investment into the GPS system to manage about business activities
of Vinataxi :
+ Reduce personnel costs
+ Support for professional management
+ Anti- revenue losses
+ Support Executive
+ Improve customer service
+ Raising aware of drivers
Type of investment
: ComfortDelGro Corporation (Singapore) investment 100%
capital
Forms Management
: Through Project Management Unit of Project is established
by the investors.
Value investors GPS : 4,818,848,000 VND (equivalent 372,975S$)
Financial performance: NPV = 1,182,125,000 VND > 0; IRR = 25% >> re = 18%
The Project brings high profits for the investors
The implementation progress: The project was deployed in August 2006 and put into use
in early 2007 and gradually completed in 2008
1.2. The unit responsible for project
Unit investment : ComfortDelGro Corporation (Singapore)
Unit suggestions: Vietnam Taxi Company (Vina Taxi)
Unit implemented: Vietnam Taxi Company (Vina Taxi)
Vina Taxi Co. is a joint venture between Tracodi Co. and ComfortDelGro (Singapore),
established under the investment license dated 24.10.2008 No. 411022000346.
English name: VIETNAM TAXI CO., LTD
Trading name: VINATAXI
Location: Tan Binh Industrial Zone, Road No. 4, Lot 4-15B, Tay Thanh Ward, Tan Phu
District, Ho Chi Minh City
Tel: (84 8) 38155152 - 38155153
Fax : (84 8) 38155158
Have a competitive advantage when the driver team have a lot of experienced , manage
cost-effective and achieve efficient economic from advantages of scale. Therefore, Vinataxi is
expected to continue to hold the leading position in the industry, particularly in the southern
region. Thus, we believe that the growth of revenue will be stable, the using of capital effect
will increase.
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Investment GPS System in Vinataxi

1.3. Legal Basis

- Law on Investment on 29/11/2005 No.59/2005/QH11 of the National Assembly of the
Socialist Republic of Vietnam;
- Enterprise Law on 29/11/2005 No.60/2005/QH11 of the National Assembly of the
Socialist Republic of Vietnam;
- Law on Road Traffic;
- Dispatch No.206/2003/QD-BTC December 12, 2003, promulgating the regime of
management, use and depreciation of fixed assets.

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Investment GPS System in Vinataxi

CHAPTER II: THE ESSENTIAL INVESTMENT PROJECT

2.1. Demand for use Taxi at the moment
The taxi service branch is one of the industrial capable of positive growth in the
macroeconomic situation in country at present. We estimate the taxi market will stabilize
growth, especially in the large cities due to:
(1) .Flow of passengers using the road traffic have increased significantly with the average

speed at 9 % / year comes from the travel demand of the people as well as the increase in
international passenger traffic to Vietnam. Moreover, the growth index of road traffic and the
number of international tourists in the first 5 months of 2006 there has been a strong
breakthrough compared with 2005. Consequently, we believe that taxi services will grow
faster than by the transport market, strong growth in both scale (traffic volume) and number of
passengers.

Source: GSO
1. (2) People's incomes increase , traveling in the rainy season and the development yet
strong enough of the public transport such as buses, motor taxi ... making people use the taxi
services more because of the service and its utility.
In short, today, growing social , people's lives improved physically and mentally. Demand
for food, clothing, cosmetic, including the transportation of people increasingly more attention.
Besides the appearance of the motorcycle, car, bus is transportation mainly of people, the
demand uses taxis increasingly became popular. Demand for uses.

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Investment GPS System in Vinataxi

2.2. The difficulties in management and operating taxi system

Currently, the taxi companies operate as the traditional way: the customer will call to
operator, he/she will recieves and writes information on paper: address, taxis and address of
customers... then, this information will be send to call center and up to the talkie. In parallel
with the large number of people and vehicles, the administration - management and resolve
issues arising relating faced many difficulties, may be mentioned the following difficulties
( 1) Call-Centre works
- It was mainly based on the radio. Staffs could not locate the taxis so that they must
depend entirely on the response of drivers whenever they wanted to go or arrived the points.
Many drivers intended to cheat by reporting the wrong cars numbers, wrong locations or not
reported to the Call-Centre when they got the customers to avoid being tracked.
- At the tradition Pick-up-points where drivers used to gather to get and manage queues
by themselves, there were some negative status like: the monopoly status (just a group of
drivers could join that rank, the other could not), drivers could choose customers to serve,
cheat customer, offer negotiated prices higher than by taxi meter..
- Beside, when those areas were short of car, staffs could not know in advance so that
they could not give notice for drivers to bring car back to serve customers.
(2) Customer Service works
- The investigation mainly based on the radio and self-conscious of drivers.
- Staffs resolved the complaints based on their personal experience so that must of our
feedback were not convincing.
- The rate of successful resolution is very low (<50%)
(3) Defer shifts for drivers
- The defer shifts work was difficult, inaccurate and unprejudiced because it much based
on the drivers reports and staffs records.
- Drivers and employees took advantage of this work to make their profit and cause
financial damage for the company.
(4) To revoke taxis due to overdue debt
- It was very difficult and took much time for enforcement staffs to take cars back
because they could not know cars locations while drivers tried to hide by many ways.
(5) Issue the VAT invoice for customer
- Many drivers colluded with customers to apply for VAT invoice or co-operate with taxi
card users to imprint receipts for false trips. In these cases, staffs could not check or verify.
2.3. GPS solutions for taxi management.
2.3.1. The features of GPS technology
The application of GPS technology in the management of transportation are becoming
more popular in the world and this is a service that provides high value-adde, base
telecommunications technology , information technology, background basis of geographic
information systems (GIS). Today, Its commonly used in the shipping industry on the
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Investment GPS System in Vinataxi

worldwide. This application is used to monitor, track and manage vehicles in order to increase
efficiency and save costs.
The system provides the key features following:
Monitor, track parameters velocity, direction of travel, the status start and shutdown
machine
Track and route simulation of vehicle movement
Statistical distance, use time, estimated the fuel consumption
Warning excessive speed, moving out of the area or the route permission
2.3.2. System Structure
The system consists of 04 main components:
Server coordinated car: located on Cloud server. This system is common to the taxi
business.
Call center server: Server system stored customer data and vehicle coordination rules.
Each taxi company will have own server.
Vehicle software: each driver will have own software coordinate car
Rack mounted in the taxi: a taxi have a GPS device setting in car screen to help locate
vehicles and communication between the truck with center

Figure: Structure taxi management system using GPS technology

The steps conditioned car

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Investment GPS System in Vinataxi

1. Customers call to center to require vehicle

2. Software coordinator is used will send the customer address for the server is waiting car
moderators.
3. Servers looking for taxi the nearest with customers and notice pickup .
4. When drivers acknowledge agreeing to pickup customers, this information will be
forwarded by the coordinator.
5. Coordinator will notify customers: license plate, time to car arrive
6. Drivers will notice the situation: they're on the way to pick up, has arrived, customer has
gotten in or gotten off taxi, to the Private Branch Exchange (PBX) can control situation of
vehicle.
Compared with the old method is use radio, the new system has the advantages following:
+ Call-Centre works
- System can locate taxis on the Google map so that staffs can keep track of taxis, can
know their status (Hired or For Hire) then try to contact drivers to ask them to go to the points
or even show them direction to there. After that staffs call back to give our feedback to
customer about taxi number and estimated time for taxi to come.
- It makes the dispatch job be more efficient and has got customers and drivers
compliments.
- By GPRS, the queues are updated automatically by the system, drivers can get jobs
orderly, cant refuse the short-trips, cant offer higher price... It also helps stop the monopoly
status as a driver can register to join Q in multiple ranks.
- By the Q-Board-Display, staffs manage taxis on each rank better as they know the
quantity of taxi on queues, status of them ( Free, On call or Meter-on). It helps re-arrange
taxis to serve customer effectively
+ Customer Service works

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Investment GPS System in Vinataxi

- The jobs dispatched by GPRS have the taxi number, time of dispatching and also the
route so that drivers must be more responsible to their customers. Many drivers return
belongings to customers before being recognized. The number of complaints has decreased
significantly.
- Currently, the rate of successful resolution is above 80%.
+ Defer shifts for drivers
- Employees can easily check and confirm the business downtime of taxis correctly and
objectively
- It helps reduce the quantity of defer shifts and the negative attitudes of staffs.
+ To revoke taxis due to overdue debt
- Locations of cars are shown on map clearly so that enforcement team can come to take
car back quickly.
- For drivers who intend to turn off the GPRS equipments, staffs still can track their
locations by using some tools of GPRS system.
+ Issue the VAT invoice for customer
- Staffs can check the authenticity of trips by viewing the cars routes.
2.4. Status of application of GPS technology in the management of taxi in Vietnam
Worldwide, GPS devices have been widely applied in many fields, especially for the
transportation sector; However, in Vietnam, location-based services are just beginning to be
exploited with some simple applications and currently on the market domestic taxi, have yet to
be a business application of GPS technology in the management and operating.
GPS applications is essential for the transport activity. To develop the public transport
system, the State should have focused investment for this solutions, so effective achieves
tremendous will to the development of the economy. If the private sector to participate in the
application will be difficult and slow because investment costs for large operating systems
2.5. Conclusion about necessary of this investment
As above, we have analyzed the demand use taxi of Vietnamese is increasing and there is
an opportunity for the development of Vinataxi,well as other taxi firms in the country.
However, during operation, almost all taxi firms appear shortcomings as well as difficulties in
management and administration.
Realizing the benefits that GPS technology brings, Vinataxi the proposed decision
ComfortDelGro Group (Singapore) invests positioning system into the management and
administration in Vinataxi. GPS technology helps Vinataxi:
+ Reduce personnel costs
+ Support for professional management
+ Anti-revenue losses
+ Support Executive
+Raising customer service
+ Raising awareness of driving.
In Short, if invested now, Vinataxi will be the first taxi firms in Vietnam applies GPS
technology into management and this will be competitive advantage of the Vinataxi compared
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Investment GPS System in Vinataxi

to competitors in the market. Therefore, Vinataxi asserts that investment into positioning
system is necessary and urgent in the current period.

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Investment GPS System in Vinataxi

CHAPTER III: THE CONTENTS OF THE PROJECT

3.1. The list of machinery and equipment required investment.
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Description
HCMC Map Street Works
Advance Tech 48 pin universes program & adaptor
Oracle Database Standard Edition
HP-UX server
Citrix presentation server
GPS Receiver
MDT/MCU & accessories
PC
GPRS modem & GPS antenna
HP SQL sever
Lan Swich
UPS
Firewall
Rack & accessoies

Qty
1
1
5
1
1
1
1000
6
950
1
1
2
1
1

3.2. The progress of project

The project will be begun at August, 2006, used in 2007, then finished in 2008.

No.

Task

Evaluate and Testing GPRS Modem and Network

MAP & Address Database Setup

Setting Up of Call Centre Infrastructure

Dispatch System Setup and Development

Enhance MDT Application to Interface GPRS Modem

2006
Aug Sept
x

Oct

2007
Nov Dec
x

Jan
x

Subcrible to GPRS Service

Setting Up of Dispatch Server (HP-UNIX) & Window

Server

Setting up of MDT support & Maintenance Team

Training of Drivers on the use of MDT

10

Purchase of GPRS Modem

11

Project Management & Agreement

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Investment GPS System in Vinataxi

12

Perchase of PC & Window Server for Call Center Agent

13

Training on Support and Maintenance of IT

Infrastructure

Vinataxi

x
x

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Investment GPS System in Vinataxi

CHAPTER IV: FINANCIAL PERFORMENT

IN INVESTING GPS SYSTEM
4.1. Value Investment
4.1.1. Value Investment
The value of investment GPS system is 4,818,848,000 VND (equivalent 372,975S$)
4.2. The capital of project
4.2.1. The process of project
The project will be begun at August, 2006, used in 2007, then finished in 2008.
1

Evaluate and Testing GPRS Modem and Network

MAP & Address Database Setup

Setting Up of Call Centre Infrastructure

Dispatch System Setup and Development

Enhance MDT Application to Interface GPRS Modem

Subcrible to GPRS Service

Setting Up of Dispatch Server (HP-UNIX) & Window Server

Setting up of MDT support & Maintenance Team

Training of Drivers on the use of MDT

10 Purchase of GPRS Modem

11 Project Management & Agreement
12 Perchase of PC & Window Server for Call Center Agent
13 Training on Support and Maintenance of IT Infrastructure
4.2.2. The capital of project
The total investment GPS System is 4,818,848,000 VND equivalent 372,975S$, this
capital is used from interest free loans of ComfortDelGro Ltd., Co.
4.3. Financial Performance
4.3.1. The benefits in investing GPS system
Besides the intangible values of investing GPS system in Vinataxi, the benefits in
operation activities:
+ Increasing the total revenue in taxi operation

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Investment GPS System in Vinataxi

Thanks to GPS System, the service quality will increase remarkably then will build
trust of customer when using Vinataxis service, contributing to raise total revenue. The
number of cars is 452 units in the previous years. Assumption, this will increase around 15%,
the total number will be 520 cars. Hence, the number of car will increase 68 cars, this shows
that the investment GPS System makes the revenue increasing more effective and competitive
advantages with others in Ho Chi Minh City.
No.

Year
Items
Revenue in taxi
Working days
The increasing cars
1
Franchised cars
5% Daily fee
15% The No. of car
2
SPP cars
Daily fee
The No. of car
3
Leased cars
Daily fee
The No. of car
Revenue increase
No.

Year
Items
Revenue in taxi
Working days
The increasing cars
Franchised cars
Daily fee
The No. of car
SPP cars
Daily fee
The No. of car
Leased cars
Daily fee
The No. of car
Revenue increase

1
5%
15%
2

2007
1

2008
2

300
68
990,000
165
20
1,920,000
320
20
2,940,000
350
28
5,850,000

300
68
1,009,800
168
20
1,958,400
326.4
20
2,998,800
357
28
5,967,000

2011
5

2012
6

300
68
1,071,608
179
20
2,078,270
346
20
3,182,351
379
28
6,332,228

300
68
1,093,040
182
20
2,119,835
353
20
3,245,998
386
28
6,458,873

Unit: 1,000 VND

2009
2010
3
4
300
68
1,029,996
172
20
1,997,568
333
20
3,058,776
364
28
6,086,340
2013
7
300
68
1,114,901
186
20
2,162,232
360
20
3,310,918
394
28
6,588,050

300
68
1,050,596
175
20
2,037,519
340
20
3,119,952
371
28
6,208,067
2014
8
300
68
1,137,199
190
20
2,205,476
368
20
3,377,136
402
28
6,719,811

+ The benefit in saving employees salary

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In Ho Chi Minh City, Vinataxi set up 26 areas, unless every taxi sets GPS system, there
is one person to operate in each area, the basis salary is 2,800,000 VND/month/person,
insurance and others are 800,000 VND/month/person.
The benefit in saving employments salary/year = 3,300,000 VND/month/person x 26
people x 13 months = 1,115,400,000 VND.
+ The benefit in cutting cost of maintenance, replacement parts of cars
System makes the dispatch job be more efficient and has got customers and drivers
compliments. It helps re-arrange taxis to serve customer effectively, to decrease fuel and
distance.
The average time for maintenance, replacement parts of cars of each taxi is 5000
kilometers.
The average cost/term = 1,050,000 VND/taxi/term
The items/year before using GPS system = 12 terms
The items/year after using GPS system = 6 terms
The benefit in cutting cost of maintenance, replacement parts of cars = 1,050,000
VND/taxi/term x 520 taxis x (12-6) terms = 3,274,740,000 VND.
No.
1

No.
1

Unit: 1,000 VND

2009
2010

The benefits of investing GPS System

2007
2008
Saving employees salary in each area
26
26
26
26
No. of employments
3,300
3,465
3,638
3,820
The average salary/person/month
The benefit in saving employments 1,115,400 1,171,170 1,229,729 1,291,215
salary/year
Cutting cost of maintenance, replacement
parts of cars
520
520
520
520
No. of taxis
1,050
1,050
1,050
1,050
The average cost/taxi/term
12
12
12
12
The items/year before using GPS system
6
6
6
6
The items/year after using GPS system
The benefit in cutting cost of maintenance, 3,274,740 3,274,740 3,274,740 3,274,740
replacement parts of cars
4,390,140 4,445,910 4,504,469 4,565,955
Total Benefit
The benefits of investing GPS System
2011
2012
2013
2014
Saving employees salary in each area
26
26
26
26
No. of employments
4,011
4,212
4,422
4,643
The average salary/person/month
The benefit in saving employments 1,355,776 1,423,564 1,494,743 1,569,480
salary/year
Cutting cost of maintenance, replacement

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parts of cars
520
520
520
520
No. of taxis
1,050
1,050
1,050
1,050
The average cost/taxi/term
12
12
12
12
The items/year before using GPS system
6
6
6
6
The items/year after using GPS system
The benefit in cutting cost of maintenance, 3,274,740 3,274,740 3,274,740 3,274,740
replacement parts of cars
4,630,516 4,698,304 4,769,483 4,844,220
Total Benefit

4.3.2. Auditors report

Operating Cost
Administrative expense: around 20% revenue
Maintenance, replacement parts of cars expense: 1,050,000 VND/taxi/term, there are
6 terms in every year.
Operating expense: 10% revenue
Management and Sale expense: 21% revenue
Depreciation Expense
Applying the method of straight-line depreciation. Depreciation time dispatch apply
Decision No.206/2003/QD-BTC of 12th December, 2003 on issuance of the regulations of
management, use and depreciation of fixed assets of The Minister of Finance .
Table depreciation of fixed assets
III

Assets

Depreciation time

III.1

GPS System

III.2

Taxis

Table Of Benefit - Cost

Year
Content

2007
1
Benefits
10,240,140
1. Increase Revenue
5,850,000
2. Other Benefit
4,390,140
Cost
9,014,256
3. Operation Expense
3,411,900
+ Administration Expense
1,170,000
+ Maintenance, replacement parts of taxis
428,400
expense
+ Operating expense
585,000
Vinataxi

Unit: 1,000 VND

2008
2009
2010
2
3
4
10,412,910
10,590,809
10,774,022
5,967,000
6,086,340
6,208,067
4,445,910
4,504,469
4,565,955
9,086,778
9,160,879
9,236,594
3,484,422
3,558,523
3,634,238
1,193,400
1,217,268
1,241,613
441,252
454,490
468,124
596,700

608,634

620,807
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Investment GPS System in Vinataxi

+ Management and Sale expense

4. Depreciation Expense of GPS System
5. Depreciation Expense of Taxis
Earning Before Tax (EBT)
Tax (25%)
Earning After Tax (EAT)
Year
Content
Benefits
1. Increase Revenue
2. Other Benefit
Cost
3. Operation Expense
+ Administration Expense
+ Maintenance, replacement parts of taxis
expense
+ Operating expense
+ Management and Sale expense
4. Depreciation Expense of GPS System
5. Depreciation Expense of Taxis
Earning Before Tax (EBT)
Tax (25%)
Earning After Tax (EAT)

1,228,500
602,356
5,000,000
1,225,884
306,471
919,413

1,253,070
602,356
5,000,000
1,326,132
331,533
994,599

1,278,131
602,356
5,000,000
1,429,930
357,482
1,072,447

1,303,694
602,356
5,000,000
1,537,427
384,357
1,153,071

2011
5
10,962,744
6,332,228
4,630,516
9,313,960
3,711,604
1,266,446
482,168

2012
6
11,157,177
6,458,873
4,698,304
9,393,014
3,790,658
1,291,775
496,633

2013
7
11,357,533
6,588,050
4,769,483
9,473,794
3,871,438
1,317,610
511,532

2014
8
11,564,031
6,719,811
4,844,220
9,556,338
3,953,982
1,343,962
526,878

633,223
1,329,768
602,356
5,000,000
1,648,783
412,196
1,236,588

645,887
1,356,363
602,356
5,000,000
1,764,163
441,041
1,323,122

658,805
1,383,491
602,356
5,000,000
1,883,739
470,935
1,412,804

671,981
1,411,160
602,356
5,000,000
2,007,693
501,923
1,505,770

4.3.3. Audited Financial Statements

A period of time is 8 years with WACC = 18%
Net Cash Flow = Cash Inflow Cash Outflow
The Total of Benefit in investing GPS System includes (Cash Inflow): Revenue of taxis,
saving cost in investing GPS System.
The total Expense includes: Depreciation Expense of GPS System, Depreciation
Expense of 68 taxis, Operating Expense.
Audited Financial Statements
Unit: 1,000 VND
Year
Content
CASH INFLOW
Revenue
Saving in employees salary
Saving in Maintenance,replacement
parts of taxis
Vinataxi

2006
0
-

2007
1
10,240,140
5,850,000
1,115,400
3,274,740

2008
2009
2010
2
3
4
10,412,910 10,590,809 10,774,022
5,967,000 6,086,340 6,208,067
1,171,170 1,229,729 1,291,215
3,274,740 3,274,740 3,274,740

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Investment GPS System in Vinataxi

4,818,848
4,818,848

CASH OUTFLOW
GPS System
Taxis
Operating Expense
Net Cash Flow
Tax
Earning Before Tax

(4,818,848)
(4,818,848)

Year
Content
CASH INFLOW
Revenue
Saving in employees salary
Saving in Maintenance,replacement
parts of taxis
CASH OUTFLOW
GPS System
Taxis
Operating Expense
Net Cash Flow
Tax
Earning Before Tax

2011
5
10,962,744
6,332,228
1,355,776
3,274,740

8,411,900

8,484,422

8,558,523

8,634,238

5,000,000
3,411,900
1,828,240
609,525
1,218,715

5,000,000
3,484,422
1,928,488
620,645
1,307,844

5,000,000
3,558,523
2,032,286
631,954
1,400,331

5,000,000
3,634,238
2,139,783
643,457
1,496,326

2012
2013
6
7
11,157,177 11,357,533
6,458,873 6,588,050
1,423,564 1,494,743
3,274,740 3,274,740

2014
8
11,564,031
6,719,811
1,569,480
3,274,740

8,711,604

8,790,658

8,871,438

8,953,982

5,000,000
3,711,604
2,251,139
655,156
1,595,984

5,000,000
3,790,658
2,366,519
667,054
1,699,465

5,000,000
3,871,438
2,486,095
679,153
1,806,942

5,000,000
3,953,982
2,610,049
691,457
1,918,592

INDEX OF PROJECT TABLE

No.

Index

Total investment GPS System

Net Present Value NPV

Internal rate of return IRR (%)

Payback period
Review

Value
4,818,848,000 VND
(372,975S$)
1,182,125,000 VND
25%
4 years
Effective

Net Present Value: NPV = 1,182,125,000 VND > 0

Internal rate of return: IRR = 25% >> re = 18%

Vinataxi

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Investment GPS System in Vinataxi

According to analyse, calculate the financial index, the project is effective with high
NPV and short payback period.
4.4. The effects of socio-economic projects
After analyzing investment performance in the 8-year period, it shows that the GPS
system makes the process and management activities of the Company Vinataxi more effective,
suitable for long-term development strategy of company.
Facing the potential economic development in our country, the investment GPS System
to finalize management systems and improving the quality of services is a necessity to bring
sustainable value to the brand Vinataxi.

Vinataxi

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Investment GPS System in Vinataxi

CHAPTER V: CONCLUSION
"GPS System Investment Project" of Vietnam Taxi Company (Vinataxi) is feasible in
technology, market and finance. Moreover, its also effective about economy and society. After
using GPS System in management, Vinataxi business activities will ensure the management
and controlling more professional.
Thus, we need the support from ComfortDelGro Corporation (Singapore) in order to
promote the project effective.
Sincerely,

Ho Chi Minh City, ..

VINATAXI
(General Director)

CHIA CHUEN HUEI

Vinataxi

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