Project Financing Case: “Nghe An Tate & Lyle Sugar Company (Viet Nam)”

1017 words - 4 pages

Session 4: Project FinancingCase: "Nghe An Tate & Lyle Sugar Company (Viet Nam)"Question 3: Are farmers likely to convert to sugar cane?The farmers who lived within 50 kilometers of the sugar mill are likely to convert to sugar cane in term of economic return and other benefits.- Economic return: Net returns to farmers per Hectare from growing Sugar cane are high. From Exhibit 9 with nominal cash flow of a crop life cycle ( 4 years), the total return of one hectare is 6,900 (000'VND) and net present value is 3,841 (000'VND) with nominal discount rate 13.3%/year. Compare to coffee and rubber, sugar cane need only one year to revenue.Compare with other crops (pineapple, coffee, rubber …), Sugar cane can get highest average economics per year from exhibit 10 as below:Unit: Dong per hectare

Sugar

Pineapple

Coffee

Rubber

Peanuts

Peanuts

Peanuts

cane

and Maize

& peanuts

and Rices

Number of years

420

420

420

420

420

420

420

Planting years

105

140

168

120

0

0

0

Typical years

315

280

252

300

420

420

420

Revenue

2,835,000

3,955,000

4,536,000

3,000,000

2,856,000

4,032,000

3,853,500

Total Costs

2,110,500

3,255,000

5.021,100

3,097,500

3,696,000

3,864,000

3,906,000

Total net return

724,500

700,000

-485,100

-97,500

-840,000

168,000

-52,500

Return per year

1,725

1,667

-1,155

-232

-2,000

400

-125

Note: 420 is lowest common multiple of crop life cycle (4,3,10,28) and assume that time value of money is ignored (no discount cash flows to present value).From exhibit 11, Net return from Cane also get highest net present value for period from 1998 to 2015 with nominal discount rate 13.3% per annum and opportunity cost of labor is $1.00/day: NPV Cane +21,599; NPV pineapple +3,865; NPV coffee -9,998; NPV rubber -20,664, NPV combo A -12,777; NPV combo B +2,555, NPV combo C -799 (US$ in thousands).- Other benefits: One of three parts of NATL's development plan is an outreach program to help local farmers to convert to cane production which means that their sugar cane will have more added values because cane production can sell with higher price and the farmers can use their products.The company expected to employ 725 people, provided in-house training so many members of the farmer family can become workers, educated ones can also become staffs. This will create many good affects to the local farmers.The project would need roughly 300 lorries during the harvest season so some farmers can borrow money from local banks to buy new haulers to transport cane to the factory.With many benefits as above, before converting to sugar cane the local farmers need to understand/know the risks of converting:The first risk is to avoid converting too much from the beginning of the project. The factory will reach full capacity by the 2002/2003 harvesting season, so for the period from 1998 to 2002, the numbers of hectares convert to cane...

Find Another Essay On Project Financing Case: “Nghe An Tate & Lyle Sugar Company (Viet Nam)”

Ho Chi Minh: Rattled Genius or Dictatorial Lunatic?

4736 words - 19 pages founded the Viet Minh, an acronym for the Vietnam Independence League, from which he derived his nom de guerre, Ho Chi Minh--roughly "Bringer of Light."What he brought was a spirit of rebellion--against first the French and later the Americans. As Ho's war escalated in the mid-1960s, it became clear to Lyndon Johnson that Vietnam would imperil his presidency. In 1965, Johnson tried a diplomatic approach. Accustomed to dispensing patronage to

Business Environment Essay

2858 words - 11 pages as well as Vietnam's economy. We invest in local communities and contribute to local economic development. We must always follow the government regulations, such as labor protection law, commercial law…. We support local communities, pay taxes, paper work and licensing.Environment: Nowadays, Human have destroyed environment too much, make environments are polluted. Protecting environment is an important mission in Viet Nam. So we have to

compare and contrast about customs between China and VietNam

968 words - 4 pages Vietnam is a country that has long history. Chinese dominated Vietnam for 1,000 years. The French also dominated the country for 61 years. However, Vietnam gets most influence from China, which is one of the most powerful countries in the world after America. Although Viet Nam gets most influence from China but Viet Nam and China also have very special customs that exist in each country. This essay will compare and contrast their religion

Vietnamese History

4711 words - 19 pages but sporadic. The most famous early revolt took place in AD 39, when two widows of local aristocrats, the Trung sisters, led an uprising against foreign rule. The revolt was briefly successful, and the older sister, Trung Trac, established herself as ruler of an independent state. Chinese armies returned to the attack, however, and in AD 43 Viet Nam was reconquered.IndependenceThe Trung sisters' revolt was only the first in a series of

The History of Modern Wars

733 words - 3 pages perception during times of war. We’ll dissect the role of war propaganda, and the means by which the military, and the media, cooperated in making the war presentable to the American public, by referring to Why Viet Nam (Brewer chapter 5) and Operation Iraqi Freedom (Brewer chapter 6). “If freedom is to survive in any American hometown it must be preserved in such places as South Viet Nam” President Lyndon B. Johnson, 1965 (Brewer 179). This is the

Cold War

2221 words - 9 pages war. Since the War of 1812, America was an extremely patriotic nation and stood behind our military at all costs; it became popular during the Viet Nam war to protest against the war, and even against the soldiers who were just doing what was required of them in fighting that war. We, as a nation, have never really gone back to the more patriotic nation that existed during the World Wars and even the Korean War. The Viet Nam conflict itself

Comparison: Saccharin, Aspartame, Sucralose, Sodium Cyclamate

2390 words - 10 pages Sugar is is a spice that makes things you eat sweet. There are many of them that do different things and have different standards of sweetness. Some are so sweet that they make you gain weight. And some are so thick they take two days just to fully leave your mouth these are four of these sugars. Saccharine,Aspartame,Sucralose,and Sodium Cyclamate. Saccharin is an artificial sweetener. The basic substance, benzoic sulfilimine,has effectively

The Costs of Doi Moi

988 words - 4 pages the mid 1980s was in the region of 70-80%. Since the introduction of Doi Moi in 1986, the poverty rates have been driven down to 58% in 1993, and an even more desirable 15.9% in 2006. While this seems to suggest that most of the people have benefited from the economic growth, these figures do not reflect the distribution of the benefits. According to Viet Nam's General Statistics Office, the rural population in Viet Nam as of 1998 was 76.85% out of

Obedience to Authority

1132 words - 5 pages During the Vietnam War, a unit of American Army soldiers invaded My Lai a South Vietnamese hamlet resources contended was the enemy Viet Cong stronghold. That day in May 1968 an estimated 347 unarmed civilians “including women and children” died as a result (Cantrell, 2007). My Lai became one of the most controversial situations of the long Viet Nam War. When the truth came out due to letters to the government describing the horror, two

Financial Analysis of Greencore

3309 words - 13 pages 2002.The origins of Greencore Group stem from the Irish Sugar Company and in the first stage of its existence the Group was largely focused on the processing and supply of ingredients on an international basis. As part of its involvement in helping to improve crop yields, the Group also developed into the agribusiness sector although more recently it has disposed of some of these businesses.The Group has strong market positions in sugar and malt

ACE Life Vietnam

3229 words - 13 pages their domination of the market segmentI. Company overview:ACE Life is an insurance company limited of 100% American investment, and a part of the ACE group which provides a diversified range of products and services in more than 50 countries.In Viet Nam, ACE Life officially participated in the insurance industry on 16, March 2006 and now becomes one of the most successful life insurer in Viet NamThe company leads the Vietnamese life insurance market

Similar Essays

This Project Is Proving An Online Solution For The Consultant Company To Change The Process That They Are Currently Have

5806 words - 23 pages having. This website will contain the supplier information, order form for supply and with the requirements that the company specified.2.0 Project Management2.1 Project ApproachesThere are three types of approaches that are commonly used. Each of which carry its pros and cons. It is difficult to say which is the best one. Before this, we need to gain an understanding of the principle underlying them.Type 1: Waterfall Model with

Principles Of Ethics Case Project: An Enquiry Concerning The Principles Of Morals

1554 words - 6 pages and subject to constant change also. At one moment, the criminal could feel sympathy for his victims and decide to spare a life, as in the recent case of Atlanta's courthouse killer Brian Nichols who had killed 4 or 5 people, but somehow felt sympathy for a hostage and let her talk herself free without being harmed. (13wham.com) What stopped an enraged and desperate killer from killing again? This is an extreme case, but the point is clear

Marketing Case Study On Clust.Com, An E Business Company, 3 Strategic Alternatives With Swot, Porter's Five Forces Provided

779 words - 3 pages OPERATIONAL LEVEL CASESituation AnalysisEnvironmentGrowing internet usersEconomical trendIndustryEntry: High, it's easy to start a web-based company. Low capital cost is required.Substitute: Moderate, group buying and creation workshop is a new market. People can buy their products but to the extent where it can be discounted and unique.Competition: Moderate, although there is heaps web-based selling business. The uniqueness of group buying and

Viet Tien Essay

2442 words - 10 pages higher market share. By targeting the new market with a new style of uniform will hopefully help Viet Tien have an early start in establishing brand loyalty with these future potential customers.ReferencesViet Tien's Website, retrieved by may 14th 2009, http://www.viettien.com.vn/modules.php?name=Content&opcase=viewcontent&mcid=98&menuid=515.Exporters lay ground work for 2009, Retrieved by May14th 2009, " http://baovietnam1.wordpress.com/2009/01/07/local-company-gets-consulting-contract-for-thermo-electric-project/ Page | PAGE \* MERGEFORMAT 1 _1333134658.ppt * Marketing Action Plan - 2009 *