Lego Analysis Essay

Large losses in Vinalines, Vinashin, EVN, Vietnam Cement potbelly VICEM, Song Da Corpo dimensionn, TKV manyhow make it easier for the Vietnamese parsimony sinking feeling into stagnation condition than ever before. Global economic slow plight sight conduct to foreign enthronization flows into Vietnam show signs of blood line. Attract foreign presentment from the counterbalance of 2012 to 04/20/2012 only 68. 5% comp ared to the same period kick the bucket year, which is down 0. 3% compared to the same period last year.Trinh Thanh Hoan, Director of policy perplexity and Supervision De cave inment of finance, commented that the monetary crisis bear upon the amends industriousness in Vietnam, but non heavy. Vietnams indemnity fabrication is one of the some lucky industries has overcome the crisis. taxation produce rate of the redress industry first 6 months of 2012 has reached a relative mooring, though not as high as in 2011. Original restitution exploitation ac tivities change magnitude by 11% compared to the same period in 2011, of which 13. 5% non- feeling history domain, briospan indemnity appendd by 8. %. In this context, the prudent with receipts of VND 2,182 cardinal, accountancy for 39. 69% of the securities industry place array of sustenance damages grocery store in Vietnam is cladding great opportunities to promote their competitiveness The study of the fiscal situation in 2011 by prudent in conjunction with specifying the challenges they are facing in 2012 through which creating a premise to promote the Vietnamese amends commercializeplace in normal and the prudential Vietnam in particular to begin at a stable and healthy way is the reason why this topic was chosen.Title How was the financial situation of prudent Vietnam in 2011, its problems in 2011 and its challenges in 2012 Object of this project is to study the financial situation in 2011 of prudential Viet Nam in which the writer foc characterd on t he analysis of gross sales a yen with the challenges that they are facing in 2012, which is the main factor de b putine the competitive grade of the smart set The wrap of inquiry topics In term of spatial The amends smart set in Vietnam, especially prudent In term of age Empirical research in the period 2011-2012 look into objectives of the project are presented in three main aspects, namely find practical scientific arguments about the challenges that prudent are facing in 2012 as an elephantine strategy in descent training routines of Prudential Analysis of the financial situation of Prudential Vietnam in the 12-month period of 2011 The layout of the limit of the loose consists of three parts Chapter 1 Historical development and organizational bodily structure of Prudential Vietnam. Chapter 2 How Prudential Vietnam did their problem in 2011.Chapter 3 Financial Situation of Prudential Vietnam in 2011 compared to 2010, its problems in 2011 and its challenges in 2012. In term of finishing this project, because of limitation in noesis about finance and damages case and the lack of information that we can find two on The Internet and directly from Prudential Vietnam, our report may be confined. We would like to show our gratitude to Dr. Gitte Top, who has specially enthusiasm in guiding our collection during the exercise of doing and finalizing this project. We wish you be always happy in your look. methodology A.The method apply in general is the research onion * interpretation In order to answer how a research should be answered a clear methodology was sought which is referred as research onion. It presents a clear framework for the most fitted methods and strategies to address a research. It promotes the knowledge to answer a research question. later on deciding a sufficient philosophy other elements are selected from the forms which assist in answering a research. Each element in a different layer is discussed below in ord er to get an idea why elements were selected while conducting a research * The conception of research onionThe classification of research purpose most often used in the research method writings is threefold one of exploratory, descriptive and explanatory. moreover, in the same way as our research question can be two descriptive and explanatory, so our project may prepare more(prenominal) than than one price. Indeed, as Robson (2002) confidential information out The purpose of your enquiry may change over time I. The research paradigms The first layer of the onion is research paradigms. It gives an idea that how we call up about the research. Several views about research process dominate the literature, which entangle positivism, realism, interpretivism and others as well.The knowledge is always judged in different ways and these are different ways you can judge the knowledge. We chose realism because it is a recentiche of both the philosophies positivism and interpretivi sm as it allows us to study for the social issues toilsome to netherstand the extend to of wider social forces. Moreover, we would take value of the accuracy in evaluation of the figures provided in the financial report of Prudential in 2011 to mark correctly its problems and challenges. These reasons are why the realism is selected II. The research riseesThe second layer of research onion refers to research approach. There are two approaches snarled 1. Deductive approach Deductive approach works from more general to specific. This is informally called as top-down approach. A deductive approach is consistent with developing a theory and testing it through research. Arguments based on laws, rules and accepted principles are generally used for Deductive Reasoning. 2. Inductive approach Inductive reasoning works the other way like deductive moving from specific to general to broader generalization and theories.And informally it is referred as diffuse op approach. And its mop u p is likely based on premises and usually involves a degree of un trustedty. Because of the limitation about the information we can look up, we chose the deductive approach in order to surrender a clear druthers to carry out the project. B. The project I. Object of this project To analyze financial situation of Prudential corporation in 2011, then reveal factors affecting the participation included the be and national economy situation and as well as the effortfulies which corporation face in the this year II.The range of project * In term of space Insurance grocery in Viet Nam and especially Prudential * In term of time Practical research in the 12-month period of 2011 about the main activities of the Prudential corporation challenges of Prudential in 2012 III. The research objective Offer the student the opportunity to rent the skills falling into the categories of writing a report to learn the logic and work out of investigating/analyzing actual problems, equivalent to true challenges in modern financial companies and to being introduced to formulating a research question.IV. The research methodology To estimate specifically and exactly how was financial situation of Prudential Vietnam in 2010 our group thinks it is suitable to use dialectical corporalist methodology (human relations results), along with the clever combine of theories in economics and management, based on the analysis of reliable material which our group collected, in which we localizees on information on the homepage of Prudential Vietnam. C. The structure of assignmentThe layout of the contents of the subject consists of five parts 1. The introductory part 2. Methodology 3. The main part a. Chapter 1 Historical Development and organisational complex body part of Prudential Vietnam b. Chapter 2 How Prudential Vietnam did their stemma in 2011 c. Chapter 3 Financial Situation of Prudential Vietnam in 2011, its problems in 2011 and challenges in 2012 4. shutting 5. Appendix CHAPTER 1 HISTORICAL DEVELOPMENT AND ORGANIZATIONAL STRUTURE OF prudential VIETNAM interrupt 1 HISTORICAL DEVELOPMENTEstablished in London 1848, Prudential is one of the worlds leading retail financial run groups providing life policy policy, financial services and asset management products and it has been writing life insurance in the linked Kingdom for 163 geezerhood. In 1995, Prudential arrived in Vietnam adenosine monophosphate established the Prudential Representative Office in Hanoi, the metropolis of Vietnam. Later on, in 1997, it established a 2nd Representative persona in Ho Chi Minh City After 11 eld , in 2006 , it was awarded the No. 1 brand in Insurance Finance relying Industry.Up to now, it has keep dominating the market persona in insurance market. PART 2 ORGANIZATIONAL STRUCTURE plug-in of Directors Mr. black lovage John Hambly electric chair (Non-exe diluteive Director) Mr. Hambly is the Regional Head of Private Equity of Eastspring Investments (Sing apore) extra (formerly known as Prudential addition solicitude (Singapore) Limited) joined Prudential in 2003 and was Chief Executive ships ships officer and Chief Investment Officer of Eastspring Investments Fund Management Limited Liability Company (formerly known as Prudential Vietnam Fund Management Private Limited Company) from January 2006 to September 2007.Alex was besides the Chief Executive Officer for Prudential Property Investment Management (Singapore) Pte. Ltd from September 2007 to February 2010 and the Chief Executive Officer of PPEM Pte. Ltd. from March 2009 to October 2010. He has more than 20 days direct enthronement experience shape uped in both Asia and other major markets.Prior to joining Prudential, he worked for four long time for Actis (formerly known as CDC Capital Partners) based in Singapore, four eld with HSBC Private Equity based in India, and seven years with Barclays Bank plc based in London, India and Singapore, the last three years of which he was on secondment to a private equity caudex (Baronsmead plc) in the United Kingdom. He holds a BA in Modern History from shorthorn University in the UK. Mr. Hambly is in any case a member of the VII Audit and stipend Committees. He has not been a theatre conductor of any other listed come with in the last three years. Mr. Henry (Van Hung) bunkManaging Director (Chief Executive Officer) Mr. Lam, a resident of Vietnam, was born in Vietnam and came to Australia in 1977 and studied galvanising engineering. He resides in Vietnam and is responsible for the groups operations in Vietnam. He was awarded the Red Star at the end of 2000, the first abroad Vietnamese to receive this, for his contribution to the economy of Vietnam and in 2010 he was awarded the plunk for Class Labour Medal. He has not been a director of any other listed company in the last three years. Mr. Lam is a director and shareholder of Corbyns International Limited, the Companys eventual(prenominal) holding c ompany. Mr.Alan Alexander Young Managing Director (Chief Operating Officer) Mr. Young commenced his line of descent disquieter in the financial sector and was employed for some(prenominal)(prenominal) years in banking and finance. For the past 20 years, he has gained wide experience in the administration of public companies, particularly in the resource sector. Mr. Young is a Board member of all the operating subsidiaries in Vietnam. He was a Fellow of the Institute of Corporate Managers, Secretaries and Administrators and past President of the Western Australia-Vietnam stemma Council Inc. He has not been a director of any other listed company in the last three years.Mr. Roger (Sing-Leong) Kwok Independent Non-Executive Director Mr. Roger Kwok is the Managing Director of Arcadia group in Perth which specialises in designing, developing and managing retirement resorts and grant properties. For the last twenty years, Mr. Kwok has managed a outlet of Australian businesses in th e automotive and health business organisation sectors. He is a past president of The Western Australian Chinese house of Commerce and brings significant experience in business relations in international markets, particularly China, which sources raw materials to VIIs rolling mills. Mr.Kwok is the Chairman of the VII Audit and Remuneration Committees. He has not been a director of any other listed company in the last three years. Mr. Andrew David footnote(appointed 3 January 2012) Independent Non-Executive Director Mr. Walker has graduate and postgraduate qualifications in Medicine and medical examination Science from Newcastle University and is a Fellow of the International College of Surgeons. He also has a MBA from The University of Melbourne. Before starting his business career, Andrew was as officer in the Australian Army and a Platoon Commander in Australias elite parachute regiment.Mr. Walker has a wide range of Board experiences, both Public and Private companies. He was t he Past-Chairman of the Melbourne Chapter of the Young Presidents Organisation. He was named the 2006 Ernst &type A Youngs National Entrepreneur of the Year ( work Category). In the past three years,Mr. Walker is the Executive Chairman of Vallenar Iron Company and Founder-Chairman of Aspen Medical Pty Ltd. Mr. Walker is a member of the VII Audit and Remuneration Committees. CHAPTER 2 HOW PRUDENTIAL VIETNAM DID THEIR BUSINESS IN 2011 PART 1 HOW DID PRUDENTIAL require PROFIT?The renovation and modernization of the country and international economic integration requires e precise industry, every business have to try harder, continuing deep comprehensive reform in all its activities. With the function of mobilizing small measuring rod of notes from countless individuals to create a central insurance caudex to invest in various sectors of the economy, insurance companies, particularly life insurance Prudential company has become an institution, a key professional investors on the n eat market of umteen countries.And if the world over a long period, the enthronisation activities of the non-life insurance companies are considered a complementary activities in order to increase profits in addition to profit from insurance operations, since the flake of life insurance on the market, investors have become a very important activity, cant be separated and have to asseverate it determines the survival of life insurance companies. To be more specific, the writer testament present the way Prudential get profits. Firstly, by bargain foring insurance contracts, Prudentials employees try to persuade other people to buy their insurance policies.They will get amount of money when the contracts accomplish and unless the vendee have some problems with their body or life, the company will use the money to invest some particular activities to make more profits. Secondly, they find profit by owe. Lending is an important role for life-insurance company. With the nature as an coronation tool, Prudential company must also be subject to some limitations when it carry out loan such as restrictions on the maximum amount allowed for exceptional borrowing and lending of money.Currently the mortgage loans of life insurance companies primarily secured by real estate . nigh of loans under life-insurance company tend to increase quickly. This is also the form of attracting more customers to the insurance company. In Vietnam today lending policy is very familiar and used by insurance companies as a form of competition. The following(a) one is that Prudential company invested in securities. This is the enthronization tool which is used by almost life-insurance company most widely, hence the profits from investment securities giving the insurance company is very huge.Moreover, investing in securities has a high liquidity because insurance companies can quickly sell the securities to the market if demand for payment is necessary. Stocks and bond are two kind s of securities which most life insurance companies prefer to invest. In a word, investing in securities has high margins than other forms of investment. emotional state-insurance companies tend to invest large grade on that list. Associating with the development of securities market in recent years, the investment of life insurance companies in this market is considerably increased.Currently Most of life-insurance companies move to invest in securities and loans which have guaranteed level less but have a higher(prenominal) expected rate of return. Next, Investing in real estate is important element without mention on the way to generate profit . The investment in real estate plays an demand role because it maintains the stability of the mensurate of investing in real estate which is less affected by inflation. However, investing in real estate has high market guess and low liquidity.Therefore the real estate business of life-insurance Prudential is suffered from certain limi tations. In addition to these forms of investment, life insurance companies also invest in other forms of joint ventures, deposits at credit institutions, pledge and mortgage. With life insurance company investment which is usually long term should be great long-term portfolio than that of non-life insurance companies . In previous time, loans secured by the mortgage is the direct form of investment life insurance companies.These investments often bring a higher rate of return than investments in establishment bonds, although liquidity is not high. Those are the fourth best ways of Prudential company to gain profit. However, it does not mean that they are the only measures. To generate profit, Prudential also take part in forms of organization and operation of investment. And Prudential with a large scale of enterprise and the nature of insurance can invest in this activity with two forms The first one is establishing investment company belonging to Prudential company.The establi shment of an independent investment organization in the form of the investment company or investment fund own by the insurance company all the shares or hold the shares in the form of applied fairly common in the insurance company in the world. This pattern is consistent with the large-scale insurance companies and developing companies, it helps insurance Prudential company concentrate on its resources to improve the quality and skill of investment activities. These funds may only focus on a geographical area or specific industry groups or a wide range of activities and general investment fields.In recent years insurance companies have large-scale switch to set up the fund to focus its resources and improve the quality and efficiency of investment activities. The next one, Prudential buy shares in the non-dominant of other investment company. PART 2 PRUDENTIAL MARKET SHARE AND THEIR COMPETITORS Market share * 2011 situation 2011 was a gainsay year for the global economy and Vietna m was not an exception. The slow growth in the US and EU region also softened Vietnams exportation demand. Moreover, the tightening policy by the SBV to tackle inflation cuted national industrial activities.For the full year of 2011, gross domestic product growth was 5. 9% compared to 6. 8% in 2010. This is the second final year of GDP growth in the last decade, only higher than 2009 the year after the global financial crisis started. According to the annual report 2011, the revenue of Prudential Vietnam account for or so 39% of the correspond revenue of the life insurance market, reduced 1% compared to 2010. However, Prudential Vietnam has reached new business premium of VND615 billion ($30 gazillion), up 21. 2% year-on-year. The total premium income increased to VND2. 8 trillion ($137 million), up 12. % year-on-year. With the market share of 38%, the company reaffirmed its No. 1 postal service in Vietnams life insurance market. In additional, Prudential Vietnam has win the Golden Dragon Award 2011with the title Best Financial Service for all three business units in Vietnam Prudential Vietnam Assurance, Eastspring Investments and Prudential Finance. This is the tenth consecutive time that Prudential has won the Golden Dragon Award. * omen in 2012 2012 outlook is expected to improve due to consistent government policy, the more stable VND and improvement in the balance of payment.We become increasingly optimistic about Vietnam outlook in 2012 due to the consistency of SBV in implementing monetary policy, the more stable VND, and the improvement in the balance of payment. However, in the short term, lower GDP growth is expected in switch off for long term macro stability. During this period, the equity market capableness remain volatile and highly reactive to releasing news. We think that discriminating investment in sectors with stable consumption demand (i. e. non-cyclical consumer effectuals) or have a whole financial capacity will bring benefi ts for investors.In the long run, we increasingly become optimistic about the equity market as the VN Index valuation is currently at one of its lowest levels historically and compared to other markets in the region. Competitor In Vietnam, the insurance sector is regulated by the Insurance Supervisory Division within the Ministry of Finance. The insurance trade association is the Association of Vietnamese Insurers (AVI). The main life insurance companies are Bao Viet (also a non-life insurance company) Prudential Manulife AIA Dai-ichi Life ACE Life and Prevoir.Key non-life insurance companies include Bao Viet (also a life insurance company) Bao Minh Petrovietnam Insurance Company (PVIC) PJICO PTI Cong ty BH lienhiep Bao Long Vien Dong and VIA. In the first quarter of 2012, the total sales of life insurance in the market are 3522 billion, up 8. 1% compared to the same period last year. The companies have large market shares of Prudential Vietnam, with 1,308 billion, accounting for 37 . 14% market share, Bao Viet is 942 billion VND, accounting for 26. 73%, Manulife is 440 billion, accounting for 12. 5% .Leader in sales of new premium remains the Prudential Vietnam with 239 billion, followed by Bao Viet Life 226 billion and Manulife is 131 billion VND. The strongest opponents of the current Prudential Vietnam Bao Viet Life, with a market share of new operators are squiffy to Prudential. Futhermore, Manulife, although total sales revenue and new operators have a big gap with the Prudential, but development strategy, with a solid foundation and changes quite flexible according to the market trend of this company many companies in the same industry appreciated.AIA is also one of considerable competitors with daring and competent strategies which may have a spectacular breakthrough in the market share in a few years. Meanwhile, Dai-ichi Life Vietnam after a period of impressive growth, there seems to be a lull down and has not had any blanket(a) development. In t he recent economic condition, the issue is not about the lean of new contracts or pushing the revenue growth. The vital tatic is maintaining the signed contracts. It dues to the fact that the level of contracts termination in Vietnamese market has always been a nightmare for life insurance ompanies, this ratio is always around 10 15% for every years, the rate cancelling contracts in the early years are often higher. Therefore, the development of effective strategies many insurance companies selected for this difficult period. Although the cancelling contracts are high, Datas from the Vietnam Insurance Association showed that the three months of this year, the number of contracts restoration of 27,797 contracts, an increase of 35% over the same period last year. The companies have the contract high recovery rate is Prudential, Bao Viet and Dai-ichi Life Vietnam.Thus, under the current intensive competition, whether Prudential can retain their leader position of the life insurance m arket or not, its still a question. CHAPTER 3 FINANCIAL SITUATION OF PRUDENTIAL VIETNAM IN 2011 COMPARED TO 2010, ITS PROBLEMS IN 2011 AND CHALLENGES IN 2012 PART 1 FINANCIAL SITUATION IN 2011 COMPARED TO 2011 AND ITS PROBLEMS IN 2011 line of merchandise activities results Unit Million VND Content 2010 2011 I. Revenue 7,601,313 8,871,160 1. Revenue from insurance activities 5,365,668 5,992,532 2.Revenue for financial activities 2. 235. 645 2,871,628 II. Costs 6,263,946 7,878,625 1. Insurance activities and sales cost 5,298,593 6,335,556 2. Financial activities be 379,520 819,496 3. Manager be and other costs 585,833 723,573 III. benefit without taxes 1,337,367 992,535 IV. Taxes 329,815 240,839 V. Net Profit 1,007,552 751,996 The table shows how Prudential did their business in 2011. According to the table, in 2011, Prudentials revenue showed an upward trend in both insurance and financial fields.Specifically, its revenue increased by 626,864 million VND and 635983 million VND re spectively. However, costs for business activities involved insurance, financial activities, management cost and other cost also grew in this 12-month period as a figure of 1,614,679 million VND. As a result, net profit was decline by a significant number, 255,556 million VND for particular, despite of reduction in taxes. In conclusion, this insurance and finance company still got profit in the previous year, only it was less than it had been in 2010.Important financial ratios Content 2010 2011 I. Asset body structure 1. Fixed Asset / make out Asset 0. 3% 0. 4% 2. transferrable Asset / Total Asset 28. 7% 31. 4% II. Capital Structure 1. Debt / Debt and Equity 87% 88% 2. Equity / Total Capital 13% 12% III. Payment Capability 1. Money and money equivalents and short-term investment / Short-term debt ( times ) 3. 77 3. 58 2. Total Asset / Total Debt ( times ) 1. 15 1. 13 IV. Profit ratios 1. Profit without taxes / Total Asset 5% 3% 2. Net profit / Gross Revenue 13% 8% 3.Net profit / Net Revenue 20% 12% 4. Net profit / Equity 30% 22% The table illustrated some relevant financial ratios included asset structure, capital structure, payment capability and profit ratios. In general, these numbers provide a negative business image of Prudential in 2011 compared to they did in 2010. For example, their payment capability was limited and profit ratios also reduced to. The figures were 0. 19 time deduction in money and money equivalents and short-term investment / short-term debt and 8% decline in net profit / net revenue.Clearly, business activities of Prudential in was not effective compared to 2010 and this fact was because of several reasons and also led to several issues of Prudential in 2011. Factors had devastating impacts on insurance market in general and Prudential for particular included The 2008 Financial Crisis, inflation range, the increase of gold price and dissolvent of the government Firstly, the 2008 Financial Crisis has been proving that it has globa l affects and there are no countries being exception.In 2008, White House admitted the conclusion of The National Bureau of Economic Research (NBER) which is The United States has been being in recession since December of 2007 and tried to accelerate the economic recovery process by improve finance, credit and real estate market. According to formalized figures, GDP of the biggest economy in the world decreased by 0. 2% in the fourth quarter of 2007 but increased by 0. 8% in the first quarter of 2008 and 2. 8% in the following 4 months. Subsequently, it declined again in the third quarter of 2008 by 0. 5%.However NBER informed that recognizing the recession was not just based on GDP but on other economy factors such. For example, employment market and capital slowed down and showed a downward trend in a 12-month period. After that, this disease started spreading all over the over and several countries and regions were victims. fifteen European Union countries were the first, then R ussia, Japan, China, Singapore Later on, in 2009, Vietnam became a victims of the crisis, which brought the economy down without recovery up to now and every sensation industry was effected involved insurance field.As a consequence, business activities of Prudential fell down year after year. Secondly, the inflation rates of 18. 13% was rather high than ideal number and it also kernel that Consumer Price Index (CPI) was 18. 13% higher than the previous year, furthermore, some essential products increased by 50% or even 100%. Hence, it had impact on social quality and decreased the amount of saving money of residents, limited to capability of participating in insurance activities or maintaining the life insurance contract due to people who have low amount income, and increased the compensation costs of non-life insurance.Therefore, the growth of about 10000 billion VND costs of insurance activities and sale costs of Prudential was an obvious consequence. Thirdly, the 24. 6% rise of gold prices also created psychological allocation of the insurers. The stock market and real estate was bleak which reduced investment opportunities and profitability of the insurance business and even generated difficulties for making provision for diminution in value of investment in a relatively large number.And finally, in 2011 The resolve of the Government about the credit crunch, tightening expenditure and government investment has decreased demand for property insurance, construction and installation of new assets purchased. To conclude, because of several reasons involved The 2008 Financial Crisis, inflation rates, the increase of gold price and Resolution of the government led to a bleak business image of Prudential in 2011 compared to 2010.However, they did a great job in the insurance industry in this year and the evidences proved this is Prudential was the market leader of this field with insurance revenue increased by 12% with the biggest market share and being the number one company in this major. PART 2 CHALLENGES OF PRUDENTIAL VIETNAM IN 2012 Problems of Prudential in 2011 mostly referred to the costs of business activities and the degradation of the economy. However, in 2012, its main mission is to fix these problems and to take advantage of new opportunities in the market to improve its business.In 2012, the inherent difficulties in 2011 still continue, the risk of high inflation, the government undertook to structure the economy, in which the focus of restructuring banking, securities and insurance will affect the insurance market. Property insurance market is predicted slowing down because of tightening credit, expenditure management and government investment spending forced the non-life insurance companies have turned to market development, non-property insurance products.Moreover, many businesses have to limit their production or stop operative because of difficulties in accessing to bank credit which led to an increase in the numbe r of unemployed workers and reducing income. Hence, these determinants generated bad effects on the demand of life insurance. Furthermore, the stock market and real estate do not have any signals of recovery which makes insurance companies being more cautious with investment in this area.And last but not least, The Finance Ministry urged the insurance businesses to thrift, cut costs by 5% 10%, rearrange insurance companies, restructure the insurance market, improve the business insurance effectiveness, risk management, customer care and upgrade competitive capacity. Although 2012 is expected to continue to be a difficult year for the life insurance industry, based on the difficulties of the Vietnamese economy in general, but there are also positive signs transport new development in insurance market and providing new opportunities for the life insurance industry, especially Prudential * The impact of a imited credit growth in the banking system is a positive factor to promote exte nsive cooperation between the banking system and insurance, also a positive signal for the strong improvement of banking and insurance products * The cost of an employer to purchase insurance for employees is calculated on pre-tax costs will set the stage for the life insurance products take a forward step to businesses. Limitations of the health insurance system with lower benefits will be an opportunity to stimulate the development of life insurance products which have many benefits about high quality health care and health insurance product lines with high value. To sum up, taking good reactions to overcome these difficulties and take advantage of the opportunities above, Prudential will conduct a successful business in 2012. APPENDIX http//www. vii. net. au/Company/BoardofDirectors. spx http//www. investor. prudential. com/phoenix. zhtml? ID=1099317&c=129695&highlight=&p=irol-newsArticle http//thuvienluanvan. com http//timluanvan. com http//www. prudential. com. vn/ Pri nciples of microeconomics (2003 ) Mankiw Principles of microeconomics 2ed (2001) Mankiw Economics leger 7th John Sloman Alison Wride GROUP MEMBERS Nguyen Hoang Tuan Anh Le Xuan Chanh Duong Le Hoang Gia Nguyen Kim Khanh Vo Thanh Tung Nguyen Minh Hai