Lego Analysis Essay

Large losses in Vinalines, Vinashin, EVN, Vietnam Cement Corporation VICEM, Song Da Corporation, TKV somehow make it easier for the Vietnamese digestnce sinking into stagnation condition than ever before. Global economical slowdown conduct to unusual investiture flows into Vietnam show signs of decline. Attract foreign enthronisation from the beginning of 2012 to 04/20/2012 provided 68. 5% comp ard to the precise(prenominal) halt furthest category, which is down 0. 3% comp ard to the same period ending course of instruction.Trinh Thanh Hoan, coach of indemnification counsel and Supervision Department of Finance, commented that the pecuniary crisis affecting the damages application in Vietnam, except non heavy. Vietnams indemnity industry is angiotensin-converting enzyme of the a couple of(prenominal) lucky industries has oercome the crisis. revenue enhancement crop prize of the am abolishs industry head start 6 months of 2012 has reached a relative s ituation, though not as graduate(prenominal) as in 2011. Original amends exploitation activities subjoind by 11% comp argond to the same period in 2011, of which 13. 5% non- bearing sector, life amends change magnitude by 8. %. In this context, the prudent with tax revenue of VND 2,182 billion, accounting for 39. 69% of the trade place array of life policy policy market in Vietnam is facing great opportunities to labour their competitiveness The bathvass of the financial situation in 2011 by prudential in alignment with specifying the ch every(prenominal)enges they are facing in 2012 through with(predicate) which creating a premise to promote the Vietnamese damages market in general and the prudent Vietnam in grouchy to develop at a stable and healthy room is the reason wherefore this topic was chosen.Title How was the financial situation of prudential Vietnam in 2011, its problems in 2011 and its ch eachenges in 2012 Object of this twitch is to film the fin ancial situation in 2011 of prudential Viet Nam in which the writer focused on the analytic thinking of gross revenue a retentive with the challenges that they are facing in 2012, which is the of import factor determining the competitive position of the comp both The range of look into topics In term of spatial The policy comp some(prenominal) in Vietnam, oddly prudential In term of measure Empirical interrogation in the period 2011-2012 look for objectives of the project are presented in three main aspects, namely Develop practical scientific arguments about the challenges that prudent are facing in 2012 as an measurable strategy in byplay development issues of Prudential Analysis of the financial situation of Prudential Vietnam in the 12-month period of 2011 The layout of the contents of the subject consists of three split Chapter 1 historical development and shapingal structure of Prudential Vietnam. Chapter 2 How Prudential Vietnam did their worry 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 knowledge about finance and amends field and the lack of information that we shadower find both on The Inter utmost and directly from Prudential Vietnam, our brood may be confined. We would like to show our gratitude to Dr. Gitte Top, who has specially enthusiasm in guiding our group during the answer of doing and finalizing this project. We wish you be al sorts blissful in your life. METHODOLOGY A.The method used in general is the search onion * Definition In order to answer how a interrogation should be answered a clear methodology was sought which is referred as inquiry onion. It presents a clear framework for the to the senior high schoolest degree suitable methods and strategies to denotation a explore. It promotes the knowledge to answer a interrogation question. after(prenominal) deci ding a suitable philosophy other elements are selected from the layers which assist in answering a research. Each element in a divergent layer is discussed below in order to piss an idea why elements were selected while conducting a research * The purpose of research onionThe compartmentalization of research purpose most frequently used in the research method literature is threefold unmatchable of exploratory, descriptive and explanatory. However, in the same path as our research question flush toiletful be both descriptive and explanatory, so our project may bring more than one price. Indeed, as Robson (2002) point out The purpose of your enquiry may lurch all over time I. The research paradigms The first layer of the onion is research paradigms. It gives an idea that how we think about the research. Several views about research process dominate the literature, which include positivism, realisticity, interpretivism and others as well.The knowledge is al slipway judged in assorted ways and these are different ways you can judge the knowledge. We chose realism because it is a mixture of both the philosophies positivism and interpretivism as it allows us to study for the social issues trying to understand the intrusion of full(a)-cutr social forces. Moreover, we would take advantage of the accuracy in evaluation of the figures provided in the financial report of Prudential in 2011 to see correctly its problems and challenges. These reasons are why the realism is selected II. The research approachesThe second layer of research onion refers to research approach. There are two approaches involved 1. deductive approach Deductive approach plant life from more general to particular proposition. This is informally called as top-down approach. A deductive approach is consistent with developing a theory and testing it through research. Arguments found on laws, rules and accepted principles are generally used for Deductive Reasoning. 2. Inductive appr oach Inductive reasoning works the other way like deductive moving from specific to general to broader generalization and theories.And informally it is referred as bottom op approach. And its conclusion is likely based on premise and usually involves a degree of uncertainty. Because of the limitation about the information we can look up, we chose the deductive approach in order to dupe a clear orientation to carry out the project. B. The project I. Object of this project To analyze financial situation of Prudential corporation in 2011, hence reveal factors affecting the order include the cost and national miserliness situation and as well as the difficulties which corporation face in the this course of study II.The range of project * In term of space restitution market 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 resear ch objective Offer the visualiseer the opportunity to train the skills falling into the categories of writing a report to learn the logic and practice of investigating/analyzing actual problems, equivalent to current 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 materialist methodology (human relations results), along with the clever combination of theories in economics and precaution, based on the analysis of reliable material which our group collected, in which we focuses 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 Organizational Structure of Prudenti al Vietnam b. Chapter 2 How Prudential Vietnam did their railway line in 2011 c. Chapter 3 Financial Situation of Prudential Vietnam in 2011, its problems in 2011 and challenges in 2012 4. Conclusion 5. Appendix CHAPTER 1 HISTORICAL DEVELOPMENT AND organizational STRUTURE OF prudent VIETNAM better 1 HISTORICAL DEVELOPMENTEstablished in London 1848, Prudential is one of the existences leading sell financial services groups providing life insurance, financial services and summation management products and it has been writing life insurance in the United Kingdom for 163 geezerhood. In 1995, Prudential arrived in Vietnam international ampere established the Prudential Representative percentage in Hanoi, the capital of Vietnam. Later on, in 1997, it established a second Representative office in Ho Chi Minh City After 11 years , in 2006 , it was awarded the No. 1 brand in Insurance Finance Banking Industry.Up to now, it has keep dominating the market partake in insurance mar ket. PART 2 ORGANIZATIONAL twist Board of managing directors Mr. Alexander John Hambly hot seat (Non-Executive Director) Mr. Hambly is the Regional Head of mystical merelyness of Eastspring Investments (capital of Singapore) contain (formerly known as Prudential summation Management (Singapore) Limited) joined Prudential in 2003 and was old geezer Executive Officer and Chief Investment Officer of Eastspring Investments Fund Management Limited Liability caller-out (formerly known as Prudential Vietnam Fund Management Private Limited political party) from January 2006 to September 2007.Alex was as well as the Chief Executive Officer for Prudential position Investment Management (Singapore) Pte. Ltd from September 2007 to February 2010 and the Chief Executive Officer of PPEM Pte. Ltd. from edge 2009 to October 2010. He has more than 20 years direct enthronement populate gained in both Asia and other major markets.Prior to joining Prudential, he worked for four years for Actis (formerly known as CDC Capital Partners) based in Singapore, four years with HSBC Private Equity based in India, and 7 years with Barclays Bank plc based in London, India and Singapore, the rifle three years of which he was on secondment to a private equity store (Baronsmead plc) in the United Kingdom. He holds a BA in groundbreaking History from Durham University in the UK. Mr. Hambly is also a member of the septet Audit and Remuneration Committees. He has not been a director of any other listed come with in the last three years. Mr. Henry (Van Hung) scarperManaging Director (Chief Executive Officer) Mr. Lam, a resident of Vietnam, was born in Vietnam and came to Australia in 1977 and studied electrical 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 overseas Vietnamese to receive this, for his contri merelyion to the economy of Vietnam and in 2010 he was awarded the Second 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 get byholder of Corbyns International Limited, the Companys ultimate holding company. Mr.Alan Alexander upstart Managing Director (Chief run Officer) Mr. Young commenced his business organization concern career in the financial sector and was diligent for some(prenominal) years in banking and finance. For the past twenty years, he has gained wide experience in the administration of public companies, particularly in the option sector. Mr. Young is a Board member of all the operating subsidiaries in Vietnam. He was a married person of the Institute of Corporate Managers, Secretaries and Administrators and past hot seat of the Western Australia-Vietnam Business 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 D irector of Arcadia Group in Perth which specialises in designing, developing and managing retirement resorts and amplitude properties. For the last twenty years, Mr. Kwok has managed a number of Australian businesses in the self-propelling and healthcare sectors. He is a past president of The Western Australian Chinese Chamber of Commerce and brings significant experience in business relations in international markets, particularly China, which sources raw materials to septettes 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 Walker (appointed 3 January 2012) Independent Non-Executive Director Mr. Walker has potassium alum and postgraduate qualifications in Medicine and Medical 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 busin ess 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 the Past-Chairman of the Melbourne Chapter of the Young Presidents Organisation. He was named the 2006 Ernst &amp Youngs National enterpriser of the Year (Service 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 GET PROFIT?The renovation and modernization of the boorish and international economic integration requires every industry, every business draw to try harder, continuing deeply comprehensive reform in all its activities. With the function of mobilizing small issue forth of money from countless individuals to c reate a central insurance fund 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 capital market of many countries.And if the homo over a long period, the enthronisation activities of the non-life insurance companies are considered a complementary activities in order to add-on emoluments in mendr to net from insurance operations, since the type of life insurance on the market, investors have become a very important activity, cant be separated and have to say it determines the survival of life insurance companies. To be more specific, the writer will present the way Prudential get bring ins. Firstly, by buying insurance contracts, Prudentials employees try to mold other nation to buy their insurance policies.They will get amount of money when the contracts accomplish and unless the buyer 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 generate profit by mortgage. Lending is an important role for life-insurance company. With the disposition as an investment tool, Prudential company crucial also be subject to some limitations when it carry out contribute such as restrictions on the maximum amount allowed for limited get and alter of money.Currently the mortgage loans of life insurance companies primarily secured by real kingdom . intimately 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 popular and used by insurance companies as a form of competition. The next one is that Prudential company invested in securities. This is the investment tool which is used by almost life-insurance company most widely, hence the profits from investment securities giving the insurance company is very huge.Moreove r, 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 kinds of securities which most life insurance companies prefer to invest. In a word, investing in securities has high margins than other forms of investment. liveliness-insurance companies tend to invest grown value 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 aim less but have a higher expected rate of return. Next, Investing in real earth is important element without mention on the way to generate profit . The investment in real realm plays an essential role because it maintains the stability of the value of investing in real terra firma which is less affected by inflatio n. However, investing in real estate has high market risk and low liquidity.Therefore the real estate business of life-insurance Prudential is suffered from certain limitations. In addition to these forms of investment, life insurance companies also invest in other forms of joint ventures, deposits at assign institutions, pledge and mortgage. With life insurance company investment which is usually long term should be greater long-term portfolio than that of non-life insurance companies . In antecedent time, loans secured by the mortgage is the primary form of investment life insurance companies.These investments often bring a higher rate of return than investments in presidential term 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 establishment of an freelancer investment organization in the form of the investment company or investment fund owned by the insurance company all the shares or hold the shares in the form of applied fairly gross 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 emend the quality and competency 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 challenging year for the global economy and Vietnam was not an exception. The slow gain in the US and EU region also softened Vietnams export demand. Moreover, the fasten policy by the SBV to take in charge inflation lowered domestic 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 lowest 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 nearly 39% of the total revenue of the life insurance market, cut down 1% compared to 2010. However, Prudential Vietnam has reached peeled business premium of VND615 billion ($30 million), 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 position in Vietnams life insurance market. In additional, Prudential Vietnam has win the Golden Dragon Award 2011 with the denomination Best Financial Service for all three business units in Vietnam Prudential Vietnam Assurance, Eastspring Investments and Prudential Finance. This is the 10th consecutive time that Prudential has won the Golden Dragon Award. * Prediction in 2012 2012 outlook is expected to improve due to consistent establishment policy, the more stable VND and progression in the balance of payment.We become increasingly pollyannaish 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 trade off for long term large stability. During this period, the equity market might remain volatile and highly reacti ve to releasing immatures. We think that selective investment in sectors with stable usance demand (i. e. non-cyclical consumer goods) or have a strong financial mental ability will bring benefits for investors.In the long run, we increasingly become optimistic about the equity market as the VN Index valuation is before long at one of its lowest levels historically and compared to other markets in the region. rivalry 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 fourth of 2012, the total sales o f 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 close 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 cut off of this company many companies in the same industry appreciated.AIA is also one of considerable competitors with daring and efficient strategies which may have a owing(p) breakth rough 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 extensive development. In the recent economic condition, the issue is not about the number 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 h igh recuperation 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 market or not, its still a question. CHAPTER 3 FINANCIAL item 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 Business 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 cost 379,520 819,496 3. Manager cost and other costs 585,833 723,573 III. wage without taxes 1,337,367 992,535 IV. Taxes 329,815 240,839 V. kale Profit 1,007,552 751,996 The table shows how Prudential did their business in 2011. According to the ta ble, in 2011, Prudentials revenue showed an upward trim down in both insurance and financial fields.Specifically, its revenue increased by 626,864 million VND and 635983 million VND respectively. 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, however it was less than it had been in 2010.Important financial ratios Content 2010 2011 I. Asset Structure 1. Fixed Asset / Total Asset 0. 3% 0. 4% 2. Moveable 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. silver 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 rates, the increase of gold price and Resolution of the government Firstly, the 2008 Financial Crisis has been proving that it has global 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 drive on the economic recovery process by improve finance, credit and real estate market. According to official figures, GDP of the biggest economy in the world rock-bottom 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 line 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 Russia, 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 single 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 model number and it also means 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 average income, and increased the compensation costs of non-life insu rance.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 keen which reduced investment opportunities and profitability of the insurance business and even generated difficulties for making cookery for diminution in value of investment in a comparatively large number.And finally, in 2011 The Resolution of the Government about the credit crunch, tightening outgo and government investment has decreased demand for property insurance, pull and installation of new assets bargain ford. 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 clientele 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 bang 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 encompass, the risk of high inflation, the government undertook to restructure 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 pro ducts.Moreover, many businesses have to limit their turnout or stop working because of difficulties in accessing to bank credit which led to an increase in the number of unemployed workers and reducing income. Hence, these determinants generated bad personal 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 imperative signs bringing new development in insurance market and prov iding 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 extensive 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 phase angle 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 bring up 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. appurtenance http//www. vii. net. au/Company/BoardofDirectors. spx http//w ww. investor. prudential. com/phoenix. zhtml? ID=1099317&ampc=129695&amphighlight=&ampp=irol-newsArticle http//thuvienluanvan. com http//timluanvan. com http//www. prudential. com. vn/ Principles of microeconomics (2003 ) Mankiw Principles of microeconomics 2ed (2001) Mankiw Economics book seventh 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