1INTRODUCTION

NECESSITY OF THE TOPIC
In the context of overall development, in order to achieve high business
efficiency and business goals, enterprises need to evaluate their own business
efficiency and find out the causes so that they can have proper solutions in
the future through annual analysis of business efficiency. The industry of
export wood processing – one of major export industries in Vietnam – of
which South Central region is one of the four fastest growing areas, is not an
exception. Stemming from a great deal of thorough research of business
efficiency analysis in export wood processing enterprises in South Central, the
thesis entitled “Improving analysis of business efficiency in export wood
processing enterprises in South Central” was conducted.
RESEARCH AIMS
- Systematizing theory of efficiency, business efficiency and analysis of
business efficiency in manufacturing enterprises in general, export wood
processing enterprises in particular.
- Researching into the current situation of analysis of business efficiency
in export wood processing enterprises in South Central, thereby, pointing out
strengths and weaknesses.
- Recommending a number of solutions to improve analysis of business
efficiency suitable for export wood processing enterprises in South Central.
Providing guidelines for applying changes, supplements in business
2efficiency analysis in order to test usefulness and feasibility of the
recommendations.

analyzing business efficiency in export wood processing enterprises in South
Central.
- Contributing to improving the activities of analyzing business
efficiency in export wood processing enterprises in South Central.
THESIS STRUCTURE
In addition to the introduction, conclusion and references, the thesis
content consists of 188 pages, 36 tables, 2 charts and 24 appendices made up
of three main chapters:
Chapter 1: Basic theory of analysis of business efficiency in
manufacturing enterprises.
Chapter 2: The current situation of analysis of business efficiency in
export wood processing enterprises in South Central.
Chapter 3: Viewpoints and solutions to improve the analysis of business
efficiency in export wood processing enterprises in South Central.

4CHAPTER 1
BASIC THEORY OF ANALYSIS OF BUSINESS EFFICIENCY IN
MANUFACTURING ENTERPRISES
1.1. EFFICIENCY AND BUSINESS EFFICIENCY IN ENTERPRISES
1.1.1. Concept and nature of efficiency and business efficiency
1.1.1.1. Concept and nature of “efficiency”
Efficiency is an indicator reflecting the level of gaining the results in
order to achieve a certain aim of the subject corresponding to a unit of
resource spent in the process of implementing an activity.
Classification of efficiency:
- Economic efficiency and social efficiency
- Social production efficiency and individual efficiency

1.2.2. Stages of analyzing business efficiency
6Stages of analyzing business efficiency consist of the following ones:
preparation, implementation and conclusion.
1.2.3. Methods of analyzing business efficiency
Methods of analyzing business efficiency consist of the following ones:
comparison, detail, exclusion, balance correlation, Dupont analysis and
regression.
1.2.4. Contents of analyzing business efficiency
Contents of analyzing business efficiency include analysis of business
efficiency through indicators of use efficiency, profitability and rate of
turnover of input costs or other input factors and indicators to evaluate the
social efficiency.
1.3. CHARACTERISTICS OF ANALYSIS OF BUSINESS EFFICIENCY
IN EXPORT WOOD PROCESSING ENTERPRISES
1.3.1. Characteristics of export wood processing industry affecting
business efficiency and analysis of business efficiency
1.3.2. Business efficiency and business efficiency analysis in export wood
processing enterprises
1.3.2.1. Business efficiency of export wood processing enterprises
Business efficiency of wood processing export enterprises is an
economic category represented by the specific economic indicator system
which is determined on the basis of comparison of the correlation between
7the outputs and the input costs or other input factors of the
enterprise. Business efficiency reflects the level of using the resources of

business efficiency is not only necessary for any specific industry or business
but needs to become a regular activity of all enterprises in all economic
sectors and all areas of business including export wood processing industry.
In Chapter 1, the author carries out in-depth study codifying the basic
theoretic issues of business efficiency and the content of analyzing business
efficiency in manufacturing enterprises in general and the export wood
processing enterprises in particular.
9
CHAPTER 2
CURRENT SITUATION OF ANALYSIS OF BUSINESS
EFFICIENCY IN EXPORT WOOD PROCESSING
ENTERPRISES IN SOUTH CENTRAL
2.1. OVERVIEW OF EXPORT WOOD PROCESSING ENTERPRISES IN
SOUTH CENTRAL REGION
2.2. CURRENT SITUATION OF BUSINESS EFFICIENCY ANALYSIS IN
EXPORT WOOD PROCESSING ENTERPRISES IN SOUTH CENTRAL
REGION
2.3. EVALUATION OF CURRENT SITUATION OF BUSINESS
EFFICIENCY ANALYSIS IN EXPORT WOOD PROCESSING
ENTERPRISES IN SOUTH CENTRAL REGION
2.3.1. Operation of analysis
Aspects carried out: There have been a number of enterprises carrying
out analysis of business efficiency.
Aspects not carried out yet: the process of analysis has not been

2.3.5. Indicator system used for analysis
Aspects carried out: Indicator system has been used for general analysis
of business efficiency analysis and for evaluation of rate of turnover of the
assets and for profitability of assets and capital.
Aspects not carried out yet: lack of indicators related to costs analysis,
enterprises have not yet agreed on the general indicator system as well as in
identifying indicators.
Conclusion drawn from Chapter 2
Chapter 2 provides outline of the export wood processing industry in
South Central area and evaluates the current situation of analysis of business
efficiency in enterprises within the industry through documents of some
enterprises which conducted analysis of business efficiency. Current situation
of business efficiency analysis in enterprises is very much affected by the
scale of the enterprise, so there has not been much attention paid to analysis.
Therefore, the analysis of business efficiency is still very sketchy; it is prone
to required to do more than necessary to do and still focuses on the form.
Before starting with Chapter 3, the author would like to confirm once
again that business effectiveness analysis can help administrators have a
general view on the basis of analyzing the nature of research issue, thereby
based on the conclusions of analysis to determine appropriate business
strategies, on one hand to overcome weaknesses, on the other hand to
promote strengths of business activities.

12

- Information related to financial statements: Information should be
collected at various times to determine the average data.
- For information related to costs, especially production costs,
management accounting should be combined with financial accounting when
accounting the costs, especially in the classification of costs according to
behavior of the costs. Based on that, the enterprise can carry out reports of
business efficiency used for the internal management (including overall
report and sectional report). Analysts will base on profits determined in
sectional reports to evaluate how the performance of individual departments
affects the overall business efficiency of enterprise.
For example, the data of Tan Thanh Dung Quat Export Wood JSC, after
calculation process, the author has made the report (tables 3.5 and 3.6 on page
13).
Based on tables 3.5 and 3.6 (page 13), it is possible to evaluate the
business efficiency of Tan Thanh Dung Quat Export Wood JSC which is low
because profit bears negative value. The reason of loss in business is that the
production department and the management one have not yet achieved high
results. 14
Table 3.5: Report on business performance based on costs ensuring
balance of Tan Thanh Dung Quat Export Wood JSC

in 2010
Indicators Amount (VND)
1. Net revenue 14.580.087.241

ensuring
balance =
(1)-(2)
1.757.971.042

(598.197.064)

1.358.007.602 998.160.504

4. Sectional
fixed costs
2.392.363.923

562.777.877 212.705.510

1.616.880.536
5. Sectional
balance =
(3)-(4)
(634.392.881) (1.160.974.941) 1.145.302.092 (618.720.032)

6. General
fixed costs
0 0 0 0
7. Net profit (634.392.881) (1.160.974.941) 1.145.302.092 (618.720.032)

15(Source: Calculated by the author)

1
-

TSNH
0
=

- 0,07
turnover

+ Impacts of increase in net revenue:
DTT
1
DTT
0
∆H
TSNHDTT
=

TSNH
1
-

TSNH
1
=

+ 0,35
turnover
+ Synthesis of the impacts of factors:

= (H
TS1
- H
TS0)
x ROS
0
= + 0.03%
- Impact of variability ROS:
∆ROA
ROS
= H
TS1
x (ROS
1
ROS
0)
= + 1.46%
- Synthesis of impact of these factors:
∆ROA = ∆ROA
HTS
+ ∆ROA
ROS
= 0.03% + 1.46% = 1.49%
+ Second, the thesis proposes simple Dupont equation for the indicator
of “Return on common equity” (ROE):
ROA

ROE

=

Production and consumption
(X) (item)
Total operating costs (Y)
(VND)
1 310.000 7.326.984.625
2 341.000 8.847.788.725
3 372.000 16.250.582.416
4 434.000 17.689.786.346
5 465.000 9.260.232.283
(Source: SalesDepartment – Dai Thanh Wood Technology JSC)
After calculation process done in Excel spreadsheet, the result obtained b =
29.835,64; a = 406.255.901; R = 0,41 - correlation between the total operating
costs and production and consumption costs is average and covariable
correlation.
From the results obtained, we have a function:
Y = 406.255.901 + 29.835,64 X (*)
From the function (*), the Company can determine the total operating
costs corresponding with each level of production and consumption.
3.2.3. Improving source of information used for analysis
- For the accounting information, it is necessary to ensure accurate and
absolutely objective information by organizing accounting system consisting
18of two classifications of financial accounting and management accounting.
Opening training courses on accounting operation to ensure the accuracy of
accounting information and establishing the internal control department to
check the accuracy of the accounting information provided.
- It is necessary to open regular and periodic training courses for
managers from low to high level to have professional management team.

3.2.4.2. Supplementing the indicators of rate of turnover of input costs or
input factors
- Adjusting the way of identifying indicators used in calculation is
needed by: for the indicators taken from the balance sheet, it is necessary to
use the average figure between the beginning and end of the period or the
average figure at various times to ensure not ignore the variability of the
indicators in the period.
- Supplementing the following indicators: “Number of turnovers of
assets”, “Number of turnovers of materials”, “Number of turnovers of
equity”.
3.2.4.3. Supplementing the indicators of profitability input costs or input
factors
- Adjustment to identify indicators used in calculation is needed by: for
the indicators taken from the balance sheet, it is necessary to use the average
figure between the beginning and end of the period or the average figure at
various times to ensure not ignore the variability of the indicators in the
period.
- Supplementing the following indicators: “Profitability of direct
materials”
3.2.4.4. Evaluation of social efficiency
- Stable income of workers
- Stable employment of workers
- Environmental protection
203.3. SOME FUNDAMENTAL SOLUTIONS TO IMPROVE BUSINESS
EFFICIENCY IN EXPORT WOOD PROCESSING ENTERPRISES IN
SOUTH CENTRAL
3.3.1. Promoting investment in forestation for materials

efficiency in management activities.
- Enterprises should invest in training to improve professional capacity
for staff engaged in analysis as well as accounting.
- Depending on each specific period and based on the available
processes, methods and indicator systems used for analysis, the enterprises
choose an analysis model consistent with the objectives and contents of
analysis, preparing personnel and facilities in accordance with existing
conditions to ensure the most effective and costss-saving analysis.
- Enterprises should pay more attention to investing into the analysis of
their business efficiency.
- There should be coordination between functional departments within
the enterprises.
Conclusion drawn from Chapter 3
In Chapter 3, the thesis presents the viewpoints and solutions to improve
analysis of business efficiency to improve business efficiency in export wood
processing enterprises in South Central.
22To be able to propose solutions to improve analysis of business
efficiency, the thesis outlines developmental orientation for export wood
processing industry in South Central until 2020, analyzes viewpoints to
improve analysis of business efficiency in export wood processing enterprises
in South Central. After proposing solutions to improve analysis of business
efficiency in export wood processing enterprises in South Central, the thesis
also proposes a number of measures to improve business efficiency of these
enterprises and propose the necessary conditions to implement the solutions.

CONCLUSION
The thesis presents the theoretical issues of efficiency, business

proposes a number of solutions to improve the analysis of business efficiency
based on the developmental orientations of the industry and the viewpoints on
improving business efficiency analysis including:
+ Improving the activities of analyzing business efficiency,
supplementing function of management accounting in cost management in
order to provide qualified information and evaluating activities of inefficient
department affecting business efficiency of the whole enterprise;
+ Completing contents of comparison method in the analysis by
comparing the average figure of the industry, supplementing detail method
supplementing the method of continuous substitute and Dupont analysis
method to consider the factors affecting the analysis indicators and
supplementing the method of single regression to predict the operating costs;
+ Improving the system of analysis indicators with additional
indicators including: the system of indicators used to evaluate efficiency of
24using input costs or input factors; a number of indicators evaluating the
rate if turnovers of input costs or input factors, including: “Number of
turnovers of the total asset”, “Number of turnovers of raw materials” and
“Number of turnovers of the equity”; supplementing a number of
indicators evaluating profitability of input costs or input factors, including
“The profitability of direct material costs”.
4. Proposing some basic solutions to improve business efficiency of
export wood processing enterprises in South Central.
5. Proposing recommendations to the State, the authority agencies, the
Associations of wood and forest products and export wood processing
enterprises in South Central to help ensure the performance of feasible
solutions to improve the analysis of business efficiency and business
efficiency.