LUẬN văn THẠC sĩ building the strategy for property business of industrial construction joint stock company (ICJC) duration 2018 – 2022

FUNDAMENTAL THEORY OF BUSINESS STRATEGIC

Fundamental concept of strategy and real-estate business strategic plan

Historically, the term “strategy” was primarily used in military activities involving long term plans and based on a belief of what the enemy would and would not do

In a society of competition as a dynamic process, the concept of strategy is no longer limited to military applications but also widely applied to every economic and industrial sector: economic , political, cultural sport, tourism The essence of strategy is to summarize all sources to make a distinctive, effective plan and to create advantages over competitors according to the interests of the leadership

Since the 60s of the 20 th century, the term strategy has been used for the business field and the term “business strategy” officially was born As time passed by, the concept of business strategy quickly grew and people perceived this concept in many different ways.And nowadays, the term „business strategy‟ has become very popular and is considered to be a vital key of a success of business There are many definitions of business strategy which have been given and each has its own viewpoints along with common viewpoints

+ M Porter (1996):“Strategy is distinctive value chain based on customer needs and wants in order to create a competitive advantage”

+Alfred Chandler(1962): “Strategy can be defined as the determination of the long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”

+ Keneth L.Andrews (1965): “Strategy is a model of goals, objectives and plans to achieve these goals”

+ Quinn (1980): “Strategy is a model, a plan to integrate primary goals, guidelines and chains of activities into a cohesive comprehension”

+ Johnson & Scholes (1999): “Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations"

+ Brace Henderson: Strategy is to search for a prudence, a plan for collecting and developing competitive advantages of an organization Distinctions are your advantage over competitors”

+ Assoc Prof Dr Hoang Dinh Phi: “ A corporate strategy is a document, either written, printed or electronic, in which the responsible people set out long-term mission, vision, and strategic objectives for 5 years as standard, as well as the resources to be mobilized and solutions to be implemented in order to achieve the set objectives”

As per those quotes above, I would like to highlight some features of a business strategy

First: A business strategy is always the direction, so changes in the business environment need to be observed and predicted in order to instantly adjust primary activities or to somewhat adjust primary goals and objectives In other words, an optimal business strategy only suits a specific period of time and a particular circumstance Since the business environment changes, a business strategy needs to be changed too

Second: Leaders and the management board of an organization always play an important role in building a business strategy

Third: A business strategy is always based on recognizing and understanding the basic competitive advantages that one has over competitors and actively pursuing this favourable position to hedge risks and weaknesses

Therefore, it is important to understand boththe pros and cons related to competitors when developing the business strategy

A business strategy plays the main role in business development as every short-term business plan is supposed to be based on it It motivates research and development activities and human resources training courses It also comes to the aid of actively orienting a business toward in the right direction according to the fluctuations in the market atmosphere as well as its strong points In practice, we all have witnessed successes and failures of a business

A success or failure of a business significantly depends on how that business plans a strategy As a result, a good business strategy will result in an organization enhancing its position and competitive advantages in market

1.1.2 Concept of real-estate and real-estate business strategy Concept of real-estate

According to the Civil Laws 2005 of Socialist Republic of Vietnam, article 174: “Real estate is property consisting of land and the buildings on it; including immovable property of the buildings; property on land and other property stipulated by law”

Features of real-estate a Uniqueness and scarcity

The key features of real-estate are derived from its uniqueness and scarcity of land

The dimensions of the Earth are unchangeable and result in the land area being unchangeable Uniqueness and scarcity of land are restricted to a particular land slot, local land area, and the national land area Scarcity and immovability of land make real-estate very unique On a short and narrow road, two real-estate properties which are the same size and design located next to each other offer different characteristics It is impossible to locate two real-estate properties at one location in spite of how much they look alike Therefore, the only way to satisfy and convince real-estate buyers is creating the uniqueness for each real-estate and making them attractive enough for buyers b Durability

Land is gifted by the nature and land is considered as indestructible property (except in the case of acts of God) Structures on land could last for years and if well maintained, they could last for centuries So, the durability of real-estatemay be defined as the lifetime of structures on land

We need to distinguish between the “physical life span” and the “economic life span” An economic life span is limited by market conditions and terminates when the expenses offset any profits realized A physical life span last much longer than an economic life span as it only ends from the results of aging, destruction, or a serious deterioration of reinforcement structures In that case, if the action of renovating a building provide more benefits than demolishing a building and building a new one, it results in a physical life span remarkably longer than the economic life span Practically, many countries have proved that economic life span is about real-estate using process In general, the economic life spans of structures such as: high-rise building, hotels, theaters are over 40 years; and those for industrial factories, houses etc are more than 45 years Durability of real-estate is virtually unlimited can be used for many different purposes, so real-estate products can be in multiform and plentiful c Reciprocal effect

Real-estate has a magnificent reciprocal relation Value of property could be influenced by other properties In such a case if a government invests money to improve local infrastructures, this will drive up the value of local real-estate instantly Besides, a nice real-estate increase in value will benefit other properties as well as the whole area d Other features:

A real-estate benefits a landlord during its lifetime We can adjust capacity of a real-estate without changing its typical feature Simultaneously, all requirements of user such as: accommodation demand, business-production demand and other demand shall be guaranteed and satisfied

Role of strategy

The role of strategy is to guide a business on the right way in the future and probably becomes a recipe of success As long as you find out the right direction for the business, the success of your business will be assured And as the right direction has been determined, it would motivate all managers and staffs to fulfill their jobs in short-term as well long-term objectives No strategy or an unclear strategy shall mislead a business

A good strategy shall aid a business to make out and carry out primary goals In doing business, the survival and development of a business strongly depend on a wise strategy and getting missions of that strategy well done

Strategies shall help to reduce risks A good job of predicting and analyzing market conditions in the future offers a business a great chance to move forward and reduce risks of business environment as much as possible

Moreover, a good strategy shall help a business actively control over changes of market conditions A good strategy shall also aid a business to make wise decisions and carry out these decisions precisely based on market movements

There is a solid relationship between personnel, financial sources, and objectives of a business and marketable chances during the business running process of that business

A good business strategy shall enhance the effectiveness of using all available and hidden resources; lift up business position in the market and guarantee a continuous and firm development

The Strategy shall take a decisive part in decision making such as: investment decisions, market expansion decisions, decisions about new product development, human resource training.

Category of strategy

1.3.1 Strategy of management classification grade

- Functional strategy There are 03 strategies for Corporation strategy as following:

- The strategy for common orientation in order to aim at a particular goal: development, stabilization or shrinkage

- The strategy for listing business activities/investments that come with specified products and services

- The strategy for a comprehensive management plan which includes human resources, business activities, improving competence and coordinating with other economic sectors

Business strategy is only related to daily business activities within the scope of corporation in the private sector This strategy shall help to improve the position and cooperation of the corporation The fundamental factors of a business strategy include:

- Competition strategy: Making competitive advantages over competitors via a low expenditure plan or creating distinctive products/services

- Cooperation strategy: Making competitive advantages over competitors via a strategic partnership

Authority strategy consists of: marketing strategy, financial strategy, production, human resource and research & development strategy This strategy shall help to improve business function activities and maximizing all power resources of the corporation Authority strategies aim at enhancing core competences of the corporation and result in competitive advantages

In order to systemizing all scope of business of a corporation, strategic business units (SBU) should be formed The SBU shall run business independently but share the same comprehensive strategy of the corporation

Figure1.1: Model of classification of strategies for an organization

1.3.2 Classification of strategies regarding functions

We can classify functions of strategies as below: a) Strategic development via unification

A strategic development via unification means merging 02 or more business units to reinforce corporation strength so as to take the most advantages of chances and solve challenges more quickly A development through merging asks for a lot of effort attempts and other resources of 02 or more partners to push up developments of one or a few business fields, improve competences and hedge risks It can be a partly unified process or a totally unified process

A corporation following an unification strategy shall upgrade competitive advantages of its main career fields such as: First, this strategy shall decrease competitions within the scope of the corporation private careers and increase profits as

(Growth of authority strategy consists of: unification, diversification, low cost, distinction, centralization and cooperation) it has the right to set up higher prices Second, the corporation can improve its products/services quality Third, a merger is capable of actively planning, coordinating, and scheduling a chain of procurements, transportations and supply to customers b) Diversification strategy

This strategy means using surplus funds to invest in other business fields since a corporation has predominance in one or few particular marketplaces There are some basic forms of diversification: Centric diversification (joining a new business related to current business as the similarity of features); Combination diversification (joining a new business which doesn‟t concern current business of organization); Horizontal diversification (focusing on researching & developing new products/services for traditional customers)

There are many businesses that take diversification strategy into account as they have more than enough funds to remain competitive advantages in their classic markets This strategy creates values in 03 respects: First, buying and reorganizing a business allow it to grow more effectively Second, a power transferring shall take place among business units In some cases, a corporation would keep continuing after a stable strategy or retreat for safety

When this strategy is applied, businesses can detail a competitive strategy This strategy is built based on customers‟ needs and demands and distinction of products; market segment and competitive position of these businesses c) Low cost strategy

This strategy shall create better prices for products due to low expenditures When this strategy is applied, a business often focuses on the average income class and ignores other market segmentations The advantages of this strategy include: improving strength of business as having a large production; making a barrier for competitors that want to join the market due to low cost production, so creating a solid competitive position The disadvantages are: competitors can easily make copies of products; businesses just pay attention to cutting down production costs and do not care about changes of market demand Therefore, companies that apply the low cost strategy need to be aware of customers‟ satisfaction for products/services over those of competitors d) Strategy of distinction

This strategy shall guide a business to create distinctive and unique products to satisfy choosy customers It means that prices of products must be expensive When this strategy applied, a business has to design a distinctive and particular plan for each period according to marketability The main capabilities that need to be focused on are research & development and marketing There are 03 choices for this strategy: Quality, renovation and satisfying customer‟s wants This strategy shall create a big barrier for market participation of competitors and a good control of price in market share of business; creating a belief and loyalty of customers for excellent quality and uniqueness of products The disadvantages are: not easy to remain a high price, high production costs and short product life cycle, high technology production system and high marketing expenses e) Centralization strategy

This strategy requires a business to concentrate on specialization, be small in scale, make real unique products and stay on the top for low production cost in its market share

These businesses totally specialize in serving a particular group of customers or particular market segmentation Market segmentation can be divided according to geography or a branch of product line When this strategy is applied, a business needs to find out a core capability as for creating uniqueness or an advantage of production cost

A business can specialize in only one market segmentation, one product or as per marker condition A business sometimes has to specialize in both uniqueness of product and top rank of low cost production If just focusing on low cost production, a business has to fight those leading in low cost production which results in no cost advantage If focusing on making a product real distinctive, it leads to the increasing chances of making others and a business shall have a reasonable protection for distinctively made products A loyalty of a group of customers to these distinctive products shall create a big market barrier for new comers and reduce a chance of alternative products The disadvantages are: A small change in technology or a slight decrease in market demand shall virtually eliminate this market segmentation f) Cooperation strategy

A cooperation strategy would be carried out by a strategic partnership plan Two or more businesses shall cooperate based on each business‟s advantages for aiding each other without losing ownership of each business A cooperation strategy comes with a key purpose of enhancing each party‟s competence This strategy could take place between competitors, suppliers, distributors to target mutual benefits This strategy offers

03 working methods: Partnership: competitors, suppliers and distributors all together building up common goals and benefits Major connection: All parties coordinate their best advantages to create better new products/services or to improve competitive position via major connection; Studying: Partners shall be sharing and learning skills, experiences of each partner

These strategies above refer to decisions that connect businesses, market conditions, products/services and core value of each business to increase competitive advantage.

Strategy building process

1.4.1 Strategic management process and model Thomas Wheelen: Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation It includes environmental scanning (both external and internal), strategy formulation, strategy implementation, and evaluation and control

(Lecturer: Assoc Prof Dr Hoang Dinh Phi) 1.4.1.1 Determining vision, mission and strategic goals of a business a Determination of vision, mission Each business has its own mission and vision and every member of a business has to keep them in mind whether they are in writing or not A vision declaration of a business is a mile-stone of strategic management plan It is scientific foundation for analyzing and adapting a business strategy A mission determination is not only important for a new founded company but also a long established and experienced company

And mission of a business refers to the purposes, reasons and meaning of a business establishment The mission of a business states that the existence of that business would be helpful and useful for the society The scope of a mission declaration involves

1 Evaluating factors and Evaluating competence of a business Analyzing SWOT matrix, analyzing value chain and 05 forces

2 Choosing strategy, deciding mission, vision, core value and long-term goals & objectives

5 Supervising, supporting, evaluating, adjusting, improving, changing

4 Implementation, modification, strategic implementation and plan

3 Drafting, proposing strategy& related plan for an approval products, services, technology, rules and philosophy which a business would be following As a result, a mission declaration shows the meaning of a business existence, what a business would like to be, types of customers it serves, and its process of business

A mission determination plays a very important role in the success of a business

First of all, it helps an organization to make right decisions inchoosing goals and strategy; on the other hand, it reinforces organization image toward customers, partners, suppliers, shareholders and office authorities Practical proof shows that a business that pays more attention to a thoughtful mission would be more successful than those that take a less care

- Ensuring the unification of goals and objectives

- Creating a dynamic for all resources

- Proposing standards of allocating resources of an organization

- Building an efficient business atmosphere

- Creating belief of every staff over organization goals & objectives

- Making common goals be particular strategic goals

- What are customer segmentations of organization?

- What are core products/services of organization?

- Where is market position of organization?

- Is technology the most important interest of organization?

- What are fundamental values and desires and preferable philosophies of organization?

- What are intensive capabilities and competitive advantages of organization?

- Does the organization care about public issues?

- How does the organization treat staffs? b Strategic goals determination Strategic goal determination is a foundation to set up a business strategy A goal determination is an instruction to lead a business to expected outcomes Thus, goals setting must match reality and business conditions for creating a highly practical strategy The current strategy of organization need to be well analyzed to find an answer to the question: “where are we?”

1.4.1.2 Analyzing and evaluating business environment

Business environment is a set of factors and conditions that directly and indirectly influence business activities Market factors and conditions are always changing, interacting and influencing business activities Analyzing business environment shall provide a business with an overall view of advantageous and disadvantageous factors Environmental factors have a profound influence on the development of the strategy The general environment that the organization encounters can be divided into three interrelated levels, they are macro environment, micro environment and internal environment of the enterprise a) Macro environment

The macro-environment directly or indirectly affects the business operation of the enterprise The level and nature of impact are different, so it is difficult for enterprises to control macro-environment The macro environment consists of

These factors affect all businesses in a territory, the issues of government, legal

Technolo gical & scientific issues Natural factors issues and the political environment would affect the survival of any business in different ways They can create either opportunities or obstacles, even serious risks for businesses They are factors which affect all businesses in a territory Consider the following aspects:

Political stability: We will look at the stability of political and diplomatic conflicts of a legal system A highly stable political regime will create good conditions for business activities and vice versa, those are not stable would negatively impact on business activities

Tax policy: Export tax, import tax, consumption tax, income tax, etc would affect the revenue and profits of a business; simultaneously create opportunities and can be a brake on production

Relevant laws: Investment Law, Business Law, Real-Estate Business Law, Labor Law, Antitrust Law, Anti-dumping Law, Employment Regulations, Promotion, Retirement, Unemployment benefits are those a business has to take into account

Policy: The state's policies will have an impact on the business, which can generate profits or challenges for businesses such as trade policies, development policies for specific businesses, economic development, Competition regulation policy, consumer protection

These are the factors that play a leading role and significantly influence the business operation of each organization These issues are economic targets of each country for each period; they directly affect the operation of a company Economic issues include:

+ The growth pace of the economy would increase new demands for the development of economic sectors

+ Inflation reduces the stability of the economy If inflation increases, investment planning becomes risky as it is difficult to predict the true value of a long-term project

+ Exchange rates: determine the value of the currencies of different countries, the exchange rate changes affect the competition in th e international market

+ Interest rates: affect customer demand + Fiscal & monetary policy

These issues would probably be an enormous change for the medium and long term A fast- changing lifestyle is an opportunity for many businesses And businesses also have to take into account consumer attitudes, age pyramid changes, marriage rate and birth rate, role of women in the workplace and family The emergence of consumer associations is an impediment that requires businesses to pay attention, especially to the quality of products to ensure the benefit of consumers Customers are now more educated which would be a real challenge for producers

Further, each country and territory has its own specific cultural values and these are the characteristics of consumers in the regions; which creates the prospect of development with appropriate businesses In addition to culture, social characteristics also require businesses to take a good care of market research and social factors that would divide customer‟s demand into particular groups and each group has its own different characteristics, psychological features, and incomes, which require a business to have a clear orientation Social and cultural factors slowly affect the business environment, but when they do, they would be very powerful Therefore, these factors are extremely important so it is important to pay attention to building a business development orientation

ANALYZE THE CONDITIONS FOR BUILDING A REAL

Overview of Industrial Construction Joint Stock Company-ICJC

Address: 26th Floor, 71 Nguyen Chi Thanh Building, Lang Ha Ward, Dong

Da District, Hanoi Phone: (024) 38634656 Fax: (024) 38631087 Website: www.xdcn.com.vn

Business license No 1000105599 issued by the Department of Planning and Investment of Hanoi on 08/08/2016 (8th amended registration)

Areas of business: Real estate Investment; Civil & industrial construction, public & traffic construction, forestry, irrigation, physical training and sports;

Project investment management consultancy; Production of concrete components; Import-export machinery and equipment; warehouse leasing and construction

The process of formation and development

- Site Unit No.105 of Hanoi Construction Agency (1960-1970)

- Construction Company No 105 of Hanoi Construction Agency (1970 - 1972)

- Industrial Construction Company of Hanoi Construction Agency (1972 - 1973)

- Industrial Construction Company Hanoi Construction Department (1973- 2004) Industrial Construction Joint Stock Company has been under the Urban Infrastructure Development Corporation UDIC - One Member Limited Liability Company (since 2007 to present) and transitioned from state-owned enterprises into a joint-stock company in accordance with Decision No 3081 / QD-UBND of the People's Committee of Hanoi on Aug, 2 nd 2007

Industrial Construction Joint-Stock Company is always one of the strong members of UDIC and one of the leading companies of Hanoi construction market

During the 57 years of experience, ICJC has alwaysmetall therequirements in terms of political, business and social issues for the development of the Country and the Capital Moreover, a special task of reinforcing and pushing up the image of the company during the innovation, industrialization and modernization era is to create a solid chance to join the bigger games in theSouth-East Asia area and in the world as well The rapid development of theconstruction market, the hardship of competition rule are crucial to motivate the Company and improve its own production scale, financial competence, technical issues and management skills

For the past 10 years of harshcompetition, those that were small in scale, with poor financial health, outdated technology and management strategy have been defeated in their own market (Hanoi and domestic market in general) The competition shall be more difficult than ever regarding a challenge of ASEAN and international integration As a result, a determined request is to continuously accumulate experience and competence, create our competitive advantage, build up and develop our brand name, for aiming at an opportunity to participate in ASEAN and the WTO in the future

Industrial Construction Joint Stock Company is organized and operated under the Enterprise Law No 68/2014 / QH13, passed by the National Assembly of the Socialist Republic of Vietnam on November 26, 2014, and according to the organization rules and operations of the Company as well as other relevant legal documents The specific model is shown in the organization chart 2-1

Deputy Director Deputy Director Deputy Director

Board of Directors – Supervisory Board Director and deputy directors

Planning Department Accounting and Finance Department Quality &Technical Management Department Organization Management& Administration Department Project Department

Unit members Electricity& Water Construction Unit Construction Unit No.2

Construction Unit No.3 Construction Unit No.4 Construction Unit No.5 Construction Unit No.6 Building Operation & management Unit Mechanical Construction Unit

Board of Directors (BOD): This is the highest level of management of the company BOD has full authorities, on behalf of the company, to make decisions, fulfill rights and obligations as stipulated in the charter of the company BOD consists of:

+ Chairman: Has the rights and responsibilities as stipulated in the company charter, be responsible for the program of activities of the company in accordance with the resolution of the Board

+ Board members: Carry out the tasks assigned by the Board of Directors, study and evaluate the performance of the business and contribute ideas to the development of the company's operational programs and resolutions

Management Board: Includes 01 director, 03 deputy directors in charge of technical fields, project investment and business, and Official Development Assistance (ODA) capital projects respectively and 01 chief accountant

+ Director: appointed by the Board of Directors to act as legal entity representative of the company over transactions and management activities according to the rights and responsibilities stipulated in the company charter; be responsible to the Board for executive decisions

+ Deputy Directors: Assist the Director in managing and monitoring the assigned work areas, responsibility to the Board of Directors for the assigned managerial responsibility

+ Chief Accountant: acts as an advisor, advises the director on financial issues, capital balance and mobilizes funds to ensure the production and business activities of the company

In charge of preparation and inspection of the implementation of the plan and management over production and business of the Company; compile and make reports to the State authority agencies according to regulations and on the requests of the management board, Bidding, partnership - joint venture contracts, economic contracts, plans for carrying goals, hand-over, construction schedule, settlement and capital recovery

Quality &Technical Management Department This department isin charge of advising the Director on organizing, managing, implementing, inspecting, urging and guiding the company's units with respect to technique, quality, construction schedule, safety and hygiene, fire and explosion prevention and fighting, flood and storm prevention and control at work site in accordance with the State's construction regulations; researching and applying technical scientific applications to work; new technology investment

Accounting and Finance Department Advises the Management Board of the company to plan and implement business operation according to the accounting and finance laws, the Taxation

Law and the Charter of the Company approved by the General Meeting of Shareholders This department also assists the director to organize the accounting system of the company in accordance with the production scale model, makes financial report statements, performs inspection and control of financial activities of the company

Project Management Department The Project Department is responsible for advising the Company's Director on the establishment and operation of real estate business projects

Organization Management& Administration Department The department is taking roles of advising the Director on managing and operating productions and businesses; organizing, recruiting and training labor; settling wealth benefit policies for laborers, rewarding & punishing, inspecting and addressing complaints

Production and business activities of the company for the period 2014-02016

Source: Accounting and Finance Department

Capacity to develop real-estate projects

Since the Renovation period, ICJC‟s leaders have determined that real estate investment would have become a key business of the Company's business structure due to thenew era development trend Being aware of the rightness and feasibility of this movement, the Company's leaders have been focusing on developing a number of projects on the land which is owned by the company as well as researching and seeking to develop the lands not owned by the company Since 1997, ICJC has successfully deployed a few projects and gained high capital efficiency, created jobs for other industries such as building construction, housing business, service exploitation For examples: Investing in Mai Huong residential area in 1998, Lac Trung residential area in 1998, Nhan Chinh housing & residence in 1999, Hong Mai housing & residence in

2000, Tran Duy Hung South-East urban area from 2004 to 2009, high-rise building and services at 71 Nguyen Chi Thanh St (one of the first high rise building projects in Hanoi with a height of 27 floors) from 2002 to 2006; Cau Tien High-rise Residential and Service Project 2010 to 2013; high-rise apartments and services building N04 from

2011 to 2015 In the current period, the company is carrying out some projects such as:

Dai Kim high-rise apartments and services building, Sai Dong residence project, renovating old condominiums in Giang Vo ward.

Propose and analyze the real estate business strategy of Industrial

2.2.1 Vision - Mission and development orientation for ICJC 2.2.1.1 Vision

Making Industrial Construction Joint Stock Company becomes one of leading companies of Hanoi particularly as well as of the nation in the field of Civil & industrial construction, technical infrastructure, real-estate business & investment, creating products of superior quality to satisfy the high demand of customers and markets; and striving to make the Industrial Construction Joint Stock Company to be a popular and prestigious brand name in the construction market of the capital and the whole country, too

Industrial Construction Joint Stock Company is confident in its own strength and experience "for a better match with the needs of market and satisfying customers‟ requirements“ It is the must & right way of the Company through its mission statement

As mentioned above, due to limited time and conditions, I only go into the external environment analysis to identify the opportunities and challenges for real- estate businesses This business area is gradually becoming the key business of Industrial Construction Joint Stock Company.

Tectonic government would be continuing as the focus of the Government for the period: 2016-2021 In the first regular meeting of the Government (April -2016), the Government took time to discuss the direction and administration for the coming time based on the basis of the new Constitution and the Government Organization Law Accordingly, the Government will first of all pay attention to building a transparent, honest and efficient apparatus; saying no to corruption, bribery and waste; Setting an example for the society over all issues, you say it out - you get it done Secondly, the Government affirmed that it would strengthen the Rule of Laws, correct the law enforcement & discipline, especially in the public sector Thirdly, shifting from the administrative Government which gives the directions and orders to the tectonic Government of creation and serving, and the satisfaction of all enterprises and people is a measure of the efficient performance of the Government along with the Authorities at all levels Fourthly, clearly define the market management functions and limitations, and progressively eliminating the mechanism of applying – receiving Fifthly, the Government is interested in the orientation of empowerment and decentralization in which the ministries, local governments and authorities do things that they are good at Sixthly, uphold the roles and responsibilities of the Government members in solving and removing obstacles, building mechanisms and policies as well as the coordination of the ministries and authorities with the local governments (source: Government information Portal)

On May 17, 2017, Prime Minister Nguyen Xuan Phuc and four Deputy Prime Ministers: Vu Duc Dam, Truong Hoa Binh, Trinh Dinh Dung and Vuong Dinh Hue presided over the national online conference: the Prime Minister and businesses with the topic of "Business Companion" Participants of the conference were leaders of ministries and central government agencies; Heads of 63 provinces and cities were at the online conference; 2,000 enterprises representing tens of thousands of enterprises, domestic and foreign investors

Thus, in recent years, the Government has always sought a favorable legal environment and policies for promoting the resources of society and economic development In 2017, the Government shall especially focus on the national strategies over enterprise development, building a strong and competitive enterprise system in Vietnam; implementing the State‟s management through the legal system to avoid administrative interfering in the operation of enterprises and markets

For the field of investment-construction management, in 2015, the National Assembly promulgated a number of revised laws aimed at reforming administrative procedures and creating a development environment for construction investment management, such as: Real Estate Business Law No 63/2014 / QH13 on Nov, 25 th 2014; Housing Law No 65/2014 / QH 13 on Nov, 25 th 2014; Investment Law No

67/2014/ QH13 Nov, 26 th 2014 The investment policies have been improved toward intensifying monitoring and reducing the State's intervention in investment activities The promulgation of the revised laws above contributed to solving part of the shortcomings in real estate business market for the previous years which many investors encountered like: The steps of the investment preparation work are reduced, combining a number of steps of land hand-over procedure, height clearance, construction permits, cutting off the obligation of buy-sell transaction through a real-estate agent, defining the area of the apartment more specifically, protecting the rights of customers by requiring land developers to buy insurance for trading apartments, adjusting the land rental prices, supporting the Government agencies for ground clearance works etc

Some limitations: Although the Government has paid attention to removing some administrative procedures of the construction investment management, there are many limitations such as; overall planning work, a delay of planning approval, taking too long to get expertise feedbacks from the specialization authority departments for the application of investment, evaluation of detailed plans, evaluation of land using purposes, land allocation, determination of land using fees result in prolonging investment preparation period and affecting the opportunities of enterprises

Opportunities: Despite many difficulties, the current political environment of our country is positively changing, creating a lot of advantages for the construction

& investment, opening up a potential business market in the coming years

Laws and decrees related to construction and real estate business

- Real Estate Business Law No 63/2014 / QH13 on Nov, 25 th 2014; Decree No

76/2015/ND-CP on September 10, 2015 detailing the implementation of a number of articles of the Real Estate Business Law

- Housing Law No 65/2014 / QH 13 on Nov, 25 th 2014; Decree No

99/2015/NĐ-CP on December 10, 2015 detailing the implementation of a number of articles of the Housing Law

- Investment Law No 67/2014/ QH13 Nov, 26 th 2014; Decree No

118/2015/NĐ-CP on December 11, 2015 detailing the implementation of a number of articles of the Investment Law

- Land Law No 45/2013/QH13 on Nov, 29 th 2013; Decree No 43/NĐ-CP on May

15, 2014 detailing the implementation of a number of articles of the Land Law

Despite many difficulties and challenges of the world economy in 2017, the Vietnam economy has shown some positive signs compared to previous years

Domestic production has seen positive progress but still slow The country‟s real estate market has shown signs of warming up and no longer been frozen as the period 2012 – 2014

In the first quarter of 2017, there were 71 countries and territories having investment projects in Vietnam The Republic of Korea ranked first with a total investment of 3.74 billion USD, accounting for 48.61% of total investment;

Singapore ranked second with total registered capital of 910.8 million USD, accounting for 11.81% of total investment in Vietnam; China ranked third with total registered capital of 823.6 million USD, accounting for 10.68% of total investment capital At the same time, foreign investors invested in 52 provinces and cities, in which Bac Ninh was the most attractive province for foreign investment capital with a total registered capital of 2.61 billion USD, accounting for 33.86% of total investment Binh Duong ranked second with a total registered capital of 1.39 million USD, accounting for 18.04% of total investment Ho Chi Minh City ranked third with total registered capital of nearly 600 million USD, accounting for 7.78% of total investment capital (source: State Investment Department)

For the first six months of 2017, the flows of FDI into Vietnam's real estate sector have increased and the number of newly established enterprises has increased in most business sectors compared to the same period last year; in which, there were 2,279 real estate businesses, increased by 68.3% over the same period last year The registered capital of new enterprises of the real estate sector has been increased by 42.2% There are 76 established businesses each day in this field in average In addition, the number of enterprises that has returned to this sector also increased by 8.4% (257 enterprises) over the same period of 2016 Real estate business in Vietnam has attracted 618 projects, accompanied by a total capital of USD 50.99 billion (accounting for 16.6% of total investment capital), ranking second in attracting FDI capital behind manufacturing & processing industry (Source:

Investment Department - Ministry of Planning and Investment)

- Per capital income, economic growth and inflation control:

Vietnam's average income was at USD 2,200 in estimation in 2016 (approximately

50 million VND), higher than the 2015 per capita income of 45.7 million VND (USD 2,109) Standard & Poor's (S & P) has just released its new credit rating, affirming Vietnam's BB- / B rating, stable outlook This credit rating is unchanged since the S & P ratings announced in March, 2015

For the per capita income above, S & P estimated that Vietnam is a low average income country but the economy is relatively diversified and flexible

For the past two years, the plans and policies of social & economic development have been reasonably created for stabilizing the macro economy and controlling inflation at a low level S & P also said that macroeconomic stability remained relatively high, which positively affected exports and foreign direct investment.The Social-economic development plans and policies have been appropriate to stabilize the macro-economy and effectively controlled inflation at low levels

The export growth, the foreign direct investment, the stability and increase of remittances, and the comparative advantages in terms of labor costs over regional countries continued to be key factors that help to improve the balance of payments and competitiveness of the economy

STRATEGY PROPOSE, ANALYZE PROPOSE STRATEGY,

Strategy proposal

SO Strategies for the period: 2018 - 2022

Combination of strengths (S) and opportunities (O):

S1: Passion, strategic vision, and having good contacts with the authorities of the Company‟s leaders

S2: There are land funds (The land No.38 Dai Tu street, Hoang Mai, Hanoi; No 175 Tam Trinh Street, Hoang Mai District, Hanoi; No 166 Hong Mai Street, Hai Ba Trung District, Hanoi )

S3: Having experience in carrying out project investments(ICJC has had 20 years of real estate business experience so far)

S5: Competence in construction: ( With 57 years involved in the field of construction, ICJC has a lot of experience in the construction of civil, technical& industrial buildings as well as infrastructure development)

S7: The Company‟s brand name in the market (57 years in the field of construction&20 years of real estate business experience in Hanoi market)

O1: A stable political environment (Vietnam has a stable political environment, thus, there is less political risk affecting the real estate business environment.)

O2: The Government and the HPC encourage housing development(The Prime Minister issued Directive No 03 / CT-

TTg dated 25/01/2017 on boosting the development of social housing; Vice Chairman of Hanoi People's Committee Nguyen Ngoc Tuan signed Decision No 6336 / QD-UBND on approval of housing development plan of Hanoi in 2015 and the following years, period: 2016-2020.)

O3: The recovery of the real estate market (According to the analysis inSection 2.2.3 - Micro-environment analysis (sectorial environment), real estate market will overcome the quiet period and tend to develop strongly in the coming years.)

O4: Economic growth is stable O6: The demand for housing, especially for low-income housing is increasing (According to the analysis in Section 2.2.3- Micro-environment analysis )

O8: Management of construction investment has been improved, administrative procedures and the State‟s intervention has been reduced (According to the analysis in

Section 2.2.2.1-Political and legal environment ) From the analyzed strengths (S) and opportunities (O) above, the business strategy No.1 as following (S1, O1):

→The strategy for penetrating the real estate market of low income people

Combination of strengths (S) and opportunities (O):

S1; S2; S3; S5; S7 (As the analysis above) S4: Having a good relationship with banks and credit institutions (As analyzed in the Section 2.2.5- Assessment of the

S6: Capacity for machines & equipment for construction

(Table 2.4: the Company„s Equipment capacity)

O6: The demand for housing, especially for low-income housing is increasing (According to the analysis in Section 2.2.3- Micro-environment analysis)

O7: Per capita income is annually increasing (According to the analysis in Section 2.2.2.2- Economic environment)

From the analyzed strengths (S) and opportunities (O) above, the business strategy No.2 as following (S2, O2):

→ Continuing to develop and expand the commercial housing market

Combination of strengths (S) and opportunities (O):

S1; S3; S4; S5; S6; (As the analysis above) O2; O6; O8 (As the analysis above)

O9: The State is increasingly paying attention to investments in social housing; (The need of renovating old condominiums in major cities across the country is enormous; such as in Hanoi:

At the meeting of Hanoi People's Council, Chairman of Hanoi People's Committee, said: the requests for renovation of old apartments was set by the Government 18 years ago Currently, there are 76 old condominiums in Hanoi, with 1,597 buildings and more than 200 separate dwellings of ministries and authority agencies that have been sold under Decree 61 "For the past 15 years, the city has renovated 14 apartment buildings (less than 1%), this is a pressing issue” “The City leaders were really shaken when people are still living in those very old apartments If something goes wrong, there will be disasters,

From the analyzed strengths (S) and opportunities (O) above, the business strategy No.3 as following ( S3, O3):

→ The strategy for developing, renovating and investing in building old condominiums

WO Strategies for the period: 2018 - 2022

Combination of weaknesses (W) and opportunities (O):

W1: Marketing is not considered seriously for today's business environment

W2: Management work of the departments is not scientifically systematic

W4: The number of skilled workers on the payroll is low, greatly depends on seasonal workers

W7: Lacking professional training courses for staff

O3: The recovery of the real estate market (According to the analysis win Section 2.2.3 - Micro-environment analysis

(sectorial environment), real estate market will overcome the quiet period and tend to develop strongly in the coming years.) O4: Economic growth is stable (According to the analysis in Section 2.2.2.2- Economic environment)

O6: The demand for housing, especially for low-income housing is increasing (According to the analysis in Section 2.2.3- Micro-environment analysis.)

O7: Per capita income is annually increasing (According to the analysis in Section 2.2.2.2- Economic environment)

O8: Management of construction investment has been improved, administrative procedures and the State‟s intervention has been reduced (According to the analysis in

Section 2.2.2.1- Political and legal environment) From the analyzed weaknesses (W) and opportunities (O) above, the business strategy No.4 as following ( W1, O1):

→The strategy to improve management capacity and professional qualification of staff

2 ( W2, O2) W3: Technological level is not high, the system of machinery is

Combination of weaknesses (W) and opportunities (O):

W4: The number of skilled workers on the payroll is low, greatly depends on seasonal workers

W6: The efficiency of using capital and equipment is not high

From the analyzed weaknesses (W) and opportunities (O) above, the business strategy No.5 as following ( W2, O2):

→ Thestrategy for technological innovation and investments in appropriate equipment & machines

Combination of weaknesses (W) and opportunities (O):

W5: The financial capacity for implementing project investments is weak (ICJC is a state-owned enterprise, therefore, there are many restrictions on construction equipment investment, increasing charter capital to match financial condition to carry out large-scale projects and many mechanisms and policies)

From the analyzed weaknesses (W) and opportunities (O) above, the business strategy No.6 as following ( W3, O3)

ST Strategies for the period: 2018 - 2022

Combination of strengths (S) and threats (T):

S1: Passion, strategic vision, and having good contacts with the authorities of the Company‟s leaders

S3: Having experience in carrying out project investments (ICJC has had 20 years of real estate business experience so far) S5: Competence in construction: (With 57 years involved in the field of construction, ICJC has a lot of experience in the construction of civil, technical & industrial buildings as well as

S7: The Company‟s brand-name in the market (57 years in the field of construction & 20 years of real estate business experience in Hanoi market )

T2 With the international integration, foreign enterprises are investing heavily in Vietnam (According to the analysis in

T3: The competition in field of real estate business is increasing (According to the analysis in Section 2.2.2.2- Economic environment)

T5: Real estate investment is highly risky

T6: It is taking too long for an application process of investment to complete, which affects business opportunities

T7: Difficulties in the recovery of capital

T8: Customers require high quality, technique, art and progress

T9: It is difficult to control material supply sources and price movements

From the analyzed strengths (S) and threats (T) above, the business strategy No.7 as following ( S1, T1)

→ A good management and control for sustainable competitions

Combination of strengths (S) and threats (T):

S1; S3; S5; S7 (As the analysis above) S6: Capacity for construction machines & equipment ( Table2.4:The Company‟s machines & equipment capacity )

From the analyzed strengths (S) and threats (T) above, the business strategy No.8 as following ( S2, T2):

→ The strategy for joint-ventures, partnering and developing brand

WT Strategies for the period: 2018 - 2022

Combination of weaknesses (S) and threats (T):

W1: Marketing is not considered seriously for today's business environment

T5: Real estate investment is highly risky

T7: Difficulties in the recovery of capital

T8: Customers require high quality, technique, art and progress

From the analyzed strengths (S) and threats (T) above, the business strategy No.9 as following ( W1, T1):

→ The marketing strategy for expanding distribution network

Table 3.1: Strategy groups SO; WO; ST; WT

(Strategic management syllabus: Assoc Prof Dr Hoang Dinh Phi)

1 The strategy for penetrating the real estate market of low income people

2 Continuing to develop and expand the commercial housing market

3 The strategy for developing, renovating and investing in building old condominiums ( W, O )

1 The strategy for improving management capacity and professional qualification of staff

2 The strategy for technological innovation and investing in appropriate equipment & machines

1 A good management and control for sustainable competitions

2 The strategy for joint-ventures, partnering and developing brand

( W , T ) 1 The marketing strategy for expanding distribution network

Analysis of the proposed business strategies for Industrial Construction

1 The strategy for penetrating the real estate market of low income people

Although the real estate market during the last months of 2016 has been frequently receiving low-price housing projects, this supply seems not enough due to the very high demand, especially for the peak house buying season

In 2016, the market recorded a boom in supply; particularly for the high-end real estate segment The supply sources of high-end real-estate projects such as resorts and tourism structures and condominiumsexceeded market demand for this year according to the recognition of experts Meanwhile, the sources of affordable housing projects come with a price of under 1 billion VND / apartment just contributed a small amount to the market

According to real estate experts‟ opinion, the real-estate market trend of 2017 will focus on transactions for products priced from 1 to 1.5 billion VND In the face of the oversupply of high-end product lines, many large businesses in the real estate industry have begun to shift the direction to the development of middle-income housing However, the supply of these products is still limited in comparison to the current demand

Representatives of the Ministry of Construction said that: at the beginning of

2017, the market will possibly have a surplus of high-grade housing supply but lack of cheap housing for low-income people While developers are too focusing on development of high-end products, about 70% of market demand is concentrated in the mid-priced and lower segments; including the segment of commercial houses priced at less than 15 million VND / m2 which is also very scarce due to the low profit margin, which makes enterprises less interested in low-price housing projects

(Source: Ministry of Construction News)

Resolving housing problems for low-income people is an extremely pressing issue for the whole society This problem does not require an immediate solution; it requires time and reasonable methods to solve

Thus, it appears that cheap housing projects come with a great demand, but the number of these projects is quite limited and the possibility of a prompt increase in supply is quite low in the near future Therefore, the segment of affordable housing continues to be the target of many home buyers, especially for those who have real needs for housing

- Demand for low-income housing is enormous in the coming years It shall create opportunities for the Company to enter the market and develop the market And the segment of low-income housing shall be provided with preferential land use fees by the State

- The profitability of low-income housing investments is low and its sales procedures are complicated as they must be confirmed by the relevant authorities prior tomaking any transaction

- Land fund for the social housing is limited

2 Strategy for continuing to develop and expand the commercial housing market

After 20 years of joining the real estate market, Industrial Construction Joint Stock Company has accumulated significant experience ICJC‟s leaders have determined that real estate investment would become a key business of the Company's business structure due to the new era development trend Being aware of the rightness and feasibility of this movement, the Company's leaders have been focusing on developing a number of projects on the land which is owned by the company as well as researching and seeking to develop the land not owned by the company Since 1997, ICJC has successfully deployed a few projects and gained high capital efficiency, created jobs for other industries such as building construction, housing business, service exploitation For examples: Investing in Mai Huong residential area in 1998, Lac Trung residential area in 1998, Nhan Chinh housing & residence in 1999, Hong Mai housing & residence in 2000, Tran Duy Hung South-East urban area from 2004 to 2009, high-rise building and services at 71 Nguyen Chi Thanh St (one of the first high rise building projects in Hanoi with a height of 27 floors) from 2002 to 2006; Cau Tien High-rise Residential and Service Project 2010 to 2013; high-rise apartments and services building N04 from 2011 to 2015 These real estate projects have greatly contributed to the development of Industrial Construction Joint Stock Company in recent years The revenue of these projects generated a continuous increase in dividend yields; in 2014, the dividend payout ratio was 18%, the dividend payout ratio was 30% and 40% for2015 and 2016 respectively

In the current period, ICJC is continuing to carry out some commercial housing projects:

Dai Kim high-rise apartments& services project:

Scale of project: Two blocks of 25 floors (approved by Hanoi People's Committee)

ICJC has completed the preparation of investment and started construction

- It provides an effective use of land fund which is managed and used by the Company

- The real estate business is lucrative

- Creating jobs for traditional businesses such as construction and material trading, creating new businesses such as office lease & services, management of apartment buildings

- Large capital investment, especially for the investment preparation process and underground construction as it is not allowed to sell products during these periods

- The real estate business is risky; the market period of 2012 – 2014 is an example

- It is difficult to control fluctuations of input prices; leading to higher cost of capital

3 The strategy for developing, renovating and investing in building old condominiums

The need for renovation of old condominiums in major cities is enormous across the country, for example in Hanoi: At the meeting of Hanoi People's Council, Chairman of Hanoi People's Committee said: the general requirements of renovation were set up 18 years ago by the Government Currently, there are 76 old condominiums in Hanoi, with 1,597 buildings and more than 200 separate dwellings of ministries and authority agencies that have been sold under Decree 61

"Over the past 15 years, the City has renovated 14 apartment buildings (less than 1%), this is a pressing issue” “The City leaders were really shaken when people still living in those very old apartments If something goes wrong, there will be a disaster, "(Source: Dantri Newspaper)

Most of the difficulties of these projects are the investment budgets, process of renovation, reconstruction and development It is also difficult to balance the interests of the State, land developers and residents of these condominiums

According to the head of the Department of Planning and Architecture of Hanoi, the City‟s budget is not enough to renovate the old apartments, so the city plans to deploy in the direction of socialization (Source: Dantri Newspaper)

At the Ho Chi Minh City Investment Promotion Conference, representatives of the Planning Information Center of Ho Chi Minh City Planning and Architecture said that Ho Chi Minh City currently has approximately 500 condominiums that need to be renovated Therefore, the City is developing incentive policies and calling for investors to dismantle old buildings and build up new apartments

This is an opportunity for investors who want to participate in the real estate sector of the City In order to support enterprises, Ho Chi Minh City has been holding many dialogues between Authority agencies and enterprises; continuously reforming administrative procedures, simplifying and publicizing procedures for foreign investors as well as focusing on renovating the infrastructure (Source: VTV news)

Thus, in the present and subsequent years, the concern of the big cities‟ government, particularly for Hanoi and Ho Chi Minh City, is to call for the socialization of the old condominiums, remove difficulties of policies for investors to participate This is a great opportunity for businesses to invest in real estate in the coming period

- Old apartment building projects provide a great land fund and are located in convenient locations in the city center

- There is concern from the Central to local government

- It is difficult to do ground-clearance and make agreement of resettlement with residents

- There is not a specific policy of the State in supporting the implementation of such projects

- Restrictions on height of buildings which are located in the city center make it difficult to meet the efficiency of investors

- The technical infrastructure of these areas is not synchronized

1 The strategy for improving management capacity and professional qualification of staff

The quality of the staff is extremely important for the success of a business

Therefore, improving the quality of employees and management skills is an important task in the process of building and developing a business

Select a real estate business strategy for ICJC –the period: 2018 - 2022 99 3.4 Proposal of solutions to implement real estate business strategy of

Based on the analysis of the proposed strategy groups above and the advantages and disadvantages of the strategies as well as the current and future conditions of the Industrial Construction Joint Stock Company, I have selected the following strategies in order to successfully achieve the real estate business strategy of period 2018 - 2022 for the Company

1 The strategy for penetrating the real estate market of low income people

2 Continuing to develop and expand the commercial housing market

( W, O ) 1 The strategy for technological innovation and investing in appropriate equipment & machines

( S , T ) 1 The strategy for joint-ventures, partnering and developing brand

3.4 Proposal of solutions to implement real estate business strategy of Industrial Construction Joint-stock Company: the period 2018 – 2022

3.4.1 Vision for implementing the business strategy of Industrial Construction Joint- stock Company: the period 2018 – 2022

In the period from 2018 to 2022, Industrial Construction Joint Stock Company will continue to promote real estate business and gradually shift the role as a contractor to the role of an owner The real estate investment business shall take an important part in creating jobs for the construction field of the whole company In the near future, the Company shall be prioritizing the implementation of projects which are already under the investment preparation process such as: Dai Kim high-rise apartments and services; Sai Dong residence; and making joint ventures for carrying out the renovation of Giang Vo old condominiums to create jobs and increase the revenue of the Company

ICJC shall be attempting to finish the fiscal years with excellent business results and goals accomplishment such as: making a sharp reduction in short-term debt, increasing fund by retained earnings, and a reduction in management costs; achieving good performances in revenue, profit and competitive position

ICJC is trying to fulfill the Company‟s commitments to customers of the projects that are invested in by the Company regarding the improvement of living environment through enhancing technical infrastructures, supporting services, environment and social security

Satisfying 100% of customer demand, expressed through contractual commitments

In order to create higher value for customers, apart from the current products such as houses and residential areas, the Company will focus on developing a number of real-estate products so as to diversify the product range and increasingly satisfy the needs of customers as follows:

- Developing commercial housing products in the central areas of Hanoi

- Investing in housing and residential areas for low income customers

- Studying and applying new materials and technologies into construction and shortening construction time along with saving costs while still ensuring the commitments of quality to customers

In order to achieve the goal of creating value for employees, in addition to ensuring employees‟ incomes, bonuses and benefits and prospect of jobs, the Company must achieve the following two important goals:

- The objective of providing high-quality training programs to enhance management capacity, specialized skills, and suitability for business operations

- Second, building the Company‟s culture based on the core values recognized by every member of the Company

Actively fulfill the role of a good citizen to the social community and the Nation, substantially contributing to the process of building a new image for Hanoi Paying taxes in full; the Company seriously abides by the tax obligations stipulated by the State

3.4.2 Objectives for implementing the business strategy of Industrial Construction Joint-stock Company: the period 2018 – 2022 a) Short-term objective for 2018

- Turnover of real-estate business: 280 billion VND(46.6%)

- Equipment and machinery investment: 18 billion VND

- Average income (person / month) 7.5 million VND

- From 2018 to 2019: Finishing the apartment handover process and issuance of Certificates of land use rights and ownership of properties on land as well as settlements of N04 apartments & services high-rise complex

- Completing the settlement of investment capital for technical infrastructure project of South-East urban area of Tran Duy Hung street, Cau Giay district, Hanoi and handing over infrastructure to local authorities under the direction of the Hanoi People's Committee

- Executing the construction of residential housing project at No 85 Sai Dong, Long Bien District, Hanoi in 2017 Organizing handover process and settlement of the project in 2018 b) Long-term objective: the period 2018 - 2022

- Accelerate the investment procedures of Dai Kim high-rise apartment building such as: approval for master plan and architectural plan, procedures for land allocation, determination of land use fees, establishment of detailed technical designs, shop drawings and building permit; all shall be done no later than the fourth quarter of 2018 The construction execution shall be started from 2019 to 2022

- Continue to study the project at: 175 Tam Trinh street, Hoang Mai district, Hanoi and 166 Hong Mai street, Hai Ba Trung district, Hanoi in the year of 2018

3.4.3 Solutions for achieving business strategies

Solutions are tools for implementing business strategies Solutions consist of: guiding principles, instructions, rules and procedures to support efforts to achieve goals Solutions to be proposed are as following followed:

Development of human resource is in the direction of continuously improving management capacity and qualification capacity of personnel; controlling and renovating the management process to suit the real conditions of each specific project; strengthening supervision and control to reduce construction costs

The Company has to pay special attention to strengthening and replenishing the lack of resources and the weakness of departments and construction units The Company also must have a plan for reorganizing the workforce according to the needs of each business activity In order to improve the quality and skills of the personnel, the Company needs to focus on maintaining internal training through daily work combined with external training (as expected by employees)

ICJC should be establishing close relationships with universities, vocational schools to order training courses as well focusing on the lack of technical workers and qualified engineers to meet the requirements of hum an resource for each period of business

Recommendation

Currently, companies operating in the field of real estate business are facing many difficulties in the process of production and business due to the lack of synchronization of the legal system related to the real estate market From the construction investment, real estate transactions to the management of real estate use, there are provisions in various documents that are overlapping, many regulations do not keep up with the development of the field as well as the fact that many problems arise but are slowly studied, amended, supplemented and perfected

In order to develop the industrial joint stock company in an active, open and sustainable manner, the author makes a number of recommendations

Recommendations to the Government and local authorities:

Further simplification of procedures, records from the start of the project to the acceptance of completed works put into use The process is too complicated for procedural documents that sometimes takes a lot of time, sometimes years, during the implementation of the project, not only causes trouble for the Company,in terms of expense but alsonegatively affects the quality and progress of the project

Consolidate the laws, the Law on Real Estate Business, the Housing Law, the Investment Law, the Land Law, the Construction Law as a stable and solid basis, and increase the safety of companies operating in Real estate business

Adopt appropriate inflation control policies to avoid the continuous price increase of construction materials in order to reduce the damage to companies in the industry and anxiety to investors when deciding to build a construction With imported materials, there should be a tax reduction policy and a stable exchange rate to make the materials more affordable, so that customers can increase their choice of goods at an affordable price

Provisions on the land use levy of the project should be based on the progress of capital collection of the investor instead of a lump sum after the current determination of unit price

Change the method of calculating land use levies by the present method as there are many inadequacies in determining the revenue and cost of the project

Propose not to collect land rent to build roads, infrastructure of condominium projects, create conditions for real estate businesses to invest

Suggest the Government issue specific regulations and support enterprises in renovating and building old apartment buildings

Thegovernment shall adopt policies to create conditions for social housing development in order to step by step improve houses for social policy beneficiaries, civil servants, armed forces and low-income people, contributing to Political stability, social security

Create legal corridors and conditions for real estate transactions to be facilitated, publicized and transparent in the real estate market Enhance the management and control of the real estate market, the State shall manage the real estate market by means of legal instruments The State actively regulates the real estate market as a representative of land owners, regulate the supply of primary land use rights in the market and the flexible use of tax and fiscal policies

Strengthen the State management role in the efficient exploitation and use of land resources The State proactively regulates the supply of real estate through sectorial development planning, urban planning and planning, especially controlling the supply of land to the primary market through the allocation of land, leasing land, changing land use purposes

Restructure the real estate market, develop multiform of real estate goods, especially residential real estate properties, including apartment houses, individual houses; commercial housing, social housing; housing for sale, housing for lease, affordable housing for different groups in the society, overcome the situation of supply – demand mismatch in housing development The State shall actively provide and adopt preferential policies and encourage all economic sectors to participate in the development of social houses for social beneficiaries develop and create conditions for financial institutions, such as real estate investment funds, real estate trusts, housing savings funds, to develop and attract capital to the real estate market Flexibly adjust the credit and fiscal policies to facilitate medium and long- term capital for market participants, help businesses and citizens, especially for social beneficiaries, low income people have access to credit for the purpose of housing improvement improve policies on taxes, fees and charges related to real estate to encourage the efficient use of real estate properties, reduce speculation and tax evasion as well as increase revenue for the Country

Buildan information system for the real estate market as a basis for effective policy and market management

Limitations of the thesis

Due to time limit, the author's thesis will be inevitably limited

The business field of Industrial Construction Joint Stock Company are diversified, when discussing the scope of research to select the business strategy, the author concentrates only on real estate business research of Industrial Construction Joint Stock Company from 2018 to 2022 Therefore, the thesis lacks thecompletenessof the overall business strategy of the company

- Due to time limit, the data collection for reference and analysis in the thesis is notsufficient and varied

- The conclusions on the selection of real estate business strategies from 2018 to 2022 were researched based on both business theory and practice of the company The author needs to do more reaearch on building the real estate business strategies for the upcoming years

Over the past 57 years of establishment and development, Industrial Construction Joint Stock Company has got the brand products in the market and developedinto a strong business in the field of real estate, and construction

However, as other enterprises are operating in the territory of Vietnam, the Company has encountered difficulties and challenges with the lack of long-term strategic thinking which causes the enterprise to risk losing imbalance in the process of development, andpassively react to changes in the market

In order to bring into full play all its strengths as well as overcome all the difficulties and minimize the weaknesses and challenges, it is the sum of many factors, but the key element throughout the process is the formation of Appropriate business strategies which are the guidelines for all the activities of the business in the right direction to bring the highest business efficiency to the Company

Regarding building a real estate business strategy for Industrial Construction Joint Stock Company, the thesis has analyzed and assessed in detail the business environment, the real estate market, the production and business operation of ICJC.With the desire that based on the theories learned , the application of theories of competition, models of competitive strategy development, models of external environmental analysis, analysis of the internal environment of enterprises and EFE, IFE, SWOT matrices, the thesis has built real estate business strategies for Industrial Construction Joint Stock Company from 2018 to 2022:

- Strategy to enter the real estate market for low income consumers

- Strategy for further development and expansion of the commercial housing market

- Strategy for technological innovation, and investment in appropriate equipment

- Strategy for joint venture, association, brand development Because the real estate business environment is always changing and cyclical, the strategies and solutions to implement the strategy should be selected with the actual situation of the Industrial Construction Joint Stock Company

The thesis of "Built a real estate business strategy for Industrial Construction Joint Stock Company from 2018 to 2022" is necessary to help the Board of Directors of ICJC get a comprehensive overview, and accurate thinking in the construction and selection of appropriate business strategies as well as offer solutions to implement that strategy, enhance the competitiveness of the Industrial Construction Joint Stock Company, build the brand, make the company grow in the market of real estate business and construction of the country

1 Lecture notes: Strategic management and plan: Assoc Prof Dr Hoang Dinh Phi

2 Le Van Tam (2000), Strategic Management Textbook; Statistical publisher

3 Hoang Van Hai; Strategic Management Textbook; Vietnam National University Hanoipublisher

4 Phan Thi Ngoc Thuan (2005), Business Strategy and Internal Business Plan, Science and Technology Publisher

5 Charrles W.L.Hill and Gareth R Jones (1995), Strategic Management;

6 Fred R.David (2000), Concept of Strategic Management; Statistical publisher

7 Garr D Smith, Danny Putti (1996), Strategy and Business Strategy, National Political publisher

8 Philip Kotler (1997), Marketing Management; Statistical publisher

9 Dao Duy Huan (2007), Strategic Management in Economic Globalization; Statistical publisher

10 Garry D Smith, Danny R Arnol, Bobby G.Bizzell (1997), Strategies and Business Strategies; Statistical publisher

11 All figures and information are based on reports and statistics of the Company; as well as based on all references, newspapers, statistical data of the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, and the office of Hanoi People‟s Committee

Appendix 01: Survey form SURVEY FORM

For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, and to complete a Master thesis on

“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”

I would like to send you this survey form

I look forward to your ideas Your faithfully

Please fill in table below

Question1: Based on your opinion, what are the external elements related to Real – estate business of ICJC ?

2 Housing demand is increasing sharply

3 Human resources supply is plenty and cheap

6 Payback speed 7.Prices fluctuate, difficult to control, dependent on suppliers

8 The business environment of the economy

For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, andto complete a Master thesison

“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”

I would like to send you this survey form

I look foward forwardto your ideas Your faithfully

Please fill in table below question2: Based on Your opinion, which are the external elements that willaffectthe real- estate business of the company?

Elements Strong Above avarage Avarage Few

2 Housing demand is increasing sharply

3 Human resources supply is plenty and cheap

6 Payback speed 7.Prices fluctuate, difficult to control, dependent on suppliers

8 The business environment of the economy

For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, and to complete a Master thesis on

“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”

I would like to send you this survey form

I look foward forward to your ideas Your faithfully

Please fill in table below question3: Based on your opinion, what are the internal elements shown in table below will affect the Real – estate business (Please allocate 100 points in all the elements)

1 The leadship are enthusiastic and have stratergic vision, have good relations with authorities

2 There area great number of projects and grounds to implement

3 Experienced in implementing investment projects

4 In good relationship with banks and credit agencies

6 Ability of Equipment for construction

8 Management at departmental level is not systematic

9 Financial ability to carry out investment projects

10 Time to carry out projects affects profit and oppotunity

11 The number of workers is low and dependent onseasonal workers

13 Efficiency in using fund and equipment

For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, and to complete a Master thesis on

“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”

I would like to send you this survey form

I look foward forward to your ideas Your faithfully

Please fill in table below question 4: What do you thinks about the internal elements shown in list below will impact to real-estate business plan for Industrial Construction Joint-Stock Companyand How

Element Strong Above avarage Avarage Few

1 The leadship are enthusiastic and have stratergic vision, have good relations with authorities

2 There area great number of projects and grounds to implement

3 Experienced in implementing investment projects

4 In good relationship with banks and credit agencies

6 Ability of Equipment for construction

8 Management at departmental level is not systematic

9 Financial ability to carry out investment projects

10 Time to carry out projects affects profit and oppotunity

11 The number of workers is low and dependent onseasonal workers

13 Efficiency in using fund and equipment

Addendum2: General investigate result Table 1: General assessments important level and environment internal impact Assessment votes

Impact to company total votes

Total Averag e point (Excha nge)

1 The leadship are enthusiastic and have stratergic vision, have good relations with authorities

2 There area great number of projects and grounds to implement

3 Experienced in implementing investment projects 10 0.1 1 8 1 0 30 3 0.3

4 In good relationship with banks and credit agencies 5 0.05 0 9 1 0 29 3 0.15

6 Ability of Equipment for construction 7 0.07 0 7 3 0 27 3 0.21

8 Management at departmental level is not systematic 5 0.05 0 2 8 0 22 2 0.1

9 Financial ability to carry out investment projects

10 Time to carry out projects affects profit and oppotunity 7 0.07 4 6 0 0 34 3 0.21

11 The number of workers is low and dependent onseasonal workers

13 Efficiency in using fund and equipment