Building the business development strategy for passenger transport on island routes in Quang Ninh province for HAVACO JSC during 2025-2030 = Xây dựng chiến lược phát triển kinh doanh vận tải hành khách các tuyến
Research Rationale
In the era of globalization, bilateral and multilateral cooperation between governments and businesses is growing strongly, while competition between businesses is increasingly fierce and complex In order to survive and develop, businesses need appropriate business strategies in the context of their limited resources Business strategy is extremely important for the survival and development of a company It sets out major objectives, mobilizes short-term and long-term resources, and ensures that business plans are directed in the right direction A good business strategy helps businesses dominate the market, expand market share, improve business efficiency, establish a solid and secure position, and proactively adapt to changes in the business environment Competitive strategy helps businesses to capture and utilize market opportunities effectively and to gain competitive advantages in the market by applying the limited resources of the company to achieve the set objectives It helps businesses better prepare to reduce risks related to changes in the business environment and to control market developments
Havaco Investment Joint Stock Company is currently evaluated as one of the leading companies in the field of tourist transportation to Co To Island; however, there is no specific business strategy Havaco's business now arises naturally from the undirected passenger needs of the service provider and its passive response to competitor policies Therefore, the topic " Development of business strategy for tourist transportation to the island of Havaco Company in the 2025-2030 period " is necessary The author wishes help Havaco Company establish its vision and mission, identify opportunities that need to be grasped, strengths that need to be promoted, and at the same time recognize potential challenges and weaknesses that need to be overcome The research topic also identifies the limited resources currently available to Havaco Company and explores how these resources can be used most effectively to gradually expand market share and develop sustainably in the period from 2025 to
Research situation related to the thesis topic
The thesis topic "Developing a business strategy for Decotex Company's curtain products in the Vietnamese market until 2015" by author Huynh Thi Thien Chung: The thesis used the QSPM matrix to analyze the selection of applying blue ocean strategy However, the value chain the author built for the development of the company's curtain products strategy did not add new value, but only relied on current factors in the industry The construction and direction of the strategy also did not entirely rely on the foundational theory of "blue ocean strategy" such as: the 4 action framework, redefining market boundaries, target customer segments
The thesis topic "Developing a business strategy for Saigon Transportation
Mechanical Corporation's bus products from 2011 to 2020" by author Pham Vo Loc:
The thesis analyzed SWOT and QSPM matrices to choose and build a strategy However, buses are a product that not only simply affected by market supply and demand but also depended heavily on the State's development strategy for the transportation system Therefore, the choice of the business strategy for this thesis will be greatly influenced by the macro-environment
The thesis topic "Solution for building the Vifon brand in the 2008-2012 period" by author Nguyen Van Ut: Although this is not a research project about business strategy, the abundant and valuable data can serve as a valuable reference for my thesis topic
The thesis topic "An investigation of the strategic approach of a retail organization and study the blue ocean opportunities - A case study of Wilkinson Retails, UK" by author Gopinath Bukke: The author studied Wilkinson's competitiveness strategies to compare with blue ocean strategy From there, they came to the current conclusion that Wilkinson is focusing on the low-cost strategy rather than differentiation At the same time, with the characteristics of the retail industry in the UK, the author suggested that Wilkinson should change towards a blue ocean strategy Although the thesis did not about building a strategy, the way the author gathered and analyzed data to discover whether a company is pursuing a blue ocean strategy or not can be a valuable reference when constructing business strategy according to the blue ocean strategy theory
Research objectives
Contribute to perfecting the business strategy to enhance business efficiency, create high and sustainable development capabilities for the Company in the future
Systematize the theoretical and practical aspects related to the company's business strategy planning
Evaluate the current state of business operations and the company's business strategy
Propose solutions to improve the company's business strategy for the 2025 - 2030 period to enhance the Company's business operations' effectiveness.
Research subjects
The research topic focuses on issues related to business strategy at Havaco
Company and some business competitors in the same industry in Quang Ninh province.
Scope of research
Due to the wide range of business strategy planning, this thesis will only focus on researching the application of some analysis models to propose a business strategy for the company and build a business strategy for the company in the period 2025-
Research method
- Approaches: The research topic utilizes a combination of approaches such as individual approach, historical approach, qualitative approach, and quantitative approach
- Data processing and analysis approach: The research utilizes descriptive, analytical, and synthesis statistical methods when evaluating the business operation results of Havaco
Company; Utilizes SWOT analysis matrix, external factor evaluation matrix (EFE), internal factor evaluation matrix (IFE), and quantitative strategic planning matrix to assess the strengths, weaknesses, opportunities, and threats of Havaco Company
- Sources of information: The research uses information from textbooks, research documents, theses of some domestic and foreign authors as reference materials for the thesis
Additionally, the thesis also uses some books, newspapers, the internet, etc
Comment [A3]: Bổ sung cả Câu hỏi nghiên cứu
Thesis Structure
In addition to the introduction, conclusion, bibliography, the content of the Thesis is structured into 3 chapters:
Chapter 1: Theoretical basis of business strategy of enterprises
Chapter 2: Overview of Havaco Company and the current status of business strategic planning at Havaco Company
Chapter 3: Some solutions to implement the development of business strategy at Havaco until 2030
THEORETICAL BASIS OF BUSINESS STRATEGY OF
Theoretical basis of business strategy
The term "strategy" originated from the military field, indicating long-term and comprehensive plans based on the certainty of what the opponent can or cannot do Hence, the term "business strategy" was born, according to the traditional view, strategy is the identification of the basic long-term goals of an organization, then specific action programs are developed along with the rational use of resources to achieve the set goals
According to Hofer and Schendel, the basic characteristics of the game that a business performs in its business environment are called strategy
Glueck sees strategy as a unified plan (it links all parts of the enterprise together); comprehensive (it covers all areas of the business) and linked together (all parts of the plan are compatible with each other), and it is designed to ensure that the basic goals of the business are achieved
According to Alfred Chandler: "Strategy includes the basic long-term goals of an organization, as well as selecting methods or action processes, allocating essential resources to achieve those goals"
According to William J Glueck, "Strategy is a unified, comprehensive and coordinated plan designed to ensure that the basic goals of the organization are achieved"
According to Fred R David, "Strategy is the means to achieve long-term goals
Business strategy may include geographic development, diversification of activities, ownership, product development, market penetration, cost cutting, divestment and joint ventures"
According to Michael E Porter, "Strategy is the art of building sustainable competitive advantages for defense"
From these studies, we can understand that "Strategy is a set of decisions (goals, directions, policies, methods ) and action principles to achieve long-term goals, enhance the strengths, overcome weaknesses of the organization, helping the
6 organization to accept opportunities and optimize overcoming external risks". Strategic levels
From the perspective of a national economy, strategy can be distinguished into different levels:
- National socio-economic development strategy, strategy for the development of regions, provinces, and cities
- Sectoral development strategy, development strategy for other socio-economic fields: Industry development strategy, agricultural development strategy, service
- Company (enterprise) development strategy, also known as business strategy of the company The scope of the study of this topic is the business strategy of the enterprise, which can be carried out at three basic levels: Company level, business unit level, and functional department level
The company-level strategy identifies the business activities in which the company will compete and allocate resources among those business activities in the long term to achieve the company's goals For example: Concentration growth strategy (market penetration, market development, new product development), diversification growth strategy (concentric, horizontal, conglomerate), joint venture strategy
The business unit-level strategy is developed to determine the specific product or market type for the company's own business operations, and it determines how a company will compete with a business operation along with its known position among its competitors The business-level strategy within a company can be a business sector or a type of product This strategy aims to orient the development of each sector or type of product to contribute to the company-level strategy, and it must identify the advantages of each sector compared to the competitors to determine a suitable strategy for the company-level strategy
The strategy of a business is a set of long-term and profound decisions affecting its position in the environment and the role of the business in controlling the
7 environment The strategy of a business includes many functional strategies, of which
P Y Barreyre (1976) introduced six functional strategies, in which production and trade strategy play a central role, serving as the basis for building other functional strategies:
The marketing strategy is a set of long-term policies determining the business's position in the market
The financial strategy is a set of policies aiming to ensure the compatibility between the financial needs to pursue trade objectives and the conditions set by the capital market
The production strategy is a set of policies aiming to determine the type of products to produce, the quantity of each type of product, and the allocation of means or production resources to effectively supply products to the market
The social strategy is a set of policies establishing the behavior of the business toward the labor market and the broader economic, social, and cultural environment The technology innovation strategy is a set of policies aiming to research and develop new products, new technologies, and improve existing products and technologies in use
The procurement and logistics strategy is a set of policies aiming to ensure that the business "buys well" and uses material resources efficiently from procurement to production and product consumption If the marketing strategy is aimed at "selling well," then procurement strategy aims to "buy well," and "buying well is as important as selling well."
Company-level, business unit-level, and functional-level strategies are linked together to form a complete business strategy of a business These strategies impact each other This strategy is a prerequisite for building other strategies and implementing one strategy will affect the implementation of other remaining strategies
1.1.2 The concept of business strategy (SBU level)
The business strategy at the Strategic Business Unit (SBU) level in a company can be a business sector or a product category This strategy aims to guide the
8 development of each sector or product category to contribute to the completion of the company-level strategy It is essential to determine the advantages of each sector over competitors to develop a suitable strategy aligned with the company-level strategy, such as differentiation strategy, low-cost strategy, defensive strategy to consolidate the market, or offensive strategy to develop the market In a fiercely competitive market economy, the marketing strategy is considered the core of the SBU level and plays a connecting role with other functional strategy departments
An SBU is a business unit that creates products services to serve a specific group of customers The SBU has input supply activities and independent research and development activities that are relatively independent of other departments in the enterprise A company may have multiple SBUs or only one SBU Several businesses may merge to form one SBU
- A single-sector business's strategy is the SBU-level strategy, which means there will be only two levels of strategies (the business-level strategy and the functional- level strategy)
- A diversified business will have three levels of strategies (business-level strategy, SBU-level strategy, and functional-level strategy) Each SBU needs its own business strategy, known as the SBU-level business strategy, which is attached to a product-market pair
* The role of SBU-level business strategy
SBU-level business strategy only concerns activities and concerns in one operational field of the organization SBU-level business strategy aims to strengthen the competitive position and cooperation of the operational field SBU-level business strategy answers the following fundamental questions:
What are the basic objectives that the business unit needs to achieve?
What are the competitive advantages based on the competition?
What are the cooperation methods based on which advantages?
1.1.3 The role and importance of developing a business strategy
- Business strategy helps organizations define their objectives and direction for each period, providing a guiding compass for all of the organization's activities It
9 allows organizations to be proactive rather than reactive in defining their future
- The development of a business strategy will ensure that all members of the organization understand what needs to be done and are committed to achieving it This can create support and leverage the existing of employees within the organization and clarify the responsibility of each individual
- Business strategy helps organizations leverage their competitive advantages in the market to create a competitive edge, thereby helping members of the organization maintain a positive attitude towards external environmental changes
- Business strategy helps organizations effectively utilize intangible assets and tangible assets
- Business strategy is the foundation and basis for choosing business plans investment plans, technology innovation, and market expansion
The process of developing business strategies of enterprises
The first stage of developing a plan is to establish the mission of the enterprise The business mission of an enterprise is defined as the purpose of the enterprise's business activities The business mission answers the question: “Why does the enterprise exist and conduct business activities in the market?” Business strategy objectives are defined as the accomplishments that the enterprise needs to achieve when pursuing its mission over a relatively long period of time (over a year) Long- term goals are essential for the success of the enterprise because they reflect the results that the enterprise needs to achieve when pursuing its business mission, support the evaluation of achievements, and create capabilities to promote business activities An important requirement in determining strategic objectives is to ensure that the objectives are reasonable Next, it is necessary to identify a certain list of key objectives that have the most meaning At the same time, they need to be arranged in some priority order, rather than providing an unordered list of objectives
Studying, analyzing, and evaluating the macro-environmental factors of an enterprise play an important role in the process of building a strategy because it affects all the subsequent steps of the strategic management process and the development and selection of strategies Evaluating external factors will help the enterprise to identify important opportunities and threats so that the company can develop strategies to maximize opportunities and minimize the impact of threats The macro-environment of the enterprise is the circumstances in which the enterprise operates and conducts
11 business activities In environment, the enterprise is subject to the impact of external factors on its business activities The majority of these impacts are objective and beyond the control of the enterprise, which can only adapt to them
The macro-environment is the general factors influencing all business industries and enterprises Changes in the macro-environment can directly affect any force in the industry, thus changing the relative strength of other forces and, ultimately, changing the attractiveness of an industry The factors analyzed in macro-environmental analysis generally include:
Economic environment: has a tremendous influence on business units The effects of the economy on a company can change its ability to create value and income Important factors in the macroeconomic environment are: economic growth rate, interest rates, balance of payments, financial and monetary policies, economic cycles, unemployment rate, exchange rates, inflation rate Each of these factors can be an opportunity for the enterprise but can also become a risk and a threat to its development Therefore, the enterprise needs to carefully study the economic environment to recognize changes, trends, and strategic implications, thereby making forecasts for the main trends of the future environmental changes
In Vietnam, the socialist-oriented market economy has exerted its positive effects Our country, with continuing policies of openness and foreign investment in Vietnam's development, has joined the WTO and has many new opportunities for development, but also faces new threats with more competitive rivals
Political-legal environment: Political and legal developments have a strong impact on businesses Companies need to carefully analyze the relevant policies of the state administration such as import-export policies, tax policies, pricing policies, trade policies, and labor wages These policies may increase or decrease their impact on the operations and profit potential of an industry or company depending on their consistency and openness These policies are institutionalized into laws and have legal effectiveness for business operations These laws can create opportunities or risks for businesses, and sometimes even decide the existence and development of an organization These policies create an increase or decrease in risk depending on their
12 consistency and openness The level of political stability and sustainability of the government are also environments that can create opportunities or risks for businesses and sometimes decide the existence and development of each organization In general, organizations operate because the social conditions allow it When society no longer accepts certain conditions and certain practical contexts, society will withdraw that permission by demanding government intervention through policy or legal systems
Socio-cultural environment: Cultural values and social attitudes make up the foundation of society, so they often lead to changes in technological, political-legal, economic, and demographic conditions Companies need to analyze a broad range of social factors to determine potential opportunities and threats Changes in one of the many factors can affect the business, sales, typical patterns, social behavior patterns, lifestyle quality, and business communities These social factors often change or progress slowly, making them difficult to recognize Therefore, very few businesses can recognize these changing trends, anticipate their impact, and develop appropriate strategies
Demographic environment: is one of the important factors that have a great influence on the business of enterprises, because people are the force that creates the market It can be an opportunity but at the same time there are potential risks for businesses in terms of labor resources and consumption markets In this environment, the factors businesses are deeply concerned about: the size and rate of population growth in cities, regions, countries, population distribution, age structure, education level, household model The population explosion is a concern for various governments and organizations around the world Because the earth's resources are limited, it is impossible to guarantee life for such a large number of people, especially with the standard of living people aspire to have Experts say that by 2050, the world's population will reach 8 billion people Projections in terms of population show the global population challenges of the 21st century and opportunities for entrepreneurs
Natural environment: Entrepreneurial enterprises have long recognized the impact of nature on their business decisions These natural factors include: energy, geographical location, climate, weather, natural resources such as minerals, oil, coal,
13 metals, forest resources, water resources These resources are becoming increasingly scarce and depleted while the demand for them is increasing Therefore, being aware of issues related to the natural environment helps managers better control their business strategies, make rational decisions and contribute to environmental protection
Technological environment: An important force, shaping human life is technology With a pervasive and diverse space, technological changes impact many parts of society These impacts are primarily through new products, technological processes and materials One of the most important impacts of technological change is that it can impact height and barriers to entry and reshape industry structure at its roots The technological knowledge is especially important Grasping and knowing how to timely apply this new knowledge and technology will help businesses gain an advantage in the market At the same time, businesses must regularly reassess their own technology level, invest in the field of research and development of new products to avoid the risk of their products being outdated directly or indirectly Currently, the process of economic development in the world has changed a lot A global economy is being clearly formed and has a great influence on the development of countries In terms of economic development, this is a great challenge, but also an opportunity for Vietnamese businesses to rise strongly if they know how to take advantage of opportunities The process of globalization always has two positive and negative sides
It gives Vietnamese enterprises the opportunity to expand markets, increase capital and investment flows, quickly access modern advanced technologies and techniques and opportunities to access and learn advanced experiences and management skills of the world At the same time, Vietnamese enterprises also face many challenges when integrating into the international economy, especially the fierce competition from outside In fact, Vietnamese enterprises have revealed many weaknesses when entering the threshold of integration, the weakest point is that businesses have not created an ability to play on a modern and civilized playground Show: First, Vietnamese enterprises still focus on short-term investment rather than having a long-term vision Secondly, it is a market economy, a competitive economy, the globe is now a whole
14 production network, a huge value chain, besides knowing how to compete, businesses must know how to link, which only a few businesses can do In addition, there are inadequacies in infrastructure and human resources, especially qualified human resources, weak institutions and incomplete legal mechanisms, legal implementation sanctions also have many issues to consider In such conditions, Vietnamese enterprises need to develop a strategy to both take advantage of external resources and promote internal resources, create a competitive advantage in the regional and world markets, prevent negative external impacts so that they can position themselves in the domestic and foreign markets
ENVIRONMENTAL ANALYSIS AND BUSINESS STRATEGY
Overview of HAVACO Company
2.1.1 History of formation of HAVACO Company
Name: HAVACO INVESTMENT JOINT STOCK COMPANY
Head Office: No 34, Zone 9, Cai Rong Town, Van Don District, Quang Ninh Province
Website: https://havaco.com.vn/
Fanpage: Tàu cao tốc Havaco/ Havaco Cruise/ Cao tốc Tuan Chau Express
Email: havaco.com.vn@gmail.com/ havacocruise@gmail.com
First representative: Doan Thi Thuy Hanh – Position: Chairman of the Board of Directors
Second representative: Pham Thanh Tung – Position: General Director
Business registration certificate number 5701778732 issued by the Department of Planning and Investment of Quang Ninh province on October 5, 2015
HAVACO Investment Joint Stock Company (HAVACO) was established in October 2015, mainly operating in passenger transportation by waterway Currently, HAVACO owns the largest 2-hull Cataraman high-speed boat fleet in Quang Ninh province, operating mainly in the area of Ha Long Bay - Bai Tu Long Bay - Van Don -
Co To archipelago, with SB and *VRH HSC II (sea-going vessels) ranging from 80 to
300 seats: Havaco 01, Havaco 02, Havaco 19, Tuan Chau Express I, Tuan Chau Express II, Tuan Chau Express III
The vehicles are designed to European standards using the most modern and advanced technology in the world, operating to transport visitors to far-off islands from the mainland at a maximum speed of up to 28 nautical miles/hour and can
31 operate in harsh weather conditions (only stopping when a direct typhoon hits) Tuan Chau Express high-speed boats use Rolls-Royce's famous propulsion equipment and aluminum alloy hulls from Italy; the boats have high stability and open decks to minimize seasickness
The economy class cabin is spacious, luxurious, and equipped with facilities designed to meet the needs of passengers, similar to that of an airplane cabin The seating system is capable of reclining up to 130 degrees with premium upholstery and noise-reducing floors, suitable for both elderly and young passengers The business class cabin is equipped with a separate entertainment screen with a variety of rich content and a sound system with wireless headphones The outdoor deck can accommodate up to 50 people for passengers to comfortably admire the scenery, take Photos throughout the journey
The company is always striving to build sustainable trust in customers, partners, the community, shareholders, and every employee to bring them the highest values through:
- Providing customers with suitable quality products and services, competitive prices, on-time delivery, and safety
- Learning, building, and improving the organization to become the most reliable, professional, and efficient partner in the Vietnamese market
- Being responsible for protecting human health, especially in tourism activities
- Building the best working and career development environment for all employees The growth of the company is always associated with improving the quality of life and work of each member in the company
Passenger road transport within and outside the city (except for bus transport) Other passenger road transport
Coastal and ocean passenger transportation
Coastal and ocean freight transport
Warehousing and storage of goods
Direct support services for railway and road transport
Direct support services for waterway transport
Other related transport support services
Diagram 2.1 Organizational structure of the company
Board of Directors: Consisting of 3 members, including 1 person who is the Chairman of the Board of Directors of the Company and 2 members This is the management agency of the company, with full authority on behalf of the company to decide and implement the rights and obligations of the company that do not fall under
Head of General Sales Department
Salesperson/Treas urer/Accountant/Administrative Staff
34 the jurisdiction of the General Meeting of Shareholders; decide on expenses of VND
100 million or more; elect, dismiss, and remove the Chairman of the Board of Directors; appoint, dismiss, sign contracts, and terminate contracts with the General Director, Deputy General Director, Chief Executive Officer, Chief Financial Officer/Chief Accountant
Supervisory Board: Comprising 3 members, responsible for supervising the
Board of Directors, the General Director in managing and operating the company; examining the rationality, legality, and accuracy of in managing, operating business activities; appraising the completeness, legality, and accuracy of the company's annual and six-month business situation report, the report assessing the management work of the Board of Directors; reviewing, inspecting, and evaluating the effectiveness and efficiency of the company's internal control system, internal auditing, risk management, and early warning; recommending the Board of Directors or the General Meeting of Shareholders to amend, supplement, improve the organizational structure, management, supervision and operation of the company's business activities; having the right to attend and participate in discussions at the General Meeting of Shareholders, Board of Directors and other meetings of the company
General Director: Responsible to the Chairman of the Board of Directors, the Board of Directors, and the law for implementing the assigned rights and duties; manages and oversees all business activities, personnel, and cooperation activities of the company; develops strategies, business plans, and operations to promote the development and increase profits of the company; develops and submits to the Board of Directors for approval: Development strategy, long-term, medium-term, and annual plans; draft Charter, supplementary draft Charter; Plan to adjust the charter capital of the company; Joint venture, cooperation plan of the company Investment plan beyond the scope of authority of the General Director; Fund-raising plan; investment projects; buying, selling, borrowing, lending contracts; business organization plan, financial management regulations and internal management regulations, functions and tasks of the company's support unit
Deputy General Director: Assist and be responsible to the Chairman of the Board of Directors, the General Director, and the law in carrying out assigned tasks
35 and delegated authority Develop short-term business and marketing plans for the company Recommend titles of Head, Deputy Head of General Business Department, and team leader Establish business networks, gather market information, implement sales activities Establish and maintain customer relationships Develop and maintain sales distribution channels
Chief Executive Officer: Directly in charge of directing and managing the company's ship management, internal security, environmental sanitation, fire prevention and fighting, storm and flood prevention, search and rescue, and occupational safety; directly monitor and manage the activities of ships entering and leaving ports; directly in charge and assign tasks for company staff to implement guest reception, arrange guests on board at ports
Chief Financial Officer / Chief Accountant: Directly in charge of directing the company's financial and accounting work; Advise on the company's financial strategy for the General Director; Analyze the company's financial situation; Evaluate the company's programs from a financial perspective; maintain the company's liquidity and ensure sufficient financial resources for the business
General Sales Department: Advise the Board of Directors on business plans and regularly monitor, supervise all business activities to build monthly, quarterly, and annual plans that are in line with the number of operational vehicles, passengers, and with forecast changes in increase or decrease to advise the company's Board of Directors on reasonable business plans The department also has the task of implementing business plans, investment plans, business cost estimates, technical economic norms, and monitoring the implementation of technical and economic indicators In particular, the Marketing, Communications, and IT Department is responsible for developing marketing strategies for the company's Board of Directors to approve and implement Conduct market research and service research and implement services on the basis of inland waterway transport business operations via the expressway Research and develop appropriate sales solutions for the Company's business characteristics, develop specific marketing solutions, manage and exploit the company's website according to the objectives set by the Board of Directors,
36 implement according to the detailed regulations of website exploitation management by the General Director of Sales Track and promptly update programs, policies, and events related to the company's activities, open/close customer accounts on the online exploitation system
Ship Management and Operation Department: Organize and manage, assign tasks and responsibilities for the crew including captain, chief engineer, sailors and ensure they fulfill their duties effectively, achieve production targets and handle emergency tasks as assigned
2.1.4 Business results of HAVACO Company
Table 2.1 Production and Business Results of HAVACO Company
Results by Year (unit: million VND) Growth Rate (%)
Source: Financial report of the company
Chart 2.1 Business production activity results of Havaco Company
Doanh thu Chi phí Lợi nhuận sau thuế
The current situation of the business strategy planning at Havaco Company
Vietnam is a country with a stable political system, and the policy viewpoints of the Party and the State are relatively consistent These are attractive factors that draw investment from domestic and foreign investors
In recent years, Vietnam's international relations with countries worldwide have been expanding, especially after Vietnam became the 150th member of the World Trade Organization (WTO), creating great opportunities for economic development The Vietnamese Government has made efforts to integrate the Vietnamese economy with the world by issuing and implementing policies that are appropriate for
38 international norms The policy of opening up has truly encouraged foreign enterprises to invest heavily in the country The state is actively pushing for the progress of constructing, improving, supplementing, and amending the legal system that is appropriate for the regimes of the WTO, which is demonstrated through policies such as the Value-Added Tax Law, the Enterprise Law, the Investment Law, etc with these policies, businesses have more conditions to accumulate capital to enhance their production investment, expand their production scale, and improve their competitiveness However, along with the global economic downturn, the amount of FDI investment in Vietnam has also been greatly affected, which more or less affects the economic development of Vietnam in particular and the world economy in general In the Vietnam Tourism Development Strategy until 2020, vision to 2030 has set the goal of developing Vietnam's tourism into a spearhead economic sector, strongly promoting the development of other industries and areas and many localities; at the same time, maximizing the contribution of tourism to the economy, creating jobs, and improving the quality of life for people To implement this strategy, in recent years, Vietnam's tourism industry has actively implemented many innovative activities that have achieved outstanding results, gradually affirming the important role of this "smokeless" industry
Vietnam's GDP growth rate from 2019 to 2022 has been maintained by the state at a stable level of 2.58% - 8.02%, with an average per capita GDP of USD 3,425 - USD 4,100 GDP growth in 2019 reached 7.02%, exceeding the target set by the National Assembly from 6.6% to 6.8%, affirming the timeliness and effectiveness of the solutions issued by the Government, resolute guidance of levels, branches, localities, and business communities together to make efforts to achieve and exceed the growth targets
Chart 2.2 Vietnam's GDP growth from 2019 to 2022
The year 2020 was considered a year of great difficulties and challenges for the world economy However, Vietnam's economy still maintained growth with an estimated GDP growth rate of 2.91% In 2021, the COVID-19 pandemic developed complicatedly globally with new variants, hindering the recovery of the world economy Vietnam is one of the countries heavily affected by the pandemic, with economic growth in 2021 only reaching 2.58%, the lowest in 30 years GDP in 2022 increased significantly by 8.02% compared to the previous year, the highest increase in the period 2011-2022 The forecast for the period of 2023 - 2028, GDP of Vietnam increases gradually from 6.7% to 7.2%, providing favorable conditions for the development of Havaco Company in general and the implementation of financial strategies at the company in particular
With economic growth, average per capita income has continuously increased over the years, improving people's lives, and the demand for transporting goods and tourists between the islands and the mainland is increasing Tourist destinations such as Halong, Cat Ba, and Quan Lan Island are becoming attractive destinations for domestic and foreign tourists This creates many opportunities for high-speed boat companies to serve the transportation needs of customers
In recent years, the passenger transport industry in Vietnam has experienced significant recovery and growth after the COVID-19 pandemic
Total passenger traffic increased by 52.8% compared to 2021, although still about 30% below pre-pandemic levels
The aviation industry has gradually resumed international flights and expanded to exploit new markets, especially the Chinese market
In the first 9 months of 2023, passenger transport volume reached more than 3,400 million passengers, an increase of more than 13% compared to the same period in
2022 September 2023 alone reached nearly 400 million, up nearly 6% year-over-year (according to etime.danviet.vn)
Passenger transport by rail also increased significantly, with transport revenue increasing by 138.92% compared to 2022 (Vietnam & World Economic Life)
Quang Ninh has made great strides in developing infrastructure and improving the quality of passenger transport services:
Quang Ninh has completed and put into operation Ha Long international passenger ship port, along with many other important seaport projects such as Van Ninh General Port and Ao Tien Van Don Port
Highways such as Van Don - Mong Cai and Ha Long - Hai Phong have also been put into use, creating an important link between the regions (Vietnam Financial Times) (MT.gov.vn)
The province has resumed passenger transport operations with the removal of COVID-
19 epidemic control points from the beginning of 2021 and continues to maintain effective epidemic prevention and control measures
It is expected that sea transport passenger traffic in Quang Ninh will reach about 250,000 - 300,000 passengers by 2025, contributing from 1.2-1.5% of the province's
GRDP (According to Vietnam Financial Times)
Quang Ninh is making continuous efforts to develop the marine economy, in which passenger transport plays an important role in promoting the local economy and creating an international brand
With a coastline of over 250km and 2,077 islands, accounting for 2/3 of the country's islands, Quang Ninh endowed by nature with many famous beaches, bays, and islands in the country and internationally, along with diverse values of landscapes, ecology, historical relics, culture, etc This advantage has created opportunities for Quang Ninh to promote the strengths of coastal and island tourism Halong Bay has twice been recognized by UNESCO as a World Natural Heritage, belonging to the list of world wonders; Bai Long Bay, with both inhabited and uninhabited islands, has abundant tourism resources; On the mainland and under the sea, there is a diverse flora and fauna system with up to 415 species (in Yen Tu, Van Don, Co To, etc.) and beautiful beaches like Tra Co and pristine ones like Quan Lan, etc With such unique landscapes, there is a need for diverse tourism products, reasonable tour combinations with resorts, and healthcare to attract foreign tourists to stay longer in Quang Ninh These advantages have attracted many tourists and investors from both domestic and foreign markets
Quang Ninh is known as a paradise for vacations with a mild – temperate climate and beautiful nature, attracting many tourists and investors from all over the country and the world With such characteristics, more and more tourism companies are joining the Quang Ninh market, creating opportunities for domestic and foreign tourism companies to participate in investment, contributing to a more vibrant market
It is clear that human needs for material and spiritual life are becoming increasingly demanding Social factors have gradually changed people's perceptions and understanding Therefore, the requirements for all goods and services are higher, especially the demand for products and services that improve the quality of life
- The trend of using payment cards: Recently, international credit card organizations such as Visa, Mastercard have entered the market, and their large brands have positively impacted the formation of numerous card unions that provide convenience for customers to pay for goods and services The convenience of these international credit cards has stimulated tourism and led tourists to spend more
- E-commerce investment: Currently, around 80% of online travel businesses have internet connections, a relatively high percentage compared to other countries in the region However, regarding the development of e-commerce and management software in Vietnam, it is still lacking, with over 70% of surveyed travel businesses responding that they are not interested, and less than 30% of companies committed to investing in software
2.2.1.6 Potential demand for high-speed boats
The high-speed boat market in the northeastern islands of Vietnam is a potential market with increasing transportation needs for both tourists and local residents The northeastern island routes include Hai Phong, Quang Ninh, Halong, Cat Ba, Bai Tu Long, Minh Chau, Van Don, Co To, Mong Cai, Quan Lan, Ngoc Vung, Tien Yen, and Hai Ha With the development of the economy and tourism industry in this area, the demand for transporting goods and tourists between the islands mainland is increasing Currently, many travel companies and service providers are competing to offer the best service for customers
High-speed boats are considered the most convenient, fast, and safest means of transportation for tourists when traveling between islands and mainland In the future, when major infrastructure projects are completed, the high-speed boat market in this area may develop even more Currently, the high-speed boat market in the northeastern region of Vietnam has been developing quite strongly and has the capacity to the needs of the market High-speed boat companies such as Tung Lam, Van Dong, Thanh Dat, Quang Ninh all own specialized boats for the northeastern island routes, capable of transporting goods and tourists quickly and safely In addition, the infrastructure is also being upgraded to serve the needs of customers The ferry terminals on the islands and mainland are all built or upgraded, with ferry trips adjusted and supplemented to
43 meet the travel needs of tourists and local residents
High-speed train businesses targeting customer groups include:
- Tourists: Visitors to the islands explore the natural landscape and visit the sea and islands
- Locals: Customers wishing to use ships to travel between the mainland and islands
- Investors and businesses: Come to the island to explore investment opportunities and economic development
- In the field of waterway passenger transport in general and high-speed boats in particular in Quang Ninh, there are the following competitors:
Table 2.2 Competitors of Havaco Company
No Enterprise By real seats
1 Havaco Investment Joint Stock Company 1.074 31,18
2 Manh Quang Trading and Service Joint
3 Nguyen Viet Co., Ltd Tourism and Trade of 2TV 614 17,82
4 Quang Minh Transportation Service Joint
5 Ka Long Transportation Service Joint Stock
6 Toan Trang Joint Stock Company 134 3,89
7 Hoang Hai Quan Business House 100 2,90
- Among 7 tourism enterprises operating high-speed boats in Quang Ninh,
Developing strategy
From the analysis of the macro-environment, micro-environment, and internal situation of the company mentioned in chapter 2, we can identify the strengths, weaknesses, opportunities, and threats of the company
- The Vietnamese economy has been developing well in recent years; with GDP growing at an average of 6% to 7% per year and people's income has increased, stimulating both domestic and international tourism demand
- Vietnam is recognized by international organizations as a safe and friendly destination compared to other countries in the region Factors such as political stability, a culture of hospitality, along with an increasingly mature tourism infrastructure have made Vietnam an attractive destination Natural landscapes such as Halong Bay, white sand beaches, and many cultural heritage sites attract millions of
67 international visitors each year Ha Long Bay has been recognized by UNESCO as a World Natural Heritage Site since 1994 and continues to receive great attention from the international community The fact that Ha Long Bay was nominated as a natural wonder of the world in 2007 has created many opportunities to attract international tourists and enhance the position of Vietnamese tourism on the world tourism map
- Increased investment in tourism in the APEC region, along with more relaxed immigration policies, creates favorable conditions for tourists to travel within the region APEC countries have worked closely to develop the tourism sector, increase investment in infrastructure and promote tourism, creating an enabling environment for the development of the sector
- The effectiveness of tourism promotion by the tourism industry (including the role of the Vietnam National Administration of Tourism - VNAT) in the recent past has achieved significant results, stimulating strong inbound tourist markets
- The tourism market has great potential According to the World Travel and Tourism Council (WTTC), more and more international tourists will come to visit Vietnam, and many Vietnamese people will travel domestically
- The explosion of new airlines, especially low-cost airlines such as Vietjet Air and Bamboo Airways, has helped enhance people's mobility, which has encouraged the demand for domestic and outbound travel of tourists The increase in the number of flights and the expansion of new routes have made it easier for travelers to reach destinations
- Information technology developments will change the way customers are approached and transacted: Online booking platforms, mobile applications, and digital marketing tools have helped the tourism industry reach customers in a more modern and efficient way, enhance customer experience and accelerate industry growth
- The instability in security and politics of some countries always affects the psychology of tourists Coup events, terrorism, and wars such as those in Thailand, Turkey, and the Middle East have led to mass cancellations of tours and drastic reductions in visitor numbers
- Occasionally, contagious diseases still recur and the risk of new types of diseases affecting tourists makes them hesitate to travel In 2020, the world witnessed the COVID-19 pandemic, which was followed by economic repercussions Many countries in the world witnessed unemployment rates of the highest in history The health and economic impacts of the pandemic caused a sharp decline in the revenue of many tourism companies According to the World Tourism Organization (UNWTO), the number of international tourists decreased by 74% in 2020 compared to 2019 (source UNWTO)
- The current human resources in the tourism industry are unstable, weak, and lacking The training process does not meet the timely quantity and quality demands, particularly a severe lack of tour guides who speak Korean, Spanish, Russian, Japanese, and Chinese The shortage of management personnel also occurs in the lodging and travel field According to the Vietnam National Administration of Tourism, the demand for tour guides increases by 20% per year, but the supply only meets about 60% of the actual demand (according to VNAT)
- Increasing competition with the emergence of more and more private tourism companies, associations between domestic travel agencies, and the joining of foreign tourism companies, especially when Vietnam joined the WTO After Vietnam joined the WTO, many international travel companies opened offices and deployed services in Vietnam, putting great competitive pressure on domestic businesses (WTO newspaper on Vietnam tourism) This requires businesses to have a clear and creative business strategy to attract customers
- Another significant challenge originates from the forecast of being short of many international standard lodging, hotels, and resorts from three stars and above to serve customers until 2022 This is especially important as international travelers increasingly demand high quality of service According to the Ministry of Culture, Sports and Tourism, by 2025, Vietnam needs about 30,000 more 30,000-star standard hotel rooms to meet the demand (according to a report by the Ministry of Culture, Sports and Tourism)
- Fierce competition: The high-speed boat market is becoming more and more
69 competitive the appearance of many new companies and similar products This requires businesses to have a clear business strategy, good service quality, rational cost, and creativity to attract customers New high-speed train lines in southern and central Vietnam are facing fierce competition from private companies (Vietnam Investment Review)
PROPOSING SOME SOLUTIONS TO IMPLEMENT HAVACO COMPANY'S BUSINESS STRATEGY FOR THE PERIOD OF 2025-2030
Determining the vision, mission, and objectives of Havaco Company
Havaco with the strategic goal of being a 5* enterprise in the field of passenger transport, not only achieves high business efficiency but also best meets the needs of the market and ensures sustainable development
The main aspects identified are: Safety and quality of services, economic efficiency and optimization of operations, sustainable development and environmental protection, strengthening of trade promotion and promotion, application of technology and innovation, serve diverse customers
Havaco's orientation is to become a leading business in providing high-quality passenger transport ships for island routes in the Northeast region and a 5-star tour boat company in the restaurant and sightseeing ship sector in Ha Long Bay, Bai Tu Long Bay, and Lan Ha Bay The company's mission is to keep up with the trend of sustainable development of sea and island tourism in the Northeast region, gradually upgrading the quality of sea and island tourism while eliminating low-quality, unsafe, poor utility, and environmentally polluted tourism products and services The main objectives for the next five years are (1) to fleet of 2 high-speed 5-star ships with 1,500 seats, serving over 60% of the high-speed ship market in the region; (2) to own a fleet of 5 best-in-segment restaurant and sightseeing ships accommodating 99 guests each in Ha Long Bay The criteria for differentiation, impression, 5-star services, competitive and flexible prices are the focus of the company's core tasks as follows: Firstly, researching and applying solutions to attract and increase the number of customers, actively drawing customers through various sales channels and diverse promotion channels to increase the overall number of passengers through the passenger port, with the number of ships increasing in line with the capacity of the port
Enhancing market research: Synthesize data, analyze and build customer
80 portraits (partners, ship owners, etc.) to develop policies for each customer group to optimize the operation of the fleet, increase revenue and reputation for Havaco company
Upgrading service quality: Gradually spread out, train and instruct the implementation of polite and professional tourism culture to ship owners and partners to increase brand credibility for the company, affirming the leading position in Quang Ninh tourism destination locally
Secondly, Recruiting, evaluating, and training to improve the quality of human resources Hiring additional high-quality staff with appropriate professional culture for Havaco company Enhancing the capacity of the current workforce through vocational training, training programs, and regular testing, reviewing, evaluating, screening, and arranging personnel in a reasonable manner Gradually guiding and training basic service skills for some partners and ship crews to improve the overall quality for tourists (IT skills, use of passenger declaration software, etc.)
Thirdly, Promoting the enforcement of core values (ideological culture) Reviewing, adjusting, and applying the established core value behaviors of Havaco Company Regularly evaluating and honoring individuals and departments for their implementation of the Core Value Behavior Set of Havaco Company Implementing communication and signing commitment to the core values for all employees of Havaco Company
Fourthly, Accelerating the digital transformation process of the company, applying advanced information technology Applying information technology to work management, automating operations to improve labor productivity, maintenance management software, port management system, passenger declaration and ship command systems, affirming a pioneering position in the field of domestic passenger ports locally in digitalization work Promoting the application of information technology in specialized management work for Ports by units and state management agencies, improving and enhancing the experience for tourists, applying electronic ticket control and cashless payment; integrating the Port command system software and the management software of the inland waterway Port Bureau of Quang Ninh,
Fifthly, Developing strategies, enhancing communication to increase the brand value of Havaco Company Maximizing existing local communication resources such as events, promotional campaigns supported by local authorities, communicating through local organizations; focusing on building good relationships with the local area to create a positive impression, a good image of the brand Continuing to communicate, affirming the leading and outstanding position in the field of domestic passenger ports through core values: "Quality - Class - Difference", promoting the promotion of new and unique experiences, bringing a modern generation style to tourists that other destinations do not have
Some solutions to implement the above orientation include:
- Solutions regarding mechanism and policy: Improving the mechanisms and policies for the maritime sector to promote investment in the development of port infrastructure, including socialization forms, contributing to the development of sea transport and maritime services; Prioritizing land and water resources for the development of ports according to planning; Continuing to study and propose appropriate port management models to improve management efficiency, investment, and exploitation of ports, port clusters (focusing on important ports) Strengthening cooperation to effectively exploit ports in the region and connecting regions; Continuing to study and improve policies on prices and fees at ports to improve the efficiency of port investment, increase attractiveness for shipping lines, and attract international container transit cargo
- Solutions regarding environment, science, and technology: Promoting modern science and technology, applying digital technology and digital transformation in the construction, management, and operation of a port system suitable for the trend of the fourth industrial revolution, meeting the criteria of a green port; Priority investment and development, effective use of the national online single window information technology system There are management policies and innovation in technology, organizing transport and trade conferences and events in addition to seeking new markets that also help high-speed boat businesses expand their market and improve efficiency
- Solutions regarding human resource development: Training, attracting high- quality human resources, especially in port infrastructure management and operation; researching and implementing mechanisms for training and fostering human resources in areas related to port management and operation Creating a positive and friendly working environment Recruiting and retaining competent and passionate employees.
- Solutions regarding international cooperation: Strengthening investment promotion at home and abroad through preferential policies, creating favorable conditions for investment and business activities; Implementing regional and international agreements and conventions on the sea in which Vietnam is a member; Studying and participating in relevant international agreements Strengthening cooperation, taking advantage of the support of partners and international organizations to develop human resources, protect the environment, prevent natural disasters, and adapt to climate change
- Solutions regarding the organization and implementation monitoring of the planning: Strengthening coordination, inspection, and monitoring of the implementation of the planning to ensure that the invested and exploited seaports function according to the approved planning in terms of function, scale, and timeline; ensuring consistency between seaports and related infrastructure Regularly organizing seaport conferences to address related issues; Encouraging research and application of solutions to effectively exploit the seaport infrastructure, ensuring that larger-capacity vessels can enter and leave port on the basis of ensuring safety, maritime security, fire and explosion prevention, and environmental protection; Building seaports linked to the formation and coordinated development of cargo distribution centers, after-port logistics services, and logistics services; Port terminals and bridges under the relocation plan are to be implemented according to the approved planning
Revenue from production and business activities increases by 10-15% per year Striving to bring 20% of vehicle capacity and new service models to participate in the regional market by 2015
Ensure that it is one of the attractive stocks in the transportation sector for
83 investors in the securities market with a profitability growth rate of 15% per year Maintain the position as one of the leading contractors in oversized and overloaded transportation, project cargo, and entire equipment transportation in Vietnam with an 80% market share nationwide
Havaco travel company aims to build itself into a leading brand in the tourism industry in Vietnam, providing global tourists with perfect and innovative tourism services and bringing Vietnamese tourists to the world, with professionalism and creativity of its staff.
Proposing solutions to implement strategy
Through analyzing the matrices in the above section, some strategies that the company needs to implement will be presented Based on the current operating environment and the business situation of the company: opportunities, challenges, strengths, weaknesses; Based on the target orientation of the development phases in the future, some related solutions that the company needs to implement are as follows:
Human resources strategies to achieve business goals: 1 Training and developing employees to improve service quality 2 Creating a positive and friendly working environment 3 Recruiting and retaining competent and passionate employees
+ Recruitment should be based on equality and transparency Recruitment information needs to be published on the company's website, newspapers, etc The recruited person must have the ability, vocational training suitable for the job they will be assigned + There should be a policy to attract talent through preferential treatment regimes such as attractive income levels, preferred stock purchases from the company, housing and travel cost support for successful recruitment of necessary personnel for the company
(1) For staff level, create a source for the future by implementing sponsorship programs, receiving internships for students from universities and vocational training in the industry
(2) For management level, organize examinations to select important positions + Urgently recruit some personnel in charge of R&D, PR, Sales Director, Deputy
General Director consulting and managing resorts and Managing Director of resorts Especially, prepare human resources to develop inbound market in the US, Europe and the Pacific
- In terms of training and development:
+ Strengthen internal training and open courses to improve specialized, vocational, language and computer skills to use operating and management software for employees to enhance their responsibility and perform tasks well
+ Organize training courses on management knowledge and skills, update knowledge twice a year for managers at all levels
+ Organize seminars to exchange marketing and sales experience between business departments: Inbound - Outbound - Domestic - MICE - General Services and Resort Business;
+ Regularly update information, exchange and improve knowledge of culture, history, and tourism for tour guides and collaborators of the company;
+ Establish training partnerships with tourism vocational schools and universities to create future succession personnel sources;
- In terms of labor arrangement: Arrange labor appropriately to their professional competence; Pay attention to criteria of skills in appearance, language, communication to arrange suitably into different jobs such as Receptionist, tour guides, PR, marketing, etc.,
- In terms of incentive policies: To stimulate the working spirit and creativity of employees, the company needs to implement OTE (On Target Earning) which is income based on the evaluation of achievements and responsibilities of each individual based on assigned targets; Use bonus policies on revenue exceeding the assigned target for sales employees
- The higher the revenue the company brings, the higher the income of the employees will be; Also apply bonus levels for initiatives that bring benefits to the company Accordingly, raise the average monthly income of the company's employees beyond the current level of 5 million VND
Measures to stimulate labor should be implemented through both material
85 rewards and morale enhancement to unleash the creativity and autonomy of the workforce in carrying out their tasks The current organizational structure of the company, although somewhat reasonable, has not fully realized its effectiveness Therefore, to have a lean and efficient organizational structure, the company needs to make some adjustments The salaries of employees in each department must be commensurate with the tasks and responsibilities of each unit, and capable individuals should be selected to head each department To avoid overlapping and confusion in business management, clear delegation of duties is necessary to prevent procrastination and to enhance the sense of responsibility in business operations, ensuring a high level of specialization However, these adjustments need to be implemented gradually, and in the coming years, the company will have a reasonable, efficient organizational structure that is suitable for market mechanism changes
- Invest in a modern hardware and software network system to ensure stability in electronic transactions, updates, and business activity storage
- Build management and accounting operating software, using ERP (Enterprise Resource Planning) software technology to help the company comprehensively manage its activities in a more modern way
- Promote the application of e-commerce and e-tour management software to develop the company's online and offline distribution system Release personal accounts for system members in the distribution network and potential customers
- Sign collaboration agreements with global hotel reservation systems such as GTA or Octopus to develop hotel and light tour services (easy go) to keep up with the high growth trend of this type of service in the near future
- Innovation of technology and access to new markets: Management policies and technology innovation are renewed, organizing conferences, exhibitions and transportation and commercial events alongside searching for new markets also help high-speed ferry businesses expand their market and improve operating efficiency Havaco needs to proactively apply digital technology in its tourism business
86 activities, such as implementing and applying it in promotional activities, marketing, market exploration, and boosting online marketing; using various technology application apps to serve customers, utilizing online websites, booking systems to provide, promote, and advertise products and services; focusing on e-commerce channels, social media platforms, online travel product sales websites, and exploring new technology solutions to introduce the company's products Some online platforms that Vietnam tourism has implemented have emerged, such as Google Arts & Culture (a platform where the public can view high-resolution images and videos of artworks and cultural artifacts from many countries around the world), YouTube with the communication program "Vietnam: Travel to love!", Facebook, Pinterest, TikTok with the campaign "Live fully in Vietnam", including information about tourism in Vietnam presented in vivid and eye-catching infographic formats Another important highlight, showing the ability to transform towards smart tourism in Vietnam, is the emergence of online travel platforms like Tripi, which allow transactions for packaged tours, hotels, and flight tickets, providing positive experiences for users
Implementation plan for high-speed ferry business strategy: 1 Establish specific plans and implementation timelines 2 Control the implementation process according to the plan 3 Evaluate and adjust the strategy when necessary
For the domestic market, customers can be divided into the following main groups:
(1) Low-income group (workers, students, and pupils);
(2) Middle-income group (office workers, factory workers in processing zones with average income);
(3) Decent-income group (including civil servants, senior office staff, and entrepreneurs);
The division of objects based on income levels is only relative The important issue is for the company to determine the spending level of each customer group for
87 their travel needs According to survey results, over 50% of tourists choose high- quality services, including hotels rated three stars or more Moreover, the demand of tourists is increasing in quantity and quality as their income rises Therefore, following the strategic direction, Havaco should choose the high-end to middle-end customer market segment (with income from decent and above)
For the inbound field, the company should focus on exploiting the Chinese, Hong Kong, Macau, and Southeast Asian markets (including countries such as Singapore, Thailand, Malaysia, and Indonesia) The reason for selecting this market is that we can take advantage of our suitable human resources for Chinese-speaking markets and the company's market share in this segment is increasing well After entering these markets, the company will expand to exploit European, American, Australian, and Japanese markets
The development strategy of cooperation with businesses in Central Vietnam (running from Cua Dai to Cu Lao Cham), Southern Vietnam (running from Phu Quy to Phan Thiet)
Is aimed at identifying the special importance of linking and cooperating between localities to develop tourism Havaco Company has identified Ho Chi Minh City as a key market Currently, people from Quang Ninh travel to Ho Chi Minh City a lot because it offers a convergence of unique and diverse tourism products Therefore, Havaco Company desires to collaborate in exploiting the advantages of Ho Chi Minh City The company has recently established a branch in My Khe Hamlet, Tam Thanh Commune, Phu Quy District, Binh Thuan Province, Vietnam, with a dependent accounting entity under the name of the Branch of Havaco Investment Joint Stock Company - Chanh Kha Phu Quy They will use the common brand Havaco - Chanh Kha Phu Quy to collaborate in business, management, and operation in order to generate profit for the passenger and cargo transportation service on the fixed route from Phan Thiet to Phu Quy using the Tuan Chau Express II means of transportation Quang Nam is known as one of the historical centers of the Champa people Therefore, the imprint of the long-standing and famous Cham culture is still deeply ingrained in this land, with the ancient capital of Tra Kieu, the sacred land of My Son,
Dong Duong Buddhist Monastery, the Bang An Tower, the Chien Dan Tower, and the Khuong My Tower Among these, the World Cultural Heritage Site of My Son Sanctuary is magnificent, solemn, mysterious, and bears the distinct cultural hallmark of Champa culture The World Cultural Heritage Site of Hoi An not only possesses its own unique appearance and rich diversity in architectural forms, but also preserves almost intact its unique historical and cultural values In addition, in the struggle for survival and the construction of life, the people of Quang have also creatively created many material and spiritual cultural values, especially hundreds of famous traditional festivals and craft villages such as Kim Bong carpentry, Thanh Ha pottery, Bac Thach mat weaving, Duy Trinh - Duy Xuyen silk weaving, and Phuoc Kieu copper casting in Dien Ban Quang Nam is located on the main North-South transportation axis, including road, rail, sea, and air routes These are strategic lifelines in economic exchange and also an important foundation for promoting the linkage and cooperative development of tourism among provinces in the Central region and throughout the country Furthermore, due to the development of transportation infrastructure and information, it has also facilitated the convenience of tourists participating in long-day tours, with many destinations spanning various provinces and cities Therefore, in the future, Havaco Company will collaborate with businesses in the Central region (operating from Cua Dai to Cù Lao Chàm)
Business production activity results of Havaco Company
Doanh thu Chi phí Lợi nhuận sau thuế
Table 2.1 and chart 2.1 show that the revenue and profit after tax of Havaco Company declined sharply compared to 2019 due to the impact of the Covid-19 pandemic However, from 2020 to 2022, the company incurred losses of nearly 13 billion Vietnamese dong, with 2021 being the year of the most significant crisis, recording a loss of 7,436 billion dong, as in 2020, when the Covid-19 pandemic broke out, from January to May, the company still had revenue from passenger transportation activities, but for the rest of the months, the company had to stop operations completely to strictly implement the regulations on disease prevention and control of the Party and the State, while still having to pay loans and salaries In 2022, when the Party and the State allowed to reopen tourism activities, the company's business activities showed signs of recovery, although not as good as in 2019 (before the pandemic), but this is considered a good growth sign
Analyzing the expenses of Havaco Company shows that interest expenses, fuel expenses, and labor costs are the highest proportion of the company's cost accounting for an average of 34%, 62%, and 5% of the total cost of the company in the period 2019-2022
In general, from analyzing the business results, it can be seen that factors such as epidemics and fuel prices have a significant impact on the company's profitability, as well as the company's business strategy
2.2 The current situation of the business strategy planning at Havaco Company
Vietnam is a country with a stable political system, and the policy viewpoints of the Party and the State are relatively consistent These are attractive factors that draw investment from domestic and foreign investors
In recent years, Vietnam's international relations with countries worldwide have been expanding, especially after Vietnam became the 150th member of the World Trade Organization (WTO), creating great opportunities for economic development The Vietnamese Government has made efforts to integrate the Vietnamese economy with the world by issuing and implementing policies that are appropriate for
38 international norms The policy of opening up has truly encouraged foreign enterprises to invest heavily in the country The state is actively pushing for the progress of constructing, improving, supplementing, and amending the legal system that is appropriate for the regimes of the WTO, which is demonstrated through policies such as the Value-Added Tax Law, the Enterprise Law, the Investment Law, etc with these policies, businesses have more conditions to accumulate capital to enhance their production investment, expand their production scale, and improve their competitiveness However, along with the global economic downturn, the amount of FDI investment in Vietnam has also been greatly affected, which more or less affects the economic development of Vietnam in particular and the world economy in general In the Vietnam Tourism Development Strategy until 2020, vision to 2030 has set the goal of developing Vietnam's tourism into a spearhead economic sector, strongly promoting the development of other industries and areas and many localities; at the same time, maximizing the contribution of tourism to the economy, creating jobs, and improving the quality of life for people To implement this strategy, in recent years, Vietnam's tourism industry has actively implemented many innovative activities that have achieved outstanding results, gradually affirming the important role of this "smokeless" industry
Vietnam's GDP growth rate from 2019 to 2022 has been maintained by the state at a stable level of 2.58% - 8.02%, with an average per capita GDP of USD 3,425 - USD 4,100 GDP growth in 2019 reached 7.02%, exceeding the target set by the National Assembly from 6.6% to 6.8%, affirming the timeliness and effectiveness of the solutions issued by the Government, resolute guidance of levels, branches, localities, and business communities together to make efforts to achieve and exceed the growth targets
Vietnam's GDP growth from 2019 to 2022
The year 2020 was considered a year of great difficulties and challenges for the world economy However, Vietnam's economy still maintained growth with an estimated GDP growth rate of 2.91% In 2021, the COVID-19 pandemic developed complicatedly globally with new variants, hindering the recovery of the world economy Vietnam is one of the countries heavily affected by the pandemic, with economic growth in 2021 only reaching 2.58%, the lowest in 30 years GDP in 2022 increased significantly by 8.02% compared to the previous year, the highest increase in the period 2011-2022 The forecast for the period of 2023 - 2028, GDP of Vietnam increases gradually from 6.7% to 7.2%, providing favorable conditions for the development of Havaco Company in general and the implementation of financial strategies at the company in particular
With economic growth, average per capita income has continuously increased over the years, improving people's lives, and the demand for transporting goods and tourists between the islands and the mainland is increasing Tourist destinations such as Halong, Cat Ba, and Quan Lan Island are becoming attractive destinations for domestic and foreign tourists This creates many opportunities for high-speed boat companies to serve the transportation needs of customers
In recent years, the passenger transport industry in Vietnam has experienced significant recovery and growth after the COVID-19 pandemic
Total passenger traffic increased by 52.8% compared to 2021, although still about 30% below pre-pandemic levels
The aviation industry has gradually resumed international flights and expanded to exploit new markets, especially the Chinese market
In the first 9 months of 2023, passenger transport volume reached more than 3,400 million passengers, an increase of more than 13% compared to the same period in
2022 September 2023 alone reached nearly 400 million, up nearly 6% year-over-year (according to etime.danviet.vn)
Passenger transport by rail also increased significantly, with transport revenue increasing by 138.92% compared to 2022 (Vietnam & World Economic Life)
Quang Ninh has made great strides in developing infrastructure and improving the quality of passenger transport services:
Quang Ninh has completed and put into operation Ha Long international passenger ship port, along with many other important seaport projects such as Van Ninh General Port and Ao Tien Van Don Port
Highways such as Van Don - Mong Cai and Ha Long - Hai Phong have also been put into use, creating an important link between the regions (Vietnam Financial Times) (MT.gov.vn)
The province has resumed passenger transport operations with the removal of COVID-
19 epidemic control points from the beginning of 2021 and continues to maintain effective epidemic prevention and control measures
It is expected that sea transport passenger traffic in Quang Ninh will reach about 250,000 - 300,000 passengers by 2025, contributing from 1.2-1.5% of the province's
GRDP (According to Vietnam Financial Times)
Quang Ninh is making continuous efforts to develop the marine economy, in which passenger transport plays an important role in promoting the local economy and creating an international brand
With a coastline of over 250km and 2,077 islands, accounting for 2/3 of the country's islands, Quang Ninh endowed by nature with many famous beaches, bays, and islands in the country and internationally, along with diverse values of landscapes, ecology, historical relics, culture, etc This advantage has created opportunities for Quang Ninh to promote the strengths of coastal and island tourism Halong Bay has twice been recognized by UNESCO as a World Natural Heritage, belonging to the list of world wonders; Bai Long Bay, with both inhabited and uninhabited islands, has abundant tourism resources; On the mainland and under the sea, there is a diverse flora and fauna system with up to 415 species (in Yen Tu, Van Don, Co To, etc.) and beautiful beaches like Tra Co and pristine ones like Quan Lan, etc With such unique landscapes, there is a need for diverse tourism products, reasonable tour combinations with resorts, and healthcare to attract foreign tourists to stay longer in Quang Ninh These advantages have attracted many tourists and investors from both domestic and foreign markets
Quang Ninh is known as a paradise for vacations with a mild – temperate climate and beautiful nature, attracting many tourists and investors from all over the country and the world With such characteristics, more and more tourism companies are joining the Quang Ninh market, creating opportunities for domestic and foreign tourism companies to participate in investment, contributing to a more vibrant market
It is clear that human needs for material and spiritual life are becoming increasingly demanding Social factors have gradually changed people's perceptions and understanding Therefore, the requirements for all goods and services are higher, especially the demand for products and services that improve the quality of life
- The trend of using payment cards: Recently, international credit card organizations such as Visa, Mastercard have entered the market, and their large brands have positively impacted the formation of numerous card unions that provide convenience for customers to pay for goods and services The convenience of these international credit cards has stimulated tourism and led tourists to spend more
- E-commerce investment: Currently, around 80% of online travel businesses have internet connections, a relatively high percentage compared to other countries in the region However, regarding the development of e-commerce and management software in Vietnam, it is still lacking, with over 70% of surveyed travel businesses responding that they are not interested, and less than 30% of companies committed to investing in software
2.2.1.6 Potential demand for high-speed boats
The high-speed boat market in the northeastern islands of Vietnam is a potential market with increasing transportation needs for both tourists and local residents The northeastern island routes include Hai Phong, Quang Ninh, Halong, Cat Ba, Bai Tu Long, Minh Chau, Van Don, Co To, Mong Cai, Quan Lan, Ngoc Vung, Tien Yen, and Hai Ha With the development of the economy and tourism industry in this area, the demand for transporting goods and tourists between the islands mainland is increasing Currently, many travel companies and service providers are competing to offer the best service for customers
High-speed boats are considered the most convenient, fast, and safest means of transportation for tourists when traveling between islands and mainland In the future, when major infrastructure projects are completed, the high-speed boat market in this area may develop even more Currently, the high-speed boat market in the northeastern region of Vietnam has been developing quite strongly and has the capacity to the needs of the market High-speed boat companies such as Tung Lam, Van Dong, Thanh Dat, Quang Ninh all own specialized boats for the northeastern island routes, capable of transporting goods and tourists quickly and safely In addition, the infrastructure is also being upgraded to serve the needs of customers The ferry terminals on the islands and mainland are all built or upgraded, with ferry trips adjusted and supplemented to
43 meet the travel needs of tourists and local residents
High-speed train businesses targeting customer groups include:
- Tourists: Visitors to the islands explore the natural landscape and visit the sea and islands
- Locals: Customers wishing to use ships to travel between the mainland and islands
- Investors and businesses: Come to the island to explore investment opportunities and economic development
- In the field of waterway passenger transport in general and high-speed boats in particular in Quang Ninh, there are the following competitors:
Table 2.2 Competitors of Havaco Company
No Enterprise By real seats
1 Havaco Investment Joint Stock Company 1.074 31,18
2 Manh Quang Trading and Service Joint
3 Nguyen Viet Co., Ltd Tourism and Trade of 2TV 614 17,82
4 Quang Minh Transportation Service Joint
5 Ka Long Transportation Service Joint Stock
6 Toan Trang Joint Stock Company 134 3,89
7 Hoang Hai Quan Business House 100 2,90
- Among 7 tourism enterprises operating high-speed boats in Quang Ninh,
Havaco has the highest market share Therefore, Havaco needs to develop a strategy to maintain its market share Moreover, the opening of the Vietnamese tourism market for foreign companies to invest puts more pressure on competition Based on criteria for assessing the financial situation, scale of operations, human resource management the following companies can be identified in the waterway passenger transport market:
- Introduction to direct competitors of HAVACO:
+ Manh Quang 886 Trading and Services Joint Stock Company (Enterprise Code: 570194793), established on August 2, 2018, headquarters at Zone 4, Co To town, Co To district, Quang Ninh province The main business field is passenger transport by coastal and ocean transportation a Market share: The market share of Manh Quang 886 Trading Service Joint Stock Company is quite large in the market but still lower than that of Havaco Company b Prestige: Being a reputable company in providing coastal passenger transport services in Quang Ninh market c Distribution system: There is a relatively wide distribution system with associated tourism companies d Products and services : There are many different packages: Package tour, Air transportation service, Global hotel reservation service,
E Product quality: Manh Quang 886 Trading Service Joint Stock Company has experience and good machinery and equipment, so the product quality is very good, highly competitive f Marketing: The company's marketing activities have begun to receive moderate attention g Finance: Total large equity; however, recently, Manh Quang 886 Trading Service Joint Stock Company has encountered some problems in financial management h Human resources: More than 100 professional and managerial staff with continuous creativity
45 i Technology: Application of hi-tech solutions in management j Product diversification: Products and services of Manh Quang 886 Trading Service Joint Stock Company are very diverse with many service packages for customers to choose from Nguyen Viet Trading Service and Tourism Company Limited (Business code: 5701750698), established on 01/04/2015, head office address: Zone 8, Cai Rong town, Van Don district, Quang Ninh province Main business lines: Coastal and ocean passenger transportation a Market share: The market share of Nguyen Viet 2-member Trading Service and Tourism Co., Ltd is larger than Manh Quang 886 Service Trading Joint Stock Company but lower than Havaco Company b Prestige: As a company with a lot of reputation in coastal passenger transport services in Quang Ninh market c Distribution system: There is a limited distribution system compared to Havaco Company because there are few affiliated companies d Products: The company's products are mainly Package Tours e Product quality: Nguyen Viet Trading Service and Tourism Co., Ltd has quite good quality of products and services f Marketing: The company always improves the capacity of staff and marketers in the field of tourism g Finance: In general, the financial situation of Nguyen Viet Trading Service and Tourism Co., Ltd is relatively good, but it is necessary to control receivables, cost prices as well as borrowing costs accordingly so that production and business activities of the Company are the most efficient h Human resources: The quality of human resources of more than 50 employees is the key factor determining success Therefore, the Board of Directors always focuses on attracting, training and fostering talents i Technology: Nguyen Viet Trading Service and Tourism Co., Ltd is committed to providing high quality services j Product diversification: There has been no product diversification Quang Minh Transport Company Limited (Business code: 5700535313), established on
Havaco's staff structure from 2019-2022
Looking at Chart 2.3, we can see that the highest proportion of staff with a degree working for Havaco is at the university level with over 38.14%, followed by junior college at 25.77%, intermediate level with 20.62%, blue-collar workers at 10.31%, and post-university level making up a relatively low proportion of 5.16% in the total workforce of the company
* Human resource training and development policies:
During the period of 2019 - 2022, Havaco continued to implement the
"Potential Manager" program, recruiting talented students from prestigious universities across the country to participate in training programs, monitor and develop them into core management personnel in the future Havaco also maintains integration training for new employees and some external training programs to improve knowledge and professional skills for employees
Impact of staff on Havaco's business activities: With a workforce mainly composed of university and junior college degree holders, the Sales Department still has a small number of employees, with only a staff of more than 5 This is also a limitation of the company because a thin sales force will make it difficult to conduct market research comprehensively and strictly, and establish effective business policies Every year, the company allocates about 0.5% of the operating costs for training and development of employees, such as organizing training sessions, team-
Cao đẳng Trung cấp Đại học Sau đại học Khác
62 building sessions, sending employees to participate in training courses, and specialized seminars Additionally, the company also continuously attracts high-quality personnel with experience from other companies in the same industry through salary commitments and other preferential policies such as offering employee stock options or annual vacation time At the same time, recruitment is carried out through popular job websites such as vietnamworks.com, vlance.com, and staff are arranged according to their strengths and work abilities to create conditions and stimulate them to maximize their own potential
However, the current recruitment of the company is facing some difficulties as the entire system of parent and subsidiary companies is developing at a high speed, while the tourism labor force is scarce and the general demand for the industry is very high, including for tour operators, hotels, and restaurants
2.2.3.3 Analysis of research and development:
Currently, Havaco does not have a specialized research and development department However, every year, departments within the company continuously improve and research to enhance the efficiency of their work This helps the company effectively apply advanced technologies and create a competitive advantage for business development Commentary: Through the analysis of Havaco's research and development situation, we can see that this is a major strength of the company and one of its advantages
No Equipment Name Quantity Average capacity Origin
1 Tuan Chau Express I 01 200 seats Imported
2 Tuan Chau Express II 01 200 seats Imported
3 Tuan Chau Express III 01 200 seats Imported
4 Tuan Chau Express V 01 200 seats Imported
(Source: Accounting and Finance Department)
From Table 2.16, we see that the company has a relatively large capacity of construction equipment in terms of both quantity and variety Currently, the company has over 7 high-speed boats, with each equipment item having a relatively high capacity of 200 to 300 seats, ensuring the company's business operations Over the past 8 years of operation, the company has equipped itself with many other construction equipment items, implemented improvements, and modernized its machinery systems to best serve its business operations Currently, Havaco owns the largest Vip Catamaran fleet in Quang Ninh province that mainly operates in Halong Bay - Bai Tu Long Bay (Van Don) - Coto Island with 5-star SB vehicles and VRH HSC II (boat) measuring 200 to 300 seats under the Tuan Chau Express brand
The company has implemented an automatic switchboard system to allocate incoming calls to save on human resources In addition, the company has introduced a toll-free switchboard (1800555599), which is convenient for customers when transacting and consulting travel information
However, data storage and management operations are still performed manually and have not yet been digitized or computerized The company is rebuilding its travel website and e-tour management software to create favorable conditions for customers in choosing and paying for products and services online
Marketing is one of the most important factors in competition On the one hand, marketing reflects the business capacity of the enterprise, and on the other hand, it is a powerful competitive tool Therefore, the capacity and strengths of the enterprise's marketing activities have a significant impact on its competitiveness The competition on the market and the competitiveness of the enterprise determine the marketing activities On the other hand, the marketing activities of the enterprise are a strong factor that affects competition The more the economy develops, the more fierce the competition, the greater the impact of marketing on the competitiveness of the
64 enterprise These factors make marketing increasingly important for businesses Obviously, marketing activities must be carried out within the framework of a well- considered effective, efficient, and responsible marketing philosophy
Analyzing the business activities of HAVACO in general and marketing activities in particular will encounter difficulties in presenting the best data due to the company's relatively new development history as introduced above
- Regarding distribution channels: there has been no investment in developing a distribution network, and there is a lack of personnel and funding for implementation
In addition, HAVACO currently still uses the traditional form of direct sales staff (sales) to reach customers
- Regarding pricing: the company applies a differentiated pricing policy with adjustments This differentiation depends on each target market and different customer groups, specifically:
+ Implemeting flexible pricing policy based on quantity and sales volume, the more quantity, the lower the price
+ For individual customers, the company applies a public pricing policy for regular tours
+ Discount pricing policy based on percentage ratios, depending on tours for agents and partners In addition, the company's marketing activities can be partially reflected through the budget allocation table for marketing as follows:
Table 2.16 Marketing budget structure in 2022
(Source: Marketing Department of Havaco) Regarding customer care: there is no specialized department or personnel for this task The company only stops at sending birthday wishes, giving promotional gifts when customers buy tours
The company's marketing activities have been promoted since early 2019 and have achieved some results, such as creating relatively good recognition of the Havaco brand for customers Havaco is currently the company with the best brand reputation in the high-speed passenger transport sector in the region Therefore, the company's marketing activities are still focused on building and positioning the brand, selling services, rather than linking the departments in the company to achieve the goal of providing high-quality transportation services to customers and retaining customers For example, the company has not yet undertaken any activities to receive feedback from customers about the quality of transportation services and the attitude of employees…
2.3.2.7 Internal Factor Evaluation (IFE) Matrix
The internal factors of Havaco Company are the strengths and weaknesses of the company However, when evaluating the internal factors (IFE), the author only relies on 7 factors that the author and the research information from the Marketing department of Havaco Company consider to have the greatest impact on Havaco's value
No Internal Factors Weight Rating Weighted
1 Clear and appropriate business objectives and purposes 0,12 4 0,48
3 Diverse services, quality products trusted by the market 0,08 3 0,24
4 Lack of personnel to meet the 0,05 2 0,10
66 diversified operations of the company
5 Better staff recruitment policies than competitors 0,08 4 0,32
6 Good financial capacity with the support of the parent company 0,08 3 0,24
7 Developing a resort network that supports high-speed boat business 0,04 3 0,12
(Source: Analysis and evaluation of the author and research information of the