Xây dựng chiến lược kinh doanh cho công ty cổ phần nhà và phát triển đô thị HUD tới năm 2020

Xây dựng chiến lược kinh doanh cho công ty cổ phần nhà và phát triển đô thị HUD tới năm 2020 Luận văn thạc sĩ Xây dựng chiến lược kinh doanh cho công ty cổ phần nhà và phát triển đô thị HUD tới năm 2020 Xây dựng chiến lược kinh doanh cho công ty cổ phần nhà và phát triển đô thị HUD tới năm 2020 Luận văn thạc sĩ Xây dựng chiến lược kinh doanh cho công ty cổ phần nhà và phát triển đô thị HUD tới năm 2020 Xây dựng chiến lược kinh doanh cho công ty cổ phần nhà và phát triển đô thị HUD tới năm 2020 Luận văn thạc sĩ Xây dựng chiến lược kinh doanh cho công ty cổ phần nhà và phát triển đô thị HUD tới năm 2020

Luận văn Thạc sĩ MBA

Xây dựng chiến lược kinh doanh cho Công ty cổ phần Nhà và Phát

triển đô thị HUD tới năm 2020

Thesis title

“BUILDING BUSINESS STRATEGY FOR HOUSING

AND URBAN DEVELOPMENT CORPORATION

(HUD) TO THE YEAR 2020”

We would like to express our thankfulness to the lecturers, facilitators and experts

of VNU for your enthusiastic provision of very important information and knowledgewhich help to equip us with new style and skills of management The changes in thinkingand management style of ourselves and our colleagues, especially the effectiveness of themanagement work at our office during the recent time, are wonderfully crystallized fromthis important course

Due to limited time, there are still some mistakes in the Project, even we committhat this capstone project is result of our real study and practice in HUD Corporation Wewould therefore like to welcome all recommendations and comments to perfect ourCapstone Project on “Building business strategy to the year 2015 for the Housing andUrban Development (HUD)”

Thank you very much!

TABLE OF CONTENTS

GRATITUDE 2

Abréviations 5

INTRODUCTION……… 7

CHAPTER I 10

KEY BASIC FOR A BUSINESS STRATEGY 10

1.1 Fundamental concepts of a business strategy 10

1.2 Strategy classification……… 10

1.3 Role of business strategy 11

1.4 Basis for building business strategy……… …12

1.4.1 Analysis of external environment… ……… ………13

1.4.2 Analysis of internal environment… ……….……… ……19

1.5 Tools of building strategy anf selecting strategy……… 21

1.5.1 Tools of building strategy……… … ……… ……… ……21

1.4.2 Tools of selecting strategy … ……… ….……… …… ……24

CHAPTER II 26

INTRODUCTION AND ANALYSIS ON THE HOUSING 26

AND URBAN DEVELOPMENT CORPORATION 26

2.1 Establishment and development history of the Housing and Urban Development Corporation (HUD) 26

2.2 Analysis of the Corporation’s internal environment 27

2.2.1 Human resources 27

2.2.2 Financial resource 28

2.2.3 Technical – material facilities resources 33

2.3 Analysis of external environment 33

2.3.1 Analysis of macro environment 33

2.3.2 Industrial environment 40

CHAPTER III 48

BUILDING STRATEGY TO THE YEAR 2015 FOR HUD 48

3.1 Oriented development 48

3.2 Ojective of HUD……… ………48

3.3 Building strategy……… 48

3.3.1 EFE Matrix of HUD 48

3.3.2 IFE Matrix of HUD 49

3.3.3 I-E Matrix of HUD……… ……… 50

3.3.4 SWOT Matrix of HUD……… ………51

3.4 Strategies for HUD……… 53

3.5 Selecting Strategy for HUD .515

3.6 Strategic solutions: 55

3.6.1 Human resources solutions 55

3.6.2 Financial solutions 55

3.6.3 Marketing solutions: 56

3.6.4 Investment solutions: 57

3.6.5 Organization solutions 58

3.7 The road map for implement strategy of HUD 589

CONCLUSION……… ……… 61

WTO World Trade Organization

HUD / HUD Corp Housing and Urban Development Corporation

PMU

AS

Project Management UnitAttractive score

LIST OF TABLES

Table 1.1: Strategy Management Model of F.David

Table 1.2: Model of 5 competitive forces of M Porter

Table1.3: Competitors analysis

Table 1.4: Model of IE Matrix

Table 1.5: SWOT Matrix

Table 2.1: Strengths and weaknesses of human resources

Table 2.2: Capital Development Data

Table 2.3: Capital mobilization in 2008

Table 2.4: Business results in recent years

Table 2.5: Financial figures of the last two years

Table 2.6: Strengths and weaknesses of financial sources

Table 2.7: Strengths and weaknesses of technical and material facilities

Table 2.8: Vietnamese GDP rate in recent years

Table 2.9: Opportunities and threats for HUD

Table 2.10: Factors affecting demand for real estate

Table 2.11: Opportunities and threats of industry analysis for HUD

Table 2.12: Competition criteria of HUD’s competitors

Table 3.1: External Factors Evaluation Matrix of HUD

Table 3.2: Internal Factors Evaluation Matrix of HUD

Table 3.3: I.E Matrix of HUD

Table 3.4: SWOT Matrix

Table 3.5: Scoring criteria of strategy

Table 3.6: Roadmap for making business strategy

INTRODUCTION

 Circumstance, necessity and significance of the Project

The economy of Vietnam is a market economy with the State management and thetendency to integrate into the global economy To exist and develop, every enterpriseneeds to have a strategy which is compliant to the integration trend and the commonmarket development An enterprise without a good business strategy is like a boat withoutsailing and a strategy which is incompliant or carried out badly cannot help that getsuccess in the competition market In other words, the destiny of an enterprise dependsmuch on the making and management of its business development strategy

The Housing and Urban Development Corporation (HUD) has been developing for 20years Its existence and development associate with so many changes of our country,Vietnam At the moment, HUD Corporation is one of the leading corporations of Vietnam

in housing and urban development To determine the correct business path for in thefuture, HUD Corporation is having its urgent concern of building a long-time, suitableand flexible business strategy to face the fluctuations of the business environment, to meetthe increasing demand for urbanization and housing, making contributions to the nationalcourse of industrialization and modernization With this current situation and contributethe ideas to get HUD Corp have the vision and direction in the very competitiveeconomic environment of , our group have chosen the Project “Building business strategyfor the Housing and Urban Development Corporation (HUD) to the year 2015”

 Study Objectives

With this capstone project, there are two objectives we would like to gain:

Firstly, to build the business strategy for The Housing and Urban DevelopmentCorporation (HUD) based on the analysis of internal and external environment to realizethe current strength, weakness as well as the threats and opportunities, which haveinfluence on the Corporation

Secondly, to propose measures to implement the suggested business strategy for HUD

 Study method

In the study process, the capstone project uses the method of analysis and summary allthe real information from the Housing and Urban Development Corporation, the specialtybooks on Strategy Management, Marketing, and Finance, the magazines, newspapers andinternet information

The Group has also conducted an investigation and collected the ideas and opinions ofsome individuals, organizations about the Housing and Urban Development Corporation andother current competitors in the market All the collected investigation papers, we use themethod of statistic and summarization to form it in the project

Besides that, our group also uses the comparison method, industry analysis andenterprises’ activities to gather and combine them with theory, reality to build the vision andstrategy in the housing and urban construction industry

 Study object

The Project learns about theoretical and actual issues in the process of building thestrategy of the Housing and Urban Development Corporation

 Study Scope:

Studying fundamental basis of the making of the business development strategy in

a Corporation trading civil

Studying the actual business development strategy of the Housing and UrbanDevelopment Corporation (HUD)

Recommendations to complete the business strategy for the Housing and UrbanDevelopment Corporation (HUD).

 Structure of the Project Report:

The report includes three chapters:

Chapter I: Key basis for the business strategy

Chapter II: Introduction and analysis of the Housing and Urban DevelopmentCorporation (HUD)

Chapter III: Building the business strategy to the year 2015 for the Housing and UrbanDevelopment Corporation (HUD)

CHAPTER I

KEY BASIC FOR A BUSINESS STRATEGY

1.1 Fundamental concepts of a business strategy

The term of “Strategy” was used firstly in the military from the years of Sixty ofTwenty century This term was applied in the business field and from that “BusinessStrategy” was initiated However, the business strategy is being understood by themanagement peoples with the different ways This is due to the approaching ways to businessstrategy of them are different

Chandler defined strategy as “identification of the basic long term goals andobjectives, application of a set of actions and the allocation of necessary resources”

(Chandler, A (1962) Strategy and Structure Cambrige Massacchusettes MIT Press)

According to Fred R.David (2003), strategy is the means to achive the long-term

targets

Pursuant to Rudolf Grunig and Richard Kuhn (2003), strategy is long-period

management direction to aim the accomplishment the goals, main purposes of anenterprise in long-term

However, with many different ways and methods of understanding and approching,business strategy is implying the followings meanings:

- Determining the maind and longterm target of an enterprise

- Drawing the general programs of actions

- Choosing the action plan, deploying to allocate the resources to implement thattarget

1.2 Strategy classification

According to Ms Nguyen Thi Lien Diep and Mr Pham Van Nam (1997, Strategy and

business policy), in the forming process of strategy, there are some types of it:

- Company-level strategy: It is a model decided in a company This strategy todetermine and draw clearly the targets, aims of a company, what is companypursuing and from that to create the policies and plans to achieve the target.

- Business-level strategy: It is strategy to aim to define the products or market forparticular business activities for company Each units of business department will try

to fulfill their target to contribute the accomplishment of company’s goal

- Function-level strategy: This strategy is concentrating on the supporting of strategyorganizations, co-ordination fields and business area

Business strategy plays an important role in the company’s process of existence anddevelopment The details are followings:

Firstly, strategy is a tool to summarize all the long term targets of company The target

of company is the specific goad which company wants to achieve in the process of businessactivities The concretization, documentation all the company’s targets through the strategieshelp the members of company to know where they are going to, what do they need, what dothey need to do This to help the company to complete the target very clearly

Secondly, strategy attaches with the short- term development target in the long- termcircumstance In the modern business environment, almost companies should move activelyand flexibly to the business environment However, the movement may be deviatory anddestroy the long – term development That’s why strategy is very important and it creates thelong – term orientation

Strategy also contributes to the ensure the unity and orientation of the company’sactivities In the history of existence and development, with strong allocation labor trend both

in width and depth, all the works is being done in many different departments Thatspecialization help to increase the effectiveness of the work, however, that department justcare to improve business activities of itself only but not take care to other’s one and wholecompany’s Therefore, some activities may be an obstacle to each others and cause badly to

company’s target Strategy will provide comprehensively and systematically in the problemsolving in the reality to create the general strength of whole departments, whole members inthe company From this it goes in one direction as company’s goal.

Lastly, strategy helps the company to catch the market’s opportunities and competewith other companies Its units the process of activities to gain the purpose and duty.Therefore, it help to improve effectively all the internal resources of company

1.4 Basis for building business strategy of an enterprise

The strategy management is usually studied and used through many models Themodel of F.David seems to be widely applied and it shows as below:

Define the strategy Perform the strategy Assess the strategy

Table 1.1 Strategy Management Model of F.David

(Source: Overview about strategy management - National Economy University)

1.4.1 Analysis of external environment

External environment is the system of complex elements, with many chances andthreats which affect to activities of the company in different levels Even though the scale

of potential resources is very high, company may not reflex to all happenings in themarket Therefore when analyzing the external elements, the management people want todevelop a list of opportunities in the environment which can bring the benefit to thecompany and all the threats, which company need to have solution to prevent or avoid

External environment includes the general environment and industry environment

1.4.1.1 General environment.

Evaluation externally to point out the opportunities and threats

Give out the long-term target

Put the normal target

Evaluation internally, point out the strengths and weakness.

Review the company’s duties

Policies of departments

Allocate resources

Measure and assess performance level

PEST model studies the elements which affect to company includes political andlaw environment, economic environment, socio-cultural and technological environment.

Firstly, political environment and law have more and more influence to theactivities of a company The influence of politics and laws means the government givesout the legally regulations for enterprises to follow or prohibit The Government isplaying the high role in the macro economy through the economic, financial, monetarypolicies In the relation with company, the Government is the key person to control,encourage, support, regulate, prohibit and constrain

Beside the political issues, the economic elements influence directly and actively

to the enterprise Economic factors includes the trend of GPD, growth rate, interest rateand trend of interest rate, international payment, trend of exchange rate, inflation, tax rateand tax system, the fluctuation in the stock market, economic cycle and economic period

Social - cultural factors is the third in the PEST model It includes the mainelements such as ethical conception, the thought of life standard, custom, habits, thepriority, care, awareness, intellectual of society All of these factors have influence onactivities and companies Therefore, company needs to pay attention to them whenbuilding the business strategy

Technology environment is the fourth in the PEST model It has always beenchanging because it brings many chances to enterprise as well as the threats Changes intechnology affect many sides of the society mainly through the products of technologicalprocess These include activities relating to the creation of new knowledge, moving theknowledge into the output, the products, the processes and new materials The change intechnology environment brings about the enterprise both opportunities and threats Theopportunities are improving the ability to create the new products with high competitivecapacity; the threats are they can make the life circle of a product regress directly orindirectly The most important effect of the technological change is to affect the height ofthe barrier and restructure the profession

Beside PEST model, there are some more factors to impact to company, which isthe demography and globalization.

Demography environment includes issues relating to population, age structure,geography distribution, community of peoples and income distribution Points of viewabout consuming goods and services of people in the areas, and points of view of eachgender, age, profession affect the formation of the markets and also affect economicstrategy Life styles affect the demand on goods and services including kinds, quality,shape, design The speed of population growth positively affects the strategy content ofthe enterprise

Globalization is the trend to integrate and globalize in and out Vietnam makesenterprises think of international factors when they determine long-term strategy withhigh integration and ability to develop geographically and politically Global segmentsinclude relating global markets, changing markets, important international political issues,basic institutional and cultural property in international markets

1.4.1.2 Industry environment

The Five Pressures Model of Michael E.Porter (1985) is applying to analyze the

industry environment of enterprise According to M Porter, there are five competitiveforces in the profession: (1) risk of the coming of new companies (potential competitors);(2) competitiveness among existing companies; (3) the strength of customer bargain(Customer pressure); (4) Strength of seller negotiation (Supplier pressure); (5) Threats ofreplaceable products

M Porter shows that the stronger those forces are, the more they limit thecompanies in increasing the price and gaining higher profit The task given is to realizeopportunities and threats which are given by the changes of five forces From that, theybuild up suitable strategies, changing the strength of one or more competitive resourcesinto their advantages

Table 1.2: Model of 5 competitive forces of M Porter

(Source: Michael E.Porter 1985)

First of all, competitors are the highest pressure with any existed company It can be shown in the table below

Customers

Substitutional products

Potential competitors

Competitors in the industry

Suppliers

What do competitors

want to reach?

What is doing by competitors and what can they do?

- What is weakness of the competitors

- What can help the competitors to retaliate in the most strong and effective way?

Table1.3 Competitors analysis

(Source: Michael E.Porter 1985)

Beside competitors, the Supplier includes all the subjects such as suppliers of inputmaterial, financial source and labor The supplier may make threats against company theprice and payment method The influence level depends on the concentration of thesupplier, the importance of the quantity of the products to the supplier; the difference

among suppliers, the influence of input factors on the cost or the difference in products,the change cost of the enterprises, the existence of replaceable suppliers, the threat ofunity of suppliers; supply cost against total profit of the profession

Customers decide the existence of company The trust is the most value asset of anenterprise That trust can be reached because that company can satisfy the demand andpassion of customers better than competitors Negotiation ability of the customers isexpressed as the buyers are regarded as a competitive threat when they require lowerprices or better services The influence level depends on negotiation position, the quantity

of buyers, the information the buyers get, the special characteristics of the product brand,the sensitiveness to the price, the difference in products, the concentration of customers inthe profession; the availability of replaceable goods, customer motivation, the integrationability when the buyers can use threats of supply sources

The new competitors to join the industry may also be the factor to decrease theprofit of company because they exploit and use the new production ability with the desire

to occupy the market share and necessary resources Therefore, the protection the position

in the competition includes maintenance the legal barrier to prohibit the penetration fromoutside The legal barriers mainly include the economy of the scale (the effectiveness ofthe enterprise, it gains experience when the scale is bigger), product diversification ortrademark loyalty (It is the buyers’ love for existing products as they believe thoseproducts are special A firm can create trademark loyalty by continuously promoting,registering and protecting patent of its products; improving products’ quality throughresearch and development programs; strongly focusing on product quality and after saleservices The trademark loyalty causes difficulties for new competitors who seek for amarket shares by entering the industry), high financial capital (Competing in a newindustry requires resources to invest Beside the physical facilities, capital is needed forcritical business functions The new entrants must consider the volume of required capital

if available to pursue the apparent market opportunity), switching cost (the cost of buying

new equipment, of retraining employees and even the psychic costs of ending arelationship, may be incurred in switching to a new supplier A decision made bymanufacturers to produce a new, innovative product creates high switching cost for thefinal consumers)

Lastly, the subsitutional products may reduce the potential profit of industry byapplying the ceiling price which other companies give out in their scale to have profit.The influence level depends on changing cost when using products, the trend to usereplaceable goods from customers, balance of price and quality of replaceable goods Thesubsitutional products join market massive will increase the competition in the industryand decrease the price and improve the quality

1.4.2 Analysis of internal environment of company

Analysis of internal environment of company is a foundation to help companyrealize their strengths, weakness compared with the competitors Meanwhile, it helps themanagement people to know their ability to catch up the advantage to compete in eachperiod The internal function factors such as human resource, finance, marketing,management board

1.4.2.2 Finance

Financial condition is considered as the assessment method of competition position

of company and it is the attractive condition of the investors For building perfectstrategy, it is needed to determine the ability, weakness of company’s finance It shows by

some major financial figures such as liquidity, ratio of asset, equity, profit This will help

to build the strategy and perform it better and more feasible

1.4.2.3 Marketing

Studying the marketing to realize the market chances, market segments to choosethe targeted market and market orientation Meanwhile, marketing will help to study thecustomers and related factors to form the marketing orientation and competitionmarketing Through the marketing activities, company may design, organize to completeand check the product, price strategy

The leading activities consist of the efforts to orient the activities of people, indetails is connecting, managing with group, individuals, delegating, authorizing toimprove the working quality, satisfy the demand of company and staffs

At last, the control activities relate to all operations to ensure the result correctlyand suitable with the plans

1.5 Tools of building strategy and selecting strategy

1.5.1 Tools of building strategy

Come from the situation of Housing and Urban Development Corporation (HUD), thesuitable tool of building strategy as follows:

1.5.1.1 Internal Factor Evaluation Matrix (IEF)

Internal Factor Evaluation Matrix is the tool to summary and evaluates thestrengths and weaknesses of SBU It brings the base to determine and estimate therelationship between these units

According to Fred R.David, IFE matrix can be built by 5 steps as follows Step one

is listing the factors determined in the internal evaluation, using 10 to 20 factors,including strengths and weaknesses

Step two is fixing the importance by classifying from 0.0 (unimportant) to 1.0(most important) for each factor The importance of each factor expresses the importance

of it to the company success Total score for the importance is 1.0

The third step is classifying from 1 to 4 for each factor, for the largest weaknessmarked 1, the smallest weak weakness marked 2, the smallest strength marked 3, and thelargest strength marked 4 This mark are built base on the evaluation of the internal factor

Fourthly, step four is multiplying the importance of each factor with itsclassification in order to the find out the score of importance for each factor

Lastly, the step five is that plus all the score of importance for each factor in order

to find out the score of importance of the company

However the IFE consists many elements, the total mark may be classified thelowest from 1.0 to the highest of 4.0 with the average point is 2.5 If the total mark isbelow 2.5, it shows that company is weak inside and vice versa, the higher mark than 2.5tell that the internal company is strong enough

External Factor Evaluation Matrix (EFE) allows recapping and assessing theinformation of economy, politics, culture, society, demography, geography, law,technology and competition

According to Fred R.David, the forming EFE consists of five steps

Firstly, step one is listing the elements which plays the decisive role on the success

of company as same as the internal factors evaluation It may use ten to twenty elementsincluding the opportunities and threats to affect the company and the industry ofcompany

The second step is classifying the importance level from 0.0 (not important) to 1.0(very important) for each element This classification tells the importance potion of them

to the success of business industry of a company The suitable classification may bedetermined by comparison the succeeded competitors with failed ones or by discussionabout these elements for agreement in the group The total of classification must be 1.0

The third step is classification and marking from 1 to 4 for each decisive factor tosee the method which the current strategy reacts upon them, while mark one is lowresponse, two is average response, mark three is reaction above average, and four is goodreaction

Next, step fourth is multiplying each importance level with that factor to determinethe total mark for each variable

Lastly, the fifth step is adding all the marks to have the total mark of company.Any factors of threats and opportunities inside the EFE matrix, total importantmark which company can have lowest is 1.0, highest is 4.0 and the average mark is 2.5.The total mark is 4 shows that company response very good with their currentopportunities and threats in their industry environment The total mark is 1 show that thestrategy which company suggested will not use advantage of opportunities or avoid theexternal threats

1.5.1.3 Matrix Internal - External (Matrix IE)

Matrix Synthesis of external factors, the internal factors is based on two mainaspects They are total mark of important elements of the IFE matrix and total mark ofimportant points of the EFE matrix

The total mark of important elements of the IFE matrix is shown in X axis

The total mark of important elements of the EFE matrix is shown in Y axis

IE Matrix set parts of a business in a box of 9 as shown:

The mark of IFE Strong

3.0 - 4.0

Medium 2.0 - 2.9

Weak 1.0 - 1.9High

The mark of

EFE

3.0 - 4.0Medium 2.0 - 2.9Low1.0 – 1.9

Table 1.4: Model of IE Matrix

IE matrix puts different SBU of a company in one table with nine boxes They are boxes

of Development and construction – the blue box I, II, IV (appropriate strategy is to focusgrowth (market penetration, market development, product development), hold andmaintain - the yellow box III, V, VII (appropriate strategy for market penetration andproduct development), harvesting and remove - the red box VI, VIII, IX ( cuts, liquidation

or remove parts down inefficient operations)

MATRIX

According to Nguyen Thi Lien Diep and Pham Van Nam (1997, Strategy and

business policy), to create the SWOT matrix, it is necessary to have eights steps:

Step one is listing the main strengths inside the company

Step two is listing the main weaknesses inside the company

The third step is listing the big opportunities outside the company

The fourth step is listing the importance threats outside the

Lastly, step five is combination of strengths with external opportunities and listingthe result of SO strategy in suitable box

The six steps is combination of weakness with external opportunities and listingthe result of WO strategy in suitable box

Next, step seven is combination of strengths with external threats and listing theresult of ST strategy in suitable box

Lastly, step eight is combination of weakness with external threats and listing theresult of WT strategy in suitable box

Listing the opportunities

of the opportunities

ST Strategies

Use strengths to restrict

and evade threats

in order to reduce risk

Table 1.5 SWOT MATRIX 1.5.2 Tools of strategy selections

foreign policy viewpoints and methods of management of Directors of the company;Compliance with the financial capacity material and personnel of the enterprise.

1.5.2.2 Method of selection strategies

Using strategic planning matrix can be quantified (QSPM - Quantitative StrategicPlanning matrix)

INTRODUCTION AND ANALYSIS ON THE HOUSING

AND URBAN DEVELOPMENT CORPORATION

2.1 Establishment and development history of the Housing and Urban Development Corporation (HUD)

The Housing and Urban Development Corporation (HUD Corporation) is a owned corporation organized and operates according to the Decision No 90/TTG dated

State-07 March, 1994 of the Prime Minister The Corporation was established in 2000(according to the Decision No 08/2000/QĐ-BXD dated 02 June, 2000 of the Minister of

Construction) from the Housing and Urban Development Company (which wasincorporated on 10 October, 1989 according to the Decision No 843/BXD-TCLĐ of theMinister of Construction)

Its main activities are:

Making investment and development of residential areas, urban areas, economiczones and centralized industrial parks

Providing consultant services on construction and infrastructure development ofurban areas, industrial parks

Providing management services for projects on investment and development ofhousing, new urban areas and industrial parks

Making construction, installation of civil, industrial, transportation, irrigation, communication works, and infrastructure of urban areas, industrial parks, lining andpower station projects, and water and electricity systems of civil and industrial projects Managing services in new urban areas, residential areas

tele-Having joint-venture and combination relations with foreign and domesticorganizations in investment and development of urban areas, residential areas andindustrial parks

HUD Corporation has been working for 20 years, with the current growth andfinancial accumulation development; it can carry out at the same time many big projects

in different areas Its own equity has been increasing rapidly in the recent years, fromnearly one hundred and fifty (150) billion Vietnamese dong (equivalent to eight million

US dollar) in 2000 to over one thousand and eight hundred (1,800) billion Vietnamesedong (equivalent to one hundred million US dollar) now

The annual growth rate is high and stable with an average rate of over 20% forproduction value, turnover and profits Turnover from housing and infrastructuredevelopment accounts for a great proportion Till 2008, the Corporation has put into

operation 140 blocks of apartments with totally 2.3 million square meters The total area

of new urban zones is over 2,000 ha in the whole country

- Post graduates: 35 people, accounting for 2.45%

- University graduates: 788 people, accounting for 55.18%

- Junior College graduates: 211 people, accounting for 14.77%

- Others: 394 people, accounting for 27.59%

The Corporation has also divided and organized many departments which verynecessary for the activities of companies now such as operational, site-clearance,planning, project management and marketing The strengths and weaknesses of its humanresources are as follows:

Table 2.1: Strengths and weaknesses of human resources

- Plentiful human resources

- Suitable qualifications and experience

- Good organization structure from

project obtainment to site clearance,

design, construction, supervision,

quality control, economic and financial

planning

- As compared to the development ofthe Corporation and the projects theCorporation has been carrying out, itsworkers have not yet had high skillsenough

- High-ranking management leadershave not yet developed their full

- Having its project management board

with decentralization at sites to timely

get information for decision-making

- Marketing staff have good relations

and impressions on clients and

competent authorities who help them

find more investment opportunities for

the Corporation

- Having a rather strict control system,

having control board of each division

which can support and encourage

divisions to improve difficult situations

capacities

- The circulation of staff and workersfor big projects and simultaneousprojects is still not flexible

- There is insufficient investment in tomarketing research unit so that they canstudy more about the market, thegeographical characteristics and habits

of the people of localities where projectsare located, economic efficiency andfeasibility of projects

2.2.2 Financial resource

The Housing and Urban Development Corporation (HUD) is a 100% State-ownedenterprise, specializing biggest real estate projects in Vietnam Capital is a very importantfactor for all enterprises, especially in construction industry At the moment, theCorporation has its own equity of 1,800 billion Vietnamese dong (equivalent to onehundred million US dollar) In the recent time, the Corporation has successfully kept itsstability and development despite of financial crisis and stand-still real estate market to beinitiative in financial potential for investment

Table 2.2: Capital Development Data

4 Additions from implemented projects 1.700

(Source: HUD, 2009)

In 2008 alone, the mother Corporation itself created the capital flow of VND 4,685billion

Table 2.3: Capital Mobilization in 2008

(billion dongs)

Percentage per total capital flow

1 Total business value billion dongs 2,619 3,929 5,000

Construction billion dongs 961 1,500

Business billion dongs 2,967 3,500

4 Contributions to State

5 Closing own equity billion dongs 1,065 1,421 1,856

6 Investment capital billion dongs 2,125 2,542 4,000

7 Total construction floor

2 337 399 320

8 Average income million

Short-term Payment Coefficient (times) 1.21 1.11

4 Profit Margin