Nghiên cứu lược phát triển của Tổng công ty Cổ phần Vận tải Dầu khí đến năm 2025 (2)

Header Page of 166 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF MINE AND GEOLOGY NCS NGUYỄN NGỌC ANH NGUYỄN NGỌC ANH RESEARCH OF DEVELOPMENT STRATEGY OF PV TRANS TIL THE YEAR 2025 Profession: ECONOMIC MANAGEMENT Code: 62.31.04.10 THESIS SUMMARY OF ECONOMIC PHD HÀ NỘI - 2017 Footer Page of 166 Header Page of 166 Thesis completed in: Department of Economics and Business Administration University of Mine and Geology Scientific instructors: Professor, PhD Phan Huy Đường PhD Vương Huy Hùng Reviewer: Professor, PhD Nguyễn Kế Tuấn A Professor, PhD Nguyễn Trọng Hoan A Professor, PhD Nguyễn Hồng Thái Thesis will be protected in front of Basic Thesis Adjustment Council in University of Mine and Geology at time: date: month: of the year 2017 Can find thesis at: - Hanoi National Library - Library of Geological – Mine University Footer Page of 166 Header Page of 166 OPENNING Necessity of Topic In member companies under PVN, PetroVietnam Transportation Corp., PV Trans is the only Marine Transportation Corp with 51% state shares At present, PV Trans has a big and stable market domestically thanks to industrial zones which have gone into operation including Dung Quat petrochemical zone (2009), Nghi Sơn (2017) Thermoelectricity factories which will go into operation including Vũng Áng, Thái Bình, Nhơn Trạch and ect and some projects of gas exploitation in the sea off provinces Quảng Nam, Quảng Ngãi, Kiên Giang, Phú Quốc and ect will expand business opportunities for PV Trans in the time to come In period between 2006 and 2015, implementing policy of Vietnam Party and State for arrangement and renovation of companies, PVN has ordered member companies to restructure Member companies make a big change in qualification, independence and responsibility in framework controlled by parents companies to unite and agree to implement a general development target So, period from now to the year 2025 is the one to accelerate development of PV Trans Before expansion of business opportunities, PV Trans needs to make a new process of development with bigger and longer scale Doing that, PV Trans must make a development strategy with scientific and real basics So, Topic “Research of development strategy of PV Trans till the year 2025” with general purposes researches theory frame through general documents, domestic and international researches and experiences in making a development strategy of company, applying to analyse inside and outside environment and other basises to make the best development strategy for PV Trans in the period between 2016 and 2025 and proposing measures to implement it necessarily and timely Research purposes 2.1 General purpose On the scientific and realistic basis, to adjust reality of inside and outside environment affecting production and business activities of PV Trans, thesis makes a theoretical points of science to tends to development strategy and proposes main measures to successfully implement development strategy of PV Trans in the period between 2016 and 2025 2.2 Specific purposes First, making a theory frame for research of making development strategy for a company generally, a corporation operating in the model of Parents Company and Subsidiary Company particularly In that, clarifying basic contents of process of development and elements of research and adjustment in process to make Footer Page of 166 Header Page of 166 development strategy Second, to collect and analyse experience in making development strategy of some national companies, corporations for a PV Trans lesson Third, to analyse and adjust realistic situation of elements of inside and outside environment affecting activities of production and business of PV Trans in the time of research to identify tendency affecting activities of production and business of PV Trans (for elements of outside environment) and strong and weak points (for elements of inside environment) Fourth, to make theoretical points of science to identify development strategy for PV Trans in the period between 2016 and 2025, to propose measures of scientific base to successfully implement development strategy for PV Trans Research question: to implement research purposes, thesis till focus on researching and answering the below questions: Basic features for development strategy of a corporation operating in model of Parents company and Subsidiary company? The steps of process to make development strategy of a corporation operating in model of Parents company and Subsidiary company? To use what model to analyse, adjust, make and choose the best development strategy of a corporation operating in model of Parents company and Subsidiary company? Elements of business environment and internal elements of PV Trans will create any opportunity and challenge for development of PV Trans in the coming time ? In the period between 2016 and 2025, how PV Trans has a mission, vision and purpose for development ? What development strategy PV Trans can apply in the period of 2016-2025? Indentified content of strategy? What key measure is made to successfully imeplement it ? Purpose and scope of research 4.1 Purpose of research:Thesis focuses on research to make development strategy of PetroVietnam Transportation Corporation in the period between 2016 and 2025 4.2 Scope of research:To research basic contents in making depvelopment strategy, adjust reality situation of elements of inside environment, outside enviroment and propose measures to implement it for the period of 2016-2025 Research method To implement purpose of research, the thesis takes a qualitative and quantitative research method with research frame is detailly mentioned in chapter New contribution of thesis Footer Page of 166 Header Page of 166 In scientific side: the thesis confirms a detailed and full access of important and necessary elements of business environment, including micro enviroment; industry environment; internal environment of company in process of making development strategy for PV Trans In realistic side: the thesis makes a development strategy, a reference document for the Management of PetroVietnam Transportation Corp in effectively adjusting activities of production and business in the future Content of thesis Chapter 1: Overview of research concerning the topic Chapter 2: Therory basis on making development strategy of PV Trans and research method of topic Chapte 3: Analyse real situation of development strategy and elements affecting it for PV Trans Chapter 4: PV Trans development strategy till 2025 Chapter OVERVIEW OF RESEARCH ON TOPIC 1.1 International research 1.1.1 Researches concerning concept and role of strategy 1.1.2 Researches concerning administration of strategy 1.2 National research 1.2.1 Researches concerning concept, role and classification of strategy 1.2.2 Researches concerning management of strategy 1.2.3 Researches concerning marine transportation and making development strategy for some marine transportation companies PhD Cao Ngọc Thành with his work : “Develop Vietnam marine transportation till the year 2020 and tend to 2030” Professor, PhD Phạm Văn Cương with his work “Strategic management in Vietnam marine companies” PhD Thesis of Ms Lê Thị Việt Nga: “Develop Vietnam marine transportation serives to meet the needs of international intergration ” However, in thesises, makers just generally research in making development stategy and business strategy for companies 1.3 Conclusions of general research 1.3.1 Some the most agreeable issues First, strategy management is a colletion of decisions of management and activity to tend to complete the long-term purpose In reality, it is a method companies make strategy, evaluate implement effect and adjust it as needed Footer Page of 166 Header Page of 166 Second, process of strategy usually incluces some steps along with identified contents In structure, generally the strategies are similar However, for different companies, structure of a strategy can be different A strategy can have less parts because some similar contents can be combined in a part for logic and un- repeating On the other side, a strategy can have more parts because some similar contents can be seperated in a part to emphasise seperated content Name of strategy parts can be different according to different strategy making boards Order of parts in structure of a strategy can be changed 1.3.2 Research space Above researches with legislative basis is a basic to “ research development strategy of PV Trans till the year 2025” Thus, thesis must research and clarify the below issues: First: continue to research theory basis to flexibly apply to make PV Trans development strategy Second: research experiences in making development strategy of some national and international companies, particularly the ones doing business in marine transportation to take a lesson of experiences for make PV Trans development strategy Third: Analyse national and international environment particularly the environment of business of marine transportation services to point out opportunities and challenges for PV Trans development strategy in the coming time Fouth: Analyse and evaluate realistic situation of PV Trans in all sides including business activity, human resource, finance, technical and materialistic basis, structure of management organization and ect to point out strong and weak points Fifth: Combine opportunities and challenges with strong and weak points to make strategic scripts for PV Trans Sixth: Declare mission, vision and target of development for PV Trans til the year 2025; Propose measures to implement targets of PV Trans development strategy Conclusion of chapter Chapter of thesis clarifies the below basic contents : First, the thesis outlines national and international researches in 03 groups: Researches concerning concept, role and strategy classification; Researches concerning strategic management; Researches of making content structure of a strategy Second, thesis confirms research space of research in making development strategy for companies in general and PV Trans in particular Footer Page of 166 Header Page of 166 Chapter THEORY BASIS ON MAKING DEVELOPMENT STRATEGY FOR PV TRANS AND RESEARCH METHOD OF TOPIC 2.1 PV Trans Development Strategy 2.1.1 Concept of PV Trans Development Strategy: PV Trans Development Strategy has the below basic features: (i) Development strategy covers all activities of PV Trans And usually, just Senior Managers have sufficient and necessary capability and vision to understand giant affect of strategical decision and sufficient right to arrange necessary sources (ii) Development strategy affects prospect of PV Trans in a long time because PV Trans has pledged to implement a development strategy, it means to advertise image and point out competitive advantages of PV Trans in the market (iii) Strategical issues usually tend to the future because they are made on managers’ predicting rather than knowing It’s important that the more predictions are tight and exact, the more PV Trans finds the best choices for development strategy A corporation just succeed as it has active position (prediction) with change of environment 2.1.2 Upgrade PV Trans strategy Generally, in an organization, corporation operating in model of Parents company and subsidiary company particularly has strategical levels : (1) Strategy of organization level; (2) Strategy of business units level - Strategy SBU; (3) Strategy of fuction level 2.1.3 Role of development strategy for PV Trans Importance of development strategy for PV Trans presents : First, development strategy confirms action tendency for PV Second, development strategy basically makes action plan for operation of PV Trans Third, development strategy enhances effect of PV Trans Fouth, development strategy makes a qualitive change for PV Trans Fifth, development strategy is a tool to increase pleasure of employees in PV Trans In conclusion, without strategy, corporation is like a ship without wheel Most of failure of companies in general and corporation in particular are in lack of strategy, wrong strategy or making mistake in implementing strategy 2.1.4 Basic content of development strategy of PV Trans Footer Page of 166 Header Page of 166 Development strategy Basis to make strategy Purpose of strategy Strategic plan/development tendency Implementation measure Table 2.1: Basic content of PV Trans development strategy 2.2 Process of making PV Trans development strategy 2.2.1 Analyse business environment 2.2.1.1 Analyse business environment outside PV Trans a) Analyse macro environment First, analyse political and legislative environment Second , analyse economic environment Third, analyse technical environment Fouth, analyse social and cultural environment Fifth, analyse natural environment Sixth, analyse international environment b) analyse industrial environment Potential opponents Risks of new comer Negotiable Supplier power of Supplier Competitors in industry Competition of current opponents Negotiable power of Buyer Buyer Risks from replacement product Replacement product Graphic 2.3: Model of competitive forces of M.Porter 2.2.1.2 Analyse environment inside PV Trans a) Analyse financial capacity of PV Trans b) Analyse human resource of PV Trans c) Analyse productive capacity of PV Trans d) Analyse marketing capacity of PV Trans Footer Page of 166 Header Page of 166 e) Analyse research and development (R&D) of PV Trans f) Analyse organization structure of PV Trans So, after process of analysing inside environment of PV Trans, we can identify strong and weak points of PV Trans comparing with other competitors in market It’s an important basis for making development strategy of PV Trans in the next operation time 2.2.2 Identify mission and vision for PV Trans development strategy Mission of PV Trans : identify its basic purpose, shortly present reasons of its existing and what PV Trans must to reach its vision Vision of PV Trans : identify how PV Trans will be in the future, it’s the starting point for answer to question “ Where we want to go?” 2.2.3.Identify purpose for PV Trans development strategy Right strategy purpose needs the below features:[9] First, features for organization: strategy purpose must be more specific than declaring mission but not extremely specific because we not want so many purposes in strategical plan Second, Measurable: Purpose must be detailed by targets, so it’s necessary to make an exact target to measure process to tend to reach each of specific purpose indentified Third, Ambitious: purpose showing ambition that organization wants to reach, thus it’s surely possible Fouth, Possible and Relevant: purpose must be possible and relevant to condition and resource of organization Fifth, Timely: purpose must be timely to be reached Sixth, Importance : there are hundreds of purposes in strategical plan, but we must confirm the most important ones, the less important (purpose at the lower level answers question “How”) is unnecessary to remove but we must take it into working plan Seventh, Reflective: strategic purpose must reflect analys in the process of making strategical plan That’s the reason why we must analyse evironment before making strategical purpose 2.2.4 Make choices for PV Tran development strategy First, Directional strategy: making a general tendency for PV Trans is to grow, be stable or narrow Second , Portfolio strategy: mentioning fields, industry, product that PV Trans can produce or supply market Third, Parenting strategy: mention management method to aim to joinly Footer Page of 166 Header Page 10 of 166 operate, transfer and use resource, to make capacity among industries and operation field of PV Trans 2.2.5 Evaluate and choose the best development strategy for PV Trans a) Purpose to evaluate and choose the best strategy plan b) Tool of evaluating and choosing the best development strategy 2.2.6 Propose and decide PV Trans development strategy After process of evaluating plans, one will be chosen Now, we need to decide to arrange HR and other resources of PV Trans to implement the plan The plan of PV Trans must be made to describle specific mission and necessary action to implement development strategy, when and who will be responsible for implementing it The plan must be possible in condition of limit in time and financial and human resources and ect Next step is to propose and decide development strategy in paper 2.3 Some models of making and choosing development strategy of a company 2.3.1 Models of analysing company environment 2.3.1.1 Matrix to evaluate outside elements - EFE 2.3.1.2 Matrix to evaluate inside elements - IFE 2.3.1.3 Matrix of competitive image 2.3.2 Model of tending strategy 2.3.2.1 Matrix SWOT Currently, matrix SWOT is a tool the most seen in forming strategy tendencies and trusted by big and small companies in the world as well as Vietnam Opportunity s1 o1 s1o1 Strong point Threat oh t1 s1oh s1t1 sioj sn sno1 w1 w1o1 Weak point wm wmo1 tk s1tk si t j snoh snt1 w1oh w1t1 wioj sntk w1 t k witj wmohlh wmt1 Graphic 2.5: Matrix SWOT Including : oj possible opportunities tj possible threats si strong points wi weak points Footer Page 10 of 166 wmtk Header Page 13 of 166 11 appropriate in environment unstability and strategy tendency of PVN Fourth, process in making PV Trans development strategy must guarantee a rule : participation of PVN Senior Managers, member companies or even we can take ideas of all PV Trans staffs to guarantee that strategy is formed with the most possibility Fifth, content of chosen development strategy must guarantee PV Trans stable development and be appropriate in environment changes of international economy integration process of Vietnam 2.5 Thesis research method 2.5.1 Research theory frame PV Trans environment analys Macro Environment Analys Industry Environment Analys Internal Environment Analys Identify mission and vision of PV Trans Identify development strategy purpose of PV Trans Identify development strategy choices of PV Trans Development strategy of PV Trans Directional strategy Development strategy purpose Portfolio strategy Development strategy content Parenting strategy development strategy implementation solution Graphic 2.8: Research theory frame in making PV Trans development strategy 2.5.2 Research process Step 1: Theory research in strategy, focusing on process of making PV Trans development strategy Step 2: Research and evaluate reality of elements of inside and outside environment Step 3: Use model including SWOT and QSPM Step 4: Evaluate realistic situation and propose key solutions to aim to successfully implement development strategy 2.5.3 Method of document collection and processing 2.5.3.1 Method of collection of research document and data 2.5.3.2 Method of process of research data Secondary data: It will be used directly or processed simply (ratio division) to compare and evaluate Primary data: It is from research and investigation and processed by Excell Footer Page 13 of 166 Header Page 14 of 166 12 Conclusion of Chapter Realistic and scientific researches show that successful companies are ones making themselves right and clear development strategies The development strategies need all members in company to make effort in implementation, to focus total resource under the Management of company and to be timely adjusted to bring the best effect for company First, chapter of thesis clarifies the most basic content in theory of making development strategy for a corporation to operate in model of Parents company and Subsidiary company The theory will be applied to reality of PV Trans business environment analys, then it helps thesis to note opportunities, challenges, strong and weak points of PV Trans to serve for making development strategy Second, chapter of thesis outlines some necessary models to serve business environment analys process, to form and choose the best development strategy for a corporation in operation of model and Parents company and Subsidiary company Third, thesis makes theory frame in research for development strategy of corporation operating in model of Parents company and Subsidiary company and points out research process, method of data collection and processing to implement research purpose Chapter ANALYSING REALITY OF DEVELOPMENT STRATEGY AND ELEMENTS AFFECTING PV TRANS DEVELOPMENT STRATEGY 3.1 Overview of PV Trans 3.1.1 History of forming and developing of PV Trans PetroVietnam Transportation Corporation abbreviated as PV Trans, before it’s PetroVietnam Transportation Company, a state company formed on May 27, 2002 as Decision No.358/QĐ-VPCP issued by Minister, Chairman of Government Office with authorized capital of 720 billion Vietnam dong PV Trans Office is based on Second Fl., Bldg at 43 Mac Dinh Chi St., Dist 1, HCMC Tel : +84 39111301, fax: +84 39111300 Website: www.pvtrans.com 3.1.2 Main operation of PV Trans Crude oil transpotation service; Product oil transpotation service; Gas and chemical product transpotation service; Petro shipping technology service; Logistics service 3.1.3 PV Trans organization structure Footer Page 14 of 166 Header Page 15 of 166 13 General Meeting of shareholder Board of Supervisors Board of Management Board of GD Office Board of Law Safety Board of HR Organization Board of Sales Financial and Account Board Board of Invesment Board of Planning and Investment PV Trans PSM Southern PetroTrans PV Trans OFS PV Trans Pacific PV Trans Vũng Tàu Gas Shipping PV Trans Hà Nội PV Trans PCT PV Trans Quảng Ngãi PV Trans Oil Associated Company PV Trans PTT Graphic 3.1: PV Trans organization structure 3.1.4 Member companies of PV Trans Table 3.2: Member companies of PV Trans til the end of 2015 Authorized Equity Ownership capital as Ownership Capital of ratio of Business ratio of PV No Company name PVTrans PVN in registration Trans (billion companies certificate(billio (%) dong ) (%) n dong) PV Trans Vũng Tàu 156,232 156,000 99,85% 58,31% PV Trans Hà Nội 108,100 107,800 99,72% 58,24% PV Trans Quảng Ngãi 20,000 7,600 99,87% 58,32% PV Trans Pacific 942,750 612,000 64,92% 37,91% Southern PetroTrans 582,565 405,623 69,63% 40,66% Gas Shipping 300,000 203,209 67,74% 39,56% PV Trans Oil 200,000 135,975 67,99% 39,70% PV Trans PCT 230,000 52,038 22,63% 13,21% PV Trans PTT 100,000 38,670 38,67% 22,58% Source: [61] Footer Page 15 of 166 Header Page 16 of 166 14 3.1.5 Overview result of business activity of PV Trans in the period of 2011-2015 Through data table of result in business activity of PV Trans in the period of 2011-2015, we can see that the key target has a rather good growth year by year in the period of 2011-2015 Gross revenue of the whole period reaches 25,344 bil gong getting 108% planning, annual average revenue is over 5,000 bil dong Gross profit of the whole period reaches 1.172 bil dong, getting150% planning; annual average gross revenue is 235 bil dong 3.2 Analyse current strategy of PV Trans 3.2.1 Analyse development strategy in the period of 2011-2015 of Parents Company (PV Trans) 3.2.2 Analyse affect of development strategy of Subsidiary companies for process of making development strategy of Parents Company - PV Trans 3.2.3 Analyse affect of development strategy of PVN for process of making development strategy of PV Trans 3.3 Analyse elements affecting development strategy of PV Trans 3.3.1 Analyse outside elements 3.3.1.1 Analyse macro environment a) Environment of politics, legislation and policy i) Environment of politics ii) Environment of legislation and policy b) Environment of economy i) Vietnam economic growth ii) Interest rate and tendency of interest rate in economy iii) Inflation in economy iv) Currency exchange rate c) Environment of ship technology and transportation capacity i) Vietnam ship fleet ii) Transportation capacity of PV Trans ship fleet d) Social and cultural environment e) Natural environment f) International environment 3.3.1.2 Analyse industry environment a) Analyse competitors b) Analyse customers c) Analyse suppliers d) Analyse replacement products Footer Page 16 of 166 Header Page 17 of 166 15 e)Analyse potential opponent 3.3.1.3 Evaluate reaction rate of PV Trans for elements of outside environment 3.3.2 Analyse inside environment of PV Trans 3.3.2.1 Analyse financial capacity of PV Trans Through target evaluation table reflecting financial quality of PV Trans in the period of 2015, we see that financial capacity of PV Trans is rather good, management capacity and financial resource usage make a great effect 3.3.2.2 Analyse HR of PV Trans Total employee number of PV Trans is 1,919 persons, as a specific industry, the male employees rate is over 70%, employee rate with B.A degree and higher than B.A degree take up 25-40% , it’s rather high 3.3.2.3 Analyse PV Trans production capacity PV Trans point in developing ship fleet is clear: First, developing PV Trans ship fleet in a modern way; Second, gathering source to guarantee safe and timely transportation of input material and get out output products for factories invested by PVN; Third, it is the first priority in usage of internal and national services in building some transportation means of PV Trans to support to enhance national ship building at the same time to decrease foreign currency loans So, PV Trans ship fleet has rather much limit, many ships are old – age Most of loans in ship investment project are in foreign currency, so change in exchange rate is a highly risky element in PV Trans annual cost 3.3.2.4 Analyse marketing capacity of PV Trans Parents company, the department to marketing under Board of Sales is R&D Dept Research market scale and tendency Research market price Content of general research of transportation market trường vận tải Research market affected Research market state elements Hình 3.11: Content of generally researching transportation market of R&D Dept of PV Trans 3.3.2.5 Analyse capacity of research and development of PV Trans PV Trans promotes to renovate and make innovation to renew and optimize Footer Page 17 of 166 Header Page 18 of 166 16 management, production and technology to save cost and to enhance productivity, service quality and business and production effect 3.3.2.6 Analyse PV Trans organization structure Current PV Trans organization structure is not really appropriate : it shows that tight connection of departments is not logical Staffs work in the way that staffs just work as what manager order It does not utilize activeness and innovation in solving work problems and causes dependance in staffs 3.3.2.7 Evaluate strong and weak points of inside elements in PV Trans Strong points PV Trans business activities develop well in the period of 2011-2015, it’s a good starting for PV Trans in the next period Trademark of PV Trans is appreciated PV Trans has been noted in top 500 of the biggest corporations of Vietnam in the year 2015 (VNR500) at the same time PV Trans is in the top 50 Vietnam the best with the most effect activity and contributes state budget so much and has the best growth in the period of 2010-2014 PV Trans ranks 10 in top 50 companies with the biggest brandname value in Vietnam PV Trans currently is the only transportation corporation in PVN with the biggest fleet of liquid cargo ships in Vietnam and capable of transporting in diversity (crude oil, product oil, liquid gas……) It takes an advantage in competition for PV Trans Weak points PVTrans ship fleet is becoming old and creates more cost as PV Trans has not invested in ships because financial difficulty remains PV Trans has not had long-tem strategy vision, marketing capacity is limited and R&D activity is not highly effect for operation of PV Trans Some PV Trans member companies have been in difficulty and unbalanced in finance It affects development strategy of PV Trans Conclusion of chapter Fisrst, generally reseach organization structure, role and function of departments, field of operation, and reality of business situation of PV Trans in the period of 2011-2015 Second, the thesis analyses outside evironment elements of PV Trans Then, it identifies opportunities and challenges for transportation business of PV Trans now and in the future Third, the thesis also analyses inside evironment elements of PV Trans and gets analys in comparision with some PV Trans competitors in specific business field Through that, the thesis indentifies strong and weak points of PV Trans to compare Footer Page 18 of 166 Header Page 19 of 166 17 with competitors Fouth, By research and investigation, researcher makes matrix to evaluate reaction rate of PV Trans for outside environment elements, strong and weak points of inside environment elements of PV Trans The results of two matrixes are base for choosing the best development strategy for PV Trans in the next chapter of the thesis Chapter DEVELOPMENT STRATEGY OF PV TRANS TILL THE YEAR 2025 AND VISION TIL THE YEAR 2035 4.1 Identify mission and vision of PV Trans 4.1.1 Mission of PV Trans PV Trans identifies its mission as below : First, PV Trans guarantee benefit of shareholders Second, PV Trans activities meet the need of services of transportation and petro marine (hàng hải dầu khí) in the nation and in the region the best Third, PV Trans guarantees living for all staffs Fouth, PV Trans joins to guarantee national energy security Fifth, PV Trans contributes to nationally economic and social development 4.1.2 Vision of PV Trans PV Trans tries to become the biggest corporation of petro transportation and marine service in Vietnam and a strong brandname in the region PV Trans develops quickly, strongly and stably to take its persons as the key element to enhance management capacity, administration, competition and business effect by utilizing all available resources 4.2 Purpose of development strategy of PV Trans 4.2.1 General purpose PV Trans determines to keep its position as the biggest jointly- owned corporation of transportation and service of petro marine in Vietnam at the same time to develop to become a strong transportation brandname in the region and in the world 4.2.2 Specific purpose Specific purpose of PV Trans development strategy is outlines in figures table presenting some business targets of PV Trans in the period between now and 2025: Footer Page 19 of 166 Header Page 20 of 166 18 Table 4.1: Key targets of production and business in the period of 2016 - 2020 of PV Trans No I II III 1.1 1.2 1.3 1.4 1.5 1.6 IV IV V VI Target Owners’ equity Authorized capital Gross revenue From transportation services - Crude oil transportation - Oil product transportation - Gas product transportation - Chemical transportation - Coal transportation - Other transportations From services of FSO/FPSO Business in trade From other services Financial activities Gross profit Gross profit rate/Owners’ equity After - tax profit After-tax profit/ Owners’ equity State budget contribution Dividents devision rate 2016 3.325 2.814 5.577 2.991 1.031 691 587 264 418 733 1.647 116 89 308 9,3% 247 7,4% 229 10% year plan 2018 4.142 3.405 8.844 5.797 2.248 980 682 76 651 1.349 439 461 807 887 1.793 39 122 128 87 92 388 482 10,0% 11,6% 310 385 8,0% 9,3% 286 362 10% 2017 3.868 3.096 6.960 4.152 1.638 775 649 2019 4.259 3.405 9.729 6.445 2.361 1.029 716 153 1.702 484 976 2.088 134 86 517 12,1% 414 9,7% 395 2020 4.930 4.086 10.268 6.767 2.479 1.081 752 160 1.787 508 1.031 2.239 141 90 545 11,1% 436 8,8% 417 10% Table 4.2: Targets of main production and business in the period of 2021 - 2025 of PV Trans No Calculation 2021 2022 2023 2024 2025 2030 2035 Unit Owners’ equity Bil đồng 6.869 6.915 7.327 7.536 8.242 8.728 8.508 Authorized Bil đồng 3.405 3.405 3.746 3.746 4.121 4.121 4.121 capital Gross revenue Bil đồng 8.998 10.014 10.551 10.709 10.873 12.752 13.750 Bil đồng Gross profit 605 663 691 806 795 901 1.002 Gross profit/Average % 18,6% 19,5% 19,3% 21,5% 20,2% 21,9% 24,3% Authorized capital After-tax Bil đồng 488 534 557 649 641 726 808 profit After-tax profit /Average % 15,0% 15,7% 15,6% 17,3% 16,3% 17,6% 19,6% Authorized capital State budget Bil đồng 373 392 404 432 435 523 573 contribution Targets Source: PV Trans Footer Page 20 of 166 Header Page 21 of 166 19 4.3 Propose development strategy of PV Trans till the year 2025 4.3.1 Make plans of development strategy for PV Trans 4.3.1.1 Make matix SWOT for PV Trans 4.3.1.2 Make matix BCG for PV Trans 4.3.1.3 Make matix Kc Kinsey for PV Trans 4.3.2 Choose the best development strategy for PV Trans 4.3.2.1 Analyse to choose the best development strategy Choosing development strategy through quantitative strategy planning matrix QSPM is made by usage of research result reached in chapter along with idea reference to 56 managers of PV Trans 4.3.2.2 Make content of chosen development strategy a) For crude oil transportation (i) Market evaluation (ii) Make specific purpose First, for Dung Quat oil refinery factory (before expansion) Second, for Nghi Son petrochemistry refinery factory project Third, for Vung Ro Oil Refinery factory project b) For transportation of oil product and chemistry (i) Market evaluation First, for product oil transportation Second, for petrochemistry transportation (ii) Make specific purpose First, for Dung Quat oil refinery factory (before expansion) Second, for Nghi Son petrochemistry refinery corporation Third, for Southern petrochemistry project c) For transportation of liquid petroleum gas - LPG (i) Market evaluation First, Dock Project LNG Thị Vải: capacity of mil tons/year in Ba Ria Vung Tau province is expected to go into operation by the end of the year 2017 Second, Dock Project LNG Son My: first capacity of mil tons/year in Binh Thuan province is expected to go into operation in the period of 2019- 2020 to serve electricity factories in Sơn Mỹ (ii) Make specific purposes First, for oil refinery factory Dung Quất PVGas (Gas factory Dinh Cố and factory GPP Cà Mau) Second, for petrochemistry refinery project Nghi Sơn Third, for Southern petrochemistry project Fouth, for project oil refinery factory Vũng Rô d) For coal transportation : Footer Page 21 of 166 Header Page 22 of 166 20 (i) Market evaluation (ii) Make specific purpose First, for thermal power plant Vũng Áng Second, for thermal power plant Thái Bình and thermal power plant Thái Bình Third, for thermal power plant Long Phú and thermal power plant Sông Hậu e) for petroleum and marine service (FSO/FPSO): (i) Market evaluation (ii) specific purpose making 4.4 Solution of successfully impementing development strategy of PV Trans 4.4.1 Financial solution 4.4.1.1 Main targets First, increase and diversify additional revenue sources from PV Trans activities and utilize support from PVN Second, save 10% budget spending for management per year, money for R&D and Marketing, try to increase additional staff income in the way that the later year is 20% higher than the previous one, excluding salary increase and minimum salary rate adjustment 4.4.1.2 Main financial solution Mobilize capital for key investment projects in different channels, particularly in 03 ones : First, issue bonds to pay interest as business activity effect Second, borrowing capital from commercial banks : take avantage of prestige of PV Trans to access the borrowing capital flexibly and reasonally Third, reinvestment capital : retained earnings of PV Trans 4.4.2 Solution for HR 4.4.2.1 Main targets First, develop HR in quantity and quality Second, focus to develop a team of staffs in charge of R&D and Marketing to improve business cost and increase profit for PV Trans in the coming time 4.4.2.2 Key HR solutions First, for HR employment : actually, HR employment of PV Trans has greatly progressed, employment quality increases Second, for HR training and development : Lately, HR training and development of PV Trans is invested with diversity in expense sources and training method 4.4.3 Marketing solution 4.4.3.1 Main targets Footer Page 22 of 166 Header Page 23 of 166 21 First, make a professional MKT department to enhance research capacity and to predict marine transportation market to serve business activity of PV Trans Second, develop business market for PV Trans 4.4.3.2 Key marketing solution First, create a professional MKT department to implement proposed development strategy Second, develop business market for PV Trans 4.4.4 Solution in Research and Development In the next time, PV Trans needs to promote to train experts for R&D and strengthen activity for R&D Dept Make an big progress in technology to stably keep the leading position in the industry and enhance trademark prestigue for services by increasing transportation service quality supplying to customers 4.4.5 Solution in internationally economic integration PV Trans must actively find opportunies of co-operating with foreign partners with capacity and experience in petroleum transportation and petro marine service to deploy specific projects in national and international markets PVTrans must prepare necessary sources in finance to renew ship fleet, add new and professional transport ships to previously get and meet demands of national and international markets 4.4.6 Solution in management organization 4.4.6.1 Model of management of Parents company Make management model of Parents company which is in charge of role to tend development strategy, actively operate and invest in finance as model of big corporations in the world 4.4.6.2 Organization model of Parents company Professionally and tightly re- arrange organizion structure and management and identify functions, missions and activities of parents company and member companies to aim to utilize the available potential 4.4.6.3.Restructure member companies First, increase scale of authorized capital for some member companies which effectively business and operate in main industry at the same time enhance ownership rate of Parents company to increase control right Second, decrease ownership of some member companies Third, degenerate 100% capital in ineffectively-operated member companies Fourth, enhance management capacity of PV Trans member companies, particularly the ones with financial difficulty Fifth, check management work in member companies 4.4.6.4 Complete company management activities Footer Page 23 of 166 Header Page 24 of 166 22 Complete and standardize financial management process in the whole PV Trans : Strengthen mechanism of supervision and checking of state owner for PV Trans ; Strengthen transparency in internal finance management of PV Trans Complete and standardize mechanism of employment, HR training, policy of salary and bonus in the whole PV Trans to attract high quality HR 4.4.6.5 Complete system of report and evaluation of activity effect Check and complete system of report, mechanism of checking and evaluation of activity effect of member companies which is appropriate with reality and standards; Strengthen co-operation between Parents company and member companies and among member companies through economy contract, rules of co-operation and management 4.4.6.6 Manage changes Form Board of Strategy with participation of key managers : Chairman of Board of Members is the Head, GD and Deputy GD in charge of finance are Deputy Head and Chief Accountant is member Make mechanism of information exchange between Board of Strategy and departments and all staffs in PV Trans 4.4.7 Measure of environment protection PV Trans needs to update, add and make periodical and sudden check to guarantee that safety management system of PV Trans is made as request of International Safety Management Code (ISM Code) to aim not to have accidents and problems for persons, property and harm in environment Strengthen information work, education and make a big change in notes and action of Executive Committee of Party Hierarchy, Labor Union, Youth Union and all staffs for responsibility and awareness of environment protection 4.5 Condition and proposals 4.5.1 Necessary conditions to make strategy For mechanism and policy: For good conditions of business of PV Trans in the coming time, particularly in national market, Vietnam Government needs to remain protection mechanism by not allowing foreign ships to fly their national flags as transporting inside Vietnam For market: To successfully implement proposed development strategy for PV Trans till the year 2025, customers must guarantee the below elements: First, guaranteeing that PV Trans is alsways the only transportation corporation for Oil Refinery Factory Dung Quất even after expansion Second, remain and develop service of coal transportation of PV Trans for customers: Thermal Power Factory Long Phú 1, Thermal Power Factory Sông Hậu 1, Thermal Power Factory Quảng Trạch 1, Thermal Power Factory Vũng Áng and Footer Page 24 of 166 Header Page 25 of 166 23 Thermal Power Factory Thái Bình Third, to guaranty that PV Trans transports at least 30% input crude oil material, 50% petroleum products, output chemisty for Petrochemistry Refinery Corp Nghi Sơn; at least 50% chemical, input LPG and output products for Southern Petrochemistry Corp For finance: Need to invest to develop PV Trans ships fleet to serve to implement development strategy of PV Trans in the period of 2016-2025 is big PVN needs to guarantee and supply necessary finance source for PV Trans 4.5.2 Some proposals To successfully implement development strategy till the year 2025, PVN must concern and support some below issues: First, PVN supports PV Trans proposals as above mentioned including to strongly support that PV Trans is the only transportation corp for all petrochemistry refinery plants and coal power plants…….intested by PVN Second, support PVTrans to invest to enhance competition capacity of ship fleet Third, approve plan to buy some Vietnam transportation companies to increase capacity of ship fleet and it is the appropriate PV Trans development tendency to guarantee effect Fouth, PVN assigns PV Trans to supply transportation service of goods produced by factories of companies in PVN and construction equipments for projects invested by PVN; Fifth, to well implement long-term and stable purpose of development, PV Trans needs to make a big investment program, so PVN continues to guarantee loan for PV Trans with big investment projects Conclusions of chapter Chapter is the one to aim to make ending research of thesis, there are details as below: First, clearly indentify mission, strategy vission and development purpose of PV Trans in the preriod of 2016-2025 Second, the thesis proposes tendencies of big development strategy from analysing SWOT, the tendencies of development strategy is evaluated through matrix QSPM to find the best development strategy for PV Trans Third, clarify basic contents in chosen development strategy plan at the same time the thesis proposes some solutions to implement strategy and conditions to successfully implement the solutions Footer Page 25 of 166 Header Page 26 of 166 24 CONCLUSION Through research process, the thesis has reached some below results: First, the thesis overviews issues of development strategy for company, makes theory frame for research to make development strategy for company basing on acknowleged reality knowledge in nationally and internationally concerned science researches In that, the thesis deepens to clarify that process to make development strategy for company, tools to serve process of making development strategy for company It can be confirmed that, theory content made by the thesis is the chosen and developed inheriting of reseacher Second, the thesis draws a general picture of PV Trans business environment including macro environment and industry environment as well as internal environment of PV Trans with rule to guarantee current affairs, logic and science Third, the thesis uses matrix SWOT to make strategical tendencies from result of noted environment analys; use matrix QSPM to evaluate quantity and choose the best development strategy for PV Trans in the period of 2016-2025 Fouth, the thesis proceeds to propose detailed development strategy content for PV Trans in the period of 2016-2025 ; At the same time, the thesis makes some key solutions and proposals to implement development strategy Hopefully, achieved results of the thesis is a proposal greatly concerned by Management of PV Trans in administration of the corporation in the next period Footer Page 26 of 166 Header Page 27 of 166 DECLARED SCIENTIFIC RESEARCHES Nguyễn Ngọc Anh (2013), “Vission of PetroVietnam till the year 2025 on LPG transportation”, The first international science conference with topic “ Economic management in mineral activity ”, University of Mine and Geology, page 161 Nguyễn Ngọc Anh (2016), “Making development strategy for a state-owned corporation”, Asia Pacific Economy Magazine, edition in the end of May of 2016, page.25 Nguyễn Ngọc Anh (2016), “Analysing basis to make development strategy from internal environment of PetroVietnam Transportation Corporation ”, Asia Pacific Economy Magazine, edition in June of 2016, page 46 Footer Page 27 of 166 ... capacity of PV Trans Through target evaluation table reflecting financial quality of PV Trans in the period of 2015, we see that financial capacity of PV Trans is rather good, management capacity... VOSCO pledges to supply services with the highest quality, guarantee of safety for people, ships, cargo and environment is the first priority 2.4.3.Experienced lesson for PV Trans in development... PV Trans a) Analyse financial capacity of PV Trans b) Analyse human resource of PV Trans c) Analyse productive capacity of PV Trans d) Analyse marketing capacity of PV Trans Footer Page of 166