In 2003: Building Chu Lai-Truong Hai Auto Manufacturing and Assembling Plant at ChuLai Open Economic Zone, Nui Thanh district, Quang Nam province; In 2004: Establish Chu Lai – Truong Hai
Trang 1Build HR development strategy in the phase of the five years (2013-2018)
of Truong Hai Auto Company
I OVERVIEW OF THE COMPANY
1. Overview of THACO
On April, 29th, 1997, after the registration procedure as required, Dong Nai provincial People’s Committee granted the company establishment license No.003433/GP-TLDN-02, named TRUONG HAI AUTO COMPANY LIMITED and on May 17, 1997, Dong Nai’s Department of Planning and Investment issued business license for the company No.054148 with the charter capital of VND 2.500 billion
As of 6/2012, total number of staff, officers is nearly 7,000 people, in which, there are nearly 4,000 people in Chu Lai – Truong Hai auto complex Major business activities of THACO are: Manufacturing - Assembly - Distribute and supply maintenance repair services and auto parts, business activity of IZ - Urban - Real estate business investment
Trang 22. Structure of Truong Hai Auto
3. The development stages of the Company:
In 1997 - 1998: Repurchase the car maintenance, exhibition center of An Hung Company.
Being sales agent for companies: Daewoo, Mitsubishi, Daihatsu, Mercedes Import, refurbish old cars
On 05/10/1999: Establish a branch in Ha Noi.
In 9/2001: Establish Manufacturing-assembling Tracimexco - Truong Hai Auto factory to
assemble KIA reach-in vehicle in Vietnam
On 22/01/2002: Establish a branch in Da Nang
Trang 3In 2003: Building Chu Lai-Truong Hai Auto Manufacturing and Assembling Plant at Chu
Lai Open Economic Zone, Nui Thanh district, Quang Nam province;
In 2004: Establish Chu Lai – Truong Hai Shipping Company - Put Chu Lai – Truong Hai
auto manufacturing & assembling factory in operation specializing in manufacturing and assembling of trucks, buses
In 2005: Establish: Specialized chemical plant, Vietnam CNA car seat factory,
electromechanical company
On 06/4/2007: Converting model from Limited Liability Company to a joint stock
company, capital increased to 680 billion dong
- Build KIA tourism car assembly factory at Chu Lai,
In 2008: Establish Industrial - urban infrastructure Investment Development Company at
Chu Lai - Truong Hai
- Develop and put in use An Suong Showroom, Binh Trieu Showroom, Phan Thiet Showroom, Duc Trong Showroom, Tien Giang Showroom, Showroom and service workshop in Hoang Hoa Thanh Hoa
In 2009:
- Establish Chu Lai - Truong Hai automotive mechanics Industrial Park
- Establish Chu Lai - Truong Hai Company and investing in the construction of Hoa Thuan new urban area
- Establish steel processing and supply plants
- Establish Chu Lai - Truong Hai Basic Engineering Plant
- Establish Autocom seat factory
- Develop and put into use Bien Hoa Tourism car showroom, Bien Hoa Foton + Hyundai Showroom, Can Tho Showroom
In 2010:
- Launch to set up Bus factory, with capacity of 3,000 buses / year
- Establish Factory of industrial refrigeration
- Launch to set up Tam Hiep Chu Lai - Truong Hai port phase 1;
- Launch to set up bonded warehouses with 33ha and establish Electromechanical Company
- Establish Chu Lai - Truong Hai Vocational College
Trang 4- Develop and put into use Lai Thieu Showroom, Vinh Long Showroom; TM Giai Phong Showroom;
In 2011:
- On 17/6/2011, Inaugurate THACI bus plant and introduce the Vietnamese brand bus line
On 21/10/2011, VinaMazda inaugurated VinaMazda Auto Manufacturing & assembling
-On 11/18/2012, inaugurate KIA Giai Phong - Ha Noi showroom;
- Develop and put into use Phu Nhuan Showroom (Kia Nguyen Van Troi), Kia Showroom District 7, Mazda Showroom District 7, Commercial Showroom District 7; Binh Tan Showroom; Mazda Bien Hoa Showroom; Tam Ky Showroom; Kia Giai Phong Showroom; Kia Long Bien Showroom; Kia+Foton Quang Ninh Showroom; Ha Nam Showroom; Cong River Thai Nguyen Showroom, TM Lang Son Showroom
In 2012:
- Complete and put into use Chu Lai - Truong Hai Port phase 1
- Build Hyundai Chu Lai - Truong Hai Motor manufacturing and processing plant
- Develop and put into use Huyndai Da Nang Showroom, Foton Da Nang Showroom, Quang Binh Showroom, Kia+Mazda+Peugeot Vinh Showroom, Kia Hai Phong Showroom
4 Vision
The company will try to achieve a stable and high growth rate, bring investors maximum efficiency and become the country's pride as a Vietnam-branded automaker
5. Mission
Create THACO-branded products to improve living quality of users
Strive to make THACO become one of Vietnamese brands well known in AFTA area and in the world
On the sustainable development foundation, THACO will focus on developing human resources and assets, contributing to the country's development process of economy, culture, society and engineering industry in the future
Business results in recent years
Trang 5II. OBJECTIVES, STRATEGY AND BUSINESS PLANS
• Improve the core competence of the company: The ability to produce in
large-scale, modern technology combined with management model of full value chain
• Target: Build a complete closed auto business system from component
manufacturing, parts, assembly, transport and distribution of direct retail systems and provide repair services and spare parts after sales, with various categories and product segments
• Penetrated market strategy, constantly expanding market share: Increase
production scale, technology investments to improve productivity, product quality, expanding distribution network, after sales service and sales support
• Market Development Strategy: Aiming for gaining and maintainning No 1
position in VN market and towards the AFTA region
• Vertical integration strategy in the opposite direction: Enhance localization rate,
reduce imports, Set up many companies in the supply chain Develop specialized
distribution system.
For orientations, views, methods and especially management strategic adjusted in the period
2013 - 2018, Thaco plan in 2013 is oriented to implement as follows:
- Retail systems: Implement the active program: "Improve operation activities of dealers
and attached showrooms system " to capture the demand for products and after-sales
service, for services in the best way, to achieve the confidence and the highest market share
in each provincial market, the city of the country
- Regional branches: Strengthen apparatus branch in the North, Central and South regions
towards decentralization act ends of the distribution, management and market development
as well as marketing operations Also as a part of owner (ensure effective activities) of
Trang 6attached showroom system in the area Research, test apparatus to set up the domain branch directly under regional branch to improve capacity management in the future
- Production and sales of commercial vehicles (trucks and buses): Focus on developing
additional products with specifications, in accordance with the changing requirements of the market according to the characteristics of each area, each region in order to increase market share over the years
- Production and sales of tourism car: Increase brand value and market share for Kia car
line Increase sales and market share for Mazda achieved 5th place in the market, ensuring business Mazda cars profitably Introduce and put into production Peugeot car line for car tourism business being full of segments: South Korea, Japan and Europe in 2013
- Chu Lai Truong Hai Complex and Auto Manufacturing Industrial Park : Restrict to
expand investment in infrastructure, investment in-depth focus on human resources and equipment to suit changing technology , in order to improve quality, reduce production costs Develop new products according to changing requirements of the market through the development of research and product development (R & D), and increase cooperation with other ministries and partners to develop manufacturing and automotive assembly technology to keep up with the region Support and participate in managing SMT manufacturing specialized vehicles Company, forming nodal raw materials and spare parts
to provide in Korea, through developing production technology of specialist vehicles in Vietnam
- Delivery and transport: Continue project specialize in delivery and transport business,
further reduction in the cost of delivery and internal warehouse, enhancing external business
to increase efficiency for Chu Lai - Truong Hai port
- Investment and basic construction: Continue to invest in building new showrooms more
suitable plan for cars in the key areas, extension of the construction of supermarkets cars combined commercial center Participate in infrastructure, urban development projects and consider this as a new business line of the company in the future
- Marketing: There are overall and specific orientations, as well as strategic marketing
plan for Thaco brand and specialize for each business line, every vehicle, every market area; being always flexible dynamic to response with the change of market and operating decentralized control in a scientific way, closely to improve market share, increase revenue and reduce costs in tough, narrow market conditions
Trang 7- Financial Accounting Management: Implement program "parallel accounting
management" strong to manage budgets and expenses rigorously, ensuring effective way
under thinking change, way to do Accounting personnel involves in the management, parallel in all business activities
- Human Resources: Implement program "Parallel Human Resources" strongly to manage
and develop staff towards training positive attitude, learning to improve professional skills and administration Leadership Development and evaluation of the effectiveness of human resources as well as the performance of each component unit, thereby fulfilling reward program exceeded delivery quarterly, first applied to parts sales and service in the attached showrooms Improve HR profession through adjustment of policies; rules and regulations based on a philosophy of proactive, strategic perspective and human resource development, and in accordance with the laws and new development trends of economy and society in the future
- Corporate cultural management: Develop and implement corporate cultural
management based on conclusions during the formation and development as well as
philosophy, vision, mission to preserve and core value of Thaco, considering this as a
prerequisite to ensure the long term sustainable development First, establish the sense of discipline, mental discipline and culture disciplines in each of departments, and units throughout Thaco
- The operation of the main office in Ho Chi Minh City and offices in Hanoi, Da Nang, Chu Lai, Bien Hoa: Implement programs to improve the operational capacity of the
operational units such as Planning, Culture and Communications, Human Resources, Operations Secretarial, Finance and Accounting, Information Technology, marketing Technology, Legislation aimed at administrators and professional support for business
activities Develop a routine and effective work for the offices, especially the general management office in Ho Chi Minh City, worthy being Thaco advisory body of corporate activity management effectively , properly oriented, and under plan and being Thaco representative image for partners, customers and society
III. STATUS OF MANPOWER
Overall, Vietnam is considered as the advantages because of large population, it is in the period of "golden population", workforce at the age of labor is abundant This is really
Trang 8important resources to make our country successfully economic development strategy for phase 2011-2020 issued by Congress Socialist Party XI on 16/2/2011 However, the quality
of human resources in Vietnam is still low and needs to be improved as soon as possible
According to the census of May 12/2010, Vietnam has nearly 87 million people This reflects Vietnam's workforce growing abundantly Vietnamese manpower is composed mostly of farmers, workers, intellectuals, businessmen, and manpower of many sectors In which, human resources who are farmers are nearly 62 million people, accounting for over 70% of the population, human resources who are workers are 9.5 million people (nearly 10% of the population); intellectual manpower, graduated from colleges, universities are more than 2.5 million people, representing about 2.15% of the population, human resources from the business are about 2 million people, of which the central sector has nearly 1 million people The appearance of the young entrepreneurs is seen as a new factor in human resources, if known to exploit, foster, use effectively, it will solve many important problems in economic – social development
Currently, Vietnam is forming two human resource types: universal human resources and high quality human resources Universal human resources now remain majority, while the proportion of high-quality human resources account for a very low rate The current lack
of Vietnam is not universal human resources but high quality manpower According to 2010 statistics, out of 20.1 million workers have been trained on a total of 48.8 million workers working, only 8.4 million people with diplomas and certificates issued by the training centers at home and abroad The number of people aged 15 years or older trained technical expertise is very low, accounting for about 40% Training structure is irrational showing by the ratio: University and higher University is 1, secondary vocational schools is 1.3 and technical workers is 0.92, while in the world, this ratio is 1-4-10 According to the World Bank (WB), Vietnam is a shortage of qualified skilled, high technical workers and workforce quality of Vietnam is lower than many other countries If taking a point scale of
10, the human quality of Vietnam is only 3.79 points (placed 11/12 among Asian countries ranked by the World Bank) while South Korea is 6.91, India is 5, 76; Malaysia is 5.59, Thailand 4.94
Labor allocation structure by the industry is imbalance Engineering - technology, agriculture - forestry - fishery are weighted lower, while the law social industry, economics, foreign languages .are too high Many industries and sectors have both redundant and
Trang 9insufficient manpower The fields are currently lacking labor such as: financical Business, banking, auditing, information technology, electronics, telecommunications, mechanical engineering
For the Auto industry today, the current review, the manpower needs of the industry in Vietnam is ranked 8th after the other industries, as follows: (1) Textile Garment Footwear skin – Crafts; (2) Food Processing technology; (3) Information Technology -Electrical - Electronics – Telecommunications; (4) Construction - Architecture - transport; (5) Services Serving Travel Recreation Restaurants Hotels; (6) Management -Administration office; (7) Finance - Banking - Accounting - Insurance; (8) Mechanical Engineering - Metallurgy - motorcycle automotive Technology; (same 9th ranking) Markerting sector Economy Business Sales and Chemistry Chemical industries -Medical, Pharmaceutical, Cosmetics
Status of human resources in auto industry in general, and Truong Hai in particular has the following characteristics:
Human resources are plentiful, but without the proper care, not planning, not to be exploited, not be upgraded, and training is not good, many people have not been trained The quality of human resources is not high, leading to conflict between quantity and quality The combination, complement, mix of human resources from farmers, workers, intellectuals, are not good, divided, lack of synergies to jointly implement the industrialization, modernization of the country
In short, the situation in human Truong Hai Company is low-skilled, without industrial style, no really good general construction engineers, engineers, scientists, no good experts; consultants, advisers, no presenters, no leaders, good managers
IV HUMAN RESOURCE DEVELOPMENT GOALS IN TRUONG HAI COMPANY (2013-2018)
1 Overall objectives
- The overall objective is to develop human resources in Truong Hai company period (2013-2018) to become the foundation and the most important advantages
to develop and compete This is a period of deep integration in the WTO, especially tariffs are gradually removed Truong Hai will face very stiff competition with countries with a advanced car industry in the world and the region
Trang 10- Develop human resources to be able to meet the business development of the auto manufacturers and companies involved auto industry of the country
- Truong Hai implements long-term workforce policies used by training programs and training assignments appropriately, in order to create the best environment to develop human resources to accompany the development of company
- Focus on development of human resources and internal teams inherited, and recruit additional manpower from outside and foreign experts with the ability to train
- Human resources integrate corporate culture and ensure the integrity of core values that the company has formed during development
2 Specific Objectives
The specific objectives need achieving is:
a) For a management, leadership workforce
- Build a team of professional managers with strategic vision and bravery to meet the changing requirements, strong integration
- Ability to plan, develop goals for the responsible units
- Ability to mentor, promote and motivate for subordinate staff
b) For a workforce of expertise sector
Production sector :
- Professional qualifications, technical qualifications meet current requirements and keep pace with the development of science and technology in the future
- Thinking, creativity to make suggestions to improve application ffectively in production
- Be responsible, conscious of organizing, working style in the modern industrial environment
- Respect and apply innovative processes and regulations of the company
- Honest, upright, not afraid of hard work
- Takes responsibility and ethics towards quality of products made
Sales sector :
- Have a minimum experience related to the job position
- Good communication (presentation, negotiation, writing .), sales skills, teamwork skills
- Dynamic, working independently, have progressive spirit, dedication; know to share, sociable, quick and vivacious
- There is passion and knowledge of the automotive sector
- All working positions in the business sector (directly or indirectly) before taking over the task of apprenticeship in the Business Department
- Frequent transfer human resources of sales consulatnts, services, the sales leader, sales leaders between the branches in the system