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1 VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES Vu Hong Van HUMAN RESOURCE DEVELOPMENT OF MECHANICAL ENTERPRISES IN THAI NGUYEN PROVINCE Major: Business Administration Major code: 34 01 01 SUMMARY OF DOCTORIAL THESIS IN BUSINESS ADMINISTRATION HA NOI - 2019 The thesis was completes at Graduate Academy of Social Sciences Academic Supervisor: Assoc.Prof Dr Dinh Ngoc Lan Assoc.Prof Dr Vo Van Duc Reviewer 1: Assoc.Prof Dr Tran Minh Tuan Reviewer 2: Assoc.Prof Dr Ngo Quang Minh Reviewer 3: Assoc.Prof Dr Nguyen Ngoc Son The thesis is defended against Academy-level Examination Board at Graduate Academy of Social Sciences Time: ………… date………month……….year 2019 3 PREAMBLE The urgency of the topic In the current period of international and regional integration, in order to have sustainable competition, human resources (HR) is an important factor to use and promote the effectiveness of other resources In addition, the 4.0 industrial revolution is now strongly influencing all sectors and areas that lead to a major change in production forces, especially in manufacturing The mechanical industry in our country has a development history over 60 years and always has been identified as a key industry in the national economy Data from the General Statistics Office in 2017, the country has 17,000 mechanical manufacturing enterprises In 2015, Vietnam’s mechanical industry ensured 32.5% of domestic demand and 30% of export However, most mechanical enterprises are in a weak status due to weak internal resources Their difficulties are lacking of capital, production equipment is not synchronized, small production has not met the increasing demand for high-tech products, limited management skills and especially lack of human resources with high quality Thai Nguyen is a province with a tradition in mechanical industry with the formation and development of the Iron and Steel Industrial Park since 1959, which was once the cradle of Vietnam’s mechanical industry In 2017, the province has 230 manufacturing enterprises with over 19,000 employees, focusing mainly on iron and steel production, products from prefabricated metals, machines and equipment The value of products reaches over 29 520 billion VND in 2017, contributing 9% to GDP of Thai Nguyen However, that development is not commensurate with the potential, has not affirmed its position and role in the Vietnam’s mechanical industry with the advantages of raw materials for producing, the input of the provincial mechanical labor force Human resource development for mechanical enterprises in Thai Nguyen province will promote the development and contribution of enterprises to the development of Thai Nguyen province Moreover, Thai Nguyen used to be the cradle of Vietnam's mechanical industry, currently focusing on the largest mechanical enterprises, so the development will bring an important contribution to the mechanical industry of the country Therefore, the selection of the topic "Human resource development of mechanical enterprises in Thai Nguyen province" is an essential and useful research to use and promote the labor force of mechanical enterprises with high efficiency; contribute to the socio-economic development of Thai Nguyen province; furthermore, contributing to the development of Vietnam's mechanical industry in the new context with many challenges The success of thesis will contribute to suggesting feasible solutions for human resource development, contributing to the development of each enterprise, the socio-economic development of Thai Nguyen province and Vietnam’s mechanical industry generally 4 Aims and tasks of the study 2.1 The aims of the study Clarifying the current activities of human resource development of mechanical enterprises in Thai Nguyen province; Since then, propose solutions and recommendations for Thai Nguyen mechanical enterprises to meet the development requirements in the current period 2.2 The tasks of the study - Overview of domestic and foreign researches of human resource development To systematize the basic theoretical basis of human resource development in enterprises - Clarify the nature and content of human resource development in mechanical enterprises, in which focus on improving the quality of human resources - Analyzing the characteristics of human resources in mechanical enterprises, clarifying the important internal factors affecting mechanical enterprises in Thai Nguyen province - Based on experiences of some enterprises, the thesis has drawn valuable lessons that can be applied in Thai Nguyen mechanical enterprises - By practical data, the thesis analyzes and clarifies activities of HRD in Thai Nguyen mechanical enterprises; points out the specifics and causes of these limitations - Through the plans and objectives of the development of mechanical industry and the development of mechanical enterprises in Thai Nguyen province, the thesis proposes solutions to meet the business objectives of mechanical enterprises in Thai Nguyen province to 2025, vision to 2035 Subjects and scope of the study 3.1 Subjects of the study The research subject of the thesis are defined as human resources and HRD activities of mechanical enterprises in Thai Nguyen province 3.2 Scope of the study - The content of HRD: Researching aspects in developing human resources quality of Thai Nguyen mechanical enterprises The content of research includes: current quality of human resources, factors affecting HRD and organizing activities in order to develop HR of Thai Nguyen mechanical enterprises - About Scope: The thesis mainly researches private and state-owned enterprises in Thai Nguyen province - About Time: The thesis focuses on researching the production and business situation in general and HRD activities of Thai Nguyen mechanical enterprises in the period of 2013-2017 Primary data is collected by the author from June 2016 to December 2017 Methodology and research methods of the thesis 4.1 Methodology Theoretical basis of the thesis is the theory of HRD to meet the needs and objectives of mechanical enterprises At the same time, inheriting and selecting research results of published scientific works related to the topic 4.2 Research Methods The thesis uses specific research methods: statistical methods, analytical methods and systematic methods, expert methods, method of comparison, sociological investigation * The method of data collection - Collecting primary data: Using survey methods through questionnaires Choosing a sample to get surveyed opinions from enterprises through interviewing managers, employees and discussing with experts - Collecting secondary data: The thesis collects secondary data including documents, books, statistic data, documents of sample enterprises and published scientific researches * Methods of data analysis and processing About the sample: To collect primary data on HRD activities, the author conducted a survey of 24 mechanical enterprises in Thai Nguyen province The total number of questionnaires is 392 out of 17 938 labors of Thai Nguyen mechanical enterprises The results collected 380 answers, through screening there are 376 valid answers and used for qualitative and quantitative analysis Data processing: Using SPSS 22.0 software to analyze the correlation to assess the impact of factors on HRD activities of Thai Nguyen mechanical enterprises New scientific contributions of the thesis Firstly, the thesis has given and analyzed important factors of the internal environment of enterprises affecting HRD activities, including production technology, learning motivation of employees, self-study ability of employees and learning culture of the enterprise In particular, the production technology is particularly interested in the context of deep international integration and the strong influence of the 4th industrial revolution Secondly, the thesis has analyzed the current situation of mechanical enterprises in Thai Nguyen province, has assessed the advantages and disadvantages as well as the causes of the remaining limitations Since then, managers in Thai Nguyen mechanical enterprises aim at appropriate solutions to HRD of their enterprises to meet the development needs In particular, focus on building a learning culture of the enterprise and strengthening cooperation between enterprises and training institutions Thirdly, the thesis is one of the first researches about HRD in mechanical enterprises Research results can bring meaningful implications for enterprises in Vietnam’s mechanical industry The theoretical and practical meaning of the thesis 6.1 Theoretical meaning The thesis further clarifies the quality of human resources and HRD activities of Thai Nguyen mechanical enterprises The research results have contributed a part of theoretical research in an industry, enriching the experience for the approach and analysis of sciencetific researches of HRD for the objects related 6.2 Practical meaning The mechanical industry is an important industry of the economy In reality, the quality of human resources has not met the development needs of the industry in the period of deep integration into the international economy Therefore, the research topic clarifies the situation of HRD in Thai Nguyen mechanical enterprises; provide analysis, evaluation and give suggestions on meaningful solutions for business owners, managers and employees in Thai Nguyen mechanical enterprises in order to improve the quality of HR in medium and long term; contributing to the development of Thai Nguyen mechanical enterprises in particular and the socio-economic development of Thai Nguyen province in general Structure of the thesis Apart from the introduction, conclusions, references and appendices, the main content of the thesis consists of chapters as follows: Chapter 1: Literature review Chapter 2: Theoretical and practical basis of human resource development in mechanical enterprises Chapter 3: Current situation of human resource development in mechanical enterprises in Thai Nguyen province Chapter 4: Viewpoints, orientations and solutions for human resource development in mechanical enterprises in Thai Nguyen province Chapter LITERATURE REVIEW 1.1 Overseas studies 1.1.1 Overview of studies related to human resource development with socio-economic development Human resource training can be said to have begun researched around 1750 in the UK according to James R David Ph and Adelaide B David (1998) HR training and development have become a function of HRM and affirmed its role over time Many researchers have confirmed that human resources have become an important resource for the socio-economic development of each country: E Wayne Nafziger (1998), Gary S Becker (2010), 1.1.2 Overview of studies related to human resource development at the enterprise scale Research model of Jerry W Gilley et al (2002) showed the effect of HR training in the short and long term for individual employees and employers Inga Erina and colleagues (2015) developed a model to assess the importance of stakeholders in human resource training projects Pal Boring (2017) has shown training as a way to stimulate new creative ideas Alan Price (2011) focused on analyzing the outstanding views on the process of making and implementing the plan of HRD and studied the impact and impact of factors on human resource management Robert L Mathis (2011) argues that there are four types of training: regular training, technical training, problem solving and career development Three types of training goals can be set are attitude, knowledge and skills Training can be assessed at four levels: reaction, learning, behavior, and results Avram Tripon (2013) analyzed the learning needs of employees beyond the framework of classroom learning Graham Beaver and Jim Stewart (2004) showed that the viewpoint of business leaders is a major factor affecting the HRD in enterprises Phana Dullayaphut, Subchat Untachai (2012) studied four influential factors Haslinda & Mahyuddin (2009) realized that the support of managers and colleagues greatly influenced the effectiveness of training Gary Dessler (2015) pays attention to creating motivation in the learning environment for learners in addition to demanding the necessary skills while emphasizing lifelong learning in enterprises Maksims Kazakovs (2014) points out 12 factors affecting HRD, Andreas Gegenfurtner et al (2016) mentioned the effectiveness of training transfer is proportional to the level of decision to participate in training of employees A.K.L Jayawardana et al (2008) argue that training efficiency is measured by the number of learners who successfully apply the knowledge learned to jobs, how long it will take to apply for jobs and how long the organization recognizes overall benefits 1.2 Studies in Vietnam 1.2.1 Overview of studies related to human resource development with socio-economic development Typical research authors are Bui Van Nhon (2012), Pham Thanh Nghi, Vu Hoang Ngan (2006), Vu Van Phuc, Nguyen Duy Hung (2012), Nguyen Huu Than (2012), Nguyen Loc (2010), Pham Thanh Nghi (2009) 1.2.2 Overview of studies related to human resource development at the enterprise scale In the country, the research works on human resources and HRD in the scope of enterprises are diversified in approach and content Typical studies include: Tran Kim Dung (2011) emphasized that training is considered a basic solution to meet strategic objectives, in which the quality of employees has become a competitive advantage of the enterprises Nguyen Ngoc Quan and Nguyen Van Diem (2012) have determined the overall goal of human resource training and development is to maximize the use of existing human resources and improve the efficiency of the enterprise Hoang Xuan Hiep (2013) clearly identified factors affecting the quality of human capital of garment enterprises Nguyen Van Thuy Anh (2014) examined the subjective and objective factors of enterprises affecting training and development of technical workers of enterprises 8 Canh Chi Hoang (2014) has analyzed the factors affecting HRD in industrial enterprises Nguyen Thanh Vu (2015) identified factors affecting HRD of Tien Giang garment enterprises Dinh Thi Hong Duyen (2015) added and built a new variable that motivates employees to measure the effectiveness of training of enterprises in the digital industry Dinh Van Toan (2010) offers groups of solutions and specific implementation measures to systematically assess the capital for the Electricity Group Pham Tat Dong, Dao Hoang Nam (2011) said that in learning society, every person must be regularly educated, continuously trained and lifelong learnt Nguyen Tan Thinh (2008) argues that proper identification of training and development needs in an enterprise needs to know specific bases Ha Van Hoi (2007) said that with the rapid development of science and technology, updating and equipping employees with knowledge to complete their assigned work is an indispensable requirement Nguyen Quoc Khanh (2010) highly appreciated the role of human resource training and development in order to promote the capacity of employees in addition to focusing on rewarding and disciplining employees, also motivating and encouraging employees The current training trends in enterprises with adaptive view will suggest the content and method of HRD for enterprises in the current period Nguyen Tiep (2008) said that the process of training to transform human resources to promote and arouse human potentials, increasing and improving both morality and skills Nguyen Tien Hung (2014) required to provide a capacity framework of staff to apply to human resource management Pham Quy Long (2008) raised the requirement of HRM to achieve two basic objectives: effective use of human resources to increase labor productivity and improve efficiency of the enterprise; meet the needs and create conditions for employees to maximize their capacity, stimulated and motivated at work and be loyal, dedicated to the enterprise 1.3 Summary of research results on human resource development of the published works and the research direction of the thesis - At the macro perspective, the research has achieved the following results: (i) Affirming that education and training is the basic way for HRD and the necessity of investment for education and training for HRD of each country (ii) Affirming the crucial and decisive role of HRD strategy for the national socio-economic development (iii) Human resources training and developing should pay attention to all aspects of knowledge, skills and attitudes The forms of training need to be diversified, appropriate and practical - The results achieved in the research works on HRD at the micro perspective: (i) Explain the importance of developing the HRD strategy of enterprises and the close relationship between strategy of HRD and business strategy of enterprises (ii) Discussing the content of the HRD concept in enterprises under the perspective of human resource management in particular, business administration in general and showing the factors affecting HRD in different fields and sectors (iii) Affirming that HRD at enterprises is the main measure to meet the requirements and goals of business activities (iv) Implementing training and development activities at enterprises need to have appropriate training methods for different subjects to achieve high efficiency and need to be specifically assessed (v) Activities of attracting, using and maintaining human resources must always go along with training activities for employees in enterprises, (vi) The role of all managers and motivational activities of enterprises for employees take important roles for HRD * Issues need to be further studied Up to now, there has not been any work in depth researching on HRD for mechanical enterprises in Thai Nguyen province, with the analysis of influencing factors related to characteristics of mechanical industry and mechanical enterprises in Thai Nguyen In the current context, with the industry 4.0 and extensive international integration, it is necessary to have an in-depth research on human resource development in mecahnical industry * Research direction of the thesis - In terms of theory: The thesis lists theoretical basis of HRD in mechanical enterprises In which, it clarifies: (i) Concept, content and criteria of evaluating HRD in mechanical enterprises; (ii) Factors affecting HRD activities of mechanical enterprises; (iii) The contents of HRD activities in mechanical enterprises - In terms of practice: (i) The thesis analyze and assess HRD activities in Thai Nguyen mechanical enterprises on the basis of the theory below; (ii) The thesis propose the orientation and solutions of mechanical enterprises in Thai Nguyen province to 2025, with vision to 2030 Chapter THEORETICAL AND PRACTICAL BASIS OF HUMAN RESOURCE DEVELOPMENT IN MECHANICAL ENTERPRISES 2.1 Theoretical basis of human resource development 2.1.1 The concept of human resources Inheriting the viewpoints and theories of research on human resources above, in the perspective of business administration, considering within the scope of enterprises, the author said that: human resources of enterprises are all human resources with characteristics of physical, intellectual and mental strength, able to participate in the production and business activities of enterprises at present and in the future 2.1.2 The concept of human resource development Inheriting and combining the above concepts, the author generalizes the concept of HRD as follows: Human resource development are the activities of enterprises to effectively attract and use human resources of enterprises based on the development goals of enterprises and employee's voluntariness 10 2.2 Basic characteristics of human resources in the mechanical industry 2.2.1 Concept and classification of mechanical human resources Labor in mechanical enterprises includes: Mechanical Engineers, Managers, Technical Workers and Service workers 2.2.2 Characteristics of mechanical human resources Labors in mechanical enterprises are technical labors in majority Therefore, it is required to have technical qualifications to meet requirements of works Currently, in mechanical enterprises, most of the human resources not meet the requirements of high-tech production such as lacks of knowledge of new technologies, low professional qualifications, weak industrial style Mechancial enterprises and factories still face with a shortage of labor, especially engineers, technicians and skilled workers Moreover, the labor force in the mechanical industry has not effective cooperation, close association and work in group Mechanical training in institutions/schools not attract students Regarding to labor quality in mechanical enterprises, requirements are as follow: Careful, persistent, diligent, industrious and dedicated to work; be passioned for machines and techniques; Cooperative spirit and teamwork ability 2.3 Content of human resource development in mechanical enterprises 2.3.1 Physical resources development Human resources in mechanical manufacturing industry, especially direct workers who often exhausting works, requiring good health In addition, working in an environment with heavy noise and exposure to machines requires to be careful, highly focused on operational activities 2.3.2 Intellectual resources development In addition to possessing knowledge, there must be a method of scientific thinking and skill training to work reached to a certain level of maturity The intellectual capacity of employees is reflected in the following aspects: educational level, technical and professional qualifications, professional knowledge, vocational skills, work experience, creativity and soft skills 2.3.3 Mind power development Mind power is the capacity of will to express in aspects such as working attitude, working psychology, awareness of discipline, self-awareness in working, sense of responsibility, sharing and cooperation with colleagues, working style, professional ethics as well as the ability to bear pressure and effort in working 2.4 Factors affecting human resource development activities of mechanical enterprises 2.4.1 External factors affecting human resource development activities of mechanical enterprises External factors include: Globalization and international integration; Mechanism and policies of the State on human resource development; Socio-economic development level; Education and training development level 11 2.4.2 Industrial factors affecting human resource development activities of mechanical enterprises The industrial environment includes elements in the industry and external factors for businesses, determining the nature and level of competition in that business There are basic factors including: existing and potential competitors, suppliers, customers and alternative products 2.4.3 Internal factors affecting human resource development activities of mechanical enterprises Based on the characteristics and human resources of of mechanical industry, inheriting previous studies, the author gives four most important internal factors affecting the efficiency of HRD of Thai Nguyen including: Production technology, learning culture of the enterprise, self-study ability of employees and learning motivation of employees 2.5 Human resource development activities 2.5.1 Recruitment and using human resources reasonably 2.5.2 Evaluating human resources objectively and accurately 2.5.3 Strengthening training, development staff, engineers and skilled workers 2.5.4 Completing compensation for employees 2.5.5 Creating a positive working environment 2.6 Some experiences of human resource development of enterprises 2.6.1 Experience of human resource development from Toyota 2.6.2 Experience of human resource development from FPT Corporation 2.6.3 Lessons of human resource development for Thai Nguyen mechanical enterprises Firstly, human resource development of enterprises should be considered an important task in the development plan Developing to improve the quality of human resources is a long and continuous process Secondly, implementing recruitment and using of human resources Thirdly, it is necessary to improve the material and spiritual life to motivate employees and attract quality labor Fourthly, raising the sense of responsibility, professional ethics and occupational culture for labors: Fifth, building a working environment that satisfies the requirements of works, promoting the autonomy of individual employees, strengthening the connection between individuals, promoting team spirit Chapter CURRENT SITUATION OF HUMAN RESOURCE DEVELOPMENT IN MECHANICAL ENTERPRISES IN THAI NGUYEN PROVINCE 3.1 Overview of Thai Nguyen province 12 3.1.1 Characteristics of natural geography and population of Thai Nguyen province 3.1.2 Socio-economic characteristics of Thai Nguyen province 3.2 Basic characteristics of Thai Nguyen mechanical enterprises The mechanical industry holds an important position in Thai Nguyen's industry In 2017, Thai Nguyen province has 230 mechanical enterprises among a total of 2894 enterprises with the main function of producing mechanical products, including industries with code C24 - metal production, C25 - producing products from iron available, C28 production machines and equipments, C29 - producing parts and equipments for motor vehicles Number of mechanical enterprises accounts for 39.9% of manufacturing enterprises and 7.9% of total enterprises in the province The average number of labors in Thai Nguyen mechanical enterprises is 85 people The majority of Thai Nguyen mechanical enterprises have a business capital of to 50 billion VND Enterprises with large amount of capital such as Thai Nguyen Iron and Steel Corporation, Song Cong Diesel Limited Company, FUTU 1, Natsteelvina, Thai Trung JSC 3.2.1 Characteristics of products Main products of Thai Nguyen mechanical enterprises include: iron and steel, molds, metal assembling components, mechanical tools, machinery parts, bearings, gears, gearbox and machinery tools Products are usually mass-produced or manufactured in small batches according to orders Most of these products require specific designs according to the specific requirements of customers 3.2.2 Characteristics of Technology Investment for technology in the provincial mechanical enterprises is still weak The majority of technologies that enterprises and factories use are old and multi-purpose devices In enterprises and workshops, up to 80% of equipment is separated and asynchronous, most of them are fully depreciated Some enterprises with relatively modern technology are: Pho Yen Joint Stock Company, FUTU.1 JSC, Diesel Song Song Co Limited 3.2.3 Characteristics of labor Up to December 31, 2017, Thai Nguyen mechanical enterprises have a total of 19,573 employees Labor size of Thai Nguyen mechanical enterprises is mainly small, from 10 to 50 labors is major (68%) Direct labors are the production workers that account for 6575%, engineers account for 15-25% of labors Labors in manufacturing enterprises are mainly trained in mechanics, metallurgy, casting, steel rolling, heat treatment, casting, turning, milling, cooling, grinding, rolling, forging, welding, plating In terms of qualifications, laborers with intermediate or higher degrees accounted for 39.9%, technical technology accounted for 58.2%, mainly trained from vocational education institutions in Thai Nguyen province 3.2.4 Results of business activities The total revenue of Thai Nguyen mechanical enterprises increases steadily every year with the rate of 12 - 20% In 2017, industrial production value of mechanical enterprises reached 29 520 trillion VND, export value was 22 743 trillion VND 13 3.3 Current situation of human resource development activities of mechanical enterprises in Thai Nguyen province 3.3.1 Recruitment and staffing Local labor force is evaluated quite plentiful but the training quality of schools has not met the requirements of enterprises The number of labors relatively meets business activities of enterprises but the quality of labor only meets at the average level (3,6/5 point) The recruitment system reaches to the average level, in which criteria for staff selection have not yet specified, the recruitment process is not clear and objective (2,55 point) 3.3.2 Evaluation of work performance The evaluation of employee performance is quite well-done and also diversified (3,5/5 point) Large-scale enterprises perform assessment methodically and stably 3.3.3 Human resource training The investment and implement of human resources training activities of Thai Nguyen mechanical enterprises is very different, depending on the scale of enterprises, types of businesses, viewpoints of leaders and the development of enterprises In general, largescale enterprises are interested in and organize training activities with better plans and processes Small-scale enterprises are less interested in formal training or perform training activities without plans to meet immediate requirements of work In 2017, there were 5048 employees sent for training, 80.36% were direct laborers, 70.66% were trained at enterprises Average training costs 700 thousand VND/labor/year The training contents are mainly specialized, skills, fire protection, labor safety, policy, quality management and technology 3.3.4 Labor compensation Thai Nguyen mechanical enterprises perform labor compensation activities through a system of salaries, wages, bonuses and benefits However, each enterprise has different salary regulation Enterprises also apply the following bonus forms: Rewards at the end of the year, technical innovation and bonuses for good labors Although policies of labor compensation are not diversified and motivated enough for employees, they also create appropriate income with employees' contributions with the average income in 2017 is 8.3 million VND per month 3.3.5 Working environment Relation between superiors and subordinates, among colleagues is well appreciated The activities of job analysis, performance appraisal and promotion policies of enterprises are not high with an average mark below 3.5/5.0 Highly rated activities include working conditions, work arrangement and compensation in enterprises with an average mark of 4.0/5.0 3.4 Internal factors affect human resource development activities in Thai Nguyen mechanical enterprises The results of quantitive analysis for the model are accepted with factors affecting HRD in mechanical enterprises (E), including: T - Production technology, M - 14 Learning motivation of employees, C - Learning culture of the enterprise, A - Selflearning ability of employees E = 1.172 + 0.129 T + 0.184 M + 0.290 C + 0.138 A 3.5 Overall assessment of human resource development activities in Thai Nguyen mechanical enterprises 3.5.1 These achievements Human resource development activities have been paid attention and implemented by Thai Nguyen mechanical enterprises, bring certain efficiency in business activities and benefits for employees 3.5.2 Limitations and the causes of these limitations - Recruitment and staffing: Quality of input labor is not really guaranteed because the recruitment sources are limited; standards are not clear as well as the recruitment council is not really professional - Performance evaluation: Most of Thai Nguyen mechanical enterprises not perform it properly and scientifically - Human resource training has not performed steps of training process effectively - Labor compensation is not really fair and motivated to employees for their contribution to the enterprise - The working environment has not really been improved with building learning culture of enterprises The cause of the limitations: * Objective reasons: (i) With the fluctuation of the economy, during the difficult period, most of Thai Nguyen mechanical enterprises must focus on finding markets and partners (ii) Due to the characteristics of human resources in Vietnam, there are limitations in physical strength, working skills and industrial style are weak and passive, slow adaptation to changes in business environment (iii) The education and training system in general and professional training in particular are still limited, leading to training quality not to be met the requirements of enterprises (iv) Mechanisms and policies of labors and jobs are slow change * Subjective causes: (i) Many Thai Nguyen mechanical enterprises have not appropriately invest in technology (ii) The majority of enterprises are small and medium enterprises, so they are not interested in human resource development in the medium and long term (iii) Staffs in charge of human resources are not properly trained in human resources, so advising, consulting and organizing HRD activities are not effective (iv) The perception of employees about HRD is not right (v) Enterprises’ policies of attracting talented managers and engineers are not highly attractive (vi) Implementating compensation policy for employees has improved, but at a slow and low pace, has not motivated employees 15 Chapter VIEWPOINTS, ORIENTATIONS AND SOLUTIONS OF HUMAN RESOURCE DEVELOPMENT IN MECHANICAL ENTERPRISES IN THAI NGUYEN PROVINCE 4.1 International and domestic context affecting human resource development activities of mechanical enterprises The international economic integration and the impacts of the industrial revolution 4.0 bring challenges to the Vietnamese mechanical industry with more opportunities and competition from FDI enterprises 4.2 Viewpoints, orientations and objectives of human resource development of mechanical enterprises in Thai Nguyen province up to 2025, vision to 2035 The viewpoint of human resource development of Thai Nguyen mechanical enterprises is as follows: Human resource development based on socio-economic development strategy for the period of 2011-2020 and the next period; human resource development in Thai Nguyen province must be based on human resources needs of the industry and the province; comprehensive human resource development includes physical, intellectual, skills, social ethics and foreign languages according to the requirements of comprehensive human development and sustainable national development; Human resource development is the cause and responsibility of the whole society; Strengthening and expanding international cooperation in human resource development; Policies maintain mechanical labors associated with jobs The orientation of human resource development in Thai Nguyen mechanical enterprises is to have a workforce with good health, comprehensive development of intellect, will, creative thinking ability and good morality; capable of self-learning, selftraining, brave, confident, dynamic, initiative and creative; Having high professional knowledge and skills, being able to adapt and respond quickly to constantly changing living condition and working environment; Adapting to modern development level and international integration The goals of human resource development in Thai Nguyen mechanical enterprises are as follows: Firstly, Thai Nguyen mechanical enterprises contribute to the growth rate of industrial production value in the province reached an average of 22% per year Striving to the year of 2025 the production value of the mechanical industry will account for 8% of the province's industrial production value Secondly, striving in the period of 2018 - 2025 to raise the rate of trained workers with vocational and intermediate degrees in Thai Nguyen mechanical enterprises to 80% Thirdly, strengthening the training quality of universities, colleges and vocational schools, attracting high-quality human resources to meet the requirements of developing mechanical enterprises in Thai Nguyen province 16 4.3 Solutions for human resource development of mechanical enterprises in Thai Nguyen province up to 2025, vision to 2035 4.3.1 Controlling factors affecting human resource development activities in Thai Nguyen mechanical enterprises Enhancing the positive effect from the influence of above factors on human resource development of Thai Nguyen mechanical enterprises 4.3.2 Completing human resource training activities in Thai Nguyen mechanical enterprises Good implementing steps of human resource training process will increase the effectiveness of human resource training, changing the quality of human resources in Thai Nguyen mechanical enterprises 4.3.3 Improving the efficiency of other activities for human resource development in the Thai Nguyen mechanical enterprises Enhancing the positive efficiency of Thai Nguyen mechanical enterprises in order to effectively use and sustainably develop human resources of enterprises 4.3.4 Active cooperating with training institutions in the province to attract and recruit human resources suitable to the needs of enterprises Training mechanical human resources at levels with high quality, quickly adapting to practical work, meeting the recruitment needs of Thai Nguyen mechanical enterprises 4.4 Some recommendations 4.4.1 Some recommendations for Thai Nguyen Province Firstly, strengthening to forecasting labor demand Secondly, forming and developing the labor market Thirdly, developing the system of professional training and vocational training 4.4.2 Some recommendations for training institutions Firstly, creating and maintaining the relation between training institutions and enterprises in recruitment Secondly, expanding forms of training by address, local training for locals CONCLUSION The mechanical industry is an important industry in the economy The mechanical industry in general and mechanical enterprises in particular are currently limited to hinder development such as outdated technology, weak development of market and limited investment capital besides human resources with low qualifications and weak cooperation, industrial style, poor management skills Human resource development in any period is an important solution to improve the competitiveness of each enterprise Human resource development is considered a regular and long-term activity to improve the working capacity of employees, achieving efficiency in work while contributing to fulfilling the current and future objectives of the enterprise 17 In order to assess the current situation of human resources development of Thai Nguyen mechanical enterprises, the author has used qualitative research methods as descriptive statistics, comparing secondary data sources and expert methods Case study in 24 mechanical enterprises in Thai Nguyen province shows that human resources of Thai Nguyen mechanical enterprises are interested in training and development but are not effective and still have certain limitations that not meet the requirements of business activities of enterprises in the new period Besides, the author uses quantitative methods to handle primary data sources through doing survey Inheriting previous studies and researching, the thesis identified four internal factors affecting human resource development in Thai Nguyen mechanical enterprises, including: Production technology, learning motivation of employees, culture training of the enterprises and self-learning ability of employees The research results confirm the theoretical model in accordance with the survey data Based on the orientation and development objectives of mechanical industry, the development orientation of Thai Nguyen mechanical enterprises set in the current context; The thesis has built up human resource development perspective for Thai Nguyen mechanical enterprises up to 2025, vision to 2035; Since then, proposing four groups of solutions for Thai Nguyen mechanical enterprises, including: Controlling factors affecting human resource development activities in Thai Nguyen mechanical enterprises; Completing human resource training activities in Thai Nguyen mechanical enterprises; Improving the efficiency of other activities for human resource development in the Thai Nguyen mechanical enterprises; Active cooperating with training institutions in the province to attract and recruit human resources suitable to the needs of enterprises Proposals for relevant agencies in Thai Nguyen province to enhance the effectiveness of intermediaries in connecting the human resources of society with mechanical enterprises; Proposals for training institutions of mechanical labors to improve the training quality to meet the demand of mechanical enterprises in Thai Nguyen province However, the thesis still has limitations, in particular: The sample size is 376 according to the author is not large enough Accordingly, the impact analysis of individual factors such as age, gender, qualification and seniority has not been studied Therefore other future researches with larger sample sizes may increase the overall results and analyze other aspects of the model Secondly, the thesis selects and analyzes four factors in the internal environment of the enterprise, belonging to personal factors and factors of enterprises affecting human resource development because the author expects feasible solutions for active enterprises’ practicing In fact, human resource development in enterprises is also affected by many other factors including external factors such as socio-economic environment, labor market, the state’s support and some other elements of the enterprise such as development orientation and business plan, 18 human resource management system, financial potentials; other factors of individuals such as: position, actual financial ability, time, support of family, Therefore, the following researches can further exploit this problems 19 LIST OF THE AUTHOR’S PUBLICATIONS IN ASSOCIATION WITH THE THESIS Vu Hong Van 2015 “Improving quality of Vietnam’s labor force during the period of international integration”, Journal of Science and Technology – Thai Nguyen University, No 139 (09), 8/2015, pg.83-89 ISSN 1859-2171 Vu Hong Van 2016 “The Asean Economic Community and competitiveness of Vietnam’s labor force”, Journal of Science and Technology – Thai Nguyen University, No.154(09), 7/2016, pg.101-107 ISSN1859-2171 Vu Hong Van, Luong Thi Mai Uyen 2017 “Solutions for enhancing competitive capability of mechanical industry during the period of integration”, Indian and Asian Studies, No.56, 7/2017, pg.1-11, ISSN 0866-7314 Vu Hong Van 2018 “Human resources Development in Thai Nguyen mechanical enterprises – From the view of business owners”, Economy and Forecast Review, No.9, 3/2018, pg.31-34 ISSN 0866-7120 Vu Hong Van 2018 “Solutions for human resource development of Mechanical enterprises in Vietnam”, 9th NEU-KKU International Conference on Socio-Economic and Environmental Issues in Development, Hanoi National Economics University, 5/2018, pg.886-896, ISBN 9786046535294 Vu Hong Van 2018 “Requirements of Human Resource in Vietnamese Mechanical Industry in the context of Industry 4.0”, International Conference: Business Subtainability in the context of Industry 4.0, Hanoi National Economics University, 9/2018, pg.282293, ISBN 9786046533611 Vu Hong Van, Dinh Ngoc Lan 2018 “Factors affecting Human Resorce Development in Mechanical Enterprices in Vietnam”, Internatinal Journal of Management Excellence, Vol 12.No1, pg.1774-1782 ISSN 2292-1648  ... authors are Bui Van Nhon (2012), Pham Thanh Nghi, Vu Hoang Ngan (2006), Vu Van Phuc, Nguyen Duy Hung (2012), Nguyen Huu Than (2012), Nguyen Loc (2010), Pham Thanh Nghi (2009) 1.2.2 Overview of studies... enterprises Nguyen Van Thuy Anh (2014) examined the subjective and objective factors of enterprises affecting training and development of technical workers of enterprises 8 Canh Chi Hoang (2014) has... development (iii) Human resources training and developing should pay attention to all aspects of knowledge, skills and attitudes The forms of training need to be diversified, appropriate and