(Luận văn thạc sĩ) improving the competitiveness of construction steel products of vietnam steel corporation in the period 2018 2022

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN TUẤN DŨNG IMPROVING THE COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION IN THE PERIOD 2018-2022 NÂNG CAO NĂNG LỰC CẠNH TRANH ĐỐI VỚI CÁC SẢN PHẨM THÉP XÂY DỰNG CỦA TỔNG CÔNG TY THÉP VIỆT NAM TRONG GIAI ĐOẠN 2018-2022 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN TUẤN DŨNG IMPROVING THE COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION IN THE PERIOD 2018-2022 NÂNG CAO NĂNG LỰC CẠNH TRANH ĐỐI VỚI CÁC SẢN PHẨM THÉP XÂY DỰNG CỦA TỔNG CÔNG TY THÉP VIỆT NAM TRONG GIAI ĐOẠN 2018-2022 Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… Author Trần Tuấn Dũng ACKNOWLEDGEMENT The topic " Improving the competitiveness of construction steel products of Vietnam steel corporation in the period 2018-2022" is the content chosen by the author to study and make a graduation thesis after two years learning a master's program in business administration organized by Hanoi School of Business and Management (HSB) - Hanoi National University First of all, I would like to express my sincere thanks to the faculty leaders, teachers who have devotedly taught in the course of studying In particular, I sincerely thank Associate Prof Dr Hoang Dinh Phi helped me to gain valuable knowledge about the subject of Planning and Strategic Management and Technology and Innovation Management I sincerely thank Dr Pham Van Hong was very devoted to caring, guiding and instructing me in the process of implementing the graduation thesis I also sincerely thank the staff of Vietnam Steel Corporation (VNSTEEL) for their help in providing information and giving favorable conditions for me to complete my research Finally, I would like to thank my family and friends of the 13th MBA class who have always been with me, encouraging me to complete this course and thesis Along with the help from many sides, author has also made great efforts to complete the thesis in the best way but due to certain limitations of knowledge, time, and information, the thesis certainly does not avoid limitations I look forward to receiving sympathy, contribution and supplementation from teachers and readers to make the topic more complete Sincerely thanks ! Date………………………… CONTENTS ABBREVIATION i LIST OF TABLES, FIGURES ii TITLE CHAPTER 1 RATIONALE LITERATURE REVIEW AIMS OF RESEARCH OBJECTS OF RESEARCH SCOPE OF THE STUDY RESEARCH METHODOLOGY THESIS STRUCTURE CHAPTER I: BASIS THEORY ON COMPETITION AND PRODUCT COMPETITIVENESS 1.1 BASIS THEORY ON COMPETITION AND COMPETITIVENESS 1.1.1 Concept of competition 1.1.2 Concept of competitiveness 1.2 CRITERIA FOR EVALUATING COMPETITIVE RESULT OF PRODUCT 10 1.2.1 Market 10 1.2.2 Market share 11 1.2.3 Profit 11 1.3 BASIC FACTORS OF PRODUCT COMPETITIVENESS 13 1.3 Technology 13 1.3.2 Product price 13 1.3.3 Distribution system 14 1.3.4 Promotion 15 1.3.5 Financial capacity 16 1.3.6 Human resources 17 1.3.7 Management system 18 1.4 EXTERNAL FACTORS AFFECT PRODUCT COMPETITIVENESS 19 1.4.1 Factors of macre environment 20 1.4.2 Factors of industry environment 21 CHAPTER 2: CURRENT SITUATION OF COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION 23 2.1 OVERVIEW OF VIETNAM STEEL CORPORATION 23 2.1.1 General introduction 23 2.1.2 Business results of VNSTEEL 2015-2017 29 2.2 THE CURRENT COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION 32 2.2.1 Situation of criteria to evaluate the competitive results of construction steel products of Vietnam Steel Corporation 32 2.2.1.1 Market 32 2.2.1.2 Market share 33 2.2.1.3 Profit 37 2.2.2 Current situation of basic factors affecting the competitiveness of VNSTEEL’s construction steel products 39 2.2.2.1 Technology 39 2.2.2.2 Product price 43 2.2.2.3 Distribution system 47 2.2.2.4 Promotion 48 2.2.2.5 Financial capacity 52 2.2.2.6 Human resources 54 2.2.2.7 Management system 56 2.3 ASSESSING THE COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION 57 2.3.1 Strengths 57 2.3.2 Weaknesses and causes 59 2.4 EXTERNAL FACTORS AFFECT PRODUCT COMPETITIVENESS 62 2.4.1 Factors of macro environment 62 2.4.2 Factors of the industry environment 65 CHAPTER 3: SOME SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION 68 3.1 ORIENTATION TO DEVELOP VNSTEEL'S STEEL PRODUCTS IN THE COMING TIME 68 3.2 SOME SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION 69 CONCLUSIONS 72 REFERENCES 74 ABBREVIATION Abbreviated letters / Symbols Complete phrase WSA World Steel Association VSA Vietnam Steel Association FDI Foreign Direct Investment GDP Gross Domestic Product WTO World Trade Organization AEC ASEAN Economic Community ASEAN Association of Southeast Asian Nations EU European Union TNHH Limited Liability TNHH MTV One member limited liability Company VNSTEEL Vietnam Steel Corporation LD VNSTEEL Joint-venture Companies with Vietnam Steel Corporation TISCO Thai Nguyen Iron and Steel making Joint Stock Company SSCV Southern Steel Co., Ltd - Vnsteel VTM Viet-Trung Minerals and Metallurgy Company Limited VICASA Vicasa Steel Joint Stock Company - Vnsteel Hòa Phát Hoa Phat Group Joint Stock Company POMINA Pomina Steel Joint Stock Company Vina Kyoei Vina Kyoei Steel Company Limited HRC Hot rolled coil CRC cold rolled coil SBQ Special Steel BF Blast furnace (iron making) EAF Electric arc furnace (steel making) i LIST OF TABLES, FIGURES TABLES: Table 2.1 Production and Consumption of Construction steel 2015-2017 29 Table 2.2 Consolidated business results of the Corporation 2015-2017 30 Table 2.3 Business results of the Parent Corporation 2015-2017 31 Table 2.4 Consumption of construction steel by market in 2017 32 Table 2.4 Situation of consumption and market share 33 Table 2.5 Situation of consumption and market share in the Northern market 34 Table 2.6 Situation of consumption and market share in Central market 35 Table 2.7 Situation of consumption and market share in the Southern market 36 Table 2.8 Situation of export and market share 37 Table 2.9 Business results of the Corporation 2015-2017 38 Table 2.10 Classify production capacity by technology 40 Table 2.11 Comparison of technical indicators of blast furnace technology 41 Table 2.12 Compare technical indicators of electric furnace technology 41 Table 2.13 Comparing labor productivity in iron production 42 Table 2.14 Comparing labor productivity in billet production 42 Table 2.15 Comparing labor productivity in the production of coke 42 Table 2.16 Comparing labor productivity in rolling 43 Table 2.17 Situation of selling prices of southern producers 45 Table 2.18 Customer reviews of customer care services 49 Table 2.19 Customer survey results on sales staff 50 Table 2.20 Some financial indicators 2015 - 2017 52 Table 2.21 Compare financial capacity of VNSTEEL with other enterprises 53 Table 2.22 Labor quality statistics of VNSTEEL 2017 54 Table 2.23 Import situation of billet and steel products 2015-2017 65 Table 2.24 Export situation of steel products 2015-2017 65 Table 2.25 Apparent construction steel consumption in Vietnam 2015-2017 66 ii FIGURE: Figure 1.1 Product distribution system model 15 Figure 1.2 Factors affect product competitiveness 19 Figure 2.1 VNSTEEL operating areas 26 Figure 2.2 Organizational structure of VNSTEEL 27 Figure 2.3 Production and Consumption of VNSTEEL 29 Figure 2.4 Situation of consumption and market share 33 Figure 2.5 Situation of consumption and market share in the Northern market 34 Figure 2.6 Situation of consumption and market share in Central market 35 Figure 2.7 Situation of consumption and market share in the Southern market 36 Figure 2.8 Situation of export and market share 37 Figure 2.9 Technology process of construction steel production 40 Figure 2.10 Situation of selling prices of northern producers 45 Figure 2.11 Situation of selling prices of southern producers 46 Figure 2.12 Distribution model of other steel producers 47 Figure 2.13 Distribution model of VNSTEEL 48 iii recent years but still faces many difficulties and challenges (by the end of 2017, the parent company still has accumulated losses of VND 77 billion) The capital structure shows that equity on liabilities ranges from 0.9 to 1.26 times, which means that debt structure is in a safe state However, the long-term capital source is currently in short supply (due to the accumulated loss, due to the balance between investment activities and the recovery of investment capital is not appropriate) and must be balanced by short-term capital With the above situation, the capital mobilization for investment is difficult Almost capital for investment projects are balanced from borrowers Even use shortterm loans for long-term investment This is a huge risk of the Corporation in investment activities and a weakness compared to competitors The priority in financial solutions is to overcome the long-term financial imbalance of the Parent Company, quickly erase accumulated losses Therefore, in the short term, the Corporation has not been able to balance long-term capital sources for investment requirements However, the equity mobilization for short-term investment activities can be done through cash flow from asset and portfolio restructuring activities, along with overcoming the long-term financial imbalance of the parent company About human resources The number of workers in steel companies of VNSTEEL is still high, the average age is high, the labor productivity is low compared to the other enterprises in the industry The quality of research and market forecasts is weak, inaccurate, and has not been studied and forecasted of changes in the market of input materials, exchange rates The cause comes from the quality of the staff The professional department is still weak, not trained regularly to improve professional skills About the management system The parent company VNSTEEL is a large-scale public company, operating under the Enterprise Law, securities law and current legal regulations Although it is a joint stock company, the ratio of state capital currently accounts for 93.93% of the charter capital, so it must still be under the strict management of related state authorities like before equitization That causes delays in making business 61 management decisions and less flexibility with changes in the business environment, reducing business efficiency in general and the efficiency of State investment in particular The organizational structure and corporate governance mechanism in the parent company has not changed much to adapt to the modern business environment, management processes are sometimes not flexible and lack of creativity, leading to efficiency and effectiveness of the management system not as desire VNSTEEL portfolio also spreads, many units; Many investments are small, overlapping and low-effective Some companies have large investment capital but have not promoted their advantages; Some subsidiaries in trading sector have limited resources, small scale, low operational efficiency 2.4 EXTERNAL FACTORS AFFECT PRODUCT COMPETITIVENESS 2.4.1 Factors of macro environment a) Adjustment of the State's economic development policy: In previous years, with the growth model based on the policy of heavy industry development, the steel industry is considered a key industry that is prioritized for development and has been expected to grow rapidly However, in the current trend of international integration and the policy of transforming Vietnam's growth model, the steel industry is no longer considered a key industry to be prioritized in the national modernization and industrialization strategy by 2020 (According to Vietnam's industrialization strategy towards 2020 and vision 2030 approved by the Prime Minister in Decision 1043 / QD-TTg dated July 1, 2013, key industries Priority for development includes: electronics, agricultural machines, agro-fishery processing, shipbuilding, environment & energy saving, automobile manufacturing & auto parts) The government's investment attraction policy is open to many economic sectors (FDI and private sector) participating in the steel industry The current development of Vietnam's steel industry and the trend in the coming years shows that the foreign investment sector will gradually play a major role in Vietnam's steel industry 62 In recent years, the Government is promoting the implementation of the overall master plan of economic restructuring in association with the transformation of growth model (approved by the Prime Minister under Decision No 339 / QD-TTg dated February 19 / 2013), which focuses on three main areas: public investment restructuring; restructuring state-owned enterprises and restructuring the financial and banking systems The growth model is oriented to transform from growth in width to growth in depth, whereby growth will be basicaly based on resource efficiency and labor productivity Decision No 37/2014 / QD-TTg dated June 18, 2014 of the Prime Minister issued criteria and lists for classification of State-owned enterprises, whereby the steel industry is not in the industry that the State holds majority (over 50%) Implementing the policy of restructuring state-owned enterprises, the stateowned steel company, Vietnam Steel Corporation, was equitized from 2011 and the Government will gradually reduce the state capital ratio to 57.92% and below 36% by 2020 according to the Prime Minister's Decision No 1232/2017 / QD-TTg of August 17, 2017, approving the list of enterprises with state capital to divest from 2017-2020 The steel industry development master plan is authorized by the Government to the Ministry of Industry and Trade to consider and decide on each stage Planning for development of steel production and distribution system by 2020, with 2025 considered, is approved in accordance with Decision No 694 / QD-BCT dated January 31, 2013 (replacing the master plan No 145) has changed, affecting the legal basis for some development projects of the Corporation, requiring the Corporation to make adjustments suitable with strategic orientation of the Corporation Institutional reform policies have been attempted by the Government The basic legal system (Enterprise Law, Investment Law ) is adjusted to create more favorable conditions for enterprises to be proactive in business activities However, besides, some regulations to control the operation of enterprises are more tightened as regulations on scrap standards, conditions and environmental tax rates; on granting mineral exploitation rights, natural resource tax and environmental tax in mineral exploitation; about technology equipment, energy saving, etc., are factors that greatly affect the operation of enterprises in the steel industry 63 The legal regulations on the operation of the stock market have been strengthened, requiring joint stock companies, especially public joint stock companies such as VNSTEEL to continue to innovate in the model and governance methods, transparency of operation processes and information disclosure, meeting international standards and regulations in integration b) Impact of international integration The Party and State of Vietnam advocated proactive and active international integration and Vietnam's international integration process took place very positively, rapidly and increasingly Vietnam has joined WTO since 2007 and participated in signing many regional free trade agreements (FTAs) as ASEAN members ("ASEAN + 1", "ASEAN + 3") as well as signing many Bilateral and multilateral FTAs Since late 2015, ASEAN countries have also formed the AEC economic community and are actively negotiating the RCEP agreement as the regional comprehensive economic cooperation agreement (ASEAN + 6) In recent years, Vietnam's steel industry has developed quite rapidly and is currently ranked 19th among the top 50 crude steel producers in the world, and also become the largest steel producer in AEC In recent years, AEC is Vietnam's main export market For this region, Vietnam's steel industry is fully competitive Besides challenges, Vietnam's steel industry also has the opportunity to attract investment and expand export markets Particularly, the trend of investing in production in Vietnam to enjoy export incentives to the market of major economies (replacing the export from China) However, in parallel with that, Vietnamese enterprises also face an increase in trade disputes, trade defense measures and technical barriers set up by those countries This is a big challenge for Vietnamese enterprises due to the lack of understanding of international trade and limited legal and foreign language skills With all the macro effects mentioned above, it can be clearly seen that the state will gradually reduce the intervention in the steel industry, the steel industry will have to actively develop and operate under the market regulation At the same time, the operating environment is also increasingly difficult, containing many risks and harsh competition 64 2.4.2 Factors of the industry environment a) Domestic steel market situation: - Importing billet and construction steel: Table 2.23 Import situation of billet and steel products 2015-2017 Unit: Ton No Items 2015 2016 2017 Billet 1.841.520 904.696 14.746 Contruction steel product 2.384.932 2.729.518 1.771.552 - Section 593.857 820.773 606.635 - Bar 251.646 264.322 267.825 1.539.429 1.644.423 897.092 4.226.452 3.634.214 1.786.298 - Wire rod Total Source: VSA - Exporting billet and construction steel: Table 2.24 Export situation of steel products 2015-2017 Unit: Ton No Items - Section - Bar - Wire rod 2015 Total 2016 2017 10.000 161.502 229.154 322.731 434.517 588.074 6.549 34.556 206.877 339.280 630.575 1.024.105 Source: VSA From 2010 to 2013, Vietnam's economy fell into recession and there was no sign of recovery Macroeconomic instability is slowly overcome Economic institutions have not motivated growth The GDP growth rate of the country has continuously decreased from 6.78% in 2010 to 5.03% in 2012 The economic sectors using steel are all declining (construction, real estate, machine manufacturing) equipment and shipbuilding ), leading to a slowdown in steel demand From 2013 until now, with drastic policies of the Government, macro economy has gradually stabilized, inflation has been controlled GDP has a good growth 65 (reached 5.4% in 2013, 5.98% in 2014 and 6.7% in 2015) As a result, steel consumption also increased, especially in 2014-2015 Table 2.25 Apparent construction steel consumption in Vietnam 2015-2017 Unit: Ton No Items Section 2015 2016 2017 679.105 902.050 868.765 Bar 5.274.132 6.363.178 6.441.925 Wire rod 2.574.539 2.972.197 2.563.988 8.527.776 10.237.425 9.874.678 Total Source: VSA b) New investment capacity increases, fierce competition: In recent years, the domestic steel industry is continuing to be supplemented with supply by large and ongoing projects in Vietnam by foreign investors and private sector This makes the situation of oversupply in construction steel product sector - In the long steel products, there are the following projects: + Fuco: capacity of million tons of billets / year; operating from 2012 + Pomina: Pomina No factory went into operation in March 2012, increasing the total capacity of Pomina to 1.5 million tons / year + Posco SS: capacity of million tons of sections and bars; put into operation in 2015 + VinaKyoei: 500,000 tons of billet / year and 500,000 tons of rolled steel / year; completed and put into commercial operation from July 2015 + Hoa Phat: Phase project completed in 2013, increasing the total capacity of billet and steel rolling to 1.0 million tons / year The third phase project of 750,000 tons / year of billet and 600,000 tons / year of rolled steel has been put into stable operation in Q1 / 2016 + Formosa: capacity of 1.2 million tons / year of square billet and ~ 1.0 million tons / year of long steel products Expected to operate from 6/2017 As of the end of 2017, the total capacity of long steel production in Vietnam according to the design capacity is as follows: - Blast furnace technology : 4.42 million tons / year 66 - Electric furnace technology : 10.12 million tons / year - Steel making (billet) : 14,415,000 tons / year - Steel rolling (long product) : 13,080,000 tons / year However, due to competitive market factors and financial difficulties, many domestic steel enterprises have to reduce production or suspend production Therefore, the rate of mobilizing capacity in 2017 of Vietnam steel industry is still low: 66% steel billet, 70% steel rolling With the current surplus capacity, plus the capacity will increase when some projects continue to operate in the near future, the competition between domestic steel producers is increasingly fierce 67 CHAPTER 3: SOME SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION 3.1 ORIENTATION TO DEVELOP VNSTEEL'S STEEL PRODUCTS IN THE COMING TIME With the vision of strengthening and maintaining one of the leading steel producers in Vietnam, providing high quality steel products with effective competitiveness, sustainable development, pioneering in innovation and achieving to international standards VNSTEEL develops an corporate strategy: Establish a core business and production system, along with the value chain, integrated from raw materials to sale network and distribution system This is also the corporate strategy identified in the 2010 Strategy In the Strategy to 2020 and the vision of 2025, VNSTEEL reaffirmed the corporate strategy mentioned above and made it more clear that VNSTEEL selected a vertical integration strategy in combination with strengthening strategic alliances With the characteristics of VNSTEEL owning and operating many steel production facilities with different technological processes and at different stages, so the vertical integration strategy (vertical integration) allows to create competitive advantages in cost and maximize value added Vertical integration promotes investment in specialized assets to improve efficiency and protect product quality and facilitate planning Besides, international integration with rules of origin committed in FTA is also a factor promoting restructuring in the direction of upstream integration However, considering the limited resources of VNSTEEL, plus unpredictable changes of the market and business environment, especially in the trend of trade liberalization and international integration, integration strategy Vertical also has disadvantages and risks Therefore, to limit the risks of vertical integration, it is necessary to combine with strengthening strategic alliances This means through joint ventures to invest and fully operate the value chain stages (risk sharing) or through long-term contracts with suppliers (minimizing risks of price fluctuations) 68 The goal of improving the competitiveness of VNSTEEL until 2025 is to maintain its position and expand the market share of construction steel products of the Corporation and its member companies In addition, continue solutions to improve business efficiency, increase revenue, reduce costs, thereby increase profits, increase income for officials and employees of the Company and take care of labor's lives 3.2 SOME SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF CONSTRUCTION STEEL PRODUCTS OF VIETNAM STEEL CORPORATION a) Technology solutions: The objective is to apply appropriate technology to improve operational efficiency and competitiveness At the same time, invest adequate resources to apply energy saving technology, reduce production costs and environmentally friendly, specifically: - Iron making (BF technology): Improving the operation efficiency of invested blast furnaces; consider replacing TISCO's ultra-small blast furnace with appropriate technology Quickly put the project to expand Thai Nguyen Iron and Steel Company Phase into operation to increase scale and operational efficiency - Steel making (EAF technology and BOF): Apply advanced techniques to improve operating efficiency of plants using basic oxygen furnace (BOF) and electric arc furnace (EAF) - Steel rolling: Complete the hot-charged technology of all factories with steel making and steel rolling mills - Research on new technologies (non-coke or new technology without using blast furnaces) to apply investment in intergrated steel plants with a capacity of million tons / year b) Solutions to reduce the price: - Strengthen the input management and production management to achieve the goal of reducing costs and economic and technical criteria - Through technical investments, upgrade investments to improve operational efficiency with existing small-scale factories to increase the competitiveness of production cost and maximize economic performance c) Solution for distribution system: 69 - VNSTEEL needs to build a strong and potential distributors system, having the long-term benefits with VNSTEEL’s products and services - Researching and forming regional warehouses in major markets to increase market coverage and ability to meet customer demand, thereby combining product consumption of many member companies in the system In the long term, it is possible to research and convert into large regional processing and distribution centers, focusing on a wide range of VNSTEEL products and services - Research to form a strategic alliance with major construction contractors to create favorable conditions for VNSTEEL steel supply to projects and construction works - Strengthen system coordination of trading companies to focus on business activities that directly support the consumption of products for steel producers in VNSTEEL system d) Financial solutions - Restructuring long-term financial investments, this is one of the key solutions of the period 2018-2020 to recover long-term capital from non-core investments to focus financial resources on VNSTEEL's strategic projects The divestment of noncore investments to focus on key investment projects can be carried out at certain stages, depending on market conditions and the attractiveness of the investment to be withdrawn - Enhance cost control, improve the ability to accumulate profits from core business activities of VNSTEEL to accumulate financial resources to implement investment in strategic projects of VNSTEEL e) Human resource solutions - Strengthen the labor productivity of the system by arranging and re-stabilizing personnel, ensuring the right personnel arrangement and the right job - Developing reasonable and dynamic personnel policies to attract more talents from other places to serve the Corporation f) Management solutions for the parent company Since 2015, VNSTEEL has adjusted the model of the parent company to become a company with the main function of investing capital in subsidiaries, building 70 and issuing management policies applicable to the system With this model, the parent company disperses risks, reduces operating costs, and creates favorable conditions for restructuring in these affiliated production units The initial results show that this adjustment is correct and brings good results for the parent company However, governance model, organizational structure and management mechanisms have not been adjusted synchronously and completely Therefore, in the coming time, VNSTEEL needs to quickly adjust and establish the parent company management model to suit the selected functions and establish a streamlined, effective and effective management apparatus At the same time, researching and applying Information Technology to the management of the whole system by building ERP software to integrate the entire system 71 CONCLUSIONS Steel industry always plays an important role in the process of industrialization, modernization and development of all countries Therefore, the Party and State of Vietnam are always interested and have strategies, planning the development of Vietnam's steel industry Vietnam Steel Corporation - CTCP (VNSTEEL) was formerly a State-owned Corporation (Corporations 91) established under Decision No 255 / TTg of April 29, 1995 of the Prime Minister on the basis of merging Vietnam Steel Corporation under the Ministry of Industry and Metal Corporation under the Ministry of Trade After more than 24 years of building and developing VNSTEEL gradually affirmed to be the leading flag in Vietnam's steel industry, being one of the leading units in the industrialization and modernization process of the country In the period 2015-2017, in the context of fluctuating business environment and fierce competition between steel production and trading enterprises, the competitiveness of VNSTEEL's construction steel products has revealed many limitations that require specific research and solutions Therefore, Thesis "Improving the competitivenes of construction steel products of Vietnam Steel Corporation in the period 2018-2022" has been basically achieved the research objectives set out Some major contributions of the thesis, specifically:  Theoretically, Thesis has identified the theoretical framework of research on the competitiveness of construction steel products, the criteria for evaluating the competitive results of construction steel products and the factors affecting the Competitiveness of construction steel products  Regarding the current situation, Thesis has analyzed and evaluated the current situation of competitiveness of construction steel products of Vietnam Steel Corporation (VNSTEEL) in the period 2015-2017 Thereby assessing the strengths, limitations and causes of competitiveness of construction steel products of VNSTEEL 72  Regarding the solution, Thesis has provided solutions to improve the competitiveness of VNSTEEL's construction steel products in the period of 20182022 Due to limited study time, the thesis cannot avoid limitations Therefore, the author is looking forward to the comments of the scientists so that the thesis is completed Once again, the author would like to express my sincere thanks to the teachers in the Hanoi School of Business and Management (HSB), and the officials and employees of Vietnam Steel Corporation - CTCP (VNSTEEL) for their dedicated help during the process of completing this thesis Sincerely thank 73 REFERENCES Ambastha and Momaya, 2004 Competitiveness of Firms: Review of Theory, Frameworks and Models Barney, J 1991 Firm Resources and Sustained Competitive Journal of Management Hoang Dinh Phi, 2015 Lecture on management of technology and innovation M Porter, 1996 Competitive strategy, Social Science Publishing House, Hanoi M Porter, 1980 Competitive advantage: Techniques for Analyzing Industries and Competitors New York: Simon and Schuster M Porter, 1990 Competitive advantage of nations, The Free Press Philip Kotler, 2000 Marketing principles, Volume 1&2, Statistical Publishing House, Hanoi Tran Ngoc Anh, 2013 Improving the competitiveness of petroleum products of Military Petroleum Corporation Master thesis, Faculty of Management and Business - Hanoi National University Pham Cong Danh, 2016 Improving the competitiveness of stainless steel products of Nhat Quang Steel Co., Ltd Master thesis, National Economics University 10 Truong Van Thai, 2013 Improving the competitiveness of Vinaphone mobile telecommunication services of Yen Thanh Telecom Center Master thesis, National Economics University 11 Hoang Anh Tuan, 2014 Improving the competitiveness of plastic pipe products of Dong Nai Plastic Joint Stock Company Master thesis, Faculty of Management and Business - Hanoi National University 12 Pham Thi Lan Anh, 2016 Improving the competitiveness of industrial explosion material products of Northern mineral chemical industry Company Master thesis, National Economics University 13 Nguyen The Xuan, 2016 Improving the competitiveness of Vietnam Joint Stock Commercial Bank for Industry and Trade - the branch of Son Son Master thesis, National Economics University 74 14 Nguyen Danh Thang, 2015 Improving the competitiveness of retail lending services at Vietnam Joint Stock Commercial Bank for investment and development - southern Ha Noi branch Master thesis, National Economics University 15 Research report of Vietnam Steel Association, 2016 on the implementation of "Development plan for steel production and distribution system in the period to 2020, considering to 2025" in the new situation 16 Vietnam Steel Association, 2016, 2017, 2018 Report on steel production and consumption 17 Vietnam Steel Corporation, 2016, 2017, 2018 Annual Report 18 World Steel Association, 2016, 2017, 2018 Report on steel production and consumption 19 Ministry of Industry and Trade, 2018 Master plan for Vietnam steel industry to 2025, orientation to 2035 Hanoi 20 Government of the Socialist Republic of Vietnam, 2011 Decision 2427 / QDTTg On mineral development strategy to 2020, vision to 2030, Hanoi 21 Government of the Socialist Republic of Vietnam, 2014 Decision 879 / QDTTg On the master plan for the development of Vietnam's industries by 2020 with a vision to 2035, Hanoi 75 ... the competitiveness of construction steel products of Vietnam Steel Corporation on the basis of identifying the basic factors impacting the competitiveness of construction steel products of Vietnam. .. of basic factors impacting the competitiveness of construction steel products of Vietnam Steel Corporation - Giving some recommendations to improve the competitiveness of construction steel products. .. should Vietnam Steel Corporation to maintain and improve the competitiveness of construction steel products? OBJECTS OF RESEARCH Objects of research are the competitiveness of construction steel products