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

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MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF MINE AND GEOLOGY

NCS NGUYỄN NGỌC ANH
NGUYỄN NGỌC ANH

RESEARCH OF DEVELOPMENT STRATEGY OF PV
TRANS TIL THE YEAR 2025

Profession: ECONOMIC MANAGEMENT
Code: 62.31.04.10

THESIS SUMMARY OF ECONOMIC PHD

HÀ NỘI - 2017

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Thesis completed in:
Department of Economics and Business Administration
University of Mine and Geology

Scientific instructors:

1. Professor, PhD Phan Huy Đường
2. PhD Vương Huy Hùng

Reviewer:

1. Professor, PhD Nguyễn Kế Tuấn
2. A. Professor, PhD Nguyễn Trọng Hoan
3. A. Professor, PhD Nguyễn Hồng Thái

Thesis will be protected in front of Basic Thesis Adjustment Council in
University of Mine and Geology at time:
date:
month:
of the year 2017.

Can find thesis at:
- Hanoi National Library
- Library of Geological – Mine University

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1
OPENNING

1. Necessity of Topic
In member companies under PVN, PetroVietnam Transportation Corp., PV
Trans is the only Marine Transportation Corp. with 51% state shares. At present, PV
Trans has a big and stable market domestically thanks to industrial zones which have
gone into operation including Dung Quat petrochemical zone (2009), Nghi Sơn
(2017). Thermoelectricity factories which will go into operation including Vũng Áng,
Thái Bình, Nhơn Trạch and ect and some projects of gas exploitation in the sea off

provinces Quảng Nam, Quảng Ngãi, Kiên Giang, Phú Quốc and ect. will expand
business opportunities for PV Trans in the time to come.
In period between 2006 and 2015, implementing policy of Vietnam Party and
State for arrangement and renovation of companies, PVN has ordered member
companies to restructure. Member companies make a big change in qualification,
independence and responsibility in framework controlled by parents companies to
unite and agree to implement a general development target.
So, period from now to the year 2025 is the one to accelerate development of PV
Trans. Before expansion of business opportunities, PV Trans needs to make a new
process of development with bigger and longer scale. Doing that, PV Trans must make a
development strategy with scientific and real basics. So, Topic “Research of
development strategy of PV Trans till the year 2025” with general purposes researches
theory frame through general documents, domestic and international researches and
experiences in making a development strategy of company, applying to analyse inside
and outside environment and other basises to make the best development strategy for PV
Trans in the period between 2016 and 2025 and proposing measures to implement it
necessarily and timely.
2. Research purposes
2.1 General purpose
On the scientific and realistic basis, to adjust reality of inside and outside
environment affecting production and business activities of PV Trans, thesis makes a
theoretical points of science to tends to development strategy and proposes main
measures to successfully implement development strategy of PV Trans in the period
between 2016 and 2025.
2.2 Specific purposes
First, making a theory frame for research of making development strategy for a
company generally, a corporation operating in the model of Parents Company and
Subsidiary Company particularly. In that, clarifying basic contents of process of
development and elements of research and adjustment in process to make

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development strategy.
Second, to collect and analyse experience in making development strategy of
some national companies, corporations for a PV Trans lesson.
Third, to analyse and adjust realistic situation of elements of inside and outside
environment affecting activities of production and business of PV Trans in the time
of research to identify tendency affecting activities of production and business of PV
Trans (for elements of outside environment) and strong and weak points (for
elements of inside environment).
Fourth, to make theoretical points of science to identify development strategy
for PV Trans in the period between 2016 and 2025, to propose measures of scientific
base to successfully implement development strategy for PV Trans.
3. Research question: to implement research purposes, thesis till focus on
researching and answering the below questions:
Basic features for development strategy of a corporation operating in model of
Parents company and Subsidiary company?
The steps of process to make development strategy of a corporation operating
in model of Parents company and Subsidiary company?
To use what model to analyse, adjust, make and choose the best development
strategy of a corporation operating in model of Parents company and Subsidiary
company?
Elements of business environment and internal elements of PV Trans will create
any opportunity and challenge for development of PV Trans in the coming time ?
In the period between 2016 and 2025, how PV Trans has a mission, vision and

purpose for development ?
What development strategy PV Trans can apply in the period of 2016-2025?
Indentified content of strategy? What key measure is made to successfully
imeplement it ?
4. Purpose and scope of research
4.1 Purpose of research:Thesis focuses on research to make development strategy of
PetroVietnam Transportation Corporation in the period between 2016 and 2025.
4.2 Scope of research:To research basic contents in making depvelopment strategy,
adjust reality situation of elements of inside environment, outside enviroment and
propose measures to implement it for the period of 2016-2025.
5. Research method
To implement purpose of research, the thesis takes a qualitative and quantitative
research method with research frame is detailly mentioned in chapter 2
6. New contribution of thesis

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In scientific side: the thesis confirms a detailed and full access of important
and necessary elements of business environment, including micro enviroment;
industry environment; internal environment of company in process of making
development strategy for PV Trans.
In realistic side: the thesis makes a development strategy, a reference document
for the Management of PetroVietnam Transportation Corp. in effectively adjusting
activities of production and business in the future.
7. Content of thesis

Chapter 1: Overview of research concerning the topic.
Chapter 2: Therory basis on making development strategy of PV Trans and
research method of topic.
Chapte 3: Analyse real situation of development strategy and elements affecting
it for PV Trans.
Chapter 4: PV Trans development strategy till 2025.
Chapter 1
OVERVIEW OF RESEARCH ON TOPIC
1.1. International research
1.1.1. Researches concerning concept and role of strategy.
1.1.2. Researches concerning administration of strategy.
1.2. National research
1.2.1. Researches concerning concept, role and classification of strategy.
1.2.2. Researches concerning management of strategy.
1.2.3. Researches concerning marine transportation and making development
strategy for some marine transportation companies
PhD Cao Ngọc Thành with his work : “Develop Vietnam marine transportation
till the year 2020 and tend to 2030”
Professor, PhD Phạm Văn Cương with his work “Strategic management in
Vietnam marine companies”
PhD Thesis of Ms Lê Thị Việt Nga: “Develop Vietnam marine transportation
serives to meet the needs of international intergration ”
However, in thesises, makers just generally research in making development
stategy and business strategy for companies.
1.3. Conclusions of general research
1.3.1. Some the most agreeable issues.
First, strategy management is a colletion of decisions of management and
activity to tend to complete the long-term purpose. In reality, it is a method
companies make strategy, evaluate implement effect and adjust it as needed.

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Second, process of strategy usually incluces some steps along with identified
contents. In structure, generally the strategies are similar. However, for different
companies, structure of a strategy can be different. A strategy can have less parts
because some similar contents can be combined in a part for logic and un- repeating.
On the other side, a strategy can have more parts because some similar contents can
be seperated in a part to emphasise seperated content. Name of strategy parts can be
different according to different strategy making boards. Order of parts in structure of
a strategy can be changed.
1.3.2. Research space
Above researches with legislative basis is a basic to “ research development
strategy of PV Trans till the year 2025”. Thus, thesis must research and clarify the
below issues:
First: continue to research theory basis to flexibly apply to make PV Trans
development strategy.
Second: research experiences in making development strategy of some national
and international companies, particularly the ones doing business in marine
transportation to take a lesson of experiences for make PV Trans development
strategy.
Third: Analyse national and international environment particularly the
environment of business of marine transportation services to point out opportunities
and challenges for PV Trans development strategy in the coming time.
Fouth: Analyse and evaluate realistic situation of PV Trans in all sides
including business activity, human resource, finance, technical and materialistic

basis, structure of management organization and ect to point out strong and weak
points.
Fifth: Combine opportunities and challenges with strong and weak points to
make strategic scripts for PV Trans.
Sixth: Declare mission, vision and target of development for PV Trans til the
year 2025; Propose measures to implement targets of PV Trans development strategy.
Conclusion of chapter 1
Chapter 1 of thesis clarifies the below basic contents :
First, the thesis outlines national and international researches in 03 groups:
Researches concerning concept, role and strategy classification; Researches
concerning strategic management; Researches of making content structure of a
strategy.
Second, thesis confirms research space of research in making development
strategy for companies in general and PV Trans in particular.

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Chapter 2
THEORY BASIS ON MAKING DEVELOPMENT STRATEGY FOR PV
TRANS AND RESEARCH METHOD OF TOPIC
2.1. PV Trans Development Strategy
2.1.1. Concept of PV Trans Development Strategy:
PV Trans Development Strategy has the below basic features:
(i) Development strategy covers all activities of PV Trans. And usually, just
Senior Managers have sufficient and necessary capability and vision to understand

giant affect of strategical decision and sufficient right to arrange necessary sources.
(ii) Development strategy affects prospect of PV Trans in a long time because
PV Trans has pledged to implement a development strategy, it means to advertise
image and point out competitive advantages of PV Trans in the market.
(iii) Strategical issues usually tend to the future because they are made on
managers’ predicting rather than knowing. It’s important that the more predictions
are tight and exact, the more PV Trans finds the best choices for development
strategy. A corporation just succeed as it has active position (prediction) with change
of environment.
2.1.2. Upgrade PV Trans strategy
Generally, in an organization, corporation operating in model of Parents
company and subsidiary company particularly has 3 strategical levels :
(1) Strategy of organization level;
(2) Strategy of business units level - Strategy SBU;
(3) Strategy of fuction level.
2.1.3. Role of development strategy for PV Trans
Importance of development strategy for PV Trans presents :
First, development strategy confirms action tendency for PV.
Second, development strategy basically makes action plan for operation of PV
Trans.
Third, development strategy enhances effect of PV Trans.
Fouth, development strategy makes a qualitive change for PV Trans.
Fifth, development strategy is a tool to increase pleasure of employees in PV
Trans.
In conclusion, without strategy, corporation is like a ship without wheel. Most
of failure of companies in general and corporation in particular are in lack of strategy,
wrong strategy or making mistake in implementing strategy.
2.1.4. Basic content of development strategy of PV Trans

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Development
strategy

1
Basis to
make
strategy

6
2
Purpose
of
strategy

3
Strategic
plan/development
tendency

4
Implementation
measure

Table 2.1: Basic content of PV Trans development strategy
2.2. Process of making PV Trans development strategy
2.2.1. Analyse business environment

2.2.1.1. Analyse business environment outside PV Trans.
a) Analyse macro environment
First, analyse political and legislative environment
Second , analyse economic environment
Third, analyse technical environment
Fouth, analyse social and cultural environment
Fifth, analyse natural environment
Sixth, analyse international environment
b) analyse industrial environment
Potential opponents
Risks of new comer

Negotiable
Supplier power of
Supplier

Competitors in industry

Competition of current opponents

Negotiable
power of

Buyer

Buyer

Risks from replacement
product
Replacement product

Graphic 2.3: Model of 5 competitive forces of M.Porter
2.2.1.2. Analyse environment inside PV Trans.
a) Analyse financial capacity of PV Trans
b) Analyse human resource of PV Trans
c) Analyse productive capacity of PV Trans
d) Analyse marketing capacity of PV Trans

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e) Analyse research and development (R&D) of PV Trans
f) Analyse organization structure of PV Trans
So, after process of analysing inside environment of PV Trans, we can identify
strong and weak points of PV Trans comparing with other competitors in market. It’s
an important basis for making development strategy of PV Trans in the next
operation time.
2.2.2. Identify mission and vision for PV Trans development strategy
Mission of PV Trans : identify its basic purpose, shortly present reasons of its
existing and what PV Trans must do to reach its vision
Vision of PV Trans : identify how PV Trans will be in the future, it’s the
starting point for answer to question “ Where we want to go?”
2.2.3.Identify purpose for PV Trans development strategy
Right strategy purpose needs the below features:[9]
First, features for organization: strategy purpose must be more specific than
declaring mission but not extremely specific because we do not want so many

purposes in strategical plan.
Second, Measurable: Purpose must be detailed by targets, so it’s necessary to
make an exact target to measure process to tend to reach each of specific purpose
indentified.
Third, Ambitious: purpose showing ambition that organization wants to reach,
thus it’s surely possible.
Fouth, Possible and Relevant: purpose must be possible and relevant to
condition and resource of organization.
Fifth, Timely: purpose must be timely to be reached.
Sixth, Importance : there are hundreds of purposes in strategical plan, but we
must confirm the most important ones, the less important (purpose at the lower level
answers question “How”) is unnecessary to remove but we must take it into working
plan.
Seventh, Reflective: strategic purpose must reflect analys in the process of
making strategical plan. That’s the reason why we must analyse evironment before
making strategical purpose.
2.2.4. Make choices for PV Tran development strategy
First, Directional strategy: making a general tendency for PV Trans is to grow,
be stable or narrow.
Second , Portfolio strategy: mentioning fields, industry, product that PV Trans can
produce or supply market.
Third, Parenting strategy: mention management method to aim to joinly

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operate, transfer and use resource, to make capacity among industries and operation
field of PV Trans.
2.2.5. Evaluate and choose the best development strategy for PV Trans
a) Purpose to evaluate and choose the best strategy plan.
b) Tool of evaluating and choosing the best development strategy.
2.2.6. Propose and decide PV Trans development strategy
After process of evaluating plans, one will be chosen. Now, we need to decide
to arrange HR and other resources of PV Trans to implement the plan. The plan of
PV Trans must be made to describle specific mission and necessary action to
implement development strategy, when and who will be responsible for
implementing it. The plan must be possible in condition of limit in time and financial
and human resources and ect.. Next step is to propose and decide development
strategy in paper.
2.3. Some models of making and choosing development strategy of a company
2.3.1. Models of analysing company environment
2.3.1.1. Matrix to evaluate outside elements - EFE
2.3.1.2. Matrix to evaluate inside elements - IFE
2.3.1.3. Matrix of competitive image
2.3.2. Model of tending strategy
2.3.2.1. Matrix SWOT
Currently, matrix SWOT is a tool the most seen in forming strategy tendencies
and trusted by big and small companies in the world as well as Vietnam.
Opportunity
s1

o1
s1o1

Strong point

Threat
oh t1
s1oh s1t1

sioj

sn sno1
w1 w1o1
Weak point
wm wmo1

tk
s1tk
si t j

snoh snt1
w1oh w1t1
wioj

sntk
w1 t k
witj

wmohlh wmt1

Graphic 2.5: Matrix SWOT

Including : oj possible opportunities
tj possible threats
si strong points

wi weak points

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wmtk


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2.3.2.2. Matrix BCG

Matrix BCG is made by two criterias : Market growth and Relative market
share :

Market growth

High

Star

Low

Suspection

Cow
High

Removal

Low

Relative market share
Graphic 2.6: Matrix BCG

2.3.2.3. Matrix Mc Kinsey
Competitive position

Average

Weak

Winning zone
SBU3
SBU1

Average

Weak

SBU2

Question zone

Profit zone
Acceptable zone
SBU4

Market size

Strong

Attraction of market

Strong

Failing zone

SBU market share

SBU market share in total
intrustry market

Graphic 2.7: McKinsey Matrix

2.3.3. Model of choosing the best strategy
2.3.3.1. Quantitative strategy planning matrix - QSPM
Matrix QSPM uses input datas from analyses of steps forming matrix IFE and
EFE, helping Management to decide to choose development strategy to aim to
successfully implement their purposes.
2.3.3.2.Generic model
Growth strategy is classified in two kinds: Focused growth strategy and
diversified growth strategy. Diversified growth strategy is growth strategy in which
companies expand to other industries/fields.
2.3.3.3. Model of general management strategy analys

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General management strategy focuses on the key capacity of a company and value
is created by join of its departments.
2.4. Experience in making development strategy of some companies and
corporations in Vietnam and lessons for PV Trans
2.4.1. Experiences in making development strategy of Petrolimex Marine
Transportation Corp.
Investing in developing and renewing ship fleet: attracting experienced
employees, maintaining land management system as international standard,
promoting to expand market and the most important premiss is annually stable cargo
sources of Petrolimex.
2.4.2. Experiences in making development strategy of VOSCO
Vietnam of Ships Co. (VOSCO) confirms vision to become a trademark in
South East Asia in bringing customers the best marine transportation services with
the most competitive price, VOSCO pledges to supply services with the highest
quality, guarantee of safety for people, ships, cargo and environment is the first
priority.
2.4.3.Experienced lesson for PV Trans in development strategy
Basing on tendency of development strategy of companies and corporations in
marine transportation, the thesis can have a lesson of experiences for PV Trans as
below:
First, making development strategy must base on industry planning, policies of
Vietnam Party and Government at the same time to tend to the more deeply
international integration of Vietnam. For instance, production capacity planning must
be appropriate in supply – demand and competition in society. Then we should
calculate the number of companies and each appropriate company in industry because
if there are a very few companies, it will lead to monopoly and unhealthy
competition. On the contrary, if there are so many companies, it causes severe

competition and leads to supply which is more than demand and causing loss for
companies and society.
Second, chosen development strategy must indentify tendency of long-term
development investment focusing on the key activity fields as a stable base on
developing other production fields, particularly greatly potential fields and the
possibility in winning market of PV Trans.
Third, in process of making strategy, PV Trans must correctly identify
opportunities and risks of environment and evaluate its strong and weak points. It’s a
very important base on making and choosing development strategy which is

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appropriate in environment unstability and strategy tendency of PVN.
Fourth, process in making PV Trans development strategy must guarantee a
rule : participation of PVN Senior Managers, member companies or even we can take
ideas of all PV Trans staffs to guarantee that strategy is formed with the most
possibility.
Fifth, content of chosen development strategy must guarantee PV Trans stable
development and be appropriate in environment changes of international economy
integration process of Vietnam.
2.5. Thesis research method
2.5.1. Research theory frame
PV Trans
environment
analys

Macro Environment
Analys
Industry Environment
Analys

Internal Environment
Analys

Identify mission
and vision of PV
Trans

Identify
development
strategy purpose of
PV Trans

Identify development
strategy choices of
PV Trans

Development
strategy of PV
Trans

Directional strategy

Development
strategy purpose

Portfolio strategy

Development
strategy content

Parenting strategy

development
strategy
implementation
solution

Graphic 2.8: Research theory frame in making PV Trans development strategy
2.5.2 Research process
Step 1: Theory research in strategy, focusing on process of making PV Trans
development strategy
Step 2: Research and evaluate reality of elements of inside and outside
environment.
Step 3: Use model including SWOT and QSPM.
Step 4: Evaluate realistic situation and propose key solutions to aim to
successfully implement development strategy.
2.5.3 Method of document collection and processing
2.5.3.1. Method of collection of research document and data.
2.5.3.2. Method of process of research data
Secondary data: It will be used directly or processed simply (ratio division) to
compare and evaluate.
Primary data: It is from research and investigation and processed by Excell

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Conclusion of Chapter 2
Realistic and scientific researches show that successful companies are ones
making themselves right and clear development strategies. The development
strategies need all members in company to make effort in implementation, to focus
total resource under the Management of company and to be timely adjusted to bring
the best effect for company.
First, chapter 2 of thesis clarifies the most basic content in theory of making
development strategy for a corporation to operate in model of Parents company and
Subsidiary company. The theory will be applied to reality of PV Trans business
environment analys, then it helps thesis to note opportunities, challenges, strong and
weak points of PV Trans to serve for making development strategy.
Second, chapter 2 of thesis outlines some necessary models to serve business
environment analys process, to form and choose the best development strategy for a
corporation in operation of model and Parents company and Subsidiary company.
Third, thesis makes theory frame in research for development strategy of
corporation operating in model of Parents company and Subsidiary company and
points out research process, method of data collection and processing to implement
research purpose.
Chapter 3
ANALYSING REALITY OF DEVELOPMENT STRATEGY AND ELEMENTS
AFFECTING PV TRANS DEVELOPMENT STRATEGY

3.1. Overview of PV Trans
3.1.1. History of forming and developing of PV Trans
PetroVietnam Transportation Corporation abbreviated as PV Trans, before it’s

PetroVietnam Transportation Company, a state company formed on May 27, 2002 as
Decision No.358/QĐ-VPCP issued by Minister, Chairman of Government Office
with authorized capital of 720 billion Vietnam dong.
PV Trans Office is based on Second Fl., Bldg at 43 Mac Dinh Chi St., Dist. 1,
HCMC.
Tel : +84 8 39111301, fax: +84 8 39111300.
Website: www.pvtrans.com
3.1.2. Main operation of PV Trans
Crude oil transpotation service; Product oil transpotation service; Gas and
chemical product transpotation service; Petro shipping technology service; Logistics
service.
3.1.3. PV Trans organization structure

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General Meeting of shareholder

Board of Supervisors
Board of Management
Board of GD

Office

Board of Law Safety

Board of HR Organization

Board of Sales

Financial and Account Board

Board of Invesment

Board of Planning and Investment

PV Trans PSM

Southern PetroTrans

PV Trans OFS

PV Trans Pacific

PV Trans Vũng Tàu

Gas Shipping

PV Trans Hà Nội

PV Trans PCT

PV Trans Quảng Ngãi

PV Trans Oil

Associated Company

PV Trans PTT
Graphic 3.1: PV Trans organization structure
3.1.4. Member companies of PV Trans
Table 3.2: Member companies of PV Trans til the end of 2015
Authorized
Equity
Ownership
capital as
Ownership
Capital of
ratio of
Business
ratio of PV
No.
Company name
PVTrans
PVN in
registration
Trans
(billion
companies
certificate(billio
(%)
dong )
(%)
n dong)
1 PV Trans Vũng Tàu
156,232 156,000
99,85%

58,31%
2 PV Trans Hà Nội
108,100 107,800
99,72%
58,24%
3 PV Trans Quảng Ngãi
20,000
7,600
99,87%
58,32%
4 PV Trans Pacific
942,750 612,000
64,92%
37,91%
5 Southern PetroTrans
582,565 405,623
69,63%
40,66%
6 Gas Shipping
300,000 203,209
67,74%
39,56%
7 PV Trans Oil
200,000 135,975
67,99%
39,70%
8 PV Trans PCT
230,000
52,038
22,63%

13,21%
9 PV Trans PTT
100,000
38,670
38,67%
22,58%
Source: [61]

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3.1.5. Overview result of business activity of PV Trans in the period of 2011-2015
Through data table of result in business activity of PV Trans in the period of
2011-2015, we can see that the key target has a rather good growth year by year in
the period of 2011-2015.
Gross revenue of the whole period reaches 25,344 bil. gong getting 108%
planning, annual average revenue is over 5,000 bil. dong.
Gross profit of the whole period reaches 1.172 bil. dong, getting150%
planning; annual average gross revenue is 235 bil. dong.
3.2. Analyse current strategy of PV Trans
3.2.1. Analyse development strategy in the period of 2011-2015 of Parents
Company (PV Trans)
3.2.2. Analyse affect of development strategy of Subsidiary companies for process
of making development strategy of Parents Company - PV Trans
3.2.3. Analyse affect of development strategy of PVN for process of making
development strategy of PV Trans

3.3. Analyse elements affecting development strategy of PV Trans
3.3.1. Analyse outside elements
3.3.1.1. Analyse macro environment
a) Environment of politics, legislation and policy
i) Environment of politics
ii) Environment of legislation and policy
b) Environment of economy
i) Vietnam economic growth
ii) Interest rate and tendency of interest rate in economy
iii) Inflation in economy
iv) Currency exchange rate
c) Environment of ship technology and transportation capacity
i) Vietnam ship fleet
ii) Transportation capacity of PV Trans ship fleet
d) Social and cultural environment
e) Natural environment
f) International environment
3.3.1.2. Analyse industry environment
a) Analyse competitors
b) Analyse customers
c) Analyse suppliers
d) Analyse replacement products

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e)Analyse potential opponent
3.3.1.3. Evaluate reaction rate of PV Trans for elements of outside environment
3.3.2 Analyse inside environment of PV Trans
3.3.2.1. Analyse financial capacity of PV Trans
Through target evaluation table reflecting financial quality of PV Trans in the
period of 2015, we see that financial capacity of PV Trans is rather good, management
capacity and financial resource usage make a great effect.
3.3.2.2. Analyse HR of PV Trans
Total employee number of PV Trans is 1,919 persons, as a specific industry, the
male employees rate is over 70%, employee rate with B.A. degree and higher than B.A.
degree take up 25-40% , it’s rather high.
3.3.2.3. Analyse PV Trans production capacity
PV Trans point in developing ship fleet is clear: First, developing PV Trans
ship fleet in a modern way; Second, gathering source to guarantee safe and timely
transportation of input material and get out output products for factories invested by
PVN; Third, it is the first priority in usage of internal and national services in
building some transportation means of PV Trans to support to enhance national ship
building at the same time to decrease foreign currency loans.
So, PV Trans ship fleet has rather much limit, many ships are old – age. Most
of loans in ship investment project are in foreign currency, so change in exchange
rate is a highly risky element in PV Trans annual cost.

3.3.2.4. Analyse marketing capacity of PV Trans
Parents company, the department to do marketing under Board of Sales is
R&D Dept.
Research market scale and
tendency

Research market price

Content of general research
of transportation market
trường vận tải
Research market affected
Research market state
elements

Hình 3.11: Content of generally researching transportation market of R&D
Dept. of PV Trans
3.3.2.5. Analyse capacity of research and development of PV Trans
PV Trans promotes to renovate and make innovation to renew and optimize

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management, production and technology to save cost and to enhance productivity,
service quality and business and production effect.
3.3.2.6. Analyse PV Trans organization structure
Current PV Trans organization structure is not really appropriate : it shows that
tight connection of departments is not logical. Staffs work in the way that staffs just
work as what manager order. It does not utilize activeness and innovation in solving
work problems and causes dependance in staffs.
3.3.2.7. Evaluate strong and weak points of inside elements in PV Trans
Strong points
PV Trans business activities develop well in the period of 2011-2015, it’s a
good starting for PV Trans in the next period.

Trademark of PV Trans is appreciated. PV Trans has been noted in top 500 of
the biggest corporations of Vietnam in the year 2015 (VNR500) at the same time PV
Trans is in the top 50 Vietnam the best with the most effect activity and contributes
state budget so much and has the best growth in the period of 2010-2014. PV Trans
ranks 10 in top 50 companies with the biggest brandname value in Vietnam.
PV Trans currently is the only transportation corporation in PVN with the
biggest fleet of liquid cargo ships in Vietnam and capable of transporting in diversity
(crude oil, product oil, liquid gas……). It takes an advantage in competition for PV
Trans.
Weak points
PVTrans ship fleet is becoming old and creates more cost as PV Trans has not
invested in ships because financial difficulty remains.
PV Trans has not had long-tem strategy vision, marketing capacity is limited
and R&D activity is not highly effect for operation of PV Trans.
Some PV Trans member companies have been in difficulty and unbalanced in
finance. It affects development strategy of PV Trans.
Conclusion of chapter 3
Fisrst, generally reseach organization structure, role and function of
departments, field of operation, and reality of business situation of PV Trans in the
period of 2011-2015.
Second, the thesis analyses outside evironment elements of PV Trans. Then, it
identifies opportunities and challenges for transportation business of PV Trans now
and in the future.
Third, the thesis also analyses inside evironment elements of PV Trans and
gets analys in comparision with some PV Trans competitors in specific business field.
Through that, the thesis indentifies strong and weak points of PV Trans to compare

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with competitors.
Fouth, By research and investigation, researcher makes matrix to evaluate
reaction rate of PV Trans for outside environment elements, strong and weak points of
inside environment elements of PV Trans. The results of two matrixes are base for
choosing the best development strategy for PV Trans in the next chapter of the thesis.

Chapter 4
DEVELOPMENT STRATEGY OF PV TRANS TILL THE YEAR 2025 AND
VISION TIL THE YEAR 2035
4.1. Identify mission and vision of PV Trans
4.1.1. Mission of PV Trans
PV Trans identifies its mission as below :
First, PV Trans guarantee benefit of shareholders
Second, PV Trans activities meet the need of services of transportation and
petro marine (hàng hải dầu khí) in the nation and in the region the best.
Third, PV Trans guarantees living for all staffs.
Fouth, PV Trans joins to guarantee national energy security.
Fifth, PV Trans contributes to nationally economic and social development.
4.1.2. Vision of PV Trans
PV Trans tries to become the biggest corporation of petro transportation and
marine service in Vietnam and a strong brandname in the region. PV Trans develops
quickly, strongly and stably to take its persons as the key element to enhance
management capacity, administration, competition and business effect by utilizing
all available resources.
4.2. Purpose of development strategy of PV Trans
4.2.1. General purpose

PV Trans determines to keep its position as the biggest jointly- owned
corporation of transportation and service of petro marine in Vietnam at the same time
to develop to become a strong transportation brandname in the region and in the
world.
4.2.2. Specific purpose
Specific purpose of PV Trans development strategy is outlines in figures table
presenting some business targets of PV Trans in the period between now and 2025:

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Table 4.1: Key targets of production and business in the period of 2016 - 2020 of
PV Trans
No.
I
II
III
1
1.1
1.2
1.3
1.4
1.5
1.6
2
3

4
5
IV
1
IV
1
V
VI

Target
Owners’ equity
Authorized capital
Gross revenue
From transportation services
- Crude oil transportation
- Oil product transportation
- Gas product transportation
- Chemical transportation
- Coal transportation
- Other transportations
From services of FSO/FPSO
Business in trade
From other services
Financial activities
Gross profit
Gross profit rate/Owners’ equity
After - tax profit
After-tax profit/ Owners’ equity
State budget contribution
Dividents devision rate

2016
3.325
2.814
5.577
2.991
1.031
691
587
264
418
733
1.647
116
89
308
9,3%
247
7,4%
229
10%

5 year plan
2018
4.142
3.405
8.844
5.797
2.248
980

682
76
651
1.349
439
461
807
887
1.793
39
122
128
87
92
388
482
10,0%
11,6%
310
385
8,0%
9,3%
286
362
10%

2017
3.868
3.096
6.960

4.152
1.638
775
649

2019
4.259
3.405
9.729
6.445
2.361
1.029
716
153
1.702
484
976
2.088
134
86
517
12,1%
414
9,7%
395

2020
4.930
4.086
10.268

6.767
2.479
1.081
752
160
1.787
508
1.031
2.239
141
90
545
11,1%
436
8,8%
417
10%

Table 4.2: Targets of main production and business in the period of 2021 - 2025
of PV Trans
No.
1

2
3

4

5

Calculation
2021
2022
2023
2024
2025
2030
2035
Unit
Owners’ equity Bil. đồng
6.869 6.915 7.327 7.536 8.242 8.728 8.508
Authorized
Bil. đồng
3.405 3.405 3.746 3.746 4.121 4.121 4.121
capital
Gross revenue Bil. đồng
8.998 10.014 10.551 10.709 10.873 12.752 13.750
Bil. đồng
Gross profit
605
663
691
806
795
901 1.002
Gross
profit/Average
%
18,6% 19,5% 19,3% 21,5% 20,2% 21,9% 24,3%
Authorized

capital
After-tax
Bil. đồng
488
534
557
649
641
726
808
profit
After-tax profit
/Average
%
15,0% 15,7% 15,6% 17,3% 16,3% 17,6% 19,6%
Authorized
capital
State budget
Bil. đồng
373
392
404
432
435
523
573
contribution
Targets

Source: PV Trans

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4.3. Propose development strategy of PV Trans till the year 2025
4.3.1. Make plans of development strategy for PV Trans
4.3.1.1. Make matix SWOT for PV Trans
4.3.1.2. Make matix BCG for PV Trans
4.3.1.3. Make matix Kc Kinsey for PV Trans
4.3.2. Choose the best development strategy for PV Trans
4.3.2.1. Analyse to choose the best development strategy.
Choosing development strategy through quantitative strategy planning matrix QSPM is made by usage of research result reached in chapter 3 along with idea
reference to 56 managers of PV Trans.
4.3.2.2. Make content of chosen development strategy
a) For crude oil transportation
(i) Market evaluation
(ii) Make specific purpose
First, for Dung Quat oil refinery factory (before expansion)
Second, for Nghi Son petrochemistry refinery factory project
Third, for Vung Ro Oil Refinery factory project
b) For transportation of oil product and chemistry
(i) Market evaluation
First, for product oil transportation
Second, for petrochemistry transportation
(ii) Make specific purpose
First, for Dung Quat oil refinery factory (before expansion)

Second, for Nghi Son petrochemistry refinery corporation
Third, for Southern petrochemistry project
c) For transportation of liquid petroleum gas - LPG
(i) Market evaluation
First, Dock Project LNG Thị Vải: capacity of 1 mil. tons/year in Ba Ria Vung
Tau province is expected to go into operation by the end of the year 2017.
Second, Dock Project LNG Son My: first capacity of 3 mil. tons/year in Binh
Thuan province is expected to go into operation in the period of 2019- 2020 to serve
electricity factories in Sơn Mỹ.
(ii) Make specific purposes
First, for oil refinery factory Dung Quất và PVGas (Gas factory Dinh Cố and
factory GPP Cà Mau)
Second, for petrochemistry refinery project Nghi Sơn
Third, for Southern petrochemistry project
Fouth, for project oil refinery factory Vũng Rô
d) For coal transportation :

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(i) Market evaluation
(ii) Make specific purpose
First, for thermal power plant Vũng Áng 1
Second, for thermal power plant Thái Bình 1 and thermal power plant Thái
Bình 2
Third, for thermal power plant Long Phú 1 and thermal power plant Sông

Hậu 1
e) for petroleum and marine service (FSO/FPSO):
(i) Market evaluation
(ii) specific purpose making
4.4. Solution of successfully impementing development strategy of PV Trans
4.4.1. Financial solution
4.4.1.1. Main targets
First, increase and diversify additional revenue sources from PV Trans
activities and utilize support from PVN.
Second, save 10% budget spending for management per year, money for R&D
and Marketing, try to increase additional staff income in the way that the later year is
20% higher than the previous one, excluding salary increase and minimum salary rate
adjustment.
4.4.1.2. Main financial solution
Mobilize capital for key investment projects in different channels, particularly
in 03 ones :
First, issue bonds to pay interest as business activity effect.
Second, borrowing capital from commercial banks : take avantage of prestige
of PV Trans to access the borrowing capital flexibly and reasonally. Third,
reinvestment capital : retained earnings of PV Trans.
4.4.2. Solution for HR
4.4.2.1. Main targets
First, develop HR in quantity and quality
Second, focus to develop a team of staffs in charge of R&D and Marketing to
improve business cost and increase profit for PV Trans in the coming time.
4.4.2.2. Key HR solutions
First, for HR employment : actually, HR employment of PV Trans has greatly
progressed, employment quality increases.
Second, for HR training and development : Lately, HR training and
development of PV Trans is invested with diversity in expense sources and training

method.
4.4.3. Marketing solution
4.4.3.1. Main targets

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First, make a professional MKT department to enhance research capacity and to
predict marine transportation market to serve business activity of PV Trans
Second, develop business market for PV Trans.
4.4.3.2. Key marketing solution
First, create a professional MKT department to implement proposed development
strategy.
Second, develop business market for PV Trans..
4.4.4. Solution in Research and Development
In the next time, PV Trans needs to promote to train experts for R&D and
strengthen activity for R&D Dept.
Make an big progress in technology to stably keep the leading position in the
industry and enhance trademark prestigue for services by increasing transportation
service quality supplying to customers.
4.4.5. Solution in internationally economic integration
PV Trans must actively find opportunies of co-operating with foreign partners
with capacity and experience in petroleum transportation and petro marine service to
deploy specific projects in national and international markets.
PVTrans must prepare necessary sources in finance to renew ship fleet, add
new and professional transport ships to previously get and meet demands of national

and international markets.
4.4.6. Solution in management organization
4.4.6.1. Model of management of Parents company
Make management model of Parents company which is in charge of role to
tend development strategy, actively operate and invest in finance as model of big
corporations in the world.
4.4.6.2. Organization model of Parents company
Professionally and tightly re- arrange organizion structure and management
and identify functions, missions and activities of parents company and member
companies to aim to utilize the available potential.
4.4.6.3.Restructure member companies
First, increase scale of authorized capital for some member companies which
effectively do business and operate in main industry at the same time enhance
ownership rate of Parents company to increase control right.
Second, decrease ownership of some member companies.
Third, degenerate 100% capital in ineffectively-operated member companies.
Fourth, enhance management capacity of PV Trans member companies,
particularly the ones with financial difficulty.
Fifth, check management work in member companies.
4.4.6.4. Complete company management activities

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Complete and standardize financial management process in the whole PV
Trans : Strengthen mechanism of supervision and checking of state owner for PV

Trans ; Strengthen transparency in internal finance management of PV Trans
Complete and standardize mechanism of employment, HR training, policy of
salary and bonus in the whole PV Trans to attract high quality HR.
4.4.6.5. Complete system of report and evaluation of activity effect.
Check and complete system of report, mechanism of checking and evaluation
of activity effect of member companies which is appropriate with reality and
standards; Strengthen co-operation between Parents company and member companies
and among member companies through economy contract, rules of co-operation and
management.
4.4.6.6. Manage changes
Form Board of Strategy with participation of key managers : Chairman of
Board of Members is the Head, GD and Deputy GD in charge of finance are Deputy
Head and Chief Accountant is member.
Make mechanism of information exchange between Board of Strategy and
departments and all staffs in PV Trans.
4.4.7. Measure of environment protection
PV Trans needs to update, add and make periodical and sudden check to
guarantee that safety management system of PV Trans is made as request of
International Safety Management Code (ISM Code) to aim not to have accidents and
problems for persons, property and harm in environment.
Strengthen information work, education and make a big change in notes and
action of Executive Committee of Party Hierarchy, Labor Union, Youth Union and
all staffs for responsibility and awareness of environment protection.
4.5. Condition and proposals
4.5.1. Necessary conditions to make strategy
For mechanism and policy:
For good conditions of business of PV Trans in the coming time, particularly in
national market, Vietnam Government needs to remain protection mechanism by not
allowing foreign ships to fly their national flags as transporting inside Vietnam.
For market:

To successfully implement proposed development strategy for PV Trans till the
year 2025, customers must guarantee the below elements:
First, guaranteeing that PV Trans is alsways the only transportation corporation
for Oil Refinery Factory Dung Quất even after expansion.
Second, remain and develop service of coal transportation of PV Trans for
customers: Thermal Power Factory Long Phú 1, Thermal Power Factory Sông Hậu
1, Thermal Power Factory Quảng Trạch 1, Thermal Power Factory Vũng Áng 1 and

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Thermal Power Factory Thái Bình 2.
Third, to guaranty that PV Trans transports at least 30% input crude oil
material, 50% petroleum products, output chemisty for Petrochemistry Refinery
Corp. Nghi Sơn; at least 50% chemical, input LPG and output products for Southern
Petrochemistry Corp.
For finance:
Need to invest to develop PV Trans ships fleet to serve to implement
development strategy of PV Trans in the period of 2016-2025 is big. PVN needs to
guarantee and supply necessary finance source for PV Trans.
4.5.2. Some proposals
To successfully implement development strategy till the year 2025, PVN must
concern and support some below issues:
First, PVN supports PV Trans proposals as above mentioned including to
strongly support that PV Trans is the only transportation corp. for all petrochemistry
refinery plants and coal power plants…….intested by PVN.

Second, support PVTrans to invest to enhance competition capacity of ship
fleet.
Third, approve plan to buy some Vietnam transportation companies to increase
capacity of ship fleet and it is the appropriate PV Trans development tendency to
guarantee effect.
Fouth, PVN assigns PV Trans to supply transportation service of goods
produced by factories of companies in PVN and construction equipments for projects
invested by PVN;
Fifth, to well implement long-term and stable purpose of development, PV
Trans needs to make a big investment program, so PVN continues to guarantee loan
for PV Trans with big investment projects.
Conclusions of chapter 4
Chapter 4 is the one to aim to make ending research of thesis, there are details
as below:
First, clearly indentify mission, strategy vission and development purpose of
PV Trans in the preriod of 2016-2025.
Second, the thesis proposes tendencies of big development strategy from
analysing SWOT, the tendencies of development strategy is evaluated through matrix
QSPM to find the best development strategy for PV Trans.
Third, clarify basic contents in chosen development strategy plan at the same
time the thesis proposes some solutions to implement strategy and conditions to
successfully implement the solutions.

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