Xây dựng chiến phát triển nhân sự của công ty ô tô trường hải e

Build HR development strategy in the phase of the five years (2013-2018)
of Truong Hai Auto Company

I. OVERVIEW OF THE COMPANY

1. 

Overview of THACO
On April, 29th, 1997, after the registration procedure as required, Dong Nai provincial

People’s Committee granted the company establishment license No.003433/GP-TLDN-02,
named TRUONG HAI AUTO COMPANY LIMITED and on May 17, 1997, Dong Nai’s
Department of Planning and Investment issued business license for the company No.054148
with the charter capital of VND 2.500 billion.
As of 6/2012, total number of staff, officers is nearly 7,000 people, in which, there
are nearly 4,000 people in Chu Lai – Truong Hai auto complex. Major business activities of
THACO are: Manufacturing - Assembly - Distribute and supply maintenance repair services
and auto parts, business activity of IZ - Urban - Real estate business investment.


2.  Structure of Truong Hai Auto

3.  The development stages of the Company:
In 1997 - 1998: Repurchase the car maintenance, exhibition center of An Hung Company.
Being sales agent for companies: Daewoo, Mitsubishi, Daihatsu, Mercedes ... Import,
refurbish old cars.
On 05/10/1999: Establish a branch in Ha Noi.
In 9/2001: Establish Manufacturing-assembling Tracimexco - Truong Hai Auto factory to
assemble KIA reach-in vehicle in Vietnam.
On 22/01/2002: Establish a branch in Da Nang

In 2003: Building Chu Lai-Truong Hai Auto Manufacturing and Assembling Plant at Chu
Lai Open Economic Zone, Nui Thanh district, Quang Nam province;
In 2004: Establish Chu Lai – Truong Hai Shipping Company - Put Chu Lai – Truong Hai
auto manufacturing & assembling factory in operation specializing in manufacturing and
assembling of trucks, buses.
In 2005: Establish: Specialized chemical plant, Vietnam CNA car seat factory,
electromechanical company.
On 06/4/2007: Converting model from Limited Liability Company to a joint stock
company, capital increased to 680 billion dong.
- Build KIA tourism car assembly factory at Chu Lai,
In 2008: Establish Industrial - urban infrastructure Investment Development Company at
Chu Lai - Truong Hai.
- Develop and put in use An Suong Showroom, Binh Trieu Showroom, Phan Thiet
Showroom, Duc Trong Showroom, Tien Giang Showroom, Showroom and service
workshop in Hoang Hoa Thanh Hoa.
In 2009:
- Establish Chu Lai - Truong Hai automotive mechanics Industrial Park.
- Establish Chu Lai - Truong Hai Company and investing in the construction of Hoa Thuan
new urban area.
- Establish steel processing and supply plants.
- Establish Chu Lai - Truong Hai Basic Engineering Plant.
- Establish Autocom seat factory
- Develop and put into use Bien Hoa Tourism car showroom, Bien Hoa Foton + Hyundai
Showroom, Can Tho Showroom.
In 2010:
- Launch to set up Bus factory, with capacity of 3,000 buses / year.
- Establish Factory of industrial refrigeration
- Launch to set up Tam Hiep Chu Lai - Truong Hai port phase 1;
- Launch to set up bonded warehouses with 33ha and establish Electromechanical

Company.
- Establish Chu Lai - Truong Hai Vocational College


- Develop and put into use Lai Thieu Showroom, Vinh Long Showroom; TM Giai Phong
Showroom;
In 2011:
- On 17/6/2011, Inaugurate THACI bus plant and introduce the Vietnamese brand bus line.
- On 21/10/2011, VinaMazda inaugurated VinaMazda Auto Manufacturing & assembling On 11/18/2012, inaugurate KIA Giai Phong - Ha Noi showroom;
- Develop and put into use Phu Nhuan Showroom (Kia Nguyen Van Troi), Kia Showroom
District 7, Mazda Showroom District 7, Commercial Showroom District 7; Binh Tan
Showroom; Mazda Bien Hoa Showroom; Tam Ky Showroom; Kia Giai Phong Showroom;
Kia Long Bien Showroom; Kia+Foton Quang Ninh Showroom; Ha Nam Showroom; Cong
River Thai Nguyen Showroom, TM Lang Son Showroom.
In 2012:
- Complete and put into use Chu Lai - Truong Hai Port phase 1.
- Build Hyundai Chu Lai - Truong Hai Motor manufacturing and processing plant.
- Develop and put into use Huyndai Da Nang Showroom, Foton Da Nang Showroom,
Quang Binh Showroom, Kia+Mazda+Peugeot Vinh Showroom, Kia Hai Phong Showroom.
4. Vision
The company will try to achieve a stable and high growth rate, bring investors
maximum efficiency and become the country's pride as a Vietnam-branded automaker..

5.  Mission
Create THACO-branded products to improve living quality of users.
Strive to make THACO become one of Vietnamese brands well known in AFTA area
and in the world.
On the sustainable development foundation, THACO will focus on developing human
resources and assets, contributing to the country's development process of economy, culture,
society and engineering industry in the future.

Business results in recent years


II. OBJECTIVES, STRATEGY AND BUSINESS PLANS
•

Improve the core competence of the company: The ability to produce in large-

•

scale, modern technology combined with management model of full value chain.
Target: Build a complete closed auto business system from component
manufacturing, parts, assembly, transport and distribution of direct retail systems and
provide repair services and spare parts after sales, with various categories and

•

product segments.
Penetrated market strategy, constantly expanding market share: Increase
production scale, technology investments to improve productivity, product quality,

•

expanding distribution network, after sales service and sales support.
Market Development Strategy: Aiming for gaining and maintainning No. 1

•

position in VN market and towards the AFTA region.
Vertical integration strategy in the opposite direction: Enhance localization rate,

reduce imports, Set up many companies in the supply chain. Develop specialized
distribution system.

For orientations, views, methods and especially management strategic adjusted in the period
2013 - 2018, Thaco plan in 2013 is oriented to implement as follows:
- Retail systems: Implement the active program: "Improve operation activities of dealers
and attached showrooms system " to capture the demand for products and after-sales
service, for services in the best way, to achieve the confidence and the highest market share
in each provincial market, the city of the country.
- Regional branches: Strengthen apparatus branch in the North, Central and South regions
towards decentralization act ends of the distribution, management and market development
as well as marketing operations. Also as a part of owner (ensure effective activities) of


attached showroom system in the area. Research, test apparatus to set up the domain branch
directly under regional branch to improve capacity management in the future.
- Production and sales of commercial vehicles (trucks and buses): Focus on developing
additional products with specifications, in accordance with the changing requirements of the
market according to the characteristics of each area, each region in order to increase market
share over the years.
- Production and sales of tourism car: Increase brand value and market share for Kia car
line. Increase sales and market share for Mazda achieved 5th place in the market, ensuring
business Mazda cars profitably. Introduce and put into production Peugeot car line for car
tourism business being full of segments: South Korea, Japan and Europe in 2013.
- Chu Lai Truong Hai Complex and Auto Manufacturing Industrial Park : Restrict to
expand investment in infrastructure, investment in-depth focus on human resources and
equipment to suit changing technology , in order to improve quality, reduce production
costs. Develop new products according to changing requirements of the market through the
development of research and product development (R & D), and increase cooperation with
other ministries and partners to develop manufacturing and automotive assembly

technology to keep up with the region. Support and participate in managing SMT
manufacturing specialized vehicles Company, forming nodal raw materials and spare parts
to provide in Korea, through developing production technology of specialist vehicles in
Vietnam.
- Delivery and transport: Continue project specialize in delivery and transport business,
further reduction in the cost of delivery and internal warehouse, enhancing external business
to increase efficiency for Chu Lai - Truong Hai port.
- Investment and basic construction: Continue to invest in building new showrooms more
suitable plan for cars in the key areas, extension of the construction of supermarkets cars
combined commercial center. Participate in infrastructure, urban development projects and
consider this as a new business line of the company in the future.
- Marketing: There are overall and specific orientations, as well as strategic marketing
plan for Thaco brand and specialize for each business line, every vehicle, every market area;
being always flexible dynamic to response with the change of market and operating
decentralized control in a scientific way, closely to improve market share, increase revenue
and reduce costs in tough, narrow market conditions.


- Financial Accounting Management: Implement program "parallel accounting
management" strong to manage budgets and expenses rigorously, ensuring effective way
under thinking change, way to do. Accounting personnel involves in the management,
parallel in all business activities.
- Human Resources: Implement program "Parallel Human Resources" strongly to manage
and develop staff towards training positive attitude, learning to improve professional skills
and administration. Leadership Development and evaluation of the effectiveness of human
resources as well as the performance of each component unit, thereby fulfilling reward
program exceeded delivery quarterly, first applied to parts sales and service in the attached
showrooms. Improve HR profession through adjustment of policies; rules and regulations
based on a philosophy of proactive, strategic perspective and human resource development,
and in accordance with the laws and new development trends of economy and society in the

future.
- Corporate cultural management: Develop and implement corporate cultural
management based on conclusions during the formation and development as well as
philosophy, vision, mission to preserve and core value of Thaco, considering this as a
prerequisite to ensure the long term sustainable development. First, establish the sense of
discipline, mental discipline and culture disciplines in each of departments, and units
throughout Thaco.
- The operation of the main office in Ho Chi Minh City and offices in Hanoi, Da Nang,
Chu Lai, Bien Hoa: Implement programs to improve the operational capacity of the
operational units such as Planning, Culture and Communications, Human Resources,
Operations Secretarial, Finance and Accounting, Information Technology, marketing
Technology, Legislation aimed at administrators and professional support for business
activities. Develop a routine and effective work for the offices, especially the general
management office in Ho Chi Minh City, worthy being Thaco advisory body of corporate
activity management effectively , properly oriented, and under plan and being Thaco
representative image for partners, customers and society.

III.

STATUS OF MANPOWER
Overall, Vietnam is considered as the advantages because of large population, it is in

the period of "golden population", workforce at the age of labor is abundant. This is really


important resources to make our country successfully economic development strategy for
phase 2011-2020 issued by Congress Socialist Party XI on 16/2/2011. However, the quality
of human resources in Vietnam is still low and needs to be improved as soon as possible.
According to the census of May 12/2010, Vietnam has nearly 87 million people. This
reflects Vietnam's workforce growing abundantly. Vietnamese manpower is composed

mostly of farmers, workers, intellectuals, businessmen, and manpower of many sectors. In
which, human resources who are farmers are nearly 62 million people, accounting for over
70% of the population, human resources who are workers are 9.5 million people (nearly
10% of the population); intellectual manpower, graduated from colleges, universities are
more than 2.5 million people, representing about 2.15% of the population, human resources
from the business are about 2 million people, of which the central sector has nearly 1
million people .... The appearance of the young entrepreneurs is seen as a new factor in
human resources, if known to exploit, foster, use effectively, it will solve many important
problems in economic – social development.
Currently, Vietnam is forming two human resource types: universal human resources
and high quality human resources. Universal human resources now remain majority, while
the proportion of high-quality human resources account for a very low rate. The current lack
of Vietnam is not universal human resources but high quality manpower. According to 2010
statistics, out of 20.1 million workers have been trained on a total of 48.8 million workers
working, only 8.4 million people with diplomas and certificates issued by the training
centers at home and abroad. The number of people aged 15 years or older trained technical
expertise is very low, accounting for about 40%. Training structure is irrational showing by
the ratio: University and higher University is 1, secondary vocational schools is 1.3 and
technical workers is 0.92, while in the world, this ratio is 1-4-10. According to the World
Bank (WB), Vietnam is a shortage of qualified skilled, high technical workers and
workforce quality of Vietnam is lower than many other countries. If taking a point scale of
10, the human quality of Vietnam is only 3.79 points (placed 11/12 among Asian countries
ranked by the World Bank) while South Korea is 6.91, India is 5, 76; Malaysia is 5.59,
Thailand 4.94 ...
Labor allocation structure by the industry is imbalance. Engineering - technology,
agriculture - forestry - fishery are weighted lower, while the law social industry, economics,
foreign languages ...are too high. Many industries and sectors have both redundant and


insufficient manpower. The fields are currently lacking labor such as: financical Business,

banking, auditing, information technology, electronics, telecommunications, mechanical
engineering ...
For the Auto industry today, the current review, the manpower needs of the industry in
Vietnam is ranked 8th after the other industries, as follows: (1) Textile - Garment Footwear skin – Crafts; (2) Food Processing technology; (3) Information Technology Electrical - Electronics – Telecommunications; (4) Construction - Architecture - transport;
(5) Services - Serving - Travel - Recreation - Restaurants - Hotels; (6) Management Administration office; (7) Finance - Banking - Accounting - Insurance; (8) Mechanical
Engineering - Metallurgy - motorcycle automotive Technology; (same 9th ranking)
Markerting sector - Economy - Business - Sales and Chemistry - Chemical industries Medical, Pharmaceutical, Cosmetics.
Status of human resources in auto industry in general, and Truong Hai in particular
has the following characteristics:
Human resources are plentiful, but without the proper care, not planning, not to be
exploited, not be upgraded, and training is not good, many people have not been trained.
The quality of human resources is not high, leading to conflict between quantity and quality.
The combination, complement, mix of human resources from farmers, workers,
intellectuals, ... are not good, divided, lack of synergies to jointly implement the
industrialization, modernization of the country.
In short, the situation in human Truong Hai Company is low-skilled, without industrial
style, no really good general construction engineers, engineers, scientists, no good experts;
consultants, advisers, no presenters, no leaders, good managers.
IV. HUMAN

RESOURCE

DEVELOPMENT GOALS

IN TRUONG

HAI

COMPANY (2013-2018)
1. Overall objectives

- The overall objective is to develop human resources in Truong Hai company
period (2013-2018) to become the foundation and the most important advantages
to develop and compete. This is a period of deep integration in the WTO,
especially tariffs are gradually removed. Truong Hai will face very stiff
competition with countries with a advanced car industry in the world and the
region.


-

Develop human resources to be able to meet the business development of the auto

-

manufacturers and companies involved auto industry of the country.
Truong Hai implements long-term workforce policies used by training programs
and training assignments appropriately, in order to create the best environment to

-

develop human resources to accompany the development of company.
Focus on development of human resources and internal teams inherited, and
recruit additional manpower from outside and foreign experts with the ability to

-

train.
Human resources integrate corporate culture and ensure the integrity of core

values that the company has formed during development.

2. Specific Objectives
The specific objectives need achieving is:
a) For a management, leadership workforce
- Build a team of professional managers with strategic vision and bravery to meet
the changing requirements, strong integration.
- Ability to plan, develop goals for the responsible units
- Ability to mentor, promote and motivate for subordinate staff.
b) For a workforce of expertise sector
 Production sector:
- Professional qualifications, technical qualifications meet current requirements
-

and keep pace with the development of science and technology in the future.
Thinking, creativity to make suggestions to improve application ffectively in

-

production
Be responsible, conscious of organizing, working style in the modern industrial

environment.
- Respect and apply innovative processes and regulations of the company.
- Honest, upright, not afraid of hard work.
- Takes responsibility and ethics towards quality of products made.
 Sales sector:
- Have a minimum experience related to the job position.
- Good communication (presentation, negotiation, writing ...), sales skills,
-

teamwork skills.

Dynamic, working independently, have progressive spirit, dedication; know to

-

share, sociable, quick and vivacious.
There is passion and knowledge of the automotive sector.
All working positions in the business sector (directly or indirectly) before taking

-

over the task of apprenticeship in the Business Department.
Frequent transfer human resources of sales consulatnts, services, the sales leader,
sales leaders between the branches in the system.




-

A healthy competitive environment among sales consultants in the same branch.
Opening a new branch needs human resources transfered from another brances.
Service sector:
Always care colleagues, customers.
Express desire to serve customers.
Professional passion, hard to learn and improve their professional skills.
Be whole-hearted to work and clients.
Ensure quality of assigned work.
Hospitality.
Honestly, know to overcome the flaws.
Basic Construction and Real Estate Investment sector:

Professional qualifications meet the requirements to ensure the development of

-

the company.
Honest and responsible for the projects, works.
Attitude to the organization of work, propose innovative solutions applied cost

-

effectively to ensure proper use cost.
Be responsible and self-confident, responsible for the progress and completion

time of the projects, works.
- Solidarity, sharing and helping colleagues.
 Financial and Accounting Investment sector:
- Making good financial management: cost management, cash management, credit
-

management, price management
Knowing the work of accounting management to monitor, advise and support

-

business activities.
Must be dynamic, understand system and proactively operate under the system.
Basic knowledge related to the business activities of the company (investment,

-

production, sales and spare parts service-after-sales…).
There is a sense of self-education and training to meet the requirements of

-

professional, corporate strategy and new trends
Strengthen the planning and control of the plan implementation
Warning unit, company's leaders when there are activities affected or will affect

the interests of the unit, the company…
3. The indicators should be achieved
Striving to achieve a number of key indicators of human development as follows:
Some key indicators of human development period 2013-2018
Indicators
In 2013
Rate of managers has higher graduate
20%

In 2018
50%

qualifications
Rate
of workers has 3/7 vocational

50%

70%

qualifications

Rate of employees quits the jobs

20%

10%


V. SWOT ANALYSIS OF THE HUMAN DEVELOPMENT OF THACO
1. Strengths:
- THACO currently owns modern automotive assembly factory complexes with the largest
scale in Vietnam. This complex was built in Chu Lai Open Economic Zone, which
includes 10 Auto manufacturing and assembling companies, 3 freight forwarding and
distribution companies and 1 spare parts Business Company. In 2009, the production
complex helped the company shipped 20,346 vehicles. There is full range of supply chain
set in a geographical area.
- Management team:
THACO leadership Board came from the private sector, clear about long-term strategy
and efforts on the highest transparency towards shareholders' interests.
The THACO major shareholders have experience in the field of automotive business.
THACO is operated by the pioneers, experience in manufacturing and assembling
automobiles in Vietnam.
- Thaco human resources are the core values and characterized by outstanding staff with
the spirit of the dedication.
- Strategy and plans for practical training, the remuneration policy of the team that would
give employees peace of mind and the dedication.
- The fierce competition of the market to some extent, promotes the spirit of learning, selfimprovement, self-renewal and the accumulated experience of each worker in Thaco staff.
2. Weaknesses
- Uneven level workforce.
- Young, inexperienced workforce so caring customer is not careful.
- Investing in training for officers and employees, but the investment cost for the training is

not much.
3. Opportunities
- Along with the strong development of the company, employee quality will be
significantly improved. Thaco Staff will have the opportunity to interact and cooperate
with all employees who set partnerhip with Thaco as Toyota, Ford …
- Thaco developed strongly to attract high-quality labor resources from competitors or
attract workers from developing countries in the world.
4. Challenges


- The biggest challenge for Vietnamese workers in general and Thaco staff in particular is
poor quality both physically and intellectually.
- Due to the high competition of the market economy, officials and employees of Thaco
can’t avoid the fluctuations of their employment.
- Moreover, Thaco imported high quality officers and employees from rivals and advanced
countries make the use value of older workers and workers diminished, causing them bored
at work.
VI. HUMAN RESOURCE STRATEGY AND POLICIES:
As one of the largest corporations of Vietnam industry, Truong Hai always has human
strategy for both width and depth. With the principle of "8 T works": "Commitment Honesty - Intelligence - Confident - Respect - Faithfulness – Caring – Convenient". This is
the core value of THACO culture, the intangible asset to build a THACO cultural
environment based on internal criteria (commitment, honesty, Intelligence, confidence) and
the external criteria (respect, faithfulness, caring, convenient). Truong Hai Company has
developed strategies to develop, transfer and apply a variety of policies and regulations of
behavior allowed in the company. Followwing to the criteria on the development of human
strategies, Truong Hai must be assured of the key elements of the human organization:
1.
2.
3.
4.

The role of each individual in the organization.
The legal framework, rules and regulations - laws.
Treatment measures - consequences.
The tools for handling.

With the required contents above Truong Hai has built and launched HR strategies and
policies in the following points:
1.

HR strategies:


Development of human resources has the right attitude and appropriate capacity to
operate the administration system to be improved over time.



Develop the execellent workforce with the spirit of dedication, self-consciously
training attitude, capablity and co-operation to create typical core values of Thaco.

2.

Human resource development policy of Thaco:


Human is critical and valuable capital.




Develop human resources to be able to meet the business development of the
automobile manufacturers and companies involved automobile industry of the
country.



Thaco implements long-term human resource policies used by training programs and
reasonable working assignments, in order to create the best environment to develop
human resources to accompany the development of the company.



Focus on development of internal human resources and inherited team, and recruit
additional manpower from outside and foreign experts with the ability to train.



Human resources integrate company’s culture and ensure the integrity of core values
that the company has formed during development.

3.

Human resources development policy in specialized sector:

Production sector:


Professional qualifications, technical qualifications meet current requirements and
keep pace with the development of science and technology in the future.



Thinking, creativity to make suggestions to improve application effectively in
production.



Be responsible, conscious of organizing, working style in the modern industrial
environment.



Respect and apply innovative processes and regulations of the company.



Honest, upright, not afraid of hard work.



Takes responsibility and ethics towards quality of products made.

Sales sector:


Have a minimum experience related to the job position.



Good communication (presentation, negotiation, writing ...), sales skills, teamwork
skills.



Dynamic, workings independently, have progressive spirit, dedication; know to
share, sociable, quick, and vivacious.



There is passion and knowledge of the automotive sector.



All working position in the business sector (directly or indirectly) before taking over
the task of apprenticeship in the Business Department.



Frequent transfer human resources of sales consulatnts, services, the sales leader,
sales leaders between the branches in the system.




A healthy competitive environment among sales consultants in the same branch.



Opening a new branch needs human resources transfered from another brances.

Service sector:


Always care colleagues, customers.



Express desire to serve customers.



Professional passion, hard to learn and improve their professional skills.



Be whole-hearted to work and clients.



Ensure quality of assigned work.



Hospitality.



Honestly, know to overcome the flaws.

Basic Construction and Real Estate Investment sector:


Professional qualifications meet the requirements to ensure the development of the
company.



Honest and responsible for the projects, works.



Attitude to the organization of work, propose innovative solutions applied cost
effectively to ensure proper use cost.



Be responsible and self-confident, responsible for the progress and completion time
of the projects, works.



Solidarity, sharing and helping colleagues.

Financial and Accounting Investment sector:


Making good financial management: cost management, cash management, credit
management, price management



Knowing the work of accounting management to monitor, advise and support
business activities.



Must be dynamic, understand system and proactively operate under the system.



Basic knowledge related to the business activities of the company (investment,
production, sales and spare parts service-after-sales…).



There is a sense of self-education and training to meet the requirements of
professional, corporate strategy and new trends.



Strengthen the planning and control of the plan implementation



Warning unit, company's leaders when there are activities affected or will affect the
interests of the unit, the company.


4.

Recruitment policy:


Unity and publicity throughout the system.



Recruit under the demand and criteria.



Preferred experience in the automotive industry and the local workforce.



Focus on strengthening human resources support for Chu Lai Complex.



Attracting high-level human resources and training experts from abroad.

5. Training policy:


As the most important task in building and developing human resources.



Apply various training programs: integration, professional skills, development, new

technologies ..., internal or external.



Focus training on the job: superiors train subornates, high level professionals /
skilled workers train lower level.



Transfer human resources to train through practical work.



Training production human resources from Vocational College of Chu Lai Truong
Hai Complex.

6.

Human resource development and management policy:


Manage employees in accordance with law and the rules, regulations and policies of
the company.



Develop a healthy working relationship based on the development of unions in
accordance with corporate culture.



Manage human Resource from the nodal point, strict hierarchy and accountability.



Job description; define the responsibilities and rights to each title.



Promote, reward and remuneration based on assessment of individual's attitude and
capacity.

7.

Policy of salaries, bonuses, remuneration and benefits:


Ensure employees' income and compete commensurate with the job in the same
industry, the same area at each time.



Wage income includes basic salary and other allowances commensurate with the
effort, responsibility and working efficiency.



Consider adjusting wages 02 times/year.



The collective and individual with outstanding achievements will be honored and
deserved commendation timely, public and fair




Periodical reward oolicy at the middle year and the end of the year depending on the
results of operations.



Extraordinary bonus mode according to achievements of individuals and collectives.

VII. REFERENCE
1. Peter Boxall, John Purcell,And Patrick Wright

(2007), Human Resource

Management, Oxford University Press
2. Truong Hai Auto JSC : />