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VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

Vu Hong Van

HUMAN RESOURCE DEVELOPMENT OF MECHANICAL ENTERPRISES
IN THAI NGUYEN PROVINCE

Major: Business Administration
Major code: 9 34 01 01

SUMMARY OF DOCTORIAL THESIS
IN BUSINESS ADMINISTRATION

HA NOI - 2019


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The thesis was completes at Graduate Academy of Social Sciences

Academic Supervisor: 1. Assoc.Prof. Dr. Dinh Ngoc Lan
2. Assoc.Prof. Dr. Vo Van Duc

Reviewer 1: Assoc.Prof. Dr. Tran Minh Tuan
Reviewer 2: Assoc.Prof. Dr. Ngo Quang Minh
Reviewer 3: Assoc.Prof. Dr. Nguyen Ngoc Son

The thesis is defended against Academy-level Examination Board at

Graduate Academy of Social Sciences
Time: ………… date………month……….year 2019.


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PREAMBLE
1. The urgency of the topic
In the current period of international and regional integration, in order to have
sustainable competition, human resources (HR) is an important factor to use and promote
the effectiveness of other resources. In addition, the 4.0 industrial revolution is now
strongly influencing all sectors and areas that lead to a major change in production forces,
especially in manufacturing. The mechanical industry in our country has a development
history over 60 years and always has been identified as a key industry in the national
economy. Data from the General Statistics Office in 2017, the country has 17,000
mechanical manufacturing enterprises. In 2015, Vietnam’s mechanical industry ensured
32.5% of domestic demand and 30% of export.
However, most mechanical enterprises are in a weak status due to weak internal
resources. Their difficulties are lacking of capital, production equipment is not
synchronized, small production has not met the increasing demand for high-tech
products, limited management skills and especially lack of human resources with high
quality.
Thai Nguyen is a province with a tradition in mechanical industry with the
formation and development of the Iron and Steel Industrial Park since 1959, which was
once the cradle of Vietnam’s mechanical industry. In 2017, the province has 230
manufacturing enterprises with over 19,000 employees, focusing mainly on iron and steel
production, products from prefabricated metals, machines and equipment. The value of
products reaches over 29 520 billion VND in 2017, contributing 9% to GDP of Thai
Nguyen. However, that development is not commensurate with the potential, has not
affirmed its position and role in the Vietnam’s mechanical industry with the advantages

of raw materials for producing, the input of the provincial mechanical labor force.
Human resource development for mechanical enterprises in Thai Nguyen province
will promote the development and contribution of enterprises to the development of Thai
Nguyen province. Moreover, Thai Nguyen used to be the cradle of Vietnam's mechanical
industry, currently focusing on the largest mechanical enterprises, so the development
will bring an important contribution to the mechanical industry of the country.
Therefore, the selection of the topic "Human resource development of mechanical
enterprises in Thai Nguyen province" is an essential and useful research to use and
promote the labor force of mechanical enterprises with high efficiency; contribute to the
socio-economic development of Thai Nguyen province; furthermore, contributing to the
development of Vietnam's mechanical industry in the new context with many challenges.
The success of thesis will contribute to suggesting feasible solutions for human resource
development, contributing to the development of each enterprise, the socio-economic
development of Thai Nguyen province and Vietnam’s mechanical industry generally.


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2. Aims and tasks of the study
2.1. The aims of the study
Clarifying the current activities of human resource development of mechanical
enterprises in Thai Nguyen province; Since then, propose solutions and recommendations
for Thai Nguyen mechanical enterprises to meet the development requirements in the
current period.
2.2. The tasks of the study
- Overview of domestic and foreign researches of human resource development.
To systematize the basic theoretical basis of human resource development in enterprises.
- Clarify the nature and content of human resource development in mechanical
enterprises, in which focus on improving the quality of human resources.
- Analyzing the characteristics of human resources in mechanical enterprises,

clarifying the important internal factors affecting mechanical enterprises in Thai Nguyen
province.
- Based on experiences of some enterprises, the thesis has drawn valuable lessons
that can be applied in Thai Nguyen mechanical enterprises.
- By practical data, the thesis analyzes and clarifies activities of HRD in Thai
Nguyen mechanical enterprises; points out the specifics and causes of these limitations.
- Through the plans and objectives of the development of mechanical industry and
the development of mechanical enterprises in Thai Nguyen province, the thesis proposes
solutions to meet the business objectives of mechanical enterprises in Thai Nguyen
province to 2025, vision to 2035.
3. Subjects and scope of the study
3.1. Subjects of the study
The research subject of the thesis are defined as human resources and HRD
activities of mechanical enterprises in Thai Nguyen province.
3.2. Scope of the study
- The content of HRD: Researching aspects in developing human resources quality
of Thai Nguyen mechanical enterprises. The content of research includes: current quality
of human resources, factors affecting HRD and organizing activities in order to develop
HR of Thai Nguyen mechanical enterprises.
- About Scope: The thesis mainly researches private and state-owned enterprises
in Thai Nguyen province.
- About Time: The thesis focuses on researching the production and business
situation in general and HRD activities of Thai Nguyen mechanical enterprises in the
period of 2013-2017. Primary data is collected by the author from June 2016 to
December 2017.
4. Methodology and research methods of the thesis
4.1. Methodology


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Theoretical basis of the thesis is the theory of HRD to meet the needs and
objectives of mechanical enterprises. At the same time, inheriting and selecting research
results of published scientific works related to the topic.
4.2. Research Methods
The thesis uses specific research methods: statistical methods, analytical methods
and systematic methods, expert methods, method of comparison, sociological
investigation.
* The method of data collection
- Collecting primary data: Using survey methods through questionnaires.
Choosing a sample to get surveyed opinions from enterprises through interviewing
managers, employees and discussing with experts.
- Collecting secondary data: The thesis collects secondary data including
documents, books, statistic data, documents of sample enterprises and published
scientific researches.
* Methods of data analysis and processing
About the sample: To collect primary data on HRD activities, the author
conducted a survey of 24 mechanical enterprises in Thai Nguyen province. The total
number of questionnaires is 392 out of 17 938 labors of Thai Nguyen mechanical
enterprises. The results collected 380 answers, through screening there are 376 valid
answers and used for qualitative and quantitative analysis.
Data processing: Using SPSS 22.0 software to analyze the correlation to assess the
impact of factors on HRD activities of Thai Nguyen mechanical enterprises.
5. New scientific contributions of the thesis
Firstly, the thesis has given and analyzed important factors of the internal
environment of enterprises affecting HRD activities, including production technology,
learning motivation of employees, self-study ability of employees and learning culture of
the enterprise. In particular, the production technology is particularly interested in the
context of deep international integration and the strong influence of the 4th industrial
revolution.

Secondly, the thesis has analyzed the current situation of mechanical enterprises in
Thai Nguyen province, has assessed the advantages and disadvantages as well as the
causes of the remaining limitations. Since then, managers in Thai Nguyen mechanical
enterprises aim at appropriate solutions to HRD of their enterprises to meet the
development needs. In particular, focus on building a learning culture of the enterprise
and strengthening cooperation between enterprises and training institutions.
Thirdly, the thesis is one of the first researches about HRD in mechanical
enterprises. Research results can bring meaningful implications for enterprises in
Vietnam’s mechanical industry.
6. The theoretical and practical meaning of the thesis
6.1. Theoretical meaning


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The thesis further clarifies the quality of human resources and HRD activities of
Thai Nguyen mechanical enterprises. The research results have contributed a part of
theoretical research in an industry, enriching the experience for the approach and analysis
of sciencetific researches of HRD for the objects related.
6.2. Practical meaning
The mechanical industry is an important industry of the economy. In reality, the
quality of human resources has not met the development needs of the industry in the
period of deep integration into the international economy. Therefore, the research topic
clarifies the situation of HRD in Thai Nguyen mechanical enterprises; provide analysis,
evaluation and give suggestions on meaningful solutions for business owners, managers
and employees in Thai Nguyen mechanical enterprises in order to improve the quality of
HR in medium and long term; contributing to the development of Thai Nguyen
mechanical enterprises in particular and the socio-economic development of Thai Nguyen
province in general.
7. Structure of the thesis

Apart from the introduction, conclusions, references and appendices, the main
content of the thesis consists of 4 chapters as follows:
Chapter 1: Literature review.
Chapter 2: Theoretical and practical basis of human resource development in
mechanical enterprises.
Chapter 3: Current situation of human resource development in mechanical
enterprises in Thai Nguyen province.
Chapter 4: Viewpoints, orientations and solutions for human resource
development in mechanical enterprises in Thai Nguyen province.
Chapter 1
LITERATURE REVIEW
1.1. Overseas studies
1.1.1. Overview of studies related to human resource development with socio-economic
development
Human resource training can be said to have begun researched around 1750 in the
UK according to James R. David Ph. and Adelaide B. David (1998). HR training and
development have become a function of HRM and affirmed its role over time. Many
researchers have confirmed that human resources have become an important resource for
the socio-economic development of each country: E. Wayne Nafziger (1998), Gary S.
Becker (2010), ...
1.1.2. Overview of studies related to human resource development at the enterprise
scale


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Research model of Jerry W. Gilley et al. (2002) showed the effect of HR training
in the short and long term for individual employees and employers. Inga Erina and
colleagues (2015) developed a model to assess the importance of stakeholders in human
resource training projects. Pal Boring (2017) has shown training as a way to stimulate

new creative ideas.
Alan Price (2011) focused on analyzing the outstanding views on the process of
making and implementing the plan of HRD and studied the impact and impact of factors
on human resource management. Robert L. Mathis (2011) argues that there are four types
of training: regular training, technical training, problem solving and career development.
Three types of training goals can be set are attitude, knowledge and skills. Training can
be assessed at four levels: reaction, learning, behavior, and results. Avram Tripon (2013)
analyzed the learning needs of employees beyond the framework of classroom learning.
Graham Beaver and Jim Stewart (2004) showed that the viewpoint of business leaders is
a major factor affecting the HRD in enterprises. Phana Dullayaphut, Subchat Untachai
(2012) studied four influential factors. Haslinda & Mahyuddin (2009) realized that the
support of managers and colleagues greatly influenced the effectiveness of training. Gary
Dessler (2015) pays attention to creating motivation in the learning environment for
learners in addition to demanding the necessary skills while emphasizing lifelong
learning in enterprises. Maksims Kazakovs (2014) points out 12 factors affecting HRD,
Andreas Gegenfurtner et al (2016) mentioned the effectiveness of training
transfer is proportional to the level of decision to participate in training of employees.
A.K.L. Jayawardana et al. (2008) argue that training efficiency is measured by the
number of learners who successfully apply the knowledge learned to jobs, how long it
will take to apply for jobs and how long the organization recognizes overall benefits.
1.2. Studies in Vietnam
1.2.1. Overview of studies related to human resource development with socio-economic
development
Typical research authors are Bui Van Nhon (2012), Pham Thanh Nghi, Vu Hoang
Ngan (2006), Vu Van Phuc, Nguyen Duy Hung (2012), Nguyen Huu Than (2012),
Nguyen Loc (2010), Pham Thanh Nghi (2009)
1.2.2. Overview of studies related to human resource development at the enterprise
scale
In the country, the research works on human resources and HRD in the scope of
enterprises are diversified in approach and content. Typical studies include: Tran Kim

Dung (2011) emphasized that training is considered a basic solution to meet strategic
objectives, in which the quality of employees has become a competitive advantage of the
enterprises. Nguyen Ngoc Quan and Nguyen Van Diem (2012) have determined the
overall goal of human resource training and development is to maximize the use of
existing human resources and improve the efficiency of the enterprise. Hoang Xuan Hiep
(2013) clearly identified 6 factors affecting the quality of human capital of garment
enterprises. Nguyen Van Thuy Anh (2014) examined the subjective and objective factors
of enterprises affecting training and development of technical workers of enterprises.


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Canh Chi Hoang (2014) has analyzed the factors affecting HRD in industrial enterprises.
Nguyen Thanh Vu (2015) identified 9 factors affecting HRD of Tien Giang garment
enterprises. Dinh Thi Hong Duyen (2015) added and built a new variable that motivates
employees to measure the effectiveness of training of enterprises in the digital industry.
Dinh Van Toan (2010) offers 5 groups of solutions and specific implementation measures
to systematically assess the capital for the Electricity Group.
Pham Tat Dong, Dao Hoang Nam (2011) said that in learning society, every
person must be regularly educated, continuously trained and lifelong learnt. Nguyen Tan
Thinh (2008) argues that proper identification of training and development needs in an
enterprise needs to know specific bases. Ha Van Hoi (2007) said that with the rapid
development of science and technology, updating and equipping employees with
knowledge to complete their assigned work is an indispensable requirement. Nguyen
Quoc Khanh (2010) highly appreciated the role of human resource training and
development in order to promote the capacity of employees in addition to focusing on
rewarding and disciplining employees, also motivating and encouraging employees. The
current training trends in enterprises with adaptive view will suggest the content and
method of HRD for enterprises in the current period. Nguyen Tiep (2008) said that the
process of training to transform human resources to promote and arouse human

potentials, increasing and improving both morality and skills. Nguyen Tien Hung (2014)
required to provide a capacity framework of staff to apply to human resource
management. Pham Quy Long (2008) raised the requirement of HRM to achieve two
basic objectives: effective use of human resources to increase labor productivity and
improve efficiency of the enterprise; meet the needs and create conditions for employees
to maximize their capacity, stimulated and motivated at work and be loyal, dedicated to
the enterprise.
1.3. Summary of research results on human resource development of the published
works and the research direction of the thesis
- At the macro perspective, the research has achieved the following results: (i)
Affirming that education and training is the basic way for HRD and the necessity of
investment for education and training for HRD of each country. (ii) Affirming the crucial
and decisive role of HRD strategy for the national socio-economic development. (iii)
Human resources training and developing should pay attention to all aspects of
knowledge, skills and attitudes. The forms of training need to be diversified, appropriate
and practical.
- The results achieved in the research works on HRD at the micro perspective: (i)
Explain the importance of developing the HRD strategy of enterprises and the close
relationship between strategy of HRD and business strategy of enterprises. (ii) Discussing
the content of the HRD concept in enterprises under the perspective of human resource
management in particular, business administration in general and showing the factors
affecting HRD in different fields and sectors. (iii) Affirming that HRD at enterprises is


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the main measure to meet the requirements and goals of business activities. (iv)
Implementing training and development activities at enterprises need to have appropriate
training methods for different subjects to achieve high efficiency and need to be
specifically assessed. (v) Activities of attracting, using and maintaining human resources

must always go along with training activities for employees in enterprises, (vi) The role
of all managers and motivational activities of enterprises for employees take important
roles for HRD.
* Issues need to be further studied
Up to now, there has not been any work in depth researching on HRD for
mechanical enterprises in Thai Nguyen province, with the analysis of influencing factors
related to characteristics of mechanical industry and mechanical enterprises in Thai
Nguyen. In the current context, with the industry 4.0 and extensive international
integration, it is necessary to have an in-depth research on human resource development
in mecahnical industry.
* Research direction of the thesis
- In terms of theory: The thesis lists theoretical basis of HRD in mechanical
enterprises. In which, it clarifies: (i) Concept, content and criteria of evaluating HRD in
mechanical enterprises; (ii) Factors affecting HRD activities of mechanical enterprises;
(iii) The contents of HRD activities in mechanical enterprises.
- In terms of practice: (i) The thesis analyze and assess HRD activities in Thai
Nguyen mechanical enterprises on the basis of the theory below; (ii) The thesis propose
the orientation and solutions of mechanical enterprises in Thai Nguyen province to 2025,
with vision to 2030.
Chapter 2
THEORETICAL AND PRACTICAL BASIS OF HUMAN RESOURCE
DEVELOPMENT IN MECHANICAL ENTERPRISES
2.1. Theoretical basis of human resource development
2.1.1. The concept of human resources
Inheriting the viewpoints and theories of research on human resources above, in
the perspective of business administration, considering within the scope of enterprises,
the author said that: human resources of enterprises are all human resources with
characteristics of physical, intellectual and mental strength, able to participate in the
production and business activities of enterprises at present and in the future.
2.1.2. The concept of human resource development

Inheriting and combining the above concepts, the author generalizes the concept of
HRD as follows: Human resource development are the activities of enterprises to
effectively attract and use human resources of enterprises based on the development goals
of enterprises and employee's voluntariness.


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2.2. Basic characteristics of human resources in the mechanical industry
2.2.1. Concept and classification of mechanical human resources
Labor in mechanical enterprises includes: Mechanical Engineers, Managers,
Technical Workers and Service workers.
2.2.2. Characteristics of mechanical human resources
Labors in mechanical enterprises are technical labors in majority. Therefore, it is
required to have technical qualifications to meet requirements of works. Currently, in
mechanical enterprises, most of the human resources do not meet the requirements of
high-tech production such as lacks of knowledge of new technologies, low professional
qualifications, weak industrial style. Mechancial enterprises and factories still face with a
shortage of labor, especially engineers, technicians and skilled workers. Moreover, the
labor force in the mechanical industry has not effective cooperation, close association and
work in group. Mechanical training in institutions/schools do not attract students.
Regarding to labor quality in mechanical enterprises, requirements are as follow:
Careful, persistent, diligent, industrious and dedicated to work; be passioned for
machines and techniques; Cooperative spirit and teamwork ability.
2.3. Content of human resource development in mechanical enterprises
2.3.1. Physical resources development
Human resources in mechanical manufacturing industry, especially direct workers
who often do exhausting works, requiring good health. In addition, working in an
environment with heavy noise and exposure to machines requires to be careful, highly
focused on operational activities.

2.3.2. Intellectual resources development
In addition to possessing knowledge, there must be a method of scientific thinking
and skill training to do work reached to a certain level of maturity. The intellectual
capacity of employees is reflected in the following aspects: educational level, technical
and professional qualifications, professional knowledge, vocational skills, work
experience, creativity and soft skills.
2.3.3. Mind power development
Mind power is the capacity of will to express in aspects such as working attitude,
working psychology, awareness of discipline, self-awareness in working, sense of
responsibility, sharing and cooperation with colleagues, working style, professional ethics
as well as the ability to bear pressure and effort in working.
2.4. Factors affecting human resource development activities of mechanical
enterprises
2.4.1. External factors affecting human resource development activities of mechanical
enterprises
External factors include: Globalization and international integration; Mechanism
and policies of the State on human resource development; Socio-economic development
level; Education and training development level.


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2.4.2. Industrial factors affecting human resource development activities of mechanical
enterprises
The industrial environment includes elements in the industry and external factors
for businesses, determining the nature and level of competition in that business. There are
basic factors including: existing and potential competitors, suppliers, customers and
alternative products.
2.4.3. Internal factors affecting human resource development activities of mechanical
enterprises

Based on the characteristics and human resources of of mechanical industry,
inheriting previous studies, the author gives four most important internal factors affecting
the efficiency of HRD of Thai Nguyen including: Production technology, learning culture
of the enterprise, self-study ability of employees and learning motivation of employees.
2.5. Human resource development activities
2.5.1. Recruitment and using human resources reasonably
2.5.2. Evaluating human resources objectively and accurately
2.5.3. Strengthening training, development staff, engineers and skilled workers
2.5.4. Completing compensation for employees
2.5.5. Creating a positive working environment
2.6. Some experiences of human resource development of enterprises
2.6.1. Experience of human resource development from Toyota
2.6.2. Experience of human resource development from FPT Corporation
2.6.3. Lessons of human resource development for Thai Nguyen mechanical
enterprises
Firstly, human resource development of enterprises should be considered an
important task in the development plan. Developing to improve the quality of human
resources is a long and continuous process.
Secondly, implementing recruitment and using of human resources.
Thirdly, it is necessary to improve the material and spiritual life to motivate
employees and attract quality labor.
Fourthly, raising the sense of responsibility, professional ethics and occupational
culture for labors:
Fifth, building a working environment that satisfies the requirements of works,
promoting the autonomy of individual employees, strengthening the connection between
individuals, promoting team spirit.
Chapter 3
CURRENT SITUATION OF HUMAN RESOURCE DEVELOPMENT IN
MECHANICAL ENTERPRISES IN THAI NGUYEN PROVINCE
3.1. Overview of Thai Nguyen province

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3.1.1. Characteristics of natural geography and population of Thai Nguyen province
3.1.2. Socio-economic characteristics of Thai Nguyen province
3.2. Basic characteristics of Thai Nguyen mechanical enterprises
The mechanical industry holds an important position in Thai Nguyen's industry. In
2017, Thai Nguyen province has 230 mechanical enterprises among a total of 2894
enterprises with the main function of producing mechanical products, including industries
with code C24 - metal production, C25 - producing products from iron available, C28 production machines and equipments, C29 - producing parts and equipments for motor
vehicles. Number of mechanical enterprises accounts for 39.9% of manufacturing
enterprises and 7.9% of total enterprises in the province. The average number of labors in
Thai Nguyen mechanical enterprises is 85 people. The majority of Thai Nguyen
mechanical enterprises have a business capital of 1 to 50 billion VND. Enterprises with
large amount of capital such as Thai Nguyen Iron and Steel Corporation, Song Cong
Diesel Limited Company, FUTU 1, Natsteelvina, Thai Trung JSC.
3.2.1. Characteristics of products
Main products of Thai Nguyen mechanical enterprises include: iron and steel,
molds, metal assembling components, mechanical tools, machinery parts, bearings, gears,
gearbox and machinery tools. Products are usually mass-produced or manufactured in
small batches according to orders. Most of these products require specific designs
according to the specific requirements of customers.
3.2.2. Characteristics of Technology
Investment for technology in the provincial mechanical enterprises is still weak.
The majority of technologies that enterprises and factories use are old and multi-purpose
devices. In enterprises and workshops, up to 80% of equipment is separated and
asynchronous, most of them are fully depreciated. Some enterprises with relatively
modern technology are: Pho Yen Joint Stock Company, FUTU.1 JSC, Diesel Song Song
Co. Limited.

3.2.3. Characteristics of labor
Up to December 31, 2017, Thai Nguyen mechanical enterprises have a total of 19,573
employees. Labor size of Thai Nguyen mechanical enterprises is mainly small, from 10
to 50 labors is major (68%). Direct labors are the production workers that account for 6575%, engineers account for 15-25% of labors. Labors in manufacturing enterprises are
mainly trained in mechanics, metallurgy, casting, steel rolling, heat treatment, casting,
turning, milling, cooling, grinding, rolling, forging, welding, plating ... In terms of
qualifications, laborers with intermediate or higher degrees accounted for 39.9%,
technical technology accounted for 58.2%, mainly trained from vocational education
institutions in Thai Nguyen province.
3.2.4. Results of business activities
The total revenue of Thai Nguyen mechanical enterprises increases steadily every year
with the rate of 12 - 20%. In 2017, industrial production value of mechanical enterprises
reached 29 520 trillion VND, export value was 22 743 trillion VND.


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3.3. Current situation of human resource development activities of mechanical
enterprises in Thai Nguyen province
3.3.1. Recruitment and staffing
Local labor force is evaluated quite plentiful but the training quality of schools has not
met the requirements of enterprises. The number of labors relatively meets business
activities of enterprises but the quality of labor only meets at the average level (3,6/5
point). The recruitment system reaches to the average level, in which criteria for staff
selection have not yet specified, the recruitment process is not clear and objective (2,55
point).
3.3.2. Evaluation of work performance
The evaluation of employee performance is quite well-done and also diversified
(3,5/5 point). Large-scale enterprises perform assessment methodically and stably.
3.3.3. Human resource training

The investment and implement of human resources training activities of Thai Nguyen
mechanical enterprises is very different, depending on the scale of enterprises, types of
businesses, viewpoints of leaders and the development of enterprises. In general, largescale enterprises are interested in and organize training activities with better plans and
processes. Small-scale enterprises are less interested in formal training or perform
training activities without plans to meet immediate requirements of work. In 2017, there
were 5048 employees sent for training, 80.36% were direct laborers, 70.66% were trained
at enterprises. Average training costs 700 thousand VND/labor/year. The training
contents are mainly specialized, skills, fire protection, labor safety, policy, quality
management and technology.
3.3.4. Labor compensation
Thai Nguyen mechanical enterprises perform labor compensation activities
through a system of salaries, wages, bonuses and benefits. However, each enterprise has
different salary regulation. Enterprises also apply the following bonus forms: Rewards at
the end of the year, technical innovation and bonuses for good labors. Although policies
of labor compensation are not diversified and motivated enough for employees, they also
create appropriate income with employees' contributions with the average income in 2017
is 8.3 million VND per month.
3.3.5. Working environment
Relation between superiors and subordinates, among colleagues is well
appreciated. The activities of job analysis, performance appraisal and promotion policies
of enterprises are not high with an average mark below 3.5/5.0. Highly rated activities
include working conditions, work arrangement and compensation in enterprises with an
average mark of 4.0/5.0.
3.4. Internal factors affect human resource development activities in Thai Nguyen
mechanical enterprises
The results of quantitive analysis for the model are accepted with 4 factors
affecting HRD in mechanical enterprises (E), including: T - Production technology, M -


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Learning motivation of employees, C - Learning culture of the enterprise, A - Selflearning ability of employees.
E = 1.172 + 0.129 T + 0.184 M + 0.290 C + 0.138 A
3.5. Overall assessment of human resource development activities in Thai Nguyen
mechanical enterprises
3.5.1. These achievements
Human resource development activities have been paid attention and implemented
by Thai Nguyen mechanical enterprises, bring certain efficiency in business activities and
benefits for employees.
3.5.2. Limitations and the causes of these limitations
- Recruitment and staffing: Quality of input labor is not really guaranteed because
the recruitment sources are limited; standards are not clear as well as the recruitment
council is not really professional.
- Performance evaluation: Most of Thai Nguyen mechanical enterprises do not
perform it properly and scientifically.
- Human resource training has not performed steps of training process effectively.
- Labor compensation is not really fair and motivated to employees for their
contribution to the enterprise.
- The working environment has not really been improved with building learning
culture of enterprises.
The cause of the limitations:
* Objective reasons: (i) With the fluctuation of the economy, during the difficult
period, most of Thai Nguyen mechanical enterprises must focus on finding markets and
partners. (ii) Due to the characteristics of human resources in Vietnam, there are
limitations in physical strength, working skills and industrial style are weak and passive,
slow adaptation to changes in business environment. (iii) The education and training
system in general and professional training in particular are still limited, leading to
training quality not to be met the requirements of enterprises. (iv) Mechanisms and
policies of labors and jobs are slow change.
* Subjective causes: (i) Many Thai Nguyen mechanical enterprises have not

appropriately invest in technology. (ii) The majority of enterprises are small and medium
enterprises, so they are not interested in human resource development in the medium and
long term. (iii) Staffs in charge of human resources are not properly trained in human
resources, so advising, consulting and organizing HRD activities are not effective. (iv)
The perception of employees about HRD is not right. (v) Enterprises’ policies of
attracting talented managers and engineers are not highly attractive. (vi) Implementating
compensation policy for employees has improved, but at a slow and low pace, has not
motivated employees.


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Chapter 4
VIEWPOINTS, ORIENTATIONS AND SOLUTIONS OF
HUMAN RESOURCE DEVELOPMENT IN MECHANICAL
ENTERPRISES IN THAI NGUYEN PROVINCE
4.1. International and domestic context affecting human resource development
activities of mechanical enterprises
The international economic integration and the impacts of the industrial revolution
4.0 bring challenges to the Vietnamese mechanical industry with more opportunities and
competition from FDI enterprises.
4.2. Viewpoints, orientations and objectives of human resource development of
mechanical enterprises in Thai Nguyen province up to 2025, vision to 2035
The viewpoint of human resource development of Thai Nguyen mechanical
enterprises is as follows: Human resource development based on socio-economic
development strategy for the period of 2011-2020 and the next period; human resource
development in Thai Nguyen province must be based on human resources needs of the
industry and the province; comprehensive human resource development includes
physical, intellectual, skills, social ethics and foreign languages according to the
requirements of comprehensive human development and sustainable national

development; Human resource development is the cause and responsibility of the whole
society; Strengthening and expanding international cooperation in human resource
development; Policies maintain mechanical labors associated with jobs.
The orientation of human resource development in Thai Nguyen mechanical
enterprises is to have a workforce with good health, comprehensive development of
intellect, will, creative thinking ability and good morality; capable of self-learning, selftraining, brave, confident, dynamic, initiative and creative; Having high professional
knowledge and skills, being able to adapt and respond quickly to constantly changing
living condition and working environment; Adapting to modern development level and
international integration.
The goals of human resource development in Thai Nguyen mechanical enterprises
are as follows:
Firstly, Thai Nguyen mechanical enterprises contribute to the growth rate of
industrial production value in the province reached an average of 22% per year. Striving
to the year of 2025 the production value of the mechanical industry will account for 8%
of the province's industrial production value.
Secondly, striving in the period of 2018 - 2025 to raise the rate of trained workers
with vocational and intermediate degrees in Thai Nguyen mechanical enterprises to 80%.
Thirdly, strengthening the training quality of universities, colleges and vocational
schools, attracting high-quality human resources to meet the requirements of developing
mechanical enterprises in Thai Nguyen province.


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4.3. Solutions for human resource development of mechanical enterprises in Thai
Nguyen province up to 2025, vision to 2035
4.3.1. Controlling factors affecting human resource development activities in Thai
Nguyen mechanical enterprises
Enhancing the positive effect from the influence of above factors on human
resource development of Thai Nguyen mechanical enterprises.

4.3.2. Completing human resource training activities in Thai Nguyen mechanical
enterprises
Good implementing steps of human resource training process will increase the
effectiveness of human resource training, changing the quality of human resources in
Thai Nguyen mechanical enterprises.
4.3.3. Improving the efficiency of other activities for human resource development in the
Thai Nguyen mechanical enterprises
Enhancing the positive efficiency of Thai Nguyen mechanical enterprises in order
to effectively use and sustainably develop human resources of enterprises.
4.3.4. Active cooperating with training institutions in the province to attract and recruit
human resources suitable to the needs of enterprises
Training mechanical human resources at levels with high quality, quickly adapting
to practical work, meeting the recruitment needs of Thai Nguyen mechanical enterprises.
4.4. Some recommendations
4.4.1. Some recommendations for Thai Nguyen Province
Firstly, strengthening to forecasting labor demand. Secondly, forming and
developing the labor market. Thirdly, developing the system of professional training and
vocational training.
4.4.2. Some recommendations for training institutions
Firstly, creating and maintaining the relation between training institutions and
enterprises in recruitment. Secondly, expanding forms of training by address, local
training for locals.
CONCLUSION
The mechanical industry is an important industry in the economy. The mechanical
industry in general and mechanical enterprises in particular are currently limited to hinder
development such as outdated technology, weak development of market and limited
investment capital besides human resources with low qualifications and weak
cooperation, industrial style, poor management skills. Human resource development in
any period is an important solution to improve the competitiveness of each enterprise.
Human resource development is considered a regular and long-term activity to improve

the working capacity of employees, achieving efficiency in work while contributing to
fulfilling the current and future objectives of the enterprise.


17

In order to assess the current situation of human resources development of Thai
Nguyen mechanical enterprises, the author has used qualitative research methods as
descriptive statistics, comparing secondary data sources and expert methods. Case study
in 24 mechanical enterprises in Thai Nguyen province shows that human resources of
Thai Nguyen mechanical enterprises are interested in training and development but are
not effective and still have certain limitations that do not meet the requirements of
business activities of enterprises in the new period. Besides, the author uses quantitative
methods to handle primary data sources through doing survey. Inheriting previous studies
and researching, the thesis identified four internal factors affecting human resource
development in Thai Nguyen mechanical enterprises, including: Production technology,
learning motivation of employees, culture training of the enterprises and self-learning
ability of employees. The research results confirm the theoretical model in accordance
with the survey data.
Based on the orientation and development objectives of mechanical industry, the
development orientation of Thai Nguyen mechanical enterprises set in the current
context; The thesis has built up human resource development perspective for Thai
Nguyen mechanical enterprises up to 2025, vision to 2035; Since then, proposing four
groups of solutions for Thai Nguyen mechanical enterprises, including: Controlling
factors affecting human resource development activities in Thai Nguyen mechanical
enterprises; Completing human resource training activities in Thai Nguyen mechanical
enterprises; Improving the efficiency of other activities for human resource development
in the Thai Nguyen mechanical enterprises; Active cooperating with training institutions
in the province to attract and recruit human resources suitable to the needs of
enterprises.

Proposals for relevant agencies in Thai Nguyen province to enhance the
effectiveness of intermediaries in connecting the human resources of society with
mechanical enterprises; Proposals for training institutions of mechanical labors to
improve the training quality to meet the demand of mechanical enterprises in Thai
Nguyen province.
However, the thesis still has limitations, in particular: The sample size is 376
according to the author is not large enough. Accordingly, the impact analysis of
individual factors such as age, gender, qualification and seniority has not been studied.
Therefore other future researches with larger sample sizes may increase the overall
results and analyze other aspects of the model. Secondly, the thesis selects and analyzes
four factors in the internal environment of the enterprise, belonging to personal factors
and factors of enterprises affecting human resource development because the author
expects feasible solutions for active enterprises’ practicing. In fact, human resource
development in enterprises is also affected by many other factors including external
factors such as socio-economic environment, labor market, the state’s support and some
other elements of the enterprise such as development orientation and business plan,


18

human resource management system, financial potentials; other factors of individuals
such as: position, actual financial ability, time, support of family, ... Therefore, the
following researches can further exploit this problems.


19

LIST OF THE AUTHOR’S PUBLICATIONS
IN ASSOCIATION WITH THE THESIS
1. Vu Hong Van. 2015. “Improving quality of Vietnam’s labor force during the period of

international integration”, Journal of Science and Technology – Thai Nguyen
University, No 139 (09), 8/2015, pg.83-89. ISSN 1859-2171.
2. Vu Hong Van. 2016. “The Asean Economic Community and competitiveness of
Vietnam’s labor force”, Journal of Science and Technology – Thai Nguyen University,
No.154(09), 7/2016, pg.101-107. ISSN1859-2171.
3. Vu Hong Van, Luong Thi Mai Uyen. 2017. “Solutions for enhancing competitive
capability of mechanical industry during the period of integration”, Indian and Asian
Studies, No.56, 7/2017, pg.1-11, ISSN 0866-7314.
4. Vu Hong Van. 2018. “Human resources Development in Thai Nguyen mechanical
enterprises – From the view of business owners”, Economy and Forecast Review, No.9,
3/2018, pg.31-34. ISSN 0866-7120.
5. Vu Hong Van. 2018. “Solutions for human resource development of Mechanical
enterprises in Vietnam”, 9th NEU-KKU International Conference on Socio-Economic
and Environmental Issues in Development, Hanoi National Economics University,
5/2018, pg.886-896, ISBN 9786046535294.
6. Vu Hong Van. 2018. “Requirements of Human Resource in Vietnamese Mechanical
Industry in the context of Industry 4.0”, International Conference: Business Subtainability
in the context of Industry 4.0, Hanoi National Economics University, 9/2018, pg.282293, ISBN 9786046533611.
7. Vu Hong Van, Dinh Ngoc Lan. 2018. “Factors affecting Human Resorce Development
in Mechanical Enterprices in Vietnam”, Internatinal Journal of Management Excellence,
Vol 12.No1, pg.1774-1782. ISSN 2292-1648.