Giải pháp phát triển nguồn nhân lực quản trị tập đoàn công nghiệp cao su việt nam tt tiếng anh

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INTRODUCTION
1. Rationale
Economic groups play an important role in the economy thanks to huge
resources such as human resources, capital, facilities, technology, and
markets, etc., which lead to their economies of scale and major products and
expansive coordination with domestic and foreign enterprises to make better
use of their resources and brands. From those, they can have higher
efficiency and competitiveness in the integration context. Economic groups
are able to adopt, apply and deploy modern technologies and transfer them to
their member companies at low costs to implement their development
strategies. Economic groups have made great contributions to the
development of the national economy, and narrowed the gaps with
developed countries. However, in order to fulfill that role, economic groups
are required to have high quality human resources, in which management at
all levels play an essential role in developing the groups leading to the
importance of managerial human resource development in economic groups.
State-owned economic groups in Vietnam are established by the State
with the aim to be the leading force to guide the economic development
based on restructuring state-owned corporations, including Vietnam Rubber
Group. The State manages economic groups by approving, implementing
and controlling the execution of strategies, planning, policies, development
plans, group charter and managing documents on top executives, capital and
assets, etc. In terms of managerial personnel in State-owned economic
groups, the Government, and relevant ministries and agencies manage the
planning, policies and plans on personnel development, employment,
appointment, shuffling, training and remuneration, etc.
Over the past few years, under the Government regulations, Ministry of
Agriculture and Rural Development (MARD), the direct management body of
Vietnam Rubber Group, has coordinated with Ministry of Internal Affairs,
Ministry of Planning and Investment, Ministry of Finance and relevant agencies

to implement planning, policies, and plans on the development, training,
education and remuneration for managerial human resources, to ensure and
develop the managerial personnel for economic groups. However, there have
been limitations on some regulations on standards and procedures of planning,
appointment, training, education, pay and rewards, etc. Besides, there have been
some shortcomings in implementing and monitoring the implementation of these
regulations by the State administration agencies, so managerial human resources
of economic groups, particularly top managerial human resources under the
management of the State still have limited managerial competency and


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inadequate succession planning for top management, especially in the context of
international competition and integration. Therefore, it is necessary to have
changes and adjustments in controlling the development of managerial human
resources from the perspectives of State administration and management of
managerial human resources inVietnam Rubber Group in the context of
corporate equitization and modernization.
There have not been any in-depth studies covering major aspects of
State administration in developing corporate managerial human resources in
economic groups in general and Vietnam Rubber Group in particular.
Therefore, the author selected the topic “Solutions for Developing
Managerial Human Resources in Vietnam Rubber Group” for his dissertation
with the aims to perfect and clarify theories and suggest solutions for
developing managerial human resources in Vietnam Rubber Group (from the
perspectives of State administration and management of Vietnam Rubber
Group under management hierarchy) in order to meet the need for
development of Vietnam Rubber Group in the coming time.
2. Aims and tasks of the research
The dissertation aims to systematize and clarify theories on

managerial human resources development in Vietnam Rubber Group under
the economic management approach; analyze and evaluate the current
situation of managerial human resource development in Vietnam Rubber
Group, then make some major recommendations on managerial human
resource development in Vietnam Rubber Group (with the focus on top
executives and middle managers under succession planning who are
managed by the direct State administration agency) in the period to 2025.
The research tasks are as follows:
First, summarizing theories, clarifying the concepts on developing
managerial human resources in economic groups, studying practices in similar
countries in the development of managerial human resources in economic
groups and drawing lessons for Vietnam Rubber Group.
Second, based on the theoretical background, stating the features of
managerial human resources and the current situation of managerial human
resource development in Vietnam Rubber Group under the State control;
identifying achievements, limitations, causes and issues of managerial human
resource development in Vietnam Rubber Group.
Third, on the basis of the development orientation and goals of
Vietnam Rubber Group, establishing some targets and requirements for
managerial human resource development in Vietnam Rubber Group; make
some major recommendations on managerial human resource development


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in Vietnam Rubber Group, with the focus on planning, development plans,
policies on planning, employing, training and rewarding state-controlled
managerial human resources.
3. Research questions
Research questions: (1) What are State-owned economic groups? What
are the features of State-owned economic groups? How do they affect the

State administration of their managerial human resources? (2) What is
developing managerial human resources of economic groups under the
economic management approach? (3) What are the contents and activities of
managerial human resource development in State-owned economic groups?
(4) What are the determinants of managerial human resource development in
State-owned economic groups? (5) What are the achievements, limitations
and causes in the managerial human resource development in Vietnam
Rubber Group? (6) What should State administration agencies and Vietnam
Rubber Group do to development managerial human resources to meet the
need for development of Vietnam Rubber Group?
4. Subject and scope of the research
Research subject: Theories and practices of managerial human resource
development in Vietnam Rubber Group.
Research scope:
Content: The dissertation studies the development of managerial human
resources at top and middle level (current executives and managers under
succession planning for top positions) in Vietnam Rubber Group. The
development of managerial human resources mainly focuses on improving
the quality of managerial human resources through the planning, policies and
plans for developing managerial human resources (under the control of the
direct State administration agency) of Vietnam Rubber Group. Development
policies for managerial human resources center on planning, training and
remuneration, which are major tools of the State to monitor and develop
managerial human resources of State-owned economic groups and
particularly Vietnam Rubber Group.
Space: The study is done in Vietnam Rubber Group (including the
parent company and member companies under Vietnam Rubber Group)
and State administration agencies related to the management of its
managerial human resources.
Time: The research uses primary and secondary data on managerial

human resource development in Vietnam Rubber Group from 2016 to now
and suggests recommendations for the period to 2025.
5. Contributions of the dissertation


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In theory: Building the theoretical framework on developing managerial
human resources in economic groups by summarizing and clarifying issues on
managerial human resources and its development; the development activities and
criteria for managerial human resources in economic groups and major
determinants of managerial human resource development in economic groups
under the economic management approach; studying practices of managerial
human resource development in economic groups in some countries and drawing
lessons on developing managerial human resources in economic groups.
In practice: making 10 groups of solutions for managerial human resource
development in Vietnam Rubber Group: (1) The State instructs the formulation
and implementation of managerial human resource development, inspects and
supervises the strategy implementation by tools of planning, policies and plans on
managerial human resource development in Vietnam Rubber Group through the
representative of the state capital in the Group, (2) The State enhances
decentralization and authority for its representative at the Group in monitoring
managerial human resource development in economic groups, especially postequitization, (3) The State and Vietnam Rubber Group should specify standards for
top management for State-controlled personnel in appraising, planning and
appointing top managerial personnel in Vietnam Rubber Group, (4) The State
gives instructions to Vietnam Rubber Group through its equity representative to
perfect the regulations on appraising managerial personnel for planning and
appointing top executives in Vietnam Rubber Group to ensure accuracy and avoid
loopholes, (5) The State should improve the procedure for planning top managerial
human resources for its representative at Vietnam Rubber Group, (6) The State
should issue policies on managerial human resource training and development in

economic groups, Vietnam Rubber Group should specify the State policies by
building and implementing plans on the managerial human resource training
development in economic groups, (7) The State should develop training facilities,
competence of training management and teachers for educating corporate
executives in economic groups and Vietnam Rubber Group in particular, (8) The
State and Vietnam Rubber Group need to perfect policies and plans on financial
rewards for managerial human resources in Vietnam Rubber Group to motivate
and facilitate the development of its managerial human resources, (9) Vietnam
Rubber Group need to boost the training for its middle management, the main
source for developing its top executives, (10) Vietnam Rubber Group should have
sufficient budget for training its managerial human resources, especially in
leadership, management skills and knowledge on corporate modernization.
6. Structure of the dissertation
The dissertation is divided into 4 chapters:


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Chapter 1: Literature review and methodology.
Chapter 2: Fundamental theories on development of managerial human
resources in economic groups.
Chapter 3: Current situation of managerial human resource development
in Vietnam Rubber Group.
Chapter 4: Orientation and solutions for managerial human resource
development in Vietnam Rubber Group.
CHAPTER 1
LITERATURE REVIEW AND METHODOLOGY
1.1. Literature review
1.1.1. Corporations, Economic groups, State-owned economic groups and
State administration on State-owned economic groups
Corporations are groups of enterprises including a parent company,

subsidiaries and affiliated businesses. The parent company is the center that
links its members and affiliated businesses. Economic groups can be owned by
the State, individuals or families. State-owned economic groups are
established by the State, in which the parent company is a one-member limited
liability with 100% chartered capital held by the State. State administration on
State-owned economic groups is executed by the ownership of equity in the
groups and supervision by the inspection, audit, statements of Board of
Directors of the parent company and regulations on management of the parent
company.
1.1.2. Managerial human resources, managerial human resource
development in economic groups, and enterprises
Managers, managerial human resources in economic groups and
enterprises:
Corporate managers are those who perform managerial tasks. There are
two types of managers, including strategic managers and operating managers
with three levels of top, middle and first-line. The total force of corporate
managers is defined as managerial human resources of the groups.
Managers, managerial human resources in economic groups and
enterprises:
- Under the management approach to corporate managerial human
resource development and under State administration approach to
corporate managerial human resource development, some studies
suggested macro-solutions such as reforming State administration,
improving State administration policies and instruments the development
of human resources, high quality resources and talents.


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- From the economic, human resource management approach,
researches on theories and practices clarified the concept of human

resource development in corporations under personal view, i.e. improving
physical strength, knowledge, skills and qualities to better meet the
requirements of the positions, titles and jobs; from social view, it is the
change in size, quality and appropriate structure to fulfill the employment
demand; solutions on human resources focus on training and shuffling.
- Under State administration approach and other approaches related to
managerial human resource development from State administration
perspective: Some studies on managerial human resource development in
State-owned economic groups presented the exercise of State administration
functions and control of managerial human resources, but mainly State
administration by legal regulations, policies on managerial human resources,
especially top manager, including Chairman, members of Board of Directors,
president, vice president, supervisors, etc. A few studies mentioned State
administration for managerial human resource development in economic
groups, directors of state-owned enterprises at provincial level, etc. in which
the State formulated and implemented strategies, planning, policies, plans
and programs on managerial human resource development, but mainly
measures of training and policies such as creating sources, attracting,
recruiting, employing, rewarding and creating active working environment.
Research gap, adoption and new contribution of the dissertation:
Research gap: Although there have been quite many studies on
economic groups, operations and management of State-owned economic
groups, and corporate managerial human resources development, there is a
lack of full and updated research on the development of managerial human
resources at top and middle level in State-owned economic groups and on
managerial human resource development in Vietnam Rubber Group since
2016 under the economic management approach. Specifically:
- They have not clarified the role of the State in controlling
managerial human resources in State-owned economic groups.
- The previous studies have not specified managerial human resources

and managerial human resources at top level in corporations, so they have
not focused on the top and middle managers in groups.
- Regarding State administration instruments for managerial human
resource development, the studies have not updated State administration in
planning, policies on managerial human resource development in economic
groups, especially State administration in developing managerial human
resources in Vietnam Rubber Group; there have not been any solutions on


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managerial human resource development in Vietnam Rubber Group for
managers under the control of State administration agencies. Therefore, the
author selected the topic “Solutions for Developing Managerial Human
Resources in Vietnam Rubber Group” for his dissertation.
The adoption and new contribution of the dissertation: The
dissertation clarifies the concepts, definitions, issues and operations of
State administration in developing managerial human resources in Stateowned economic groups in Vietnam, in which the State plays a major role
in managerial human resource development in economic groups through
the organization of parent company as the main controller of corporate
managerial human resources. Particularly:
- State administration instruments for managerial personnel in Stateowned economic groups and Vietnam Rubber Group are legal regulations,
policies, plans and programs on managerial human resource development
in economic groups.
- Legal regulations, policies, plans and programs on managerial human
resource development in economic groups are implemented by State
administration agencies as well as the management of the parent company.
The dissertation builds the theoretical framework on managerial human
resource development in economic groups, with some concepts, issues and
practices of managerial human resource development in economic groups
from economic management approach; studies practices of managerial human

resource development in economic groups in some countries and draws
lessons for developing managerial human resources in economic groups.
The author collect updated primary and secondary data and uses data
analysis tools to evaluate the current situation of managerial human resource
development in Vietnam Rubber Group to build the practical ground for
suggesting solutions. The dissertation suggests ten practical solutions on
managerial human resource development in Vietnam Rubber Group.
There have been many studies on economic groups, business and
management of State-owned economic groups, corporate managerial human
resources development, but there has been no specific study on managerial
human resource development in Vietnam Rubber Group under economic
management approach with details on State administration instruments for
managerial human resource development in economic groups. Therefore, the
author selected the topic “Solutions for Developing Managerial Human
Resources in Vietnam Rubber Group” for his dissertation.
1.2. Methodology
1.2.1. Research approach


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The dissertation takes the economic management approach: It studies
State administration instruments to develop managerial human resources in
State-owned economic groups, namely, legal regulations, policies, plans
and programs on managerial human resource development in economic
groups and corporation activities for developing managerial human
resources at top level under the State decentralization.
The dissertation limits the research subject to the development of
corporate managerial human resources at top level, including: Current top
managers and managers under the succession planning for top level.
1.2.2. Research process

The study is conducted in this process from identifying research aims to
suggesting implications on policies.
1.2.3. Data collect
Secondary data: Materials, coursebooks, ministry-level projects,
articles on trade journals, national and international conference proceedings
on State administration, corporate human resource management and
controlling managerial human resources in economic groups. Secondary data
on Vietnam Rubber Group is mainly collected from the organizing division
of the group and member companies, including regulations on charters,
organization, human resources, development of managerial human resources
of the group and member companies at top level; the implementation of
plans, policies and results; resources, business results of Vietnam Rubber
Group; the corporate governance through reports filed in the relevant
departments of the group and members.
Primary data: Questionnaire and interview.
Questionnaire: Participants are top and middle managers under
succession planning for top level; and those who involve in planning and
appointing managerial human resources at top level of the group.
Questionnaires are given to participants (154 people).
Interview: Participants are leaders of State administration agencies
regulating Vietnam Rubber Group, including Ministry of Agriculture and Rural
Development, Ministry of Internal Affairs and consulting agencies for Prime
Minister on the development of managerial human resources at top level in
Vietnam Rubber Group. The interviews focus on advantages, limitations and
their causes in laws, policies, plans and programs on development of managerial
human resources at top level in Vietnam Rubber Group (17 people).
1.2.4. Data analysis
The author uses the analysis, synthesis and generalization to analyze,
interpret and summarize theoretical and practical issues on managerial human

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resource development in economic groups, with a focus on managerial human
resources at top level of the group, including the current and potential top
managers and draw lessons on developing managerial human resources at top
level in Vietnam Rubber Group, then suggest feasible solutions.
Descriptive statistics is used to systematize the factors affecting the
development of top managerial human resources, analyze and evaluate
primary data on issues and activities of managerial human resource
development in Vietnam Rubber Group.
CHAPTER 2
FUNDAMENTAL THEORIES ON DEVELOPMENT OF
MANAGERIAL HUMAN RESOURCES IN ECONOMIC GROUPS
2.1. Economic groups, State-owned economic groups and roles of
State-owned economic groups
2.1.1. Definitions and features of Economic groups, State-owned economic
groups
Definitions and features economic groups: According to the author,
Economic groups are groups of companies connected by stock ownership,
equity or others. Economic groups are not a type of businesses, so they are
not a legal entity. Economic groups consist of a parent company,
subsidiaries and other member companies. The parent company,
subsidiaries and each member company in economic groups have the rights
and duties of independent businesses under legal regulations.
Definitions and features of State-owned economic groups:
State-owned economic groups in Vietnam are groups of companies
including a parent company, subsidiaries and affiliated businesses; the
corporations are not legal entities, but their parent companies are; parent
companies have huge capital owned by the State or with controlling stake of
the State. They operate in many sectors with large size. The State manages

State-owned economic groups by establishing, dissolving, reorganizing,
changing the equity rate, approving the corporate charters, regulations,
appointing, dismissing corporate managers, approving plans and issuing
policies, supervising the implementation by direct checks or reporting scheme.
2.1.2. Roles of State-owned economic groups
First, State-owned economic groups play a significant role in the
process of industrialization and modernization in Vietnam. It is important to
build up State-owned economic groups to protect domestic production against
the competition of foreign companies and expand in the world market.


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Second, State-owned economic groups have the economies of scale in
terms of organization and technologies that overcome the limited resources
of individual company.
Third, State-owned economic groups can enhance research and
development (R&D), application of new technologies to production.
Fourth, the formation of State-owned economic groups helps improve
management efficiency, utilize economies of scale and apply specialization to
diversified business and separate State administration from business management.
2.2. Managerial personnel and development of managerial human
resources in State-owned economic groups
2.2.1. Definitions of human resources, human resource development
In the author’s opinion, human resources are the power of each person
and consist of three factors, namely, physical strength, mental strength,
qualities/ attitudes to ensure the creation of material and spiritual wealth for
the society. Under social view, human resources of a company are the groups
of workers who have sufficient physical and mental strength and willingness
to work for that organization.
Human resource development is to increase in number, improve the

quality and adjust the structure to meet the need for human resources to
efficiently achieve socio-economic objectives.
2.2.2. Definitions of managerial human resources and development of
managerial human resources in Economic groups
Under social view, managerial human resources of an organization are
groups of managers with sufficient physical, mental strengths and
qualifications to fulfill managerial tasks in the management system.
Development of managerial human resources in economic groups is to
increase in number, improve the quality and ensure the appropriate structure
to meet the requirements for management at all levels in economic groups.
2.2.3. Issues on development of managerial human resources in
economic groups
Objectives of controlling the development of managerial human
resources in Economic groups:
It is important to ensure sufficient number and structure of managerial
human resources in economic groups: (i) The group and member companies
should have plans for developing managerial human resources from the
current workforce, (ii) The group should deploy strategies to attract
managerial human resources from external sources or shuffle managers
among member companies. The development activities have to be based on
the required scale and structure of management at all levels.


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Developing managerial human resources in terms of quality is to
improve the physical strength and managerial competence (knowledge, skills
and professional proficiency) of managers at different levels and divisions in
economic groups.
State administration in the development of managerial human resources
in State-owned economic groups:

From the perspective of State administration, State administration agencies
manage the development of top managerial human resources, managers at lower
levels are managed by the group and its member companies.
As Vietnam Rubber Group has not had strategies for business and human
resources as well as managerial human resources, the dissertation focuses on
studying the current State administration instruments for managerial human
resources in Vietnam Rubber Group including planning, policies and plans for
managerial human resource development in economic groups.
- Planning for top managerial human resource development include (i)
Requirements of human resource planning, (ii) Issues of planning, (iii)
Procedures of planning corporate managerial personnel of the group and
member companies.
- Policies on development of managerial human resources: The State
policies on corporate managerial human resources consist of planning,
recruitment, training, development and remuneration.
- Plans and programs on managerial human resource development in
economic groups: State administration agencies should build shorter-term
plans and programs on managerial human resource development in
economic groups, during 1 - 2 years.
2.2.4. Criteria for managerial human resource development in Vietnam
Rubber Group
Regarding State administration in different economic sectors, the author
uses 4 criteria: (i) Efficiency, (ii) Effectiveness, (iii) Relevance, (iv)
Sustainability.
2.3. Factors affecting the development of managerial human resources
in State-owned economic groups
2.3.1. External factors
Macro-environment: Macro-economic factors such as economic
growth, recession, transitions, strategies and policies on economic, political,
cultural development and integration have great impacts on the business and

corporate governance, thus affect the requirements for competence and
qualities of corporate managers, managerial personnel and corporate
managerial personnel markets.


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Industry: In the market economy, the competition for managerial
personnel among corporations is fierce because of the decisive role of
managerial human resources in the success and failure of companies. The
success in production mainly depends on the ability to attract managerial
personnel by attraction, employment and remuneration policies for
managerial human resources of the State and State-owned economic groups.
Training system: The training system for managerial human resources
influences the number, quality and structure of trained managers; the training
capacity of the system decides the competence of the management and the
fulfillment of requirements for corporate governance in the highly
competitive environment.
2.3.2. Internal factors
Features of State-owned economic groups: Business sectors, products,
markets and competition can have great effects on the managerial human
resource development in economic groups. Therefore, the corporate
managers have to be professionally trained in the management of their own
areas. Activities for developing managerial human resources from
sourcing, planning, recruitment, training, development and rewards have to
focus on the business sectors of the group and take place systematically.
Strategy and policy on managerial human resource development in
State-owned economic groups: Strategies for developing corporate human
resources and managerial human resources in economic groups are longterm plans for the development of managerial human resources, which are
formulated and approved by the State to ensure the implementation of
business strategies. The formulation and implementation of strategies on

managerial human resources can decide the success of the corporate
management. Policies on managerial human resource development and
detailed plans are important to implement the strategies on managerial
human resource development in economic groups.
Perception of top executives towards managerial human resource
development: Perception of top executives towards managerial human
resource development in economic groups plays an important role in
allocating resources, formulating strategies and making right decisions on
the managerial human resource development at present and in the future.
Competence of the existing corporate management: Competence of
the existing corporate managers can have an effect on the managerial
human resource development in economic groups. In case the competence
is good, the State and the group can save money on training, or vice versa.
Size and financial resources of the group: Corporations with large


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scale, multi-sector business and fierce competition require large investment
in managerial human resource development in economic groups.
2.4. Practices of human resource development in some countries and
lessons for Vietnam Rubber Group
2.4.1. Experiences of some countries and corporations
In the US: There are development strategies for high quality human
resources, especially managerial personnel. The U.S. human resource
strategies focus on training and acquiring talents.
In Japan: There are incentives in training, recruiting and using high quality
personnel. Japan encourages workers’ initiatives, creates good working
environment and conditions and provides advanced knowledge, technology
and know-how.
In Singapore: It aims to develop the economy based on high quality

human resources, in which the Government formulate and implement
strategies for high quality human resource development.
In China: It pays attention to strategies on human resource
development, especially high quality personnel. It considers human
resources the leading factor and issue education strategies for building
China and national policies to build a learning society.
Practices of Samsung: It actively training corporate top personnel.
Samsung designs suitable training programs for different positions,
qualification and requirements of international business environment to
implement corporate development strategies.
Practices of Toyota: It formulates and implements managerial human
resource development strategies based on the maximum competence of
each manager; specific standards of each management level, the operating
conditions of the managers to build typical training programs for different
types of trainees, positions and job titles.
2.4.2. Lessons on managerial human resource development in Vietnam
Rubber Group
For State administration: The State needs to motivate the development of
education institutes for training managerial human resources at different levels;
specify instructions which see human resource training, especially managerial
personnel as the most important task. It is necessary to attract foreign
investments into training, call for investments from corporations, enterprises
and individuals for training managerial personnel. The State should offer more
authority and accountability to corporations in formulating strategies on
developing human resources and managerial human resource in economic
groups. It is important to specify standards for managers into typical criteria


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for each job titles, planning, appointment and appraisal of corporate managers.

There should be required budget for training in the corporations (certain
percentage of the expenses). It is vital to attract talents and experts for training
and corporations from countries in the world by immigration and talent
attraction policies; retain managerial talents by remuneration, good working
environment and compensation including those with master degrees from
developed countries; encourage overseas study. It is needed to grant the
authority and accountability to the group chairman; the State only issues
instructions and policies on managerial human resource development and
guidance and supervision.
For economic groups in Vietnam: It is essential to build specific
criteria for each managerial positions, create competitive environment for
human resources, implement training programs for managers, organize
training by managerial tasks, allocate sufficient budget to training
managers at all levels, and issues better policies to attract managerial
talents from the labor market.
CHAPTER 3
CURRENT SITUATION OF MANAGERIAL HUMAN RESOURCE
DEVELOPMENT IN VIETNAM RUBBER GROUP
3.1. Overview on Vietnam Rubber Group and managerial human
resources
3.1.1. Establishment and development of Vietnam Rubber Group
It was originally Southern Rubber Department, then reformed into
Rubber Division and to Vietnam Rubber Corporation. In 2006, it was piloted
to form Vietnam Rubber Group and the parent company – Vietnam Rubber
Group, then the State-owned one-member limited liability company. In June
2018, the parent company was equitized to become Vietnam Rubber Group –
a joint stock company.
3.1.2. Functions, tasks and organizational structure of Vietnam Rubber
Group
Before 2018, Vietnam Rubber Group consisted of 127 units, namely

the parent company, 4 general companies and 122 companies operating in
such fields as planting and processing rubber latex, processing wood,
industrial zones, rubber industry, hydro-power, banking, securities,
facilities, warehousing and real estate, etc.
Functions, tasks and structure of parent company: The parent
company is controlled and operated under the Charter by Board of
Directors, Supervisory Board and Executive Management Board. Its
functions, tasks and authorities are stated in Decree No. 28/2014/ND-CP


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and organized into Board of Directors, Supervisory Board and Executive
Management Board and functional departments.
Organizational chart and operations of the group: Shareholders’
meeting, Supervisory Board, Board of Directors, President Board,
functional departments and member units.
3.1.3. Overview on resources of Vietnam Rubber Group
Capital and facilities: By 2018, the total area of rubber forests was
407,997.36 hectares; the total State capital reached nearly VND36,500
billion; investments in infrastructure, facilities and equipment increased
steadily. In terms of equity, the audited value in 2018 was over VND40,000
billion.
Workforce: In 2018, the total workforce of the group was 81,771
including 39% of female, and 28.6% of ethnic minority.
3.1.4. Business performance of Vietnam Rubber Group
Business operations of the group during 2016-2018 focused on
unprocessed rubber products, with the highest percentage of rubber latex,
followed by processing wood products, rubber processing industry and services.
3.2. Current situation of managerial human resource development in
Vietnam Rubber Group

3.2.1. State administration for managerial human resources in Vietnam
Rubber Group
Functions, tasks, authority and organization of State administration
for managerial human resources in Vietnam Rubber Group before the
equitization of the parent company:
The Government controls the top corporate managerial human resources
and the managerial personnel under succession planning for top level by
establishing the group and appointing top corporate managerial human
resources; issuing the organization charter and operations, decrees and
decisions related to the jobholders in the one-member limited liability
company; guiding the development by approving plans and policies on the
development of top corporate managerial human resources. In order to control
the top managerial human resources in State-owned economic groups, the
State organizes the structure of State administration for top corporate human
resource development, which specifies the functions, tasks and authority of
each State agency in the system and Vietnam Rubber Group.
After the establishment of Commission for the Management of State
Capital at Enterprises and formation of Vietnam Rubber Group – a joint-stock
company:


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Since June 1, 2018, Vietnam Rubber Group has been equitized into a
state-controlled joint stock company with legal entity. The management is
performed by the Board of Directors with 7 members. Therefore, the key
managerial positions in Vietnam Rubber Group are still decided by the State.
State administration for managerial human resources in Vietnam
Rubber Group – a joint stock company: In February 2018, the Government set
up Commission for the Management of State Capital at Enterprises (CMSC) to
exercise rights and duties of representatives of state capital at enterprises. In

the organization of State administration for managerial human resources in
Vietnam Rubber Group, CMSC is the controller of the state capital Vietnam
Rubber Group through its representatives.
3.2.2. Impacts of factors on managerial human resource development in
Vietnam Rubber Group
Macro-environment factors: Vietnam Rubber Group was restructured
to operate in many sectors, so it is affected by the macro-environment
factors not only in Vietnam but in Laos and Cambodia where Vietnam
Rubber Group plants, exploits and processes rubber latex as well as
exports. Therefore, it is necessary to change policies on managerial human
resource development in the group and its members to meet the
requirements of restructuring and managerial competence.
Industry factors: Vietnam Rubber Group has recently faced some
competitors with great potentials of capital, technology, performance, high
product quality and great supply in the world market. The increasing
competition requires VRG to improve its technological application,
corporate governance and competence of the management. In the
management force of Vietnam Rubber Group 80% are not well-trained in
management and market economy and international integration with
limited language and IT skills, which lead to limitations in accessing
foreign partners and business regulations and policies in other countries,
export markets and technology transfer partners.
Training in domestic and international management training centers:
Most universities in economics and management have majors in
management, economic management and industrial economics, which
would facilitate the training for managerial knowledge, skills and practices.
However, most of them focus on training bachelors of business
administration, enterprise management or general management instead of
special programs for managers at all levels. The training courses for
managers are mainly made to order.

17
Business operations of Vietnam Rubber Group: Vietnam Rubber
Group operates in large scale and many sectors and the international
environment, so managers are required to have specialized knowledge and
skills to ensure the effective management. However, the corporate
managers have not been well trained, especially managerial knowledge,
skills and practices.
Managerial personnel policies of Vietnam Rubber Group: Managerial
personnel policies specify criteria on managerial experience and
qualification; methods and procedures of recruitment and appointment of
leading positions
Perception of top executives in Vietnam Rubber Group towards
managerial human resource development: In the interviews with the top
managers, they all appreciated the managerial personnel development and
top managerial personnel development in particular. However, they have
not paid adequate attention to the activities of developing top managerial
human resources. The group has not had any official strategies for
managerial human resource development; Training potential managers has
been limited in quality, especially the appraisal.
Current competence of managers in Vietnam Rubber Group: Most
managers in Vietnam Rubber Group and top executives have bachelor degrees,
but they have not been officially trained in management, management in the
market economy, language and IT skills are still limited.
Scale of Vietnam Rubber Group: Vietnam Rubber Group is a Stateowned economic group established from Vietnam Rubber Corporation with
the main operation in planting, exploiting, processing and exporting rubber
latex. The corporate managers have originally been managers at Vietnam
Rubber Corporation, so they still lack expertise and experience in managing a
large, multi-sector organization in the market economy.

Financial resources of Vietnam Rubber Group for managerial human
resource development: The budget for activities of managerial human resource
development is available, but the policies on financial assistance to training
managers are limited, which is reflected in the financial plans for training.
Remuneration for corporate managers is low compared to the market and
irrelevant to the performance of the managers.
3.2.3. Evaluation on the current situation of managerial human resource
development in Vietnam Rubber Group by secondary data
Quantity, quality and structure:


18
In terms of quantity, top management posts are now held by sufficient
number of managers. The planning source for top executives is in
accordance with regulations of State administration agencies.
In terms of quality, the current top executives can meet the standards for
top managers under regulations of State administration. Some potential
managers have not been well trained in management and operations in the
economy and international integration with limited language and IT skills.
In terms of structure, the current top managers and the planned source
for top management level are relevant to the regulations. The general and
operation managers have appropriate professional specialities, but their
competence has not been evaluated specifically and accurately. Therefore,
they have been relevant in quantity, but not in quality.
Development activities:
Top managerial personnel in Vietnam Rubber Group include chairman of
Board of Directors, directors, president, and vice presidents. From the view of
State administration, the Government, MARD and Ministry of Internal Affairs
have issued comprehensive management documents on the criteria and
procedure of planning for top managerial human resources. There are currently

23 middle managers in the succession planning for directors and 5 potential
managers as planned for a post in Supervisory Board. The planning and
approval procedures are quite strict, but the appraisal of managers has not been
done effectively; management regulating documents have not clarified the
responsibilities of different levels and individual managers in planning phases.
Policies and plans for managerial human resource development in
Vietnam Rubber Group include: Policies and implementation of planning and
employing top managerial human resources in Vietnam Rubber Group, in
general abide to the State regulations. The implementation of planning for
corporate managerial human resources in recent years has met the
requirements for corporate management, i.e. “dynamic” and “open” with the
focused and democratic style. However, the standards are general with the lack
of particular criteria for accurate evaluation and unclear regulations on the
responsibilities of different levels and individuals in planning.
Policies and plans on training managerial human resources in Vietnam
Rubber Group are regulated in many documents by the Government, MARD
and relevant agencies. MARD issues documents and implements the training
for managerial personnel and top managerial personnel in groups,
corporations and subsidiaries, including Vietnam Rubber Group.
Policies on financial remuneration for managerial human resources in
Vietnam Rubber Group: The State has regulations and decisions on pay,


19
compensation and rewards for state-owned enterprises, including groups,
corporations, state-owned companies, State-controlled joint stock
companies. The group builds its own pay system in relation to their
business sectors and conditions for typical periods and submits for the
approval of the supervising ministry with the evaluation of Ministry of
Labor, Invalids and Social Affairs. Accordingly, the average pay of

corporate managers is relatively low at VND36 million per month
(maximum VND108 million and minimum VND36 million per month as
regulated by the State).
3.2.4. Evaluation on the current situation of managerial human resource
development in Vietnam Rubber Group by primary data
To further clarify the situation of managerial human resource
development in Vietnam Rubber Group, the author conducted a research on
the sample, then analyzed data by SPSS with IPA model.
Data analysis by SPSS:
Managerial human resources whether or not under the succession
planning should require a development strategy while State administration
agency and Vietnam Rubber Group have not had a comprehensive strategy
for top managerial human resource development.
The appointment procedure of planned managerial personnel is quite
relevant, but the quality of planned managerial personnel is rated low. It is
attributed to unclear planning criteria leading to inaccurate evaluation of
management competence and limited implementation.
The completeness, transparency and relevance of the standards for
planning top managerial human resources are rated average. It shows that
the standards for planning top managerial human resources in Vietnam
Rubber Group are generally inadequate. It is due to the fact that the
governing ministry has not specified the standards for personnel and
limitations on the competence of human resource officers in specifying
government standards to Vietnam Rubber Group.
The clarity, transparency and completeness of the planning procedure
are rated at rather good, especially the implementation is appreciated at
high level. However, the quality of planning, the level organization,
components and number are evaluated average. It shows that the quality of
planning, level organization and components and frequency of planning are
not relatively high because there are many steps and organizations in

planning, but their responsibilities have not been stated clearly.
The quality, relevance and clarity of policies on top managerial human
resource development are evaluated rather good, but the policies on training


20
and development are not relevant. Therefore, Vietnam Rubber Group should
pay more attention to these policies in the coming time.
Data analysis by IPA:
Factors to improve consist of 12 factors including 3 in efficiency, 3 in
effectiveness, 1 in relevance and 5 in sustainability. From these, it is
possible to suggest solutions to improve their performance to ensure the
emphasis on important factors.
Factors to maintain include 7 factors with great importance and
performance, namely 3 in efficiency, 1 in effectiveness, 2 in relevance and
1 in sustainability. They are rather essential for managerial human resource
development in Vietnam Rubber Group under economic management
approach. Therefore, State administration agency should have specialized
division to maintain these factors.
Factors not to get many resources: There are two factors which are
low in importance but high in performance. With the limited financial and
personnel capacity for the economic management of managerial human
resource development in Vietnam Rubber Group, it is advisable not to
invest in these two factors.
Factors not to focus on: Under Kano model, there are 3 factors which
are low in both importance and performance including the implementation
of human resource attraction and recruitment policies in the rubber
industry; benefits of managerial human resource development for the
development of Vietnam Rubber Group; cost-saving possibilities for
Vietnam Rubber Group from the implementation of managerial human

resource development.
3.2.5. General evaluation on situation of State administration and
corporate governance managerial human resource development in
Vietnam Rubber Group
Achievements and reasons: Achievements: State administration in top
managerial human resource development has been performed systematically
by Government, ministries and agencies by issuing regulations on planning
human resource development, and training plans for top managerial human
resource development in Vietnam Rubber Group. The group has made
training plans for managerial personnel to improve the quality; managerial
human resources have been planned to fully meet the requirements of
planned positions; the competence of current top managerial human
resources have been improved. Reasons: State administration agencies from
Government to related agencies and Ministry of Agriculture and Rural
Development have been well-aware of the management of top managerial


21
human resource development; studied and issued relatively sufficient
policies; guided and monitored the implementation. Leaders of Vietnam
Rubber Group have had full perception and responsibility for implementing
the instructions of the supervisors and facilitating managerial human
resources at all levels to improve their knowledge and skills, including
current top managerial human resources and those under planning.
Limitations and causes: In terms of planning for managerial human
resource development in Vietnam Rubber Group: Some criteria in the job
title standards are still general, leading to difficulties in evaluating the
leadership and management competence; the quality of planned managerial
human resources and the relevance of the appointment procedure is not
very high due to the lack of specific criteria; despite many levels involving

in planning, they have unspecified responsibility and limited evaluation;
the implementation of managerial human resource development plans is
still ineffective (it would be better if the supervising ministry issues general
regulations on managers who need training, assistance and close
supervision on the implementation). In terms of policies on managerial
human resource development in Vietnam Rubber Group: The detailed
training policies of Ministry of Agriculture and Rural Development have
created opportunities for corporate managerial human resources to improve
their competence, but they have not focused on management knowledge,
skills and practices; the post-training employment and remuneration policy
are still limited. Remuneration policy (pay, bonus) is irrelevant to the labor
market with relative difference between corporate managers and workers,
which makes it hard to attract, maintain and development competent
managers with sufficient motivation. In terms of plans on managerial
human resource development in Vietnam Rubber Group: The biggest
problem in training human resources is identifying training needs of
corporate managerial human resources. The group and its members have
mainly identified the needs based on inadequate standards for the
professional development of managers; State administration agencies and
corporate management have not specified the appraisal of managerial
human resources, and the appreciation of training and education results;
State administration agencies and corporate management have not paid
enough attention to the role of training results in planning, appointment
and compensation, the productivity, quality and performance of individual
managers after training, which leads to the negligence of managers towards
self-learning. The compensation system has not been built on work-related
performance. Therefore, the state and group should change their thinking


22

and build remuneration policy suitable for the market and related to
employee performance and competition.
Kano – IPA analysis on the importance and performance of the criteria
reveals the factors that need improving. State administration agencies and
Vietnam Rubber Group need to formulate strategies for development of
human resources and corporate managerial human resources – the key
factor to ensure the success in corporate governance. It is important to
improve factors on support to the parent company and its members in
training managerial human resources, building remuneration policy and
ensuring its feasibility. It is necessary to actively train managerial human
resources with sufficient number, quality and suitable structure in
according with the management requirements, especially managerial
human resources with relevant competence, qualities and diversified
educational background, and look for managerial human resources from
domestic and international markets.
CHAPTER 4
ORIENTATION AND SOLUTIONS ON MANAGERIAL HUMAN
RESOURCE DEVELOPMENT IN VIETNAM RUBBER GROUP
4.1. Development orientation and managerial human resource
development
4.1.1. Development orientation of Vietnam Rubber Group
Under the proposal approved by the Government, VRG has
implemented the equitization of the parent company and some member
companies and rearranged the ownership of its members as well as
restructuring the shareholders.
4.1.2. Context and issues on managerial human resource development in
Vietnam Rubber Group
Human resource development, particularly managerial human resource
development, is one of the strategic decisions. Although Vietnam Rubber
Group is a great economic organization with important role in the socioeconomic development and national defense, its business performance has

not been up to expectations due to limited management competence and
corporate managerial human resources. Limitations on management
competence have resulted from State administration and corporate
governance on managerial human resource development from planning,
plans and programs of managerial human resource development. In the
context of increasing competition, the fourth industrial revolution and the
corporate business, the need for equitization has become more urgent.


23
4.1.3. Orientation for managerial human resource development in
Vietnam Rubber Group
Developing managerial human resources by reviewing and planning
top managerial human resources in Vietnam Rubber Group is to ensure that
they can fulfill management tasks and focus on the key businesses. It is
needed to guarantee suitable number, structure and quality and planning for
top managerial human resources. It is necessary to provide corporate
governance knowledge and skills in the context of market economy and
international integration and practices of management in joint-stock
companies. State administration for the group organization and top
managerial human resources only focuses on the representative of the state
capital in the group. The State only interferes into the corporate decisions
through the representatives instead of direct intervention. In the training
policy for top managerial human resources, the State should only pay
attention to its representatives. The State needs to improve the number and
quality of corporate managerial human resources, with the suitable
structure to build relevant remuneration policy.
4.2. Major solutions on managerial human resource development in
Vietnam Rubber Group
Although Vietnam Rubber Group has become a joint stock company, the

State still holds the controlling stake (over 90% of its equity). Therefore the State
and state-appointed managers in Vietnam Rubber Group need to make policies
on managerial human resource development to have significant competence and
qualities so as to realize the state development orientation as follows:
4.2.1. The State guides the formulation and implementation of strategies on
managerial human resource development, inspects and monitors the
implementation by measures of planning, policies, plans on managerial
human resource development in Vietnam Rubber Group through the
representative of the State capital
4.2.2. The State enhances decentralization and authority for its
representatives in controlling managerial human resource development in
economic groups, especially post-equitization
4.2.3. The State and Vietnam Rubber Group need to specify standards for
top management titles under State control into detailed criteria in
appraising, planning, and appointing top managerial personnel in Vietnam
Rubber Group
4.2.4. The State directs Vietnam Rubber Group through its representatives to
perfect regulations on appraisal of managerial personnel for planning and


24
appointing top managerial personnel in Vietnam Rubber Group, to ensure
accuracy and avoid loopholes
4.2.5. The State should improve the procedure for planning top managerial
human resources for its representatives at Vietnam Rubber Group
4.2.6. The State issues policies on managerial human resource training and
development; Vietnam Rubber Group specifies State policies into programs
for managerial human resource training and development
4.2.7. The State needs to develop training facilities, management and
teachers for corporate managers and Vietnam Rubber Group

4.2.8. The State and Vietnam Rubber Group should make relevant financial
remuneration policies for managerial human resources to create motivation
and conditions managerial human resource development
4.2.9. Vietnam Rubber Group should enhance training for middle managers
or equivalent as the key source for potential top management
4.2.10. Vietnam Rubber Group needs to allocate sufficient budget to training
corporate managerial human resources, especially in leadership,
competence, knowledge and practices of corporate governance
CONCLUSION
State-owned economic groups are a new form of business with large size,
and multi-sector operations. Originally a State corporation, the group has faced a
lot of difficulties in management as well as State administration for State-owned
economic groups. Top managerial human resources play a decisive role to the
corporate performance, thus State administration for top managerial human
resource development has been appreciated. The State administration for top
managerial human resource development in Vietnam Rubber Group has seen
certain positive development, but there still exist some limitations. Top
management of State-owned economic groups and Vietnam Rubber Group has
revealed their weaknesses in competence, experience and fulfillment of the State
orientation for the development of Vietnam Rubber Group in the next few years.
Therefore, it is required to have useful solutions on State administration for top
managerial human resource development in Vietnam Rubber Group. The
dissertation builds the theoretical background on managerial human resource
development in economic groups as a basis for evaluating full and accurately the
situation of managerial human resource development in Vietnam Rubber Group
under the State control, presents reliable conclusions for suggesting solutions on
managerial human resource development. Research data was widely collected
from reliable primary and secondary sources and analyzed by latest models.
Based on the research findings, the author suggests 10 major groups of solutions

25
to apply to State administration for managerial human resource development in
Vietnam Rubber Group by 2025./.