Nghiên cứu xây dựng chiến lược phát triển công ty cổ phần vận tải đường sắt sài gòn tt tieng anh

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF TRANSPORT AND COMMUNICATIONS

PHAM QUANG TU

RESEARCH ON BUILDING
DEVELOPMENT STRATEGIES FOR SAI GON
RAILWAY TRANSPORT JOINT STOCK
COMPANY

Major: Transport Organization and Management
Code: 9.84.01.03

SUMMARY OF PHD THESIS IN ECONOMICS

HANOI - 2020


Institution:
UNIVERSITY OF TRANSPORT AND COMMUNICATIONS
Supervisor:

1. Prof.Dr.Sc. Nguyen Huu Ha
2. Assoc.Prof.Ph.Dr. Nguyen Thi Hong Hanh rof. Dr.
Nguyen Thi Hong Hanh
Opponent 1: Prof.Ph.Dr. Bui Xuan Phong
Opponent 2: Assoc.Prof.Ph.Dr. Do Huu Tung
Opponent 3: Dr. Tran Minh Phuong

The dissertation is defended before the Dissertation Appraisal
Council with meeting at University of Transport and

Communications at
dated
20 .....

The dissertation is available at:
- National Library of Vietnam
- Information & Library Center, University of Transport and
Communications


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PREAMBLE
1. Rationale
Sai Gon Railway Transport Joint Stock Company (SARATRANS) has
operated under the model of joint stock company. In the equitization context,
it is essential to formulate Development Strategy for railway transport
company: Firstly, from approval of the Development Strategy of Vietnam
Railway Industry, no railway transport enterprise has had Development
Strategy; Secondly, due to change of the owners of Railway Transport
Enterprises, “new owners” need new Development Strategy for their
enterprise; Thirdly, the production and business of the railway transport
industry is facing many difficulties in decrease of output, revenue, and
market share, thus, enterprises need to seek the right direction by strategic
direction. Therefore, it is essential to research and formulate the
Development Strategy of Vietnam Railway Transport Enterprises, including
SARATRANS, meeting the needs of practice and scientific research.
2. Research Objectives
The research purpose of the dissertation is to propose the SARATRANS
Development Strategy for the period up to 2025, with a vision to 2030.
Specific targets: Continue to study, supplement and clarify the theoretical

basis for the formulation of the Development Strategy for equitized railway
transport enterprise; make full, objective and science- based analysis and
assessment of the production and business environment of SARATRANS;
propose to select SARATRANS Development Strategy up to 2025, with a
vision to 2030.
3. Objects of Research
The object of the dissertation research is issues related to the formulation
of the Development Strategy of Vietnam and the world railway transport
enterprises.
4. Scope of Research
Content: The dissertation focuses on researching basic scientific
arguments to develop the Railway Transport Enterprise Development
Strategy.
Space: The dissertation focuses on researching and formulating the
Development Strategy of SARATRANS associated with the operating
environment and the context of new joint stock enterprises in the current
environment.
Time: The dissertation assesses the current status of environmental
factors in the period 2016-2019; build a scientific foundation to define the
Development Strategy of SARATRANS and propose solutions to implement
the strategy for the period until 2025 with orientation to 2030.
5. Research question
The theoretical basis for the formulation of the Development Strategy of


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the Railway Transport Enterprise still has issues to be clarified,
supplemented and improved to suit the current production and business
environment. What are the principles, the grounds? What are the order and
content of Enterprise Development Strategy formulation steps? What are the

appropriate methods and tools to formulate Development Strategy? How is
the production and business environment of the Company in the research
period? What is the basis of the proposed Development Strategy for
SARATRANS?
6. Research Methods
On the basis of the methodology of dialectical materialism and historical
materialism, the dissertation uses some of the following main methods:
Inheritance method; Qualitative method; Document research method applied for
scientific works, published theoretical basis on Development Strategy of
domestic and foreign authors; Statistical - comparison method; Methods of
analysis - synthesis; Oriented Research method.
Sample investigation and professional method: Investigations, surveys
and consultation with experts is implemented in 3 phases in 2017, 2019 and
2020, with the following subjects: Leaders of all levels of SARATRANS
(from deputy head of department and equivalent at the branch level upwards,
directly related experts; representative of SARATRANS owner; leadership
representatives, specialists of departments under Vietnam Railways
Corporation; representatives of the company leaders, departments of Hanoi
Railway Transport Joint Stock Company. Total: 145 people. This number is
enough to ensure objectivity and reliability.
7. Scientific and practical significance
* Theory:
The thesis systematized, deepened and developed the theoretical basis for
building development strategies for railway transport enterprises in the context of
equalization, including: The concept of enterprise development strategy;
principles, bases, processes, strategic level and component strategies, principles
of sustainable development; technology application fields in the direction of
Industry Revolution 4.0, scientific methods and tools in assessing the current
situation, research on building development strategy for railway transport
enterprises.

* Practice:
The practical implication of the thesis is shown in that:
- The thesis analysed and evaluated the status of development strategy
building and the operating environment of the railway transport enterprises
and SARATRANS, showing the achieved results, shortcomings and
limitations in development strategy building as well as the main
opportunities and risks of the external environment affecting the operation of
enterprises, strengths and weaknesses of enterprises.


3
- Propose development strategy for SARATRANS and selected
development strategy building implementation solutions which is scientific,
reliable and feasible, suitable with SARATRANS in the context of transferring
from state-owned enterprises, dependent accounting to joint-stock enterprises, is
still heavily "subsidized".
- Scientific arguments to develop development strategies and research results
of the thesis will also be a positive reference for the railway transport
8. Dissertation structure
In addition to the introduction, the conclusion, the list of references and
attached appendices, the dissertation is divided into 4 chapters:
Chapter 1: Overview of domestic and foreign research issues.
Chapter 2: Theoretical basis for the formulation of development strategy
of enterprises.
Chapter 3: Analysis and assessment of the current situation of Saigon
Railway Transport Joint Stock Company in the period of 2016 - 2019.
Chapter 4: Build development strategy of Saigon Railway Transport Joint
Stock Company.
Chapter 1: OVERVIEW OF RESEARCH WORKS RELATED
TO THE DISSERTATION TOPIC

1.1. Overview of research issues on overseas development strategy
In the world, there are many researches on methods to analyze and plan
strategy. With different perspectives and approaches, there have been many
different results. Today, strategy development in the world continues to be
perfected in theoretical basis with the application of advanced technologies.
Typically, in the studies of the authors: Clausewitz C, Chandler, Quinn,
Bruce D., Michael Porter, Johnson and Scholes, Kenichi Ohmae...
1.2. Overview of research issues on domestic strategy
In Vietnam, there have been many studies on formulation of the
Development Strategy, many of them have been widely published in
textbooks, scientific research, in published scientific studies. A system of
common theoretical bases has been formed for Enterprises and for a number
of Enterprises in different fields. Currently, research to develop theoretical
basis for the Development Strategy in the country is being promoted.
Typically, in the studies of the authors: Phan Huy Le The, Nguyen Thanh
Do, Nguyen Ngoc Huyen, Nghiem Van Dinh, Nguyen Huu Ha, Tu Sy Sua,
Bui Xuan Phong ... The above studies are valuable experiences for the author
to continue to perfect the research on formulating Development Strategy for
SARATRANS.
1.3. Research gap
- There is no consensus on methods as well as process on develop
strategy for enterprises.


4
- For different Enterprises, the structure, composition, names of the
components of strategy may be different.
- In the field of railway transport, there have been some related
researches, but mainly the production and business strategy of the railway
transport enterprise in the period of state enterprise. In terms of equitization

in 2016, there is no research on the formulation of Railway Transport
Enterprise Development Strategy;
- In the building Development Strategy, methods, tools, processes ... have
not been used to develop modern and scientific Development Strategy.
1.4. Determination of the problem to be solved in the dissertation
Up to now, there has not been any study directly mentioning the
formulation of Development Strategy from the perspective of an equitized
Vietnam Railway Transport Enterprise, thus, theoretical basis for the
formulation of the Railway Transport Enterprise Development Strategy in
the equitization period should be studied, in which a specific object is Saigon
Railway Transport Joint Stock Company.
1.5. Basic tasks to be solved
Continue to research, systematize and deepen the theoretical basis to
apply formulation of the Development Strategy for railway transport
enterprises, including: Principles, bases, sequence, criteria and calculation
methods. Study experience in formulate the Development Strategy. Analyze
environment to clarify opportunities and challenges. SARATRANS on all
aspects, aimed at pointing out strengths and weaknesses. Combine
opportunities and challenges with strengths and weaknesses to form strategic
scenarios for SARATRANS. Select the optimal Development Strategy and
propose solutions to implement the selected Development Strategy.
1.6. Framework of research theory
Research on factors affecting production and business activities of
enterprises: Factors on macro, micro and internal environment. Study,
analyze and evaluate the impact of external factors on factors within the
internal environment of SARATRANS. Use modern tools and methods to
evaluate, formulate, and select the optimal development strategy for
SARATRANS; propose solutions to the proposed strategy.
1.7. Research Process
Step 1: Study related works points out gaps and tasks. Step 2: Study on

the rationale of the strategy, specifically applied to SARATRANS. Step 3:
Assess the current status of internal and external environmental factors in the
enterprise, determine the impact trend, strengths and weaknesses in its
operations. Step 4: Use appropriate tools to formulate and propose the
optimal development strategy for SARATRANS. Propose the main solutions
to successfully implement the developed development strategy.


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Chapter 2: THEORETICAL BASIS FOR THE FORMULATION OF
DEVELOPMENT STRATEGY OF ENTERPRISES
2.1. Overview of enterprise development strategy
2.1.1. Concept of Enterprise development strategy
General concept of enterprise development strategy: “Strategy is the
careful search for an action plan to develop and combine the organization’s
competitive advantages; The differences between you and your competitors
are the basis of your advantage”. Or "Strategy is the creation of a unique
value proposition consisting of differentiated activities".
Concept of Enterprise development: “Enterprise development is a
process that requires enterprises to improve in many aspects and in
comprehensive way in three main areas: production, business, contribution to
society and environmental protection ”.
Definition of corporate development strategy: The Enterprise
Development Strategy is a general action program aimed at the realization of
the objectives of the Company, a system of general goals and major
objectives, major development orientations in areas of business activities,
optimally combining social development and environmental protection, basic
solutions to organizational structure, operating mechanism for all activities of
the enterprise, solutions to mobilizing, distributing and efficiently using
development resources, and measures for organizing the implementation of

the Development Strategy.
2.1.2. Role of development strategy
Development Strategy helps enterprises: Clearly orient in the long term; is a
solid basis for the implementation of operational activities; seize and take
advantage of opportunities, and take proactive measures to deal with threats and
threats; improve efficiency in use of resources, enhance the position of the
enterprise, ensure sustainable development for enterprises.
2.1.3. Basic characteristics of development strategy
The Development Strategy often defines the basic directions and
objectives of the Enterprise in each period; ensure maximum mobilization
and combination of exploitation and use of enterprise’s core resources and
competencies, promote advantages and seize opportunities to gain
dominance in the market, built for a a relatively long period, over 5 years;
but tends to shorten depending on the enterprise.
2.1.4. Basic attributes of development strategy include: (1) Totality; (2)
Purpose; (3) Space and time; (4) Substantial change
2.1.5. Benefits of development strategy: Development Strategy shows the
synthesis of long-term goals of the Company; align short-term goals in the
long-term context; contribute to ensuring the unity and orientation of the
business activities; Help enterprises seize opportunities and create a
competitive position.


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2.2. The scientific basis for build development strategy of enterprises
2.2.1. Objective inevitability for building development strategy for
enterprises
Enterprises were equitized, have organizational changes, changes on
production and business processes ... , which requires the formulation of the
Development Strategy to meet the new era.

2.2.2. Requirements upon building of the Development Strategy of
enterprises
The Strategy for Enterprise Development must comply with the
guidelines and policies of the Party and State, adhere to the strategies and
plans of the industry, and need to properly identify opportunities and risks
from the environmental factors and properly assess the strengths and
weaknesses of the enterprise.
2.3. Strategy building tools
2.3.1. Model of enterprise environmental analysis
EFE - External Factors Assessment Matrix: According to the form in
Table 2.1, it is a tool to assess, synthesize and summarize the main
opportunities and risks of the external environment affecting the operation of
the enterprise.
Table 2.1: The EFE matrix sample table evaluates the lateral factors
Major external
factors
…..
Total points

Classification
important level
…..

Classification:
Responsiveness
…..

Score
calculation
…..

Sources: Quantri.vn
To form an EFE matrix, it takes 5 steps.
Matrix of internal factor evaluation - IFE: According to the form in
Table 2.4, it is a tool to assess strengths, weaknesses and importance of
functional parts of the enterprise. To form an IEF matrix, it takes 5 steps
similar to matrix evaluating external factors.
Table 2.4: Sample table on Matrix of internal factor evaluation - IFE:
Major internal factors
…..
Total points

Classification
important level
…..

Classification:
strong, weak
…..

Score
calculation
…..

Sources: Quantri.vn
In order to build matrices to evaluate external and internal factors, the
core issue is to build a method of weighting in a scientific manner and
consistent with the characteristics of the enterprise; The dissertation proposes
the following weighting method:
Weighted classification method: Set up a sample survey to assess the

response level, the response level or the influence level of external factors.


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After having the evaluation results, calculate the ratio of each factor Y for
each type of reaction. Then the average number of weights is calculated by
the formula:
𝑓(𝑥) =

𝑋 𝑐 .𝑘 𝑐 +𝑋 𝑑 .𝑘𝑑 + 𝑋 𝑒 .𝑘𝑒 +𝑋 𝑓 .𝑘𝑓
∑𝑥

(2.3)

In which: 𝑓(𝑖)is the average of the weights of the ith factor; X is the
number of opinions evaluating factor i in column (c, d, e, f); k is the response
coefficient in the corresponding column, k = 4 in column C, equal to 3 in
column D, equal to 2 in column E and equal to 1 in column F;
𝑓(𝑖)is the average of the weights of the ith factor; X is the number of
opinions evaluating factor i in the column (c,d,e,f); k is the response
coefficient in the corresponding column, k = 4 in column C, equal to 3 in
column D, equal to 2 in column E and equal to 1 in column F; ∑x is the total
number of collumns. After calculating, proceed to round up to or above 0.5,
round up, below round down.
2.3.2. Model to build strategic plans
SWOT matrix: is the most widely recognized tool for shaping strategic
directions. The author uses this matrix to define the focus and direction for
the SARATRANS Development Strategy.
BCG Matrix (Boston Consulting Group): Figure 2.2 is a classic business
model considering two factors of market growth and market share. Locate

the Enterprise's products.
Relative market share in the industry
High Medium Low

High

STARS

QUESTION
MARKS
.

CASH COWS

DOGS
.

Relative market share in the industry

Sources: Quantri.vn

Figure 2.2: BCG matrix (Boston Consulting Group)
2.3.3. Optimal strategy selection model
Quantifiable Strategic Planning Matrix - QSPM. A matrix that uses input
data from the analysis in the steps of forming IFE and EFE matrices, helping
to make a decision to choose a Development Strategy to successfully
implement its goals.


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2.3.4. Method of forecasting output and revenue of railway transport
enterprises
Prediction is a difficult, complicated activity, very difficult to accurately.
So it is necessary to use a forecasting tool. The forecasting tools are divided
into two categories: Qualitative and quantitative techniques. Usually use the
following methods: (1) Forecast model by regression method (forecasting
based on trend), using linear regression method: y = a.x +b (2.3) . (2).
Forecast model by exponential leveling method with general formula: Yt+1 =
𝛼 ∑𝑛𝑖=1 𝛾 𝑖 𝑦𝑡−𝑖 + 𝛾 𝑖+1 𝑌𝑡−1 (2.4). (3). Forecast model according to the trend
function and seasonal fluctuation: Yi = Y + tv + bt (2.5). (4). Forecast
method based on average growth rate, Forecast model: Yn+L = yn*
𝛼 ∑𝑛𝑖=1 𝛾 𝑖 𝑦𝑡−𝑖 + 𝛾 𝑖+1 𝑌𝑡−1 (2.4).
Proposing method of forecasting output and revenue of railway
transport enterprises
Up to now, due to the erratic changes in revenue output of railway transport
enterprises, the calculated results according to formulas 2.3, 2.4, 2.5 are often
inconsistent. Therefore, the author proposes the forecasting method as follows:
(1) Study the context of the strategic stage (2), Grasp the subjective will,
the desires of the leaders, the owners on the goals, targets ... (3), By the
quantitative method as outlined in subsection 2.3.4, (4), Calculating the
growth rate of railway transport volume and revenue 5 years preceding the
year, (5), Compiling all steps to decision.
2.4. Railway Transport Enterprise and build Development strategic
2.4.1. Characteristics of railway transport
Distinctive characteristics: Technology of Railway transport needs to
simultaneously participation (in over: 2.1, 2.2 và 2.3) and close and smooth
coordination of many specialties in train operation; highly specialized, for
private use only.
2.4.2. Principles of building for the Development Strategy of railway
transport enterprises

Principle 1: The strategy must ensure continuity and inheritance; loyalty to
the core competencies of the Enterprise
Principle 2: The strategy must be systematic, comprehensive and clear
Principle 3: The strategy must ensure the science, must identify the premises
and the bases on the strategy development
Principle 4: Principles of sustainable development of Railway Transport
Enterprises
In addition to the profit target, the operation of the Enterprise must ensure its
long-term existence and development. The author proposes 9 contents of
principles for sustainable development of railway transport enterprises.
Principle 5: Principles of building new products of the Railway Transport
Enterprise


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By using different matrices, identify: Railway Transport Enterprise is not
a strong business, with a very small market share (about 1%) in the entire
transport market which is very large and very attractive. Therefore, the
Railway Transport Enterprise increases its market share by improving its
products and services. It is necessary to renew its products on the basis of the
old products, instead of just transporting on railways, it must be connecting
transport with other means. Railway Transport's new products will include:
Products within the railway + products outside the railway, organizing
intermodal trains, fruit trains...
Principle 6: Principles of choosing appropriate technology for railway
transport enterprise
Railway Transport Enterprise needs a strong application of Industrial
Revolution 4.0, because it does not need a large financial source but mainly
invested in human resources, is suitable for enterprises with limited capital
resources such as the Railway Transport Enterprise;

Propose technology application fields in the direction of Industrial Revolution
4.0 for railway transport enterprises: Manage, operate, interact with transport
operation center, station, customers ..., control wagons, especially freight wagons,
eliminate the situation of “derelict" freight wagons.
Principle 7: Development of Railway Transport Enterprise on the basis of
transport connection development
In today’s fully connected world, the transport connection will bring
development opportunities for the Railway Transport Enterprise, only that
can take advantage of the power of other means of transport, but also there
are many forms of connection: directly by mechanics, indirectly through
other means and connected by policy mechanisms.
2.4.3. Propose to apply the problem of determining the transport
connection index for Vietnam Railway Transport Enterprises.
Travel route selection is quantified using a transport connectivity index.
In principle, the higher the connection index, the easier the travel route will
be. Currently, there are no calculations in Vietnam for railway stations in
Vietnam. PARK Junsik & Seong Cheol KANG proposed the problem of
determining the transport connectivity index between metro lines. On the
basis of that problem, the author proposes to expand the problem to
determine the transport connection index for railway lines with other types of
transport.
a). Connection index of the feeder route
If we call Tlv is the connectivity of transit route l at the connecting node
(station) v, then the connectivity of the transfer route will be calculated
according to the following formula (2.1):
Tlv= αD x βV x γLv (2.1)
In which D is the daily capacity of route l, V is the average speed of route


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l and T is the distance from connecting node v to the stop (station) and α, β,
are the coefficients ratio.
b). Connection index of the button (station) connected:
After calculating Tlv Connection indicator at node (station) v, denoted by
CI (v), is calculated according to formula (2.2).
CI(v) = ∑ Tlvlv(2.2)
𝒍∈𝑳
Calculation results according to formula (2.2) will be specific numbers about
the connectivity of railway stations and stations. The connection index is a
relative quantity. If the connectivity index of one station (A) in one network, for
example, is 3 times that of a station (B) in the other network, it can be said that
ga (A) offers better connectivity. 3 throttle (B).
c). Degree of application of the problem to determine the transport
connection index for Vietnam Railway Transport Enterprises
Vietnam Railways mainly conduct indirect connections (via road,
waterway ...), policy connections (through coordination, joint ventures, links
with other means of transport) . That is why, the degree of application of the
problem to determine the transport connection index for Vietnam Railway
Transport Enterprises is still very limited.
2.4.4. Bases for building the Development of Railway Transport
Enterprises
There are many grounds for formulate the Development Strategy,
depending on the level of relevance for research and implementation,
including: The Party’s leadership lines and State policies and laws; Relevant
international agreements, development strategies and plans of the entire
Vietnam Railways industry, development strategies and plans of the entire
Vietnam Railway industry: The strategies and master plan for the
development of Vietnam Railways Transport is a central and key element to
apply in the strategic building of the Railway Transport Enterprise. In
addition, railway transport enterprises must base on the following factors:

Customers, competitors and corporate insiders.
2.4.5. Determination of the strategic level of the railway transport
enterprise
Railway transport Enterprise Development Strategy is on the Enterprise level,
so it is a micro-strategy. Content: Railway Transport Enterprise is an independent
enterprise operating under Vietnamese law, so the Development Strategy of a
Railway Transport Enterprise must contain all necessary contents.
2.4.6. Strategic decentralization of railway transport enterprises
Railway Transport Enterprise is an independent, multidisciplinary, largescale unit, so the strategic level is the organizational - company level.
2.4.7. Component Strategies for Railway Transport Enterprise
Development Strategy
Including: Production and business strategies, strategies for optimal integration


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of social and environmental issues, strategies for human resource development,
and strategies for science and technology development.
2.4.8. Basics of the Enterprise Development Strategy for Railway
Transport
Development Strategy usually includes the following key items: Bases for
building strategy, strategic objectives, strategic plans, implementation solutions.
2.4.9. Process and content of building for the Development Strategy of
Railway Transport Enterprise
The author proposes the process and content of building for the
Development Strategy including the following 8 steps: Define mission and
strategic vision; analysis, assessment and forecast of the operating
environment; study of the views, desires, opinions ... owners, leaders;
confirms the current position and defines the goals of the business;
formulating strategic plans; decide on the optimal strategic plan and organize
the implementation of the strategy

2.5. Propose a model to measure the relationship of the establishment of
the Development Strategy with the implementation of the Railway
Transport Enterprise Development Strategy
2.5.1. Environmental factors - The basis for the development of railway
transport enterprises
Consists of 11 external environmental factors and 8 internal elements.
2.5.2. A model to measure the relationship of the builder with the
implementation of the railway transport enterprise development strategy
There has not been any research on measuring the relationship between the
establishment of the Development Strategy to the enforcement of the Railway
Transport Enterprise Development Strategy. Quantifying this relationship will
help the Enterprise Development Strategy to have higher quality and more
enforcement. The author has built a research model and used the scale and
research sample. The research scale uses expert methods through surveys and
surveys (selected from appendix 1,2,3 attached to the dissertation) to select
specific scales. Using the correlation coefficient Cronbach's Alpha (Cronbach's
Coefficient Alpha) to evaluate the reliability and value of the scale. The
reliability of a measurement is the degree to which random error is avoided.
2.6. Some experience in building Vietnamese Enterprise Development
Strategies
(1) Innovate strategy and Consider the strategy building as one of the top
tasks. (2) Formulation of the Development Strategy must follow the set
orientations, visions and objectives. (3) The content of the corporate
development strategy must be built on the identification and correct
understanding of customers, keeping connection with the long-term vision.
(4) Must adapt to the market needs as well as the individual capacity of each
enterprise.


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Chapter 3: ANALYSIS AND ASSESSMENT OF THE CURRENT
SITUATION OF SAIGON RAILWAY TRANSPORT JOINT STOCK
COMPANY IN THE PERIOD OF 2016 - 2019
3.1. Overview of Vietnam Railways Corporation
3.1.1. Outline of formation and development
In 1955, the Prime Minister signed a decision to establish Vietnam
Railway Authority, changed to Vietnam Railway Union in 1990, established
Vietnam Railways Corporation in 2003, and changed VIETNAM
RAILWAYS CORPORATION to be one member limited company in 2010.
Head office: 118 Le Duan Street, Hoan Kiem District, Ha Hoi City. Charter
capital: VND 2,268 billion.
3.1.2. Business lines of Vietnam Railways Corporation
Business of railway transportation, domestic and international multimodal
transport; management, exploitation, maintenance and repair, sales of the
national railway infrastructure system; operation of railway transportation;
consulting, design, manufacturing, construction and repair of vehicles.
3.1.3. Functions and duties of Vietnam Railways Corporation
Exercise the rights of owner in accordance with the law, operate the
transportation; develop, manage and direct the implementation of the train
run chart; business exploitation of the railway infrastructure system;
management of techniques, operations, standards and regulations; ensure
railway traffic order and security.
3.1.4. Strategy for the development of Vietnam's railway transport industry
Overall objectives: Develop a synchronous railway transport system in
terms of infrastructure, organize the management and operation of
transportation, industry and services with high qualifications; ensure smooth,
orderly, safe, accurate, fast, convenient and efficient railway transportation
activities; form a driving force to promote socio-economic development,
serve the industrialization and modernization of the country, meet the
requirements

of
regional
and
international
integration,
ensuring national defense, security and environmental protection.
Specific objectives
a) Up to 2020: Meet about 1% - 2% market share in passenger transport
and 1% - 3% market share in freight transportation; Meet about 4% - 5%
market share of urban passenger transport in Hanoi and Ho Chi Minh City.
Focus on developing products; build new wagons in the direction of
modernity, fully equipped and diverse in types.
b) From 2020 to 2030: Meet about 3% - 4% market share in passenger
transport and 4% - 5% market share in freight transportation; Meet about
15% - 20% market share of urban passenger transport in Hanoi and Ho Chi
Minh City.
c) Vision to 2050 Meet at least 5% - 8% of the market share of passenger
transport and 5% - 6% of the market share of freight transport; Meet over 30%
market share of urban passenger transport in Hanoi and Ho Chi Minh City.


13
Implementation Solutions:
- Promote the policy of socialization in the railway transport business.
- Make reasonable investment in training and development of human
resources.
- Science and Technology: Adopt policies to encourage research and
application of scientific and technological achievements; apply new scientific
and technological achievements in training and transportation exploitation
- Transport development: Ensure quality, fastness, safety, convenience,

and social cost savings. Strongly develop multimodal transport and logistics
services in goods transportation.
3.1.5. Relationship between Saigon Railway Transport Joint Stock
Company and Vietnam Railways Corporation
- Development Strategy: SARATRANS must comply with and adhere to
the major objectives, tasks, targets and solutions that are directly related to
Railway Transport in the Vietnam Railway Transport Industry Development
Strategy to 2020 and vision to 2050 to develop and implement Enterprise
Development Strategy.
- Vietnam Railways Corporation is the parent company of SARATRANS
with a controlling share (78.46%); Every year, SARATRANS signs a
contract with Vietnam Railways Corporation to hire Vietnam Railways
Corporation to run trains, hire locomotives, hire railway infrastructure ...;
3.2. Overview of Saigon Railway Transport Joint Stock Company
3.2.1. Process of Formation and Development
Saigon Railway Transport Joint Stock Company was formerly Saigon
Railway Passenger Transport Company which was established by Vietnam
Railways Corporation by Decision No. 04 / QD / ĐS-TCCB dated 7/7/2002,
is a state company, the dependent accounting. From February 1, 2016,
Saigon Railway Transport One Member Limited Company became Saigon
Railway Transport Joint Stock Company, with charter capital of 503.1
billion; capital structure at the time of approval of the Charter: Vietnam
Railways Corporation 78.46%, employees 7.33%, another investor 14.21%.
3.2.2. Main asset of Saigon Railway Transport Joint Stock Company
The total fixed assets of SARATRANS by the end of 2019 are 1,139.3 billion
dong, which is a large enterprise. Volatility increased from 2018 to 2019 due to
the investment in new generation passenger wagons. The fixed assets of
SARATRANS are mainly wagons, accounting for about 90-95%.
3.2.3. Business and production situation of Saigon Railway Transport
Joint Stock Company

In 2019, SARATRANS had transportation revenue of 1,790.1 billion
VND, of which revenue from passenger transportation was mainly 81%, tons
were 875 thousand tons; passengers on board reached 3,606.9 thousand
turns. The volume and revenue of passenger and cargo transportation in the
years 2016 - 2019 increased and decreased erratically, with no clear tendency
to increase.


14
3.2.4. Characteristics of Saigon Railway Transport Joint Stock
Company in the pre-equitization period (before February 2016)
Before February 2016, SARATRANS was Saigon Railway Transport
Company Limited which was one of the two independent railway transport
companies under the Vietnam Railways Corporation, operating in railway
transport as the core. The company has 11 member units, dependent
accounting. The company operates with full legal status in accordance with
the law.
3.2.5. Company characteristics after 02/2016
SARATRANS operates under the model of a joint stock company by law.
Main business activities: Railway passenger transportation; railway freight
transportation; Business lines related to the main industry: road passenger
and cargo transportation; Coastal freight and ocean. SARATRANS has the
parent company of Vietnam Railways Corporation, holding 78.46% of the
charter capital. There are no subsidiaries, no joint ventures or affiliates.
Organizational Structure of the Company: Board of Directors, Board of
Supervisors, Board of General Directors; 02 branches of wagon, 01 railway
flight attendant and 06 transportation branches, 07 professional departments.
3.3. Evaluation on formulation of development strategies
3.3.1. Period before January 1, 2015: Before January 1, 2015, the entire
Vietnam Railway Industry was approved by the Prime Minister many times

to the plan and Strategy for the Development of Vietnam Railway Transport.
SARATRANS depends.
3.3.2. From January 1, 2015 to December 31, 2015: Saigon Railway
Transport One Member Limited Company does not work on building
development strategies.
3.3.3. From January 1, 2016 to now, Saigon Railway Transport Joint
Stock Company: The strategic development has been paid attention by
SARATRANS, has taken initial steps, has outlined a number of contents
about business strategy.
3.3.4. Overall assessment of the development strategy building: Before
2016, the development strategy building in entire Vietnam railway sector has
not been properly focused and paid attention, the method is still subsidized
and not scientific. From 2016 onwards, although has been paid attention, it
has just stopped at a number of resolutions and topics and there are some
outlines of the strategy's content, there is not yet a specific enterprise
development strategy.
3.4. Business environment analysis of SARATRANS
3.4.1. Macro environment analysis
Macro environmental factors include: economic factors, political and
legal factors, population, social factors, natural factors, technological factors
and international environmental factors. Each of the above macro
environmental factors can affect the enterprise independently or in
connection with other factors.


15
3.4.2. Micro-environmental analysis and assessment (industry
environment)
The micro environment is comprised of industry factors and external
factors to the enterprise, determining the nature and degree of competition in

the industry. The industry environment is the most complex and also has a
lot to do with competition. There are 5 basic factors: competitors, customers
(buyers), suppliers, potential new competitors, alternative products.
3.4.3. Assessment of the reaction of the Saigon Railway Transport Joint
Stock Company to the external environmental factors
On the basis of the weighting results in Table 3.7 and the results of the
score survey to assess the importance of major external environmental
factors in Appendix 2: PL2.11. Sample 11 survey results, the author built the
matrix of external factors EFE table 3.8.
Table 3.8. Matrix of main external factor factor evaluation EFE
No.

Major external factors

1
2
3
4
5
6
7
8
9
10
11

Political factors, mechanism, law,
Good signals about domestic and international economy
Trends in international economic integration
Great potential of the market

Fluctuation of exchange rates, bank interest rates
Development of science and technology
Customer loyalty
Domestic and foreign cooperation
Proactive in raw materials for production
Great level of competition
Elements of railway infrastructure
Total points

Score
critical
level
0.11
0.07
0.05
0.09
0.09
0.12
0.12
0.04
0.05
0.11
0.15
1.00

Reactivity
classification
(weighting)
3
3

3
3
3
3
3
3
2
3
3

Score
calculation
0.33
0.21
0.15
0.27
.27
0.36
0.36
0.12
0.10
0.33
0.45
2.95

Sources: Research student synthesis and analysis

Through the results of Table 3.8 above, the total response score of
SARATRANS to 11 main factors affecting the external environment was
only 2.95 points, at the average response level.

3.4.4. Analysis and assessment of the internal environment of
SARATRANS
To assess the strengths and weaknesses of the environmental factors
inside the SARATRANS, the dissertation builds and analyzes the matrix of
the IFE internal factors according to the form shown in Table 2.4. The
construction of the IFE matrix is based on the assessment score of the key
internal environmental factors. On the basis of the weighting results in Table
3.14 and the results of the score survey to evaluate the importance of major
internal environmental factors PL2.10, the author builds a matrix to evaluate
external factors IFE Table 3.15.


16
Table 3.15: Matrix of assessing the strengths and weaknesses of internal
environmental factors of SARATRANS
No.

Major internal factors

1
2
3
4
5
6
7
8

Financial capacity
Competence in management and administration

Equipment and technology qualifications
Marketing capacity
Production and organization structure
Human resources
R&D capacity (research and development)
Domestic and international cooperation capacity
Total points

Score
Classification
Score
critical
strong, weak
calculation
level (Weighted factor)

0.15
0.13
0.18
0.09
0.09
0.17
0.09
0.10
1.00

3
3
3
2

3
3
3
3

0.45
0.39
0.54
0.18
0.27
0.51
0.27
0.30
2.91

Sources: PhD student synthesizes and analyzes
The results in Table 3.15, the Assessment Matrix of strengths and
weaknesses of environmental factors inside SARATRANS, with a total score
before 8 main factors of the internal environment reached 2.91 points,
assessed above average.
Chapter 4: FORMULATION OF DEVELOPMENT STRATEGY OF
SAIGON RAILWAY TRANSPORT JOINT STOCK COMPANY
4.1. Define the mission and vision of the Company
4.1.1. Mission: Maximize the needs of fast, convenient and safe railway
transport of goods and passengers with reasonable prices, bringing
satisfaction to customers in the direction of Industrial Revolution 4.0 into
providing transport service, transport connection.
4.1.2. Vision: Be the most trusted and selected partner thanks to the ability to
provide professional transport services, optimal connection solutions; maximum
satisfaction of the legitimate needs of customers and satisfy the sustainable

investment value, attractive and long-term benefits for shareholders and partners
on the basis of cooperation for mutual development.
4.2. Core values: "Safe - Convenient - Friendly - Punctual and Efficient"
4.3. Development strategy goals of the Company
4.3.1. Overall objectives
The long-term goal of the entire enterprise is to be consistent with the
railway transport quality of Vietnam, that is Develop SARATRANS
synchronously in both technical facilities, organize, manage, exploit,
transport, repair industry and services with high level; responsible to the
society, meet the transportation needs of the people, the economy and protect
the environment.
4.3.2. Specific objectives
From now to 2025: Ensure production, revenue, efficiency growth.
Maintain charter capital, reduce employees by 2.6% / year, average income
increases 8% / year, revenue increases 7.1%


17
Period after 2025 to 2030: Ensure growth in transport revenue volume at
10% / year; increase charter capital; continue to reduce labor by 2.6% / year;
ensure income increases 10% / year; to attract 20-30% of investment capital
from all economic sectors to develop wagons, means of loading and
unloading, machinery and equipment connecting transport, warehouse,
information technology ...
4.3.3. Forecast of the company's transport volume up to 2025
Transport demand for the whole Vietnam Railways industry: passengers
up to 2030 in the "no impact" scenario will be 19,710,000 passengers / year;
goods by 2030 will be 56,599,400 tons / year, accounting for 4.2% market
share of the entire Transport industry.
Forecast of the company's transport volume up to 2025

On the basis of passenger and cargo transportation demand many times
larger than the implementation of the railway transport enterprises in 2019,
applying the forecasting method in 2.3.4, after taking 5 steps, Currently the
different methods, the author proposed to increase from 6-7% / year as
shown in Table 4.2 below.
Table 4.2: Some forecasting indicators of transport volume and revenue of
Saigon Railway Transport Joint Stock Company 2021 - 2025
No.
1
2
3
4
5
6
7
8

Year
Year
Year
Year
Year
2021
2022
2023
2024
2025
Tons of stacking
1,000 tons
1,001.7

1,071.9
1,146.9
1,227.2
1,313.1
Ton.Km
Million T.Km
1,137.0
1,216.6
1,301.8
1,392.9
1,490.4
Customers
1,000 HK
3,859.3
4,129.5
4,418.6
4,727.9
5,058.0
HK.Km
Million HK.Km
1,761.6
1,884.9
2,016.9
2,158.0
2,309.0
T.Km t / đ
Million TKm
2,915.2
3,119.2
3,337.0

3,571.0
3,821.0
Transport Revenue Million dong 2,049,000 2,192,000 2,346,000 2,510,000 2,686,000
Sales of goods
Million dong
365,000 391,000 418,000 448,000
479,000
Other revenue
Million dong 1,656,000 1,772,000 1,896,000 2,029,000 2,171,000
Criteria

Unit

Sources: Synthesis of SARATRANS and author

4.4. Determination of the strategic plans of the Company
Table 4.3: The SWOT matrix forms strategic directions

SWOT

Strength (S)
1. Have network connecting
with
the
southern
key
economic region.
2. Have transport capacity to
handle large volumes.
3. Always a unit with high

quality
and
efficient
transportation services.

Weakness (W)
1. Weak service quality
2. Weak Marketing
3. The financial capacity is
weak, the capital is small, it has
not attracted the economic
sectors to invest in the railway.
4. The contingent of staff is
large but not strong and has no
high technology knowledge.
The
heavy
organizational
structure is ineffective.
5. The capacity of the Company
is limited, CSVC, transport
technology is out of date.


18
Opportunity (O)
1. Economic integration in the
region and the world, joining WTO,
AFTA, OSZD.
2. Get the attention of the Party and

State.
3. Transport demand increases.
4. The economic sectors began to
pay attention, participate in
investment.
5. The construction and enactment
of the railway law system is
relatively complete.
6. Successful lessons from other
countries.
Threats (T)
1. National infrastructure is not
synchronous. Railway infrastructure
is very backward, slow to be
invested.
2. Fierce competition between
different types of transport.
Especially short routes parallel to
roads.
3. Investment sources are limited.

Combine SO
Centralized growth strategy
- Place emphasis on improving
existing products or changing
existing markets, improving
existing products or services.
- Consolidate and develop the
existing transport market.
- Invest in modernizing means

and equipment of transport
technology in the 4.0 period;
enhance
connections
for
customers to easily access
railway.

Combine WO
Overall management strategy
- Focus on improving service
quality.
- Apply a modern and
successful model in countries to
the Company.
- Reorganize production to
exploit the full capacity of the
current route; maximize the
potential of technical facilities
and human resources.

Combine ST
Overall management strategy
- Use service quality, transport
speed, safety and convenience
to improve competitiveness.
- Make use of existing
transport capacity to meet
current demand.

Combine WT
Product development strategy
- Develop new transport
product: transport products
connecting at home and abroad
- Develop railway transport
means in the direction of
modernity and convenience.

Sources: PhD student synthesizes and analyzes
Thus, after building and analyzing the SWOT matrix, the dissertation forms 03
development strategies for SARATRANS. However, combined, we will form a
basic strategy for SARATRANS in the period up to 2025: Focused growth
strategy, overall strategy and new product development strategy.
4.5. Select the optimal development strategy for SARATRANS
4.5.1. Select Development Strategy based on the QSPM quantitative
strategic planning matrix
There are many development strategies to choose from, but it is necessary
to find the optimal one. The dissertation through strategic planning matrix QSPM uses the research results obtained in Chapter 3 and expert opinion
increase results in Table 4.4.
Table 4.4: The QSPM Matrix selects the optimal Development Strategy
for SARATRANS
Development strategies
Classification
Concentrated growth
Overall management
of
Score
Attractive
Score

importance Attractive
classification calculation classification calculation
Political factors, mechanism, law ...
0.11
3
0.33
3
0.33
Good signals about domestic and
0.07
3
0.21
3
0.21
international economy
Trends in international economic
0.05
3
0.15
3
0.15
integration
Great potential of the market
0.09
3
0.27
3
0.27
Fluctuation of exchange rates,
0.09

3
0.27
2
0.18
bank interest rates
Development of science and
0.12
3
0.36
3
0.36
technology
Major factors

1
2
3
4
5
6


19
Development strategies
Classification
Concentrated growth
Overall management
of
Score
Attractive

Score
importance Attractive
classification calculation classification calculation
Customer loyalty
0.12
3
0.36
3
0.36
Domestic and foreign cooperation
0.04
3
0.12
2
0.08
Proactive in raw materials for
0.05
2
0.10
2
0.10
production
Great level of competition
0.11
3
0.33
3
0.33
Elements of railway
0.15

3
0.45
3
0.45
infrastructure
Point to major external factors
1.00
2.95
2.82
Financial capacity
0.15
3
0.45
3
0.45
Competence in management and
0.13
3
0.39
3
0.39
administration
Equipment and technology
0.18
3
0.54
3
0.54
qualifications
Marketing capacity

0.09
2
0.18
2
0.18
Production and organization
0.09
3
0.27
2
0.18
structure
Human resources
0.17
3
0.51
3
0.51
R&D capacity (research and
0.09
3
0.27
3
0.27
development)
Domestic and international
0.10
3
0.30
2

0.20
cooperation capacity
Point the main inner factors
1.00
2.91
2.72
Total points
5.86
5.54
Major factors

7
8
9
10
11
12
13
14
15
16
17
18
19

Sources: PhD student synthesizes and analyzes

Survey results in Table 4.4 show the total score for the Centralized Growth
Strategy: 5.86 is higher than the total score for the overall management strategy
plan: 5.54. This result is an important basis to combine with other bases to choose

the optimal strategy for SARATRANS.
4.5.2. Orientation of the SARATRANS Development Strategy
(1). Consolidate and develop the existing transport market, strengthen
transport connections, develop new products, increase output, revenue and
effectively do business.
(2). Invest in modernizing information technology, vehicles, transport
equipment, loading and unloading equipment, system of connection,
operating equipment ... creating a breakthrough in the application of
technology in the Industrial Revolution 4.0 era;
(3). Develop international intermodal rail transport connection;
(4). Improve the quality of transport services;
(5). Reorganize production to exploit the full capacity of existing roads;
maximize the potential of technical facilities and existing human resources.
(6). Complete the organizational structure, develop human resources to
meet the development requirements of SARATRANS.
4.5.4. Choose the optimal strategy for Saigon Railway Transport Joint
Stock Company
Comparing with the characteristics and actual production situation of
Saigon Railway Transport Joint Stock Company, the preferred development
strategy is: Centralized Growth Strategy, overall management strategy.


20
4.6. Solutions for implementing the SARATRANS Development Strategy
The Development Strategy of SARATRANS has been prioritized as the
Centralized Growth Strategy and the overall management.
- For growth strategies focus on solutions: Mainly focus on internal
development, promoting internal resources, improving existing products or
markets, trying to exploit every opportunity to have transport products and
services, mainly railway transportation for customers and goods; increase

market share by improving product quality, launching new, higher quality
products ...
- For overall management strategy: The overall management strategy
focuses on the core competencies of the business and the value created by
coordination among departments and units within the enterprise.
4.6.1. Solution group mainly on transport business
Solutions for transport management and administration
Continue to improve the organizational structure, management and
management mechanism smoothly, flexibly and respond to the market as
quickly as possible, especially when there are force majeure events: Natural
disasters, enemy sabotage, epidemics ...
Solutions to improve the quality of transport business
a). In transport of passengers: Pay special attention to improve the
quality of passenger service, continue to improve the quality of passenger
wagons; reorganizing and renewing service methods on train under stations;
step up the application of science and technology to the management and
operation of transport, providing sufficient and accurate information for
customers. Pay attention to strongly develop sales service, after-sales
customer care.
b). In freight: Diversify types of services, improve the quality of freight
wagons, ensure the flow of vehicles to serve the needs of loading and
unloading, attach importance to the discharge of goods, and resolutely
prevent stagnation; cooperating closely with customers to organize the
construction, signing of responsibility contracts and deploying specialized
train operation with customers on the principles of equality, cooperation,
ensuring safety, punctuality,
c). In advertising and marketing: Promote propaganda and promotion
of the company's image in many forms, through many channels to increase
the support and confidence of the people in railway transport in general and
the company in particular.

Price solution and price policy
a). In transport of passengers: Apply flexible fare policy for each route,
train and each time of the year, ticket sales time in advance to improve
efficiency of seat use, reduce passenger transport costs, actively build
flexible rates activities, seasons, flows, routes, in accordance with the
requirements of the shippers. Join international transport.


21
b). In freight: Regularly research and update market prices, prices of
other means of transport on the basis of freight costs to issue flexible rates
according to type of wagon, route, departure station, destination station have
the highest turnover, increase the efficiency of goods transportation business.
Join international transport.
New product solution - international organization of international fresh
freight container ships.
Solution on connecting railway transport with other means of transport
in the area of Ho Chi Minh City and surrounding areas
Solutions to improve service quality on passenger ships:. In addition to
implementing services: Eating, sleeping, resting, entertainment ... on the
train, SARATRANS should focus on solving the bad reputation of “train
odor” and cockroaches and mice on the train.
4.6.2. Restructuring some key areas of SARATRANS
In the current period, SARATRANS has to face more competition; market share
of Railway transportation tended to decrease, production and business faced many
difficulties. These difficulties, partly brought about by objectively, such as outdated
transport technology, the railway infrastructure has not been invested to upgrade to a
level with other types of transport ... partly because the business has just transformed
from the model. state-owned enterprises to shares. Moreover, although it is a joint
stock company, the state still holds dominant shares, so all activities still have a bit of

the old style, therefore, one of the important solutions for SARATRANS for
development is restructuring some key areas of the Company. These areas include:
Organizational restructuring of management apparatus and human resources; review
and assign the responsibilities, duties and powers of the division of labor, at all
management levels; restructuring activities on strategic objectives, business plans,
types of transport services provided; restructuring resources; asset portfolio structure,
financial structure in line with business strategy in the new period. Accordingly, the
restructuring of activities and resources is considered the core issue of the entire
restructuring process.
To accelerate restructuring, it is necessary to focus on a number of key
measures:
- Boldly apply the theoretical issues about the restructuring process for
the leadership staff of the transport business. Change the management
mindset of the highest leader. Innovative thinking in restructuring start
thinking again. On the basis of rethinking, conducting an overall and detailed
redesign from business philosophy, mission, vision, core values, ethical
standards, corporate culture, goals, orientation business strategy ... to
organizational structure, executive management mechanism, activities,
resources ...
- Train and equip employees with the necessary knowledge to be able to
adapt to the new paradigm, to new problems after business restructuring by
providing employees with information. necessary related to their interests,
obligations and responsibilities so that employees plan to actively work in


22
their jobs, equipping workers with the necessary knowledge to be able to
access new positions, with new jobs after corporate restructuring.
- Create the consensus for a successful restructuring.
4.6.3. Solutions for implementing science and technology strategy

Implementation measures include: Promulgate policies and regulations,
focusing on the development and application of information technology on
Internet platforms in providing transport services (ticket booking, train
check-in, automatic toll collection ...) similar to other services such as taxi
Uber, Grab…; every train, train ... is monitored visually, online. Along with
intelligent public services, a comprehensive automatic management system
ensures safety and smoothness.
4.6.4. Human resource development solutions group
The most important and cross-cutting solution in the implementation of
the selected Development Strategy is that SARATRANS must train, retrain,
recruit, compensate ... to have a team of skilled and qualified workers.
foreign language arts and skills to meet the requirements of information
technology development in the direction of the Industrial Revolution 4.0;
increase labor productivity, increase competitiveness.
4.6.5. Group of investment solutions and capital creation
SARATRANS needs to have an investment plan for the period up to 2025
and up to 2030 to meet the transport needs and suit the scale and financial
capacity, which will diverge and give an appropriate investment in
prioritized projects and their effectiveness.
4.6.6. Environmental protection solutions
Renovate propaganda and education content, raising awareness and
responsibility for environmental protection for cadres, civil servants, officials
and employees throughout the Company. Strengthen the organizational and
managerial apparatus, improving the capacity and qualifications of the
contingent of cadres and civil servants engaged in environmental protection;
organize, assign leaders to be responsible for environmental protection work
and strengthen specialized departments and officials with expertise in
environmental protection.
4.6.7. Solution for implementing social responsibility: Corporate social
responsibility is being viewed as one of the top business strategies of the

Company rather than compulsory charity or regulations. Deploy the
corporate social responsibility well will not only help your business do a
good business, but also assist your business in solving strategic problems
related to business and social issues. SARATRANS needs to well implement
some of the following solutions.
4.6.8. Other solutions
4.7. Inspection, evaluation and adjustment of strategy
Saigon Railway Transport Joint Stock Company needs to establish a Strategy
Committee with the participation of key staff: The Chairman of the Board of
Directors is the Head, General Director, Deputy General Director are the Deputy


23
Head, the Chief Accountant and a number of department heads and excellent
experts are members. These are the people who have the level of influence and
ability to decide on the success of the business. This Board is responsible for
directing the entire process of building and implementing the Enterprise
Development Strategy.
CONCLUSION AND RECOMMENDATION
(i) Conclusion
Through the research process, the thesis has achieved new specific results
as follows:
Firstly, the thesis reviewed domestic and foreign studies on development
strategy found research gaps, research processes and methods; building a
theoretical framework for research on building development strategies for
railway transport enterprises.
Secondly, systematize and deepen, supplement and develop the theoretical
basis of building quality development for railway transport enterprises in the
context of equalization.
+ Bring the concept of enterprise development strategy; build principles,

bases, 8-step process, propose strategic level and component strategies of VNR
enterprise development strategy. Bring 9 principles of sustainable development
for railway transport enterprises;
+ Propose fields of technology application in the direction of Industry
Revolution 4.0, apply the problem of determining the transport connection index
for the railway transport enterprises.
+ Access to Industry revolution 4.0 by building models: Cargo transportation
exchange, SARATRANS Smart Data Centre, freight wagon online information
system and measure the relationship of development strategy building with the
feasibility of the development strategy.
Thirdly, by scientific and modern methods, the thesis analysed and
evaluated the current situation of SARATRANS, the development strategy
building of SARATRANS; analysed and evaluated the operating
environment with the principles of ensuring realism, logic and science. In the
process of analysis and evaluation, the thesis consulted especially by 145
leaders and managers of SARATRANS, VNR Corporation and other railway
transport units to get an objective and accurate view. Through research, the
thesis has identified: Opportunities, challenges to be faced; the strengths and
weaknesses of SARATRANS which are especially important bases for the
optimal development strategy selection for SARATRANS in the period up to
2025 with a vision to 2030.
Fourthly, on the basis of the analysis results, environmental assessment
and investigation and survey results, the thesis uses modern and scientific
tools such as the SWOT matrix to formulate strategic plans; the QSPM
matrix to quantitatively evaluate and select the optimal development strategy