1 TABLES OF CONTENTS Introduction List of abbreviations List of tables and charts Part 1: Overview of Vietnam Natural Resources and Environment Corporation .7 1.1 Formation and development of Vinanren 1.1.1 General introduction about Vinanren .7 1.1.2 Foundation history 1.2 Major business areas 1.3 Organizational structure Part 2: Vinanren’s business results analysis 11 2.1 Core markets, products and services 11 2.1.1 Core markets and partners 11 2.1.2 Key products and services 12 2.2 Vinanren’s business results analysis .13 2.2.1 Business results in the period of 2012 – 2013 13 2.2.2 2012 – 2013 business results analysis 14 2.3 Strengths and weaknesses evaluation 15 2.3.1 Business activities and organizational structure .15 2.3.2 Using English in business .16 Part 3: Vinanren’s existing problems 19 3.1 Existing problems in company’s human resources 19 3.2 Suggested solutions to improve the quality of company’s human resources 21 Conclusion 22 References 23 INTRODUCTION In the context of international integration, Vietnam has entered the period of renewal The process of national urbanization and industrialization requires the massive exploitation of natural resources, causing series of environmental changes Environmental pollution becomes a big challenge that our country has been facing recently Vietnam Natural Resources and Environment Corporation (Vinanren) is a stateowned company operating mainly in the field of environmental resources The company has generated its competitive advantages by applying the world’s advanced technologies as well as encouraging research activities in order to create and grasp the latest technologies in efforts to maximize the company’s resources, ensure the national substantial development goal and protect natural resources and environment Being recommended and allowed by English Department – Vietnam University of Commerce, I have gratefully experienced as an intern in Administration Office of Vietnam Natural Resources and Environment Corporation After one month (from 05/01/2015 to 30/01/2015), under the valuable support and instruction of managers and colleges in the company, I was able to apply the knowledge obtained at university into practice, meanwhile collecting basic information to complete the internship report I would like to express my gratitude towards teachers at English Department – Vietnam University of Commerce as well as my managers and colleges in VINANREN Especially, I would love to express my sincere thanks to my beloved supervisor – Mr Nguyen Khac Nghia who has helped me a lot to fulfill the report I look forward to receiving comments and suggestions in order to perfect the paper Hanoi, February 01, 2015 Student Le Thi Phuong LIST OF ABBREVIATIONS Vinanren Vietnam Natural Resources and Environment Corporation No Number VND Vietnam Dong LIST OF TABLES AND CHARTS Image 1.1: Logo of Vinanren Diagram 1.1: Organizational chart of Vianren Diagram 1.2: Some typical partners of Vianren Image 1.2: Some key products of Vinanren Table 1.1: Company’s business result in the period of 2012 – 2013 (VND) Table 1.2: Revenues of major business fields (VND) Table 1.3: The state of labor use and number of workers paying social insurance Table 1.4: The worker’s qualifications until December 2013 Table 1.5: Indirect management team and its percentage over the company gross labor PART 1: OVERVIEW OF VIETNAM NATURAL RESOURCES AND ENVIRONMENT CORPORATION 1.1 Formation and development of Vinanren 1.1.1 General introduction about Vinanren Vietnam Natural Resources and Environment Corporation is a one-member limited liability company founded by Minister of Natural Resources and Environment under Decisions No 2268/QD-BTNMT and No 1135/QD-BTNMT Vinanren is a 100% state-owned enterprise under Ministry of Natural Resources and Environment Image 1.1 Logo of Vinanren The company has been established on the basis of restructuring existing business units in Ministry of Natural Resources and Environment, operating under the structure of parent - subsidiaries Components of Vinanren are: - Aerial Photo-Topography company (APT) Cadastre and Engineering Survey company (CESC) Geodetic and Topographic Division (GTD) (under Department of geology and minerals of Vietnam) These are three units specializing in mapping of Ministry of Natural Resources and Environment Vinanren is headquartered at No.51, Huynh Thuc Khang Street, Lang Ha Ward, Dong Da District, Hanoi 1.1.2 Foundation history On 4th November 2009, Prime Minister issued an official Document No 2012/TTgDMDN about approval for establishment of Vietnam Natural Resources and Environment Corporation On 27th November 2009, Minister of Natural Resources and Environment made Decisions No.2268/QD-BTNMT and No.2286/QD-BTNMT on official establishment of Vietnam Natural Resources Corporation and appointment of the Board of Directors On 30th June 2010, Minister of Natural Resources and Environment made Decision No.1135/QD-BTNMT which changed Parent company – Vinanren into a limited corporation owned by Ministry of Natural Resources and Environment Vinanren targets to become a Natural Resources and Environment Group by 2015 which is a 100% state-owned enterprise, operating under the parent - subsidiaries structure With VND 158 billion of charter capital and VND billion of legal capital, Vinanren directly carries out the duties of production, consulting services in the fields of environment, land and water resources, geology and mineral, hydro-meteorology, climate change and some other fields throughout the country and the world This is the only company of Natural Resources and Environment Ministry 1.2 Major business areas Vinanren mainly performs in such environmental fields as: - Survey and Mapping: Services related to aerial photography and processing, national meteor-hydrologic elevation network drawing , maps design for planning and managing public works, collection of natural resources and environment database, Land Information System (LIS), Geographic Information System (GIS) and other specialized information systems, gravimetric and cadastral networks establishment, mapping consulting services - Land Management: Activities including land use planning, oil investigation, legal consultancy in pricing for land and property on land, infrastructure development, land fund exploitation, construction material trade, house and industrial zone construction, real estate investment - Environment: Environment impact assessment, environment parameters calculation, environmental protection planning, waste water treatment technology research and design, environmental pollution solutions, environmental database collection - Geology and mineral, water resources: Geology mineral investigation, evaluation, mineral exploitation and trade, mineral import and export, water resources investigation and assessment, groundwater search and exploration, water use plan - Islands and marine resources, hydro-meteorology and climate change: Services related to basic investigation of marine resources and environment, master plan of sea zoning, observation and monitoring environment, hydrology and climate change 1.3 Organizational structure The Company’s organization system includes: - Board of Members consists of members without any special member - Board of General Directors includes people - Supervisory Board has examiner only - The Parent Company – Vinanren has different supporting divisions which are: Administration Office, Finance and Accounting Division, Planning and Statistics Division, Technique and Technology Division, Project Management Division, Science and International Cooperation Division, Business Development Board Vietnam Natural Resources and Environment Corporation Supporting Machinery Administration Office Finance and Accouting Division Planning and Statistics Division Technique and Technology Division Project Management Division Sience and International Corporation Division Business Development Board Branches in Da Nang and Ho Chi Minh City Business Units Enterprises and Centers Association Units Hai Duong APT-SERAPHIN Environment Joint Stock Company Hau Giang Waste Treatment Plant Board of Members Supervisory Board General Director Subsidiaries Southern Natural Resources and Environment Company (SERC) Survey and Minerals Company (SURMINCO) Natural Resources and Marine Environment Company (NAMENCO) Cadastre, Land Consultancy and Service Company (CLC) Company for Engineering Construction and Transfer of Environment Technology (ENVITECH E&C) Diagram 1.1: Organizational chart of Vianren The Company possesses branches in Da Nang and Ho Chi Minh City, and onemember limited liability subsidiaries with its 100% capital There are also 11 different business units and associations 10 PART 2: VINANREN’S BUSINESS RESULTS ANALYSIS 2.1 Core markets, products and services 2.1.1 Core markets and partners Vinanren is specialized in the fields of land, water, geology and mineral resources, environment, hydro-meteorology and climate change, survey and mapping and some other fields thorough the country Numerous projects are conducted in such several provinces as Cao Bang, Hanoi, Phu Tho, Ha Giang, Quang Ninh in the North, Quang Binh, Thua Thien – Hue in the Central and Ho Chi Minh City, Can Tho, Kien Giang, Dong Hoi, An Giang in the South of Vietnam Some typical partners of Vinanren are Vietnam Industrial Construction Corporation, PetroVietnam Finance Corporation, Kokusai Kogyo Co Ltd, JFE Engineering Corporation, Halla Energy and Environment Co Ltd, Korea Environment Corporation… Diagram 1.2: Some typical partners of Vianren 11 2.1.2 Key products and services Vinanren’s key products consist of various types of topographic and cadastral maps of scale 1/10000, 1/20000 There are also numerous geological maps, planning maps, specialized maps of different scales, aerial photographs for establishing and controlling public works Especially, databases for storage, maps management and administrative boundary documents were well designed The unit has successfully built up its Geographic Information System (GIS), Natural Resources and Environment Information System, Digital Terrain model (DTM) It is necessary to mention series of auxiliary devices for technologies of environmental, waste and water treatment Image 1.2: Some key products of Vinanren 12 2.2 Vinanren’s business results analysis 2.2.1 Business results in the period of 2012 – 2013 In order to make an overall assessment of the operation efficiency of Vinanren in 2012 and 2013, the following business results tables are used as a foundation to evaluate No 10 11 12 13 14 15 Expenses Code Revenues from sales of goods and services Deducted amounts Net revenue from sales of goods and services Cost of goods sold Gross profit from sales and services Revenue from financing activities Financial costs Including: In expense Business management cost Net profit from operations Other incomes Other costs Other profits Profit before tax Business income tax expense Profit after tax 01 02 10 11 20 21 22 23 25 30 31 32 40 50 51 60 2013 (VND) 2012 (VND) 952,746,906,465 778,550,238,416 1,359,602,534 317,250,524 951,387,303,931 778,232,987,892 815,730,972,693 135,656,331,238 1,821,535,894 43,736,129,507 43,707,061,136 84,817,887,372 8,923,850,253 11,272,007,005 8,753,848,923 2,518,158,082 11,442,008,335 3,520,904,064 7,921,104,271 641,134,398,824 137,098,589,068 876,449,169 58,584,266,621 58,137,176,621 72,197,827,958 7,192,943,658 1,319,058,826 94,504,278 1,224,554,548 8,417,498,206 2,052,490,087 6,365,008,119 Table 1.1: Company’s business results in the period of 2012 – 2013 N o Business fields Survey and mapping Land Resources Environment Climate change, geology, mineral, water services and other services Total 13 2013 (VND) 2012 (VND) 113,532 620,537 102,328 190,361 473,863 41,896 114,989 72,118 951,384 778,238 Table 1.2: Revenues of major business fields 2.2.2 2012 – 2013 business results analysis Datas presented in the tables above have indicated that the Company has successfully managed its business operations Almost features in 2013 recorded a significant increase compared to 2012 Profit of Vinanren was mainly generated from mapping and land management services Revenue and other incomes reached VND 964,019 million in 2013, up 123% yearon-year (VND 779,869 million in 2012) 2013 pre-tax profit recorded VND 11,442 million, rising 136% compared to 2012 Pre-tax return on sales and after-tax return on equity went up from 1.08% and 4.51% to 1.18% and 5.89% respectively This clearly shows that little after-tax profit increase is not compatible with the strong growth of revenues and taxes The features of revenue and net profit steadily went up while business management costs have significantly reduced, indicating the continuously reinforced management efficiency of Vinanren 14 2.3 Strengths and weaknesses evaluation 2.3.1 Business activities and organizational structure The first biggest strength is that the mapping works in the past years are quite stable High liquidity capital from state budget enables the Corporation to provide jobs and pay salaries for employees, ensuring its business stability in the tough economic situation Moreover, Vinanren possesses a well-trained team with great ability to apply latest technologies into production and management One of the biggest advantages of Vinanren is probably the workforce that is skillful, diligent and dedicated to works Vinanren often gives amendments to internal management regulations in order to reduce risks, avoid losses, minimize operating costs and ensure the worker’s benefits Additionally, the mobilization and distribution of capitals, assets and human resources are effectively carried out in every unit The Company also regularly examines the reliability of figures in finance reports as well as the other reports, aiming to find out and propose solutions to all problems in operating systems of subsidiaries During its 4-year development, Vinanren has obtained a lot of experiences in organizing several substantial environmental projects such as mapping projects with the cooperation between Vietnam and Lao, Vietnam and Cambodia, marine geological investigation projects, reservoir management projects for hydropower plants It is also noted that such advanced technologies and devices as GPS, DGPS, LODG, RTK, GIS and other waste water treatment technologies used at Vinanren all meet the regional standards 15 However, it is necessary to frankly admit that there are also some obstacles that badly affect the company’s business efficiency Firstly, it is the parent – subsidiaries operation The roles of Parent Company remain unclear The operating system, business methods and specialized sectors of Parent Company are simply duplicated in its business units and subsidiaries Secondly, the imbalance between sectors remains a difficulty in company’s workforce A majority of 80% labor specializing in mapping and land management has little experience in doing other businesses This redundant workforce definitely needs transferring when mapping and land use right registration projects finish Thirdly, the company’s outdated technologies and old-fashioned machines are not compatible with its leading position in survey and mapping Vinanren is hiring some important pieces of equipment for Lidar scanning Furthermore, the company has not drawn any feasible plan for additional charter capital despite the lack of capital Various big amounts of loans and interests are badly affecting its business efficiency Especially, two subsidiaries without headquarters need to rent offices resulting in bad impacts on the total profit and the upcoming privatization process of Vinanren 2.3.2 Using English in business In the past few years, Vietnam’s economy has strongly integrated into global one, causing increasing demands of high quality human resources that has not only a thorough understanding of specialized affairs but also good foreign languages and soft skills Nowadays, English plays an extremely important role in every enterprise It represents a key offering more opportunities to expand business scale, seek more investors, partners and exploit new markets from which improve profitability and production efficiency 16 Performing mainly in environment sector, Vinanren uses English the most in minerals and water resources exploitation activities The company has lately started to seek and maintain relationships with foreign investors Employees of the company are thus trained to negotiate, write emails, communicate and conduct transactions in English Currently, more than half of them are able to fluently communicate and write in English, making cooperation with foreign partners easier than ever The Company’s official website, www.vinanren.vn is designed and displayed in English and Vietnamese, helping not only Vietnamese but also foreigners easily access and search for information about Vinanren To this end, there has a team good at English in Science and International Cooperation Division, specializing in writing articles on Vietnamese geography, population, economy, environment through their regular actual surveys The articles will then be examined through many steps The approval ones will be officially posted on www.vinanren.vn Furthermore, designing website and management software system as required by customers is also implemented completely in English by specialists at Technique and Technology Division However, it is necessary to acknowledge that the English proficient staffs of Vinanren are mostly students from English Departments of different universities, whose working schedule is unstable They only occur in a short time and rarely present in the office This hinders a lot when there has sudden work related to English Almost IT engineers and office staffs are only able to read specialized English but effectively communicate and write in such language These obstacles have many times caused company not to immediately reply foreign partners due to the lack of English proficient staff, resulting in decreasing the unit’s image in the eyes of international friends Being aware of the negative reality, the leaders of Vinanren has planned out more English courses alongside professional knowledge training for all employees in the xompany Currently, it planned to connect with some English training centers in Hanoi to build up some commercial English courses Accordingly, the courses will focus on 17 teaching English communication, negotiation, email writing, contract drafting in order to turn the language into an effective tool for the business Vinanren also arranges to let employees take part in conferences on sharing learning English experiences held by domestic and foreign organizations, meanwhile support its best in finance, working conditions The company also applies more policies to encourage learning English by offering higher salaries to all officers and staffs so that it is easier and more exciting for them to participate in the activities 18 PART 3: VINANREN’S EXISTING PROBLEMS 3.1 Existing problems in company’s human resources The feature of human resources plays an extremely important role in the company’s business operation The total official number of employees until 31 December 2013 reached 3032, including 82 upper graduates and 118 graduates accounting for 2.7% and 3.9% respectively The remainder of associates, workers is quite high, showing the low quality of human resources A large number of graduates and workers indicate that the requirements of labor recruitment are not appropriately set up, resulting in the decrease of management capacity and business efficiency as well No Units Parent Company CERS SURMINCO CLC NAMENCO ENVITECH E&C Total 2012 (people) 1690/1399 1246/928 228/195 456/308 179/135 222/134 4039/3099 2013 (people) 1710/1286 1188/896 237/198 587/357 190/140 260/155 4172/3032 Table 1.3: The state of labor use and number of employees paying social insurance In order to obtain greater achievements in modern technologies and devices research for mapping, mineral exploitation, Vinanren is in need of more excellent specialists who are masters, doctors than the current number of 45 No Units PostGraduates Graduates 19 College Diploma Vocational Diploma Drivers Parent Company CERS SURMINCO CLC NAMENCO ENVITECH E&C Total 45 8 82 407 248 72 118 37 82 964 38 18 10 24 10 109 504 471 76 166 84 50 1351 292 152 32 41 526 Table 1.4: The employees’ qualifications until December 2013 The number of employees specialized in mapping and land management accounts for 80% of the total There are 10% of labors major in economy and finance, 4% in environmental sector, 6% in geology, construction, information technology and others This shows the large distance between labors in different fields No Units Parent Company CERS SURMINCO CLC NAMENCO ENVITECH E&C Total 2012 Number Percentage (people) (%) 278 19.8 178 19.2 56 28.7 46 14.9 28 20.7 29 21.7 615 19.8 2013 Number Percentage (people) (%) 280 21.8 169 18.9 57 28.7 64 17.8 28 20 43 27.7 640 21.2 Table 1.5: Number of indirect management team and its percentage over the company gross labor Although mapping and land management possesses the biggest number of employees, its revenue tends to decease recently These employees thus must be transferred and cut down in order to ensure the operation efficiency Moreover, the indirect management team remains high It results from the fact that officers at Board of Members, General Director and supporting divisions did not put the proper attention to the management activities Some subsidiaries have not headquartered yet, also causing this team to increase 20 III.2 Suggested solutions to improve the quality of company’s workforce Firstly, Vinanren should focus on developing high quality human resources whose majors are information technology, environment, geology and minerals This workforce is not large enough to meet the development’s requirements nowadays Secondly, a part of mapping worker should be transformed to work in the related areas which are in need of more labors such as technical services of researching, collecting environment resources database, GIS… Furthermore, it is necessary to immediately introduce new policies to support talents and attract more specialists for expansion of newly-developed fields which bring high profitability such as geology survey, mineral exploitation Moreover, training plans for new officer generations who meet the company’s requirements should be carefully organized Additionally, specialization and coordination process should be well-implemented The company needs to avoid distributing its resources by regions Finally, Vinanren should support its subsidiaries in growing their key business areas to ensure the internal uniform evolution Reduce the indirect management team by providing offices, premises for all units CONCLUSION The key business units of Vietnam Natural Resources and Environment Corporation are leading state-owned companies which have been established and developed for a long time in the specialized field Training managers and technical staffs who are competent, professional, dynamic, creative and highly adaptable is the key for Vinanren to accomplish the goal of becoming a strong National Natural Resources and Environment 21 Group with adequate capital capabilities, human resources and technologies to diversify the business activities During one month doing the internship as an office staff at Vinanren, I possessed the a opportunity to apply the knowledge obtained at university into reality and learn more about styles, attitudes, methods of working, communication in business environment, generating valuable experiences that helps me give out the clear direction for my future career Through my experiences obtained during the one-month internship and my knowledge background, I conducted this report in order to figure out some existing problems at the company I hope that it would contribute to the unit’s development in the upcoming time I would love to give my sincere thanks to my beloved supervisor – Mr.Nguyen Khac Nghia, and all managers and colleges at Vietnam Natural Resources and Environment Corporation for helping me to accomplish this report Hanoi, February 01, 2015 Student Le Thi Phuong 22 REFERENCES We would like to express our gratitude to the following researches for providing the very useful information sources so that we could complete this study: Vietnamese Ministry of Natural Resources and Environment, Organization Restructuring Plan for Vietnam Natural Resources and Environment Corporation Vietnamese Ministry of Natural Resources and Environment, 2013 Financial Report of Vietnam Natural Resources and Environment Corporation www.vinanren.vn Richards, Jack C Developing classroom speaking Activities, from Theory to Practice http://professorjackrichards.com Gillham, B ( 2000 ), Developing a Questionnaire, New York: Continuum Gillham, B ( 2000 ), The research Interview, New York: Continuum 23