Tài liệu Building a plan for managing changes in vietfracht

UPPSALA UNIVERSITÉT & VNU UNIVERSITY OF ECONOMICS & BUSINESS ________ ______ __ "k * -k ____________ UPPSALA UNIVERSỈTET MASTER THESIS OF MPPM Building a plan for managing changes in Vietfracht Author: Ngo Xuan Hong Supervisor: Prof. Dr. Lars Torsten Erikkson Locaì Supervisor: Dr. Do Tien Long Class: ỈMPPM INTAKE 7 Hanoi, January - 2015 ACK NO W LED G EM EN T During 24 years working at Vietfracht, with 10 years o f being a member o f the company’s directorate, I have always hoped to vvrite a scheme for Vietfracht’s development in the íuture. Hortunately, with the knowledge that I learnt from the teachers at MPPM 07 course and especially with the help and encouragement from Prof. Dr. Lars Torsten Eriksson (Uppsala University, Svveden), Dr. Do Tien Long (VNU University o f Economics and Business, Hanoi National University), with the urge o f changing Vietfracht according to the govem m ent’s businesses restructuring policy. Today, I have íìnished the essay “ Building a plan for managing changes in Vietíracht” and I hope it will be an important document to guide Vietfracht through crisis and continue to grow in the time vvhen Vietnam is signiĩicantly integrating in the w orld’s economy. Pirstlv, I would love to express my sincere gratitude to Prof. Lars Torsten Eriksson and Dr. Do Tien Long, who directly guided and helped me to complete this Master Program in Public M anagement’s thesis. I aỉso vvant to send my thanks to the teachers; VNƯ University o f Economics and Business’s (Vietnam National University’s) administrators, Uppsala University (Sweden); leadership and staffs at Center fo r International Training and Educatiotr, triends, colleagues who helped me during the time I studied and completed the thesis. I express heartíelt thanks to Vietfracht’s board o f directors, managers and staffs, the companies, organizations and individuals... that assisted me in collecting datas and documents for researching and vvriting the thesis. Finally, I am grateful for my family and iriends’ encouragement and support, vvhich helped me focusing on researching and completing my thesis. Many thanks to you! Hanoi, November lOth, 2014 VVriter Ngo Xuan Hong Abstract Title: Building a plan fo r nianaging changes in Vieựracht Level: Final assignment fo r M aster Program in Public Management A uthors :NgoXuan Hong Svvedish supervisor: Prof. Dr. Lars TorstenErikkson Local supervisor: Dr. Do Tien Long Date when the thesis is presented: 2014 - December Aim: The research creates plan for developing Vietỉracht in the future. In detail, the research is to analyze the present situation o f Vietfracht, things that Vietíracht expect to change in the future, reasons for the changes, support and protest forces tovvard the changes, the capacity and willingness o f Vietfracht’s leaders in conducting the changes, the mechanisms and measures ưsed to support the changes and the plan that Viettracht need to follow to achieve tuture changes. M ethod:T he research uses secondary data from the íìnancial statements, annual managem ent reports o f Vietữacht, reports on reviewing the World Economy and Vietnam ese Governm ent Reports on Vietnam Economy and Society. Moreover, the research ưses primary data from interviews o f Vietfracht’s key em ployees and leaders to clarify the support forces, the protest íorces in the changing process, the capacity and the vvillingness in changing o f V ietfracht’s leaders, and strengths, vveaknesses, opportunities and threats o f the Corporation. The researcher uses: (1) MIO Model to have a general insight on present situation and analysis o f the future o f Vietíracht; (2) The PEST framework to analyze how political tầctors, economic tầctors, social íầctors and technological tactors are changing and are likely to change in the future then draw out implications for Vietfracht bascd on those analysis; (3) SWOT analysis to analyze strengths, weaknesses, opportunities and threats o f Vietfracht,from that, it can help to choose a suitable strategy for the changes in the íuture; (4) The Force Field Analysis Method to clariíy the support tbrces, the protest tbrces in the changing process, the capacity and the vvillingness in V ietfracht’s leader change; (5) The Change Kaleidoscope to understand the capacity and vvillingness o f Vietfracht’s leaders in conducting these changes, the mechanism s and measures that are used to support these changes; (6) The C hange Model including 8 steps o f Kotter (1995) to build the plan for changes o f Vietữacht. R csult & C oncIusions:L eaders o f Vietfracht recognize that the company needs to conducts five changes in the future. Firstly, V ietữ acht maintains and improves business operations o f sea transport sector at present by assigning additiona! tasks to the divisions or departments o f Container agencies in branches and subsidiary companies in order to tìnd out n e w c ustom ers for the com pany's Container tleet. Secondly, the Corporation gradually liquidates and sells existing dry cargo vessels o f the C o rporation w ith p rio ritiz in g old vessels hav ing p o o r technical condition and vveak capability. Thirdly, it applies methods o f loan purchase or hire purchase o f vessels in order to form and d evelop the inland Container transport vessels, and an initial amount o f at least 02 Container ships under 15 years old and 700 TEU size built by Japan or Europe. The Corporation sets up the inland Container shipping routes with w eek ly schedules and it m ust associates with Container vvarehouses system o f the C orporation in Haiphong, Danang, Quynhon and Hochiminh City. Fourthly, the Corporation continues to gradually choose human resources with high experience for operation, m an ag em en t, Container ship conduction in order to meet complex jo b s for sea transport block and focus much on training and retraining for existing employees to meet vvork requirements. Lastly, Vietíracht positively uses the modern application o f information technology and develo ps Service quality m anagem ent system to enhance the competitive ability in the maritime requirements o f customers. industry and meet the increasing Suggestions fo r íu tu re research:use the research methods having stated in this thesis to: - Hxtend the scope o f researching with a group o f Vietnam’s shipping companies. From that, build a plan o f restructuring the VietnarrTs shipping companies to get over the global economy crisis, especially in this situation vvhen Vietnam’s economy is still unstable and the companies's opportunities to approach the sources are limited. - Research more about the leader’s role in Vietnam’s shipping companies’ restructuring process. Focus more on analyzing of: (1) orientating the changes hy building long-term plans and strategies; (2) controlling all effects and manage the risks in the vvhole restructuring process. Contribution o f the thesis: The thesis has some contributions. Firstly, by building the plan for management changes, Vietíracht certainly will face the diffĩculties to achieve new successes, become the leading company in maritime and logistics industry in Vietnam, and be able to compete with regional logistics enterprises. In other words, the thesis helps managers o f Vietfracht to have a valid reterence instrument for proposing a plan o f management changes in the future. Secondly, there are a few researches o f studying on the Vietnamese maritime industry in general and Vietíracht in particular. Thereíore, the thesis contributes to an increase in literature o f evaluating the Vietnamese maritime industry in general and planning management changes o f Vietíracht in particular. Thirdly, the thesis becomes a research and a construct for restructure project o f the Vietnamese state-owned shipping companies. Fourthly, the thesis contributes to acceleration o f the plan tor restructuring the State Capital Investment Corporation (SCIC). Lastly, the thesis is an important document to help investors have necessary information to make right investment decisions on Vietíracht. Key w ords: Vietíracht; Changes; Plan; Maritime; Logistics; Future & Leadership. 3.3.2 The activities for change.................................................................................... 40 Chapter 4 C on clu sion s.............................................................................................. 47 4.1 Some reílections on the theory used ....................................................................... 47 4.2 Retlections on the practical contribution to Vietíracht and other companies.... 48 4.3 My reílections on lessons leaming in research....................................................... 50 Reterences........................................................................................................................ 55 Appendix 1.......................................................................................................................58 Ọuestionnaires used in intervievvs............................................................................. 58 Appendix 2 .......................................................................................................................59 Results o f interviews o f leaders..................................................................................59 TABLE AND FIGURES TABLE Table 1: Brief results o f business operation o f Vietíracht from 2008 to 2013 .3 Table 2: Comparison tbusiness operation results o f Vietfracht with its competitors in 2 0 1 3 ....................................................................................................... 6 Table 3: The sea transport fleet o f Vietfracht........................................................ 15 Table 4: PEST analysis o f the extemal business environment o f Vietfracht..28 Table 5: SWOT analysis o f V ie tử a c h t....................................................................31 FIGURES Figure 1: Total revenue, total cost and total proíìt from 2008 to 2013 of V ietíracht..........................................................................................................................4 Figure 2: Vietfracht’s market in V ie tn a m ................................................................ 7 Pigure 3: The eight contextual features o f Change K aleidoscope................... 41 1 Chapter 1 Introduction 1.1 An overvie>v o f Vietíracht and its market According to Vietíracht (2014a), detailed background o f Vietửacht as follows: Sea transport industry plays a vital role in the socio-economic development o f Vietnam because through large amount o f exports and imports by sea, it contributes to trade promotion for Vietnam. Vietíracht was formerly named Vietnam Foreign Trade Transportation Corporation, known as the stateowned company and established in 1963. In October 2006, the Corporation was changed to the joint stock Company, and named Transport and Chartering Corporation (Vietữacht). Vietữacht was offícially listed on the Hanoi Stock Exchange with stock Symbol named VFR in 2006. With over 50 years o f operation and grovvth, Vietíracht has become one o f the leading shipping íìrms in Vietnam. The leading position in operating the shipping íìeld, the Corporation has achieved many value avvards from the Government o f Vietnam such as First Class Labor Medal, Third Class independence Medal, Ọualitìed and Prestigious Enterprise ot' Vietnam, Labour Heroic Unit, The National Golden Cup tor Social Progress and Sustainable Development and The Vietnam Famous Trademark Winner. During the period o f 2005-2015, Vietíracht will enhance its business operations in terms o f diversitìcation o f services, upgrading means o f transportation, strong improvement o f office facilities, infrastructure, and systems o f informatics, strong development o f human resources, and enhancement o f establishment o f joint stock, joint venture and subsidiary íìrms. Moreover, the Corporation always enhances quality services to satisíy increasing needs o f customers and constantly strengthen its business activities with its partners around the world. Business scopes o f Vietíracht are to transport goods by sea and by land, shipping, logistics and forwarding agents for air, sea and land, direct import and export o f goods for transportation industry. Moreover, the company also conducts business activities related to chartering and brokerage services, intem ational express Service, booking agents for dom estic and international airline, ship-chandler, entertainment services for passengers, tallying goods, maritime brokerage, warehousing and accommodations for lease, real estate business, leveling ground suríầce o f mineral exploitation and construction, and customs clearance services. The global íìnancial crisis and economic downtum from 2009 to the present have been evaluated as the vvorst one since the Great Depression o f the period o f 1929 - 1933. Maritime industry around the world has suffered serious crisis and many large shipping companies have gone bankrupt or needed to have govemment bailout to survive. One o f the main reasons is the imbalance o f demand and supply. In the global economic crisis, massive development in a sea transportation fleet vvhile there is only a lovv increase in needs of transportation. In Vietnam, sea transportation companies have faced very serious difficulties and many companies out o f them have gone hankrupt. Like see transport corporations, sea transport fleet o f Vietfracht has had prolonged difficulties intluencing on lives and works o f its employees and beneíits o f its shareholders and its other stakeholders (Vietíracht, 2013). This becomes a motivation íbr Vietíracht to build the plan íor management changes in the Corporation in order to improve and enhance its protìtability in the. The Vision o f Vietíracht is to alvvays try to become a leading business company in Vietnam with a variety o f business fields, especially main business activities íbcusing on maritime field. In other words, Vietfracht expects to become one o f the leading shipping corporations in terms o f high business performance, high quality services, high brand name, and high trust in the maritime industry in Vietnam. Business objectives o f Vietíracht are to focus on providing high-quality services for customers, create good jobs for citizens where it is operating, create positive working environment for all its 3 em ployees to enhance physical resources and m ental encouragem ent for its employees, increase its employees’ working pertbrmance, provide many beneíìts for its shareholders, protect the environment, enhance the economic and social development in communities vvhere it is operating, comply with all regulations and laws o f Vietnamese government and balance beneíìts o f all its stakeholders. Moreover, business principles o f the Corporation are to pay much attention to innovation, renovation in business development, proíessional business activities according to international laws, enhancement o f toreign relations and increases in business co-operation with its partners so that these things enhance its business períbrm ance, m aintain and develop its brand name in its industry, ceaselessly increase stock values for its shareholders and benefits for its other stakeholders. In 2013, the Corporation has a very srnall proíit o f business operation vvith VND 220 million and other iníbnnation o f tìnancial results is indicated in table 1. Table 1: Brief results of business operation of Vietíracht from 2008 to 2013 Kinancial iníormation 2008 2009 2010 Total revenues (VND) 251.577,000.000 262,113,000,000 297,470,000.000 Total costs (VND) 218.822.000.000 245,400,000,000 Total proílts (VND) 32,755.000,000 16,713,000,000 2012 2013 552,210,000,000 432,630,000,000 354,840,000,000 271,730,000,000 438.260.000,000 428.950,000,000 354,620,000,000 25,740.000.000 113,950,000,000 2,710,000.000 2011 220.000.000 Source: Annual reports o f Vietíracht from 2008 to 2013 According to annual reports o f Vietíracht from 2008 to 2013, although the global economic crisis has occurred since 2008, total revenues o f the company fast increased because the company had many suitable and effective business approaches such as tocusing on effective business operations, and enhancing marketing strategies to enhance customer base. Hovvever, its total revenues from 2011 to 2013 strongly reduced because the global economic crisis had high iníluences on Vietnam in general and Vietíracht in particular. 4 From 2008 to 2011, total costs o f the company fast increased but its total cost from 2011 to 2013 strongly reduced thanks to control and management o f business costs. Total proĩits o f the company in 2009 reduced in comparison with 2008 but total protìts o f the company started increasing from 2009 to 2011 with high speed. Hovvever, from 2011 to 2013, total proíìts started reducing strongly. In general, the company had high proíìts from 2008 to 2011 but it had ineffective proíits in 2012 and 2013. The graph 1 indicates the detailed relationship o f total revenues, total costs and total prolìts of Vietíracht. In short, the company started having ineffective íĩnancial results since 2012 and thus changes become necessary tbr Vietfracht to develop its business growth in the future. Figure 1: Total revenue, total cost and total proíit from 2008 to 2013 of Vietĩracht 5 600, 500, 400, □ Revenu 300, ■ Cost □ Protit 200 100 , 2008 2009 2010 2011 2012 2013 The year 2013 generally completed most plans proposed in 2012. In terms o f costs, the corporate reduced management costs o f 27.2 percent (about VND 1.57 billion) in comparison with 2012. In tenns o f profits, services including warehouses, freight forwarding, offices for rent, and íĩnancial investment are profítable and the business operation tlelds signitìcantly contributed to its general proíìts. However, inaritime transport still continueđ to lose in 2013. With proíits o f VND 2.2 million, the Corporation had a very signitìcant decrease o f about 92 percent in its proíits compared to 2012 (about VND 2.7 billion). In the Vietnamese maritime industry, all shipping companies faced signiíìcant difficulties in their business activities related to maritime services because o f bad effects o f the global economic crisis since 2009. Hovvever, in comparison with other shipping companies in Vietnam, business operation results o f Vietfracht in 2013 were in the good level. The stock price o f the Corporation is in the high level in compared to the average level o f the maritime industry (see table 2). 6 Table 2: C om parison ibusiness operatỉon results o f Vietíracht with its competitors in 2013 Kinancial V ietĩracht v osco 150,000,000,000 1,400,000,000,000 354,840,000,000 2,065,000,000,000 1,109,000,000,000 681,000,000,00( 220,000,000 -198,000,000,000 -223,000,000,000 - 107,000,000,00( Vitranschat Vinaship iformation Share Capital 590,000,000,000 200,000,000,00( (VND) Total revenues (VND) otal profíts (VND) Source: Vietfracht (2013) According to Vietíracht (2014b), the Corporation has 09 branches and representative offices that ensure the availability o f its services serve all customers in Vietnam. There are 08 markets in Vietnam that Vietfracht has a strong presence including Hanoi City (its headquarters), Hochiminh City, Vungtau City, Ọuangninh province, Haiphong City, Danang City, Quangngai province and Ọ uynhon City. 7 Figure 2: Vietfracht’s markct in Vietnam Source: Vietĩracht (2014b) 1.2 Research purpose and questions 1.2.1 Research purpose On the basis o f assessing the current situation o f Vieítracht, the researcher can tìnd out the strengths, vveaknesses, opportunities and threats to create a plan for developing Vietírachtin the future. The researcher can apply the learnt theories and actual experience to propose the solutions to improve Vietữacht business pertormance in the future. 1.2.2 Research questions The research needs to ansvver tìve research questions as follows: 1. What is the present situation o f Vietfracht? 2. What does Vietíracht expect to change in the future? And why does Vietíracht need to conduct the changes? 3. What are support and protest íòrces in these changes? And vvhat are the capacity and vvillingness o f Vietfracht’s leaders in conducting these changes? 4. What are the mechanisms and measures that are used to support these changes? 8 5. What pracess or plan does Vietiracht need to follow to achieve íùture changes? 1.3 Research data and methods The research uses both secondary data and primary data to ansvver research questions. Secondary data is the data available tơ the researcher because it has been collected by other researchers for other research aim (Saunders et al., 2009). There are three types o f secondary data consisting o f data collected from multiple sources, documentary data and survey-based secondary data. Therefore, through use o f the secondary data, the researcher can gain some advantages such as the researcher saves time and money to collect the secondary data, the researcher does not faces problems relevant to geography and ti me and the researcher can assess the secondary data beíore using it (Srivasta and Rego, 2011). The research uses secondary data from the íĩnancial statements, annual management reports o f Vietửacht, reports on revievving the World Economy and Vietnamese Government Reports on Vietnam Economy and Society. The researcher does not face any difficulties related to tlnding the secondary data because it is available to the researcher. Moreover, the secondary data is valid and reliable such as the tìnancial statements, and annual management reports o f Vietíracht are audited by extemal auditors and the World Economy and Vietnamese Government Reports on Vietnam Economy and Society are provided by the Vietnamese govemment. Primary data is directly gathered by a researcher through various tool o f collecting data such as questionnaire and intervievvs. The researcher collects primary data through interviews because the technique o f collecting data helps the researcher has deep information about study subjects (Biggam, 2008). The researcher conducts intervievvs o f Vietfracht’s key employees and leaders to clariíy the support íorces, the protcst torces in the changing process and the capacity and the vvillingness in changing o f Vietfracht’s leaders. In addition, through intervievvs o f Vietfracht’s leaders, the researcher can deeply understand strengths, vveaknesses, opportunities and threats of the Corporation. The researcher intervievvs 04 leaders o f VietlVacht inclnding 03 deputy directors, and one chairman o f board o f directors and 06 employees o f V ietữacht working at Sea Transport and Logistics block, and Services block. According to Kumar (2002), there are sometimes unexpected elements that can intluence on the quality o f iníormation collected in intervievvs. For example, ambiguity in wordings o f questions in interviews, the nature o f the interaction betvveen interviewees and interviewer, applied instruments o f recording data, physical setting o f collecting data and the aim o f the interaction between interviewer and interviewees can intluence on the quality o f responses during the interview. The primary data is provided by leaders and employees o f Vietfracht who have great experiences and deep understanding about the current business situation o f Vietíracht. In during the interviews, the researcher uses note-taking approach to record information or primary data provided from interviewees and interviews the leaders and employees o f the com pany in comíortable physical setting so that the intervievvees feel com tbrtable in expressing the iníòrmation from thcir real thoughts. The aim o f the thesis is build a plan for development o f the Vietíracht in the ÍTiture. Thereíore, leaders and employees express their real ideas about the current situation o f V ietữacht and then all their ideas become valid and reliability to use in the thesis. Aíter collecting primary data, the researcher analyses the data objectively to achieve valid research íìndings. However, intervievvs o f 04 leaders o f Vietfracht and its 06 employees cannot cover all opinions o f all leaders and employees o f the company. 10 Chapter 2 Analysis o f present situation and expected íuture changes o f Vietírachtby using MIO Model The MIO Model is widely used for the management to have a general insight on present situation and analysis o f the future o f their company. The model is developed by Hriksson and H auer (2004) to find three interdependent issues including extemal elements (market), the positioning o f products or services (ỉnteraction) and internal element (organization). 2.1 A description o f the present situation 2.1.1 The present market According to Vietíracht (2013), the w orld’s economy had a slight recovery in 2013 after the period o f signitìcant econoinic crisis with the 2012 year o f the most signiíìcant difficulty o f economy. The global Gross Domestic Product (GDP) in 2013 raised about 2.4% and the increase was the first one after many years ceaselessly reduced. The slight economy recovery occurred in many areas around the world in 2013. For example, in the United States, its economy had signiíìcantly positive changes in 2013 such as unemployment rate signitìcantly reduced, the u.s stock market became cffervescent, business profits o f companies in the United States had increases, and real estate market started recovering. In Japan, its economic recovery was quite high in 2013, such as export o f the country increased quite highly, proíìts o f companies in the country highly increased, stock prices in the Japanese stock market increased about 50 percent. The G D P o f European areas íìrst increased after the decade o f reduction such as the United Kingdom increased 1.9 percent that was the highest rate during the last six years. In addition, the economy o f emerging countries in Asia had slight economic recovery in 2013. Hovvever, the level o f the global economic recovery is not still considered as firm recovery because o f risks and unstable elements. Issues that draw much attention o f shipping companies in Vietnam are political conílicts and military 11 contlicts betvveen China and North Africa, political conflicts in Northeast Asia, and recently serious political crisis in Ukraine. The global economic crisis and the vveaknesses o f support policy o f the Vietnamese govemment has made inílation rate highly increase, and has signitìcantly affected stability o f macroeconomics. Moreover, they have made the Vietnamese economic slowly increase and have caused many difficulties for business activities and Vietnamese people’s life. The global maritime market in 2012 was to íầce difficulties and the maritime industry had the highest crisis in the year. ỉn 2013, the global maritime industry faced difficult situation o f reducing maritime demands o f customers. The Baltic Dry Index (BDI) was about 800 points in the íirst three quarters o f the 2013 year in comparison with 647 points o f the year 2012. In the íburth quarter o f the 2013 year, the BDI started slightly increasing. However, the slight increase o f the BDI was not stable and only íbcused on segmentation o f large vessels like Capsize and Panamax in 2013. Moreover, the maritime markets for the smaller size like vessels o f Vietíracht had very lo\v recovery and the maritime m arkets for tankers and Container were bad in 2013. In the 2013 year, oi 1 prices were high and maritime costs increased. The difficult situation caused many difficulties for maritime companies around the world including Vietnam. In Asia, one the largest íleets o f Japan - Nippon Yusen Kabushiki Kaisha (NYK) in the fírst three quarter o f the 2013 year had losses o f 2.5 billion Yen in terms o f Container transports. Other brand names such as Yang Minh, and Evergreen in Taivvan faced many diffículties in business activities and had high losses. One o f the largest brand names in the maritime industry o f South Korea - Hanjin faced many signiíìcant difficulties such as losses o f u s s 391 million in the first three quarters o f the 2013 year and currently paying very high interest rates for borrowing previous bank loans in order to invest in too m any vessels that had conducted in the previous period o f economic crisis. In China, in 2013, two o f the largest brand names in the 12 maritime indưstry including cosco and China Shipping íầced many similar difficulties and the Chinese governm ent required the two fleets to restructure business operations. In Vietnam, vosco had losses o f VND 194 billion, V IT R A N C H A R T had losses o f VND 224 billion, VINASHIP had losses o f VND 108 billion and Dong Do Company was delisted in thc Vietnamese Stock Exchange because its consecutive losses in three years with an amount o flo s s m oney h ig h er than share Capital (Vietíracht, 2013). Vietnam vvith the developing economy faces many tlerce competitions in the globalization era and the country has limited human resources to conduct developm ent o f social security and national deíence security. Hovvever, the Vietnamese governm ent has had timely decisions o f adịusting objectives and tasks that tocus much attention to reduction o f inílation rate, stability o f macroeconomics. The adjustment o f the Vietnamese govemm ent has helped the Vietnam ese econom y recover. Some economic targets o f the year 2013 included the G DP increased 5.42 percent, an increase 5.25 percent in comparison with the last year, the Consumer Price Index (CPI) was 6.04 percent (the lovvest level in the last ten years), total export and import turnover increased 15.4 percent with trade surplus Foreign Direct Investment (FDI) was us$ 21.6 us$ 0.86 hillion, the billion (the highest level in the last five years), the íòreign exchange rate vvas quite stable (domestic currency only reduced 1 percent in comparison with the last year), the foreign currency reserves increased, interest rates reduced in the year vvith 7-8 percent in comparison vvith 14% in the last year, the Vietnamese stock index grevv about 20.62 percent (the most highest stock grovvth in Southeast Asia and the real estate market started recovering (Vietfracht, 2013). Although Vietnam had the economic growth in 2013, the quality o f economic growth o f the country is evaluated as the unstable one, and the competition capability o f the economy is low because Vietnam is facing many disadvantages such as over-expenditure o f national budget, high public debts, 13 very slovv economic restructuring process. Moreover, Vietnam faces many difficuỉties in terms o f restructuring business activities o f the corporations, state-owned companies, building useful business environmenl for companies in Vietnam. As a result, there vvere 61.000 companies that were dissolved or stopped their business activities temporarily in 2013 and the result was the same figure in 2012. In short, the Vietnamese macroeconomics had a slight recovery and tầced many significant diííìculties in 2013 (Vietfracht, 2013). V ietnam’s fleets in its maritime industry have small scale. In other vvorlds, the country’s sea port netvvork is small scale with inefficient distribution. Most o f big ports are located at far rivers like Saigon port and Haiphong port with restricted depth at the entrance while some ports o f the country are located in big cities. This causes difficulties to transíer cargos from one port to other port. Moreover, Vietnam lags badly behind other countries in Asian area because o f its high operation cost and its average operation períòrmance in the region. Moreover, maritime supporting services such as maritime transport agents, ship line agents, ship maintenance and repair at port, etc are developing. Hovvever, Vietnam’s the development o f supporling services in maritime transport is weak in comparison vvith other countries in the Asian are because its weak proíessional and managerial ability o f shipping companies in Vietnam, especially low quality o f maritime supporting services and untầir competition between the shipping companies. From now to 2020, the country íocuses on investment for its fleet, cargo distribution centers and logistic Service centers with total investment costs o f 270-290 trillion. Vietnam has less crew members and its crew members who are well trained in the basic theory but they have the restricted practical experience. Theretbre, the country does not meet needs for quality and quality, especially in crew members who have the ability to work on overseas vessels. In order to overcome the lack o f human resources in the maritime industry, Vietnam has an orientation o f developing human resources from now to 2020. The country