Internship report advanced international business deo ca traffic infrastructure investment joint stock company (hhv)

ADVANCED EDUCATIONAL PROGRAMS DEO CA TRAFFIC INFRASTRUCTURE INVESTMENT JOINT STOCK COMPANY HHV Student: Le Phuong Linh Major: Advanced International Business Class: Advanced Internati

ADVANCED EDUCATIONAL PROGRAMS

DEO CA TRAFFIC INFRASTRUCTURE INVESTMENT

JOINT STOCK COMPANY (HHV)

Student: Le Phuong Linh Major: Advanced International Business Class: Advanced International Business 61B Student ID: 11192835

Supervisor: Dr Nguyen Bich Ngoc

Ha Noi, 2022

ACKNOWLEDGEMENTS

Without the direction and support of people who participated and given their invaluable aid in the preparation and completion of this study in one way or another, this comprehensive report would not have been possible

I want to convey my deep thanks to the National Economics University in particular for including the internship program within my course of study and allowing me to get useful real-world experience I would like to express my gratitude to Dr Nguyen Bich Ngoc, Lecturer at National Economics University, for serving as my internship mentor and providing me with diligent advice

I would like to express my sincere thanks to Ms Nguyen Quynh Mai, Deputy General Director of Deo Ca Infrastructure for giving me the opportunity to practice at the Fund Management Department and taking time out of her busy schedule to guide me in getting acquainted with the company department and assigned me to various tasks during my six-week internship

I would also like to express my special thanks to all staff for their companionship, guidance and support during my internship

2 Objects and objectives of the internship report 9

CHAPTER 1: OVERVIEW OF DEO CA TRAFFIC INFRASTRUCTURE

1.2 Establishment and Development of Deoca Group 12

1.4.1 General organizational structure: 16 1.4.2 Functions of each department: 17

2.2.2 Foreign trade activities in the process of cooperation: 35

2.3 General assessment of business activities of Deoca Group: 35

CHAPTER 3 : FINDINGS, RECOMMENDATIONS AND CONCLUSIONS 40

3.1 Assessments business activities of Deoca Group: 40

3.1.1 Remarkable achievements of the process of cooperation with foreign

3.2 Orientation and goals of Deoca Group in the next 3 year: 41

STATUTORY DECLARATION

I hereby certify that I wrote the internship report that was submitted on my own Except for the literature listed in this article and the other sources provided at the conclusion, I don't rely on any outside sources

All materials and other sources that I used to produce this academic work, either literally

or in terms of substance, have been identified explicitly and individually listed

Hanoi, 01/10/ 2022

Le Phuong Linh

LIST OF ABBREVIATIONS

Co., Ltd: Limited Company

Jsc: Joint Stock Company

HHV: Deo Ca Traffic Infrastructure Investment Joint Stock Company SBRC: Saigon Bridge and Road Construction Corporation

PPP: Public Private Partnership-

BOT: Build-Operate-Transfer

Discover more from:

Document continues below

Linh Chi Internship Report IN

Ngo Phuong Dung - chapter 1 - đã sửa

7

LIST OF TABLES

Table 2.1: HHV’s Balance Sheet: Total Assets 23

Table 2.2: HHV’s Balance Sheet: Total Liabilities 24

Table 2.3: HHV’s Balance Sheet: Total Equity 25

Table 2.5: HHV’s Profitability Ratios 28

Table 2.6: Deo Ca tunnel, Co Ma tunnel 30

Table 2.9: Bac Giang - Lang Son Expressway 32

Table 2.10:The National roadway 1 expansion 34

Table 2.11 : Trung Luong - My Thuan Expressway 34

LIST OF FIGURES

Figure 1.1 Charter capital of HHV since 2015 (Prospectus 2021) 15

Figure 1.2 Capital structure in the Fiscal year 2021 (Prospectus 2021) 15

Figure 1.3 Deo Ca’s Organizational Structure (Prospectus 2021) 17

Figure 2.1 Net revenue and Net profit from 2019 - 2021 25

Figure 2.2 Net revenue and Gross profit from 2020 Q1 2022- 27

INTRODUCTION

1 Background of the report

Learning is not only learning through knowledge from books at university, lectures by teachers, but it also needs knowledge and practical experience, especially for students

of the business sector The internship program is a great opportunity for students to better understand the business sector and the business market in Vietnam and internationally The internship program is an opportunity for students to both know theoretical knowledge and gain practical experience During the internship, students have the opportunity to adapt to the actual operating environment of the organization

So the National Economics University has put in the internship program for senior students of the Advanced International Business Management program After passing the online and face-to-face interviews, I was accepted into Deo Ca Traffic Infrastructure Investment Joint Stock Company to participate in the internship program under the guidance of the instructor - Dr Nguyen Bich Ngoc Based on the knowledge I have learned and the actual situation that I have experienced, I have written this internship report

2 Objects and objectives of the internship report

The research object of the internship report is the general operation of Deo Ca Traffic Infrastructure Investment Joint Stock Company and its projects with foreign trade elements

The research objectives of the Internship Report are:

● Prepare me with a baggage so that I can equip myself in a real working environment as well as I will be able to know different aspects of the company that builds public and capital projects Foreign investment

● To better understand the internship unit is Deo Ca Group Joint Stock Company How to evaluate a company's situation through financial ratios

● How to manage and evaluate the success of the company in the process of operation and cooperation with foreign partners

Specific research methods:

● Data collection methods

To collect the necessary data for the research process, the author used many primary and secondary sources of information

Secondary data includes: Articles, research articles, summary reports on business situation, personnel situation, are taken from financial statements, prospectus, annual reports of the company

Primary data includes:

Collection method: Primary data is collected from interviews with: Some senior leaders and officials of Deo Ca Group Joint Stock Company

Data collection:

+ Method of data collection through interviews, meetings with officials and employees in the Company For this method, it helps the author to collect detailed information and observe the attitude of the survey target group towards the research problem However, this method requires a lot of time

+ Methods of data collection via email and phone This form of survey helps the author save a lot of time and reach more employees However, this form does not meet directly with the interviewees, so it cannot develop more opinions and attitudes of employees

The survey results obtained a lot of useful information for the process of making internship reports

● Data processing method

The thesis topic uses the following main data processing methods:

Descriptive statistics method

The thesis uses secondary sources such as documents, textbooks, previous research works related to the topic and available sources within the Company such as: Quarterly financial statements, sales year, year; Business Report; prospectus, These documents are gathered by the author to analyze and evaluate the current state of enterprise competitiveness of Deo Ca Group Joint Stock Company

Methods of synthesis, analysis, comparison

In addition to the documents collected from within the Company, the author also collects other secondary documents from newspapers, specialized magazines, documents from conferences as well as websites with related content topic Based on the collected quantity, the data is processed on the computer using Excel software On the basis of comparing and contrasting the criteria to evaluate the indicators, find out the causes and propose solutions to overcome the limitations of the Company

CHAPTER 1: OVERVIEW OF DEO CA TRAFFIC INFRASTRUCTURE INVESTMENT JOINT STOCK

COMPANY (DEOCA GROUP)

1.1 General information about Deoca Group

- Company name: Deo Ca Traffic Infrastructure Investment Joint Stock Company

- Abbreviation Name: Deoca Group

- Enterprise identification number: 0313365915

- Dated: 2015 07 23-

Issued by: Ho Chi Minh City Tax Department

- Charter Capital: Over 2673 billion VND

- Company headquarters: 32 Thach Thi Thanh, Tan Dinh Ward, District 1, Ho Chi Minh City, Vietnam

- Phone: 02838203388

- Business sectors: Non state joint stock company

Legal representative: Vo Thuy Linh Executive President-

1.2 Establishment and Development of Deoca Group

1985 1998: - Deo Ca Group, formerly known as Hai Thach Power Construction and Production Enterprise, was born in 1985 of the last century in Phu Yen Entrepreneur

Ho Minh Hoang has taken the step of taking over the family - receiving the transfer and succeeding in the management, rearrangement and stabilization of the business during this period All preparations to plant hope

1998 2005: - Management reform, expansion of partnerships, successful implementation

of construction projects, carpentry and electrical construction in Phu Yen province to create prestige are remarkable efforts of Hai Thach Co.Ltd In 2002, Hai Thach Co Ltd was established and Mr Ho Minh Hoang became the Company's Director Since 2005, Hai Thach Company has achieved new successful steps in the field of construction, known to many people for many fancy and modern lighting models such as: the image

of the Balance of Justice on National Highway 1A , the symbol of Tuna in Hung Phu new urban area, the image of the Wing of Hope on Hung Vuong Street

2005 2015: - Since 2008, Hai Thach Co Ltd has been recognized with impressive development steps Until 2009, marking an important turning point when restructuring and developing into Hai Thach Group, which has strengths in lighting and power construction works, it tried to "encroach" into a new area - implementing the Deo Ca road tunnel project with the role of investor and main construction contractor From the desire to build a business into a large economic group, Hai Thach has gradually established, linked and gathered other investors operating in many fields and industries

In 2014, Hai Thach Group (Hai Thach Group Joint Stock Company) was formed, which

is multidisciplinary, with a charter capital of up to 1,500 billion VND, with more than

700 officers and employees The member enterprises of the system include: Hai Thach BOT Joint Stock Company, Hoang Long Construction Consulting Joint Stock Company, A2Z Construction Consulting Joint Stock Company, Hai Thach Construction Investment Joint Stock Company, Hai Thach Building Materials Joint Stock Company, Trung Hai Investment and Trade Development Joint Stock Company, Vina S.F Security Service Joint Stock Company…

2015 - 2018: Hai Thach Group contributes capital to Saigon Bridge and Road

Construction Corporation (SBRC) By December 2016, SBRC Group was officially launched, marking the completion of capital restructuring and strategic location relocation

Inheriting and developing continuously for more than 30 years from Hai Thach Group, with a team of highly qualified human resources, modern technical equipment, SBRC Group continues to achieve many great successes from many projects National key project, especially the Deo Ca road tunnel project 01 of 05 typical national works As -

an enterprise that has been entrusted by the Ministry of Transport under the Government

to implement the projects of the Hai Van 2 tunnel expansion item, continue to implement the Bac Giang - Lang Son expressway project, and is assigned to deploy the solution ETC non-stop toll collection method on RIFD technology…

2018 2028: - In the process of global integration of the economy The pursuit of development, promotion and success is the driving force of thinking and creativity Change to reach the future Aware of a dynamic and multi dimensional world, from May -

2018 Saigon Bridge Construction Investment Corporation (SBRC) officially changed its name to Deo Ca Group Joint Stock Company (Deoca Group) – restructuring to realize business investment strategies on regional and international scale

Deo Ca Group is currently the parent company, including 20 member companies divided into 5 business blocks such as: Specialized departments; Investment business block; Project enterprise block; Business and production block; Strategic partners, with nearly 6,000 officers - employees and employees This is a unified collective pursuing the aspiration to become: “The largest transport infrastructure investor; The most professional financial investor and the strongest general contractor" to realize the desire

to bring "a safe and prosperous life for people and the country of Vietnam"

1.3 Capital scale and Labor force

Since officially becoming a joint stock company, HHV has changed its charter capital 4 times:

In the period 2015-2025, after restructuring, Deo Ca focused on road transport infrastructure, providing closed services with 4 main activities: investment in transport infrastructure in the form of PPP, construction, operation management and exploitation

of road infrastructure projects, real estate and services associated with highways and mostly large projects

The total investment of the projects that the unit is investing in is more than VND 50,000 billion HHV must offer diversified capital mobilization solutions through channels such

as the stock market, domestic and international bond issuance, business cooperation, and capital mobilization from investment funds to ensure its scale HHV's activities especially in 2019 when HHV's shares were listed on the stock exchange The company's production and business activities are in line with regulations on foreign ownership ratio for investors to continue investing capable of concentrating capital for big projects such

as Cam Lam - Vinh Hao expressway, Bac Giang - Lang Son expressway, etc

Figure 1.1: Charter capital of HHV since 2015 (Prospectus 2021)

When equity increases, it shows that HHV is doing business effectively, business activities bring stable and potential profits The addition of capital contribution and increase in equity will help the company to have many opportunities to expand its investment scale and development

Capital structure and Capital scale of HHV in 2021:

Figure 1.2: Capital structure in the Fiscal year 2021 (Prospectus 2021)

Deo Ca group is now known as one of the large-scale enterprises, an economic group capable of consolidating qualified and specialized human resources - a diverse, although different, collective on the field of training, research orientation, cultural level, social relations, age With over 6000 employees, of which at least 60% have college degrees

or more, the human resources are gradually rejuvenating the average age and this helps the company to easily integrate in the competitive economic market current painting

The board of directors and management are both experienced professionals in their respective fields, constantly learning to integrate with the digital transformation era

1.4 Organizational structure of Deoca Group

1.4.1 General organizational structure:

The hierarchical organization is used in the organizational structure model of the Ca Pass Infrastructure Jsc - The organizational structure model is often seen in state agencies as well as large construction investment companies and other industries.This is a form of organization that uses a traditional hierarchical structure based on a vertical chain of command as the primary method for organizing employees and their responsibilities HHV uses a hierarchy to determine how much control employees have over their work and how they rank relative to others It's easy to understand layout, communicates reporting relationships clearly, and it also integrates an understanding of future advancement opportunities Since then, it is easy to manage because the company

is a group with many subsidiaries, more than 6000 employees and operates in many different fields Besides the benefits, the hierarchical structure due to the many layers of management leads to bureaucracy and the creation of silos that prevent cooperation among employees

To overcome this weakness, HHV also incorporates functional organizational structures

A structure of this type groups individuals according to the specific functions performed General departments such as human resources, accounting and procurement and construction are organized by separating each of these areas and managing them independently of the other departments

The advantage of this type of structure is that the functions are separated by expertise,

so that high work efficiency can be achieved and the creation of silos is avoided

Figure 1.3: Deo Ca’ Organizational Structure ( Prospectus 2021 )

● HHV has a network of 03 subsidiaries and 03 associated companies: Subsidiaries:

+ Deo Ca Investment JSC

+ Phuoc Tuong Phu Gia B.O.T JSC-

+ Bac Giang - Lang Sơn B.O.T JSC

Associates:

+ ICV Vietnam Investment and Construction JSC

+ Deo Ca Khanh Hoa B.O.T Investment JSC-

+ Bac Giang - Lang Son Huu Nghi B.O.T JSC -

1.4.2 Functions of each department:

● General Meeting of Shareholder (GMS):

Shareholders can exercise their rights at the general meeting of shareholders (GMS) to vote on specific matters affecting the company, hear updates from the board of

commissioners and board of directors regarding their performance and accountability, and ask the board's questions about their decisions

● Supervisory Board:

The Supervisory Board is an agency directly under the GMS, elected by the GMS, and

is responsible for assisting the GMS in monitoring and evaluating the performance of the Board of Directors Currently, the Deoca Group's Supervisory Board consists of three (03) members, each member has a term of five (05) years The Supervisory Board operates independently from the Board of Directors

● The Board of Directors:

The Board of Directors is elected by the General Meeting of Shareholders, is the management body of the Company, has full authority on behalf of the Company to decide on all issues related to the Company's operations, except for matters under the authority of the Company General Meeting of Shareholders The Board of Directors is responsible for supervising the Director and other managers appointed by the Board of Directors, determining the existence and development policies to implement the decisions of the General Meeting of Shareholders policy making, action resolutions for each time in accordance with the production and business situation of the Company Currently, the Board of Directors of the Company consists of 08 members, each member has a term of five (05) years and can be re-elected at the next General Meeting of Shareholders

● Executive Board:

The Executive Board manages all production and business activities of the Company and is responsible to the General Meeting of Shareholders Board of Directors and the law on its performance Determine the organizational structure, responsibilities and powers of the affiliated units and management levels in the Company Develop long-term and annual production plans, business plans, new investment projects, joint venture and association plans and submit them to the Board of Directors and the General Meeting of Shareholders for approval

● Other Department:

The departments are responsible for advising the Director on the management and direction of the field in charge, organizing the implementation and concretizing the work

under the direction of the Board of Directors in the production and business activities of the Company

1.5 Business activities and management

1.5.1 Business field

● Investment and construction of transport infrastructure works

In nearly a decade, the company has built more than 22 km of road tunnels, 275 km of highways & national highways, 6 major bridges and organized the management of 15 toll stations across the country, with a total investment of up to 100,000 billions dong The completed works bring real value to the people, creating a driving force for the socio-economic development of Vietnam

● General contractor for design, construction and equipment installation With more than 30 years of experience, in addition to the strength in investment and construction of key traffic works, Deo Ca Group also promotes development in the field

of construction and installation of all kinds of technical infrastructure works, High-rise buildings, industrial works with the advantage of technical technology, knowledgeable

in construction fields will contribute to saving time, reducing costs but still ensuring the quality of works

● Financial investment

The Board of Directors of Deo Ca Group determined that financial investment is a strategic development step, in line with the trend of the times, an important step to create momentum for the Group to achieve its development goals in the future future By investing capital in member companies that have close links and common economic interests, it will facilitate profit maximization and at the same time spread risks

● Consulting, design and supervision services

Determining, consulting, design and supervision activities play a decisive role in safety, aesthetics and ensure progress for all works and projects This is also one of the important foundations, helping Deo Ca aim to become a strong multi industry -corporation in the future

● Management and operation of traffic works

After being put into operation, factors from the external environment will directly affect the construction, leading to damage and deterioration of service capacity, affecting its service life and ability to ensure technical safety traffic of road traffic works Therefore, the management and operation of traffic works is a very important task in order to maintain the technical status and architectural space of the works, ensure smooth and safe traffic, and serve well best for social needs

1.5.2 Business line

The main business lines of the Company are: Direct support services for rail and road transport:

+ Management, exploitation and maintenance of Hai Van tunnels; Deo Ca and Co

Ma road tunnels, Cu Mong road tunnels, Phuoc Tuong Phu Gia road tunnels; management, operation and maintenance of assigned national highways + Ensure traffic when there is a natural disaster in the assigned area Toll collection service; Other road passenger transport: Passenger transport business along fixed routes includes: Transporting motorcycles, mopeds and mopeds with drivers of such vehicles and pedestrians through road tunnels by road, special-use vehicles, bus passenger transport business;

+ Construction of houses of all kinds; Freight transport by road; Trading in real estate, land use rights belonging to the owner, owner or tenant, Repair of pre-engineered products; Repair of machinery and equipment; Repair of electrical equipment; Repair other devices Installation of machinery and industrial equipment; Installation of electrical systems

Construction of public works; collapse; Surface Preparation; Other specialized construction activities; Finish construction; Motor vehicle rental; Leasing machinery, equipment and other tangible goods;

+ Wholesale of other machinery, equipment and spare parts; Wholesale of computers, peripheral equipment and software; Computer programming, Computer consulting and computer system administration; Information technology services and other services related to computers; Wholesale of materials and other installation equipment in construction;

+ Loading and unloading goods: Producing concrete and products from cement and gypsum; Maintenance and repair of automobiles and other motor vehicles; Exploitation of stone, sand, gravel and clay; Short stay services; Management -consulting activities; Production of non alcoholic beverages, mineral water-+ Support services related to tourism promotion and organization; Mechanical; Metal processing and coating; Manufacture of refined petroleum products