VIETNAM YAMAGUCHI JOINSTOCK COMPANY

TABLES OF CONTENTSIntroduction...4 List of abbreviations...5 List of tables and charts...6 Part 1: Overview of Vietnam Yamaguchi joinstock company …...7 1.1.. Being recommended and allow

TABLES OF CONTENTS

Introduction 4

List of abbreviations 5

List of tables and charts 6

Part 1: Overview of Vietnam Yamaguchi joinstock company … 7

1.1 Formation and development of Yamaguchi 7

1.1.1 General introduction about Yamaguchi 7

1.1.2 Functions, duties and products of the company 8

1.1.3 Foundation history………

1.2 Major business areas 8

1.3 Organizational structure 9

1.3.1 The stuctural model of the company………

1.3.2 The functions of departments………

Part 2: Yamaguchi’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 Yamamguchi’s business results analysis 13

2.2.1 Business results in the period of 2013 – 2014 13

2.2.2 2013 – 2014 business results analysis 14

2.2.3 Structure of human resources………

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: Vietnam Yamaguchi’s existing problems 19

3.1 Yamaguchi’s SWOT model analysis… 19

3.1.1 Strengths………

3.1.2 Weaknesses………

3.1.3 Opportunities 3.1.4 Threats………

3.2 Some solutions for improving business efectiveness

3.2.1 Solutions for business strategy………

3.2.2 Soluttions for declining expense/ rising turnover………

3.2.3 Solutions for training, devloping human resources………

Conclusion 22

References 23

Being recommended and allowed by English Department – Vietnam University of Commerce, I have gratefully experienced as an intern in Administration Office of

Vietnam Yamaguchi joinstock company After one month (from 05/01/2016 to

30/01/2016), 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 Vietnam

joinstock company Especially, I would love to express my sincere thanks to my beloved supervisor – Mrs Vu Thi Thu Trang 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 02, 2016

Student Nguyen Thi Nhu Hoa

LIST OF TABLES AND CHARTS

Diagram 1.1: Organizational chart of Vietnam Yamaguchi joinstock company

Table 1.1: Venture capital structure of the enterprise in the period of 2013 – 2014 (VND)

Table 1.2: Company’s business results in the period of 2013 – 2014

Table 1.3 Stucture of human resources of Yamaguchi jsc in the period of 2013 -2014

PART 1: OVERVIEW OF VIETNAM YAMAGUCHI JOINSTOCK

COMPANY

1.1 Formation and development of Yamaguchi

1.1.1 General introduction about Yamaguchi

Vietnam Yamaguchi joinstock company was founded

by Mr Do Xuan Minh on February 28th,2011with tax code

No 0105165087 This joinstock business type of the

company was establised, existed and developed by

shareholders who pooled

Image 1.1 Logo of Yamaguchi The company has been established on the basis of capital contribution of 3shareholders

The company is headquartered in Minh Hoa 2 village, Minh Khai commune, Ward,Hoai Duc district, Hanoi

1.1.2 Foundation history

2011:

The company was set up by 3 contributors’ kitty Total area of office and factory are only

150 meters square, it was equiped basic machines which servered its beginningprofessions

2012:

Total area of the office raised up 350 meters square

Le Duc Tho street, My Dinh ward, Tu Liem district, Hanoi.

Yamaguchi targets to continue to consolidate,strengthen the enterprise’s activitieseffectively

With VND 2.3 billion of charter capital, Yamaguchi directly carries out the duties oftrading, distributing accurate mechanical processed products, trading,allocating,processing, importing and exporting agricultural machinery, experiment equipments,providing logistic transport services with long term partner and transparent relatioshipwhich belong to the supplier and observe under current law principles The company isone of strategic, prestigious units in the fields of their activities

1.2 Major business areas

Yamaguchi mainly performs in the following fields:

- Supply and intallation of automatic car washing systems: Viet Nam Yamaguchi isproud to be the exclusive representative of the Geowell company in Vietnam, whichspecilizes in providing and developing the system wash trucks, buses, car, auto for thecontruction site, the declaration mining,bú and arterial roads in mảo cities

- Supply domestic and oversea logistic transport services, customs procedures

- Providing facilities QA, QC, laborratory, rapid test kit, food safety testing

- Providing plant material consumption: Some products such as knife, cutting tool,Pdrills, labor protection equipment, industrial pumps are also businessed and distributed

- Providing chemical: Yamamaguchi is an importer, a leading distributor oflaboratory chemicals, chemical miscrobiology,molecular biology chemicals,chemicalpreparation, chemical reagent, standard solutions,etc The products are originated fromthe advanced countries of the world like America, Europe, G7,etc and certificated foranalysis of the full range of information, quality assurance

1.3 Organizational structure

The Company’s organization system includes:

- Board of General Directors includes 3 people

- The Vietnam Yamaguchi Company has 6 different supporting divisions which are:Office, Accounting Department gt, Technique and Technology Division, ProjectManagement Division, Science and International Cooperation Division, BusinessDevelopment Board

Diagram 1.1: Organizational chart of Vianren

The Company possesses 2 branches in Da Nang and Ho Chi Minh City, and 5 member limited liability subsidiaries with its 100% capital There are also 11 different business units and 2 associations

one-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 someother fields thorough the country Numerous projects are conducted in such severalprovinces as Cao Bang, Hanoi, Phu Tho, Ha Giang, Quang Ninh in the North, QuangBinh, 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 EngineeringCorporation, Halla Energy and Environment Co Ltd, Korea Environment Corporation…

Diagram 1.2: Some typical partners of Vianren

2.1.2 Key products and services

Vinanren’s key products consist of various types of topographic and cadastralmaps of scale 1/10000, 1/20000 There are also numerous geological maps, planningmaps, specialized maps of different scales, aerial photographs for establishing andcontrolling public works Especially, databases for storage, maps management andadministrative 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 ofenvironmental, waste and water treatment

Image 1.2: Some key products of Vinanren

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 toevaluate

3 Net revenue from sales of goods andservices 10 951,387,303,931 778,232,987,892

5 Gross profit from sales and services 20 135,656,331,238 137,098,589,068

6 Revenue from financing activities 21 1,821,535,894 876,449,169

Including: In expense 23 43,707,061,136 58,137,176,621

8 Business management cost 25 84,817,887,372 72,197,827,958

9 Net profit from operations 30 8,923,850,253 7,192,943,658

14 Business income tax expense 51 3,520,904,064 2,052,490,087

Table 1.1: Company’s business results in the period of 2012 – 2013

4 Climate change, geology, mineral, water

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 hassuccessfully managed its business operations Almost features in 2013 recorded asignificant increase compared to 2012 Profit of Vinanren was mainly generated frommapping and land management services

Revenue and other incomes reached VND 964,019 million in 2013, up 123% on-year (VND 779,869 million in 2012) 2013 pre-tax profit recorded VND 11,442million, rising 136% compared to 2012 Pre-tax return on sales and after-tax return onequity went up from 1.08% and 4.51% to 1.18% and 5.89% respectively This clearlyshows that little after-tax profit increase is not compatible with the strong growth ofrevenues and taxes

The features of revenue and net profit steadily went up while business managementcosts have significantly reduced, indicating the continuously reinforced managementefficiency of Vinanren

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 3 years are quitestable High liquidity capital from state budget enables the Corporation to provide jobsand pay salaries for employees, ensuring its business stability in the tough economicsituation

Moreover, Vinanren possesses a well-trained team with great ability to apply latesttechnologies 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 toreduce risks, avoid losses, minimize operating costs and ensure the worker’s benefits Additionally, the mobilization and distribution of capitals, assets and humanresources are effectively carried out in every unit The Company also regularly examinesthe reliability of figures in finance reports as well as the other reports, aiming to find outand propose solutions to all problems in operating systems of subsidiaries

During its 4-year development, Vinanren has obtained a lot of experiences inorganizing several substantial environmental projects such as mapping projects with thecooperation between Vietnam and Lao, Vietnam and Cambodia, marine geologicalinvestigation 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 allmeet the regional standards

However, it is necessary to frankly admit that there are also some obstacles thatbadly affect the company’s business efficiency.

Firstly, it is the parent – subsidiaries operation The roles of Parent Company remainunclear The operating system, business methods and specialized sectors of ParentCompany are simply duplicated in its business units and subsidiaries

Secondly, the imbalance between sectors remains a difficulty in company’sworkforce A majority of 80% labor specializing in mapping and land management haslittle experience in doing other businesses This redundant workforce definitely needstransferring when mapping and land use right registration projects finish

Thirdly, the company’s outdated technologies and old-fashioned machines are notcompatible with its leading position in survey and mapping Vinanren is hiring someimportant pieces of equipment for Lidar scanning

Furthermore, the company has not drawn any feasible plan for additional chartercapital despite the lack of capital Various big amounts of loans and interests are badlyaffecting its business efficiency

Especially, two subsidiaries without headquarters need to rent offices resulting in badimpacts 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 thoroughunderstanding of specialized affairs but also good foreign languages and soft skills.Nowadays, English plays an extremely important role in every enterprise It represents akey offering more opportunities to expand business scale, seek more investors, partnersand exploit new markets from which improve profitability and production efficiency

Performing mainly in environment sector, Vinanren uses English the most inminerals and water resources exploitation activities The company has lately started toseek and maintain relationships with foreign investors Employees of the company arethus 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 inEnglish and Vietnamese, helping not only Vietnamese but also foreigners easily accessand 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 onVietnamese geography, population, economy, environment through their regular actualsurveys The articles will then be examined through many steps The approval ones will

be officially posted on www.vinanren.vn Furthermore, designing website andmanagement software system as required by customers is also implemented completely inEnglish by specialists at Technique and Technology Division

However, it is necessary to acknowledge that the English proficient staffs ofVinanren are mostly students from English Departments of different universities, whoseworking schedule is unstable They only occur in a short time and rarely present in theoffice This hinders a lot when there has sudden work related to English Almost ITengineers and office staffs are only able to read specialized English but effectivelycommunicate and write in such language These obstacles have many times causedcompany not to immediately reply foreign partners due to the lack of English proficientstaff, 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 moreEnglish courses alongside professional knowledge training for all employees in thexompany Currently, it planned to connect with some English training centers in Hanoi tobuild up some commercial English courses Accordingly, the courses will focus on