Recommendations to enhance human resources recruitment process at vietnam ocean shipping joint stock company (VOSCO)

For those reasons, I choose the topic "Recommendations to enhance human resources recruitment process at Vietnam Ocean Shipping Joint-stock Company” for my dissertation.. DANG THI PHUONG

DANG THI PHUONG HOA – GMA02 i

PREFACE

In fact, the development of economic andsociety depends on many factors but theyare primarilydependent mostlyon human factors.More than any other resource, people have always occupied an important position in the development of economic and society of a nation

Human Resource Recruitment is one of the basic activities of recruitment in the enterprise, the most influential of business production process Moreover, through it, people can solve the relations arising in the process of managing the Company

The importance of the human factor in any enterprises or any organizations whether is large scale or small scaleis an obvious fact that no one will deny Among the different component of the economy, human resource is considered as the most precious resource of any enterprises and businesses, playing a very important role in deciding the existence and the development of those enterprises Apparently, a great volume of capital along with modern equipment, facilities will become worthless without the management of people So as to have a stand and develop in the market economy, concern about recruiting and training the human resources who meet the requirements of companies is essential – the necessary progress and the initial input

of human resource will decide the success of enterprise and influence the whole operation of enterprises in the near future Human resource is also one of the attributes which bring the overall success or failure for companies

During my internship at Vietnam Ocean Shipping Joint-stock Company, I had

an opportunity to observe and practice at the Administration and Human Resource Department at Vietnam Ocean Shipping Joint-stock Company As a reputable company in shipping industry, Vietnam Ocean Shipping Joint-stock Company (VOSCO) proposes a logical progress for recruitment Nonetheless, several problems have occurred in recruitment and not being paid attention by the company The issue of concentrating on managing recruitment progress from VOSCO still has restricted techniques and number skilled and qualified labors applying for a job in company Concurrently, a few stages such as using of test methods or detecting health problems for candidates during the progress of recruitment have been

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skipped In fact, it can influence considerably to quality of human resource For those reasons, I choose the topic "Recommendations to enhance human resources recruitment process at Vietnam Ocean Shipping Joint-stock Company” for my dissertation

Due to the limited practice time and complexity and extensive work should dissertation to practice my many shortcomings, I would like to receive the attention and comments from teachers in subjects organized Finally, with sincere gratitude I would like to express their gratitude to Mr Nguyen Viet Hoang Son to direct instruction, the entire leader of the company, the uncles and aunts, brothers and sisters in the administrative organization room guided me in internship to complete this dissertation

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ACKNOWLEDGEMENT

Firstly, I would like to express my sincere gratitude to my supervisor - Msc Nguyen Viet Hoang Son who helped me complete this dissertationfor the continuous support of my dissertation and related research, for his patience, motivation, and immense knowledge His guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor and mentor for my dissertation

I certify that all the materials in this dissertation that is not my own work has been identified, and that no material is included for which a degree has previously been conferred on me

The contents of this dissertation reflect my own personal views, and are not necessarily endorsed by the University

I would also like to look forward to receiving input from teachers

HaiPhong, November 15 th , 2015

Student:

Dang Thi Phuong Hoa

DANG THI PHUONG HOA – GMA02 iv

ABSTRACT

This dissertationwith topic“Recommendations to enhance human resources recruitment process at Vietnam Ocean Shipping Joint-stock Company (VOSCO) examines the concept of definition of human resources and how important of human resources recruitmentprocess to the Company Research methods used in this study: Initially, the model will be checked for validity in interviews with senior executives working in administration department.Next step is checking the data about quantity, sex, age and qualifications of labors in the Company Based on the data of the paper, the methodology to make analysis on evaluate and predict of the performance

of the VOSCO's human resource recruitmentin order to discover strengths and weaknesses and improve the human resources recruitment process at VOSCO It also defines the VOSCO’s human resource recruitment, proposes the recommendations and ideas of the recruitment of human resource at VOSCO This dissertation will contribute to manage employees more effective and strict and evaluation towards a specific the quality ofhuman resources recruitment process This dissertation was done on the basis of assessment through some reports about human resources as well as the ways of proceeding, personnel recruitment process of the company to employees

Keywords:

Human resource, human resources recruitment, VOSCO, evaluate, method, solutions, recruitment process

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CONTENTS

PREFACE i

ABSTRACT iv

LIST OF ABBREVEATIONS vii

LIST OF TABLES viii

LIST OF FIGURES ix

INTRODUCTION 1

CHAPTER I: LITERATURE REVIEW 3

1.1 Literature Review 3

1.1.1 What is Human Resource (HR)? 3

1.1.2 What is Human Resources Recruitment (HRR)? 4

1.2 Significance of Human Resources Recruitment 5

1.2.1 For business 5

1.2.2 For employees 5

1.2.3 For society 6

1.3 General human resources recruitment process 6

1.3.1 Definition and role of Human resources recruitment 6

1.3.2 Recruitment Sources 7

1.3.3 General Human resources recruitment process 9

CHAPTER II: CURRENT SITUATION OF HUMAN RESOURCES RECRUITMENT AT VIETNAM OCEAN SHIPPING JOINT-STOCK COMPANY (VOSCO) 14

2.1 Overview of Vietnam Ocean Shipping Joint-Stock Company 14

2.1.1 Introduction of Vietnam Ocean Shipping Joint-Stock Company 14

2.1.2 Brief history 15

2.1.3 Principles and orientations 18

2.1.4 Organization structure and main business of VOSCO 19

2.1.5 Scope of main business 23

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2.1.6 Infrastructure of VOSCO 24

2.2 Current situation recruitment of Vietnam Ocean Shipping Joint-stock Company in 2014 – 2015 24

2.3 Human resources recruitment process at VOSCO 27

2.3.1 General provisions on labor recruitment regulations of Vietnam Ocean Shipping Joint-stock Company 27

2.3.2 Recruitment process 28

2.3.3 Mode of labor contracts 40

2.4 Actual labor situation at VOSCO 43

2.4.1 Preliminary of labor structure at VOSCO 43

2.4.2 Classify by education level of employees at VOSCO 44

2.4.3 Review labor structure by age 46

CHAPTER III: ASSESSMENT ANDRECOMMENDATIONS TO ENHANCE HUMAN RESOURCES RECRUITMENT PROCESS AT VIETNAM OCEAN SHIPPING JOINT-STOCK COMPANY (VOSCO) 48

3.1 Assessment about recruitment process at VOSCO 48

3.1.1 Strengths 48

3.1.2 Weaknesses 50

3.2 Recommendations to enhance Human Resources Recruitment process at VOSCO 51

CONCLUSION 55

REFERENCES 57

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Male/Female Vietnam Maritime Corporation Safety Quality Management Safety, Quality and Environment management system Vietnam Coastal Shipping Company

Vietnam Ocean Shipping Joint – Stock Company

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LIST OF TABLES

Table 1: The number of labors recruitment at VOSCO in 2014 – 2015 25Table 2: Number of officers, crews had been recruited at VOSCO in 2015 26Table 3: Number of staffs had been recruited at VOSCO in 2015 26Table 4: The number of employees at some departments of at VOSCO up to the date May 1st, 2015 43Table 5: Qualification of employees at VOSCO 45Table 6: Labor structure by ages at VOSCO 46

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LIST OF FIGURES

Figure 1: HR recruitment process in business 9

Figure 2: VOSCO’s headquarters image 14

Figure 3: The image of VOSCO’s headquarters in Hai Phong 16

Figure 4: Organization chart of at VOSCO 19

Figure 5: Human resources recruitment process at VOSCO 29

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INTRODUCTION

1 Necessitation

For any organization, people are always the most important asset and customer satisfaction begins with the attitudes and abilities and commitment of employees Effective workers are the best route to success of businesses The dissertation with the title of topic: “Recommendations to enhance human resources recruitmentprocess

At Vietnam Ocean Shipping Joint-stock Company” is a combination of basic theories on human resources recruitment and practical skills It focus on analyzing labor recruitment process at Vietnam Ocean Shipping Joint-stock Companyin term

of recruitment as well as proposing some measures to improve in order to response

to the increased demands of labor recruitment in the future Moreover, the recommendations and some solutions are also given in order to attract, training and uphold human resources also reform human resources recruitment process at Vietnam Ocean Shipping Joint-stock Company Additionally, some general information aboutVietnam Ocean Shipping Joint-stock Company is also presented within the paper

2 Methodology

The dissertation targets the assessment of the use and therecruitment of human resources at Vietnam Ocean Shipping Joint-stock Company and suggesting some measurement to develop and improve the quality of Human resources recruitment of the Company The research within the paper is basically based on qualitative and quantitative methods During the internship, general status of Vietnam Ocean Shipping Joint-stock Companyhuman resources is summarized through actual observation and interview to get information from Vietnam Ocean Shipping Joint-stock Companyleaders and staffs The current and detailed human resources recruitment situation will be surveyed based on data mostly gathered from Human Resource and Administration Department of Vietnam Ocean Shipping Joint-stock Company After that, a data, which isanalysis, will be established to clarify qualifications and variations of labor source at the company all over

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time.Qualitative method is also applied to find out the reasons for the matters included

3 Research scope

The human resources structure (2014-2015) and labor recruitment (with recruitment process, training process and so on) at Vietnam Ocean Shipping Joint-stock Company

4 Research findings, time duration

The internship was taken place from August 10th to November15th, in which time from August 10th to October30th was for internship at Vietnam Ocean Shipping Joint-stock Companyand dissertation preparation and remaining time was for writing and completing it

After internship time at VOSCO, I had an opportunity to observe and practice

at the Administration and Human Resource Department at Vietnam Ocean Shipping Joint-stock Company.This dissertation was done on the basis of assessment through some reports about human resources as well as the ways of proceeding, personnel recruitment and the salaries or treatment policies of the company to employees

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CHAPTER I: LITERATURE REVIEW

1.1.Literature Review

1.1.1 What is Human Resource (HR)?

“Human resources” (HR) in business is a term used to describe people who work for a company or organization These people are responsible for performing the tasks given to them for the purpose of reach of goals and objectives of the Company which has the possibilities of proper recruitment and selection, providing proper orientation, training, skill developments and so on

Human resources can be understood as all capability in terms of knowledge and spirit of human which is applied in the process of working This is the most valuable resource in the process of manufacturing at any enterprises

Human resources, according to economic literature, include all people in working age who are capable of participating in work (except for the disabled or lacking capability of working) and those is working although they are out of working age Human resources of an organization founded on the basis of individuals who have different roles and are linked together by certain purposes Human resources is also used to refer to the department of any enterprises that are in charge of controlling and monitoring those kind of resources, like recruiting and training new staff and supervising the benefits offered to all of the enterprise’s staff During 1960, the term “human resource” was created in the United States, when labor relations became a more significant concern for United States economy context, and gradually has gained its popularity in the globe

On the other hand, business dictionary also illustrated “Human Resource” is the resource that exists in the ability, awareness and skills as well of human being(Business Dictionary) That means Human Resource is the greatest mixture of physical ability and mentality of people which is employed in working and production process In addition, it also can be considered to be “the least mobile of the four factors of production, and (under right conditions) it improves with age and experience, which no other resource can do It is therefore regard as the scarcest and

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most crucial productive resource that creates the largest and longest lasting

advantage for an organization” (Menon, 2015)

1.1.2 What is Human Resources Recruitment (HRR)?

Human Resources recruitment can be understandas a progress of searching and hiring the appropriate candidates (from inside or outside of a company) for the employment, in a cost and time effective way The process of recruitmentconsists of investigating the requirement of an occupation that attracts workers, testing and choosing application, hiring and integrating the new staff to company.(Business Dictionary)

Human Resources recruitment contains two primary contents of hiring and choosing, in which hiring refers to the progress of attracting applicants to the businesses for the selection of recruitment and screening qualified person of aspects but still meet work’s requirements in a certain vacancy in the company.Meanwhile, selection is the progress of assessing the applicant in various aspects, based on the requirements of the job, among people looking for a job

Recruitment is usually considered as one of the first essentialstage of labor organization This stage is always an issue for managers using human resources because of the investigation, assessment and classification of human resources The demand to look for human resources to fulfill the objectives of companies just can only be implemented quicklyand efficiently when the work recruitment went well

There are many procedure and different models of recruitment but all work

of recruitment must ensure:

- Firstly, the plan is to recruit personnel resource from development objectives and approach, financial capacity, time and policies of the business

- Secondly, recruitment must be based on the requirements of each job and real stipulation

- Thirdly, selected applicants must be appropriate the recruitments and the need of each job: awareness, technical skills, experience, etc and are productive

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1.2 Significance of Human Resources Recruitment

Recruitmentof human resources is considered to be extremely crucial and meaningful to be success or failure of every business Recruitment has a direct impact to the business, to employees and also to further the socio-economic development of the country

For any one company, labor is always a resource to create strength and it is also a determining factor in the survival and development of the company.The company has built the labor regime and wage regulation of the Company and compliance with the laws of the Government Besides, with the plans on training and recruitment labors reasonableto meet the requirements of long-term development of the Company

1.2.1 For business

Firstly, Human Resources Recruitment effectively will give business a team of skilled, dynamic and creative labors, adding to human resources in accordance with the business recruitment of the enterprise Recruitment has great importance to business because it is the first stage of personnel administration work, and it should

be good to facilities other stages

Secondly, good recruitment is to find out who has sufficient working capacity and qualifications to complete assigned work, helping enterprises reach good business objective most effectively, from that improving business performance Thirdly, the quality of staff creates sustainable competitive for businesses Good recruiting contributes greatly to the creation of “input” of human resources, deciding the quality, capacity and qualifications of staff if they meet the requirement of the company or not

Fourthly, appropriate recruitment helps business reduces the cost burden, including time and money (for training costs)

1.2.2 For employees

Firstly, efficient recruitment helps workers to understand clearly about the views of the administrators, which will guide them to follow those views

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Secondly, recruitment creates a more competitive working environment and working spirit within the workers of enterprises, thereby enhancing business efficiency

1.2.3 For society

The recruitment of businesses enables implementation of social and economic goals, people with jobs and incomes means reduction of the social burden of unemployment and other social evils At the same time, the recruitment of businesses also makes use of social resources most useful way In summary, recruitment is a very important with business, good administrators to directly monitor and implement to important stages in the process of recruitment

1.3 General human resources recruitment process

1.3.1 Definition and role of Human resources recruitment

a Definition

The process of recruitment is the process of evaluating the candidates in many different aspects based on the requirements of the job, to find the people suit the requirements has set out among the candidates has attracted in the recruiting process

b Some requirements when recruit labors

The basis of recruitment is the job requirements have been set according to the job description and the requirements for people who do the work

The recruitment process must satisfy the following requirements:

- Recruitment must come from production and business plans and human resources planning

- Recruiting employees who have essential qualifications for the work to achieve higher productivity and effectiveness

- Selecting employees who have discipline, honesty and adherencewith the job and organization

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c Role of human resources recruitment process

The recruitment process is an important step to help the HR made the decision

to recruit in the right way and help organizations get labors with many skills appropriate with the organization’s development in the future

A good recruitment process helps organizations to reduce the costs to recruit, retrain and avoid the risk of damage in the process of performing the work Recruitment is not only the task of Organization department or simply work of supplemented employees for businesses, but also it really is a process of seeking and selection carefully It requires a combination between departments in the enterprises together, to have a clear direction and contestant of business’s leaders

re-1.3.2 Recruitment Sources

This involves recruiting candidates in the organization to fill the vacancy Unlike external sources, companies fill the positions through references of internal employees or current employees’ promotions to higher positions

a Internal sources

Thereare some popular internal recruitment methods that are often applied, including: internal advertisements (email, newsletters, forms…), word of mouth, promotions, internal employee’s referrals, retired employees for temporary or contract positions, present/temporary employees to permanent positions, former employees for part-time, freelancer orwork at home

* Advantages of internal recruitment

- Nocost and less time consuming

- No need training

- Builds strong relationship with employees

- Motivates others of hard work to get high positions

- Easy to pick best talents within an organization very quick

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- Long stay with the company when promoted to high position

* Disadvantages of internal recruitment

- The positions of the persons who are promoted will be vacant

- There may be partiality in promoting employees

- No new opportunities for external candidates

b External sources

This involves recruiting a candidate from references, networks, job portals or they may approach recruitment agencies In order to compete with other companies and increase standard, employers hunt for best talents working for other top companies

* Methods of external recruitment

Some majorexternal recruitment methods are job portals, internal and external employee referrals, and recruitment/headhunting agencies, job advertisements on websites, newspapers, campus recruitment and walk-in

* Advantages ofexternal recruitment

- Create new opportunities for external employees

- Best candidates can be placed for the roles

- Increase the percentage ofselection

- There are fewer chances for relationship

- Able to recruit the skills needed

* Disadvantages ofexternal recruitment

- It is very costly Because of advertisements, test medical examination etc., has to be conducted Selecting candidate from external sourcesconsumes more time than internal sources

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1.3.3 General Human resources recruitment process

In order to have a good HR recruitment, it is very important for organizations

or companies to have a recruitment process Every organization or enterprise can build itself a recruitment process, depending on its own particular characteristics of each business type, but basically, H recruitment process in businessisoften carried out following 9 below steps:

Figure 1: HR recruitment process in business

(Source: (Dung, 2005)

a Identify recruitment demand

This stage focuses on identifying clearly the demand of labor in the business This is necessary for administrators know precisely the quantity, types of personnel and other requirements for vacancy The stage starts with work analysis which provides essential information of traits and requirements of the job in relation to

Integrate new employeesMake recruitment decisionBackground/ Health checkEvaluate candidatesHold entrance testHold primary interviewCollect and screen application filesRecruitment announcement and attracting labor

Identify recruitment demand

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other work Based on this data, managers may investigate the following questions: This position requires short of long-term person? This position requires any profession, degree or specialized consciousness? Whether recruit a new staff is necessary? What are the standards of profession, health status, personal ability, etc for this position?

After having the answers, enterprises can select the optimal choice of hiring or using another alternative technique for recruitment, for instance, working overtime, processing contracts (for producing enterprise), recruiting seasonal employees and outsourcing

b Recruitment announcement

The aim of this stage is to attract applicants from different sources to increase the number of selections and reach desired results To complete this objective, 3 following steps should be implemented: design announcement, specify the place of information and notify the information of recruitment Designing content and form

of bulletin is an essential step to make sure that it attracts the applicant’s attention The content of bulletin should illustrate clearly the following information:

- Introduction of enterprise and vacancy to help candidates have better comprehension about reputation of enterprise and attraction of this job

- Functions, responsibilities and mission of the job for candidates

- Interests for selected person such as salary, opportunity of training or studying, promotion, working environment, etc

- Instructions for administrative procedures, curriculum vitae and keeping contact with enterprise

* Several kind of notification for recruitment can be applied, such as:

- Notices on multi-media

- Announce recruitment demand on the notice board of enterprise

- Cooperate with universities, colleges and center of training for seeking suitable candidates with position requirements

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- Co-operate with mediate agency to announce, search and attract appropriate applicants

- Take advantages of the Internet and Social Media

Those notifications should be clear and briefly present basic requirements of the job for the candidates such as salary, educational degrees, virtue and personal characters and abilities

c Collecting and screening application files

This stage is to examine the suitability of the standards of the candidates who take part in the recruitment and non-select inappropriate candidates to minimize costs for enterprises and applicants as well Recording and categorizing of resumes for further usage will be necessary Candidates must submit to enterprises the following documents:

- Application form

- CV certified by local authorities

- Certificate of health status issued by hospitals

- Certification and professional degrees, skills and abilities of candidates The issue of examining and screening the application forms is to find out the candidates that not meet the basic requirements of enterprise This process is particularly essential when there is a numerous number of applications form

d Hold preliminary interview

Preliminary interview often take up from 5 to 10 minutes which is used to eliminate unsuitable person or person have worse performance than the others who did not being find out in previous stage

e Hold entrance contest

After minimizing the quantity of inappropriate persons through screening application forms and preliminary interview, the administrator prepare a contest to

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find out the most suitable persons for the job vacancy A competitive test can be implemented in various forms, depending on the particular kind of job There are 2 major kind of entrance exam in basic, including writing and speaking test, or mixture of both types Writing test is usually used to audit the awareness level persons in various areas such as language, social knowledge and law Meanwhile; writing exam can be hold under the forms of essay Test of communication ability is usually in form of direct interview This is an opportunity for administrators and candidates to have comprehension between each other By the second interview, enterprise can examine more carefully the persons on many aspects such as working experience, degrees, personal personality and ability to get along with other people and real ability to adapt to the working environments, etc and even their appearance

f Evaluate candidates

After screening, enterprise will have necessary information and different interviewers will have different feelings about applicants Next, they can use the methods of marking in drafted criteria:

as well, enterprise cannot hire them if health status of candidate is not guaranteed

h Make recruitment decision

All steps in the recruitment process are very important but the most important step is the making recruitment decision or eliminating candidates To improve the

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accuracy of recruitment decisions, it is absolute to develop a abstract of the candidate profiles and consider carefully the candidates who are going to be an employee The contents of a recruitment decision include:

- Time and place of work, position assigned

- Working and breaking modes

- Conditions of labor safety and hygiene

- Rights of people who are employed

- Duties and powers of the employer

- The duration of employment

- The rules for severance, termination, settlement of disputes

i Integrate new employees

"An employee who is employed in a company without going through the program

of integration into the working environment is like a Vietnamese employee who is sent to work at a company in Europe - US without being furnished Consequently, the employee is lonely, like a fish out of water, causing mistakes, work inefficiently and then give out the worst result" (Than, 2007) The first aim of the integration program into the working environment is to help new employees adapt to the organization It is a program that introduces all matters related to the company like policies, rules or tasks that new employees will take responsibility They also need

to know information such as procedures, wages, welfare, safety, relationships in the organization

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CHAPTER II: CURRENT SITUATION OF HUMAN

RESOURCES RECRUITMENT AT VIETNAM OCEAN SHIPPING JOINT-STOCK COMPANY (VOSCO)

2.1 Overviewof Vietnam Ocean Shipping Joint-Stock Company

2.1.1 Introductionof Vietnam Ocean Shipping Joint-Stock Company

Figure 2: VOSCO’s headquarters are located at No 215 Lach Tray, Ngo

Quyen District, HaiPhong City, Viet Nam.

Vietnam Ocean Shipping Joint-Stock Company headquarters are located at

No 215 Lach Tray, Ngo Quyen District, HaiPhong City, Viet Nam Vietnam Ocean Shipping Joint-Stock Company (VOSCO), officially operating since January 1st,

2008, based on the conversion laid by Vietnam Ocean Shipping (VOSCO) which was established on July 1st, 1970

Since founding in 1970, VOSCO has made great, and efforts continuously expand, develop and improve its fleet VOSCO currently is having a diverse fleet of modern ships comprising general cargo, bulk carriers, product tankers and container vessels trading worldwide

Shipping is the main business activity of VOSCO VOSCO not only is the ship-owner, direct manage and other ship operators but also to participate in

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activities such as: chartering, ships selling and purchasing, and other related services through its subsidiaries and branches as agency services, freight forwarding

& logistics; ship repair service and supply lubricants and materials; provide crews

as well as joint venture and associates activities

VOSCO has efficiently established, implemented, maintained and operated the Safety, Quality and Environment management system (SQEMS) which has been developed and continuously improved in accordance with regulations and standard

of International Safety Management Code (ISM Code), ISO 9001:2008 and

Maritime Labor Convention (VOSCO, 2012)

VOSCO has the largest transport capacity in Vietnam VOSCO is the largest company in Vietnam in terms of transport capacity, VOSCO fleet has a total tonnage of 600,000 DWT close, about 20% of the total shipping capacity of the Vietnam Maritime Corporation (VINALINES) and 10% of the national fleet

About international competitiveness: VOSCO is one of very few companies shipping Vietnam have the ability to operate and compete on international markets The company is able to manage and exploit the ship, proactive seeking clients and output markets, exploitation and operation of ships not being dependent on other partners

With a long history of service and commitment to the maritime industry, VOSCO is proud to be one of the leading shipping companies in Vietnam, serving a numerous customers of domestic and overseas VOSCO iscommitment to high quality, professional, reliable service and ensure that VOSCO will provide quality

transportation services, professional and reputable help to the customers

2.1.2 Brief history

* The process of formation of the company can be summarized as follows:

 Name of company: Vietnam Ocean Shipping Joint-stock Company

 Date of establish: July 1st

, 1970 on the basis of merging 3 fleets: Self, Liberation and Win, keeping transportation duties during periods of war against America

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 The functions, duties and scope of activities: marine transport business, service, agent, broker, import, export, agency supplies, equipment and spare parts, lubricants, chemicals and many type of paints In addition, the company also has many different services such as: multimodal transport services, labor supply maritime industry in domestic and foreign market

Figure 3: The image of VOSCO’s headquarters in HaiPhong

- In 1956: Established State-owned “Sea-River Transport Corporation”

- In 1964: Separated River-way part intoCompany 102, Sea-way part into Vietnam Sea Transport Company (Company101) Takeover QuangBinh fishing fleets - iron shell fishing vessels - founded Company103

- On October 4th, 1966: Maritime Administration decided to dissolve the Vietnam Sea Transport Company to establish:

 “Liberation fleet”: manage maritime transport fleet and ships and large vessels (large vessels evacuated mainly to China, waiting for an opportunity the enemy northern ceasefire so comeback to transport in zones 4)

 “Win fleet”: manage River-way route transport fleet

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- On October 28th, 1967: Ministry of Transportation decision to dissolve 3 fleet and established Vietnam Ocean shipping company (VOSCO)

- On April 1st, 1975: Ministry of Transportation decision to establish Vietnam Coastal Shipping Company (VIETCOSHIP), manage the entire small fleet of Vietnam Ocean Shipping Company include: VTB.B, under 1000 DWT vessel, Liberation Ship, petroleum transportation River-way block, the number of people is 3,200 people, including: VOSCO manage 6 large vessels and 600 people

- Vietnam Ocean Shipping Joint-stock Company is a state-owned enterprise, was established, the organization operating by Decision No.29-TTg dated on January 26th, 1993 of Vietnam’s Prime Minister Since after becoming Vietnam’s independent accounting enterprises of Vietnam Marine Corporations (VINALINES)

by Decision No.250-TTg dateon April 29th, 1994 of the Prime Minister, Vietnam Ocean Shipping Joint-stock Company has organized and operate on “The charter organization and operation ofVietnam Ocean Shipping Joint-stock Company” was issued attach Decision No.622/QĐ-HĐQT dated on July 5th, 1996 ofthe Managing Boardof Vietnam Maritime Corporation

- In 2007, by Decision No.1367 QĐ/BGTVT dated on June 26th, 2006 of the Minister ofMinistry of TransportapprovalState-owned enterprise directly under Vietnam Marine Corporations performequalized in 2006, Decision No.687 QĐ/BGTVT dated on March 29th, 2007 of Ministry of Transport about value ofequalized enterprise, by meeting of abnormal Workers and Employees Congress

on June 6th, 2007 suggested to improve equalized plans, labor arrangements plans and draft of charter operations of Vietnam Ocean Shipping Joint-stock Company In

2008, Vietnam Ocean Shipping Companyofficially renamed to Vietnam Ocean Shipping Joint-stock Company

 Vietnamese name:CôngtycổphầnvậntảibiểnViệt Nam

 International name:Vietnam Ocean Shipping Joint-stock Company

 Abbreviated name: VOSCO

 Headquarters: No 215 Lach Tray, Ngo Quyen District, HaiPhong City,

Vietnam

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2.1.3 Principles and orientations

- The mission: VOSCO is committed to providing services with the highest

quality, reliability and flexibility; the assurance of safe for people, ships, cargo and the environment has always been a top priority VOSCO attempt to become the first choice of customers in the field of maritime transport through continuous improvement and this is due to preponderance of integrity, teamwork spirit, as well

as exploit train operators

- The vision: VOSCO has become a brand on a par Southeast Asia, to bring a best

marine transportation services with the most competitive price for our customers

a Core values:

- Professionalism:VOSCO always maintain professionalism in everything

VOSCO has the capacity, expertise and good cooperation in the provision of services to satisfy customer requirements

- Credibility: Staffs at the VOSCO are reliable They work on the principle of

respect towards in each other, associated with the responsibility of each individual

- Responsibility: The staff is working devotedly and responsibly as what they

have committed to

- Decisiveness and creativity: VOSCO always believe and be innovative in

carrying out the work and our duties

- Loyalty: With staffs are loyal, honest, always trying to maintain integrity and strictly

respect the ethical rules of the company VOSCO is proud to be working for VOSCO

- Transparency and ethical standards: transparent financial policy, solid resource

platform, always fair and consistent in the application of policies and prices VOSCOhas a responsibility to society and information honestly with related parties

b Mottoes of VOSCO:

- Sustainable Partners – Trust ship-owners

- Quality, efficiency, innovation, safety, economy and reliability

- The saying is indenture –(Source: (VOSCO, 2012))

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2.1.4 Organization structure and main business of VOSCO

a Organization structure, function and duties of organization at VOSCO

Figure 4: Organization chart of at VOSCO

(Source: (VOSCO, 2012))

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b Function, duties and organization structure of VOSCO

* Director (Chief Executive Office)

As the head of the company, is responsible before the company and the State for the business results, the general direction of production and business activities of the Company Assistants to the director are a deputy director of in charge of engineering operation and a deputy director in charge of business

*Vice General Director

Duties to advise the Managing Director and exploitation fleet effective, subject

to the direction of the business manager, have the following powers and duties: Organizations, operators, business fleet exploiting source, advisory and contracting transportation, organization, and implementation of the contract Develop a plan for commercial exploitation Operating all activities of the vessel regularly assesses and analyzes the operations of the fleet

*Technical Department

Duties to advise the Director manage technical, norms fuel and supplies of the fleet There are following duties: Manage engineering, ship repair plans for each construction division, supplemented, and adjusted the criteria, technical specifications, repair, preservation and maintenance of marine equipment Manage

on the quality, features, technical equipment and machinery on board Scheduling periodic maintenance, supervise the process and repairing ships Alternative proposal, additional equipment and materials, spare parts suitable for technical progress, research receptive to scientific and technical progress to fleet units

* Personnel Department

Advice the Director about the organization of personnel and salary in the process of production and business activities is responsible for: planning for labor and salary, build, modify the regulations relating to the management of labor and payment of salaries to workers Advising the Director on labor arrangements, organize training for professional qualifications all the staff and employees in the company to match requirements Proposed amendment, construction, adjusting the

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organizational structure of the company, statistics labor, wages, work organization, workplace safety and allocation labor protection

* Finance and Accounting Department

There are mainly the following tasks: collect data and report the results of production and business activities, situation on the use financial, material and capital of the company Perform periodic reporting, good service, requirements audit regime, financial inspection of their superiors Ensure data recording, review the situation, and give the other related departments

* Safety Quality Management Department (SQM)

There are following duties: Manage and guide the implementation of maritime safety legislation Manage guiding insurance operations for ships, automobiles, labor accidents in the company Supervise and inspect the implementation of the maritime security requirements under international law and the law of Vietnam, tracking duration of the registration papers and registration-related business activities

* Planning and Investment Department

Duty to advise the Director in trading relationships, helping Directors build investment projects to develop production, with duties and powers: Relations with superior line agencies, companies concerned Research domestic and foreign markets Purchase of fuel and supplies overseas production request Build blueprints joint venture, association, purchase and sale of vehicles

* Administration Department

Managing of archive documents, planning the procurement of office equipment - Manage land, buildings, office area companies - Manage and service work demand, meetings, receiving guests It also manages the archives, planning and procurement of office equipment Manage and planning the repair and maintenance of headquarters and branches, furniture equipment, office equipment, communications equipment and relations with authorities in localto allow for production and business activities of the company is conveniently

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* Inspection and Security Department

The mission of Inspection and Security department isPolitical security protection safety in the company - Fire Prevention and fighting in the company campus – to advise the Director of the implementing ordinances the Militia and Self

* VOSCO Crewing Center

As a center which is the general director authorized to manage, use, transfer officers and crew who worked on the Company’s ship and provide crew members to work the domestic and abroad The Center is actively implementing business operations, financing, organization and staffing as assigned by the Company; be bound to the obligations and rights with the company and provide crew members to work in the domestic and abroad The Center is actively implementing business operations, financing, organization and staffing as assigned by the Company; be bound to the obligations and rights with the company

Director of the Center crew is responsible for receiving, management, exploitation and use of assets effectively facilities, equipment and personnel assigned by the Company to perform the tasks of production, and the the company's services

* VOSCO Maritime Training Center

The functions of the center is to organize training courses, coaching, evaluate, classified, and grant certifications match the business registration under the license

of the competent authority for seafarers inside and outside the company, organize different training courses by demand of the Company to improve the quality of labor in general and the quality of the crew members in particular.In addition, the center also supply and manages crews in the domestic marketor in foreign countries under the authorization of the General Director of the Company VOSCO Maritime Training Center is actively implementing business operations, finance, organization and personnel as assigned by the Company; be bound to the obligations and rights with the company

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* Branches and Centers

- VOSCO – Can Tho Branch

- VOSCO – Ho Chi Minh Branch

- VOSCO – NhaTrang Branch

- VOSCO – QuyNhon Branch

- VOSCO – Da Nang Branch

- VOSCO – QuangNinh Branch

- VOSCO – Ha Noi Branch

- VOSCO Maritime Training Center (VMTC)

- VOSCO Crewing Center (VCC)

2.1.5 Scope of main business

+ Ship-owners, ship manager and ship operator of bulk carriers, product tankers and container vessels

+ Multi - model transportation& logistic services

+ Chartering

+ Shipping agency (Ship’s agent and broker)

+ Transportation agency

+ International freight forwarding for air and ocean going cargoes

+ The supplying of highly qualified crews for foreign ship-owners

+ Marine supplies and materials service

+ Ship sale and purchase

+ Shipping co-operation and joint ventures – (Source: (VOSCO, 2012))

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2.1.6 Infrastructureof VOSCO

Office buildings of Vietnam Ocean Shipping Joint-stock Company are fully equipped with necessary office equipment There is the largest ocean fleet in Vietnam with many enterprises and repair firms and in order to serve the fleet of VOSCO Infrastructure of VOSCO includes:

- Buildings and architecture

- Machinery and equipment for the work

- The branches, agents, ship repair firms

- The fleet consists of 29 units

- Canoe team transfers people to the ship, from ship to shore

- Canoe team specializes in providing freshwater and services for ships

- A number of vehicles in service for administrative work

2.2 Current situation recruitment of Vietnam Ocean Shipping Joint-stock Company in 2014 – 2015

In recent year, the shipping industry was difficult and challenging As one of the largest shipping company in Vietnam, JSC Vietnam Ocean Shipping not avoids these difficulties This greatly affects production and business results of the Company In 2014 - 2015, Vietnam Ocean Shipping JSC business losses not achieve planned by charges, profit from the chartering reduced; scarce source of goods Meanwhile, operating expenses for the fleet remained at high levels So the company has implemented to minimize operating costs, including labor costs Also,

in 2014 – 2015, the company has sold some bulk carriers and tankers Therefore, in the year 2014 – 2015,labor recruitmentis also limited