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

Forthose reasons, I choose the topic "Recommendations to enhance human resourcesrecruitment process at Vietnam Ocean Shipping Joint-stock Company” for mydissertation.Due to the limited p

In fact, the development of economic and society depends on many factors butthey are primarily dependent mostly on human factors More than any otherresource, people have always occupied an important position in the development ofeconomic and society of a nation

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

The importance of the human factor in any enterprises or any organizationswhether is large scale or small scale is an obvious fact that no one will deny.Among the different component of the economy, human resource is considered asthe most precious resource of any enterprises and businesses, playing a veryimportant role in deciding the existence and the development of those enterprises.Apparently, a great volume of capital along with modern equipment, facilities willbecome worthless without the management of people So as to have a stand anddevelop in the market economy, concern about recruiting and training the humanresources who meet the requirements of companies is essential – the necessaryprogress and the initial input of human resource will decide the success of enterpriseand 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 ResourceDepartment at Vietnam Ocean Shipping Joint-stock Company As a reputablecompany in shipping industry, Vietnam Ocean Shipping Joint-stock Company(VOSCO) proposes a logical progress for recruitment Nonetheless, severalproblems have occurred in recruitment and not being paid attention by the company.The issue of concentrating on managing recruitment progress from VOSCO still hasrestricted techniques and number skilled and qualified labors applying for a job incompany Concurrently, a few stages such as using of test methods or detectinghealth problems for candidates during the progress of recruitment have been

skipped In fact, it can influence considerably to quality of human resource Forthose reasons, I choose the topic "Recommendations to enhance human resourcesrecruitment process at Vietnam Ocean Shipping Joint-stock Company” for mydissertation.

Due to the limited practice time and complexity and extensive work shoulddissertation to practice my many shortcomings, I would like to receive the attentionand comments from teachers in subjects organized Finally, with sincere gratitude Iwould like to express their gratitude to Mr Nguyen Viet Hoang Son to directinstruction, the entire leader of the company, the uncles and aunts, brothers andsisters in the administrative organization room guided me in internship to completethis dissertation

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

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

The contents of this dissertation reflect my own personal views, and are notnecessarily 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.

This dissertation with topic “Recommendations to enhance human resourcesrecruitment process at Vietnam Ocean Shipping Joint-stock Company (VOSCO)examines the concept of definition of human resources and how important of humanresources recruitment process to the Company Research methods used in thisstudy: Initially, the model will be checked for validity in interviews with seniorexecutives working in administration department Next step is checking the dataabout quantity, sex, age and qualifications of labors in the Company Based on thedata of the paper, the methodology to make analysis on evaluate and predict of theperformance of the VOSCO's human resource recruitment in order to discoverstrengths and weaknesses and improve the human resources recruitment process atVOSCO It also defines the VOSCO’s human resource recruitment, proposes therecommendations and ideas of the recruitment of human resource at VOSCO Thisdissertation will contribute to manage employees more effective and strict andevaluation towards a specific the quality of human resources recruitment process.This dissertation was done on the basis of assessment through some reportsabout human resources as well as the ways of proceeding, personnel recruitmentprocess of the company to employees

Keywords:

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

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

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

Male/FemaleVietnam Maritime CorporationSafety Quality ManagementSafety, Quality and Environment management systemVietnam Coastal Shipping Company

Vietnam Ocean Shipping Joint – Stock Company

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 thedate May 1st, 2015 43Table 5: Qualification of employees at VOSCO 45Table 6: Labor structure by ages at VOSCO 46

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

1 Necessitation

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

At Vietnam Ocean Shipping Joint-stock Company” is a combination of basictheories on human resources recruitment and practical skills It focus on analyzinglabor recruitment process at Vietnam Ocean Shipping Joint-stock Company in 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, therecommendations and some solutions are also given in order to attract, training anduphold human resources also reform human resources recruitment process atVietnam Ocean Shipping Joint-stock Company Additionally, some generalinformation about Vietnam Ocean Shipping Joint-stock Company is also presentedwithin the paper

2 Methodology

The dissertation targets the assessment of the use and the recruitment ofhuman resources at Vietnam Ocean Shipping Joint-stock Company and suggestingsome measurement to develop and improve the quality of Human resourcesrecruitment of the Company The research within the paper is basically based onqualitative and quantitative methods During the internship, general status ofVietnam Ocean Shipping Joint-stock Company human resources is summarizedthrough actual observation and interview to get information from Vietnam OceanShipping Joint-stock Company leaders and staffs The current and detailed humanresources recruitment situation will be surveyed based on data mostly gathered fromHuman Resource and Administration Department of Vietnam Ocean ShippingJoint-stock Company After that, a data, which is analysis, will be established toclarify qualifications and variations of labor source at the company all over time

3 Research scope

The human resources structure (2014-2015) and labor recruitment (withrecruitment 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 whichtime from August 10th to October30th was for internship at Vietnam Ocean ShippingJoint-stock Company and dissertation preparation and remaining time was forwriting 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 ShippingJoint-stock Company This dissertation was done on the basis of assessment throughsome reports about human resources as well as the ways of proceeding, personnelrecruitment and the salaries or treatment policies of the company to employees

CHAPTER I: LITERATURE REVIEW1.1 Literature Review

1.1.1 What is Human Resource (HR)?

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

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

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

On the other hand, business dictionary also illustrated “Human Resource” isthe resource that exists in the ability, awareness and skills as well of human being[ CITATION Bus151 \l 1033 ] That means Human Resource is the greatest mixture

of physical ability and mentality of people which is employed in working andproduction process In addition, it also can be considered to be “the least mobile ofthe four factors of production, and (under right conditions) it improves with age andexperience, which no other resource can do It is therefore regard as the scarcest and

most crucial productive resource that creates the largest and longest lasting

advantage for an organization” [ CITATION Men \l 1033 ].

1.1.2 What is Human Resources Recruitment (HRR)?

Human Resources recruitment can be understand as a progress of searchingand hiring the appropriate candidates (from inside or outside of a company) for theemployment, in a cost and time effective way The process of recruitment consists

of investigating the requirement of an occupation that attracts workers, testing andchoosing application, hiring and integrating the new staff to company [CITATIONBus15 \l 1033 ]

Human Resources recruitment contains two primary contents of hiring andchoosing, in which hiring refers to the progress of attracting applicants to thebusinesses for the selection of recruitment and screening qualified person of aspectsbut 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 therequirements of the job, among people looking for a job

Recruitment is usually considered as one of the first essential stage of labororganization This stage is always an issue for managers using human resourcesbecause of the investigation, assessment and classification of human resources Thedemand to look for human resources to fulfill the objectives of companies just canonly be implemented quickly and 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 objectivesand approach, financial capacity, time and policies of the business

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

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

1.2 Significance of Human Resources Recruitment

Recruitment of human resources is considered to be extremely crucial andmeaningful to be success or failure of every business Recruitment has a directimpact to the business, to employees and also to further the socio-economicdevelopment of the country

For any one company, labor is always a resource to create strength and it isalso a determining factor in the survival and development of the company Thecompany has built the labor regime and wage regulation of the Company andcompliance with the laws of the Government Besides, with the plans on trainingand recruitment labors reasonable to meet the requirements of long-termdevelopment of the Company

1.2.1 For business

Firstly, Human Resources Recruitment effectively will give business a team ofskilled, dynamic and creative labors, adding to human resources in accordance withthe business recruitment of the enterprise Recruitment has great importance tobusiness 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 capacityand qualifications to complete assigned work, helping enterprises reach goodbusiness 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 therequirement 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 theviews of the administrators, which will guide them to follow those views

Secondly, recruitment creates a more competitive working environment andworking spirit within the workers of enterprises, thereby enhancing businessefficiency.

1.2.3 For society

The recruitment of businesses enables implementation of social and economicgoals, people with jobs and incomes means reduction of the social burden ofunemployment and other social evils At the same time, the recruitment ofbusinesses also makes use of social resources most useful way In summary,recruitment is a very important with business, good administrators to directlymonitor 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 manydifferent aspects based on the requirements of the job, to find the people suit therequirements has set out among the candidates has attracted in the recruitingprocess

b Some requirements when recruit labors

The basis of recruitment is the job requirements have been set according to thejob 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 humanresources planning

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

- Selecting employees who have discipline, honesty and adherence with thejob and organization

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 skillsappropriate 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 ofsupplemented employees for businesses, but also it really is a process of seekingand selection carefully It requires a combination between departments in theenterprises 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 internalemployees or current employees’ promotions to higher positions

a Internal sources

There are 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 orcontract positions, present/temporary employees to permanent positions, formeremployees for part-time, freelancer or work at home

* Advantages of internal recruitment

- No cost 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

- 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 orthey may approach recruitment agencies In order to compete with other companiesand increase standard, employers hunt for best talents working for other topcompanies

* Methods of external recruitment

Some major external recruitment methods are job portals, internal and externalemployee referrals, and recruitment/headhunting agencies, job advertisements onwebsites, newspapers, campus recruitment and walk-in

* Advantages of external recruitment

- Create new opportunities for external employees

- Best candidates can be placed for the roles

- Increase the percentage of selection

- There are fewer chances for relationship

- Able to recruit the skills needed

* Disadvantages of external recruitment

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

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 canbuild itself a recruitment process, depending on its own particular characteristics ofeach business type, but basically, H recruitment process in business is often carriedout following 9 below steps:

Figure 1: HR recruitment process in business

(Source: [ CITATION Dun05 \l 1033 ]

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 personneland other requirements for vacancy The stage starts with work analysis whichprovides 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

other work Based on this data, managers may investigate the following questions:This position requires short of long-term person? This position requires anyprofession, degree or specialized consciousness? Whether recruit a new staff isnecessary? 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 orusing another alternative technique for recruitment, for instance, working overtime,processing contracts (for producing enterprise), recruiting seasonal employees andoutsourcing

b Recruitment announcement

The aim of this stage is to attract applicants from different sources to increasethe number of selections and reach desired results To complete this objective, 3following steps should be implemented: design announcement, specify the place ofinformation 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 bettercomprehension 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 orstudying, promotion, working environment, etc

- Instructions for administrative procedures, curriculum vitae and keepingcontact 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 seekingsuitable candidates with position requirements

- Co-operate with mediate agency to announce, search and attract appropriateapplicants.

- Take advantages of the Internet and Social Media

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

c Collecting and screening application files

This stage is to examine the suitability of the standards of the candidates whotake part in the recruitment and non-select inappropriate candidates to minimizecosts for enterprises and applicants as well Recording and categorizing of resumesfor further usage will be necessary Candidates must submit to enterprises thefollowing 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 thecandidates that not meet the basic requirements of enterprise This process isparticularly 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 toeliminate unsuitable person or person have worse performance than the others whodid not being find out in previous stage

e Hold entrance contest

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

find out the most suitable persons for the job vacancy A competitive test can beimplemented in various forms, depending on the particular kind of job There are 2major kind of entrance exam in basic, including writing and speaking test, ormixture of both types Writing test is usually used to audit the awareness levelpersons 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 isusually in form of direct interview This is an opportunity for administrators andcandidates to have comprehension between each other By the second interview,enterprise can examine more carefully the persons on many aspects such as workingexperience, degrees, personal personality and ability to get along with other peopleand real ability to adapt to the working environments, etc and even theirappearance

f Evaluate candidates

After screening, enterprise will have necessary information and differentinterviewers will have different feelings about applicants Next, they can use themethods 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 importantstep is the making recruitment decision or eliminating candidates To improve the

accuracy of recruitment decisions, it is absolute to develop a abstract of thecandidate profiles and consider carefully the candidates who are going to be anemployee 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 issent 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 inefficientlyand then give out the worst result" [ CITATION Tha07 \l 1033 ] The first aim ofthe integration program into the working environment is to help new employeesadapt to the organization It is a program that introduces all matters related to thecompany 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

CHAPTER II: CURRENT SITUATION OF HUMAN

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

2.1 Overview of Vietnam Ocean Shipping Joint-Stock Company

2.1.1 Introduction of Vietnam Ocean Shipping Joint-Stock Company

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

Quyen District, Hai Phong 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 OceanShipping Joint-Stock Company (VOSCO), officially operating since January 1st,

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

Since founding in 1970, VOSCO has made great, and efforts continuouslyexpand, develop and improve its fleet VOSCO currently is having a diverse fleet ofmodern ships comprising general cargo, bulk carriers, product tankers and containervessels trading worldwide

Shipping is the main business activity of VOSCO VOSCO not only is theship-owner, direct manage and other ship operators but also to participate inactivities such as: chartering, ships selling and purchasing, and other relatedservices 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 theSafety, Quality and Environment management system (SQEMS) which has beendeveloped and continuously improved in accordance with regulations and standard

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

Maritime Labor Convention [ CITATION VOS122 \l 1033 ]

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

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

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 anumerous customers of domestic and overseas VOSCO is commitment to highquality, professional, reliable service and ensure that VOSCO will provide qualitytransportation 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 againstAmerica.

 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 hasmany different services such as: multimodal transport services, labor supplymaritime industry in domestic and foreign market

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

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

- In 1964: Separated River-way part into Company 102, Sea-way part intoVietnam Sea Transport Company (Company101) Takeover Quang Binh fishingfleets - iron shell fishing vessels - founded Company103

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

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

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

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

- On April 1st, 1975: Ministry of Transportation decision to establish VietnamCoastal Shipping Company (VIETCOSHIP), manage the entire small fleet ofVietnam Ocean Shipping Company include: VTB.B, under 1000 DWT vessel,Liberation Ship, petroleum transportation River-way block, the number of people is3,200 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 onJanuary 26th, 1993 of Vietnam’s Prime Minister Since after becoming Vietnam’sindependent accounting enterprises of Vietnam Marine Corporations (VINALINES)

by Decision No.250-TTg date on April 29th, 1994 of the Prime Minister, VietnamOcean Shipping Joint-stock Company has organized and operate on “The charterorganization and operation of Vietnam Ocean Shipping Joint-stock Company” wasissued attach Decision No.622/QĐ-HĐQT dated on July 5th, 1996 of the ManagingBoard of Vietnam Maritime Corporation

- In 2007, by Decision No.1367 QĐ/BGTVT dated on June 26th, 2006 of theMinister of Ministry of Transport approval State-owned enterprise directly underVietnam Marine Corporations perform equalized in 2006, Decision No.687QĐ/BGTVT dated on March 29th, 2007 of Ministry of Transport about value ofequalized enterprise, by meeting of abnormal Workers and Employees Congress onJune 6th, 2007 suggested to improve equalized plans, labor arrangements plans anddraft of charter operations of Vietnam Ocean Shipping Joint-stock Company In

2008, Vietnam Ocean Shipping Company officially renamed to Vietnam OceanShipping Joint-stock Company

Vietnamese name: Công ty cổ phần vận tải biểnViệt Nam.

International name: Vietnam Ocean Shipping Joint-stock Company.

Abbreviated name: VOSCO.

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

Vietnam

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 andthe environment has always been a top priority VOSCO attempt to become the firstchoice of customers in the field of maritime transport through continuousimprovement 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 ofservices 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: [CITATION VOS12 \l 1033 ])

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: [ CITATION A12 \l 1033 ])

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 Statefor the business results, the general direction of production and business activities ofthe Company Assistants to the director are a deputy director of in charge ofengineering 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 contractingtransportation, organization, and implementation of the contract Develop a plan forcommercial exploitation Operating all activities of the vessel regularly assesses andanalyzes the operations of the fleet

* Technical Department

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

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

* Personnel Department

Advice the Director about the organization of personnel and salary in theprocess of production and business activities is responsible for: planning for laborand salary, build, modify the regulations relating to the management of labor andpayment 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 theorganizational 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 ofproduction and business activities, situation on the use financial, material andcapital of the company Perform periodic reporting, good service, requirementsaudit regime, financial inspection of their superiors Ensure data recording, reviewthe situation, and give the other related departments

* Safety Quality Management Department (SQM)

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

* Planning and Investment Department

Duty to advise the Director in trading relationships, helping Directors buildinvestment projects to develop production, with duties and powers: Relations withsuperior line agencies, companies concerned Research domestic and foreignmarkets Purchase of fuel and supplies overseas production request Build blueprintsjoint venture, association, purchase and sale of vehicles

* Administration Department

Managing of archive documents, planning the procurement of officeequipment - Manage land, buildings, office area companies - Manage and servicework demand, meetings, receiving guests It also manages the archives, planningand procurement of office equipment Manage and planning the repair andmaintenance of headquarters and branches, furniture equipment, office equipment,communications equipment and relations with authorities in local to allow forproduction and business activities of the company is conveniently

* Inspection and Security Department

The mission of Inspection and Security department is Political securityprotection safety in the company - Fire Prevention and fighting in the companycampus – to advise the Director of the implementing ordinances the Militia andSelf

* VOSCO Crewing Center

As a center which is the general director authorized to manage, use, transferofficers and crew who worked on the Company’s ship and provide crew members towork the domestic and abroad The Center is actively implementing businessoperations, financing, organization and staffing as assigned by the Company; bebound to the obligations and rights with the company and provide crew members towork in the domestic and abroad The Center is actively implementing businessoperations, financing, organization and staffing as assigned by the Company; bebound 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 personnelassigned by the Company to perform the tasks of production, and the the company'sservices

* 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, organizedifferent training courses by demand of the Company to improve the quality oflabor in general and the quality of the crew members in particular In addition, thecenter also supply and manages crews in the domestic market or in foreign countriesunder the authorization of the General Director of the Company VOSCO MaritimeTraining Center is actively implementing business operations, finance, organizationand personnel as assigned by the Company; be bound to the obligations and rightswith the company

* 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, producttankers 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