Topic: A FIVE-YEAR-STRATEGY OF HUMAN DEVELOPMENT FOR BUSINESS
I. OVERVIEW OF VIETNAM NATIONAL PETROLEUM GROUP
II. STRATEGIC OBJECTIVES OF BUSINESS PRODUCTION
III. PRESENT MANPOWER CONDITION
IV. HUMAN DEVELOPMENT GOALS
V. SWOT ANALYSIS OF HUMAN DEVELOPMENT IN ENTERPRISES
VI. HUMAN DEVELOPMENT STRATEGY
I. Overview of the Vietnam National Petroleum Group:
Vietnam National Petroleum Group is a strong economic group of Vietnam, which is
well-known in the region and around the world.
- Full name: VIETNAM NATIONAL PETROLEUM GROUP
- International trade name: VIETNAM NATIONAL PETROLEUM GROUP
- Abbreviated name: PETROLIMEX
- Address of head office: Number 1 Kham Thien street, Dong Da, Hanoi, Vietnam
- Logo of Vietnam National Petroleum Group:
- Slogan: "Taking you further"
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- Core Values:
The current Vietnam National Petroleum Group was formed from capitalizing and
restructuring Vietnam Petroleum Corporation according to the decision 828/QD-TTg
May 31, 2011 of the Prime Minister; is a public company in the acts 2946/UBCK-QLPH
August 17, 2012 by the State Securities Commission. Earlier, predecessor of Vietnam
Petroleum Corporation is Petroleum Corporation, which was established under Decree
09/BTN dated Jan 12, 1956 of Commercial Ministry and was re-established under
Decision No. 224/TTg dated April 17, 1995 of the Prime Minister.
Petrolimex is the key state-owned enterprise, which is especially ranked, national- scaled;
it secures 60% market share of nationwide gasoline; Petrolimex always plays a leading
role, stabilizing and developing petroleum market, petrochemical products to meet
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consumers’ demand, serving the economic development of the country and ensuring
national security ... Petrolimex currently has 42 member companies, 34 affiliated
branches and enterprises of 100% state- capital member companies, 23 joint-stock
company with capital governed by Petrolimex, 3 foreign joint ventures and 1 branch in
Singapore. In particular, Petrolimex member units directly trade in petrol in 62/63
provinces and cities. Overseas, Petrolimex has 1 Petrolimex sole member limited liability
company in Singapore, Petrolimex sole member limited liability company in Laos and
has opened a Petrolimex representative office in Cambodia.
Key business domain of Petrolimex:
- Export-importing and trading of petroleum, oil refining and petrochemical products.
- Equity investments in other companies to business in sectors that Petrolimex is trading
and other sectors under the provisions of law.
- In addition to the fields of petroleum, lubricants and petrochemicals, liquefied gas and
petroleum transportation, Petrolimex has investment in the sectors:
+ Design, construction, mechanical and petroleum equipment;
+ Insurance, banking and other commercial activities and services, in which many brands
are top-ranked in Vietnam such as PLC, PGC, VIPCO, VITACO, PJICO.
In the petroleum sector, Petrolimex keeps the leading role in the domestic market in
accordance with the Government's direction. Along with 14 other leading petroleum
enterprises, Petrolimex ensures fully and timely oil kinds, serving socio-economic
development of the country, ensuring national security and consumption needs of people.
For retail fuel operations, of the approximately 13,500 petrol outlets in all economic
sectors, Petrolimex owns 2,170 stores nationwide, creating favorable conditions for
consumers to use goods or services directly provided by Petrolimex. In the isolated and
deprived areas - where business efficiency is low but socio-political significance is high,
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Petrolimex has higher market share than the average market share of the Group.
Generally, on the national scale, based on oil production actually sold in the domestic
market (in Vietnam) in 2012, the actual market share of Petrolimex is approximately
Besides petroleum products, in Petrolimex stores, there are other goods and services,
such as lubricants, gas, insurance, banking, etc. produced and provided by the Petrolimex
member units production and supply. Petrolimex is the first enterprise to apply the
method of selling petrol paid by Flexicard with many utilities and will deploy money
transfer services in Vietnam.
II. Strategic objectives of business production of Petrolimex Group in the period
2013 - 2017 (05 years).
2012 was the first year Vietnam National Petroleum Corporation officially changed to the
form of joint-stock companies operating under the Enterprise Law. Besides the
deployment of business activities, the Group has focused on checking up to complete the
provisions and regulations of the internal management with new model and regulations of
law, so workload should arise relatively largely. Although some main costs such as
output, profits have not reached the target due to objective factors of the economy,
basically the group still maintains stability and develops in the right direction.
Organizationally, the group initially has successful application and is the first unit in the
field of oil business confidently deploy ERP model in production.
On the business side, the total assets of the Corporation reached 57.651 billion, net sales
reached 200.847 billion, pre-tax profit reached 978 billion, and the dividend is expected
to be 5%.
With these positive signs in 2012, the strategic objectives of Petrolimex Group in the
coming years are set out as follows:
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1. Medium-term and long-term strategic objectives of business production in the
a. Development Strategy:
- Improve efficiency of investment usage, invest concentratively, not spread out and make
full use of business advantage.
- Identify the strategic objectives in line with vision 2020, and on that basis develop and
implement a plan of comprehensive restructure.
- Locate the processes in the petroleum business chain, partition and reorganize the
market, improve business mechanism, actively operate business with market when
conditions are allowed.
- Do not stop promoting, protecting and developing the brand Petrolimex on domestic
and foreign markets; strengthen control of the business to increase efficiency, mitigate
- Prioritize the development of sales channels in the effective region and market; increase
business capacity; modernize, computerize and innovate management of retail
operations.; invest in modernizing technology infrastructure to meet growing demand of
Petrolimex, especially storage systems, major ports, key projects such as oil refining and
petrochemical, bonded warehouses, the tanker restructuring ... Then create competitive
advantages, especially competition with foreign oil firms. Expectedly open 100-200 new
sales points annually. (Diagram 3)
- Gradually increase the efficiency of management s on the basis of ERP system
b. Financial Strategy (table 1, diagram 1)
Table 1: Financial Objectives 2013-2017, Petrolimex Group
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Earnings per share
Diagram 1: Plan of profit growth 2013 – 2017 – Petrolimex
Diagram 2: Plan of developing operation network– Petrolimex 2013 - 2017
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2. Short-term strategic objectives of business production in 2013
a. General Strategy:
- Improve management effectiveness based on ERP system operation. Improve efficiency
of using capital by: Increase inventory turnover, maintain reasonable inventory, use
flexible financial instruments, invest concentratively, shorten time of construction
building, ensure deployment efficiency.
- Develop and implement schemes of exploiting the added value in the retail store with
convenient and advanced services.
- Operate system of organization and new administration after the restructure; regularly
assess to adjust to fit the reality.
- Strengthen international integration, promote investment and business overseas.
- Continue to practice thrift; deploy divestments in areas which are not directly related to
the main field of business and unable to grow in scale and efficiency is not high ... as
directed by the Prime Minister.
b. Financial objectives in 2013:
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- Target sales: 200.357 billion VND
- Target profit: 1980 billion VND (50% comes from petroleum business)
- Total assets: 65,000 billion VND
- Earnings per share: 110 VND / share
- The rate of dividend: 8%
III. Present manpower condition
As a state-owned enterprise which has been completely equitized, Vietnam National
Petroleum Corporation has expeditiously built and completed the restructuring scheme to
submit the Ministry of Industry and Trade, Ministry of Finance and the Prime Minister
for approval. Based on the viewpoints of the Party, the Government, ministries and longterm strategy, the scheme of the Group has made the important point in orienting the
development of oil and gas business sector, meeting all demands for petroleum and
petrochemical products for socio-economic development, national security and serving
people's lives on a national scale, gradually expanding business operations to other
countries in the region and the effectively diversifying business activities.
The group’s position now is a specially ranked state business with large scale across the
country, ensuring 60% market share of nationwide gasoline.
To achieve great success in business development strategy of the Corporation, the human
resource management in business is focused. Therefore manpower recruitment has
always been focused in recent years; it can be said that the corporation has always
maintained workforce stability and strongly developed recruitment and training staff in
the whole enterprise. That the total numbers of employees in the company in recent years
reach the target both in the quantity and quality of human resources is an important factor
contributing to the growing development of the corporation.
Quantity of employees
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1. Quantity of employees
- Direct Labor
- Indirect Labor
- Without training
The number of employees in corporations with master and university level accounts for
about 17.5% (in 2010) and often holds positions from senior to junior leaders.
From the diagram above, it can be seen that the number of masters and bachelors has
gradually increased over the years, and the number of beginner and those who are
without training has dramatically declined in 2012. The reason is that the training of the
Corporation are focused and well done, not the increasing number of input employers.
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About recruitment, the corporation is particularly interested in strategy of human resource
training and development for the purpose of the corporation is raising the recruitment
quality rather than merely increasing quantity of labor. Increasing the quality of labor
means hiring the right person for the right job, so that employees can develop all their
abilities and well complete all assigned work, helping the corporation to achieve the
targets. The quality of workers employed and trained over the years has increased; in
particular, the number of university and mid-level workers has increased over the
With proper awareness of the issue of using labor in the most effective way and to adapt
to the frequent change of business environment as well as to capture the development of
science and technology, the corporation has built a strategy of training and developing a
high quality human resource.
The structure and quality of human resources
The structure and quality of human resources
• Qualifications of staff officers
- Total number of employees
100,0 In which woman : 5.043
0,2 Doctor of Philosophy : 10
17,3 Master : 24
- Without training
• The structure of the leadership team
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Technolog Other Tota
Improving the quality of human resource management in Petrolimex
The purpose of the training and quality of human resources in the Corporation is to
overcome the existing deficiency, to enhance qualification of employees; to create high
quality staff, to make full use of competitive advantage through the use of human
In the past year, Vietnam Petroleum Corporation (Petrolimex) has continuously organized
training course to enhance the management and utilization of Petrolimex Human
Resource Management program (PHR - Human Resources Petrolimex). The program is
supported by Joint-stock Digital Solution Company (Digisoco).
20 students participating in this course include staff, experts working in human resources
management and information technology at 10 Petrolimex sole member limited liability
companies: Area I, Area II, Area III, Region V, B12, Ha Son Binh, Ha Nam Ninh, Nghe
An, Phu Khanh and Southwest - are companies with large scale in labor and organization.
PHR meets the management requirements on both aspects of organizational structure and
human resource management, with many advanced functions to ensure the efficiency of
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human resource management. With PHR - the lookup, search for information,
establishment of the target reports are made quickly, completely and accurately.
Petrolimex put PHR into exploitation in 42 oil companies and a number of joint stock
companies from Oct 5,2010 (replace Petrolimex Human Resource Management software
- PMP - Personal Management Programme) under Decision No. 705 / XD-QD-CEO on
Oct 1, 2010 of General Director of the Vietnam National Petroleum Company (now the
Vietnam National Petroleum Group).
Since 2010, Petrolimex has opened 10 PHR training courses in North, Central and South
with 218 participants and officially granted access right to 409 people.
Up to now, 16,945 personnel file has been fully updated information with portraits in
accordance with the standard.
Human Resource Management is an activity in the general development strategy of
Petrolimex, always attracting special attention of leaders at all levels.
IV. The general objectives of developing human resources of Vietnam Petroleum
Corporation are based on the following principles:
Principle 1: People completely have the capacity to develop; everyone in the
organization has the ability to grow and will try to develop constantly to keep the growth
of businesses as well as individuals. People have always adapted to the conditions, when
the external environment is constantly changing and the scientific knowledge is
developing, demand for development in human intellect is inevitable.
Principle 2: Everyone has his own value so each person is a particular person, different
from the others and is able to contribute initiatives.
Principle 3: benefits of employees and goals of the organization can be combined
together, the goals of the organization and development of human resources include: to
motivate, to encourage all members to try to increase their contributions to the
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organization; to attract and have a good use of qualified individuals; to achieve the
greatest value through the products of workers to offset the cost spent for their training
and development. On the other hand, the desires of employees through training and
development are: to stabilize for development, to have advancement opportunities,
promotion, to work in the favorable position in which they can contribute and dedicate
most, where they will be provided with related training information. Once their basic
needs are recognized and guaranteed, members of the organization will be encouraged to
Principle 4: Development of human resources and employee training is an investment
that will generate significant benefits because the development and training of human
resources are the means to achieve the most effective development of the organization.
From the above principles, the Corporation set out targets for the development of human
resources of the company today, including: common objectives, specific objectives
(quality and quantity of human resources)
1. The common goal
- Maintain and develop current leadership team. Have advanced training for middle-level
and young managers to become the resource officers to develop Corporation;
- Search high-quality human resources by offering attractive remuneration on the labor
market, clear and transparent working mechanisms;
- Train and hire new qualified technical staff by offering attractive remuneration, clear
and transparent working mechanisms;
- Continuously train the current human resources of the Corporation;
2. Specific Objectives
a. Target of human resources quality
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With the enormous movement and development of the economy and particularly in the
competition of petroleum groups and Military Petroleum Corporation - MIPECORP, the
Corporation should set out the criteria and the quality of the human resource of the
company to ensure the sustainable development and the company's position on the
Vietnam and international market. To ensure the implementation of the objectives in
developing and improving the quality of human capital of the Corporation is required, as
- To train to improve the current management levels of the Company; to prioritize
training subordinates and young managers to ensure the stable maintenance and replace
retired managers or unqualified managers who cannot guarantee the Company's
development. By: allowing staff to participate in the overseas courses of master and
Doctor of Philosophy in the field of the company; simultaneously offer good treatment
policy for overseas staff;
- To recruit leadership positions with the priority criteria for those who have working
experience in the petroleum industry and are trained from the advanced- technology
- To train the new technology level for technical staff: to ensure their adaptation to the
new and modern technical conditions with methods of training in site or sending a
number of typical technical engineers to study technology at the modern petroleum
companies, particularly in Japan; after the completion of the course, these technical
engineers will retrain others in the company;
- Open classes about sales training for staff; communication skills with clients of every
gas station; or apply test plans on automatic gas stations to enhance the image of the
- To regularly implement customer care departments;
b. Target of human resources quantity
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Below is a plan of the Corporation in 2013, in which about 1,090 new people are
recruited. The number of masters is 53, the rest is 1,898 people including graduates and
technical workers consist of.
Woman : 5.943
Philosophy : 18
Master : 69
V. SWOT Analysis of Human Resource Development of Vietnam National
- Leaders and technical staff are qualified and professional
- There is a clear work assignment
- There are sound guidelines and development policies
- The workers of the company are highly skilled with annual train and professional coach
- Moral support for all the officers and employees of corporations is fully concerned.
Many emulation movements are launched in the company, such as sports festival,
Emulation Fighter, Good Person with Good Job…
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- Limited ability of internal coordination among departments in the company, among the
companies in the Corporation Company
- Different levels of mid-level officers and senior managers
- The subsidiaries’ difficulty in organizing upgrading examination for workers due to
insufficient conditions to establish exam council.
OPPORTUNITY / Opportunity
- The corporation is identified as the key state-owned enterprise, especially has a national
scale. Training, recruitment of corporations increasingly focused.
- Quality of human resource is increasingly enhanced along with the development of the
society, besides the domestic human resources, the growth of the corporation increasingly
attracts high quality human resources from developed countries around the world
- The implementation of international training programs does enhance the quality of
employees in the corporation.
THREAT / Challenge
- Training regulations of the Corporation and its subsidiaries exist many suitable and
- No synchronization in recruitment, training and post-training
- No standards for oil workers leads to inconsistent training content
- No long-term plans for training, recruitment, most needs of recruitment and training are
to address the immediate situation
VI. 5-year-strategy of developing human resource of the Vietnam Petroleum
Corporation (2013 to 2017)
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Vietnam National Petroleum Corporation has developed strategies up to 2015, with a
vision to 2025, approved by the Politburo and the Prime Minister. Group leaders have
made decisions, which consider three factors including: human resources, technology
science and management modernization three key solutions to create a breakthrough in
order to successfully implement the above strategy.
1. Recruitment policy:
To recruit publicly in consistent processes and regulations throughout the corporation.
To attract talents, to recruit the right people in regulatory standards and to properly
arrange to develop the capacity of the employees.
To prioritize recruiting experienced labors who are working in the petroleum industry,
Construction or the well-trained experts from well-known abroad universities in the
human resources orientation of the company.
To encourage employees working in PETROLIMEX to find and recommend suitable
candidates for the recruitment criteria of PETROLIMEX to participate in recruitment.
Workers do not have to pay any costs for labor recruitment, except for cost of registration
dossiers for job centers (if through these units’ introduction) according to regulations of
PETROLIMEX always welcomes those who want to contribute and grow up with their
talent, wisdom, virtue and passion for the job.
Applicants who meet the recruitment requirements (based on candidate profile) and the
recruitment needs of the company will be participating in selection tests (general
knowledge, expertise, foreign language) and interviews. Especially in international
integration stage and improvement of the staff quality, PETROLIMEX is looking forward
to qualified candidates such as bachelors, masters who have graduated abroad.
2. Policy of training and human resource development
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PETROLIMEX regards the training and development of human resources as one of the
leading vital tasks.
PETROLIMEX has built and implemented strategies of human resource development of
PETROLIMEX till 2015 and oriented to 2025; it is implementing innovative solutions for
training and development of human resources. To achieve the objective of sustainable
development on par with the petroleum groups in the region and the world, the officials
and employees of the Group have been gradually trained and re-trained to improve their
level of management, expertise, skills, foreign languages, information technology ... at
the domestic and abroad training center.
PETROLIMEX always create favorable conditions for workers with training and
development opportunities in order to build an officer team with good expertise,
professional knowledge, professional ethics and zeal with professional work style.
a. Policy of integration training: 100% new staff recruited will be allowed to participate
in integration training programs to help workers well understand the history and
development of the company, understand the work environment and products of the
company and they will be trained about related profession to quickly seize and integrate
with the job at the company.
b. Advanced Training Policy: Annually, the company regularly organizes training courses
to improve skills, intensive knowledge for employees during working process to continue
to improve and enhance professional skills for good jobs in the company.
c. Policy of training staff: For excellent employees with potential growth and
management staff, the company is always interested in developing them by frequently
training and supplementing with leadership skills, change management, event plan and
organization, improving management effectiveness through mobilization of human
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Starting from the human status and the reality of specific production of petroleum
industry, policy PETROLIMEX lays down as a policy the development of training
system at all levels from technical workers - College - University - Postgraduate,
primarily focusing on specialized industries to serve petroleum activities. This system is
shown as follows:
Petroleum Vocational Schools and Colleges
Train operational manpower for projects
Train Petroleum safety- environment
Train and issue International certificates
Train and frequently foster, train technology transfer
Train foreign language, information technology
Train for industry entry
Train engineers, bachelors
Train masters, Ph.D.
Vietnam Petroleum Institute
Train and frequently foster, train for industry entry
Train and update, improve Petroleum specialized
Train masters, Ph.D. combined with studying in
requirements of business production.
Train technology experts
Training Centers of Units
Train in specific requirements of each unit
3. Policy of salaries, bonuses, benefits and remuneration:
PETROLIMEX always concerns about building a suitable systems of salaries, bonuses,
benefits, remuneration for workers for each period and each stage of development,
ensuring flexibility and fair proportionally with levels of contribution and competition in
the labor market.
a. Salaries and allowances:
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Basic Salary: The salary workers receive is based on the rank matched with the job
responsibility they are in charge of the company.
Business Salary: The wage workers are entitled is based on the general business
performance of the company and evaluation of job performance of each individual.
Allowances: Additions which are often added in income, depending on the work nature
and conditions of laborers, including: seniority allowances, toxic allowances, concurrent
allowances, night shift allowances, dearness allowances, attractive allowances, capacity
allowances, mobility allowances, specific-job allowances.
Schedule for considering wage increase for workers is every 6 months.
In addition to the policy of salary and allowances, PETROLIMEX also applies bonus
policy to encourage and motivate employees throughout the company to try their best to
contribute and strive hard in all positions to for a growing PETROLIMEX. Teams and
individuals with excellent achievements will be honored and rewarded suitably and
timely in the consistent, fair and public regulations, combined with spiritual and material
rewards (Certificate of Merit, cash, domestic or abroad tourism).
Regular reward system for teams and individuals is based on the result of business
activities in 3 months, the first and the end 6 months of fiscal year (commonly known as
Unexpected bonus for teams and individuals with excellent performance is useful in
setting a good example, initiatives, scientific research, and technological innovation.
There is a bonus system for theme emulation activities launched by PETROLIMEX.
There is a bonus system for holidays, anniversaries of the country and the foundation day
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c. Benefits and remuneration:
Insurance policy: All employees signing an official labor contract with the Company are
entitled to social insurance in accordance with the Labor Law.
Collective rest and entertainment system:
- Staff working in PETROLIMEX enjoys 12 days’ leave/ year and every 5 years of
seniority working at PETROLIMEX the staff are entitled to additional 01 day’s leave/
- Depending on the results of the business and welfare fund, typically the company
organizes "PETROLIMEX Family Day" to create conditions for the spouses and children
of staff to meet and exchange; holds sightseeing tours and holidays for all staff in the
company; and organizes special travel programs for a number of officials and employees
for their contribution to the company’s general development. PETROLIMEX often pays
attention to and gives spiritual and material to laborers and their relatives on the
anniversaries in years, such as International Women's Day, International Children's Day,
Mid-Autumn Festival , ...
4. Planning, promotion, appointment:
All employees with excellent performance, who are recognized every year and have
development potential, will be arranged to be trained, fostered, promoted, and appointed
into management positions when needed.
PETROLIMEX always prioritizes to promote, appoint officials from interval sources.
For those who have the management capacity and ability to undertake the work at a
higher level will always be prioritized in rotation training to accumulate enough
knowledge and experience for more important management position in the future.
5. Work environment:
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With a mission to help PETROLIMEX to become a corporation with sustainable
development, with top service quality according to international standards,
PETROLIMEX is always interested in building its own culture and a team of officers
who are clean, creative, enthusiastic and of firm stuff in life.
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