In the current conditions of limited production resources, to improve the business efficiency of enterprises in general, forestry enterprises in particular, human resources play a particularly important role because this is the direct resource that creates revenue and profit for enterprises. Talking about human resources means talking about the physical strength (health) and mental strength (working skills, professional qualifications, working experience, etc.) of employees. If an enterprise has abundant human resources with good physical strength, high qualifications, good working experience, and eagerness to learn, it will create favorable conditions for the company to expand production and business, increase revenue, improve labor productivity, increase profits, and vice versa, if an enterprise has human resources with low quality, it will cause many difficulties for enterprises. Therefore, to improve business efficiency, enterprises need to implement solutions well to improve the quality of human resources, ensuring sufficient quantity. Along with that, it is necessary to implement well and synchronously solutions to motivate workers and minimize the problem of "brain drain".
In addition, the labor organization structure is also a factor that greatly affects the business efficiency of the enterprise. The labor organization structure is understood as the arrangement and assignment of personnel, departments, and divisions of the enterprise. If an enterprise has a streamlined management structure, clear functions and tasks of the departments, no overlap, and reasonable labor arrangement according to the professional qualifications, work experience, and strengths of the employees, it will create great conditions to improve business efficiency and vice versa [20].
1.4.1.2. Level of corporate governance
This is a factor related to the leadership, thinking, and position arrangement of the business administrator. The administrator is the subject in the management system, the person who takes on certain positions in the enterprise's apparatus, controls the work of the departments and individuals under his authority and is responsible for the results. Therefore, this factor greatly affects the business efficiency of the enterprise. An administrator with good leadership ability, who knows how to plan, organize, control work, and knows how to communicate internally will create favorable conditions for the implementation of the enterprise's goals and vice versa. Therefore, to improve business efficiency, enterprises need to arrange the management apparatus from the top to the grassroots level in a reasonable manner.
ensure the necessary skills in expertise, personnel, and thinking for the enterprise's management apparatus [21].
1.4.1.3. Capital sources and level of capital management and use
Capital sources and the level of capital management and use are among the factors that greatly affect the business efficiency of enterprises. To improve business efficiency, enterprises need to improve the efficiency of capital use. To achieve that, based on strategies, plans and business plans, enterprises need to clearly plan and determine the amount of capital needed to put into the production and business process, the proportion of capital sources in the total capital that the enterprise mobilizes and uses in the production and business process must be reasonable. Along with that, it is necessary to well control loans, loan costs, equity capital, business investments, capital mobilization sources... to minimize capital stagnation and capital appropriation. From managing and using capital sources well, it will create good financial capacity for enterprises, improve business efficiency, thereby promoting enterprise development [27].
1.4.1.4. Technical infrastructure factors of the enterprise
This factor is understood as all the houses, yards, means of transport, machinery, equipment, technology, etc. to serve the production and business process of the enterprise. When the enterprise has good facilities, it will create favorable conditions for the enterprise to implement business plans, thereby achieving business goals. However, to improve business efficiency, the problem is that the enterprise needs to exploit the technical facilities of the enterprise well, along with that, it is necessary to regularly innovate, repair and upgrade the facilities in a reasonable manner.
1.4.2. Objective factors
There are many external objective factors that affect the business performance of enterprises such as competitors, supply sources and prices of raw materials, issues related to state policies and laws, and socio-economic factors [21, 22]. Specifically:
1.4.2.1. Competitors
This is a factor that directly affects the business results of the enterprise, it is related to the market share, revenue, and profit of the enterprise. In the context of Vietnam integrating more deeply into the world economy, enterprises not only have to face domestic competitors but also have to compete fiercely with enterprises.
foreign countries. Therefore, to survive and develop, businesses need to carefully research competitors and market demand, find measures to control costs, improve product quality, increase revenue, increase profits, or in other words, need to improve business efficiency of the business.
1.4.2.2. Sources of supply and prices of raw materials
In the production and business process of enterprises, raw materials are the factors that make up the product, often having a large proportion in the production and business costs of the product. Therefore, if the cost of raw materials is high, it will make the production and business costs large, affecting the cost, selling price, revenue and profit of the enterprise. However, the supply source and price fluctuations of raw materials are factors outside the enterprise, and it is difficult for the enterprise to control this factor. Therefore, to improve business efficiency, enterprises need to analyze economic fluctuations, price fluctuations, and choose a guaranteed supply source to build reasonable business plans.
1.4.2.3. Customers
Customers are those who directly consume products, generate revenue for businesses, and determine the existence and development of businesses in a market economy. Due to differences in age, interests, living conditions, education, gender, etc., each customer group has its own characteristics in terms of demand for the business's products and services. Therefore, to generate revenue, businesses need to carefully research the needs, tastes, living conditions, psychology, etc. of customers to create products and services that meet those needs and tastes.
1.4.2.4. State legal policies
Enterprises operate under a market mechanism with regulation and management by the state. When operating, enterprises must comply with the legal system prescribed by the state such as labor law, environmental protection law, tax law, information technology, communications... Along with that, the state also builds and implements a system of policies that greatly affect the operation of enterprises. Therefore, small changes in state legal policies affect the production and business of enterprises.
1.4.2.5. Socio-economic factors
This is a factor that can become an opportunity or a risk for the business activities of the enterprise. Economic factors include: economic growth rate, bank interest rates, economic policies of the state... They not only affect the business performance of the enterprise but also affect the micro environment of the enterprise. In the era of open economy, free competition as today requires each enterprise to have a certain position to ensure against negative impacts from the environment, on the other hand, economic factors are relatively broad, so enterprises need to be selective to identify the specific impacts that most directly affect the enterprise, thereby having solutions to limit negative impacts.
In particular, for forestry enterprises, in addition to the task of economic development, there is another main task, which is the social task. Due to the characteristics of the production and business areas of forestry enterprises, which are mainly in the midland and mountainous areas, it is also the place where ethnic minorities live. Therefore, social factors greatly affect the business efficiency of enterprises. When building business plans, in addition to calculating economic efficiency, enterprises need to calculate social efficiency such as attracting the participation of the local community in the business process, creating jobs and income for local people, or in other words, enterprises need to reasonably balance between economic and social goals.
1.4.2.6. Natural environmental factors
Due to the business characteristics of forestry enterprises with long cycles, high risks, large scale, the business object is forest trees, so it depends a lot on natural factors. This characteristic has significantly affected the situation of production organization, management, and use of resource factors in the production and business process of enterprises.
First of all, the investment capital for forest plantation business is very large but is stagnant for a long time, the circulation speed is slow, the circulation and recovery time is long, the risk and cost of capital use are high due to the long production cycle. Therefore, enterprises have difficulty in improving the efficiency of capital use, leading to an impact on the business efficiency of enterprises.
Because the production object of the enterprise is forest trees, mainly taking place in the natural environment, fluctuations in natural factors such as light, wind speed,
Rainfall, temperature, humus, slope of the hill... greatly affect the growth and development of trees, thereby affecting the output, revenue and profit of the enterprise. In fact, if any enterprise is located in an area with favorable natural conditions, relatively fertile land, the growth and development of the forest will be fast, bringing high business efficiency and vice versa. Along with that, due to the long production cycle, many forest areas are close to the exploitation period, but due to fluctuations in natural factors such as flash floods, forest fires, it can destroy the entire business results of the enterprise. Therefore, it greatly affects the business efficiency of enterprises.
Next, because the main operating areas are in the midland and mountainous areas with difficult socio-economic conditions, businesses have to make large investments, many additional costs arise, increasing costs (training costs for people, building roads into forests that are difficult to exploit, transportation, etc.), leading to a decrease in business profits.
CHAPTER 2
BUSINESS PERFORMANCE OF NGUYEN VAN TROI FORESTRY ONE MEMBER CO., LTD
2.1. Overview of Nguyen Van Troi Forestry Company Limited
2.1.1. History of formation and development of the company
Some basic information of the company is as follows:
- Full company name in Vietnamese: Nguyen Van Troi Forestry One Member Co., Ltd.
- Transaction name: Nguyen Van Troi Forestry One Member Co., Ltd.
- Head office: Doi Binh commune, Yen Son district, Tuyen Quang province
- Tax code: 5000155997
- Charter capital: 7,000,000,000 VND (Seven billion VND).
- Business form: 100% state-owned enterprise, under the People's Committee of Tuyen Quang Province.
Nguyen Van Troi Forestry One Member Co., Ltd., formerly Nguyen Van Troi Forestry Farm, was established under Decision No. 92/QD-UB dated March 19, 1993 of the People's Committee of Tuyen Quang province as the Project Management Board of Program 327. Mission: Mobilizing and organizing the implementation of afforestation to cover bare hills and mountains in communes along National Highway 2 in the south of Yen Son district.
In 1997, the whole farm and residence of 03 production teams were received from Tuyen Binh Forestry according to Decision No. 325/QD-UB of the Provincial People's Committee dated April 26, 1997, including Trung Mon, Ky Lam, and My Lam teams, with a planned land area of 13,041.5 hectares and 141 employees.
Decision No. 852/QD-UB, dated October 1, 1998 of the People's Committee of Tuyen Quang province on the establishment of state-owned enterprise: Nguyen Van Troi Forestry Farm.
Decision No. 628/QD-UB, dated November 7, 2008 of Tuyen Quang Provincial People's Committee on converting Nguyen Van Troi Forestry Farm into Nguyen Van Troi Forestry Company.
Decision No. 176/QD-CT, dated March 9, 2012 of the Chairman of Tuyen Quang Provincial People's Committee on converting Nguyen Van Troi Forestry Company into Nguyen Van Troi Forestry One Member Limited Liability Company.
Figure 2.1. The company's model of tissue-cultured hybrid acacia plantation
(Source: Forestry Department, 2020)
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Identify Rating Levels and Rating Scales
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of the islanders. Therefore, this indicator will be divided into two sub-indicators:
a1. Natural tourism attractiveness a2. Cultural tourism attractiveness
b. Tourist capacity
The two island communes in Quan Lan have different capacities to receive tourists. Minh Chau Commune is home to many standard hotels and resorts, attracting high-income domestic and international tourists. Meanwhile, Quan Lan Commune has many motels mainly built and operated by local people, so the scale and quality are not high, and will be suitable for ordinary tourists such as students.
c. Time of exploitation of Quan Lan Island Commune:
Quan Lan tourism is seasonal due to weather and climate conditions and festivals only take place on certain days of the year, specifically in spring. In Quan Lan commune, the period from April to June and from September to November is considered the best time to visit Quan Lan because the cultural tourism activities are mainly associated with festivals taking place during this time.
Minh Chau island commune:
Tourism exploitation time is all year round, because this is a place with a number of tourist attractions with diverse ecosystems such as Bai Tu Long National Park Research Center, Tram forest, Turtle Laying Beach, so besides coming to the beach for tourism and vacation in the summer, Minh Chau will attract research groups to come for tourism combined with research at other times of the year.
d. Sustainability
The sustainability of ecotourism sites in Quan Lan and Minh Chau communes depends on the sensitivity of the ecosystems to climate changes.
landscape. In general, these tourist destinations have a fairly high level of sustainability, because they are natural ecosystems, planned and protected. However, if a large number of tourists gather at certain times, it can exceed the carrying capacity and affect the sustainability of the environment (polluted beaches, damaged trees, animals moving away from their habitats, etc.), then the sustainability of the above ecosystems (natural ecosystems, human ecosystems) will also be affected and become less sustainable.
e. Location and accessibility
Both island communes have ports to take tourists to visit from Van Don wharf:
- Quan Lan – Van Don traffic route:
Phuc Thinh – Viet Anh high-speed boat and Quang Minh high-speed boat, depart at 8am and 2pm from Van Don to Quan Lan, and at 7am and 1pm from Quan Lan to Van Don. There are also wooden boats departing at 7am and 1pm.
- Van Don - Minh Chau traffic route:
Chung Huong high-speed train, Minh Chau train, morning 7:30 and afternoon 13:30 from Van Don to Minh Chau, morning 6:30 and afternoon 13:00 from Minh Chau to Van Don.
f. Infrastructure
Despite receiving investment attention, the issue of infrastructure and technical facilities for tourism on Quan Lan Island is still an issue that needs to be resolved because it has a direct impact on the implementation of ecotourism activities. The minimum conditions for serving tourists such as accommodation, electricity, water, communication, especially medical services, and security work need to be given top priority. Ecotourism spots in Minh Chau commune are assessed to have better infrastructure and technical facilities for tourism because there are quite complete and synchronous conditions for serving tourists, meeting many needs of domestic and foreign tourists.
3.2.1.4. Determine assessment levels and assessment scales
Corresponding to the levels of each criterion, the index is the score of those levels in the order of 4, 3, 2, 1 decreasing according to the standard of each level: very attractive (4), attractive (3), average (2), less attractive (1).
3.2.1.5. Determining the coefficients of the criteria
For the assessment of DLST in the two communes of Quan Lan and Minh Chau islands, the students added evaluation coefficients to show the importance of the criteria and indicators as follows:
Coefficient 3 with criteria: Attractiveness, Exploitation time. These are the 2 most important criteria for attracting tourists to tourism in general and eco-tourism in particular, so they have the highest coefficient.
Coefficient 2 with criteria: Capacity, Infrastructure, Location and accessibility . Because the assessment area is an island commune of Van Don district, the above criteria are selected by the author with appropriate coefficients at the average level.
Coefficient 1 with criteria: Sustainability. Quan Lan has natural and human-made ecotourism sites, with high biodiversity and little impact from local human factors. Most of the ecotourism sites are still wild, so they are highly sustainable.
3.2.1.6. Results of DLST assessment on Quan Lan island
a. Assessment of the potential for natural tourism development
For Minh Chau commune:
+ Natural tourism attractiveness is determined to be very attractive (4 points) and the most important coefficient (coefficient 3), so the score of the Attractiveness criterion is 4 x 3 = 12.
+ Capacity is determined as average (2 points) and the coefficient is quite important (coefficient 2), then the score of Capacity criterion is 2 x 2 = 4.
+ Exploitation time is long (4 points), the most important coefficient (coefficient 3) so the score of the Exploitation time criterion is 4 x 3 = 12.
+ Sustainability is determined as sustainable (4 points), the important coefficient is the average coefficient (coefficient 1), so the score of the Sustainability criterion is 4 x 1 = 4 points
+ Location and accessibility are determined to be quite favorable (2 points), the coefficient is quite important (coefficient 2), the criterion score is 2 x 2 = 4 points.
+ Infrastructure is assessed as good (3 points), the coefficient is quite important (coefficient 2), then the score of the Infrastructure criterion is 3 x 2 = 6 points.
The total score for evaluating DLST in Minh Chau commune according to 6 evaluation criteria is determined as: 12 + 4 + 12 + 4 + 4 + 6 = 42 points
Similar assessment for Quan Lan commune, we have the following table:
Table 3.3: Assessment of the potential for natural ecotourism development in Quan Lan and Minh Chau communes
Attractiveness of self-tourismof course
Capacity
Mining time
Sustainability
Location and accessibility
Infrastructure
Result
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
CommuneMinh Chau
12
12
4
8
12
12
4
4
4
8
6
8
42/52
Quan CommuneLan
6
12
6
8
9
12
4
4
4
8
4
8
33/52
b. Assessment of the potential for humanistic tourism development
For Quan Lan commune:
+ The attractiveness of human tourism is determined to be very attractive (4 points) and the most important coefficient (coefficient 3), so the score of the Attractiveness criterion is 4 x 3 = 12.
+ Capacity is determined to be large (3 points) and the coefficient is quite important (coefficient 2), then the score of the Capacity criterion is 3 x 2 = 6.
+ Mining time is average (3 points), the most important coefficient (coefficient 3) so the score of the Mining time criterion is 3 x 3 = 9.
+ Sustainability is determined as sustainable (4 points), the important coefficient is the average coefficient (coefficient 1), so the score of the Sustainability criterion is 4 x 1 = 4 points.
+ Location and accessibility are determined to be quite favorable (2 points), the coefficient is quite important (coefficient 2), the criterion score is 2 x 2 = 4 points.
+ Infrastructure is rated as average (2 points), the coefficient is quite important (coefficient 2), then the score of the Infrastructure criterion is 2 x 2 = 4 points.
The total score for evaluating DLST in Quan Lan commune according to 6 evaluation criteria is determined as: 12 + 6 + 6 + 4 + 4 + 4 = 36 points.
Similar assessment with Minh Chau commune we have the following table:
Table 3.4: Assessment of the potential for developing humanistic eco-tourism in Quan Lan and Minh Chau communes
Attractiveness of human tourismliterature
Capacity
Mining time
Sustainability
Location and accessibility
Infrastructure
Result
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Quan CommuneLan
12
12
6
8
9
12
4
4
4
8
4
8
39/52
Minh CommuneChau
6
12
4
8
12
12
4
4
4
8
6
8
36/52
Basically, both Minh Chau and Quan Lan localities have quite favorable conditions for developing ecotourism. However, Quan Lan commune has more advantages to develop ecotourism in a humanistic direction, because this is an area with many famous historical relics such as Quan Lan Communal House, Quan Lan Pagoda, Temple worshiping the hero Tran Khanh Du, ... along with local festivals held annually such as the wind praying ceremony (March 15), Quan Lan festival (June 10-19); due to its location near the port and long exploitation time, the beaches in Quan Lan commune (especially Quan Lan beach) are no longer hygienic and clean to ensure the needs of tourists coming to relax and swim; this is also an area with many beautiful landscapes such as Got Beo wind pass, Ong Phong head, Voi Voi cave, but the ability to access these places is still very limited (dirt hill road, lots of gravel and rocks), especially during rainy and windy times; In addition, other natural resources such as mangrove forests and sea worms have not been really exploited for tourism purposes and ecotourism development. On the contrary, Minh Chau commune has more advantages in developing ecotourism in the direction of natural tourism, this is an area with diverse ecosystems such as at Rua De Beach, Bai Tu Long National Park Conservation Center...; Minh Chau beach is highly appreciated for its natural beauty and cleanliness, ranked in the top ten most beautiful beaches in Vietnam; Minh Chau commune is also home to Tram forest with a large area and a purity of up to 90%, suitable for building bridges through the forest (a very effective type of natural ecotourism currently applied by many countries) for tourists to sightsee, as well as for the purpose of studying and researching.
Figure 3.1: Thenmala Forest Bridge (India) Source: https://www.thenmalaecotourism.com/(August 21, 2019)
3.2.2. Using SWOT matrix to evaluate Quan Lan island tourism
General assessment of current tourism activities of Quan Lan island is shown through the following SWOT matrix:
Table 3.5: SWOT matrix evaluating tourism activities on Quan Lan island
Internal agent
Strengths- There is a lot of potential for tourism development, especially natural ecotourism and humanistic ecotourism.- The unskilled labor force is relatively abundant.- resource environmentunpolluted, still
Weaknesses- Poorly developed infrastructure, especially traffic routes to tourist destinations on the island.- The team of professional staff is still weak.- Tourism products in general
quite wild, originalintact
general and DLST in particularalone is monotonous.
External agents
Opportunity- Tourism is a key industry in the socio-economic development strategy of the province and Van Don economic zone.- Quan Lan was selected as a pilot area for eco-tourism development within the framework of the green growth project between Quang Ninh province and the Japanese organization JICA.- The flow of tourists and especially ecotourism in the world tends toincreasing
Challenge- Weather and climate change abnormally.- Competition in tourism products is increasingly fierce, especially with other localities in the province such as Ha Long, Mong Cai...- Awareness of tourists, especially domestic tourists, about ecotourism and nature conservation is not high.
Through summary analysis using SWOT matrix we see that:
To exploit strengths and take advantage of opportunities, it is necessary to:
- Diversify products and service types (build more tourism routes aimed at specific needs of tourists: experiential tourism immersed in nature, spiritual cultural tourism...)
- Effective exploitation of resources and differentiated products (natural resources and human resources)
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Business registration under Vietnam Enterprise Law - Current situation and some recommendations - 1 -
Factors Affecting Business Performance of Meiko Trading and Construction Company Limited -
Research on factors affecting the decision to purchase gypsum board of Huy An private trading enterprise from institutional customers in Ho Chi Minh City - 13 -
Current Status of Business Registration Regulations According to the 2014 Enterprise Law
Figure 2.2. The company's tissue culture nursery
(Source: Forestry Department, 2020)
2.1.2. The company's production and business lines
According to the business registration and tax registration certificate No. 5000155997 first issued by the Department of Planning and Investment of Tuyen Quang Province on April 16, 2012, the company's business lines include:
+ Forest planting and forest care
+ Forestry tree nursery
+ Exploiting wood of legal origin
+ Forestry service activities
+ Production and business of agroforestry
+ Production of wooden construction products from wood of legal origin
+ Production of packaging from wood of legal origin
+ Wholesale of bamboo, wood and processed wood
+ Project management consulting, investment project preparation, forestry project cost estimates (forest planting, care, protection)
+ Forestry technical materials services
+ Exploitation, production and trading of construction materials
+ Processing of forest products and trading of non-timber forest products.
2.1.3. The company's main products and services
Currently, the main products and services of Nguyen Van Troi Forestry Company Limited include:
+ The company's main products are wood products and there are 2 main types: round wood, finished sawn wood and semi-finished wood.
+ In addition, the company also diversifies products such as bricks, forestry and agricultural products...
This is a special product with a large production area, exclusive products; must go through many stages, depends a lot on natural weather conditions, complex and difficult terrain.
2.1.4. Characteristics of the company's management structure
The organizational chart of the management apparatus of Nguyen Van Troi Forestry Company Limited has a functional online form and is shown in diagram 2.1.
- Board of members: consists of 03 people, including the chairman of the board of members (concurrently director), 02 members including the permanent deputy director and the chief accountant of the company.
- Company Board of Directors: includes the director and deputy directors of the company:
+ Company Director: performs general management, directly responsible for financial planning, organizational structure, and personnel organization. The Director is the legal representative of the company, responsible to the Forestry Corporation and the law for the implementation of assigned rights and duties.
+ Deputy Director: Assists the Director in operating the company according to the assignment and authorization of the General Director, is responsible to the Director and before the law for assigned and authorized tasks. Currently, the company has 02 Deputy Directors, of which 01 Deputy Director