Business Strategy (574) Assignment Submission

the objective of the report is to provide consulting services to companies in a variety of areas, including internal and external analysis, critical adjustment, strategy execution and assessment, and strategy. Furthermore, the VRIO framework will be used to analyze how the organization creates a long-term competitive advantage to make some recommendations on the strategy they should pursue in the future.

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 32: Business Strategy (574)
Submission date 16/12/2021 Date received (1 st submission)
Re-submission date Date received (2 nd submission)
Student name Nguyễn Quốc Thái Student ID GBH190
Class GBH0908 Assessor name Thach D
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I certify that the assignment submission is entirely my own work and I fully understand the consequenc
understand that making a false declaration is a form of malpractice.
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Table of Contents
I. Introduction ........................................................................................................................................................ 3
II. Main Contents .................................................................................................................................................... 4
1. Strategic Capabilities ...................................................................................................................................... 4
1.1 Definition .................................................................................................................................................. 4
1.2 Strategic Capabilities of TEG ..................................................................................................................... 4
2. Benchmarking analysis ................................................................................................................................... 6
2.1. Definition ................................................................................................................................................. 6
2.2. Industry benchmarking ............................................................................................................................ 6
2.3. Market share and Distribution Network .................................................................................................. 6
2.4. Sales revenue ........................................................................................................................................... 7
2.5. Growth rate ............................................................................................................................................. 8
2.6. Products ................................................................................................................................................... 9
3. Value Chain ..................................................................................................................................................... 9
3.1. Definition ................................................................................................................................................. 9
3.2. Primary Activities ................................................................................................................................... 10
3.3 Support Activities .................................................................................................................................... 12
4. VRIO Framework........................................................................................................................................... 15
4.1 Definition ................................................................................................................................................ 15
4.2. VRIO assessment for TEG ....................................................................................................................... 15
5. Strengths and Weakness of ASM .................................................................................................................. 18
5.1 Strengths ................................................................................................................................................. 18
5.2 Weakness ................................................................................................................................................ 19
III. In Conclusion ................................................................................................................................................... 19
References ............................................................................................................................................................ 19
I. Introduction
In this assignment, the objective of the report is to provide consulting services to companies in a variety
of areas, including internal and external analysis, critical adjustment, strategy execution and assessment.
strategy. Furthermore, the VRIO framework will be used to analyze how the organization creates a long-

term competitive advantage to make some recommendations on the strategy they should pursue in the
future.
II. Main Contents
1. Strategic Capabilities
1.1 Definition
Hartman (2019) stated that Strategic capability refers to a business' ability to harness all its skills,
capabilities and resources in order to gain competitive advantage, and thus survive and increase its value
over time. While strategic capability does take into account the strategies a business uses, it focuses on
the organization's assets, resources and market position, projecting how well it will be able to employ
strategies in the future. There is no single method or universal metric for measuring or noting strategic
capability.
1.2 Strategic Capabilities of TEG
The first is the contribution of capital. Truong Thanh Solar Power Joint Stock Company (TTSP) is controlled
by TECGROUP with the rate of 51%, focusing mainly on the development of solar power projects in the
Central and Southern regions with the spirit of “Japanese quality, Vietnamese price” (TEG, 2020). Grasping
the trend of encouraging the development of renewable energy in Vietnam, TEG has decided to increase
and hold a controlling stake in Truong Thanh Energy Joint Stock Company (TTP). The company has
successfully developed 3 solar power plants including: Hoa Hoi (Phu Yen province), Binh Nguyen (Quang
Ngai province) and Cat Hiep (Binh Dinh province - completed divestment in 2020) with a total capacity of
close to 357MWp. Projects that have generated electricity since 2019 at a fixed FIT price of 9.35 UScents,
contribute an average of more than 500 million kWh per year to the Vietnamese power system. Notably,
TEG plans to buy back 20% of shares in a wind power project in Tra Vinh (expected to generate commercial
power before October 31, 2021 at a fixed FIT price of 9.80 UScents within 20 years). Currently, TEG is
continuing to deploy and complete investment procedures for implementing new wind power projects in
Binh Dinh (125MW), Tra Vinh province (2,000MW), solar power projects in Ha Tinh (250MWp) and Dak
Nong (50MWp) - potential areas for renewable energy development (nguyen, 2021).
The second concern of TEG is to attract investors. In which, foreign investors from Thailand and Korea
through Mernus Investment JSC own nearly 19% of TEG shares. In addition, TTVN Group's strategic
partners such as: B.Grimm Power Group, Sermsang Power Group, Kumagai Gumi, ACIT... are planning long-

term projects with TEG to implement new energy projects in the near future. This helps put TEG to a new
position in the renewable energy sector (nguyen, 2021).
The third is the brand name Truong Thanh Energy and Real Estate Joint Stock Company. In 2019, TEG's
brand was honored as "Asian QUALITY BRAND 2019". When hearing the phrase Sao Mai Group, people
immediately think of the trademark of the Economic Group, which always conjures up the image of a
sociable and likable culture among Vietnamese people. With TEG, each award and achievement awarded
by the state or organizations are recognized from the non-stop contributions of the Board of Directors,
staff, and students. Talented, eager to learn, hardworking and determined to rise up. This award once
again recognizes TEG's continuous efforts in bringing to the training market technology products and
training services of international standards and completely new learning experiences that help to convey
motivation and inspiration to students. Over the years, TEG is not only proud to have helped thousands of
students, students, and working people each year to have successful and rich lives, but also to build up a
spirit of Steel Warrior in each teacher and student. TEG in general, T3H, and EG in particular are full of
indomitableness, undaunted by difficulties and hardships to make a breakthrough through two core
business areas of the company, renewable energy and real estate (brand asia, 2019). These actions are
continued to bring the TEG brand to the masses. Therefore, when it comes to renewable energy, Truong
Thanh Energy and Real Estate Joint Stock Company will be more trusted.
Next is the capital efficiency. Real estate remains at the heart of TEG's strategy. However, TEG has
recognized the company's other growth potential area is renewable energy. Located in the ecosystem of
Vietnam Truong Thanh Group, TEG inherits not only the experience of investment and project
development but also directly participates in the construction and construction of many solar power
projects of the Group. In the coming years, it is expected that professional activities in the field of
renewable energy will continue to bring TEG a significant source of revenue. According to the 2021-2025
plan forecasted by SHS Securities, TEG's profit and cash flow in the next 5 years is expected to come mainly
from the real estate business segment with large projects such as Nghia An, Hoi Van, Truong Thanh Hung.
Yen, Bai Xep, Cat Hiep industrial cluster... The renewable energy segment brings steady financial cash flow
to TTP (subsidiary of TEG from 2021) and has a sudden profit from project transfer. Although the scale of
charter capital will double in 2021, the continuously increasing revenue and profit scale in the next 5 years

is the premise for TEG to rise to the group of 2,000 billion VND in revenue from 2025. TEG has a solid
revenue and profit growth roadmap, ensures that earnings per share grow over the years, and TEG's
dividend plan for the years from 2021 to 2025 is 8%-12%/year (nguyen, 2021).
2. Benchmarking analysis
2.1. Definition
Stapenhurst (2009) stated that Benchmarking is defined as the process of measuring products, services,
and processes against those of organizations known to be leaders in one or more aspects of their
operations. Benchmarking provides necessary insights to help you understand how your organization
compares with similar organizations, even if they are in a different business or have a different group of
customers.
2.2. Industry benchmarking
Currently, Gia Lai Electricity Joint Stock Company (GEC) is a company with a strong competitive advantage
over competitors in the renewable energy industry. GEC is also a formidable opponent of TEG. This is a
benchmark test for better analysis.
2.3. Market share and Distribution Network
In the field of renewable energy, GEC is currently the enterprise with the most projects connected to the
grid. According to EVN's statistics, by the end of May 2019, they accounted for 12% of the country's market
share. Unlike many other competitors in the field of solar power, Gia Lai Electricity Joint Stock Company
(GEC) does not invest in concentrated but spread-out investments. Their solar power plants usually have
a capacity of less than 100 MW and are scattered from Hue to the South. Currently, they have 5 solar
power plants that have been put into operation, the closest is the one in Truc Son - Dak Nong, officially
connected to the national grid on June 14. Truc Son factory is deployed on an area of 50 hectares, with a
capacity of 44.4 MW, a total investment of about 843 billion VND and has a record construction time of
only 3 months. Accordingly, the capacity of GEC's 5 factories is up to 260 MW, with a total investment of
nearly 5,000 billion VND. Every year, each solar power project is expected to contribute to the national
grid from 60 million to 103 million kWh, with an estimated revenue of 128 billion to 220 billion dong. Most
of GEC's projects are the first to power on in areas with relatively good solar radiation rates: from 4.6 - 5.3
kWh/m2/day with sunshine hours from 1,700 - 2,544 hours/year. As of the end of May 2019, it is estimated

that GEC's solar power market share in localities is 100% in Hue, 80% Gia Lai, 50% Long An, 40% Dak Nong
and 20% Binh Thuan, respectively and accounted for 12% of the national market share (cafebiz, 2019).
For TEG, this is a development opportunity in the solar power business for Sao Mai Group (ASM). It is
expected that in 2021, the capacity of solar and wind power will increase, possibly reaching 20,198 MW.
With the preferential mechanism on electricity selling price that the Government has issued, the profits
from solar power plants are now quite attractive. Therefore, businesses that have experience in building
factories quickly, with low investment rates, along with efficient operation are starting to enjoy worthy
results in 2021. In which, notably the Company Truong Thanh Energy Joint Stock Company (TEG) with 2
solar power projects Hoa Hoi and Binh Nguyen. Hoa Hoi project is built in Hoa Hoi, Hoa Quang Bac and
Hoa Quang Nam communes of Phu Hoa district, Phu Yen province with an installed capacity of 256MWp.
The project has a total investment of more than 5,700 billion VND. Phu Yen is a province with potential for
solar power development with a high number of sunny hours, averaging 2,300-2,500 hours a year. With
such a scale, Hoa Hoi project is one of the largest solar power projects in Southeast Asia at the time of
commercial power generation (June 2019) and has signed a power purchase agreement with EVN for 20
years. This is also a typical green project with a loan amount of about USD 186 million provided by ADB
with a preferential interest rate (tecgroup, 2021). Currently, TEG has not disclosed how much market share
the company holds in the solar power industry.
2.4. Sales revenue
GEC's revenue reached 805 billion dong, equivalent to 80% of the year plan and 2.2 times higher than the
same period last year. In which, revenue from electricity sales accounted for 90%, up 124% over the same
period with solar power accounting for 59% and hydroelectricity 31%. The remaining 10% is revenue from
other sources. From July to October, the electricity price of hydropower plants no longer includes the price
of capacity, only the price of electricity, so in terms of revenue structure of hydroelectricity, the growth
rate of hydroelectricity will not be achieved. Quantity. It is expected that starting in 2020, GEC will focus
on promoting other services related to core activities in order to diversify revenue sources and limit total
dependence on the weather. The company is currently mass-producing 20 solar-powered cleaning robots
built entirely by GEC's engineering team to supply other solar farms in the market (thanhnien, 2019).

For TEG, the solar power sector brings significant revenue. In 2020, Hoa Hoi Solar Power Plant achieved a
revenue of more than 780 billion VND with an electricity output of nearly 360 million kWh. This helped the
profit to reach nearly VND 185 billion, equivalent to a profit margin of 23.72%. Another project of Truong
Thanh Energy is Binh Nguyen Solar Power Plant with a total capacity of 49,608 MWp in Binh Son district,
Quang Ngai province. In 2020, the factory's profit after tax reached over 40 billion VND, a very high
increase compared to the revenue of the last 6 months of 2019 of 14 billion VND. With this profit margin,
the factory's profit margin on sales reaches 26% (tecgroup, 2021). From the above data, GEC has superior
sales revenue than TEG. Not only that, GEC is a company specializing in renewable energy, while TEG
focuses mainly on the real estate industry so TEG's current revenue is already a big step in the renewable
energy industry in Vietnam.
2.5. Growth rate
Currently, GEC owns 13 Hydropower Plants with a capacity of 85 MW, contributing an average revenue of
VND 400 billion/year in the last 5 years. Particularly, the system of 5 Solar Power Plants with a capacity of
about 260 MWp operates stably, exceeding the plan by 3% of output on average. The average annual
contribution of solar power plants is about 900 billion VND in revenue. As for Rooftop Solar Power, by the
end of the third quarter of 2020, GEC will operate about 22 MWp and is expected to reach 30 MWp by the
end of 2020. The average gross profit margin of the 5 Solar Power Plants in GEC is about 66%. /Year, higher
than the industry average at 35%. As of September 30, 2020, GEC's total assets reached VND 7,089 billion,
an increase of 5% compared to the beginning of the period in which cash and cash equivalents increased
sharply by 110%, ensuring quick payment needs in the short term. term. By the end of Q3 2020, GEC will
run about 22 MWp of rooftop solar and is expected to reach 30 MWp by the end of 2020 (geccom, 2020).
As for TEG, with the encouraging trend from the Vietnamese government on renewable energy, TEG
decided to increase and hold a controlling stake in Truong Thanh Energy Joint Stock Company (TTP), which
has successfully developed 3 solar power plants including: Hoa Hoi (Phu Yen province), Binh Nguyen
(Quang Ngai province) and Cat Hiep (Binh Dinh province completed divestment in 2020) with a total
capacity of nearly 357MWp. Currently, TTP is continuing to implement and complete investment
procedures for new wind power projects in Binh Dinh (125MW), Tra Vinh province (2,000MW), solar power
projects in Ha Tinh (250MWp) and Dak Nong (50MWp) these are potential areas for renewable energy
development (tecgroup, 2021).

From the above data, GEC is having a higher growth rate than TEG.
2.6. Products
According to GEC's annual report in 2020, GEC is always focused on improving techniques to ensure
uninterrupted operation of Power plants, increase output, and improve operational efficiency. This is also
the basis for maintaining and further improving the Company's Revenue as well as Profitability Indicators.
Improving the old technology of the NMs to replace them with new ones to automate, store data, analyze
reports, and evaluate equipment efficiency. The Engineering team with many years of experience in the
industry has invented and manufactured new technologies both for internal use and for commercialization
purposes to diversify revenue sources. Some of the optimal applications in GEC's business activities are
the monitoring system for the working condition of the Solar Panel arrays; Mass production of Battery
Cleaning Robot for Solar Power Plants; Developing IoT applications in the field of hydrometeorological
monitoring of hydropower plants; Solar Power System automatically rotates in the direction of the Sun
and Floating Solar Power System (GEC, 2020).
In addition, GEC also has GEC Bots products to improve cleaning efficiency, reduce weight and operate
safety at Solar Power Plants. For GEC Bots, it is about improved cleaning performance, reduced weight and
safe operation. The company is continuing to upgrade manufacturing materials, equip 2 brushes, integrate
webapp, surveillance cameras, use for GEC's solar power plants as well as commercialization activities to
increase sales GEC collection (GEC, 2020).
From above, GEC's competitive advantage in terms of products is much stronger than TEG's. Therefore, to
be able to compete with GEC, TEG needs to have a more appropriate strategy in the future.
3. Value Chain
3.1. Definition
Tarla (2020) claimed that a Value Chain is a business model that fully describes the activities required to
create a product or service. For the production of such goods, companies in the value chain include the
steps involved in getting a product from the conception stage to distribution and everything in between
such as procuring raw materials, manufacturing functions, and marketing activities.

Figure 1: The Value Chain Analysis
3.2. Primary Activities
Inbound Logistics
Currently, Vietnam is a country with abundant renewable energy resources. It is estimated that Vietnam's
onshore wind power can generate about 40-50 thousand MW, if the offshore wind power potential is
included, Vietnam can develop over 100,000 MW. The average level of solar radiation can reach about 3-
5 kWh/m2/day, the average number of sunshine hours per year is about 2,500 -3,000 hours. If, on average,
1 MW of solar power is obtained every 1 hectare, Vietnam can produce tens of thousands of MW of
capacity from solar radiation (truongvietnam, 2021).
Realizing the potential from the renewable energy industry, TEG is focusing on investing in the field of
solar power. Currently, TEG has 2 solar power plants, namely Ho Bau Ngu solar power plant and Ho Nui 1
solar power plant. With Ho Bau Ngu solar power plant, it has a capacity of 50 MW (Ninh Thuan province).
) with a total investment of over 1,500 billion VND and officially connected to the national power grid in
June 2019. With the Ho Nui 1 solar power plant, it has a capacity of 50 MW in Ninh Thuan with a total
investment of VND 1,150 billion, expected to operate by the end of 2020. TEG has exploited this clean
energy source from solar energy. to generate electricity to serve the people of our country (cafef, 2020).

For the renewable energy industry, businesses have to spend money to buy solar cells from abroad and
install them in the solar power system to generate electricity for businesses in the renewable energy
industry in general and electricity. the sun in particular. TEG is one of them. Here is a picture of a solar
battery.
Solar cell structure (gpsolar, 2021)
Operations
Truong Thanh Energy and Real Estate Joint Stock Company, was established on February 28, 2011 with the
initial orientation of real estate investment and business and recently expanded into the field of renewable
energy. Through the process of construction and growth, up to now, TECGROUP has overcome difficulties,
gradually rose, affirmed and enhanced its position in the field of energy and real estate in Vietnam,
affirming its belief with customers and partners (tecgroup, 2021).
In the field of renewable energy, through Truong Thanh Energy Company (TTP), TECGROUP has
successfully invested and put into commercial operation 3 solar power plants including: Hoa Hoi Solar
Power Plant (Phu Yen province) , Binh Nguyen Solar Plant (Quang Ngai Province) and Cat Hiep Solar Plant
(Binh Dinh Province) with a total capacity of 357MWp. This makes TTP one of the top three enterprises in
Vietnam, accounting for nearly 8% of the country's renewable electricity market share as of June 2019.

Besides solar power projects on the ground, recently, TECGROUP has expanded to construct rooftop solar
power projects. In addition, the development direction of wind power and LNG power - gas projects are
also being surveyed and researched (tecgroup, 2021).
In short, the company's operating processes are improving and becoming more efficient. Although TEG is
new to the renewable energy business, the company has already achieved many successes.
Marketing and Sales
In Vietnam, with features of the power business and highly regulated by the government. Electric power
firms will not engage in marketing operations to gain customers.
Ngô (2021) said that EVN is being assigned by the government to buy all electricity from renewable energy
projects at a price set by the government. Power output under PPA contracts is allocated annually
according to regulations of Vietnamese power operators, usually ranging from 3,900-4,200 million kWh
(equivalent to about 80% of electricity output). According to TEG's analysis report in 2020, TTP has taken
advantage of the Government's preferential solar power price policy. All three projects have signed Power
Purchase Agreements with a fixed FIT price of 9.35 UScents per kWh for 20 years from the date of
commercial power generation, ensuring stable and stable investment efficiency high level (TEG, 2020).
Service
Electricity of Vietnam (EVN) is the main customer of TTP (a subsidiary of TEG) as well as Truong Thanh
Energy and Real Estate Joint Stock Company (TEG). Electricity of Vietnam (EVN) and TEG have signed a
power purchase agreement. Therefore, TEG's Solar Power Plant is a clean electricity supplier for EVN, the
electricity selling price in the signed contract meets the provisions of Clause 1, Article 12 of Decision No.
11/2017 / QD-TTg dated by Prime Minister. On April 11, 2017. Specifically, EVN will buy electricity at the
power delivery point at the price of VND 2,086 / KWh for 20 years from the date of commercial operation
(tecgroup, 2021).
3.3 Support Activities
Firm infrastructure

Truong Thanh Energy Joint Stock Company (formerly known as Truong Thanh Energy and High Technology
Joint Stock Company) was established in 2016 with the orientation of focusing on the field of renewable
energy, aiming at the following goals: green, clean and associated with the development of the community
and society. Since its establishment, TTP has cooperated with prestigious foreign partners in the world and
in the region to successfully invest in construction and power generation 3 solar power plant projects with
a total capacity of nearly 360MWp in May and June 2019. That is Hoa Hoi Solar Power Plant in Phu Yen;
Binh Nguyen Solar Power Plant in Quang Ngai and Cat Hiep Solar Power Plant in Binh Dinh (tecgroup,
2021).
TTP is currently a major shareholder in Phu Yen TTP JSC (a project company of Hoa Hoi Solar Power), Quang
Ngai Truong Thanh Energy and High-Tech JSC (a project company of Binh Nguyen Solar Power) and Ky Son
Solar Power JSC (Project company of Ky Son Solar Power). In addition, TTP is holding controlling shares in
Phu My TTP JSC (wind power project in Binh Dinh) and Tra Vinh TTP JSC (wind power plant project in Tra
Vinh), Ky Son Solar Power Projects; Phu My TTP Wind Power and Tra Vinh TTP Wind Power have both
completed the appraisal steps and are being considered and proposed to be added to the National Power
Development Plan for the period 2021-2030, with a vision to 2045 (Electricity Planning VIII) (tecgroup,
2021).
In its development strategy, TTP plans to invest in many renewable power plants in the next 5 years such
as Quang Phu Solar Power Plant in Dak Nong (scale of 50MWp), Chanh Thuan Solar Power Plant in Binh
Dinh (scale of 50MWp); Cat Hiep 2 solar power plant in Binh Dinh (scale of 50 MWp); Ninh Tan Truong
Thanh solar power plant in Khanh Hoa (scale of 24.96 MWp); Dong Hai 3 wind power plant in Tra Vinh
(scale of 120 MW); Tan An wind power plant in Ca Mau (scale of 100 MW). These plants are all waiting for
Power Plan VIII to be approved to carry out investment procedures (tecgroup, 2021).
Human resource management
According to TEG's annual report (2020), human resources play an indispensable role in organizational
performance. Up to the time of reporting, the company has over 50 employees working at the company
and its subsidiaries. TECGROUP is proud to be the home of a dynamic, professional and highly qualified
team, as of December 31, 2020, the total number of employees at the parent company TECGROUP is 07
people. In which, there are 9 people with postgraduate qualifications, 2 people with college degrees. It

can be seen that people with university degrees make up the majority of the company's staff, which will
allow the organization to easily access technology and operate efficiently (TEG, 2020).
About policies for employees, employees are entitled to leave, holidays, Tet, maternity leave in accordance
with the provisions of the Labor Code. Moreover, employees are fully equipped with means and tools to
work in good conditions, ensuring safety and labor protection (TEG, 2020).
About recruitment and training policies, the Company has developed a specific regulation on recruitment
and training policies that is publicly disclosed to all employees in the Company. Recruitment and training
policies are developed in accordance with the requirements of the job. The staff regularly attend courses
on management skills, informatics, foreign languages. The form of training is organized in the form of
concentrated training or training through practical work (TEG, 2020).
About salary, social insurance and welfare, the Company has developed a salary regulation according to
each job level. Salary and bonus will be based on the employee's capacity and contribution to the
Company's business results. Employees are entitled to participate in and enjoy social insurance and health
insurance regimes in accordance with the law. In addition, depending on the field of work, the company's
employees also receive related allowances. Every year, the Company implements a convalescence regime
for employees. The company has employee treatment policies such as organizing annual medical
examination and organizing cultural and sports activities, taking care of teenagers and children who are
the children of the Company's staff through organizations. corporate body of the Company (TEG, 2020).
Technology Development
TEG establishes and maintains a Safety - Health - Environment management system according to ISO 14001
and ISO 4500NT2. NT2 performs an audit of an environmental health and safety management system
according to ISO 14001 and ISO 45001. The environmental management system was first issued by the
International Organization for Standardization (ISO) in 1996, ISO standards are now present in 138
countries and territories. NT2 is one of the early adopters, strictly implementing ISO 14001 and ISO 45001
which are the world's leading environmental management system standards. The benefits of
implementing this standard include reduced environmental impact, reduced energy use and waste, and
reduced operating costs for businesses (TEG, 2020).

Currently, TEG uses polycrystalline silicon PV panels manufactured by Sharp Corporation. This is a Japanese
company that has more than 60 years of experience in manufacturing and distributing solar cell products
in accordance with strict international standards such as IEC (International Electrotechnical Commission)
or certification. IEEE (Institute of Electrical and Electronics Engineers). The inverter - the inverter system
of the solar power project - is manufactured by TEMIC, Japan. The use of equipment from reliable partners
such as Sharp and TEMIC contributes to ensuring the efficient operation of the factory (tecgroup, 2021).
4. VRIO Framework
4.1 Definition
Jurevicius (2021) stated that The VRIO Framework is a tool used to analyze an enterprise's internal
resources and capabilities to find out if they can be a source of sustainable competitive advantage. The
term VRIO comes from the words value, rarity, imitability, and organization.
4.2. VRIO assessment for TEG
Strategic
Capabilities
Value Rarity Inimitability Organization Strategic
advantage
Attract
investors
YES YES YES YES Sustainable
Competitive
Advantage
Cost Effective YES YES NO YES Sustainable
Competitive
Advantage
Technology in
production
YES YES NO YES Sustainable
Competitive
Advantage
Human
Resource
Management
YES NO NO NO Competitive
Parity
VRIO framework in PV Power TEG

One of the indispensable criteria for TEG is to attract investors. Since its establishment, TEG has
cooperated with prestigious foreign partners in the world and in the region to successfully invest in
construction and power generation 3 solar power plant projects with a total capacity of nearly 360MWp
in May and June 2019. That is Hoa Hoi Solar Power Plant in Phu Yen; Binh Nguyen Solar Power Plant in
Quang Ngai and Cat Hiep Solar Power Plant in Binh Dinh. Up to now, TTVN and TEG have partnered with
B.Grimm, Sermsang Groups of Thailand, Quadran International of France. invested and put into operation
3 solar power plants with a total capacity of 357 MWp from June 2019 and all enjoy the FIT price
mechanism of 9.35 USD cent/Kwh. Currently, TEG is entering into a partnership with Sermsang to invest
in the V1-2 Tra Vinh wind power plant, with a scale of 48 MW, which will be put into operation in October
2021 to enjoy the FIT price of 9.8 USD cent/KWh. In the first stage, the time to deploy solar power projects
for COD to enjoy the FIT price of 9.35 USD cent/KWh is very short, while renewable energy is a completely
new field for TTVN and financial capacity is also very good. With many limitations, choosing to go with
major foreign partners is a way to "borrow force" to reach the destination (tecgroup, 2021).
About cost-effectiveness, Hoa Hoi project is built in Hoa Hoi, Hoa Quang Bac and Hoa Quang Nam
communes of Phu Hoa district, Phu Yen province with an installed capacity of 256MWp. The project has a
total investment of more than 5,700 billion VND. Phu Yen is a province with potential for solar power
development with a high number of sunny hours, averaging 2,300-2,500 hours a year. With such a scale,
Hoa Hoi project is one of the largest solar power projects in Southeast Asia at the time of commercial
power generation (June 2019) and has signed a power purchase agreement with EVN for 20 years. This is
also a typical green project with a credit amount of about USD 186 million provided by ADB with a
preferential interest rate.
In 2020, Hoa Hoi Solar Power Plant achieved revenue of more than 780 billion VND, with an electricity
output of nearly 360 million kWh, a profit of nearly 185 billion VND, equivalent to a profit margin of
23.72%.Another project of Truong Thanh Energy is Binh Nguyen Solar Power Plant with a total capacity of
49,608 MWp in Binh Son district, Quang Ngai province. In 2020, the factory's profit after tax reached over
40 billion VND, a very high increase compared to the revenue of the last 6 months of 2019 of 14 billion
VND. With this profit margin, the factory's profit margin on sales reaches 26% (tecgroup, 2021). From that,

it can be seen that TEG has a great ability to raise cash for investment. This allows TEG to focus on its
business and expand Solar with stable cash flow.
About technology in production, Environmental awareness is increasingly raised in the context of
globalization and environmental challenges are now considered a major issue affecting the current global
sustainable development process. This makes consumers more and more interested in clean,
environmentally friendly products. Realizing that, TEG has paid more attention to environmental
protection and has methods to protect the environment. TEG uses 12 wind turbine technology with a
capacity of 4MW/turbine and has a wind speed of over 7.4m/s – wind speed. This is an advanced
technology in the world today, for high performance and very environmentally friendly. The company not
only cares about the amount of electricity produced but also cares about the environment. The application
of modern technology to electricity production brings a sustainable competitive advantage to the
company. Applying new technology helps TEG achieve higher power output than other plants (Sơn, 2021).
In addition, TEG also uses polycrystalline silicon PV panels manufactured by Sharp Corporation. This is a
Japanese company that has more than 60 years of experience in manufacturing and distributing solar cell
products in accordance with strict international standards such as IEC (International Electrotechnical
Commission) or certification. IEEE (Institute of Electrical and Electronics Engineers). The inverter - the
inverter system of the solar power project - is manufactured by TEMIC, Japan. The use of equipment from
reliable partners such as Sharp and TEMIC contributes to ensuring the efficient operation of the factory
(tecgroup, 2021).
Human resource management has always been one of the factors that TEG always focuses on. Since the
establishment of the company, TEG has always focused on policies for employees. TEG always complies
with labor laws and protects employees' rights. Not only focusing on policies for employees, TEG also has
training policies to improve employees' knowledge. In the company, TEG regularly organizes training
activities on foreign languages, professions and management to help employees gain more work
experience to bring about high performance. In addition, the company has developed a salary regulation
for each job level. Salary and bonus will be based on the employee's capacity and contribution to the
Company's business results. Employees are entitled to participate in and enjoy social insurance and health
insurance benefits in accordance with law (TEG, 2020). TEG always complies with all occupational safety

laws and does not violate any policies or unfair treatment of employees. As a result, the company gains
employee loyalty and increases the bond between employees and the company.
5. Strengths and Weakness of ASM
5.1 Strengths
In terms of strengths, TEG attracts a lot of foreign investors. In the field of Energy, major partners in the
region have expressed their desire to continue accompanying TEG, TTP in particular and TTVN in general
in investing in building clean energy projects, especially after Power planning VIII is promulgated. One of
TEG's big and reliable partners is B.Grimm Group, an experienced energy developer in Thailand with a
portfolio of projects with a capacity of nearly 2,900 MW, including thermal power, hydroelectricity, wind
and solar power. After the success at Hoa Hoi, B.Grimm and TTVN Solar PV, TEG has made significant
progress to jointly develop more renewable energy projects in Vietnam. Partners with TTP own the Binh
Solar project. The original capacity of 49.06 MWp in Quang Ngai is Sermsang Power (Thailand). Currently,
SSP owns and operates nearly 20 projects with a total capacity of nearly 280MW, including solar farm
projects, rooftop solar power and wind power. With the strategic relationship that has been built hard,
SSP will work with TTVN and TEG to continue developing the renewable energy segment in Vietnam.
Specifically, SSP is working with TTVN to urgently complete the Tra Vinh Truong Thanh wind power plant
(V1-2) with a capacity of 48MW in Tra Vinh to achieve the commercial power generation plan before
October 31, 2021 (cafef, 2021).
Another strategic partner in TTVN's ecosystem is Kumagai Gumi (KMG), a reputable construction
corporation in Japan with total assets of nearly 4 billion USD, revenue in 2020 reaching nearly 3 billion
USD. At the end of 2020, KMG signed a strategic cooperation agreement with TTVN, the parent company
of TEG, opening a long-term reliable cooperation relationship in many fields, starting with the transfer of
all shares in the company. Cat Hiep Solar Power Plant (Binh Dinh) with a capacity of nearly 50MWp. In
addition to the energy development orientation, KMG's experience will also be the necessary support for
TEG to develop its core real estate business (cafef, 2021). With the trend of shaking hands with foreign
partners to implement large-scale projects, this will help TEG thrive, bring a strong bounce to domestic
enterprises and help TEG compete with competitors strong player in the industry.

5.2 Weakness
The first weakness is due to the impact of the strong outbreak of the covid epidemic and the unpredictable
developments nationwide, which seriously affected all activities of the Company. in January and February
2021, output decreased by 1% and 10% respectively; March output decreased by 4% due to capacity cuts
compared to the same period in 2020 (TEG, 2020).
The second weakness is that mistakes in land management in some localities have made local authorities
more cautious in decision-making, affecting the company's project implementation progress in the energy
industry regenerative (TEG, 2020).
III. In Conclusion
After all, this report gave a clear internal and external analysis, important adjustments, program
implementation and strategic evaluation of TEG. Besides, the report also analyzes Benchmarking, value
chain & value systems, and operational systems in the internal environment. In addition, the VRIO
framework is also used by the report to achieve good results in the future. Finally, the report also shows
the strengths and weaknesses of TEG company, thereby helping the company to come up with good
strategies to develop the business.
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