Hoa Phat Group: An In-Depth Analysis of Business and Environment

This report provides a comprehensive analysis of the Hoa Phat Group, a prominent Vietnamese company. It begins with a company profile, including its legal name, headquarters, leaders, and establishment details. The report delves into the company's type, purpose, vision, mission, core values, economic and social objectives. It then examines the company's size, including total assets, liabilities, owner's equity, and employee structure. The scope of the company is discussed, including its main market, target customers, and geographic market. The organizational structure and functions are analyzed, including the marketing department's function. The report also explores the suitability between organizational structure and objectives, as well as challenges and measures observed during the company's activities, concluding with references.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 1: Business and Business Environment
Submission date 19/10/2021 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Hà Thị Mỹ Linh Student ID GBS200541
Class GBS0909B Assessor name Vo Minh V
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plag
making a false declaration is a form of malpractice.
Student’s signature
Grading grid
P1 P2 P3 M1 M2

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 Summative Feedback:  Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:

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1.Company Profile..................................................................................................................... 4
1.1. Hoa Phat Group profile................................................................................................4
1.2. Huge leaders................................................................................................................ 5
2.Introduction............................................................................................................................5
3.Type And Purpose.................................................................................................................. 6
3.1.Type.............................................................................................................................. 6
3.1.1.Profit or non-profit.................................................................................................... 6
3.1.2. Public or unpublic..................................................................................................... 6
3.1.2. Private company....................................................................................................... 7
3.2.Purpose................................................................................................................................8
3.2.1.Vision......................................................................................................................... 8
3.2.2.Mission...................................................................................................................... 8
3.2.3.Core Value................................................................................................................. 8
3.2.4.Objectives for economy............................................................................................ 8
3.2.5.Social Objectives......................................................................................................10
................................................................................................ 11
................................................................... 11
4.Size........................................................................................................................................ 12
4.1 Total Assets.................................................................................................................12
4.1. Total Liabilities........................................................................................................... 13
4.1.Owner’s Equity........................................................................................................... 14
4.2.Employee Structure.................................................................................................... 14
5. Scope....................................................................................................................................15
5.1 Main market............................................................................................................... 16
5.2 Target customers........................................................................................................ 16
5.3 Geographic market..................................................................................................... 17
6. Organizational structure and functions............................................................................. 18
6.1 Organizational structure.............................................................................................18
6.2 Type............................................................................................................................ 18
6.2 Function............................................................................................................................. 19
6.2.1 Function of marketing department......................................................................... 19
6.2.2 Function structure obtain goals.............................................................................. 19
7. The suitability between organizational structure suitable and mentioned objectives... 20
8.Challenges and measures observed during the company's activities................................20
8.1. Disease Risk............................................................................................................... 20
8.2. Human Resources Risk.............................................................................................. 21
9. Conclusion........................................................................................................................... 21
10. References List.................................................................................................................. 23

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1.Company Profile
1.1. Hoa Phat Group profile
Legal Name: Công Ty Cổ Phần Tập Đoàn Hòa Phát
International Name: Hoa Phat Group Joint Stock Company
Abbreviation Name: HPG
Headquarters: Pho Noi A Industrial Park, Giai Pham Commune, Yen My District,
Hung Yen Province
VNR500 Rating: 4(B2/2020)-19(B1/2020)
Tax Code: 0900189284
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]
Website: http://www.hoaphat.com.vn
Date of establishment: 01/08/1992
Domain: Basic Ingredients

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1.2. Huge leaders
2.Introduction
In modern society, there are many companies to allocate money for citizens. Choosing a
brilliant company is take plenty of time for us to research all information about this
company such as fiscal statements, size and scope in Vietnam companies. From my research
on the business market in Vietnam, I believed that Hoa Phat Corporation is one of the
companies that has been and has potential for development. In the conflict of pandemic
Covid-19, nowadays, many enterprises have to delay their work and their budget might be
influenced. However, Hoa Phat is also demonstrating their establishment is not increased by
the way the General Director of Hoa Phat Group donated 50 billion VND to the authority’s
Covid-19 vaccine purchase fund with the hope of being able to contribute a little effort for
people. Besides, Hoa Phat Corporation is recognized as a National Brand, in the top 50
largest and most effective enterprises in Vietnam, in several years. Moreover, the company
is also achieve top 10 largest private companies in Vietnam and top 50 most valuable
brands in Vietnam.
Construction steel, hot-rolled coil (HRC), prestressing steel, wire drawn steel, steel pipes, and color
coated corrugated iron is indeed the major products in Hoa Phat's steel manufacturing chain. Hoa
Phat Group is Vietnam's largest construction steel and steel pipe producer, with a market share of
32.5 percent and 31.7 percent, respectively, and a capacity of over 8 million tons of steel of all sorts.
Full Name Position
Tran Dinh Long Chairman of the board
Tran Tuan Duong CEO and Chairman of directors
Nguyen Manh Tuan Vice Chairman of the board of directors
Doan Gia Cuong Vice Chairman of the board of directors

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3.Type And Purpose
3.1.Type
3.1.1.Profit or non-profit
Hoa Phat Corporation is a profit company. According to the annual report in 2020, Hoa Phat
company had to pay 5,522,085,440,000 VND for dividends to owners. Besides, this annual
report is also proved that the dividends paid in 2019 higher in 2020 and the balance at the
end of 2020 is higher than in 2019.
3.1.2. Public or unpublic
Hoa Phat company is also a public company. According to the method of rating the Global
2000 list (2,000 largest businesses in the world), Hoa Phat was honored to be evaluated by
Forbes Vietnam on company size based on four criteria: revenue, cash, total assets, and
market capitalization (USA). When occupying 5/10 venues, the top 10 registered the
impression of private companies, including Hoa Phat. This is the first time Forbes included
Vietnam on its list. (HPG,2020)
On 15/11/2007, HPG official listed on the stock exchange market on HOUSE, HPG stock was
listed the first time. HPG’s stock code on the stock exchange is HPG.

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3.1.2. Private company
Hoa Phat Group is a Vietnamese private corporation. The group's forerunner was a firm that dealt in
building supplies and technology. The organization has now evolved into a multi-industry corporate
conglomerate.
According to the annual report 2020, the shareholders structure is dividend into two
groups are group shareholders structure and geographical shareholders structure. Firstly, in
this table of the shareholder structure by group have foreign shareholders is 30 percent.
Board of Directors Supervisory Board, Board of Directors are 36 percent, higher than other
shareholders. Secondly, shareholders structure by geographic area. The domestic
shareholders are 40 percent higher than foreign shareholders. In this structure is shown
that HPG is completely a private enterprise.

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3.2.Purpose
3.2.1.Vision
Hoa Phat has a wide vision to become a world economy manufacturing company, with
steel for its primary business.(HPG,2020)
3.2.2.Mission
Hoa Phat's mission is to provide leading services that improve people's lives while also
earning consumer confidence.(HPG,2020)
3.2.3.Core Value
The idea of Harmony and Development is the basic value of the Hoa Phat Group. This is
reflected in the relationships between officials and workers, the Group and its partners,
agents, shareholders, the majority, and the social community, enabling the alignment of
stakeholders' interests on the same road to sustainable growth. Hoa Phat Group, in
particular, has established a long-term, trustworthy relationship. With sales representatives
that have been with the Group since its inception, it seems like a family.(HPG,2020)
3.2.4.Objectives for economy
According to the annual report, Hoa Phat earned 90,118 billion VND in sales and 13,545
billion VND in profit after tax in 2020, representing increases of 41.5 percent and 80 percent,

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respectively, from over previous year, owing to thriving steel industry and agriculture.
Besides, with the results obtained, the Board of Directors is anticipated to present a
dividend payment plan of 35% consisting of 5% cash and 30% shares. Implementation will
take place in the second and third quarters of 2021. The projected dividend rate for 2021 is
30%. Moreover,also according to this reports, Hoa Phat plans to produce 5 million tons of
completed construction items, iron and steel, and 2.7 million tones of HRC by 2021. Total
output was 7.7 million tons, a 54 percent increase over 2020. Hoa Phat's final construction
products, steel, and HRC reached over 1 million tons during the first two months, extra than
double the same period last year. In which case, consumption of completed construction
materials increased marginally by 26 percent, which was offset by HRC's contribution of
427,000 tons.(HPG,2020)

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3.2.5.Social Objectives
With the slogan "Harmony" growing together, Hoa Phat always executes corporate social
responsibility substantively. That is demonstrated by enhanced donations to the yearly
state budget, the creation of secure jobs for thousands of people, the implementation of
efficient social security work and a range of charitable programs, and the joining of hands
for meaningful community service. Step one is to put the Nhip Dap Yeu Thuong program
into action. From 2015 until the present, the Nhip Dap Yeu Thuong program has been a
dependable address for poor children with congenital heart disease who require assistance.
After 5 years in business, In many situations, surgery is financed promptly, and the initiative
has successfully sponsored 221 pediatric patients. Hoa Phat has confirmed its sponsorship
of 83 patients for 2020, including 62 successful surgeries, at a total cost of 2.8 billion VND.
The next step is Xay Cau Nong Thon process. The project is being implemented to help
improve the standard of living for local residents while also boosting local economic growth.
Hoa Phat recently built three bridges in Ben Tre (Dinh Nhon Hamlet, Dinh Thuy Commune,
Mo Cay Nam District), Hau Giang (Binh Hieu People's Market Bridge, Vinh Tuong Ward, Long
My Town), and Soc Trang in 2020. (Dac Thang Hamlet, Ho Dac Kien Commune, Chau Thanh
District). Finally is Spring of Love process. It is a schedule of activities carried out by the Hoa
Phat Group before the Lunar New Year, in order to deliver a Tet that is warmer and more
complete for families in challenging circumstances. The "Spring of Love" initiative
distributes Tet presents to difficult households in the area. In 2020, Hoa Phat Group
provided about 3,500 VND presents worth 500,000 VND / serving in 14 provinces and cities
above, totaling more than 1.7 billion VND. This activity includes a lot of employees who
engage in the spirit of "good leaves cover torn leaves," sharing with those in poor situations
in order to offer a meaningful Tet to the people (the annual report 2020).

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(HPG,2020)

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4.Size
4.1 Total Assets
According to Hoa Phat Corporation’s 2020 balance sheet, Hoa Phat Group’s total assets as
31 December 2020. The total assets of HPG on Dec 31,2020 1 is 131,511,436,895,020.
Compered with total assets on January 1, 2020, total assets from January to December have
increased. (Annual Report, 2020)

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4.1. Total Liabilities
In the consolidated balance sheet, the total liabilities of Hoa Phat Corporation is
72,291,648,089,103. Focusing on the balance sheet, the numbers have been proven that
from January to December 2020 has been a clear growth from 53,989,393,956,205 to
72,291,648,089,103.( Annual Report, 2020)

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4.1.Owner’s Equity
The owner’s equity also has a rapid growth from January to December 2020. It is possible
to increase approximately 2 times from 47,786,636,143,695 to 59,219,788,805,917.(Annual
Report, 2020)
4.2.Employee Structure
Hoa Phat Group already has 11 parts of the enterprise with 25,428 employees operating
across the country and a office in Singapore. Steel production is the Group's main business,
accounting for more than 80% of sales and profit. With its present high degree of growth,
Hoa Phat Group has generated a variety of appealing employment possibilities, drawing a
large number of skilled human resources to work here. Hoa Phat Group has a large
recruiting market as a result of its expansion into many varied sectors and success in all of
them. Until now, the Group's goal has been to create a staff of the F3 generation, with a
focus on the youthful and vibrant 9X generation.

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5.Scope
HP’s Corporation scope is extremely huge. Hoa Phat is a diversified business group, in which
the iron and steel business accounts for over 80% of the group’s revenue and profit.
Therefore, the corporation’s business market is not limited. Moreover, HPG is the largest
steel producer in Southeast Asia now. For the first time, crude steel output topped 5.8
million tons, while billet consumption steel and construction steel exceeded 5 million tons.
In Vietnam, the market share of building steel and steel pipes is 32.5 percent and 31.7
percent, respectively. Hoa Phat Corporation’s first hot-rolled coil weighed over 700,000
tons. Hoa Phat steel pipe has exceeded 820,000 tons and galvanized steel sheet has grown
by 150 percent year on year.

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5.1 Main market
The main market of Hoa Phat Corporation is Vietnam. As a multi-industry conglomerate,
steel is the firm with the highest market share in Vietnam (33.8 percent). HP's products are
primarily found throughout Vietnam, from north to south. Apart from dominating the
domestic market, Hoa Phat has exported construction steel to many nations worldwide,
including the United States, Canada, Australia, Malaysia, Cambodia, and several others. The
number of exports to discerning markets is expanding. Hoa Phat Steel has a high level of
competitiveness. Foreign markets are responding positively to high-quality coils for wire
drawing with steel grades SAE1006, SAE1008.
5.2 Target customers
Customers are always the target at Hoa Phat in order for the firm to produce new items to
serve people. Steel products are constantly available to consumers, large and small
enterprises, and structures. Furthermore, HP's subsidiaries are continuously striving to
create the best goods in order to serve everyone. Agriculture Corporation always delivers
clean and safe goods. For instance, preparing meat, animal products, and eggs for human
consumption. Furthermore, steel products corporation manufactures steel goods, as well as
refrigeration, electrical, and air equipment products for everyone.

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5.3 Geographic market
The industrial system of the Hoa Phat Group is spread around Vietnam, including Hanoi, Ho
Chi Minh, Hung Yen, Long An and other countrysides. With a large of iron and steel factories
spread across Vietnam, Hoa Phat company has successfully created high-quality steel,
drawn steel, hot-rolled coil. Especially, from 2020, the group will put into use the new
strategy of hot-rolled coil (HRC) with a capacity of 3million tons/year. This is considered a
potential product of Hoa Phat Dung Quoc’s subsidiary, contributing to the development
process of Hoa Phat Group. The agricultural sector of the company holds the largest market
share in supplying Australian beef with 50%, being the leading corporation in the Northern
region in terms of the amount of clean chicken eggs. The pig industry also helps Hoa Phat to
be among the top enterprises in Vietnam. Hoa Phat Corporation’s clean agricultural
products are always supplied throughout Vietnam and exported to foreign countries. (HPG,
2020)

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6.Organizational structure and functions
6.1 Organizational structure
6.2 Type
HPG is a company with a functional structure. According to the organizational chart
structure of the company, the departments all share the same task of trying to progress the
company. Firstly, the general meeting of shareholders is the highest authority of a
corporation. Responsible for understanding the situations of the company and being the
representative for regular meetings. For instance, in the annual meeting at the end of each
year, the general meeting of shareholders is the person who presides over the meeting to
announce the company’s situation. Secondly, the director is the person who manages and
runs the company according to the direction and goals set out by the Board Of Directors. Be
responsible to the Board Of Directors for all production and business activities of the
company. Thirdly, the Board Of Directors of the corporation has the task of regularly
directing and supervising the company’s Board Of Directors in the implementation of Hoa
Phat company’s business and production plans. The Board Of Directors is also responsible
for supervising the investment projects of the group, checking and complying with the
Enterprise Law. The next is the Supervisory Board. They are the ones who will carry out
company controls and internal controls. Those controls are reviewed and strictly manage in
the operating process to avoid risks for the company. In addition, the deputy director is the
person and organizes the tasks from the assigned plans. The deputy director must be
responsible for regularly reporting on the plan to the directors.

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6.2 Function
6.2.1 Function of marketing department
Firstly, product development is an important function of marketing. This is also the
marketing department's responsibility to discover what the market needs or wants, and
then continue to create the product based on those requirements and wants. Product
development is carried out by marketers and involves many fundamental steps in order to
create a distinct product aimed at the appropriate target market. Products/services should
also be maintained based on business outcomes, allowing them to be changed to better
reflect current market trends. Secondly, to examine income market data. This is another
critical duty of the marketing department. This function enables department employees to
develop and obtain information relating to the company's specific target market. The
department has to do research to establish the size, behavior, culture, beliefs, gender of
customers in the target market, as well as their wants and needs, and then create successful
products to fulfill and satisfy these demands. Third, the consumption function is a
significant function of marketing. The marketing department will benefit companies in
increasing capital turnover, limiting risks and losses, and reducing the company's risks and
losses. The selling function is carried out by regulating the value of each item and
distributing it through distributors.
6.2.2 Function structure obtain goals
Regarding the functional structure of HPG, the company has accomplished its goals. Under
conflict of the 4th Covid-19 epidemic throughout the country until 2021. Specifically, in Ho
Chi Minh City and the southern regions, as well as the start of the rainy season, Hoa Phat's
sales volume of construction steel and steel pipes fell during the same time and previous
month. However, the board of directors and the board of directors have only received
prudent direction in the last 6 months. Hoa Phat Group has assisted Hoa Phat Group in
producing more than 4 million tons of crude steel, 55% increase during the same time. Steel
product sales were approximately 4.3 million tons. Construction steel production increased
by 22% to 1.8 million tons. 608,000 tons of steel billets are used in local and international
markets.In the face of a challenging pandemic environment, the company has taken
strategic actions such as: maintaining expansion, expanding the capability of all corporate
departments, increasing experience, and preparing for the future situation. future to
benefit both sides in the long term The corporation's functional organization has been
carefully planned. In the next years, the firm will also establish a long-term vision.

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7. The suitability between organizational structure
suitable and mentioned objectives
On the one hand, the organizational structure of HPG contributes to the company's high
efficiency. A typical example is a high efficiency from 2021 with a 65 percent market share
of building steel. To attain such a huge market share, the organization should take a new
step in management. Moreover, workers in manufacturing must be well qualified. The firm
has simplified control by employing this capability. As a result, favorable conditions for the
company's development are created. Finally, the company has different branches and
distribution agents like HPG, this functional organization is ideal for success.
On the other hand, when HPG uses the matrix form in the future, they may be able to
broaden its worldwide reach. This structure will provide many advantages to companies,
including Allowing individuals to use specific talents in a variety of situations. Encourage
inter-departmental cooperation. Reduce the time it takes to make a choice and make use
of resources shared by departments.
8.Challenges and measures observed during the
company's activities
8.1. Disease Risk
The world has spent 365 days dealing with the SARS-CoV-2 epidemic in 2020. This not only
pushes the global health system into crisis but also causes the most dangerous economic
catastrophe since the Great Depression of the 1930s. Across the country, companies and
farms are dispersed in Hoa Phat, making prevention and control of the Covid-19 outbreak
more difficult and essential than ever.
Take measurements at office buildings, industries, and business farms. Members of the
Hoa Phat Group have launched a structured statement of steps to avoid the Covid-19
pandemic. Including verifying the body temperature of all workers and visitors entering and
exiting gates, spraying disinfection, wearing masks at work, keeping distance, eating shifts.
At factories, all manufacturers have established backup plans for blockade conditions, such
as arranging facilities, places to stay, and on-site medical care for personnel. If the factory is
closed, the output must continue.

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8.2. Human Resources Risk
With over 25,000 employees from various parts of the nation and youthful working age,
personnel changes are frequently challenges that require special attention. While the
industry of steel manufacturing usually needs a considerable quantity of trained technical
personnel, the Vietnamese training system is professional and skilled. Men in the field of
mechanical engineering have failed to satisfy the actual standards.
Hoa Phat considers people as the most important component to achieving success as the
most effective measure. They always emphasize training and developing employees to
improve professional qualifications and capabilities. Member enterprises arrange
specialized training courses on a regular basis, in close coordination with universities and
colleges. Training schools, mechanical - technical professions in training and recruitment, in
order to attract highly skilled human resources in line with the Company's development
goals.
9. Conclusion
According to the annual in 2020, HPG is a public company, private profit group. The
company is extremely huge. The company has been successfully developed . HPG has shown
its position on the local and international business floor, in tandem with the leadership of
the leadership.

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10. References List
hoaphat, 2020. Bao Cao Thuong Nien. [online] Available at:
https://file.hoaphat.com.vn/hoaphat-com-vn/2021/04/bctn-2020-online.pdf [Accessed 12
October 2021].
hoaphat, 2020. TẬP ĐOÀN HÒA PHÁT. [online] Available at:
https://file.hoaphat.com.vn/hoaphat-com-vn/2021/06/profile-hoa-phat.pdf [Accessed 12
October 2021].
SSI IBOARD, 2021. bang gia. [online] Available at: https://iboard.ssi.com.vn/bang-gia/hose
[ Accessed at 17 October 2021].
Vbcs, 2021. research company. [online] Available at:
https://vcbs.com.vn/vn/Research/Company?stocksymbol=HPG [Accessed at 19 October
2021].
Vietnambiz, 2021. Vốn hóa Hòa Phát chạm 11 tỷ USD, vào top 15 ngành thép thế giới.
[online] Available at: https://vietnambiz.vn/von-hoa-hoa-phat-cham-11-ty-usd-vao-top-15-
nganh-thep-the-gioi-20211006173428568.htm [Accessed 17 October 2021].
Vietstock Finance, 2021. Hồ Sơ Doanh Nghiệp. [online] Available at:
https://finance.vietstock.vn/HPG/ho-so-doanh-nghiep.html [ Accessed 12 October 2021].