ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 4/11/2020 DateReceived1stsubmission

Re-submissionDate DateReceived2ndsubmission

Student Name Tran My Yen Student ID GBS200596

Class 485 Assessor name Quy Nguyen

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature TRANMYYEN

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1.Brief introduction 4

2. External analysis 5

2.1. PESTEL analysis: 5

2.1.1.Political factor: 5

2.1.2. Economic factors: 8

2.1.3. Social factors: 10

2.1.4.Technological factors 12

2.1.5.Environmental factors: 14

2.1.6.Legal factors: 15

2.2. Porter’s Five Forces: 16

2.2.1. Threat of new entrants: 16

2.2.2. Threat of substitutes: 18

2.2.3. Competitive rivalry: 18

2.2.4. Bargaining power of customers: 19

2.2.5. Bargaining power of supplier: 20

3. Internal analysis: 21

3.1.Core value 21

3.2.Organizational structure: Divisional 21

3.3.Human resources: 22

3.4.Brand equity 22

3.5.Financial strength/ factors 22

3.6. Fix/physical assets 22

3.7. Market resources 22

3.8. Research and Development. 23

4. 23

4.1. HSG’s decision: 23

4.2. How 3 frameworks above affect HSG’s decisions: 23

4.2.1.SWOT analysis: 23

4.2.2.PESTEL analysis: 25

4.2.3. P5F analysis: 26

4.3.Conclusion: 26

5. Reference: 26

1.Brief introduction
 Hoa Sen Group (HSG) joint-stock company was established in 2001. For 19 years, with the
leadership of CEO Le Phuoc Vu, HSG has proved themselves to be the original and sustained
member of the Vietnam Steel Association. HSG has expanded across Vietnam’s territory with 10
factories and 600 branches. Furthermore, they are available in 75 different countries in the
world.

As an analyst of BIDV Vietnam, in this report, I will demonstrate HSG’s business environment
internally and externally in order to give the Director a deeper understanding of this steel sheet
maker.

2. External analysis

2.1. PESTEL analysis:

2.1.1.Political factor:

Government stability and leadership:

Vietnam is ruled by a one single party: communist party. Because of only one existing political
group, Vietnam barely has terrorism and riot which is a good sign whereas many Asian countries
dealing with political issues for years like Indonesia, Thailand, Hong Kong.

Citizens are educated about the importance of contribution to the country. This means the
government is respected by citizens. For example, when Covid-19 occurred, people cooperated
with the state to push back the pandemic.

HSG is a law-abiding firm and always giving back to the community. With this positive attitude,
HSG has been well-perceived by many politicians and often is nominated by government award
shows.

Employment & operation laws:

 According to 2014’s enactment of law in steel industry, firms need to implement these following
content: Labor sanitation, Fire prevention, Enhance the work safety. This also directly affects
HSG’s operation management. HSG always pays close attention to equipment and regularly
conducts check ups to assure the manufacturing process goes smoothly. Especially, stay alert for
any potential risk that can be harmful to society and the environment. For new staff, there must
be a full training program of operating procedures, incident handling, repairing process of
equipment, safety regulations for each employee to actively prevent risks.

(Directive No. 10 of the Ministry of Industry and Trade)

As for compensation of the social insurance agency or the 24/24 accident insurance that the
company has bought for the employees, HSG also pays treatment fees, takes full accountability in
compensating depending on the severity of occupational accidents that are based on the law.
HSG also has a separate support policy to refund, motivate as well as take care to recreate the
labor force for employees.

(hoasen.com.vn,2017)

Trade restrictions or reforms

2018 marks an outstanding milestone: Vietnam entered top 20 steel manufacturing countries.
2019 also noted several positive growth in steel production nationwide: reached 23.1 million
tons, up to 4.1% compared to the same period last year. Still, the steel industry is facing many
trade defense lawsuits in export markets along with competitive pressure due to the flow of steel
imported into our country. This is a challenge that requires Vietnamese steel management
agencies and enterprises to strengthen competitive power.
 Earlier this year, the EU-Vietnam Free Trade Agreement (EVFTA) agreement was implemented.
Many experts predict that this deal is going to be beneficial for Vietnam to expand export
markets. HSG’s deputy general director stated that HSG exported about 10,000 to 15,000 tons
per month to the EU and hoped with this trade agreement, they can seek for more business
offers and opportunities.

(chinhdaisteel.com,2019)

Corruption:

Corruption has always been a concern for Vietnamese citizens. In 2019, 30% citizens perceived
people from the politburo to be corrupt in comparison with 72% in 2013. Vietnam’s government
had impressively reduced the corruption level in the span of 7 years.

HSG had also been involved in a corruption scandal. Back in 2012, their former CEO Pham Van
Trung, who claimed he graduated with a business master’s degree, was accused of using a false
degree. Unfortunately, Trung resigned after 18 days. This painted a negative look on HSG’s
reputation. After this defamation, HSG has renovated their management and required more
justifiable application.
 (baodatviet.vn,2012)

2.1.2. Economic factors:

Inflation:

The state has proposed many measures to control economic inflation. As of this October,
Vietnam Inflation Rate has dropped to 2.47% which is impressive for this unpredictable
year. Inflation is considered to have a negative impact on most organizations. The biggest
threat to one firm’s value comes from whether they can increase prices to compensate
for inflation’s aftermath, they will maintain their cash in real value.

Mr.Vu shared that around 2010-2012, inflation rate went up dramatically, high interest
rates, tightened policy and scarcely any exchange was made. At that time, exchange rates
 between USD and VND was 9%. Within the following years, HSG also faced numerous
difficulties because of their rapid expansion phase. All of these issues above forced HSG to
use financial leverage to amplify the scale quickly.

Poor progress from global and domestic steel prices, along with fierce market
competition, had made the expectation of one of the leading companies in the galvanized
steel industry not yet to meet.

(NguyenViet,enternews.vn,2020)

VSA’s curbing price increases and stabilizing the market measure is the necessity in order
to protect consumers as well as businesses. Additionally, the way to increase competition
between companies is to reduce their reliance on imported sources, improve labor
productivity, reduce production costs from purchasing raw materials, and closely keep up
with the shift of the domestic and international steel market to have timely solutions.
When entering the sales stage, businesses should reduce intermediaries, prioritize
supplying steel directly to construction projects and publicly list their products’ price.

(metalhcm.com.vn,2014)

Taxes and duties:

Despite the fact that HSG was still suffering from the crisis in early 2019, they assuredly
claimed that USA’s huge anti-dumping duty (AD) wouldn't bother them. Notably,on
2/7/2019, the US Department of Commerce (DOC) released a statement in anti-dumping,
countervailing duty (CVD) towards cold-rolled steel as well as stainless steel.US restricted
and imposed tax on certain countries like Korean,China,Taiwan. Therefore, Vietnam-based
steel export businesses are still not limited.

Considering the fact that HSG is frequently exporting to the US, HSG’s deputy director
stated that this tax law does not sway any HSG’s business activity. After years of hardwork
 and upgrading their products’ quality, they are able to meet DOC’s requirements and
continuously ship large sales orders to US’s territory.

(NguyenViet,enternews.vn,2020)

Globalization:

Every country should pay attention to the economic impact of globalization. Big names in
the World steel market are China, India, Japan and the US. Undeniably, 2020 is a quite
difficult year for the global steel industry. In spite of being on top of the game, these 4
giants still cannot prevent the gloomy reality in the market. This September, Steel prices
in Europe and the US rose up while China’s steel revenue shrunk.

Since early 2018, Us - China trade war has significantly influenced the global trade market,
especially Vietnam’s. Earlier this year, the US enacted many policies to heavily impose on
China’s multiple types of products. Considering both the US and China are our loyal
customers. This war caused a big shift in Vietnam’s economy. Vietnam had comed up with
many plans in advance to break the barriers by attending many trade agreements like
EVFTA and CPTPP. According to the US president, Tax on imports on imported steel sheets
is 10% and imported sheets are 25%. Yet Canada and Mexico are two of America's tax-free
sheet import countries. This had an impact on HSG’s steel sheet export production to the
US because steel sheet is their main source of exporting and the consumption output is
said to be 47%. Whereas, steel pipe and steel are untouched.

2.1.3. Social factors:

Attitudes & beliefs:

With the beliefs of helping others that were taught by Vietnamese ancestors, HSG
understands the concept of “The leaves protect tattered ones” deeply. Policy
motivates people to build houses of gratitude for war victims , building houses for
people in need. HSG in particular has actively contributed to the State and
 community. This demonstrates the company's core values "Honesty - Community-
Development". At the same time, it contributes to building a good image in
consumers' minds.

Demographics:

With population of 97,3 million people, Vietnam has a dense population and Rate Of
Natural Increase is closely controlled.

About population distribution, Song Hong delta has the densest population density so
workforce is incredibly affluent. This domain has become HSG’s main market.

Central regions of Vietnam is also HSG’s next expansion plan due to favourable geographic
location with long coast and convenient transportation. However, the climate here is
really extreme so many firms need to take this to consideration.

Ethics & religion:

 One of Vietnam’s most common religions is Buddhism. Approximately 90% of Vietnam’s
population is buddhist. Chairman Le Phuoc Vu is a religious buddhist and he has applied
many Buddhism’s philosophies into HSG.
Hoa Sen in Vietnamese means lotus flower
which is also a symbol of Buddhism. HSG’s
business slogan is “Integrity- Loyalty-
Wisdom - Hospitality - Devotion”. HSG is all
about community contribution. Hoa Sen's
community campaign is aimed at children,
those who are physically, mentally and
physically disadvantaged. It is worth mentioning that, not only donating money and
sponsor charity programs, Mr. Vu also directly participates in the events as a member of
the organizers. For years, HSG had been the main sponsor of big charity programs: “Vuot
len chinh minh” and “ Cap la yeu thuong”. With their altruism, HSG has been well-
received by the general public.

2.1.4.Technological factors

Intellectual property:

Counterfeit products often have cheaper prices and 90% similarity to the original
products. On the other hand, in fact, Vietnam has an overflowing counterfeit market.
Counterfeit products are a threat to businesses. According to tuoitrevn, counterfeit
traders stole 30% of actual businesses’ revenue. Lately, fake HSG’s steel sheets were sold
to a construction project in Vung Tau. Through the test results with a specialized machine,
the representative of HSG confirmed that all of the purchased steel sheets were fake. If
buyers do not have experience, it will be difficult to distinguish between the real and the
fake. This is a serious crime and needs to be prevented. HSG’s image and profit was
greatly damaged due to this accident.

https://tuoitre.vn/doanh-nghiep-keu-cuu-vi-khau-trang-nhai-gia-
20201102090236628.htm
 http://congan.com.vn/an-ninh-kinh-te/dieu-tra-vu-san-xuat-ton-gia-mang-thuong-hieu-
ton-hoa-sen_100792.html?fbclid=
IwAR351QJtpe1IPY45s2skSAe8yD9EewQjE4QkD1O2E0kCPLuaotHlWALyBW4

Pricing and Quality:

Over the past years, with a flexible and creative strategy, Hoa Sen Group has gradually
developed, grown, and continuously reached out, constantly improved product quality
and fulfilled its commitments to "reasonable price - correct standards - warranty
assurance”.Products are manufactured in compliance with ISO 9001 - quality
management system, ISO 14001- standard on environmental management,
OHSAS 18001- standards on labour rights and safety . Hoa Sen Group has always
focused on investing in modern technology to produce steel sheets that met
international standards: American Society for Testing and Materials (ASTM),
Indonesian National Standards (INS),....

https://nscl.vn/nang-cao-hieu-qua-san-xuat-cua-tap-doan-ton-hoa-sen/

Research & Development:

HSG is one of the few factories that have successfully produced a number of special
standards such as high-strength galvanized steel to meet complex requirements in the
construction of large projects. Recently HSG announced their first launch in high-end Hoa
Sen Gold production line.They claimed their products have these following advantages:
good chemical resistant, anticorrosive, strong mechanical durability, high UV-protection,
manufacturing based on the US Standard Specification of ASTM A755 A755M-18.

HSG also owns massive productivity machinery with each estimated output of 800.000
tons per year: push pull pickling line, NOF line, CRS line, Color spraying line,Steel pipe
production line.
2.1.5.Environmental factors:

Disposal of materials:

In 2016, Prime Minister Nguyen Xuan Phuc publicly called Formosa - a Taiwanese
steelmaker’s scandal to be “the worst environment disaster”. Since then, Vietnam’s steel
industry has received harsh criticism and strict regulation in waste disposal.

Steel production contains harmful chemicals. Experts calculated that 1 tons of steel
manufacturing process is equal to 100kg dust like CO2, SO2, NO2....

HSG has caused several criticism due to not properly categorizing and underhandedly
discharging pollutants. To deal with that situation, HSG’s CEO had guaranteed that if they
made a mistake in this field again, they would permanently close all of their factories.

Legislation:

As reported by VSA, ⅔ of Vietnamese steelmakers are still using old equipment and
technology that are extremely polluted. In the production process, a dust emission and
quite large with a very high temperature is emitted, the steel manufacturing enterprises
took advantage of waste heat from steel furnaces and steel mills for power generation
reproduction. Thus, energy costs are the cost of energy used in the production process, in
which energy use is determined by the input energy minus output energy.In the first
stage, the steel enterprises should determine the cost of waste treatment, the cost of
prevention and environmental management according to the actual cost method.

HSG has always calculated their move and often gets inspected by authority to check
whether there are any violations. Most of their branches have not caused any damage to
the environment. However, with the fear of a second environmental disaster, the state
did not approve HSG’s new project of Ca Na which they had invested 10.6 million USD.
2.1.6.Legal factors:

Taxation:

Tax code: 3700381324

When exporting steel, it is necessary to have quality standard approval from Vietnam’s
government where they want to import. The export of such items is subject to their
compliance with the quality approval certificate from importing countries’ authorities.

According to current regulations, steel is not on the list of goods banned from export, so
the company can carry out the export procedures according to regulations.

VAT: According to current export regulations, the VAT on exports is 0%.

Export tax: steel is not on the list of items subject to an export tax.

Export & import:

Export is now 40% of annual revenue of HSG. Their representative stated that this growth
is achieved mostly by the recovery of the international market. Precisely, export output in
the last 3 months was estimated at 275.668 tons which increased 154%.
 The company's export volume in the first 8 months of the year is over 417,000 tons,
accounting for 43% of the export market share of the whole galvanized steel industry and
53% of the consumption of Hoa Sen.

(vietnambiz.vn,2020)

As to enhance HSG’s export strategy, logistics play a major role. HSG acknowledges this
and is well-prepared to maximize Logistic activities by these commitments: right products,
right time, right place.

Import:

Most of HSG’s Raw materials still have to be imported about 70-80% while steel
billets must be imported 100%. Modern machinery are also imported due to the
lack of manufacturing

Consumer protection laws

In accordance with article 5 in 2010 law, organizations have the responsibility to keep
customer’s data and privacy protected while using organizations’ services. Also, Products
have to be certified by authority in health and environment safety.

HSG ensures that they have customers’ consent and are explicit in information
publication.” Products’ quality is the focal point, customers’ benefit is the key” - with that
commitment, HSG often pays tribute to their customers and consistently provides
customers with legitimate information, customer support systems and fulfill customers’
demands.

2.2. Porter’s Five Forces:

2.2.1. Threat of new entrants:

Boundary of investment capital and entry barriers:

 This specific industry strongly relies on investment capital. For instance, according to
Vietstock, HSG’s total capital for each project is approximately 200 billion VND. This
means if startup firms want to actually thrive, they need to have a strong financial state
before entering the steel market scene.

(bvsc.com.vn,2020)

Brand loyalty:

Old brands in the game have had the most royalty. Customers are used to each brands’
price and quality for so long and whenever new brands are introduced, they will develop
concern and unfamiliarity. Established in 2001, HSG has successfully built a loyal
customer-based.

Switching cost:

Steel price in the international market is frequently fluctuating. In contrast, the domestic
price is relatively stable thanks to price stabilization policy. HSG has committed to keep
their products’ price listed and affordable as much as possible.
2.2.2. Threat of substitutes:

Substitute products:

The threat is considerably medium to low. Respectively, the galvanized steel sheet is limited,
therefore, there won’t be much choice to be a substitute. It is also noted that both consumer
goods and automobile industry have been number one in aluminum and stainless steel usage.
This is, however, not detrimental to the steel industry because of the high-cost differential.

(ssi.com.vn,2019)

Perceived level of product differentiation:

Understandingly, there is a huge difference between high-end products and mid-end products.
Because of increasing income and lifestyle, people tend to purchase high-end products for their
houses. Mid-end products target customers in the lower-class category who tend to pick
reasonable and persistent products.

2.2.3. Competitive rivalry:

Number of competitors:

There are three main rivals: Hoa Phat Group, Povina, Ton Dong A
Diversity of competitors:

Competition in this industry is extremely high. As a matter of fact, their opponents have also held
high-quality production chains with massive capacity. Lately, Hoa Phat Group (HPG) has run a
new factory in Quang Ngai with machine capacity of 4 million tons per year. Another heavyweight
opponent is VAS Nghi Son (NSS)’s new factory also has a capacity of 7 million tons per year.
Nevertheless, part of enhancing output also compensated for closing several production lines, for
example, Posco SS in Southern Vietnam.

China’s presence in the World Steel Industry, they also made remarkable progress over the year
despite COVID-19, increasing by 59,6%.

(bsc.com.vn,2020)

Industry growth:

In Q1/2020, COVID-19 pandemic slowed down every industry, including the steel industry. Both
domestic and international steel market was delayed and slumped dramatically. It was more
depressing for finished steel consumption with a decreasing number of 10%: 11.7 million tons in
domestic and 2.73 million tons in international.

In Q2/2020, as Vietnam was able to handle the pandemic, product consumption rate was
recovered and many invested projects went back to operation. Ton Dong A (TDA) ‘s domestic
market share rose 2-3% while HSG’s slightly declined.

Especially in exporting, China has been a loyal customer of Vietnamese steel: exporting activity
to this country has increased by 78% due to their domestic needs.

2.2.4. Bargaining power of customers:

Buyer power is moderate due to the fact that there are fewer suppliers than customers

Range of customer:
 Steel industry’s customers are mostly manufacturers, intermediary distributors, state agencies,
foreign customers.

Price sensitivity:

Customers are divided into 2 groups: Upper/Middle-class and Lower-class. These two groups
have their own concept of price and ideal type of products. It’s vital for firms to be flexible in
creating products that can meet the demands of these customers.

HSG also launched their Hoa Sen Gold product line in order to serve upper/middle class buyers.

Size of customers’ orders:

Customers are likely to order vast quantities of steel, this is why enterprises always invest in high
productivity machines to maximize their manufacturing process and meet customer demand.

2.2.5. Bargaining power of supplier:

Vietnam imports steel from different continents mostly raw materials and semi-finished
products. In accordance with VSA, imported steel to Vietnam cost 4.8 billion USD with 8.3 million
tons. Vietnam often purchases from China, Japan, India. Moreover, the input materials of the
steel industry almost have no substitutes so that it plays a significant role in this industry.

SSI also considered this year to have more control in market share can be accelerated, but steel
price discount is not too high

Although the main import sources are from China, Vietnamese steel firms aren’t dependent on
any specific supplier. In addition, products from suppliers aren’t always even and distinguishable
which doesn’t make huge changes in switching costs. Customer choices are purely based on the
brand’s power and prices. In conclusion, supplier power is not considerable.

(vietnamfinance.vn,2020)
3. Internal analysis:

3.1.Core value

S1: Is a brand built off by great ethics

S2: has close relationship with the general public due to many CSR campaigns

S3: is still dominating steel sheet market share

W1: set high goals that are hard to reach

W2: invested in different fields yet only has advantage in steel sheet market share.

3.2.Organizational structure: Divisional

S4: each unit can flexibly develop in different fields

S5: quicker response to problems without relying too much on headquarters

W3: possible conflict from different team leader due to different decisions

W4: difficult to maintain the balance between the directors

3.3.Human resources:

S6: enthusiastic and hardworking employees

S7: massive workforce

W5: hard to supervise and manage large workforce

W6: majority of employees are young

3.4.Brand equity

S8: good marketing help HSG widely recognisable in public eyes

S9: invest in different fields

S10: affordable price and customer services

W7: massive operation costs

3.5.Financial strength/ factors

S11: receives huge investment in capital

S12: sponsor fully many charity programs

W8: is in large debts of Vietinbank and BIDV

3.6. Fix/physical assets

S13: have 10 big factories in 3 important domains

S14: earned about 18,1 billion VND in selling fixed assets

W9: has many unfinished projects

3.7. Market resources

S15: often received good trade deals and competition thanks to strong alliances with trustworthy
suppliers
 W10: major market is Southern Vietnam and isn’t making number on other market

W11: import customers are generally from Asia

3.8. Research and Development.

S16: Advanced technology in big factories that produce 200 tons per year.

W12: mostly uses import materials and machineries

W13: uses raw materials that leads to terrible contamination

W14: strictly controlled by the state

4.

4.1. HSG’s decision:

Restructuring effort by decreasing the number of branches and personnel. In the recent analysis
report, Ho Chi Minh City Securities Corporation (HSC) said that Hoa Sen has actively managed
operating expenses. In the first nine months of the year, Hoa Sen reduced the number of
employees to 6,600 from a peak of 9,800.

4.2. How 3 frameworks above affect HSG’s decisions:

4.2.1.SWOT analysis:

O1: Trade agreements can help Vietnam strengthen relationships with other countries

O2: Steel demands are still high due to reconstructing infrastructure or building field hospitals to
treat COVID-19 patients
 O3: new technological advancements are introduced everyday, which can help reduce
manpower.

O4: Steel is one of the most important elements in production and cannot be replaced, therefore,
the potential in steel industry is plenty

O5: Government tax-free policy for steel export product

O6: Vietnam’s geographic location is the perfect place for trading

T1: fluctuating currency market

T2: In domestic market, competitors are still expanding while HSG is closing stores.

T3: In international markets, China, Japan and the US are big players in the market game. Each of
these countries’ issues can impact a lot on Vietnam market.

T4: COVID-19 prevents steel exporting leading to slumping global steel market

T5: Counterfeit products are overflowing on the market

T6: Trade war that could have occured in any second

Decision No.1:

S10,S11, S16, S17: HSG has 10 factories in Vietnam’s territory and by cutting off employment,
HSG is not bothered due to their main focus now exporting to big countries.

W5,W7,W8: HSG is borrowing more than 10 billion from Vietinbank. To pay off debt, they have
come up with the plan of cutting off personnel. The decrease in the number of sales staff and
managers helped HSG save 30-40 billion VND in salary payment. In fact, the general and
administrative expenses for the 2018-2019 year of Hoa Sen have decreased by 208 billion dong
compared to the previous year. Currently, Hoa Sen's total product distribution points are 553 and
 continue to maintain the number of distribution networks at this level. In the new distribution
network, each branch will cover a larger area, thereby improving the efficiency of the sales team
at each branch and point of sale.

(vietnambiz.vn,2019)

Decision No.2:

S9,S14: After Ca Na project, HSG is focusing on many more projects like Hoa Sen Home which is in
the interior design field.

W1,W7,W13,W14: Mr.Vu said that the decision to divest and dissolve subsidiaries was made
because in the current context, the change of the objective situation was no longer consistent
with the original strategic goal. Besides, from an internal perspective, Hoa Sen said that there has
been an adjustment to the mid- and long-term development strategy in production and business
activities and project investment, in the direction of focusing on steel - steel - plastic, reducing
the outstanding loan to 3,000-4,000 billion VND in the next few years.

4.2.2.PESTEL analysis:

Decision No.1:

Legal factors: This decision does not violate the employment law due to their announcement
beforehand and still guarantee to compensate for their former employees

Economic factors: Late 2018 and early 2019 is the economic crisis period of HSG.In Q1 2019,
HSG's revenue was 7,545 billion dong, but profit after tax was only 60.7 billion dong. To cope with
these difficulties, HSG recently had to drastically cut 15% of its workforce, equivalent to about
1,500 employees, most of which are office staff and factory workers. This massive cut-off created
a small unemployment rate in the community. The company also strives to reduce bank loans by
reducing short-term receivables and inventories.

(vietnamnert.vn,n.d)
Decision No.2:

Technological factors: Hoa Sen Ca Na - Ninh Thuan project with a capacity of 16 million tons a
year, with an investment of $ 10.6 billion, was a project that Hoa Sen leaders had set a lot of
expectations for. Its technological investment was what made this project filled with so much
potential.

Environmental and legal factors: Serious violations of disposal have been exposed over the years.
Especially after the Formosa accident, Vietnam government had actually tightened
environmental policy more than ever before. However, unfortunately for Ca Na project, they
were at their final phase and about to launch. Yet, the government never approved their business
license which is the reason for Ca Na project’s downfall.

4.2.3. P5F analysis:

Porter’s 5 forces model is like a calculation tool to use in finance analysis. This model
helps us analyze competitive opportunities of businesses in the industry. In the steel
industry, the threat of new entrants is considered to be the biggest obstacle for new start-
up enterprises. Not to mention, supplier power is also greatly impactful and can shape
and shift the whole industry. Last but not least, rivalry in competitors are ruthless and in
this industry, brands need to keep up with new technology as well as possible risks.

4.3.Conclusion:

To sum up, HSG has proven themselves to be Vietnam’s top enterprises as well as number one steel
sheet manufacturer. Though HSG has had their ups and downs in these past decades. But with their right
calculations and business decisions, they will have more experience as well as strength to rise up to
break new boundaries.

5. Reference:

1. Vietnambiz (2020) [Báo cáo] Thị trường thép tháng 7/2020: Giá thép Trung Quốc tiếp tục tăng
trong thời gian tới, [online] Available at: https://vietnambiz.vn/bao-cao-thi-truong-thep-thang-7-
 2020-gia-thep-trung-quoc-tiep-tuc-tang-trong-thoi-gian-toi-20200828083420644.htm (Accessed
November 4, 2020).
2. Cdi-Production, Author: cdi-production and Author: (2019) Liên tiếp rào cản: Số phận nào cho
thép Việt?, Thép Chính Đại, [online] Available at: https://www.chinhdaisteel.com/lien-tiep-rao-
can-so-phan-nao-cho-thep-viet/ (Accessed November 4, 2020).
3. Person (2018) Vì sao siêu dự án hơn 10 tỷ USD Cà Ná của Tập đoàn Hoa Sen vẫn nằm trên giấy?,
Báo điện tử VTC News, VTC News, [online] Available at: https://vtc.vn/vi-sao-sieu-du-an-hon-10-
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