FINAL: PROJECT DEVELOPING A RICE

HARVESTER FACTORY IN VIETNAM

Subject Name: International Project Management (Final)

Subject Code: INE300904

Lecture: Dr. Hung Phu Nguyen

Student name: Hai Thanh Nguyen - 20070159;
Ngoc Bich Ta - 19071445;
Trang Huyen Ho - 19071522.
 TABLE OF CONTENT

I. INTRODUCTION ..................................................................................................................... 2
1.1. Context leading to the project .............................................................................................. 2
1.2. Objective of project.............................................................................................................. 2
1.3. Scope of project ................................................................................................................... 2
1.4. Stakeholder of project .......................................................................................................... 3
II. PROJECT MANAGEMENT.................................................................................................. 4
2.1 Challenges facing the project ................................................................................................ 4
2.2 Define tasks of project .......................................................................................................... 5
2.3 Define the deliveries of your project .................................................................................... 7
2.4 Define WBS of tasks and their deliverables ......................................................................... 7
2.5 Time management ................................................................................................................. 8
2.5.1 Estimate time required for each task, the inter -relationship among tasks (SS,FS,…) .. 8
2.5.2 Estimate total project duration ....................................................................................... 9
2.6 Project Cost Management. .................................................................................................. 10
2.6.1 Indicators reflecting the cost management performance of the project. ...................... 10
2.6.2 Estimate Costs associated with each task .................................................................... 12
2.6.3 How do you manage costs in the case of your project? ............................................... 13
2.7 Risk Management ............................................................................................................... 13
2.7.1 Identify risks ................................................................................................................ 13
2.7.2 Evaluate the risk of project .......................................................................................... 14
2.7.3 Build the Project Risk Map .......................................................................................... 18
2.7.4 Discuss economic scenarios that may affect the sustainability of the project ............. 19
III. RECOMMENDATIONS AND CONCLUSIONS ............................................................. 19
3.1. Recommendation: Labor management .............................................................................. 19
3.2. Conclusions ........................................................................................................................ 20
IV. REFERENCES ..................................................................................................................... 21
V. CONTRIBUTION .................................................................................................................. 22

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I. INTRODUCTION

1.1. Context leading to the project

Vietnam's agricultural economy has always been at the heart of the manufacturing sector and the
most important contributor to the country's economic development. Agriculture creates more jobs
than it contributes to GDP. Vietnam is presently the world's second largest rice exporter as a result
of the economic liberalization of agricultural industry, notably rice cultivation. To be able to
contribute to the development of the agricultural economy, as well as the country's general
economy. We decided to visit Vietnam as a representative Japanese firm to design a plan to build
and produce a rice harvester with Vietnamese character and attire in Hung Nguyen, Nghe An.
Furthermore, Nghe An has the largest land area, making it ideal for constructing storage facilities
for arrangement, manufacturing, and even attempting to reach out to nations with agricultural
economies outside of Vietnam. Thailand, Laos, and so on.

1.2. Objective of project

This project will take about four years to develop and build. After it is operational, this will be
Vietnam's first assembly factory, with all parts and accessories made in Vietnam, with the goal of
providing 20% of the Vietnamese market. South in the first year, followed by a 50% market share
in the next five years. Focusing on meeting demand in product delivery for the progress of
Vietnam's agriculture sector, grabbing the ripe opportunity when the set of capital investments
assisting post-Covid-19 enterprises to improve production and process operation is completed on
time. Many finished products with high output value will be produced by supporting farmers with
the rice crop. With the motto "Vietnamese people use Vietnamese goods," we will bring high-tech
equipment and machinery to farmers in order to provide original local goods while adhering to
safety laws and strategies.

1.3. Scope of project

The amount of investment in this project will be 2000 billion. The factory will be built on a land
area of 260,000m2 which includes: Warehouse for 58000m2, Factory for about 50000m2, and
Office area is 7000 m2. Besides that, the rest of the area will be built Guest/Security: 5000 m2,
Power station/waste house for 60000m2 and last is Yards, trees areas for around 80000m2

The project will be developed in Nghe An because it is regarded as having an exceptionally

important geographical - political position, young creative human resources and a high potential

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 for land, primarily basalt red soil. Nghe An province also benefits from its location, which is
adjacent to major seaports, convenient transportation, and local and international links. As a result,
prioritizing the development of modern industrialized agriculture in this area is a wise policy.

The project plan covers the procedure for requesting for a factory construction permit, the
particular plan of the things that must be built, the expected cost and time, and the construction
supervision unit plan.

1.4. Stakeholder of project

The project was built under the license of the Employee's Committee of Nghe An province. Due
to the size of the project, a construction unit was assigned the responsibility of reviewing, checking,
and prioritizing experienced people. We chose the Vietnam Construction and Import-Export Joint
Stock Corporation (Vinaconex) for this project because it has experience with conventional
construction projects such as Trung Hoa - Nhan Chinh urban area, Mo Lao urban area, home Nghi
Son Cement Plant, Cua Dat Hydroelectricity... ABIC will supply the project's life and non-life
insurance. Group 14 from Vietnam will provide 60% of the overall investment money, with Fesco
Kyushu Co.Ltd Japan providing the remaining 40%.

Stakeholder Description Obligations Benifits/Interests

Group 14 Owners of projects who
act as producers. All
production stages are
determined by the
project's contractor.
Provide 60% of total Get benefits from the
investment. Legal project
representative for the
project.

Fesco Kyushu Co.Ltd Provide 40% of total Gain profit from the
investment. project.

Government: People's Obey all project-related
Committee Nghe An legal requirements.
province Establish a reliable and
fruitful partnership with
the government.
Liable for cleanup of Bring in more
the project's expansive projects to
construction site. Nghe An.
help with the issuance Earn money from
of necessary industrial project operations
construction licenses taxes.
add more jobs
possibilities

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Vinaconex- Cooperate with the Ensure that the Gain from the
Construction Joint contractor, take construction meets the development of the
Stock Company responsibility for project owner's project.
construction requirements for Increase the
quality. company's brand
Finish the project as recognition.
promised in the
contract, on time.

ABIC insurance Ensure that the firm Provide property Get profit from the
receives all advantages insurance for the project property
specified in the contract, project. insurance
and safeguard people
from health-related
incidents or other threats
to their bodies or lives.

II. PROJECT MANAGEMENT

2.1 Challenges facing the project

Our nation and many other nations have been devastated by the Covid-19 outbreak, which has
prevented the execution of significant investment projects by interrupting or stopping a variety of
activities. Stability, rising building material prices, and other factors have an impact on project
costs, schedules, and hazards. Additionally, if there are workers or infected workers on the site, all
construction work will be suspended due to the serious and pervasive nature of the Covid-19
outbreak. Low worker productivity increases expenses and extends the time needed to perform
tasks and projects.
Negative climate conditions with unfavorable weather conditions brought on by climate change,
irregular rain and sun can impact the growth of rice plants, disrupting the harvesting process and
creating seasonal uncertainty. seasonal crop. Moreover, because the producer is also the supplier
and has to find cutting-edge machinery with high demands for durability, the source of raw
materials, including machinery and components, will frequently be more expensive. to provide for
the individuals who work in agriculture.

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2.2 Define tasks of project
WBS TASK NAME DESCRIPTION
A Purchasing land
1.1 Finding the land Choosing and finding good land to serve each other's
needs, as well as favorable factors for business
1.2 Land permission Certification of land use rights helps the State to
manage land throughout the territory, control the
transfer and transactions on the market.
1.3 Make the plan for land This step is performed by the organization
clearance responsible for compensation for damage, assisting in
family re-stabilization in the land clearance rules
according to the measurement and inventory data.
1.4 Compensation Compensation, support and resettlement tasks,
estimate or hire a consulting unit to estimate costs for
relocation, installation, and reconstruction, and
appraised by specialized management agencies.
1.5 Land clearance Carry out work related to the relocation of houses,
trees, construction works and a part of the population
on a certain part of land planned for the construction
of factories.
B Recruitment
2.1 Recruitment for manage Choosing the most suitable and talented candidate is
department the foundation for building internal strength and
increasing the competitiveness of the business,
playing an extremely important role in business
management, as well as long-term development.
company length.
2.2 Recruitment for employees The process of finding and selecting the right person,
in order to satisfy the requirements of the position
being opened with the company's long-term goals.
C Infrastructure investment
3.1 License to import equipmentAn import permit will be issued after the Japanese
from Japan to Vietnam Customs authorities carry out the necessary goods
inspection procedures for the related goods and the
importing enterprises complete the customs duty
payment procedures. and excise tax.
3.2 Import equipment to Vietnam Importing machines, equipment, lines directly
serving the work from reputable firms
D Construction and designing

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4.1 Architectural and structural The work has a standard structure so as not to be
design damaged by internal and external forces, weather
effects, and mechanical impacts. Ensure long-term
sustainability to increase the life of the work. the
spatial arrangement, including architecture, structure,
power supply, lighting, water supply and drainage,
air conditioning, ventilation, etc.
4.2 Construction Construction and installation of interior and exterior
for the project according to the given design
4.3 Architectural works Comparison between design drawings and finished
works.
E Monitoring and control
5.1 Geotechnical equipment Installation of equipment, technical equipment,
machinery necessary for the project
5.2 Protect monitoring Protecting construction sites, monitoring the number
of people entering and leaving, checking the quantity
of materials and machines in the construction site,
patrolling regularly, avoiding theft, fights or
accidents during construction.
5.3 Internal quality management To manage the quality of the work in order to ensure
the technique, quality and art of the work, the
construction unit must strictly comply with the
instructions and requirements of the design as well as
the regulations of the construction and acceptance
process. used for construction of construction items.
F Testing and commissioning
6.1 Deliver to business Hand over to the investor documents including as-
built drawings, operating instructions, maintenance
procedures, list of equipment, spare parts, spare
materials and necessary documents other relevant.
6.2 Certificate of statutory To certify the completion of the work, the unit can
completion make statistics of the results of the acceptance and
completion for the construction of the items in the
construction of that work.

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2.3 Define the deliveries of your project

2.4 Define WBS of tasks and their deliverables

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2.5 Time management

2.5.1 Estimate time required for each task, the inter -relationship among tasks (SS,FS,…)

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Time: months

2.5.2 Estimate total project duration

The total project duration is: ~7 months

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2.6 Project Cost Management.

2.6.1 Indicators reflecting the cost management performance of the project.

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2.6.2 Estimate Costs associated with each task

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 2.6.3 How do you manage costs in the case of your project?
- Maintain a record of actual expenses. Install a weekly/monthly reporting system at the end of
each month to double-check the actual amount of money. Calculate and update spending metrics
at the end of each reporting period. Calculate how much of the project's total budget has been spent
vs how much I expected it to cost at this point in time.
- Project reports and steering committee presentations should include cost information.
- Make sure the planned vs. actuals are documented.
- Reports should be examined on a weekly basis.
- Check to see if there are any budget overruns.
- Submit various charges, handle approvals in accordance with your company's policies, and obtain
an expense report.
- Keep an eye on the earnings report for the project.
- Track the development of every project in your portfolio, separated by customer.
- In order to stay informed about the project, monitoring and control include keeping track of its
progress.

2.7 Risk Management

2.7.1 Identify risks

Projects are extremely complicated and might expose you to a variety of internal and external risks.
To prevent these risks, a precise set of codes, laws, and regulations must be followed during the
construction process. Unfortunately, there is no way to totally prevent risks because unknown
circumstances will always occur throughout the course of a project. Knowing the different types
of risks and how to manage them is one of the greatest strategies to manage them. You may
maximize your risk management and reduce potential losses if you can identify and categorize
risks before beginning a project.

In project, we identify that the construction risks can be categorized into these types following:

The first type of risk is Operational Risks. The risk of losses caused by incorrect or failing
procedures, rules, systems, or incidents that interrupt corporate operations is referred to as
operational risk. Employee mistakes, criminal activities such as fraud, and physical occurrences
are all examples of reasons that might lead to operational risk. People inside or outside the
business, technology, procedures, or even external events can all be causes of operational risk.

The second risk is Financial Risks. Financial risk is a type of threat that might cause interested
parties to lose money. This can result in governments being unable to regulate monetary policy
and defaulting on bonds or other financial concerns. Corporations face the threat of default on debt
they incur, but they may also fail in an endeavor that creates a financial strain on the firm. This
project's financial risks include liquidity risk, foreign exchange risk, and material price increases.

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Finally, the identity of Investment Risk is also vitally important for this project. Every project
managed by your project management office incorporates technology (PMO). Because employing
technology is increasingly inescapable, it is critical that your PMO recognizes the technological
risk in project management. There are several risks associated with projects; each must be
identified so that your project managers and PMO can work together to minimize them. Not
everything can be predicted, but having fallbacks and solutions on hand may be quite beneficial.
Besides, Other risks we also show in the next part such as technical risk and environment risk.

In the following section, we examine the probabilities in further detail and how they impact them.

2.7.2 Evaluate the risk of project

Response Meaning Agreement

1 Non or very little Totally disagree

2 Little

3 Neutral
Neither agree or disagree

4 High/much/many

Fully agree
5 Very high

Risk code Risk category Risk description Likelihood Impact Measure to

address

O1 Operational risk 4 5
Contradictions occur Establish and
in the process of have a
defining goals, thorough
leading to communi-
suboptimal project cation between
quality the investors to
come up with a

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 clearly defined
goal.

O2 Operational risk 4 5
Internal processes When
are incompatible appraising a
with the nature and project, the
scope of firm compliance
actions, as well as level of the
the legal project
requirements (according to
the project file)
must be
considered, to
ensure strict
compliance
with applicable
laws and
regulations
relevant to the
project.

O3 Personnel risk Employees' 4 4

inadvertent or Adjust
intentional actions activities to
disrupt business speed up the
operations. progress, add
more workers
to run the
project on time

F1 3 4
Finance Risk Lack of funds to During the
spend on materials project review
process, the
appraiser must
thoroughly

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 assess and
evaluate the
reports on the
quality and
amount of
input

materials in the
project file,
Flexibility in
terms of time
and quantity of
raw materials
purchased

F2 Currency 3 4
exchange rate Finance, costs Finance
risk incurred or loss of department and
revenue fluctuations project
in the market that manager need
can affect costs that to scrutinize,
businesses do not research the
anticipate (changes market,
in exchange rates) evaluate
market
analysis,
market share
carefully

F3 3 2
Investment Risk When the supply Provide a
chain produces too forecast of
much inventory, consumer
there is a surplus in demand
the process through
surveys to get
approximate

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 data to produce
items

F31 Management 2 5
Risk Strategy and Tighten the
processes are not control of steps
tight, errors occur as well as
and are delayed more introduce
than expected quantitative
production time methods or
invite 3rd party
experts for
consultation

T1 3 5
Technical Risk Machines wear out Check
over time or There carefully and
are not enough upgrade more
employees to do the devices to
project newer, and
open
registration to
recruit new
employees

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T2 Infrastructure 4 4
Risk Inconsistency in The project
design party needs to
share the most
about a goal as
well as the
methods of
presentation so
that it is
consistent

E 3 4
Environment Rain/Storm/Epidemi See the
Risk c weather
forecast and
measure the
time the
progress is
affected by the
weather, and
give the
methods to
protect healthy
for everyone

2.7.3 Build the Project Risk Map

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 2.7.4 Discuss economic scenarios that may affect the sustainability of the project
● Good circumstances
Despite the COVID-19 epidemic's effects in 2021, the supply and demand chains were disrupted,
the cost of several inputs for agriculture, forestry, and fishery output rose, but the sectors' growth
rates remained constant. Stability is a crucial building block for providing protection against
epidemics because it supports the economy in trying times and ensures the supply of food and
necessities. The fact that Vietnam is an agricultural nation with more than 60% of the population
being farmers and experiencing few natural disasters like storms and floods is one of the key
reasons influencing this development. Because of the drought, rice is still the most important crop
in agriculture.
The achievements of agriculture, particularly the growing structure of high-quality rice, continue
to represent the trend of changing the structure of high-quality products. The value of rice output
climbed by 2.67% during the course of the year, out of which 3.93% more was produced as high-
quality rice. Overall, rice production increased by 2.61%. When companies are prepared to invest,
take advantage of possibilities, and speed up efforts to improve agriculture, the Ministry of
Agriculture and Development always aims to accommodate all of their needs.
In order to boost long-term economic growth after the pandemic and foster an environment that
will motivate businesses to invest in agricultural production, the government has also implemented
a number of measures to assist individuals and businesses in overcoming the effects of COVID-
19, such as reducing land rent, deferring tax and land payments, paying workers one-time wages,
and relaxing some restrictions on foreign workers. As the economy further opens up, foreign
investors will have more opportunity to collaborate and supply more capital and raw materials for
manufacturing, plow factories for farmers, and other benefits. to benefit the economy of Vietnam.
● Bad circumstances
The Covid-19 pandemic's effects have come down considerably, in part even though Vietnam's
supply chain has been heavily scrutinized by the economy, preventing goods from moving around
as much as they once did. As a result, materials, equipment, and machinery are not automatically
patched, which affects the factory's machinery production chain when there are insufficient
facilities. Furthermore, when the price list is unstable and causes the investor's capital to be rattled,
the excessive cost of transport is another problem.

III. RECOMMENDATIONS AND CONCLUSIONS

3.1. Recommendation: Labor management

The initiative to construct a rice harvester is one of the great ideas to assist the development of the
country's agriculture as well as to strengthen the Vietnamese people's position in self-production
and as a source of agricultural development. home country with domestic products, especially after
the recent Covid pandemic, when the government always stimulates production companies,
supports, and creates an atmosphere for individuals or corporations to invest in agriculture.

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Because this is a large-scale project, human resources will be a significant focal point in improving
the project's quality.
The workforce is the foundation of the factory, determining the success of a company. As such, it
is always given careful consideration in all areas and given the best training possible. In order to
eliminate waste and increase net revenue from resources, good labor management will also inspire
and instill trust in human resources' ability to meet deadlines. Labor management aids businesses
in increasing labor productivity, assisting employees in making timely adjustments in the direction
that is most advantageous to themselves as well as the overall objectives of the business in which
they are working, and effectively saving more money. Labor management aids businesses in
accurately assessing the capacity of workers and assigning jobs in accordance with their skills.
Furthermore, when necessary, the labor manager will teach, educate, and orient candidates in the
necessary skills so that they can quickly adjust to the working environment. Every corporation will
always have a labor department to deal with all of these issues, thus human resource managers will
always be there to answer inquiries when there are any issues with human resources.
Current risks associated with human resources inside the organization include stagnation brought
on by employees accidentally forgetting, contradiction, etc., therefore in order to better
management:
- To prevent misunderstandings in the project that could cause it to stall, carefully disseminate
information and assign specific things to who will be in charge of which project components. To
underline the significance of and give careful attention to each production stage, establish clear
goals and directions from the very beginning of the project introduction. The appointed and closely
watched monitoring unit will provide precise incentives and sanctions for each instance of
accomplishments or deficiencies.
- When there is a dispute or conflict, it is critical to find solutions as soon as possible so that the
entire production chain is not disrupted, communicate what has to be altered in the process, and
remind employees how they should take their work attitude seriously and provide them with the
essential information throughout operation.
- Labor insurance is essential when there are any issues concerning human health, particularly
during construction, in order to limit risks and costs.
- When the number of employees is unpredictable, it is vital to determine the amount of manpower
for the backup plan if possible.

3.2. Conclusions
These are the aspects of our managing projects for constructing a plant for harvest in Nghe An. To
boost the agriculture industry's profit value and maintain its prosperity when the factory is put into
operation, the harvesters will be progressively evaluated and distributed to Vietnamese producers.

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IV. REFERENCES

1. Person (2021) Thủ Tướng Chính Phủ chỉ đạo thúc đẩy sản xuất, Lưu Thông, XK Nông
Sản, vpcp.chinhphu.vn. vpcp.chinhphu.vn. Available at: https://vpcp.chinhphu.vn/thu-
tuong-chinh-phu-chi-dao-thuc-day-san-xuat-luu-thong-xk-nong-san-11526488.htm
(Accessed: January 4, 2023).
2. BVU - Trường đại học BÀ Rịa - Vũng Tàu (no date). Available at: https://bvu.edu.vn/
(Accessed: January 4, 2023).
3. Nông Nghiệp Việt Nam năm 2021 Tiếp Tục Duy Trì đà Tăng Trưởng Ổn định (no date)
Trang chủ. Available at: https://consosukien.vn/nong-nghiep-viet-nam-nam-2021-tiep-
tuc-duy-tri-da-tang-truong-on-dinh.htm (Accessed: January 4, 2023).
4. Lợi ích Khi sử dụng dịch vụ Quản Trị Nhân SỰ (2021) CKHRConsulting. Available at:
https://ckhrconsulting.vn/loi-ich-khi-su-dung-dich-vu-quan-tri-nhan-su/ (Accessed:
January 5, 2023).
5. Nông Nghiệp và Phát Triển Nông Thôn việt nam trong Bối Cảnh Tác động Của Covid-
19: CƠ Hội và thách... (no date) Cổng thông tin điện tử Bộ NN và PTNT. Available at:
https://www.mard.gov.vn/Pages/nong-nghiep-va-phat-trien-nong-thon-viet-nam-trong-
boi-canh-tac-dong-cua-covid-19-co-hoi-va-thach--.aspx (Accessed: January 5, 2023).
6. Person (2021) Chính Sách Khuyến Khích doanh nghiệp đầu tư vào Nông Nghiệp, Nông
Thôn, baochinhphu.vn. baochinhphu.vn. Available at: https://baochinhphu.vn/chinh-sach-
khuyen-khich-doanh-nghiep-dau-tu-vao-nong-nghiep-nong-thon-102296370.htm
(Accessed: January 5, 2023).
7. Kostyunina, T. (2018) Classification of operational risks in construction companies on
the basis of Big Data, MATEC Web of Conferences. EDP Sciences. Available at:
https://www.matec-
conferences.org/articles/matecconf/abs/2018/52/matecconf_esci2018_05072/matecconf_
esci2018_05072.html (Accessed: January 5, 2023).
8. Tầm, P.by T. (2021) Các Rủi Ro Trong Thi Công Xây Dựng và Biện pháp khắc phục,
Thiết kế và thi công trọn gói. Available at: https://thuoctam.vn/cac-rui-ro-trong-thi-cong-
xay-dung-va-bien-phap-khac-phuc.html (Accessed: January 5, 2023).
9. Netrananda - Post Author SEO (2022) How to do cost management in Project
Management, Project Management Blog. Available at:
https://www.orangescrum.com/blog/how-to-do-cost-management-in-project-
management.html (Accessed: January 5, 2023).

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V. CONTRIBUTION

No Student name Student ID Contribution (%)

1 Hồ Huyền Trang 19071522 33.3%

2 Tạ Bích Ngọc 19071445 33.3%

3 Nguyễn Thanh Hải 20070159 33.3%

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