MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY ECONOMICS AND MANAGEMENT
HUMAN RESOURCES STRATEGY
TRUNG NGUYEN COMPANY IN CHINA
Instructor: Mrs Nguyen Thi Be Class: NS207DE02 - 0400 Group: 3 Members: Name Student ID Nguyen Thi Tu Uyen 2183421 Marrie Herrero 2190720 Vu Duong Gia Khon 2190647 Bui Thi Yen Trang 2181435 Dam Gia Long 2183004 Nguyen Thi Huyen Trang 2182528 LECTURER COMMENTS
Remark and comments of instructor:
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Ho Chi Minh City, December 1th, 2019 Instructor 1 OBJECTIF OF THIS REPORT
The purpose of this report is to provide information about Vietnamese coffee industry and
explore the potential export to the Chinese market. Moreover, we want to highlight the
human resources strategy of Trung Nguyen Group In china, for that we need to:
 Research and understand the labor law in China for creating one strategy and policies based on the law.
 Know about the mission and the vision of the company for distribute the same message to every employee.
 Create a good work environment. 2 ACKNOWLEDGEMENT
In performing our assignment, we had to take the help and guideline of some respected
persons, who deserve our greatest gratitude. The completion of this assignment gives us much pleasure.
We would like to express my deepest appreciation to Mrs. N
guyen Thi Be who provided
me the possibility to complete this report, contribution in stimulating suggestions and
encouragement, helped us to coordinate my project especially in writing this report, gave us a
good guideline for assignment throughout numerous consultations.
Besides that, I would also like to acknowledge with much appreciation the crucial role of
all members in group, that assemble the parts and gave suggestion about the task “HUMAN
RESOURCES STRATEGY TRUNG NGUYEN COMPANY IN CHINA” 3 TABLE OF CONTENTS
LECTURER COMMENTS..........................................................................................................1
ACKNOWLEDGEMENT............................................................................................................3 1.
About Trung Nguyen Coffee Company................................................................................6
1.1 About Nguyen company in the Chinese market.......................................................... ……9
2. DESCRIBE, ANALYZE AND EVALUATION OF THE HUMAN RESSOURCES PRACTICES………10
2.1 Recruitment……………………………………………………………………………………………………………………………………10
2.2 Selection………………………………………………………………………..……………12
2.3 Training……………………………………………………………………………..12
2.4 Compensation and benefit…………………………………………………………13
3 CONCLUSION AND RECOMMENDATIONS……………………………………15 4 REASEARCH METHODOLOGY Reference secondary data:
 Documents about Trung Nguyen Group: Read about news, online
documents related to Trung Nguyen Group.
 Reference online documents about labor law in China.
 Research about Human strategy of the company in different Websites. 5 1. INTRODUCTION
 About Trung Nguyen coffee company.
On June 16, 1996, Dang Le Nguyen Vu founded Trung Nguyen In Buon Ma Thuot City – Vietnam’s coffee capital.
The opening of the first coffeehouse in Ho Chi Minh City was the first step in the
formation of Trung Nguyen coffee shop chain in cities through Vietnam and other countries of the world.
In 2010, Trung Nguyen coffee product are exported to over 60 countries around the
globe, especially in the U.S, Canada, Russia, England, Germany, Japan and China.
Trung Nguyen has won numerous prizes and titles for the entrepreneurial achievements
of the company as well as its enlightening business practices, and the excellent products.
Now it’s the largest producer, processor and exporter of coffee in Vietnam.
Trung Nguyen coffee growers have been certified by EUREPGAP and Utz Kapeh for
their “safe and sustainable” cfee growing practices. CEO TRUNG NGUYEN COMPANY 6 o V
ision of the company: “The Great Organization - Through Serving Humanity”
and “To become the coffee leader”. o Mission:
“Build the Unified Humanity Under The Value System Of The
Enlightened Lifestyle For Success and True Happiness”. That’s mean, connect and
develop to community of coffee lovers with a passion for creative coffee in order
to achieve a prosperous and sustainable world. o Core V
alues: “Absolute Faith”; “Serving Community”; “Supported by Humanity”; “Strong Eco-Finance”. Picture 1
 About Nguyen company in the Chinese market.
Trung Nguyen Coffee’s representative office was officially opened in Shanghai in
November,2017. A strategic cooperation agreement was signed on April including Mr.
Sean Pan, Sales Director of the Trung Nguyen Legend Corporation in China, Ms. Li Jing,
CEO of the Shanghai Qiuzhou Trade Co., a fast-moving consumer goods (FMCG)
distributor, and its Sales Director Mr. Wang Lei. 7
Trung Nguyen Legend has also accelerated trade promotion activities in China,
introducing G7 instant coffee and selling it on reputable websites such as Alibaba,
Taobao.com, tmall.com, Yihaodian.com, and jd.com and at more than 1,000 supermarkets
in China. It plans to further promotion activities and open more selling points in China’s major cities like in Pekin.
Instant coffee is a popular product in China thanks to its mild taste, according to Trung
Nguyen, and is suitable with the trend in China of consumption changing from tea to coffee.
The market is estimated to grow 18 per cent in the 2014-2019 period, and was worth $9
billion in 2016, according to Euromonitor International. Trung Nguyen also plans to build
a new coffee plant in the country that will focus on producing instant coffee, with
construction to begin this year.
Picture 2: TRUNG NGUYEN logo 8
DESCRIBE, ANALYZE AND EVALUATION OF THE HUMAN RESSOURCES PRACTICES
Message from the Chairman: “If you want to succed, there must be aspiration! If you
want to be happy, you must serve with heart! The higher responsibility, the bigger glory!
Together, nothing is impossible!”
The two main keys to recruiting the right talent for a position are to have a clear image of:
 The ideal candidate to complete tasks efficiently and achieves your goals for the
position. What sort of ideal qualities, achievements, certifications, and experience
are you looking for? Just like recruiting talent in any other country in the world, it
is imperative to make these conditions clear from the start.
 The market for that same position: what your ideal candidate expects regarding
salary, benefits, what the turnover is in that specific industry, what the average
qualification for others in the same position, etc. Depending on your budget and/or
requirements, the candidate might change after finding out how many talents
currently fir your requirements and are currently available.  Staffing o Recruitment
In China, whether you are hiring a local Chinese employee or a foreign employee, there
are two main popular methods: recruiting through professional recruiting platforms
or utilizing a professional employment organization (PEO).
Recruiting via Professional Recruiting Platforms
The 6 main recruiting platforms in china are WeChat with more than 846 million users;
LinkedIn is very famous in china; Chitu Chinese version of LinkdIn; 51job who offers
a wide range of services in the areas of recruitment solutions, training and assessment and
HR outsourcing and consulting service; who cover range of industrie Zhaopin s all over
china; and Liepin who is growing in user and popularity within the recruiter world. 9
Recruiting via a Professional Employment Organization (PEO)
The second most popular method among foreign companies is utilizing a professional
recruiter, who generally offers headhunting services, working and resident permit
application services, salary sponsorship services, tax declaration services, expense
management and financial reporting services, and insurance services.
Many foreign companies prefer utilizing PEOs instead of agencies due to the thorough
follow-up and support PEOs offer during the on-boarding process. Some of them even
take care of all the visa procedures concerning the hired employee(s). This allows foreign
companies to be able to devote 100% of their time and effort into their business.
Furthermore, recently in China, there have been many cases in which discrepancies are
found between candidate’s resumes and their actual abilities and certifications after
employment. For example, Chinese candidates not actually from mainland China and
whose level of Mandarin is not satisfactory, a Chinese or European candidate whose
mastery of English is not sufficient, and a high-level framework without any references
being checked out before hiring (fake TOEFL/IELTS scores, etc.). o Selection
Employee selection in human resource management is critical to a company's success.
Trung Nguyen Coffee company need a strong HR selection process who can help to
ensure that they will hires competent, loyal employees who help you to reach the
business goals. For that the person in charge of the recruitment will scan every CV.
Because Hiring a mediocre or poor worker will cost the company money and that will
conduct to Poor Performance, Reduced morale and will lead to staff losses.
For a good selection, the company need to understand the job role (Write a job
description along with interview questions that are relevant to the skills needed for the
job). It’s important to have multiple interview with a candidate, because multiple
perspective can provide a better understanding of the candidates. Checking out the
candidate’s social media platforms can be very useful, and if the company suspect that
this person won’t fit, they need to move on to the next applicant. o T raining
Human resource training is a function that involves developing employees’ skills,
knowledge and abilities to meet the organization’s needs. The behind human resource
training is to create a competent, motivated and high-performing workforce that is
prepared to meet future demands. Human resource training also maximizes employee
potential, leading to higher productivity. 10
Trung Nguyen Coffee company need to create a training-needs assessment and take a
good look at gaps between current and desired performance, analyzes core problems and recommends interventions.
The company need to take various measure to train their employees to develop their
skills, improve their qualities, and raise their work ability every month. But the training
represents an expense that some companies are not willing to paid. So, the company need
to considerer every option. Organizations can also use other training tools that do not
cost anything, such as mentoring, on-the-job training and shadowing. o
Compensation and benefit
In china, the employers typically pay employee monthly either in cash or through a bank.
In the Chinese Law, Article 45: The employee has the right to have annual vacation with pay.
In accordance with the Chinese Law of Labor, the employee has the right to
remuneration, to rest and vacations, to protection of occupational safety and health, to
training in vocational skills, to social insurance and welfare, (Article 3).
The employee needs to be award of all the clauses and conditions from the labor contract:
Term of a labor contract; Work assignment; Labor protection and working conditions;
Labor remuneration; Labor discipline; Conditions for the termination of the labor
contract; and Liabilities for the violation of the labor contract. (Article 19). Moreover, a
labor contract may be cancelled by agreement reached between the parties through consultation. (Article 24)
The staff and workers of an enterprise as one party may conclude a collective contract
with the enterprise on matters relating to labor remuneration, working hours, rest and
vacations, occupational safety and health, insurance and welfare. The draft collective
contract shall be submitted to the congress of the staff and workers or to all the staff and
workers for discussion and adoption. (Article 33).
In the Chapter IV: Working hours, Rest and Vacation; from the Chinese Law, we
have all the regulations about the working time that should not be more than eight hours a
day and no more than 44 hours a week on the average. The company need also to give
vacations to the employee in accordance with the festival written in the law. 11 Compensation: In Peking: Full-time employees Part-time employees Contract
Follow the Labor Contract Part-time Employee Law in China Contracts Working hours 8hours/day, 40 4hours-5hours/day, more hours/week than 24hours/week 1st shift: 6:30 – 14:30 1st shift: 6:30 – 10:30 2nd shift: 14:30 – 22:30 2nd shift: 09:30 – 14:30 3rd shift: 12:30 – 17:30 4th shift: 17:30 – 23:00 Salary Manager 10000- 12000 RMB/month Supervisor 5500- 5600 RMB/month Barista 2600-3500 RMB/month 19 RMB/hour
Waiter/waitress 2300- 2900 RMB/month 17.5 RMB/hour Trainee 16RMB/hour 16 RMB/hour Payment Monthly At least every 15 days Overtime pay
Working more than 40 hours per week, receive:
 150% of regular wage on a work day  200%: on rest days  300%: on holidays. Benefits: -
Medical Insurance for Full-time Employees. - Maternity leave. -
Workplace personal injury insurance for every employees - 1 day off per week. 12 -
Discount 30% for meals, drinks (only in branch that employee is working at).
CONCLUSION AND RECOMMENDATIONS
Trung Nguyen Company has a management team of mostly young and talented people.
They are trained with experienced consultants who have been working for a long time.
Coffee demand in the world is constantly increasing. Currently, there are many different
coffee development and production companies. But Trung Nguyen is interested in the
human resource management environment to take advantage of its strengths to survive,
and at the same time grasp the challenging weaknesses to overcome.
They also tend to become rapidly exported to many countries around the world, so they
need to face the difference in term of Human Resources, like we describe for china.
 Recommendation for the state
The china government can help the company in sourcing, recruitment and with the
employers right (Salary policy, reward and income tax guaranteed equal). 
Recommendation for the company
The Company need to create more and more opportunities for people to be trained with
different training programs. For example, training in workshop every week or month so
that people can upgrade their skills.
The Creation of a good and professional working environment will be very appreciated
by the employees and that will help them to product more.
The company need to increasing access to technology innovation and modernity for the
self-training of the employees. 13 REFERENCE
Trung Nguyen Legend Coffee website: https://trungnguyenlegend.com/?lang=en
Trung Nguyen Legend Wikipedia: https://fr.wikipedia.org/wiki/Trung_Nguyên
Chinese Labor Law 2019: https://iclg.com/practice-areas/employment-and-labour-laws-and- regulations/china
https://www.cecc.gov/resources/legal-provisions/labor-law-of-the-peoples-republic-of-china
An examination of Human Resources Management in China:
https://www.ivoryresearch.com/writers/andy-peel-ivory-research-writer/
http://www.hetaokafei.com/z/8696.html
https://www.zhihu.com/question/62369496
https://www.sjgrand.cn/hiring-part-time-employees-china/ 14