Tài liệu Strategic market plan of bac giang, vietnam

A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ThAi nguyen University Socialist Republic of Vietnam Southern luzon STATE University Republic of Philippines STRATEGIC MARKET PLAN OF BAC GIANG, VIETNAM Advisor : Dr. Edwin Bernal Name of Researcher : MAI SON English Name : JACKSON Date of Birth : 29-11-1974 Course SLSU-DBA1 : Bac Giang August, 2013 i A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY STRATEGIC MARKET PLAN OF BAC GIANG, VIETNAM A Dissertation Presented to the Faculty of the Graduate School of Southern Luzon State University in Collaboration With Thai Nguyen University In Partial Fulfilment of the Requirements for the Degree Doctor in Business Administration MAI SƠN August 2013 ii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ACKNOWLEDGMENT I would like to express my deep gratitude to the persons who assisted and encouraged me to complete the doctoral course. Their help was so valuable for me. First of all, I would like to thank my parents who gave birth to me. They have encouraged me to complete this doctoral course not only by words but also by their proud of their son. Thousands thanks for my wife, Trieu Thi Nhung, for her great sacrifice to me and my children. She has given us uncountable help, not only by raising up or teaching my children so that I could have time for my work and study, but also supporting me with her good meals and medical care..., etc. She is a true Vietnamese wife! Special thanks to my advisor, Professor Edwin Bernal, for his talented understanding, encouragement, and support during my candidature. The completion of this thesis would not have been possible without his direction and support. Many thanks to Mr. Dau Anh Tuan - the Head of Legal Department of Vietnam Chamber of Commerce and Industry (VCCI) for providing necessary data and information for my research. The last persons but not least, all the leaders of my province, entrepreneurs who encouraged me and answered my questionnaires and my face to face interviews. Without these, how can I completed my thesis. What I could have learned, received and will bring along with me is something much much more than a thesis. BacK iii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY DEED OF DECLARATION I, Mai Son, hereby submit my DBA thesis, entitled STRATERGIC MARKET PLANNING OF BAC GIANG, VIETNAM, truthfully declare that the said paper is a product of my original research investigation. Signed this …………………….2013 at Thai Nguyen University MAI SON DBA Candidate BacK iv A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY TABLE OF CONTENTS Page ACKNOWLEDGMENT ................................................................................................... iii DEED OF DECLARATION ............................................................................................. iv TABLE OF CONTENTS ................................................................................................... v LIST OF TABLES ........................................................................................................... viii LIST OF FIGURES ............................................................................................................ x LIST OF ABBREVIATIONS ............................................................................................ xi APPROVAL SHEET ........................................................................................................ xii ABSTRACT ..................................................................................................................... xiii CHAPTER I ........................................................................................................................ 1 INTRODUCTION .............................................................................................................. 1 1. Background of the Study ......................................................................................... 1 2. Statement of the Problem ........................................................................................ 2 3. Objectives of the Study ............................................................................................ 3 4. Hypotheses of the Study........................................................................................... 4 5. Significance of the Study.......................................................................................... 4 6. Scope and Limitations of the Study......................................................................... 5 7. Definition of Terms .................................................................................................. 5 CHAPTER II ...................................................................................................................... 8 REVIEW OF RELATED LITERATURE ......................................................................... 8 1. Related Literatures .................................................................................................12 2. Related Studies ........................................................................................................42 v A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY CHAPTER III ....................................................................................................................52 RESEARCH METHODOLOGY ......................................................................................52 1. Locale of the Study..................................................................................................52 2. Research Design ......................................................................................................52 3. Population, Sample and Sampling Technique .......................................................53 4. Research Instrument...............................................................................................53 5. Data Gathering Procedure......................................................................................54 6. Statistical Treatment...............................................................................................54 CHAPTER IV ....................................................................................................................57 RESULTS AND DISCUSSION .........................................................................................57 1. The Respondents' Profile ........................................................................................57 2. Respondents’ Perception on the competitiveness of Bac Giang Province .............61 3. Factors affecting to Bac Giang Competitiveness ...................................................71 CHAPTER V .....................................................................................................................85 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ......................................85 1. Summary of Findings ..............................................................................................85 2. Conclusions .............................................................................................................87 3. Recommendations ...................................................................................................88 REFERENCES ..................................................................................................................95 BacK vi A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY APPENDIES Appendix Page 1. SURVEY QUESTIONNAIRE ...................................................................................... 100 2. CURRICULUM VITAE ............................................................................................... 126 BacK vii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY LIST OF TABLES Table Page 1. Likert interpretation............................................................................................................53 2. Composition of Respondents According to Working Years and Type of Business...........58 3. Composition of Respondents According to Line of Business and Type of Business.........59 4. Composition of Respondents According to Capital Size and Type of Business.................60 5. Composition of Respondents According to Capital Size and Number of Employee..........61 6. Overall Respondents’ Perception on the Competitiveness of Bac Giang Province by Line of Business...............................................................................................................................62 7. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Entry Costs by Line of Business......................................................... 63 8. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Land Access and Tenure by Line of Business......................................64 9. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Transparency by Line of Business...................................................... 65 10. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Informal Charges by Line of Business................................................66 11. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Time Cost by Line of Business........................................................... 67 12. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Pro-activity by Line of Business.................................................... 68 viii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY 13. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Business Support Services by Line of Business...................................69 14. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Labor Training by Line of Business.....................................................70 15. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Legal Institutions by of Line Business................................................. 71 16. Descriptive statistics of regression.....................................................................................72 17. Model summary.................................................................................................................73 18. ANOVA of regression.......................................................................................................73 19. Results of estimation..........................................................................................................74 20. ANOVA between Working years and Competitiveness Factors.......................................76 21. ANOVA between Type of Business and Competitiveness factors....................................78 22. ANOVA between Line of Business and Competitiveness Factors....................................79 23. ANOVA between Capital Size and Competitiveness Factors...........................................81 24. ANOVA between Number of Employees and Competitiveness Factors..........................83 BacK ix A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY LIST OF FIGURES Figure Page 1. Administration Map of Bac Giang Province .................................................................... 11 2. Theoretical Framwork..................................................................................................... 49 3. Conceptual Framework ................................................................................................... 51 BacK x A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY LIST OF ABBREVIATIONS ADB: Asian Development Bank ASEAN: Association of Southest Asian Nations EU: European Union GDP: Gross Domestic Product GSO: General Statistic Office HCM City: Ho Chi Minh City JICA: Japan International Cooperation Agency KOICA: Korean International Cooperation Agency MOLISA: Ministry of Labour, Invalids and Social Affairs ODA: Official Development Assistance OLS: Ordinary Least Squares PCI: Provincial Competitive Index SMEs: Small Medium Enterprises SMP: Stratergic Market Plan UNDP: United Nations Development Programme UNESCO: United Nations Educational, Scientific, Cultural Organization USAID: United States Agency for International Development VCCI: Vietnam Chamber of Commerce and Industry VNCI: Vietnam Competitive Index VND: Vietnamese Dong (Currency of Vietnam) WB: World Bank BacK xi A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY APPROVAL SHEET This thesis, entitled "STRATERGIC MARKET PLAN OF BAC GIANG, VIETNAM" prepared and submitted by Mai Son in partial fulfillment of the requirements for the degree of Doctor in Business Administration, has been examined and recommended for acceptance and approval for FINAL EXAMINATION. EDWIN BERNAL, PhD Adviser Approved by the Committee on Oral Examination with a grade of PASSED on …. 2013 Dr………………………..………………….. Member Dr………………………..………………….. Member Dr………………………..………………….. Member Dr………………………..………………….. Chairman Accepted in partial fulfillment of the requirements for the degree of Doctor in Business Administration. THAI NGUYEN UNIVERSITY Dean SOUTHERN LUZON STATE UNIVERSITY Dean BacK xii A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ABSTRACT In the recent decades, strategic market planning had been used as a strategy for enhancing competitiveness that led to achieving growth in the economies of some successful cities worldwide. This approach can be consider as an essential tool for the growth of urban economies in the global context. The model of place planning based on principles of marketing named Strategic Market Planning (SMP) that consists of the process of developing strategies so that a place can reach its growth objectives through identifying and meeting its target market demand. Place marketing is said to be both a consequence of, as well as a necessity for, increased competition among places for the development of resources. The competition is among developing places and/or among post-industrial cities which has resulted in more aggressive and complex forms of competition. As a consequence of the increasingly wide-ranging and aggressive competition, a place marketing strategy for retaining and attracting investment has become essential. With these points of view, the dissertation proposes a system of criteria to describe the perceptions of the investors on factors affecting the provincial competitiveness of Bac Giang as basis for introducing place marketing innovations as inputs to the Strategic Market Planning (SMP) model for the province. Further, the dissertation uses multivariate regression equation to evaluate fully factors affecting to competitiveness capacity of Bac Giang province. Base on these analyses, the dissertation proposes highly value recommendations to improve attractive image of Bac Giang province. Keywords: Strategic Market Planning, Place Marketing, Competitiveness, Provincial Competitiveness BacK xiii CHAPTER I INTRODUCTION Background of the Study In the recent decades, strategic market planning had been used as a strategy for enhancing competitiveness that led to achieving growth in the economies of some successful cities worldwide. Some scholars have judged this approach as an essential tool for the growth of urban economies in the global context (Ashworth 1994; Ashworth & Voogd 1990; Gold 1994; Jessop 1998; Kotler et al. 1999; Kotler, Haider & Rein 1993; Kotler et al. 2002; Levine 1998; Luo & Zhao 2003; Wells & Alvin 2000). They have been generalizing and conceptualizing this phenomenon in an effort to build a model of place planning based on principles of marketing. Kotler (ibid.) named this approach Strategic Market Planning (SMP) which consists of the process of developing strategies so that a place can reach its growth objectives through identifying and meeting its target market demand. A place’s target market might be businesses, visitors, residents, investors, donors and international financing institutions. Place marketing is said to be both a consequence of, as well as a necessity for, increased competition among places for the development of resources. The concept of city marketing has gained increasing attention as a means of enhancing the competitiveness of cities (Paddison 1993 cited in Short & Kim 1998). In the effort to respond to the demands of competition and to attract the desired target groups, place administrators have recognized in marketing theory and practice a valuable ally (Kavaratzis 2005, p. 329). Some scholars pointed out that competition among places is not new. Cities have always existed within a market context of one sort or another, and they compete among one another for resources, activities, residents and services (Ashworth & Voogd 1990, p. 2). Many examples of marketing solutions, mainly promotional measures, which cities used in much earlier time are provided in Ward (1998). However, these BacK 1 early place marketing activities were intuitive and random (Kavaratzis 2005; Ward, 1998), whereas a more focused, integrated and strategic implementation of place marketing has been evident in recent decades (Kotler et al. 2002). The reason given for this change is increased competition among places as a response to fundamental changes in markets, investment and technology as a result of a common globalization trend in which people, capital, and companies have become more footloose (Kotler et al. 2002; Short & Kim 1998). The competition is among developing places and/or among post-industrial cities which has resulted in more aggressive and complex forms of competition. As a consequence of the increasingly wide-ranging and aggressive competition, a place marketing strategy for retaining and attracting investment has become essential. Statement of the Problem This study aimed to describe the perceptions of the investors on factors affecting the Provincial Competitive Index (PCI) of Bac Giang province as basis for introducing place marketing innovations as inputs to the Strategic Market Planning (SMP) model for the province. Specifically, this study tried to find answers to the following research questions: 1. What is the profile of the investors-respondents of working years, type of business, line of business, capital size, and numbers of employees? 2. What is the investor-respondents’ perception on Bac Giang Province’s competitiveness measured in terms of entry costs, land access and tenure, transparency, informal charges, time cost, proactive, business support services, labor training and legal institutions? 3. Is there any significant relationship between the selected investor-respondents’ characteristics and their perception on Bac Giang Province’s competitiveness? 2 Objectives of the Study The general objective of this study was to describe the perceptions of the investors on introducing place marketing innovations into the Strategic Market Planning (SMP) model for the province. Specifically, this study aimed: 1. To describe the profile of the respondents in terms of: a) Working years b) Type of business c) Line of business d) Capital size e) Numbers of employees 2. To analyze the competitiveness of Bac Giang Province based on the perception of the investors measured in terms of: a, Entry costs b, Land access and tenure c, Transparency d, Informal charges e, Time cost f, Proactive g, Business support services h, Labor training i, Legal institutions. 3. To measure any relationships between the selected respondents’ characteristics and the respondents’ perception on Bac Giang Province’s competitiveness. 3 BacK factors affecting the Provincial Competitive Index (PCI) of Bac Giang province as basis for Hypotheses of the Study Hypothesis 1. There are significant relationships between the competitiveness factors BacK (independent variables), namely: entry costs, land access and tenure, transparency, informal charges, time cost, pro-activeness, business support services, labor training and legal institutions and the competitiveness capacity of Bac Giang Province. Hypothesis 2: There are relationships between the selected respondents’ characteristics and the respondents’ perception on Bac Giang Province’s competitiveness. Significance of the Study The result of this study is envisioned to contribute knowledge to effective and efficient management; hence, it will benefit the following: For the investors, based on analysis of this paper, Bac Giang’s government will build special action plans to improve competitiveness of their province. Hence, investors will have more facilities when they invest to Bac Giang. For Bac Giang’ government, this study will help them understand their strong and weakness. In addition, Bac Giang’s government will understand what investors are thinking about business environment of their province, especially in term of entry costs, land access and tenure, transparent, informal charges, time cost, proactive, business support services, labor training and legal institutions. Hence, the government can build action plans to improve business environment of Bac Giang province to attracting more investors. For the researcher, this is the first research which proposes a combination of theories of place planning, marketing and regimes to provide a new theoretical base for the practice of place planning. This theoretical base, as judged by the practice outcomes with the case study in Bac Giang Province, will bring a deep understanding of how applicable this theory is to practice. The judgment will assist to develop a theoretical perspective toward a more appropriate SMP model for provinces in Vietnam. BacK 4 This study will help the researcher acquire skills in research method, to obtain useful knowledge of management at provincial level. This research is the foundation to the researcher to propose possible solutions for trouble of Bac Giang province's competitive capacity. It is also a necessary requirement for learner to graduate from business administration doctoral course. Scope and Limitation of the Study Based on the perception of investor-respondents, the study assessed the competitive capacity of Bac Giang province in terms of the following major nine variables: entry costs, land access and tenure, transparent, informal charges, time cost, proactive, business support services, labor training and legal institutions. The study was confined to Bac Giang Province and involved respondents coming from 122 local enterprises. On the basis of these analyses, the paper came up with some meaningful recommendations on how the province will proceed at formulating strategies in order to effectively market the place and hopefully attract investors to put their resources into the province. Definition of terms The following terms were defined on the basis of how they were used in this study: Strategic Market Planning is defined as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Stratergic market planning includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives. As used in this study, strategic market planning refers, specifically, to the process involved in how the Bac Giang province should create place marketing innovations towards a long-term strategy of making the province a competitive destination and beneficiary of productive investments. BacK 5 Working years refers to the length of time (in years) that an investor respondent had been working for and with the company. Type of business explain form of business entity is a commercial, corporate and/or other institution that is formed and administered as per commercial law in order to engage in business activities, usually the sale of a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, limited liability company and other specifically labeled types of entities. Line of business (LOB) is a set of one or more highly related products or services where a business generates revenue. Provincial Competitiveness Index (PCI) was conducted by Vietnam Chamber of Commerce and Industry (VCCI) and USAID-funded Vietnam Competitiveness Initiative (VNCI) o assist the competition to go in the right direction, relying on private business’ perceptions of the local business environment, as well as credible and comparable data from official and other sources regarding local conditions. Entry costs, a measure of the time and difficulty it takes firms to register, acquire land, and receive all the necessary licenses to start business. Land access and tenure, a measure of how easy it is for firms to access land. In 2006, this sub-index has been amended to include one new dimension to measure the security of tenure once land is acquired. The first dimension comprises whether firms possess their official land use rights certificates, whether they have enough land for their business expansion requirements, whether they are renting from SOEs and an assessment of land conversion efforts. The second dimension includes perceptions of various tenure security risks such as expropriation, unfair compensation values or changes in the lease contract) as well as the duration of tenure. BacK 6 Transparency and Access to Information, a measure of whether firms have access to the proper planning and legal documents necessary to run their business, whether those documents are equitably available, whether new policies and laws are communicated to firms and predictably implemented, and the business utility of the provincial web page. Time Costs of Regulatory Compliance, a measure of how much time firms waste on bureaucratic compliance as well as how often and how long firms must shut down their operations for inspections by local regulatory agencies. As such, it considers two dimensions of time costs, which are weighted equally: Bureaucratic Procedures and Time Lost to Inspections. Informal Charges, a measure of how much firms pay in informal charges and how much of an obstacle those extra fees pose for their business operations. Pro-activeness of Provincial Leadership, a measure of the creativity and cleverness of provinces in both implementing central policy, designing their own initiatives for private sector development, and working within sometimes unclear national regulatory frameworks to assist and interpret in favor of local private firms. Business Support Service, a measure of provincial policies for private sector trade promotion, business partner matchmaking, etc. It attempts to measure how well provincial officials are performing in resolving these problems on behalf of firms. Labor Training, a measure of the efforts by provincial authorities to promote vocational training and skills development for local industries and to assist in the placement of local labor. Legal Institutions, A measure of the confidence of the private sector in the provincial legal institutions, whether firms regard provincial legal institutions as an effective vehicle for dispute resolution or as an avenue for lodging appeals against corrupt official behavior. BacK 7