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THE UNIVERSITY OF DA NANG UNIVERSITY OF ECONOMICS PHUNG VAN THANH DEVELOPMENT OF NON NUOC TRADITIONAL STONE CARVING VILLAGE Major: Business Administration Code: 62.34.01.02 DOCTORAL THESIS SUMMARY Da Nang – 2022 THE UNIVERSITY OF DA NANG The work was completed in UNIVERSITY OF ECONOMICS Supevisors: Ass Prof Dr Pham Thi Lan Huong Dr Le Thi Minh Hang Objection 1: ……………………………………… Objection 2: ……………………………………… Objection 3: ……………………………………… The dissertation defended before the Board dots thesis the University of Economics granted on ………………… Can learn dissertation at: - Materials Information Center – The University of Da Nang - Library of University of Economics – The University of Da Nang INTRODUCTION The urgency of the thesis Non Nuoc traditional Stone Carving village is a famous craft village with a long history of formation and development Craft villages play an important role in the socio-economic development of the locality Craft villages are facing huge market opportunities, but there are still many limitations that not ensure sustainable development such as: Small scale of production and business; low production - business results; the amount of accumulated capital to invest in business development is not high, it is difficult to raise capital to expand production and business; linkage activities between production and business establishments with each other and with related organizations are limited, product quality is uneven, competitiveness is not high, innovation is still low, and low-educated workers, inadequate mechanisms and policies, problems of environmental pollution, infrastructure that is although invested but there are still many shortcomings, problems with output markets for products are facing many difficulties The industry linking cluster theory is widely used in the world as a theoretical basis for research to improve the competitiveness of industry and service industries Therefore, the author chooses the research topic: “Development of Non Nuoc traditional Stone Carving Village” According to the approach method of industry linking cluster, it will solve the current problems of the locality, in line with the current development trend in the region and in the world, helping craft villages to develop sustainably Research questionnaire What is an industry cluster? What are the characteristics of the industry cluster and what role does it play in the effective and sustainable development of traditional craft villages? Explain the correlation between the cluster development model and the characteristics of the craft village? (Identify traditional craft villages as clusters of industry links) Why you think that the model of clustering can be used to develop Non Nuoc stone craft village? Criteria to evaluate the conditions for sustainable development of craft villages in the direction of industry clusters? The development status of the Non Nuoc Stone Carving Village of in recent years, analyzing the production and business situation of craft village enterprises, the conditions for the development of traditional craft villages in the direction of industry clusters, advantages and limitations of those conditions? In the coming time, how does Non Nuoc Stone Carving Village develop in the direction of industry clusters and what measures should be taken to promote the formation and sustainable development of handicraft villages in the direction of industry clusters? Research objectives 3.1 General objectives Provide a theoretical system on industry linking cluster, assess the need and conditions for developing craft villages in the direction of industry linking cluster 3.2 Specific objectives - On the basis of clarifying the theoretical basis for the development of traditional craft villages in the direction of industry linking cluster, analyzing the current situation of craft villages and proposing some solutions for sustainable development of Non Nuoc traditional Stone Carving Village Research subjects and scope 4.1 Research subjects The theoretical and practical issues on the development of Non Nuoc traditional Stone Carving village in the direction of industry clusters 4.2 Research scope Enterprises, production and business establishments in Non Nuoc traditional Stone Carving village and related parties, the secondary data is collected for many years in the period 2015-2020, primary data in the period 2017-2020 Research Methods 5.1 Research approach The research will follow different approaches: participatory approach, cluster-based approach to industry linkages through the craft village product value chain, and socio-economic and environmental field-based approach In particular, special attention is paid to the approach to research and development of Non Nuoc Stone Carving Village in the direction of developing into an industry-linked cluster from different angles In line with the specialized nature of Business Administration, the author chooses an approach to research on the formation and development of industry clusters of Non Nuoc Stone Carving Village from the perspective of businesses and linkages between enterprises in the production and business process That is, studying the conditions for the formation and development of a cluster of associations of Non Nuoc Stone Carving Village through studying the process of agglomeration and centralization of production by enterprises in the craft village to effectively organize vertical and horizontal linkages in the value chain of Non Nuoc Stone Carving Village In addition, the study of some contents related to state management agencies is mainly to clarify the roles and responsibilities in ensuring the conditions for the development of linkages between enterprises in the cluster of craft village in line with the increasing development requirements of the domestic and world markets 5.2 Research Methods On the basis of research approach with participatory and clusterindustry linkages through the value chain of craft village products as well as the socio-economic-environmental approach The study was designed and conducted based on the combined assessment of producers, enterprises, and managers and combined information sources for analysis Secondary data sources were collected from the Statistical Yearbook of the General Statistics Office, the Statistical Yearbook of the Danang Statistical Office, the Ngu Hanh Son District Statistical Office, Da Nang Socio-Economic Development Research Institute, reports of city departments and agencies and Ngu Hanh Son district Primary data sources were collected from surveys, interviews with production and business enterprises in the on Nuoc Stone Carving Village, experts, central and local managers Collected data was coded and entered by Excel software; Analyze data, calculate statistical parameters, analyze statistics and interpret results using SPSS statistical software Analytical, descriptive and comparative methods were mainly used in the research process Scientific contributions of the thesis 6.1 Theoretical contributions - From theoretical research on clusters of industry linkages, based on agglomeration, to centralize businesses into geographical areas and territories, and to link vertically and horizontally between stages in the product value chain together with the inheritance of previous studies on craft villages to build a theoretical basis for the development of traditional craft villages in the direction of industry clusters, the thesis has clarified the nature, basic characteristics and roles of traditional craft villages The role of the formation and development of industrial clusters with the effective and sustainable development of enterprises in the value chain of traditional craft villages - Develop criteria and conditions for developing traditional craft villages in the direction of industry clusters to ensure sustainable development of craft villages The thesis has specified basic conditions that have a direct impact on the formation and development of clusters of trade villages: (1) The accumulation and concentration of enterprises by geographical area; (2) The linkage along the value chain of craft village products; (3) Competitive advantage; (4) Innovation; (5) Mechanisms, policies and management of the state 6.2 Practical contributions Applying the basic theoretical problems of clusters of industry linkages in accordance with the characteristics of traditional craft villages, from analyzing the overview features of the development of the Nuoc Stone Carving Village, the thesis has come to an in-depth analysis of the current situation of accumulation and centralization of production by enterprises and production facilities in craft villages, the status of vertical and horizontal linkages between enterprises and production facilities businesses and related organizations in the craft village according to the value chain of craft village products Since then, the thesis has clearly assessed the needs, favorable premise conditions and obstacles in the process of sustainable development of craft villages in the direction of industry clusters On the basis of SWOT analysis, the thesis has clarified the scientific argument to orient the formation and development of the cluster of associations of Nuoc Stone Carving Village The core orientation is that enterprises, production and business establishments in craft villages are able to widely develop linkages in the value chain of craft village products, and at the same time bring into play the advantages of industrial clusters of Nuoc Stone Carving Village The thesis proposes main solutions for sustainable development of craft villages in the direction of industry clusters, which are: Solutions on promoting the accumulation and centralization of enterprises producing and trading handicraft stone products in craft villages; Solutions on promoting the development of linkages between craft village enterprises and stakeholders (vertical linkage, horizontal linkage) along the value chain of craft village products; Solutions on promoting competitive advantage for craft villages through solutions such as human resource development solutions, materials solutions, capital solutions, infrastructure upgrades, and technology solutions; Innovative solutions; Solutions on mechanisms and policies, the management of the state; Group of solutions on environmental protection of craft villages, on trade and market, Land policy, promoting the role of craft village associations Structure of dissertation Chapter 1: Theoretical and practical issues of developing traditional craft villages in the direction of industry linking cluster Chapter 2: Research design Chapter 3: Development Status of Nuoc Traditional Stone Carving Village Chapter 4: Orientation and Solutions for developing Nuoc Traditional Stone Carving Village in the direction of Industry Linking Cluster CHAPTER 1: THEORETICAL AND PRACTICAL ISSUES OF DEVELOPING TRADITIONAL CRAFT VILLAGES IN THE DIRECTION OF INDUSTRY LINKING CLUSTER 1.1 Theoretical basis of craft villages 1.1.1 The concept of craft villages According to Dang Kim Chi (2005), Phan Huy Le (1995), Pham Con Son (2004), Trinh Kim Lien (2013), Duong Ba Phuong (2001), all have common views on the village is: “Craft village is a place where focus handicrafts that formed in rural areas within a clear geographical area and separated from agriculture, there is a class of craftsmen specializing in craftsmanship, with a certain technological process and live mainly by that profession and produce handicrafts, These items have handicraft properties, products are served for domestic and exportable, have linkages in production in the craft village” 1.1.2 The concept of a traditional craft village According to Dinh Xuan Nghiem et al (2010), Tran Quoc Vuong (2012), Tran Minh Yen (2004) “Traditional craft villages are traditional villages that exist and develop for a long time, formed in the countryside within a clear geographical area, the craftsmen are highly specialized, bring the main source of income, live mainly there is a link between production and business, economic, social and cultural relationship” 1.1.3 Characteristics of traditional craft village According to Le Thi Minh Ly (2003), Tran Minh Yen (2004), Tran Doan Kim (2007), Trinh Kim Lien (2013), Tran Quoc Vuong (2012), Vu Quoc Tuan (2011), Vu Ngoc Hoang (2016), Duong Ba Phuong (2001), Dang Kim Chi (2005), Bach Thi Lan Anh (2010), the craft village has the following characteristics: Long-standing, local culture in the geographical area; There is connection but loose; Competitive capacity is still poor; Current innovation has not been effective 1.1.4 Classification of craft villages - Classification by industry group: the village of brick and tile production; agriculture, forestry and fishery; fine art carving stone, wood, ceramics; mechanical welding, casting copper, cast iron, aluminum; textiles, hat making, paper production, basket weaving; Creatures Pet - Classification by development history: traditional craft villages; new craft villages 1.1.5 The role of the craft village in the local socio-economic development Craft villages play a great role in the socio-economic development of the locality, such as exploiting local human resources; preserving cultural values of craft villages; economic restructuring towards modernity 1.2 Theoretical basis for industry linking cluster 1.2.1 Concept of Industry linking cluster There are many concepts about industry linking cluster that are given by many authors such as Marshall (1890), Weber (1909), Becattini G (1992), Sforzi,F.(1992), Kuchiki (2007), (Porter, 1998, 2003) All have common concept is: “Industry linking cluster is geographic concentrations of enterprises in the same industry or have similarities in the field of production and business to take advantage of opportunities through geographical linkage The enterprises in the cluster will have a linkage with each other for sharing requirements and have relationships with related suppliers and customers Enterprises in the cluster improve their edge-to-edge capacity through collaborating with each other in production; sharing experiences and information, sharing the same technical infrastructure, human resources in the same industry, using similar technology , will be an advantage for businesses in industry clusters In addition, because enterprises are gathered in the cluster, it is a catalyst for innovation and creativity in technology change, production, product design change and commercial issues” 1.2.2 Characteristics of industry linking clusters Inheriting and synthesizing the researches of Porter (1985, 1990, 2007), Albumozhi et al (2009), Andersson and Hansson (2004), Benner (2012), Nguyen Binh Giang and Pham Thi Thanh Hong (2015), the industry linking cluster has the following characteristics: the accumulation of businesses; Linkage along the product value chain; Creation of competitive advantage; Creative innovation; Policy mechanism and state management 1.2.3 The formation and development of industry linking cluster According to research by Sonobe et al (2004), Porter and Watts (2011), Benner (2009) and Sonobe & Otsuka (2006): The formation and development of industry linking cluster, whereby there are initially a few businesses start-up or develop a technology of a certain industry, followed by other businesses to imitate and create rapid spread, when this industry develops and makes profits, the more businesses come to the area this area and form an industry linking cluster 1.2.4 The benefits of industry linking cluster Synthesize the researches of Porter (1990, 2000b, 2008), Krugman (1991), Granovetter (1985), Uzzi (1997), Rosenfeld (2002b), whereby: Industry linking clusters create strength for businesses, increase production efficiency due to reduction of costs, cohesion in social relations, promotion of innovation - creativity, due to dense concentration of businesses, high competitive pressure thereby promoting innovation, improving skills and labor productivity 1.3 Identification of traditional craft villages and industry linking cluster 1.3.1 Comparison of characteristics of traditional craft villages and industry linking cluster - Same: Enterprises, production and business establishments gather in geographical areas and have links, stimulating innovation and creativity - Different: Craft villages, although linked, are very loose; low competitiveness, little infrastructure development investment, difficult access to capital, the supporting industries are less developed Industry linking cluster is closely linked; high competitiveness, taking advantage of shared infrastructure, human resources, favorable access to capital, development supporting industries, many clear mechanisms and policies 1.3.2 Conclusion from industry linking cluster The traditional craft village is a primitive industry linking cluster, which has not been fully developed, and there are still many problems to develop to complete Therefore, for the craft village to develop sustainably in accordance with the current integration period, it is imperative to develop the craft village in the direction of industry linking cluster 1.4 Sustainable development of traditional craft villages according to industry linking cluster 1.4.1 Development concept Development is an evolutionary process of every society, every ethnic community in which the movement moves in the upward direction from low to high, from simple to complex, from less perfect to more perfect The new born replaces the old one, the modern replaces the outdated 1.4.2 Sustainable Development The development meets current requirements, but does not hinder for meeting the needs of future generations 1.4.3 Sustainable development of craft villages in the direction of industry linking cluster Sustainable development of the craft village in the direction of the industry linking cluster is to ensure the continuous, stable and long-term high economic growth of the industry linking cluster, enterprises in the industry linking cluster rationally and efficiently use resources, contribute to the implementation of social responsibility and protect the environment inside and outside the cluster 1.5 Overview about research situation relating to the topic 1.5.1 Researches in the world There are many researches in the world related to craft village development such as Das and Das (2011), industry linking cluster theory is used to study handicraft village industry cluster in Barpeta, India; Researches of Roostika, Wahyuningsih, and Haryono (2015), assessing the impact of competitive factors on the handicraft industry in Bantul, Yogyakarta Indonesia; and many studies by Sakata (2010), the authors Nguyen, Nguyen, and Vo (2013) evaluate OVOP (One Village One Product); Researches by Ardhala, Santoso, and Sulistyarso (2016) on craft villages in the Indonesian city of Mojokerto; Research by Taylor and Adelman (2006) has outlined the factors affecting the development of craft villages 1.5.2 Researches in Viet Nam related to craft village linking cluster According to Nguyen Thi Nguyet (2015), assessing the possibility of linkages to study sectoral and interdisciplinary relationships 1.7.3 Competitive advantage According to Porter (1990a), competitive advantage is what makes a business stand out, while other competitors could not implement 1.7.4 Innovation According to Wang and Pervaiz (2007), Björkdahl and Börjesson (2012), innovation is the ability that businesses have to turn creative ideas that combine input resources into products that match the needs of the market 1.7.5 State policies and mechanisms According to Nguyen Binh Giang and Pham Thi Thanh Hong (2015), industry linking cluster policies are state and local government initiatives to promote industry convergence 1.8 Summary of Chapter From the basic theoretical basis of industry linking cluster, craft village development, the author has analyzed and built the conditions for developing traditional craft villages in the direction of industry linking cluster, contributing to effective and sustainable development the traditional craft villages in the process of international integration CHAPTER 2: RESEARCH DESIGN 2.1 Approach method 2.1.1 Participatory Approach Participatory approach is used throughout all stages and contents of the topic such as: survey, investigation, analysis and assessment of the current situation and development of solutions with the participation of all stakeholders 2.1.2 Approaching the industry linking cluster through the value chain of handicraft products In the product value chain, each stage is a link and there are many links in the same chain Analyze and evaluate the level of linkage in production between the stages in the chain from input to production to the final stage to the consumer 2.1.3 Approaching in the field of economy, society and environment Approach on all three fields of economy, society and environment to comprehensively assess the craft village and propose appropriate solutions to develop the craft village 2.2 Research process 11 Consists of steps: (1) General research and theoretical foundation build; (2) Conduct preliminary research by qualitative method; (3) Practical research; (4) Analyzing and processing information for research; (5) Propose orientation and solutions 2.3 Research methods 2.3.1 Data collection methods - Secondary information are implemented by steps of defining the research problem; Identify data and information to be collected; Locate the source of information; Information evaluation; Use information - Primary information is carried out through surveys of relevant subjects in the craft village such as enterprises, production facilities and related stakeholders - Develop a questionnaire in addition to the general parts, there are sections related to each research problem 2.3.2 Research methods The research was carried out in two steps: preliminary research and formal research Preliminary research was carried out by using documentary research methods, observation techniques and in-depth interviews and group discussions The study was formally carried out by quantitative methods with primary and secondary data sources, descriptive and comparative statistical methods for analysis with the use of evaluation criteria of each factor affecting the quality of life, sustainable development of craft villages 2.3.3 Questionnaire design On the basis of research; Summary of criteria for evaluating the development of craft villages to build a questionnaire system suitable to the research problem 2.4 Summary of chapter Presentation on research approach, research process and research methods CHAPTER 3: DEVELOPMENT STATUS OF NUOC TRADITIONAL STONE CARVING VILLAGE 3.1 Overview of the craft village 3.1.1 The formation and development of Non Nuoc traditional Stone Carving Village Non Nuoc traditional Stone Carving village has a history of development over 400 years Currently, the craft village is thriving with 12 more than 550 production facilities/enterprises with more than 4,000 employees and is planned into a concentrated production cluster with an area of 35.5 hectares in Hoa Hai ward Products of the craft village are not only present everywhere in the country but also exported to many countries around the world, contributing greatly to the local economy 3.1.2 Position and roles of Non Nuoc traditional Stone Carving Village Non Nuoc traditional Stone Carving village plays a very important role in the socio-economic development and pride of Ngu Hanh Son district and Da Nang city Craft villages not only create jobs for people in locality and surrounding areas, but also become attractions for domestic and foreign tourists when coming to Marble Mountains 3.2 Analyzing the development situation of Non Nuoc traditional Stone Carving Village in the investigation establishments 3.2.1 Evaluation of the scale of production and business in craft villages Synthesizing, analyzing and evaluating the statistical data on the number of workers, the number of concentrated production establishments in the craft village today; Information on the capital scale of production and business activities of craft village production establishments is also evaluated and compared with the common benchmark in the district and Da Nang city 3.2.2 Evaluation of human resources in craft villages Assessing the quality of human resources, including establishment owners and workers in craft villages on their educational qualifications, vocational skills as well as training and retraining for the workforce in the craft village today; Besides, it also evaluates and compares the average monthly income of workers in the craft village with the general average income in the district and city 3.2.3 Evaluation and assessment of the situation of investment plans in machinery and equipment to improve models Evaluation of the annual investment plans for machinery and equipment for production of production facilities in the craft village, improvements in designs, diversification of craft village products as well as advantages and disadvantages in the implementation process 3.2.4 Raw materials and product consumption markets of business establishments in craft village Raw materials for production of business establishments such as sources of supply, purchasing methods and product consumption markets of craft villages are analyzed in detail to see the overall picture of inputs 13 and outputs of craft village 3.2.5 Assessment of difficulties in the production and business process of establishment in craft villages The survey results assess the current situation at Non Nuoc traditional Stone Carving village which currently facing many difficulties and inadequacies that need to be solved such as: difficulties in human resources; difficulties in cooperation and association in craft villages; difficulty in capital for production; difficulties in the supply of inputs; difficulties in accessing science and technology; salary difficulties; difficulties in improving skills for workers; environmental treatment difficulties; inadequacies in infrastructure 3.2.6 Actual situation of building a linking chain of tourism craft villages Analyzing the advantages of tourism with the geographical location of the craft village formed and developed in association with the Ngu Hanh Son relic site, the advantages of the craft village that are close to the major tourist attractions of Da Nang and Hoi An On that basis, the author assesses the advantages and disadvantages in building a linking chain of tourism craft villages today 3.2.7 The State's mechanisms and policies affecting the production and business activities of enterprises in craft villages 3.2.7.1 Policy on plan of building and development of craft villages In recent years, the policy of craft village development has been paid attention; the state has invested in building an industrial cluster of a trade village with an area of 35.5 hectares at the location adjacent to Hoa Hai and Hoa Quy wards, Ngu Hanh Son district to gather production establishments into the craft village 3.2.7.2 The organization and management of the craft village Although the city and local authorities have concerned about the organization and management of craft villages over the past time, the quality of coordination among agencies and units in supporting craft villages still has shortcomings leading to not high quality, many difficult problems of the craft village cannot be solved 3.2.8 Some of the environmental and social impacts of craft village development 3.2.8.1 Social impact - Solve jobs for employees 14 - Creating income for employees The survey results on the income of employee working at production establishments in craft villages in the period 2017 to 2019 with a very high income, on average from 7.5 million VND/month to nearly 9.8 million dong/month 3.2.8.2 Impact on the environment Wastewater pollution; noise and air pollution problems: at a high level with the average score for the level of air and noise pollution of production and business establishments in the craft village with a very high rating of 4, 39 ĐTB/5 and 4.44 DTB/5, showing the very pollution level at present in the craft village; Solid waste pollution, inadequate infrastructure for craft villages 3.3 The status of assessing the conditions for developing traditional craft villages in the direction of sustainable industry linking cluster 3.3.1 For the centralized accumulation of production of enterprises The regional similarity LQ >1, therefore, the current craft village has a high concentration of industry linkages and is the basis for affirming the potential of forming an industry linking cluster at Non Nuoc traditional Stone Carving village 3.3.2 The connection of craft villages with the product value chain In the average rating scale, there are rating points such as: the linkage between the manufacturer and the traders (customers who consume products) with a rating of 3.37 average score/5; Linkage between equipment suppliers, the rating score is 3.09 average score/5; Linkage between service providers, the rating score is 3.03 average score/5 The price evaluation at a fair level includes the relationships: Linkage between the manufacturer and the equipment supplier, the rating score is 3.69 average score/5; Linkage between manufacturers and service providers (transportation, cargo insurance, packaging, banking, electricity, information, ), the rating score is 3.74 average score/5 These are the two highest scoring levels in the survey These relationships need to be further promoted in the coming time 3.3.3 The current situation of competitive advantages of enterprises in craft villages Survey results assess the level of competitive advantage of enterprises in the craft village such as the cost of the business when producing products, with an evaluation score of 2.49 average score/5, this rating is low This shows that the higher and higher the cost when production affects 15 competition in the market The scores for assessing the input conditions of enterprises in the craft village are at a specific weak level: the capital assessment score is 2.57 average score/5; raw materials score 2.56 average score/5 It shows the difficulty of capital and raw materials in the production process However, in addition to other competitive advantages such as infrastructure of 3.5 average score/5, evaluation of the difference is 3.55 average score/5, human resource price is 3.46 average score/5 That proves that the current craft village enterprises have a competitive advantage in human resources, infrastructure and the difference 3.3.4 Innovation situation Innovation in the craft village has rating from 2.49 average score/5 to 3.62 average score/5 The level of product innovation of enterprises in the craft village with the highest score in the innovation items is 3.62 average score/5 That proves that the products of Non Nuoc traditional Stone Carving Villages are always innovated and developed to meet the needs of rich customers today However, the scores assessed in the process of production methods 3.30 average score/5; innovation in market exploitation 3.23 average score/5; innovation in marketing method 2.63 average score/5 is average, so it needs more attention in the coming time 3.3.5 Situation of state policies and mechanisms The evaluation results show that the level of impact of laws and policies on the development of craft villages is only average with a rating of 2.65 average score/5 to 3.02 average score/5 This shows the limited impact of the policy on craft villages 3.4 Conclusions drawn from the assessment of conditions for the development of traditional craft villages in the direction of sustainable industry linking cluster 3.4.1 Evaluate the centralized accumulation of enterprises in a geographic area 3.4.1.1 Strengths In addition, through analysis of the survey by the formula for calculating the similarity of LQ region and accordingly with LQ = 1,102>1, the ability to concentrate on industry linkage helps the craft village to develop in the direction of sustainable industry linking cluster 3.4.1.2 Threats 16 The arrangement of businesses into production still has many shortcomings such as the limited area divided for factory construction, affecting the production process for businesses 3.4.2 Assessing the linkage according to the value chain of craft village products 3.4.2.1 Strengths Linkage leads to convergence of businesses in the same industry in a geographical area Economic linkages between businesses are of great benefit to all stakeholders, including businesses and the community The linkage between management agencies will help support craft villages to have better support in the development process 3.4.2.2 Threats The level of linkage between entities in the craft village is still loose; many linkages are very weak, leading to difficulties in the production and business process The linkage between state management agencies has been paid little attention; so many policies to support trade villages have not been specifically implemented, leading to low effectiveness 3.4.3 Evaluation of competitive advantages in the current craft village 3.4.3.1 Strengths Non Nuoc traditional Stone Carving Village is planned in a concentrated production area, so it has many advantages in reducing production costs because its proximity to geography creates economic advantages thanking to its scale, helping to reduce production costs, strengthening linkage, and sharing information and other resources Small and medium enterprises in the craft village will have the opportunity to access investment capital, investment markets and modern technology lines 3.4.3.2 Threats In addition to the existing and achieved strengths in the development of the craft village, there are still many shortcomings that affect the competitiveness of the craft village Capital constraints and rising costs are obstacles to the sustainable development of craft village enterprises 3.4.4 Evaluation of innovation 3.4.4.1 Strengths Non Nuoc traditional Stone Carving Village, with the particular 17 characteristics of handicraft products that is highly distinctive, the number of similar products is not much, so it requires the craftsmen to be creative in changing designs and decorative motifs 3.4.4.2 Threats In addition to the results achieved in innovation of enterprises in the craft village, there are still not good criteria, but only at an average level or less, the quality of output products of the craft village is still limited This is an obstacle to the development of craft village enterprises 3.4.5 Evaluation of policy mechanisms and state management 3.4.5.1 Strengths Assessments of the support in the general infrastructure are very good through the construction of industrial linking clusters of craft villages to gather businesses into concentrated production 3.4.5.2 Threats In addition to the positive aspects, there are also limited shortcomings such as lack of incentives, technology support, capital, taxes, and other services 3.5 Summary of chapter Comprehensive and in-depth analysis of the development situation of Non Nuoc traditional Stone Carving village in recent years, thereby identifying the favorable and difficult conditions in developing the craft village in the direction of industry linking cluster CHAPTER 4: ORIENTATION AND SOLUTIONS FOR DEVELOPING NUOC TRADITIONAL STONE CARVING VILLAGE IN THE DIRECTION OF SUSTAINABLE INDUSTRY LINKING CLUSTER 4.1 Development perspective To be suitable with the adjustment of the General Planning of the city; development of craft villages in the direction of synchronous and modern industrial clusters, development of craft villages in the direction of green growth, combined with protection of natural resources and ecological environment; development of craft villages in the direction of multicomponent development; develop in an open direction with linkages with many stakeholders; There are appropriate mechanisms and policies to support capital, technology, markets, brands, conservation and association support 18 4.2 The development orientation of Non Nuoc traditional Stone Carving Village to 2025 with a vision to 2030 4.2.1 Economic development orientation To develop craft villages in the direction of modernity combining tradition, improve productivity, product quality, brand name, diversify products, focus on developing according to the value chain of craft village products; associated with tourism development; 100% of production establishments that fully satisfy the conditions to be brought into the production zone of the practice village; 100% of the production factories of the facilities are built in accordance with the planning, synchronously and ensure the technical safety standards in production 4.2.2 Orientation for social development To develop craft villages in the direction of focusing on the material and spiritual life of workers, to adopt a treatment policy for long-time artisans and good workers, and to encourage them to provide vocational training and vocational transmission; Maintain and develop patriarch festival of craft village ancestors to enhance cultural values, promote products, promote and preserve the cultural identity of craft villages 4.2.3 Orientation on environmental protection Developing craft villages in association with environmental protection through completing technical infrastructure of craft villages, setting tax rates and environmental protection fees for individuals and organizations producing and doing business in craft villages and having policies reasonable to protect the village environment 4.3 SWOT matrix for industry linking cluster formation and development Non Nuoc traditional Stone Carving village The SWOT matrix creates a scientific argument for the orientation of the formation and development of Non Nuoc traditional Stone Carving village in the direction of industry linking cluster; Thereby finding out the Strengths, Weaknesses, Opportunities, and Threats of the current craft village, thereby building directions and solutions to promote strengths, take advantage of opportunities, overcome weaknesses and overcome threats as well as the challenge to form and develop the industry linking cluster for Non Nuoc traditional Stone Carving village in a sustainable way 4.4 Solutions to promote the formation and development of Non Nuoc traditional Stone Carving Village in the direction of sustainable industry linking cluster 4.4.1 Solutions to promote the accumulation and centralization of 19 enterprises in craft villages In order to soon form the centralized accumulation of production of enterprises in craft villages, it is necessary to implement the following solutions: - For state management agencies: soon improve the technical infrastructure of the concentrated production zone, overcome the inadequacies in infrastructure to attract businesses, and fine art stone production facilities are still located in residential areas in a craft village besides investing in a commercial area to display and introduce products - For craft village enterprises: it is necessary to integrate links to form large enterprises, cooperatives and production bases for stable development 4.4.2 Solutions to promote the development of linkage relationships according to the value chain of craft village products Focusing on developing the value chain of craft village products, linking the "links" in the chain must be very tight, linking vertically and horizontally, developing the chain in the direction of both ensuring production and diversifying products to serve the needs of the domestic and foreign craft village consumption market 4.4.3 Solutions to enhance competitive advantages for craft village enterprises Improving competitive advantages for craft village enterprises, focusing on developing human resources, raw materials, having capital solutions for production, technological solutions besides focusing on upgrading craft village infrastructure 4.4.4 Innovative solution - Enterprises need to innovate to survive and develop in the 4th industrial revolution, exploiting and using these scientific and technological achievements - Having policies to encourage craft village enterprises to innovate their production methods, in which innovating production technology and promoting the application of science and technology to improve the competitiveness of products, increasing productivity and reduce environmental pollution 4.4.5 Solutions on mechanisms, policies and management for craft village development - Inheriting and promoting the experience of developing a number of craft villages in the world and a number of craft villages in Vietnam, according 20 to which policies, the role of orientation and support of the State plays a very important role in the development of craft villages such as policies to support investment in craft village infrastructure, support policies on markets, capital, technology, taxes, etc 4.5 Other groups of solutions 4.5.1 Solution to protect the craft village environment Environmental protection of craft villages is an urgent issue for all levels of government and businesses - For the government: strengthen propaganda to raise awareness for the owners of production facilities/enterprises in craft villages to well implement the provisions of the Law on Environmental Protection, in addition to strengthen the management and supervision of state management agencies; - For enterprises: comply with regulations on environmental protection in the process of production and business, handle production waste in accordance with regulations, invest in replacing old, smuggled and polluting machinery with new, modern equipment, less polluted 4.5.2 Commercial and market solutions On the enterprise side: proactively approach market information, adjust production plans to suit the market, and diversify models, designs and types of products to meet the diverse and abundant needs of consumers, enhance e-commerce to promote as well as bring products to the farthest, most effective with the lowest cost On the side of state management agency: supporting craft villages with trade promotion policies, markets, and credit, tax incentives 4.5.3 Land policy Implement reasonable solutions on distribution and leasing of production premises in craft villages; tax exemption and reduction for establishments renting land in the first years of entering the craft village production zone; preferential land rent for establishments that have stable production and business in the concentrated production zones of craft villages to encourage these establishments to expand their production and business scale 4.5.4 Promoting the role of the craft village association Craft village associations play a very important role for craft villages, it supports members in the production and business process, on behalf of enterprises and craft village production establishments, in dialogue with 21 agencies and organizations, and protecting their interests; Craft village associations need to innovate to improve the quality of their activities to help craft villages develop 4.5.5 Solutions to build a linking chain of tourism craft villages Building a linking chain of tourism craft villages, it is necessary to implement many synchronous solutions such as planning to develop craft villages associated with tourism; Supporting human resource training, invest in tourism infrastructure; Organizing tours and tourist routes to craft villages associated with visiting historical and cultural relics; Promoting the promotion and promotion of craft village tourism, inter-sectoral and interregional cooperation in craft village tourism development 4.6 Summary of chapter Proposing different solutions for sustainable development of Non Nuoc traditional Stone Carving village in the direction of industry linking cluster CONCLUSION, PROPOSAL AND LIMITATIONS OF THE DISSERTATION CONCLUSION New contributions of the thesis: 1.1 Theoretical contributions - From theoretical research on clusters of industry linkages, based on agglomeration, to centralize businesses into geographical areas and territories, and to link vertically and horizontally between stages in the product value chain together with the inheritance of previous studies on craft villages to build a theoretical basis for the development of traditional craft villages in the direction of industry clusters, the thesis has clarified the nature, basic characteristics and roles of traditional craft villages The role of the formation and development of industrial clusters with the effective and sustainable development of enterprises in the value chain of traditional craft villages - Develop criteria and conditions for developing traditional craft villages in the direction of industry clusters to ensure sustainable development of craft villages The thesis has specified basic conditions that have a direct impact on the formation and development of clusters of trade villages: (1) The accumulation and concentration of enterprises by 22 geographical area; (2) The linkage along the value chain of craft village products; (3) Competitive advantage; (4) Innovation; (5) Mechanisms, policies and management of the state 1.2 Practical contributions Applying the basic theoretical problems of clusters of industry linkages in accordance with the characteristics of traditional craft villages, from analyzing the overview features of the development of the Nuoc Stone Carving Village, the thesis has come to an in-depth analysis of the current situation of accumulation and centralization of production by enterprises and production facilities in craft villages, the status of vertical and horizontal linkages between enterprises and production facilities businesses and related organizations in the craft village according to the value chain of craft village products Since then, the thesis has clearly assessed the needs, favorable premise conditions and obstacles in the process of sustainable development of craft villages in the direction of industry clusters On the basis of SWOT analysis, the thesis has clarified the scientific argument to orient the formation and development of the cluster of associations of Nuoc Stone Carving Village Propose some solutions to develop Non Nuoc traditional Stone Carving village in the direction of industry linking cluster (including solution groups) PROPOSALS 2.1 For People’s Committee of Ngu Hanh Son District Improving the management of craft villages in terms of environment and infrastructure, fully implementing the guidelines and policies issued by the State on craft village development; supporting to connect tourism with craft villages 2.2 For People’s Committee of Da Nang City Implementing many solutions to support the development of craft villages, giving priority to upgrading infrastructure in concentrated production clusters of craft villages; Having appropriate tax policies for production and business establishments/enterprises in craft villages; encouraging banks and credit institutions to have preferential loan packages for craft village establishments/enterprises to expand production, change technology, purchase raw materials, and promote trade; stimulating business initiatives, guiding and encouraging the formation of industry 23 linking clusters from their initiatives, and supporting infrastructure, finance, technology, training and consulting through long-term programs LIMITATIONS OF DISSERTATION - The dissertation has only researched the actual survey at Non Nuoc traditional Stone Carving village, has not researched extensively and deeply into many traditional craft villages in Vietnam - The research topic is still quite new and complicated, so the research results are inevitably limited Some contents have not been mentioned by the dissertation such as preserving and promoting the cultural values of craft villages 24 LIST OF PUBLISHED SCIENTIFIC RESEARCHES Phung Van Thanh (2019), Industry linking cluster solution to develop Non Nuoc traditional Stone Carving Village, Journal of Economics and Forecasting, No 12, 4/2019 Phung Van Thanh (2018), Development of Non Nuoc traditional Stone Carving Village in the direction of industry linking cluster, Journal of Economics and Forecasting, No 17, 6/2018 (693) Phung Van Thanh (2018), Research to develop cluster of Non Nuoc traditional Stone Carving Village, Journal of Asia - Pacific Economics, No 518, 6/2018 Phung Van Thanh (2019), Application of industry linking clusters theory to craft village development: research in Non Nuoc traditional Stone Carving Village, Journal of Asia - Pacific Economics, No 539, 4/2019 Phung Van Thanh, Nguyen Thi Bich Thuy (2016), Supply chain and stakeholder cooperation for craft stone products of Non Nuoc traditional Stone Carving Village, Da Nang, yearbook of the Conference on Science and Business Administration, Da Nang, October 2016 Phung Van Thanh, Pham Thi Lan Huong, Lê Thị Minh Hằng (2017), Industrial linking cluster theory applied in Non Nuoc traditional Stone Carving Village, yearbook of The 6th National Conference on Science and Business Administration, Da Nang, December 2017 Phung Van Thanh (2015), grassroots level science topic “Research and development of patriarch festival of Non Nuoc traditional Stone Carving Village” Department of Science and Technology - People's Committee of Ngu Hanh Son district 25