Business registration service quality at the department of planning and investment in hanoi

INTRODUCTION

Rationale

Business registration is the essential first step for every entrepreneur aiming to establish and operate a business in a specific area This process serves as the initial interaction between business owners and local government units (LGUs), marking the beginning of their entrepreneurial journey.

The Ninth Congress of the Party emphasized the State's role in fostering a favorable regulatory environment that promotes equality among businesses, enabling competition and collaboration for development This involves strategic planning and policies, alongside the State's physical efforts to guide economic and social growth, optimize resource utilization, ensure macroeconomic balance, and enforce legal compliance in business activities Since the introduction of the Company Law in 1991, along with subsequent laws on private enterprises and businesses, Vietnam has made significant strides in enhancing its investment climate, particularly by streamlining market entry procedures, which has greatly attracted investors.

In recent years, significant changes have been implemented in the management of State-Owned Enterprises (SOEs) to foster a more favorable business environment across all economic sectors Local Government Units (LGUs) have focused on enhancing business permit registration systems to better serve the business community and streamline operations.

Open investment environment has created conditions to increase continuously the number of businesses in the city over the years Specifically, for 5 years (2010-

2014), the number of registered enterprises was established by 85% compared to the total number of registered enterprises in the province after 18 years (from

1992 to 2009) with a registered capital increase more than 112% Businesses

Báo cáo thực tập tổng hợp have played a very important role in economic development - society of the City; every year, contributing 60% of gross average city's budget, year after year.

Hanoi always ranks the second in the country (behind Ho Chi Minh City) with the number of enterprises accounts for 1/5 of registered businesses in the country.

Table 1-1: The Number Of Enterprises From 2012-2014

Time The number of enterprises in Vietnam

The number of enterprises in Hanoi

The proportion of the number of enterprises in Hanoi among country

In 2014, Hanoi has now registered 14 656 new establishment, down 1.4% on the number of businesses over the same period last year.

The Department of Planning and Investment in Hanoi aims to enhance the quality of business registration services to increase satisfaction among businesses To achieve this, it is essential to identify the criteria that define high-quality service in business registration This study focuses on exploring the key components of service quality at the Department to effectively evaluate customer satisfaction levels.

The theme: “Business registration service quality at the Department of Planning and Investment in Hanoi” has been chosen to be my thesis topic.

Báo cáo thực tập tổng hợp

Research Objectives

In order to propose solutions of “Business registration service quality at the

Department of Planning and Investment in Hanoi”, the thesis focuses on the following objectives:

 To identify the dimensions to evaluate the business permit registration service quality at the Department of Planning and Investment in Hanoi

 To analyze the current situation of service quality at the Department of Planning and Investment in Hanoi; find out and narrow the gap between customers’ perception and expectation

 To propose solutions and recommendation in order to enhance the service quality of business permit registration.

Research Question

Based on the above research objectives, this research has been designed to answer the following questions:

What are the dimensions affecting service quality perceived by customers?

How is the current situation of business permit registration service quality at the Department of Planning and Investment in Hanoi? What are the gaps and causes of service quality?

How to improve customers’ satisfaction and service quality of business permit registration at the Department of Planning and Investment in Hanoi?

Research Methodology

This thesis employs primary research methods, utilizing questionnaires distributed to actual customers to gather data The majority of the questions are based on a previous theoretical framework Subsequently, the collected numerical data will be analyzed using mathematical and computational techniques.

Excel to see how impact each factor has on Service Quality of Business registration at the Development of Planning and Investment in Hanoi

Data is sorted and analyzed by using Excel so as to carry out necessary calculations, comparisons and statistical analysis.

Secondary data is collected from diverse sources, including organizational reports, academic studies, authorized books, and newspaper articles, all pertinent to service quality and business permit registration Additionally, information from the official website of the Department of Planning and Investment in Hanoi, along with other relevant research, is utilized and cited at the conclusion of this study.

Primary data: It is obtained through two ways included questionnaire survey and in-depth interview.

The participants in this study were customers who have engaged with various enterprises and have utilized the business permit registration services offered by the Department of Planning and Investment in Hanoi.

Sample size: The survey was designed to interview with a sample size of 56 respondents.

The questionnaire design incorporates a blend of structured and open-ended questions, utilizing a Likert scale with five dimensions to assess quality This quantitative research method allows respondents to express their opinions numerically, ranging from 1 (Strongly disagree) to 5 (Strongly agree) Consequently, each segment evaluates customer expectations and satisfaction on a scale of 1 to 5, facilitating effective feedback collection.

The comprehensive internship report utilizes data from a questionnaire to analyze the gap between customer perceptions and expectations regarding the quality of business permit registration services at the Department of Planning and Investment in Hanoi The collected survey data will be analyzed using Excel and various methods, including calculations, comparisons, and statistical analysis This analysis will result in the creation of charts and graphs, leading to conclusions presented in Chapter III.

Meanwhile, open questions in the questionnaire also carry out in-depth information about customers’ expectation and some solutions to enhance the service quality, which is mentioned in Chapter IV.

The article presents in-depth interviews conducted with five key individuals from the business registration department at the DPI in Hanoi, comprising one Management Director, one Deputy Director, and three senior officers.

Interviews are conducted to gain in-depth insights into analytical findings and business registration policies, with the goal of enhancing service procedure efficiency.

Table 1-1: List Of Interviewees At The Department Of Planning And

Investment In Hanoi Measurement Interviewee’s Profile Information

Mrs Pham Thi Kim Tuyen, Director of the Department of business registration

- Verifying the information of business registration service

- Factors affecting customers’ service quality of the Department based on 5 dimensions of SERVQUAL model

- Current situation of business permit registration at the Department of Planning and Investment in Hanoi

- Solutions to improve to business permit registration service quality

Mrs Le Hong Hanh, Deputy Director of the Department of business registration

Mr Do Tuan Anh, officer of the Department of business registration

Mrs Nguyen Bich Ngan, officer of the Department of business registration

Mrs Nguyen Ngoc Dung, officer of the Department of business registration

Figure 1-1: The Process Of Conducting Survey

Research Scope

- Subject: Business permit registration service quality at the Department of Planning and Investment in Hanoi

- Location: the Department of Planning and Investment in Hanoi

- Primary data is collected in 2015

- Secondary data is collected from 2012 to 2015

Research Structure

Chapter 2: Theoretical background of business registration service and service quality

Chapter 3: Findings on business registration service quality at the Department of Planning and Investment in Hanoi

Chapter 4: Recommendations for improving business registration service quality at the Department of Planning and Investment in Hanoi

THEORETICAL BACKGROUND OF BUSINESS

Basic concept

Service represents the human effort embodied in the value of outcomes or intangible products that cannot be physically held Unlike tangible goods, services are non-material equivalents that generate benefits by facilitating change in customers, impacting their physical possessions and intangible assets According to Kotler (1999), a service is defined as “an act of performance that one party can offer to another, which is essentially intangible and does not result in ownership of anything; its production may or may not be linked to a physical product.”

Lovelock and Gummerson (1980) define services as economic activities provided by one party to another, focusing on time-based performance to achieve desired outcomes for recipients or their assets Customers invest their money, time, and effort with the expectation of receiving value through access to goods, labor, professional expertise, facilities, networks, and systems.

A service is an intangible activity or series of activities that typically occurs through interactions between customers and service providers, involving employees, physical resources, or systems These services aim to address and solve customer problems effectively.

According to ISO 8402, the service is the result generated by the action between the supplier and the customer and the suppliers’ internal operations to meet customers’ needs.

A service is intangible and perishable It is an occurrence or process that is created and used simultaneously or nearly simultaneously While customer could

Báo cáo thực tập tổng hợp not retain the actual service after it is produced, the effect of service could be retained (Olsen, and Wykoff, 1987).

To be able to correctly fine out what service quality is, we should start with the definition of quality:

“Quality consists of the capacity to satisfy wants” (Edward, 1968)

“Quality is fitness for use” (Juran, 1988)

“Quality is a driving force for improved competitiveness, customer satisfaction, and profitability” (Edvardsson, 1992)

Measuring service quality has long posed a challenge for scholars and business practitioners due to the intangible nature of service activities The definition of service quality can differ significantly depending on individual perspectives and specific contexts This research aims to explore various concepts of service quality from multiple viewpoints, providing readers with a comprehensive understanding of the topic.

Quality, as defined by Crosby (1984), is the conformance to requirements, emphasizing a technology-driven and product-oriented approach To achieve quality, organizations must establish criteria that govern the performance of their products, ensuring functionality with minimal defects Once these specifications are defined, all manufacturing processes must adhere strictly to these standards.

Customer-perceived quality emphasizes that quality is defined by the customer's perspective According to the American Marketing Organization, service quality is characterized by delivering services that meet or surpass customer expectations Customers evaluate service quality based on both the outcomes and processes of the service, alongside a comparison to their initial expectations.

The internship report on service performance highlights that service quality is defined as the alignment between the current service level and customer expectations Additionally, various definitions exist that focus on different methods of measuring service quality.

The overall assessment of a service firm arises from comparing its performance against the general expectations customers hold for industry standards This evaluation framework, established by Parasuraman, Zeithaml, and Berry in 1988, highlights the importance of meeting or exceeding customer expectations to achieve satisfaction in the competitive service sector.

“The outcome of a process in which consumers’ expectations for the service are compared with their perceptions of the service actually delivered”- Mangold and Babakus (1991)

“A consumer-generated comparative judgment, since individual have no implicit sense of quality unless a standard of comparison is provided”- Oliver (1997)

“The result of the consumer’s comparison of expected service with perceived service”- Bojanic (1991)

“Quality is the extent in which the service, the service process and the service organization can satisfy the expectations of the users”- Kasper, van Helsdigen&dVris (1999)

“A key competitive advantage for modern business firms”- Gronroos (2000), Kotler and Keller (2006)

“Consumer’s overall impression of efficiency of an organization and its services”- Park et al (2004)

Business Registration Service

2.2.1 Definition of Business registration Service

The registration procedures evaluated by state administration bodies have significantly improved Vietnam's business environment These mandatory administrative steps are essential for businesses and traders to comply with governmental requirements, ensuring effective business management.

Báo cáo thực tập tổng hợp public business is only considered legitimate in this country if this enterprise has local business license.

To set up one of the four types of enterprises—limited liability companies, joint stock companies, private enterprises, or partnerships—investors must complete the business registration process with the appropriate agency in the provincial city where the business will be headquartered.

Business registration and tax registration are essential components of establishing an enterprise under the Enterprise Law This process encompasses the formation of new registered businesses as well as the submission of updated registration information.

The primary challenge in reforming business registration is to shift perceptions about its role, ensuring it aligns with practical needs and optimal direction Although commonly understood as "the recognition of the legal existence of the enterprise" by state agencies, this definition inadequately captures the comprehensive functions of business registration within a market economy Business registration not only involves completing procedures for establishing new businesses but also includes updating and maintaining information about existing enterprises Furthermore, it plays a crucial role in storing and providing data to meet the informational needs of both public authorities and businesses, thereby facilitating a better understanding of business dynamics within the economy.

Business registration in Vietnam can be completed through two methods: first, by submitting applications directly to the relevant authorities for filing and registration; and second, via an electronic network, which utilizes advanced scientific and technological methods to streamline the registration process in state administration.

The comprehensive internship report highlights the modifications to the business registration form, designed to streamline administrative procedures for businesses This initiative aims to facilitate quick and flexible registration processes, ultimately reducing costs and saving time for both investors and employees involved in enterprise record management.

2.2.2 Characteristics of Business Registration Service

Business registration involves activities that do not directly generate material goods or services for profit, serving as the initial step for entities to engage in business and production activities During the registration phase, entities are not actively operating or generating income; however, the costs associated with the registration process are considered reasonable business expenses and can be deducted when calculating taxes.

- In terms of state management

Registering your business is essential for effective economic management by the state This initial step lays the groundwork for the government to oversee and support business operations, ensuring a structured approach to production and economic activity.

Registration is a fundamental aspect of democratic freedoms, emphasizing the importance of freedom, democracy, and equality before the law It empowers citizens with the right to choose their business line, form, size, and location, as well as to recruit and manage labor Every individual or organization eligible for business can register with the state to engage in lawful business and production activities, ensuring that no one can unjustly hinder this right.

Business registration establishes a legal relationship between a business entity and the relevant state agency responsible for issuing the business registration certificate This certificate is a crucial legal document that formally recognizes the existence of a business entity and its operations, following the appropriate legal procedures The administrative and judicial aspects of business registration are evident in various ways.

To obtain or modify business registration certificates, entities must follow the legal procedures for business registration, including submitting the necessary documents and notifying relevant state agencies of any changes State agencies are responsible for reviewing these documents to determine if they meet legal requirements for approval or denial of the business registration certificate This process must adhere to established steps and timelines as mandated by law.

Upon receiving the certificate of business registration, a business entity officially announces its establishment to traders, gaining recognition and legal status from the State This marks the beginning of the entity's full legal capacity, allowing it to engage in economic, civil, and other legal relations under its own name.

Model for measuring service quality

Customer satisfaction, as defined by Kotler (1991), refers to an individual's emotional response—either pleasure or disappointment—derived from comparing the perceived performance of a product with their expectations Essentially, it reflects the service level delivered in relation to what customers anticipate receiving Customer satisfaction can occur in two scenarios: when the actual results meet or exceed customer expectations.

Customer satisfaction is closely linked to service quality, despite being distinct concepts; service quality is an objective measure, while customer satisfaction is a subjective experience When service fails to meet expectations, customers are unlikely to be satisfied.

Zeithaml et al developed a research model based on the SERVQUAL framework to explore the connection between service quality and customer satisfaction This model utilizes customer survey results to evaluate satisfaction levels across five key dimensions: Tangibles, Reliability, Empathy, Responsiveness, and Assurance.

(Source: Valarie A.Zeithaml, A.Parasuraman, Leonard L.Berry, 2010)

2.3.2 SERVQUAL Model (Parasuraman et al, 1985)

Service quality, as defined by Parasuman et al., refers to the gap between customers' expectations and their actual perceptions of the service received The authors introduced the SERVQUAL model to assess this service quality by measuring the discrepancies between what customers anticipate and what they ultimately experience.

SQ i : Perception of overall service by Customer No.i k: Number of attributes of service quality

P ij : Perception of attributes j of the service by Customer No.i

E ij : Expectation of attributes j of the service by Customer No.i

P ij , E ij are assessed by Likert scale from 1 to 5 referring to quality levels from

“Very bad” to “Very good”.

P kJ ; E kJ : Average value of Perception and Expectation relatively of all customers asked about attribute j in criteria k of the service (k=1 to 5)

Table 2-1 Dimensions and attributes to measure service quality

Dimensions Meaning Numbers of attributes

Ability to perform the promised service dependably and accurately

Appearance of physical facilities, equipment, personnel, and communication materials

Willingness to help customers and provide prompt service 4

Caring, individualized attention the firm provides its customers

Knowledge and courtesy of employees and their ability to convey trust and confidence

The developed service quality model determines five gaps between customers and providers.

Figure 2-2: Servqual Model To Assess Service Quality

(Source: A.Parasuraman, Leonard L.Berry and Valerie A.Zeithaml, SERVQUAL:

A multiple – Item Scale for Measuring Customer Perceptions of Service Quality)

Gap 1: The discrepancy between consumer expectations and management perceptions of consumer expectations

To exceed customer expectations and ensure satisfaction, service company management must accurately understand customer needs A misalignment between customer expectations and the service provider's perception can create significant gaps Consequently, service providers often rely on subjective guesses from limited surveys or the observed behaviors of customers to inform their services.

Gap 2: The discrepancy between management perception of customer expectation and service quality specifications

Managers must ensure that their organization clearly defines the necessary level of service to meet customer expectations Even with a correct understanding of these expectations, there remains a risk of customer dissatisfaction due to potential gaps in planning service quality Additionally, not all customer expectations can be effectively translated into quality specifications.

Gap 3: The discrepancy between service specifications and the actual service delivered

Customer dissatisfaction can arise from inadequately specified quality service, often due to an incompetent workforce and inefficient working conditions Additionally, factors such as customer experience, attitude, and cooperation contribute to this gap in service quality.

Gap 4: The discrepancy between service delivery and external communication

The disparity often arises from employee capabilities and their experience in selecting services, resulting in a mismatch between the actual service delivered and customers' expectations shaped by advertising.

Gap 5: The discrepancy between customers’ actual expectation and their perceptions of the service delivered

The gap between customer expectations and perceived service quality often leads to dissatisfaction in the service sector This discrepancy arises when customers compare their anticipated experience with the actual service received, highlighting a significant challenge for businesses aiming to enhance customer satisfaction.

Zeithaml & Parasuraman mentioned 4 factors in shaping customers' expectations:

Word-of-Mouth: is the first factor that potentially determines customers' expectations, is the word he or she heard from other costumers;

Personal needs: is the second factor that modifies customers' expectations, is obtained as a result of a particular situations and requirements;

Prior experience: is the third factor that influences customers' expectations, which indicate the way the customers has experience prior service received;

Advertisement and personal experience significantly influence customers' expectations, representing a crucial factor known as external customers These communications encompass all direct and indirect messages conveyed from the supplying organization to its customers.

There were 10 elements for determining quality in service sector:

2.3.3 SERVPERF Model (Cronin and Taylor, 1992)

The SERVPERF model, introduced by Cronin and Taylor in 1992, focuses on measuring service quality through consumer perceptions rather than expectations Unlike SERVQUAL, which evaluates both perceptions and expectations, SERVPERF exclusively assesses the performance of service delivery, emphasizing the importance of perceived quality in consumer satisfaction.

The following model would describe SERVPERE model:

SQ i : Service quality perceived by customer No.i

K: Number of attributes of the service

The SERVPERF scale offers significant methodological advancements over the SERVQUAL scale, reducing measurement items by 50% and demonstrating a superior ability to explain variance in overall service quality through single-item scales By concentrating on customers' perceptions of quality instead of their expectations, the SERVPERF model allows for a more direct evaluation of service quality based on customer feelings Although it may not be as widely recognized as SERVQUAL, the SERVPERF model is supported by numerous researchers, including Bolton & Drew (1991), Babakus & Boller (1992), and Boulding et al (1993), highlighting its advantages in assessing service quality.

Service quality assessment models are essential for businesses aiming to meet customer needs while maintaining economic competitiveness By enhancing service quality, organizations can boost their competitive edge in today's dynamic market Consequently, service organizations continuously strive to improve their offerings to succeed.

The report on internship practices emphasizes the importance of delivering exceptional customer service by enhancing operational processes, swiftly identifying issues, and implementing reliable performance metrics to gauge customer satisfaction Utilizing the SERVQUAL model proposed by Parasuraman et al (1985), the author introduces a framework to evaluate the service quality of business registration at the Department of Planning and Investment in Hanoi.

Factors affecting Business Registration Quality

2.4.1.1 The development of economic, cultural and socio - provinces / cities and the trend of international integration

Local economic growth drives business expansion by fostering infrastructure investment and progressive management practices This development creates favorable conditions for state agencies to implement supportive policies for businesses Consequently, citizens and businesses gain easier access to these benefits, including valuable information from state agencies to effectively plan their growth strategies Overall, economic growth rates serve as a key indicator of this dynamic.

Reliability Responsive ness Empathy Assurance Tangibles

The report on internship highlights the economic development trends that affect the ability of companies to expand or contract their business scope During periods of robust economic growth, businesses encounter numerous investment opportunities that facilitate the expansion of production and operational activities Conversely, in a declining economy, companies are compelled to cut costs, leading to reduced consumption and heightened competitive pressures.

The trend of international economic integration and globalization necessitates a reevaluation of government management methods for business registration This presents an opportunity to enhance international cooperation and learn from global best practices, ultimately leading to effective and coherent solutions However, it also introduces challenges and complexities in the management of state business registration.

2.4.1.2 Other organizations relate to business registration

Consulting organizations play a crucial role in business registration by offering guidance and support to individuals and entities, including law firms and consulting firms Their legal advisory services significantly enhance understanding and compliance with business registration regulations In regions with robust company growth, these consulting services positively influence the effectiveness of the registration management process.

Media agencies, including radio, television, and print, significantly influence the state management of enterprise registration They play a crucial role in promoting societal engagement and facilitating support for state management agencies in overseeing business information By consistently disseminating information about business registration laws, these organizations ensure that businesses, organizations, and individuals remain informed and compliant with regulatory requirements.

Service quality is heavily influenced by the technology and information processing capabilities of a system Advanced technology enables the production of high-quality products, while the rise of information technology enhances the efficiency of business registration processes The adoption of electronic registration methods offers numerous advantages, significantly reducing the time and costs associated with these procedures This innovative approach allows individuals to access reliable and legitimate business information quickly and conveniently.

Capacities and attitudes of staff leadership and civil servants

Civil servants, particularly those involved in business registration and state management for enterprises, play a crucial role in shaping and executing policies and legislation Their expertise and personal attributes significantly impact the effectiveness of state management Consequently, it is essential for team leaders and officials overseeing business registration to possess scientific thinking, the ability to apply research, a thorough understanding of state law policy documents, practical experience, and a strong foundation in the field.

In addition to self-study, continuous education and skill enhancement are essential for state officials Regular assessments of their capabilities and expertise are necessary for effective management Consequently, management bodies should appoint civil servants to participate in training courses and seminars aimed at sharing practical experiences Furthermore, officials must actively cultivate their political awareness to avoid subjective decision-making, authoritarianism, and corruption in their work.

FINDINGS ON BUSINESS REGISTRATION SERVICE

OVERVIEW OF DEPARTMENT OF PLANNING AND INVESTMENT

Address: 16 Cat Linh Street, Hanoi

Email: duongdaynong_sokhdt@hanoi.gov.vn

Website: www.hapi.gov.vn

3.1.2 Office of Planning and Investment in Hanoi

Decision No 13/2014, issued by the Hanoi People's Committee on March 7, 2014, outlines the functions, tasks, powers, and organizational structure of the Department of Planning and Investment (DPI) in Hanoi The DPI is responsible for advising the People's Committee on state management related to planning and investment, which encompasses general planning and economic and social development plans Its duties include implementing and proposing policies for economic and social management, overseeing domestic and foreign investments, managing Official Development Assistance (ODA) and concessional loans, handling tender management, and business registration within the city Additionally, the DPI is tasked with the synthesis and unified management of business matters, including both collective and private economies, as well as overseeing organizations providing public services under its jurisdiction, while executing other responsibilities assigned by the Hanoi People's Committee in accordance with the law.

Figure 3-1 Organizational structure of the department of planning and investment in hanoi

Currently, the organizational structure of the Department of Planning and Investment include Department Directors (directors and 05 deputy directors), has

Director of Department Director of Department

Commercial industrial and service Room

Agriculture and rural development Room Agriculture and rural development Room

Cooperation and international funding Room

The department comprises 14 rooms and 2 business units, employing a total of 273 staff members, with 48% being female Notably, 92.2% of employees hold bachelor’s or master’s degrees, and 55% are party members The average age of the workforce is 38 years.

Units of the Department in carrying out the tasks related to business registration:

In performing the task of administrative reforms, receiving administrative records (including records business registration):

The Director is advised to implement effective control and administrative procedures for receiving and addressing feedback and recommendations from individuals and organizations regarding administrative regulations within the jurisdiction of the Departments, in accordance with current regulations.

The implementation of the "one stop shop" aims to streamline administrative procedures under the Department's jurisdiction, allowing for efficient reception and settlement of administrative records.

Chaired synthesis report on the settlement of municipal administrative procedures (weekly, monthly, quarterly service request preliminary review and other requirements of the Leadership Department);

Organizations must enhance administrative reform efficiency by implementing solutions that improve the quality of information reception and processing for citizens and businesses This can be achieved through various channels, such as hotlines and direct suggestion boxes, ensuring that the Department effectively addresses feedback and concerns.

Implementing of the fram - Archives of Department: Receiving, revising, classification and systematization of records, document archive.

Scheduling archive preservation prescribed: Explosion-proof, moisture and insect ;

To enhance the efficiency of business registration processes, it is essential to revise current registration dossiers and effectively utilize archived data This requires a stronger emphasis on the application of information technology, which will facilitate the management and operation of IT systems across the Department By integrating these technological advancements, we can streamline daily record-keeping and improve overall service delivery.

Effective management and maintenance of application software on the intranet is essential for the timely delivery of professional services This includes overseeing the Electronic Portal and the Electronic Information page of the Department Additionally, it is crucial to coordinate with various departments and centers to ensure that all information related to planning and investment, as mandated, is accurately published on their respective websites.

The Office of the Department employs 16 officials in the One Stop Service (OSS) team, responsible for managing business registration documents This team includes a deputy director who serves as the OSS head, along with one hosting staff member and two information technology specialists.

The Inspectorate Department plays a crucial role in supporting the Director with administrative and specialized inspections within its jurisdiction It is actively involved in overseeing business registrations, ensuring compliance with corporate reporting obligations, and addressing any violations related to business registration processes.

Center for Support of Small and Medium Enterprises in Hanoi:

Center for Support of Small and Medium Enterprises Hanoi (hereinafter referred to as the Center for support SMEs) is the business units under the Department of

Planning and Investment in Hanoi, have legal status, seal and be open accounts at the State Treasury and the bank as prescribed.

The Center for Support SMEs provides advisory and counseling services to assist the Director of Planning and Investment in executing plans and programs aimed at developing small and medium-sized enterprises (SMEs) in Hanoi It directly offers consultancy, support, training, and various services to foster the growth of SMEs within the city.

The organizational structure and apparatus of the present center include directors,

The organization consists of 2 deputy directors and 5 professional rooms, including Administration and Organization, Training Department, Consulting Assistance and Business Information, Investment Management Consulting, Research and Development Division, and Business Incubator Management The Human Resources team currently comprises 46 members.

38 staff officers and 08 contract staff.

After 10 years of operation, the Centre (from 2005 to present), the Centre has made a positive contribution in communication, information and people to business policies of the State aid, performs well consultancy, training and business support.

The Centre is also the bridge between the business consultant and business registration agencies in the settlement documents, administrative procedures for business registration.

The Department oversees various units responsible for coordinating business registration functions and tasks It ensures effective management of administrative business registration activities currently under its jurisdiction.

Currently, Hanoi has 3 business registration office is named in the order: Business registration Rooms 01; 02; 03 with the functions and duties are defined as follows:

The Business Registration Office, established by the Ministry of Planning and Investment in Hanoi, operates as an administrative agency with legal status, a seal, and a separate account It serves as an assistant to the Director of the Department in the city, facilitating business registration processes.

The mission of the State Business Registration Office under the Department of Planning and Investment in Hanoi includes defining the geographical and administrative scope of business registration, developing guidelines for businesses on registration procedures, and managing the submission and evaluation of registration records The office coordinates the construction and operation of national business registration information systems, ensuring accessibility to local business registration information for relevant agencies and the public Additionally, it mandates compliance with the Enterprise Law by requiring annual reports from businesses and supervises their submission The office also directs inspections of business registration profiles in collaboration with relevant state agencies.

Dimensions and Attributes to measure business registration service quality at

To effectively assess product quality, it is essential to develop a model that reflects consumer perspectives In the service sector, particularly in business registration services, evaluating quality based on enterprise judgment is crucial The primary aim of this assessment is to identify both outstanding attributes and defects, enabling a comprehensive evaluation of the products or services being offered This process allows businesses to align their offerings with customer needs, ultimately enhancing overall performance To measure perceived quality factors that contribute to customer satisfaction, the SERVQUAL model is a suitable choice for evaluating the quality of business registration services provided by DPI.

(Source: Valarie A.Zeithaml, A.Parasuraman, Leonard L.Berry, 2010)

Hypothesis shows relationship between factors and customer satisfaction:

Reliability Responsive ness Empathy Assurance Tangibles

Q1: The higher reliability, the higher customer satisfaction, and reversely;

Q2: The higher responsiveness, the higher customer satisfaction, and reversely; Q3: The higher empathy, the higher customer satisfaction, and reversely;

Q4: The higher assurance, the higher customer satisfaction, and reversely;

Q5: The higher tangibles, the higher customer satisfaction, and reversely;

Table 3-1: Table Of Attributes Criteria Attribute

(Ability to perform the promised service dependably and accurately)

ATT1 The service performs correctly and on time

ATT2 Information guidance of administrative procedures is clear

ATT3 DPI keeps trust and respond to customers, provides services in a timely manner

ATT4 The conditions required to implement administrative procedures are reasonably accurate and adequate

(Willing to help customers and provide prompt service)

ATT5 Enterprises’ demand are response quickly

ATT6 The working time of staff receiving records in the OSS takes place on time

ATT7 Staff receiving records in the OSS have professional qualifications ATT8 It is very easy and convenient when paying fees Empathy ATT9 Staff are enthusiastic when handling questions

(Including access, communication, understanding the customer) and complaints from enterprises

ATT10 Staff show good attitude when listening and understanding enterprises’ demand

(Knowledge and courtesy of staff and their ability to inspire trust and confidence)

ATT11 Mechanism OSS facilitates satisfaction to enterprises in administrative procedure

ATT12 Enterprises can rely on staff because they secure information of enterprises ATT13 DPI provides equal treatment to all enterprises

(Physical facilities, equipment and appearance of personnel)

ATT14 Facilities serving enterprises at OSS are in good condition and meet enterprises’ expectation ATT15 Staff are polite and dress professionally

ATT16 Online business registration system are accessible, understandable and clearly viewed ATT17 DPI has convenient working time

Evaluation of business registration service quality in DPI

This thesis utilizes a survey as the primary method for gathering data, focusing on the dimensions and attributes outlined in Table 3-1 to assess the quality of business registration services at the DPI in Hanoi The research is grounded in the SERVQUAL model developed by Parasuraman to evaluate service quality effectively.

The internship report involved conducting a questionnaire survey, with adjustments made to the question design and attribute selection to align with the specific context of DPI in Hanoi The study primarily emphasizes five key dimensions: Reliability, Responsiveness, Empathy, Assurance, and Tangibles, supported by a comprehensive survey.

To assess the quality of business registration services in Hanoi, a survey was conducted involving 60 randomly selected enterprises that approached the Department of Planning and Investment (DPI) for business permits Ultimately, 56 valid responses were analyzed to gauge the expectations and perceptions of these businesses regarding the service quality Utilizing a five-dimensional service quality framework, participants rated their experiences on a scale from 1 (Strongly Disagree) to 5 (Strongly Agree) The study calculated the service quality gap by comparing perceptions and expectations, with the formula Gap = Perception – Expectation A negative score indicates dissatisfaction, while a positive score reflects a service that exceeds expectations.

Acquiring these findings is essential for identifying the key solutions that the Department of Planning and Investment (DPI) in Hanoi requires, as well as for pinpointing areas for improvement to enhance the business registration service.

3.3.2 Five-service-quality-dimension evaluation

Reliability is a crucial dimension in measuring service quality, reflecting the dependability of service delivery within a reasonable timeframe Enterprises are deemed reliable when services are performed accurately and punctually, when the guidance on administrative procedures is clear, and when the service provider maintains trust by responding promptly to customer needs.

The conditions required to implement administrative procedures are reasonably accurate and adequate There are some details on Reliability dimension:

Table 3-2 Mean score of reliability dimension

The service performs correctly and on time 6 10.7 10 17.9 23 41.1 17 30.4 NA NA Information guidance of administrative procedures is clear

DPI keeps trust and respond to enterprises, provides services in a timely manner

The conditions required to implement administrative procedures are reasonably accurate and adequate

The service performs correctly and on time NA NA NA NA NA N

Information guidance of administrative procedures is clear

NA NA NA NA NA N

DPI keeps trust and respond to enterprises, provides services in a timely manner

NA NA NA NA NA N

The conditions required to implement administrative procedures are reasonably accurate and adequate

NA NA NA NA NA N

No Attributes Perception Expectation Gap (P-E)

1 The service performs correctly and on time

2 Information guidance of administrative procedures is clear

3 DPI keeps trust and respond to enterprises, provides services in a timely manner

4 The conditions required to implement administrative procedures are reasonably accurate and adequate

A survey of 56 enterprises revealed that only 10.7% rated the service's timeliness and correctness as a 1, while 17.9% rated it a 2, 41.1% a 3, and 30.4% a 4, with no enterprise giving a perfect score of 5 The desire for timely business registration certificates led to a high expectation score of 4.75 However, the perceived mean score was only 2.91, indicating that the Department of Planning and Investment (DPI) in Hanoi has only partially met this critical service attribute.

Báo cáo thực tập tổng hợp registration service should be performed more correctly and on time The gap between enterprises’ perceptions and expectation is -1.84.

In Hanoi, enterprises rate the clarity of information guidance on administrative procedures at just 2.91, significantly lower than their expectation of 4.73, resulting in a gap of -1.82 This disparity highlights the challenges many businesses encounter in comprehending the guidance for administrative procedures related to business registration For instance, several enterprises have noted that the instructions for resolving these procedures lack specific details, including clear steps and reasonable regulations regarding the required documentation.

The element "DPI maintains trust and responds to enterprises by providing timely services" received an evaluation score of 2.96, highlighting a significant gap of -1.84 between enterprises' perceptions and their high expectations, which are rated at 4.8 This discrepancy underscores the urgency for timely responses, as businesses are often busy and rely on prompt assistance to resolve issues and continue their operations However, the staff in OSS face challenges in delivering timely services due to the overwhelming volume of business registration dossiers they handle each day.

The final aspect of the reliability dimension highlights that the conditions necessary for implementing administrative procedures should be both accurate and adequate Survey results reveal an average expectation score of 4.79, while the actual perception stands at only 2.91, resulting in a significant gap of -1.88 Notably, no enterprises rated this attribute a perfect 5, underscoring the need for the Department of Public Investment (DPI) in Hanoi to enhance the accuracy and adequacy of its administrative procedures.

The below diagram determines the gap between expectation and perception on Reliability dimension:

Figure 3-5: Gap (P-E) Of Reliability Dimension

The reliability of business registration services provided by the Department of Planning and Investment (DPI) in Hanoi is rated positively, yet there remains a notable gap of -1.85 between enterprises' perceptions and expectations While the quality of service is generally good, it still falls short of fully satisfying the needs of some businesses.

The responsiveness dimension highlights the willingness of staff to assist enterprises by delivering high-quality and prompt services, which significantly enhances the perception of respect among clients This dimension encompasses four key attributes: swift responses to enterprise demands, timely processing of records by staff in the OSS, friendly and courteous staff behavior, and the ease of access to services.

Báo cáo thực tập tổng hợp and convenient when paying fees There is some detail in Responsiveness dimension:

Table 3-3: Mean score of responsiveness dimension

Enterprises’ demands are response quickly 4 7.1 14 25.0 28 50.0 8 14.3 2 3.6

Staffs are never too busy to response enterprises’ requirements

Staffs are friendly, courteous and opened- behavior

It is very easy and convenient when paying fees and the fees are reasonable

Báo cáo thực tập tổng hợp 2.88

Enterprises’ demands are response quickly NA NA NA NA NA NA 20 35.7 36 64.3

Staffs are never too busy to response enterprises’ requirements

NA NA NA NA NA NA 14 25.0 42 75.0

Staffs are friendly, courteous and opened- behavior

It is very easy and convenient when paying fees and the fees are reasonable

NA NA NA NA NA NA 37 66.1 19 33.9

No Attributes Perception Expectation Gap (P-E)

5 Enterprises’ demands are response quickly

6 Staffs are never too busy to response enterprises’

Báo cáo thực tập tổng hợp requirements

7 Staffs are friendly, courteous and opened- behavior

8 It is very easy and convenient when paying fees and the fees are reasonable

Enterprises have a significant expectation for quick responses, as highlighted by a notable gap of -1.82 in this attribute In a recent survey, half of the participating enterprises rated their satisfaction with response times at a mere 3 out of 10 While businesses anticipate prompt replies to their inquiries, they often experience delays or a lack of acknowledgment from staff, leading to frustration regarding the speed of service.

The survey indicates a minor gap of -1.64 regarding the attribute "Staffs are never too busy to respond to enterprises' requirements." Only 14 enterprises expressed disagreement, suggesting that staff availability to address their needs is generally perceived as satisfactory.

In terms of staff friendliness and courteous behavior, 3.6% of enterprises rated this attribute with a score of 1, while 14.3% assigned a score of 2 The majority, 64.3%, rated it a 3, and 17.9% gave a score of 4 Notably, no enterprises strongly agreed with this attribute.

The comprehensive internship report achieved the highest score, revealing a gap of 1.45 between enterprises' perceptions and expectations This indicates that the staff at DPI in Hanoi adequately fulfill the demands of businesses regarding their willingness to assist.

Summary of gaps between enterprises’ perception and expectation towards

The quality of business registration services at the Department of Planning and Investment (DPI) in Hanoi received a perception rating of 2.85, significantly lower than the expected rating of 4.57 This survey highlights both the strengths and weaknesses of the business registration services provided by the DPI in Hanoi.

The mean gap score for the five dimensions of business registration service quality was determined by calculating the average expectations and perceptions for each dimension This was achieved by summing the expectation and perception scores for each element and dividing by the number of attributes within that dimension The final outcome is the Mean SERVQUAL score, reflecting the overall service quality as perceived by respondents in the survey.

The table 3-7 reflects the average assessment of the overall business registration service at the DPI in Hanoi.

Table 3-7: Overall assessment of business registration service at the DPI in

In term of Perceptions, Assurance was ranked the lowest at 2.56 and Tangibles was ranked the best at 3.17.

In term of Expectations, enterprises expect the most in Reliability at 4.77 while the lowest is Assurance at 4.39.

The Empathy dimension has the highest gap of -2.05, indicating that the Department of Planning and Investment (DPI) in Hanoi should prioritize enhancing this aspect of their service Following this, Reliability ranks second with a gap of -1.85, Assurance at -1.83, and Responsiveness at -1.66 The overall average mean gap across all dimensions is -1.72, highlighting that the business registration service quality at the DPI in Hanoi falls short of enterprise expectations Therefore, it is essential for the DPI in Hanoi to identify effective strategies to improve their business registration service quality and better meet the needs of enterprises.

On Figure 3-9, comparing graph is provided to help reader visualize.

Reliability Responsiveness Empathy Assurance Tangibles

Figure 3-10: Overall service quality dimensions

Causes of gaps found between enterprises’ perceptions and expectations

3.5.1 The organizational structure of the business registration department is not really reasonable:

Mrs Pham Thi Kim Tuyen, the director of the Department of Business Registration, highlighted that an unreasonable organizational structure within the department is a key factor contributing to the gap between enterprises' perceptions and expectations Currently, the presence of three business registration rooms at the DPI in Hanoi has resulted in several shortcomings.

Despite the established coordination regulations among the three departments and the principles guiding business registration procedures, discrepancies persist in their practical implementation due to unclear legislation Each department's varied interpretations and approaches to enterprises lead to inconsistencies in the settlement process, even though they share the same rights and responsibilities in business registration.

Summarizing business information and preparing management reports has become increasingly challenging due to the dispersed data across three separate rooms The need for distinct business registration software for each room complicates the process of consolidating management reports effectively.

3.5.2 Capacity and qualification of staffs and civil servants is uneven

An interview with three staff members in the Business Registration Room revealed inconsistencies in the capacity and qualifications of employees Mr Do Tuan Anh noted that some staff members lack professionalism, failing to actively enhance their skills and knowledge of relevant laws Additionally, there is limited communication and experience-sharing among staff, and a lack of proactive solutions to improve operations.

Mrs Nguyen Bich Ngan and Mrs Nguyen Ngoc Dung suggested that the lack of legal compliance among certain staff and civil servants may have contributed to the slanderous situation.

3.5.3 System of legal documents specialized business registration overlap and is lack of clarity

Following the reform of the Enterprises Law, the legal framework governing corporate management remains incomplete and unclear, complicating the implementation of management practices for staff tasked with handling administrative records that contain complex and sensitive information.

The volume of work to solve increasing and some operations being increasingly complex causes pressure for business registration agency to handle all the documents on time.

3.5.4 Online information system to register is still developing and do not complete

After completing a three-month internship at the Business Registration Room of the Department of Planning and Investment (DPI) in Hanoi, the author observed significant instability in the online information system software This instability resulted in delays for staff when processing records, as they were unable to resolve issues during software outages Consequently, this led to a backlog in responding to records, highlighting the need for improvements in the system's reliability.

Online information systems software sometimes overloads or has incidents on the transmission line, leading to the delay in process of solve entry record information dossier.

There are a lot of inadequate content on the system promptly interrupting business registration records resolve.

SOLUTION FOR IMPROVING BUSINESS

Solutions to improve business registration service at the DPI in Hanoi

OF PLANNING AND INVESTMENT IN HANOI

4.1 Orientation to develop business registration service quality of the DPI in Hanoi

In the forthcoming period, removing difficulties for enterprises, promoting production and business continue to be key tasks in business registration department at the DPI in Hanoi.

 Enhancing awareness, perception of staffs to create a big change about attitude, responsibility, manner in performing official duties

 Strengthening the proportion settling administrative procedures through online website creates openness and transparency in the management of business registration.

 Improving working environment for workforce as well as facilities to increase service quality and encourage modernization process.

 Enhancing human resource and professional qualifications

4.2 Recommendation to improve business registration service at the DPI in Hanoi

- Gradually additional investing and replacing facilities of OSS department and the Business Registration Rooms to meet work requirements and step towards modernization

- Promoting the application of information technology to improve the efficiency of implementation of administrative procedures for business registration and the management of state business registration

- Building database of online business registration information systems to link the state agencies in business management

- Providing enterprises with clean, comfortable and convenient working environment during waiting for administrative procedure.

4.2.2 Solutions for the organizational structure of business registration agency

The Business Registration Management Office of the DPI in Hanoi has been established to unify the three existing business registration rooms and integrate various related departments, such as OSS, storage, and IT This new model promotes operational focus, unity, and independence in human resources and budgeting The office structure includes a Branch Manager, a Deputy Branch Manager, and specific departmental functions, effectively enhancing the capabilities of the business registration agency.

To enhance the efficiency of business registration in Hanoi, the Department of Planning and Investment (DPI) should establish specific criteria and regulations for each employment position within the three business registration rooms Additionally, it is essential to develop a comprehensive capacity framework tailored to each location.

- Organizing and allocating sufficient quantity of staffs with quality assurance working directly in the OSS department as well as professional business registration rooms;

- Improving the sense of responsibility and attitude of staffs in business registration service, especially the head

- Improving the quality and efficiency of human resource operation

- Training and raising professional qualifications, ethical qualities, communication skill for civil servants guaranteed the best qualify dealing with work

Training staff in the OSS department on expected behaviors and attitudes is essential for enhancing interactions with enterprises By equipping employees with the necessary skills and knowledge, organizations can ensure that they meet the needs and expectations of their business clients effectively This focused education fosters positive relationships and drives satisfaction among enterprises, ultimately contributing to better service delivery and improved outcomes.

- Treating well with staffs by having compensations and incentives to encourage their dedication in work

Following a survey of 56 enterprises and in-depth interviews with five staff members and managers from the DPI in Hanoi, the author gained valuable insights into the quality of business registration services provided by the DPI in the region.

Research indicates that the Department of Planning and Investment (DPI) in Hanoi currently only meets the basic needs for business registration To enhance the quality of these services, DPI must prioritize effective management, shift its mindset and actions, allocate resources wisely, and demonstrate strong leadership This approach aims to significantly improve the efficiency and effectiveness of business registration services in Hanoi.

This thesis utilizes the Gap Model alongside the SERVQUAL instrument, developed by Parasuraman et al., to evaluate the quality of business registration services provided by the DPI in Hanoi The assessment focuses on five key dimensions: Reliability, Responsiveness, Assurance, and Empathy These dimensions reflect the expectations and perceptions of enterprises regarding the quality of business registration services, as detailed in earlier sections of the research.

An analysis of survey data and in-depth interviews, utilizing the SERVQUAL instrument alongside information from the DPI Hanoi website and various reports, reveals that the perceived quality of business registration services at DPI Hanoi is currently at a moderate level, despite significantly high expectations from enterprises.

In Chapter 4 of this thesis, the author identifies limitations in the business registration service and explores their underlying causes Additionally, the chapter provides recommendations aimed at improving the quality of business registration services at the Department of Planning and Investment (DPI) in Hanoi.

The thesis “Business registration service quality at the Department of

The article on "Planning and Investment in Hanoi" acknowledges certain limitations in its research scope The author invites feedback and insights from fellow students and professors at the NEU Business School to enhance the study.

Phạm Thị Kim Tuyến (2015) – Quản lý nhà nước và đăng ký doanh nghiệp trên địa bàn thành phố Hà Nội

A.Parasuraman, Valarie S Zeithaml, Leonard L.Berry (1988) – SERVQUAL: A Multiple-item Scale for Measuring Customer Perceptions of Service Quality, page 12-40

LoveLock, Christopher H (1980) – “Towards a classification of Services” in Emerging Perspective on Services Marketing, page 72-76

Christian Gronroos (1990) - Service Management and Marketing, Lexington, Mass: Lexington Books, page 27

Earl Sasser R.Paul Olsen, and D.Daryl Wykoff (1987) - Management of Service Operation, Boston: Allyn and Bacon, page 8

Phillip Kotler (1999) – Principles of Marketing

Roland T Rust (2004) – Service Quality: New Directions in Theory and Practice, page 40

Website: http://www.hapi.gov.vn

SURVEY QUESTIONNAIRES

I appreciate your assistance in filling out this survey very much It will take about a couple of minutes.

This questionnaire is designed to gather essential information regarding the Business Registration system, specifically focusing on the topic of "Business Registration at the Department of Planning and Investment in Hanoi." The responses you provide will be utilized solely for academic purposes related to my bachelor thesis at the Business School of the National Economics University.

Respondent’s Name: Address: Phone number:

Part 2: Evaluation of Business Registration Service Quality at the

Department of Planning and Investment in Hanoi

Please sincerely rank the extent to which you expect and perceived with these attributes by ticking score from 1 to 5 (1 for Strongly Disagree, and 5 for

1 The service performs correctly and on time

2 Information guidance of administrative procedures is clear

3 DPI keeps trust and respond to enterprises, provides services in a timely manner

4 The conditions required to implement administrative procedures are reasonably accurate and adequate

5 Enterprises’ demand are response quickly

6 Staffs are never too busy to response enterprises’ requirements

7 Staffs are friendly, courteous and opened- behavior

8 It is very easy and convenient when paying fees and the fees are reasonable

9 Staffs are enthusiastic when handling questions and complaints from enterprises

10 Staffs show good attitude when listening and understanding enterprises’ demand

11 DPI provides equal treatment to all enterprises

12 Staffs receiving records in the OSS have professional qualifications

13 Enterprises can rely on staffs because they secure information of enterprises

14 Facilities serving enterprises at OSS are in good condition and meet enterprises’ expectation

15 Staffs are polite and dress professionally

16 Online business registration system are accessible, understandable and clearly viewed

17 DPI has convenient working time

Please give your additional opinion to improve the quality of Business Registration at the DPI

This is the end of the survey.

Sincerely thank for your support and cooperation.

Tiêu đề	Business Registration Service Quality at The Department of Planning and Investment in Hanoi
Tác giả	Pham Thuy Duong
Người hướng dẫn	Pham Sy Long, MBA
Trường học	National Economic University
Chuyên ngành	Bachelor of Business Administration in English (E-BBA)
Thể loại	Thesis
Năm xuất bản	2016
Thành phố	Hanoi

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Số trang	85
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