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OVERVIEW
Research Context
In recent years, tourism has been recognized as a profitable industry with the potential to play a significant role in the foreign exchange balance of nations As a service sector, tourism employs a large workforce and plays an important role in creating job opportunities and reducing unemployment Tourism provides a crucial means to expand a nation's economic base by linking with agricultural, industrial, commercial, and service sectors Additionally, as Goeldner, Ritchie, and McIntosh (2006) have pointed out, tourism is believed to have a positive impact on world peace When people travel around with a genuine desire to learn more about their global neighbors, knowledge and understanding increase This marks at least the beginning of improved global communication, which seems crucial in building bridges of mutual appreciation, respect, and friendship According to WTO predictions, in the future, tourism will surpass other industries in terms of revenue, and the largest share of international trade will be allocated to tourism (Streimikiene, Svagzdiene, Jasinskas, & Simanavicius, 2021) Notably, this industry's revenue is the largest in the world, after oil Tourism is one of the most dynamic sectors of the global economy, utilized for the growth and development of economies and societies This sector has always been regarded as one of the objectives and integral plans of societies with tourism appeal In the orientation of developing the smokeless industry, tourism development in countries is no longer a choice but a vital and urgent matter (Nguyen, Young, Johnson, & Wearing, 2019)
In recent years, Ho Chi Minh City's tourism industry has made efforts, been creative, and periodically organized several national and international tourism events, gradually establishing its brand To effectively organize and implement tourism events, the city's tourism industry has emphasized and enhanced professionalism by understanding the needs of domestic and international tourists, thereby identifying the activities and events that need to be developed and deeply invested in (Hoang Trong Tuan, 2015) The city's tourism leaves visitors in awe with its dynamic transportation, historical landmarks, regional specialties, and especially Saigon's street coffee culture However, environmental pollution and security issues have become negative aspects of Ho Chi Minh City's tourism in the eyes of foreign visitors The study suggests that the city government should establish a tourism police force to address these issues To develop tourism under special mechanisms, Ho Chi Minh City has strengthened its links with countries around the world, regional countries, as well as domestic localities, regarding investment in tourism infrastructure and products, and cooperation with international tourism companies to explore tourist markets and promote tourism (Nguyen Le Thuy Truc, 2020) Ho Chi Minh City has also attracted many foreign enterprises to invest in the development of high-end tourist accommodations that meet international standards These tourism businesses have gradually built strong brands and established industry value chains (Nguyen Quyet & Vo Thanh Hai, 2015)
The major policy group with 44 special mechanisms for Ho Chi Minh City is quite comprehensive, particularly with new and breakthrough content These policies have essentially established political, legal, and practical foundations, but I believe that something more is needed to truly create stronger motivation, forming a more powerful "energy source" for Ho Chi Minh City to develop its economy and boost tourism activities.
Research Gaps
Firstly, although previous studies have made certain contributions to the field of tourism, none have focused deeply on the development of tourism in Ho Chi Minh City under special mechanisms Current studies remain general and lack specificity concerning the conditions and needs for tourism development unique to Ho Chi Minh City Therefore, this topic will address the research gap and contribute to the completion of the theoretical framework for tourism development in the context of special mechanisms
Secondly, existing studies have only identified problems and proposed individual solutions These solutions have not been synthesized into an overall vision for the city's tourism development Thus, this study will contribute to building systematic solutions for Ho Chi Minh City's tourism development, in line with the actual situation
Thirdly, previous studies have not detailed the construction of appropriate mechanisms and policies to attract investment in the tourism sector However, this is a crucial aspect for the industry's development Therefore, this study will address this gap, contributing to the completion of theoretical and practical foundations for the formulation of tourism development policies.
Research Objectives and Tasks
Based on the analysis of research results on the current state of tourism in Ho Chi Minh City and the impact of special mechanisms on tourism development and local economic growth, the study will also examine the influence of factors such as tourism product exploitation, promotion activities, investment activities, human resources, environmental protection, security and safety, and state management on tourism development Through this, the study will propose policy implications to the government and city authorities for developing tourism in Ho Chi Minh City
Firstly, the study clarifies the direct impact of special mechanisms on Ho Chi Minh City's tourism development
Secondly, the study assesses the impact of special mechanisms on economic growth in Ho Chi Minh City
Thirdly, the study identifies other factors (tourism product exploitation, promotion activities, investment activities, human resources, environmental protection, security and safety, and state management) that directly affect the city's tourism development
Fourthly, the study examines the influence of economic growth on tourism development in Ho Chi Minh City
Fifthly, the study proposes policy implications to develop Ho Chi Minh City's tourism under special mechanisms.
Research Subjects and Scope
The research subjects are the special mechanisms and tourism development policies in Ho Chi Minh City and their impact on tourism development and economic growth in Ho Chi Minh City
The survey subjects are tourism experts, tourism management officials, and businesses operating in tourism-related fields
Research Space: The tourism industry within Ho Chi Minh City In addition, during the research process, the author will also explore neighboring areas with a connection to Ho Chi Minh City's tourism
Research Time: The activities of Ho Chi Minh City's tourism industry from 2015 to 2023.
Research Methods
For qualitative methods, the dissertation employs narrative research and phenomenological research methods by conducting in-depth interviews with tourism businesses (directors, department heads), tourism lecturers, and individuals with a certain understanding of tourism development At the same time, the study also formed discussion groups with experts and tourism managers in Ho Chi Minh City A non-probability, purposive sampling method was used in qualitative research The purpose is to find individuals who are reputable and knowledgeable about tourism to participate in group discussions and in-depth interviews
For quantitative methods, the research will be conducted using survey questionnaires (both preliminary and official) and SPSS 23 and SmartPLS 3.2.7 software to perform descriptive statistical analysis, Cronbach's Alpha reliability test, evaluation
Structure of the Dissertation
In addition to the introduction, conclusion, table of contents, references, and appendices, the dissertation consists of five chapters:
Chapter 1: Overview of the research topic
Chapter 2: Theoretical basis of tourism and tourism development under special mechanisms and an overview of related previous studies
Chapter 3: Research methods and research data
Chapter 4: Analysis of research results on the impact of special mechanisms on the development of tourism in Ho Chi Minh City
Chapter 5: Conclusion, recommendations, and policies for the development of Ho Chi Minh City in the context of special mechanisms.
THEORETICAL BASIS OF TOURISM AND TOURISM
Concepts of Tourism and Special Mechanisms
Today, tourism has become a common socio-economic phenomenon The International Travel Association has recognized tourism as the world's largest economic sector, surpassing the automotive, steel, electronics, and agricultural industries Therefore, tourism has become a key economic sector in many countries around the world The term "tourism" has become quite familiar, originating from the Greek word meaning "to go around." Tourism is associated with rest and recreation; however, due to different circumstances, times, and regions, as well as varying research perspectives, the concept of tourism is not always the same
Early on, the scholars who compiled the Vietnam Encyclopedia (1966) separated two basic aspects of tourism into distinct parts The first meaning (from the perspective of the trip's purpose): Tourism is a form of active recreation and sightseeing outside one's place of residence, with the purposes of rest, entertainment, visiting scenic spots, historical sites, cultural and artistic works, etc The second meaning (from an economic perspective): Tourism is a highly effective, comprehensive business sector in many aspects: it enhances understanding of nature, historical traditions, and national culture, thereby contributing to an increased love for the country; for foreigners, it fosters friendship with one's nation Economically, tourism is a business sector with significant effectiveness, often considered a form of on-site export of goods and services
In general terms, tourism development refers to the use of economic, cultural, and social incentives to stimulate investment, promotion, and exploitation activities in tourism, aiming to generate profits, increase income from tourism, and promote socio-economic development Today, the issue of tourism development is seen not only as bringing immediate economic benefits but also as ensuring that this development is passed on to future generations to inherit and enjoy the values created by tourism exploitation Therefore, after being adjusted to suit current conditions, the Tourism Law (2017) defines the concept of sustainable tourism development as follows: "Sustainable tourism development is the development of tourism that simultaneously meets economic, social, and environmental requirements, ensuring the harmonious interests of stakeholders involved in tourism activities, without compromising the ability to meet future tourism needs."
For over 40 years, Ho Chi Minh City has been the largest city in the country in terms of population and economic scale, and it contributes the most to the national budget, with an economic growth rate approximately 1.5 times higher than the national average
However, in the past 10 years, the city's advantage over the rest of the country in certain aspects has slowed down, even falling behind After more than 30 years of renovation, the development mechanisms and policies of Ho Chi Minh City have not differed from other localities Nevertheless, due to its unique characteristics and advantages, the city has made significant, outstanding developments compared to the rest of the country under the same general conditions Accordingly, the special mechanisms of Ho Chi Minh City include four main aspects as outlined in the Politburo's Resolution 16-NQ/TW:
First, decentralization and Delegation of Authority: Granting specific powers to the People's Council, the People's Committee, and the Chairman of the People's Committee of the city to make quick and reasonable decisions The city is allowed to decentralize and delegate more authority to department directors and district authorities to make decisions and resolve matters more quickly In decentralization and delegation, there is a principle that each sector and each issue should have only one decision-making level
Second, Time-bound Response and Financial Autonomy: For issues the city presents and requests, if central ministries do not respond within four months, it is considered approved for implementation The second request is financial autonomy As the largest locality in the country, Ho Chi Minh City must have a financial autonomy mechanism proportional to its population In summary: Ho Chi Minh City must ensure and maintain an economic growth rate 1/3 higher than the national average, a labor productivity rate 2.7 times higher than the national average, contribute three times more to the state budget relative to its population percentage, and receive a budget allocation equivalent to its population percentage (9.1%)
Third, Autonomy in Organization and Staffing: In reality, the labor productivity of Ho Chi Minh City's public officials is 1.5 times higher than the national average As the population increases, so must the number of public officials Ho Chi Minh City has the right to adjust the number of public officials in its apparatus and allocate them to lower levels The city also has autonomy in determining the average income of its public officials, with a proposed average income for public officials being double the national average
Fourth, Establishment of a Regional Development Steering Committee: The committee will be chaired by the Prime Minister, with the Chairman of Ho Chi Minh City's People's Committee serving as the Chairman of the Regional Council
Therefore, the special mechanisms in this dissertation are considered in three aspects: i) Decentralization ii) Autonomy, particularly in organization, personnel, and finance iii) The city's leading role in the region
Theories Related to Special Mechanisms
2.2.1 Decentralization and Delegation of Power
If decentralization is understood as the division of power, it can lead to conflicts and disputes among the branches of legislative, executive, and judicial power, as well as localism and sectionalism, failing to ensure the unity of state power and state management However, the more common and widely accepted understanding today is that decentralization is an administrative management system where authority is divided among a collective or an administrative-territorial unit with legal personality, specific rights, and resources, under state supervision (Law Dictionary, 2006) As for delegation, it should be understood as "administrative management decentralization," which, according to the Law Dictionary (2006), is defined as: "Administrative management decentralization is the transfer of tasks and powers from higher management agencies to lower state management agencies to be carried out regularly, permanently, and stably based on the law The essence of administrative management decentralization is to redefine the division of powers among administrative levels to suit new requirements."
As the economic leader of the region, Ho Chi Minh City has made significant contributions to the region's development, promoting the socio-economic growth of localities within the region The spillover effects from Ho Chi Minh City on the development of neighboring provinces such as Dong Nai, Binh Duong, and Ba Ria - Vung Tau in recent years have been very clear and strong For instance, with the advantage of proximity to Ho Chi Minh City, these localities have leveraged their "geo-economic" and "geo-political" advantages to shift economic structures, promote industrialization and modernization, and develop industrial parks and export processing zones
Centralization theory, when applied to tourism, highlights that the region's resources (e.g., attractions) can positively influence tourist arrivals, providing justification for local policies (e.g., lobbying for government support) (Yüksel, Bramwell, & Yüksel, 2005) The issue of managing regional spillovers arises: regions can use their attractions to gain a competitive advantage over other regions, but at the same time, they risk harming national interests to attract tourists and increase international market share (Pforr, 2006) Therefore, it is important to balance and precisely coordinate tourism policies between national and regional levels to manage regional resources effectively to meet cultural tourism demands
The debate over the determinants of economic growth continues (Easterly, 2002; Helpman, 2009) Since the works of Solow (1956) and Swan (1956), there has been a growing need to understand the complexity of growth phenomena, where initial factors such as physical capital, labor, and human capital, along with other factors, allow for the study of the potential for economic growth and the differences between countries In addition to classical factors, since the late 1980s, this debate has shifted toward other types of determinants, considering new factors within the classical production function (Aghion & Howitt, 1990; Romer, 1986) For example, Weitzman (1996) highlights the role of technology and institutions in the process of economic growth Similarly, North (2012) provides a theoretical advancement, emphasizing the importance of institutions in the analysis of growth According to North, institutions shape the progressive intentions of individuals in each society From this idea, a new discussion arises to understand the role of institutions in the economic growth process (Rodrik, 2003)
In this context, Rodrik (2003) suggests that institutions are not directly linked to aggregate output but rather underlie the endogenous factors of economic growth The main questions arise from the discovery that the institutional context, in addition to influencing traditional inputs such as labor, human capital, physical capital, and knowledge, also facilitates individual choices that create economic momentum Hausmann and Rodrik (2003) suggest that the relationship between entrepreneurship and industrial development implies that production factors are heavily influenced by the institutional environment
Institutional theorists assert that the institutional environment can strongly influence the development of formal structures within an organization, often more profoundly than market pressures Innovative structures that improve technical efficiency in early-adopting organizations become legitimized within the environment Ultimately, these innovations reach a level of legitimacy where failing to adopt them is considered "irrational and negligent" (or they become a legal obligation)
At this point, new and existing organizations will adopt the structural form even if it does not improve efficiency They find that when coercive pressure is high (e.g., under state mandates), organizations quickly adopt new structures Under low coercive pressure, the adoption rate is much slower However, increased adoption builds legitimacy within the institutional environment, accelerating the adoption rate of the new structural form
2.2.3 Theories Related to the Leading Role
Economic development is the highest goal of an economy and a nation The Growth Pole & Growth Center Theory was proposed by French economists to revive the French economy with rapid growth in a short period The growth pole was proposed by Perroux (1955) as part of France's economic plan, focusing on the phenomenon of economic development and the process of structural change Francois Perroux attempted to explain how the modern economic growth process has diverged from the stable concept of balanced growth The cause of the discontinuous breakthrough is the innovative entrepreneur whose activities take place in large-scale companies These companies can dominate their environment in the sense of exerting reversible and partially reversible influences on other economic units due to their size, bargaining power, and the nature of their activities The growth pole is a set of dynamic and highly integrated industries organized around a leading sector with driving power
The growth pole theory, acknowledging that economic growth does not grow evenly or linearly, but rather centers around spaces where some initial developments occur, would suggest that tourism development may be shifting to an area capable of meeting demands that would never occur in an entire specific market Through a locality, tourism can contribute to overall economic growth, a factor closely linked to employment (Faggian, Partridge, & Malecki, 2017) By capturing latent demand, the tourism industry stimulates local markets where they operate by not only generating profits for themselves but also bringing new money into the region that will then circulate
Ho Chi Minh City has been actively promoting connections with neighboring cities to offer tourists new and exciting trip options One option is traveling from the city station to Dong Nai Province by rail or river bus The Dong Nai Museum, Buu Long Tourist Area, Ông Temple (a famous temple in the Chinese community), and Sơn Tiên Tourist Area can all be reached by rail in about 45 minutes When tourists are connected, they can visit local attractions in Thu Duc City, including Bửu Long Pagoda and the Ao Dai Museum A river bus will drop you off at Bach Dang Wharf in District 1 after the trip ends It is predicted that the combined efforts of these two tours will attract a large number of visitors
Through the above independent variables, the author filters the independent variables to inherit those previously studied to build the proposed research model according to the following table:
Tablồ 2.1: Summary Table of Independent Variables from Experimental Research Models
Factors from Previous Research Previous Research Author-Proposed Factors Tourism Products and Services Vu, Tran, Nguyen, and Nguyen (2020)
(H1) Tourism Products Bùi Trọn Bui Trong Tien Bao and Quyen Dinh
Nguyen Trong Nhan, Huynh Van Da, and Phan Viet Dua (2020)
Tourism Promotion and Investment Bui Trong Tien Bao and Quyen Dinh Ha (2019) Promotion and Marketing
(H2) Tourism promotion and investment Bui Trong Tien Bao and Quyen Dinh Ha (2019) Investment Activities
Factors from Previous Research Previous Research Author-Proposed Factors Mobilization and Use of Investment Nguyen Thi Bang (1996) (H3)
Exploitation of Investment Capital Nguyen Tan Vinh (2007)
Tourism Human Resources Vu, Tran, Nguyen, và Nguyen (2020)
Human Resources Development and Training Mai Anh Vu and Nguyen Xuan Hieu (2020)
Human Resources Nguyen Phuoc Hoang (2020)
Human Resources Bui Trong Tien Bao and Quyen Dinh Ha (2019)
Regional Leadership Role Candela, Mussoni, và Patuelli (2015)
Environment Vu, Tran, Nguyen, và Nguyen (2020)
Natural Environment Nguyen Trong Nhan (2015)
Environmental Resources Nguyen Phuoc Hoang (2020)
Security and Safety Nguyen Trong Nhan (2015)
Public Policy Fotuhinia, Toranlo, và Mazidi (2014)
Government Management Vu, Tran, Nguyen, và Nguyen (2020)
Tourism Management Policies Nguyen Phuoc Hoang (2020)
Policy Mechanisms Bui Trong Tien Bao and Quyen Dinh Ha (2019)
Source: Compiled by the author, 2022
- Based on published domestic and international scientific research
- Based on the concepts and theories presented in the theoretical framework of the study
- Based on lessons learned from other provinces regarding tourism development
- Based on state policies aimed at promoting the development of Ho Chi Minh City's tourism within the framework of special mechanisms
The author has developed a theoretical framework consisting of three aspects of Ho Chi Minh City's special mechanisms and other factors that directly impact the development of the city's tourism within these special mechanisms The three aspects of Ho Chi Minh City's special mechanisms being studied and their impact on economic growth and tourism development include: (1) Decentralization and delegation of specific powers to the People's Council, People's Committee, and the Chairman of the People's Committee for quick and reasonable decision-making; (2) Autonomy in organization and staffing; (3) Establishment of a Regional Development Steering Committee chaired by the Prime Minister, with the Chairman of Ho Chi Minh City's People's Committee serving as the Chairman of the Regional Council Other factors include: (1) Exploitation of tourism products; (2) Promotion and marketing; (3) Investment activities; (4) Human resources; (5) Impact of special mechanisms; (6) Environmental protection; (7) Security and safety; (8) State management These factors are considered the main factors for addressing the current situation and proposing solutions to overcome the current challenges in the development of Ho Chi Minh City's tourism
Figure 2.1 Model of Factors Influencing the Development of Ho Chi Minh City's Tourism under Special Mechanisms
Source: Compiled by the author, 2022
Vu, Tran, Nguyen, and Nguyen (2020) point out that factors related to tourism products affect sustainable tourism development in Ba Ria-Vung Tau The research results indicate that poor-quality, non-diverse tourism products have limited tourism development in Vung Tau Additionally, Bui Trong Tien Bao and Quyen Dinh Ha (2019) show that tourism products are a direct factor influencing tourism development in the Đồng Tháp Mười region in the context of integration Furthermore, Nguyen Trong Nhan, Huynh Van Da, and Phan Viet Dua (2020) also suggest that responsible tourism product development will promote local tourism development A locality with significant economic advantages like Ho Chi Minh City will easily develop diverse tourism products, thereby boosting local tourism development Therefore, the study proposes Hypothesis H1:
H1: The exploitation of tourism products positively affects the development of Ho Chi Minh City's tourism under special mechanisms
Research indicates that strengthening tourism marketing and promotion is key to capturing the market, attracting tourists, and strongly promoting tourism development (Dredge & Jenkins, 2003) To attract tourists, businesses need to understand the market, grasp the characteristics, psychology, preferences, and spending capacity of specific target audiences to respond effectively To do this, it is necessary to focus on building a tourism marketing strategy, with the core being the development of a national tourism brand strategy, on which to organize substantial and effective national tourism promotion campaigns to attract international tourists (Tien, Dung, Vu, Doan, & Duc, 2019) This should be considered a priority task for tourism businesses in the near future When building a national brand strategy, special attention should be paid to choosing a slogan and symbol for Vietnam's tourism that are consistent and closely linked The awareness of all levels, sectors, and the entire society about the role of tourism, including tourism promotion, has been strengthened, gradually improved, and shifted in a positive direction The team of tourism promotion staff is increasingly mature, with increasingly higher professional qualifications, making positive contributions to advising levels on breakthrough policies and programs for tourism promotion activities, helping the promotion work become more organized and professional (Bui Trong Tien Bao & Quyen Dinh Ha, 2019) Seetanah and Sannassee (2015) point out the impact of tourism promotion on small island states, such as the number of tourists to Mauritius Thus, the promotion and marketing of Ho Chi Minh City will have a positive impact on the number of tourists visiting the city and on the development of tourism Therefore, the study proposes Hypothesis H2:
H2: Promotion and marketing positively affect the development of Ho Chi Minh City's tourism under special mechanisms
Public and private investment helps stimulate and restructure economic activities to achieve higher economic growth rates in all economies Investment, as part of aggregate demand and a source of capital formation, has been emphasized in previous studies related to sectoral growth, while the tourism sector has received less attention Governments and international development agencies in developing countries have long considered tourism a major source of employment and income According to Baum and Szivas (2008), the government's supportive role for the tourism industry lies in its ability to create employment opportunities and contribute to overall economic and social development Investment activities can be undertaken by the public or private sectors, and the results are often determined by the country's economic, political, and social structure From an economic perspective, public investment is rationalized when the private sector does not produce efficiently or when the private sector is hesitant to invest Public sector investment reduces risk for the private sector and helps ensure returns (Rosentraub & Joo, 2009) Mechanisms and policies to mobilize social resources for investment in culture, cultural industries, and especially tourism are very important (Nguyen Thi Bang, 1996) Adequate and timely budget allocations are needed, along with reasonable socialization policies, to attract investment for the preservation and promotion of heritage values; in which sufficient funds are allocated for the program to sustainably preserve and promote cultural heritage values Koh and Lee (2020) identify that increasing the budget reduces the additional travel time for tourists resulting from the reconstruction of bridges Currently, Ho Chi Minh City is heavily investing in public works such as the metro system and the renovation of Notre-Dame Cathedral Therefore, the study proposes Hypothesis H3:
H3: Investment activities positively affect the development of Ho Chi Minh City's tourism under special mechanisms
Perhaps the main limitation to the continued development of tourism is the lack of trained personnel to work in the industry This issue has been well recognized and has attracted considerable financial support from international funding
Economic growth of Ho Chi Minh City
Ho Chi Minh City Factors include
RESEARCH DESIGN
Research Process
Based on the research objectives, the first step will be to conduct a literature review of previous studies to identify the attributes that serve as the basis for proposing measurement scales in the research model, as well as to develop an outline for expert interviews and group discussions to establish the theoretical research model and design the preliminary survey questionnaire
The literature review is a crucial step in the research process because it aims to explore previous studies by domestic and international authors related to the topic Based on this, the research will have an overview of the research situation and identify relevant attributes to build the outline for expert interviews and group discussions Additionally, summarizing the research achievements from previous research streams will help identify research gaps to guide the research topic Furthermore, while reviewing the theory, previous studies have also demonstrated that the concepts included in this study's model have been researched and validated However, to validate the concepts in the theoretical model in a country like Vietnam, specifically Ho Chi Minh City with its special mechanisms, conducting expert interviews and group discussions is essential The purpose of this is to gather expert opinions on whether the factors in the research model derived from theory and previous studies are suitable for the specific context of Ho Chi Minh City Additionally, expert interviews and group discussions aim to explore new factors for the study
This step involves conducting a preliminary survey, testing the reliability of the measurement scales using Cronbach’s Alpha coefficient, and performing Exploratory Factor Analysis (EFA) The preliminary survey will focus on businesses related to tourism and state management agencies in Ho Chi Minh City The sample size in the preliminary study is 126 observations
The main purpose of this stage is to conduct a preliminary investigation of the survey subjects to assess the reliability of the measurement scales and eliminate unsuitable scales before conducting factor analysis Exploratory factor analysis aims to reduce and summarize the data Based on this, the research will redefine the research model and refine the official survey questionnaire
For the same research subjects, the survey will focus on businesses related to tourism and state management agencies in Ho Chi Minh City because they are knowledgeable and aware of the impact of special mechanisms as well as state management factors on tourism The concepts in the research model will be evaluated and validated based on the survey data with a sample size of 788 The main activities conducted in this official research step include:
(1) Analysis of the official research sample
(2) Evaluation of the measurement model
(3) Validation of the research model and hypotheses using Partial Least Squares Structural Equation Modeling (PLS-SEM)
Qualitative Research to Adjust the Measurement Scales
Group discussions or in-depth interviews were conducted in May 2022 with discussion sessions lasting 90 to 120 minutes, held at the respondents' offices The process was carried out through scheduled face-to-face meetings, with materials and questions sent in advance to the interviewees via email
In this dissertation, qualitative research was conducted in two steps.Specifically::
Step 1: The author developed an outline for group discussions The purpose of this step was to clarify the theory and build, adjust, and develop the measurement scales Therefore, the author conducted group discussions with two business directors, two business managers, and two heads of state management departments
Step2: After obtaining preliminary scales from the group discussions, the author continued with in-depth interviews to further adjust and develop the scales to ensure content validity for quantitative research In this step, the author interviewed experts according to the interview outline to adjust and develop the scales The interview list included one lecturer, two managers in the tourism industry, and two state management officials in tourism to gather additional opinions on supplementing and adjusting the scales After the in-depth interviews, no new opinions were found regarding the measurement scales for the components in the study
Data Collection Process for Qualitative Research
- For group discussions: After introducing the objectives and the expected content of the discussion, the author asked the participants to introduce themselves in terms of profession and expertise The next step involved using the prepared discussion outline to ask questions that prompted discussion Each question was discussed for 15–20 minutes, with 10 minutes for conclusion and consensus Respondents were allowed to freely express their opinions and debate with other members on unclear or contentious issues The discussion moderator listened and appropriately facilitated participation, discussion, or agreement on the opinions of other respondents At the end of the discussion, the author summarized the viewpoints and thanked the respondents for their participation
- For in-depth interviews: After introducing the objectives and expected content of the interview, the author began asking questions based on the pre-prepared interview outline The interview process started with asking questions to the respondents, listening to their views, discussing the researcher’s perspectives with the respondents, and drawing conclusions on the issues
Economic growth is understood as the positive and sustainable change in the production of goods and services of a country over time It is typically measured by the increase in GDP, representing the total value of all final goods and services produced within a country's territory Economic growth indicates the expansion of economic productivity and wealth potential, reflecting improvements in labor productivity, innovation, job opportunities, and living conditions It is driven by various factors, including technological progress, enhanced investment, favorable government policies, and a skilled labor force Sustainable economic growth is crucial for improving living conditions, reducing poverty, and promoting inclusive societal development This study uses the economic growth scale by Andereck and Vogt (2000) consisting of four observed variables, which were then adjusted in qualitative research
Table 3.1 Economic Growth Measurement Scale
TTKT1 The amount of tax revenue in Ho Chi Minh City has also increased in recent
Andereck and Vogt (2000), qualitative research results TTKT2 Ho Chi Minh City's economy has improved
TTKT3 Ho Chi Minh City's appearance is changing positively
TTKT4 Many valuable job opportunities are available for Ho Chi Minh City residents
TTKT5 Ho Chi Minh City's GDP has increased in recent years
Source: Andereck and Vogt (2000), qualitative research results
Tourism development is understood as the process of enhancing and expanding tourism-related activities in an area to generate economic, social, and environmental benefits It includes improving tourism infrastructure, encouraging investment in the tourism industry, building quality tourism services, and promoting and advertising to attract tourists Tourism development brings many benefits, including job creation, economic growth promotion, contribution to the national budget, conservation and protection of cultural and natural heritage, enhancing cultural exchange, and diversifying experiences for both tourists and local communities However, tourism development must be conducted sustainably to ensure environmental protection, respect local culture, and create equitable benefits for the local community The tourism development scale is based on the study by Yoon, Gursoy, and Chen (2001) and adjusted in qualitative research to mainly add the context of Ho Chi Minh City Additionally, the item "Infrastructure supports the development of tourism services very well (e.g., hotels, travel agencies, restaurants, entertainment centers, souvenir centers…)" overlaps with the content of infrastructure factors rather than tourism development, so it will not be used to measure tourism development The content of the four items measuring tourism development in Ho Chi Minh City is shown in Table 3.2
Table 3.2 Tourism Development Measurement Scale in Ho Chi Minh City
PTDL1 Ho Chi Minh City's tourism is developing based on nature (e.g., camping sites, parks, eco-tourism areas…) Yoon,
Gursoy, và Chen (2001), qualitat ive researc h PTDL2 Attractions in Ho Chi Minh City are designed for large numbers of tourists (e.g., amusement parks, resort complexes…) PTDL3 Attractions in Ho Chi Minh City are being developed based on culture or history (e.g., museums, folk villages, historical sites…) PTDL4 Tourism development in Ho Chi Minh City is linked with event/outdoor programs (e.g., entertainment venues, exhibitions, performances, sports events, business/public events…)
Source: Yoon, Gursoy, and Chen (2001), qualitative research
3.2.3 Special Mechanisms Measurement Scale in Ho Chi Minh City
Decentralization and delegation of specific powers to the People's Council, the People's Committee, and the Chairman of the People's Committee of the city for quick and reasonable decision-making The city is allowed to decentralize and delegate more authority to department directors and district authorities to make decisions and resolve matters more quickly In decentralization and delegation, there is a principle that each sector and each issue should have only one decision- making level Based on Resolution 54/2017/QH14 and through qualitative research, four items measuring the decentralization in Ho Chi Minh City based on special mechanisms were developed, as shown in Table 3.3
Table 3.3 Decentralization Measurement Scale in Ho Chi Minh City's Special Mechanisms
CCĐT_PC1 State administrative agencies, political organizations, socio- political organizations, and public service units managed by the city use the remaining wage reform funds to increase investment, procurement, professional activities of agencies, organizations, units, and additional income according to Resolution 54/2017/QH14
Resolution 54/2017/Q H14, qualitative research CCĐT_PC2 The People's Council of the city has the authority to decide on the allocation of the city's budget to increase the average income for cadres, civil servants, and public employees in state management, political organizations, socio-political organizations, and public service units managed by the city according to Resolution 54/2017/QH14
CCĐT_PC3 The People's Committee of the city submits to the People's Council of the city for decision on investment policy according to the provisions at point b, clause 2, Article 29 of the Public Investment Law No 49/2014/QH13
CCĐT_PC4 The Chairman of the People's Committee and the People's Council of Ho Chi Minh City are granted the authority to manage and allocate income for cadres, civil servants, and public employees managed by the city according to Resolution 54/2017/QH14 Source: Resolution 54/2017/QH14, qualitative research
For any issues that Ho Chi Minh City (HCMC) reports and requests approval for, if no response is received from the central ministries within four months, it is considered approved Secondly, financial autonomy is granted As the largest locality in the country, HCMC must have financial autonomy proportional to its population In summary, HCMC must ensure and maintain a growth rate 1.3 times that of the entire country, labor productivity 2.7 times the national average, contribute to the state budget three times the population ratio, and receive a budget allocation equivalent to its population ratio (9.1%) Additionally, autonomy regarding organization and staffing is granted In practice, the labor productivity of HCMC civil servants is 1.5 times higher than the national average As the population increases, so must the number of civil servants
HCMC has the right to change the number of civil servants in the administrative apparatus and allocate civil servants to lower levels Autonomy in civil servants' income is proposed, with an average income twice that of the national average
Table 3.4 Measurement Scale of Autonomy in HCMC's Special Mechanisms
Quantitative Research
The questionnaire is designed in three parts The first part asks for basic information about the businesses and state management agencies The second part aims to gather the survey respondents' opinions on the concepts in the research model The next part collects general information from the respondents, serving descriptive statistics purposes Based on feedback from interviewees during the qualitative research phase, the questions are constructed simply and understandably, while still ensuring the correct implications of the theoretical basis The questions are laid out on two sides of an A4 sheet, with a font size of 13, and scores from 1 to 5 are framed, making it easy to identify and answer
The study uses 788 observations for analysis after eliminating observations that did not meet the criteria or lacked reliability
To achieve the research objectives, a probabilistic sampling method with clustering is used Since the study delves deeply into the field of tourism, cluster sampling is applied based on the list of tourism companies and state management units, allowing for the selection of respondents knowledgeable about the research topic (Neuman, 2002) The survey targets businesses related to tourism, such as restaurants, hotels, travel companies, and state management units in tourism The ratio of businesses to state management agencies in the survey is 80%-20% The survey is conducted by sending paper questionnaires to the target respondents
To achieve the research objectives, the study uses SPSS and SmartPLS software to process quantitative data collected from the preliminary and official surveys SPSS software is used for descriptive statistics, exploratory factor analysis (EFA), and reliability testing of the measurement scales in the preliminary study; finally, SmartPLS software will be used to analyze the research model and test the hypotheses
The quantitative analysis technique using the Structural Equation Modeling (SEM) is widely applied in various fields due to its flexibility in modeling relationships between concepts SEM models typically include two types: (1) Covariance-based SEM (CBSEM) using software like AMOS, LISREL; (2) Variance-based SEM (VBSEM), also known as PLS-SEM, using SmartPLS software SEM is commonly used in many fields, including economics (Hulland, Chow, & Lam, 1996)
The thesis uses SmartPLS 3.2.7 software with the PLS-SEM technique to test the proposed research model and hypotheses According to Hair, Henseler, Dijkstra, and Sarstedt (2014), the number of studies using PLS-SEM published in recent years has rapidly increased In fields such as organizational behavior, information systems management, strategic management, and marketing research, PLS-SEM has many advantages over CB-SEM in the following situations: (1) Accepts non-normally distributed data, a significant difference between PLS-SEM and CB-SEM, where non-normally distributed data is a major issue for CB-SEM (i.e., CB-SEM requires normally distributed data, which is often challenging because studies typically use convenience sampling methods); (2) It is used for complex research models with many intermediary, moderating, latent, and observed variables, particularly structural models; (3) It can simultaneously analyze reflective and formative measurement models; (4) It is suitable for studies with a predictive orientation (Henseler, Ringle, & Sarstedt, 2015).
Preliminary Study Measurement Scale Evaluation Results
According to Table 3.13, in the preliminary study, 126 responses were collected from 91 tourism-related businesses and 35 state management officials in tourism Specifically:
Table 3.13 Characteristics of the Preliminary Study Sample
Director 20 22,0 Director/Deputy Director of the
Business Manager 21 23,1 Chairman/Secretary of the District 15 42,9
Marketing Manager 28 30,8 Head/Deputy Head of Department 6 17,1
Deputy Director 22 24,2 In-charge Officer 6 17,1
Source: Survey Results by the Author
3.4.2 Evaluation of the Reliability and Convergence of the Measurement Scale
This study employs Cronbach’s Alpha (CA) to assess the reliability of the measurement scale and uses Exploratory Factor Analysis (EFA) to evaluate the convergence of the scale The results indicate that all measurement scales meet the reliability and convergence criteria.
ANALYSIS OF RESEARCH RESULTS
Current Status of Tourism Development in Ho Chi Minh City
4.1.1 Major Development Goals and Orientations
Ho Chi Minh City is one of the first localities in the country to implement the development of a tourism strategy The comprehensive tourism development plan for Ho Chi Minh City for the period 1996-2010 was initiated in 1995, aiming “by
2010 to become a significant economic sector; by 2010 to attract 5.4 million domestic tourists and 4.2 - 4.6 million international tourists; with total tourism revenue (excluding transportation) reaching 77.062 trillion VND.” As of 2010, the number of international tourists to the City was 3.1 million; tourism revenue reached 44.918 trillion VND However, the number of domestic tourists reached 10.8 million, surpassing the set target After 2010, the City did not update or adjust the tourism plan or develop a strategic direction for the following period In 2015, the City drafted the “Comprehensive Tourism Development Plan for Ho Chi Minh City until 2020, with a Vision to 2030,” but for various reasons, this plan has not been approved Despite this, Ho Chi Minh City’s tourism sector has continued to develop, maintaining its status as one of the largest tourism centers in the country and a key economic sector of the City
4.1.2 Results of Tourism Development in Ho Chi Minh City
In recent years, despite facing many adverse impacts due to global economic and political instability, thanks to its tourism development advantages and the efforts of the entire political system—particularly the tourism sector of the City, alongside creative steps taken by the business community and the consensus of the public—Ho Chi Minh City’s tourism activities have consistently achieved impressive growth rates, significantly higher than the national average
Table 4.1 Number of Tourists Visiting Ho Chi Minh City from 2013 to 2022
Total number of tourists Domestic tourists International tourists
Growth rate compared to the previous year (%)
Growth rate compared to the previous year (%)
Growth rate compared to the previous year (%)
Source: Ho Chi Minh City Department of Tourism
According to Table 4.1, in the period from 2010 to 2019, the number of tourists to Ho Chi Minh City continuously increased, with an average annual growth rate of 13.2% for the number of tourists to the City during the period 2013-2019 Due to the impact of the Covid-19 pandemic, the number of international tourists to the City in 2020 reached just over 1.3 million, a decrease of 84.9% compared to the previous year; domestic tourists were estimated at over 15.8 million, a decrease of 51.5% In 2021, under the negative impact of the Covid-19 pandemic, Vietnam and most countries implemented travel restrictions, so Ho Chi Minh City only welcomed more than 9.3 million domestic tourists, with no international tourists In
2022, as the government lifted travel restrictions, Ho Chi Minh City began to reopen to international tourists By the end of the year, the City had received more than 3.4 million international tourists, higher than the number recorded in 2020 at the onset of the Covid-19 pandemic Additionally, the domestic tourism market strongly rebounded with over 31.2 million domestic tourists, equivalent to 95% of the number recorded in 2019
During the period 2013-2019, the total number of international tourists to the City was consistently lower than the total number of domestic tourists, with an average annual growth rate of 13.1% for international tourists compared to 13.2% for domestic tourists With the advantage of being the largest air gateway in Vietnam, Ho Chi Minh City welcomed about 34% of the total number of international tourists to Vietnam in 2020 (Figure 4.1) This ratio was maintained in 2022 as Vietnam implemented a phased reopening to international markets
Source: Euromonitor, GSO, Ho Chi Minh City Department of Tourism
Figure 4.1 Number of International Tourists to Ho Chi Minh City from 2013-2022
International Tourists to Other Provinces/Cities
International Tourists to HCMC International Tourists to Other Provinces/Cities
In 2019, Chinese tourists were the largest market among all tourists visiting Ho Chi Minh City, with 1.2 million arrivals, a significant increase from 2013 However, tourists from South Korea and Taiwan have shown remarkable growth since 2013, with respective annual growth rates of 25% and 23% The number of tourists from all countries, except Australia, achieved double-digit growth, indicating that tourists from each region contributed strongly to the overall growth of Ho Chi Minh City's tourism sector In 2022, some of Ho Chi Minh City's international tourist markets showed signs of recovery, approaching the levels seen in 2013, particularly South Korea and the United States The City has yet to recover the number of Chinese tourists, who were a major market for the City in 2019, due to China's travel restrictions and "zero-Covid" policy
It is expected that from 2023, with China's phased reopening plans for Vietnam as a tourist destination, Ho Chi Minh City will be able to welcome a large number of Chinese tourists returning for tourism
Source: Ho Chi Minh City Department of Tourism, Roland Berger
Figure 4.2 International Tourists to Ho Chi Minh City by Major Markets, 2013-2022 (million arrivals/year)
In terms of the number of overnight international visitors, Ho Chi Minh City ranked 42nd globally and 7th in Southeast Asia in 2018
4.1.2.2 Tourism Revenue and Contribution to GRDP
Along with the increase in tourists, tourism revenue also grew, particularly as indicators such as the average length of stay and average spending per tourist increased Although Ho Chi Minh City is not a leisure tourism destination, the indicators for the average length of stay and average spending per tourist are relatively high compared to many other localities in the country The survey results of the Department of Tourism in 2019, shown in Figure 4.3, indicate that the average length of stay for tourists tended to decrease, but spending increased In 2017, the average length of stay for international tourists was 5.21 days, with average spending per day at 3.3 million VND (145 USD), while in 2019, the corresponding figures were 4.51 days and 3.89 million VND/day (168 USD) Domestic tourists exhibited a similar trend
In 2017, the average length of stay was 3.6 days, with average spending of 1.58 million VND/day, while in 2019, the corresponding figures were 2.5 days and 1.7 million VND/day During the period 2013-2020, Ho Chi Minh City's tourism revenue continuously increased, reaching 140 trillion VND in 2019, accounting for 18.5% of the country's total tourism revenue and more than 1.7 times that of 2013 The average annual growth rate of tourism revenue for the entire period 2013-2019 was 9% per year Tourism revenue was impacted by the Covid-19 pandemic and social distancing policies, as evidenced by a 68% decline during the period 2019-2021 However, thanks to efforts to boost domestic tourism and the early stages of reopening international tourism, tourism revenue in 2022 reached 131.1 trillion VND, equivalent to 94% of the level in 2019
Source: Ho Chi Minh City Department of Tourism
Figure 4.3 Total tourism revenue of Ho Chi Minh City in the period 2013-2022 [billion VND]
With continuous growth, tourism has gradually become one of the most important economic sectors of Ho Chi Minh City In 2019, the City's total tourism GDP reached 6.2 billion USD, a 72% increase compared to 2013 (3.6 billion USD) and contributing approximately 21% to the national tourism GDP (Figure 4.4)
The proportion of tourism's contribution to Ho Chi Minh City's GRDP is higher than the average contribution of tourism to Vietnam's national GDP, ranging from 9.9% to 10.6% during the period 2016-2019, while Vietnam's tourism contribution ranged from 5.8% to 6% during the same period (Figure 4.5)
China Korea Japan Taiwan US Australia
Figure 4.4 GRDP Value of Tourism in Ho Chi Minh City and Contribution to National Tourism GDP
Figure 4.5 Direct Contribution of Tourism in Ho Chi Minh City to the City's GRDP
From an economic perspective, with the proportion of tourism's contribution to the City's GRDP ranging from 9.9% to 12%, tourism is a key economic sector for the City Nationally, Ho Chi Minh City's tourism contribution to Vietnam's GDP ranged from 5.5% to 6% during the period 2013-2019, leading the country
4.2.1.4 Labor in the Tourism Sector
Labor is always a crucial factor in the development of any industry This is especially true for the service sector, such as tourism The data on the current state of Ho Chi Minh City's tourism workforce during the period 2013-2019 is presented in Table 4.2
Table 4.2 Labor in Ho Chi Minh City's Tourism Sector, 2013-2019
2.2 University, college 22.000 28.400 37.500 39.300 45.200 52.000 58.340 2.3 Intermediate, primary level
Source: Ho Chi Minh City Department of Tourism
Statistical data from the Ho Chi Minh City Department of Tourism shows that the city's tourism development has created numerous social jobs In 2019, the tourism industry employed over 616,500 people, accounting for 13.1% of the working-age population The growth rate of tourism-related employment from 2013 to 2019 reached 18.2% per year, which is higher than the national average labor growth rate (8.2% per year) and that of the Southeast region (9.1% per year)
Survey Results Analysis
4.2.1 Analysis of the Survey Sample in the Official Study
In the official quantitative study, the author surveyed two groups of respondents: tourism businesses and state management units related to tourism A total of 788 survey samples were collected, with sample information described in Table 4.3 For Businesses:
- Regarding the experience of the businesses: 220 businesses (35%) have been in operation for 1 to 3 years; 202 businesses (32.1%) have been operating for 3 to 5 years; the remaining 32.9% have been in operation for over 5 years
- Regarding fields of operation: 120 businesses (19.1%) are involved in tour organization and hotel operations; 20.3% operate in the restaurant business; 124 businesses (19.7%) are engaged in transportation; and 21.8% are involved in tourist attractions
- Regarding demographic factors: 308 respondents (49%) were male, while 321 respondents (51%) were female 157 respondents (25%) were aged 22 to 30; 151 respondents (24%) were aged 31 to 40; 163 respondents (25.9%) were aged 41 to 50; and 158 respondents (25.1%) were aged 50 and above
- Regarding positions within the businesses: 128 respondents (20.3%) were directors; 170 respondents (27%) were deputy directors; 167 respondents (26.6%) were sales managers; and 164 respondents (26.1%) were marketing managers
- Regarding personal income: 206 respondents (32.8%) had an income of less than VND 20 million; 209 respondents (33.2%) had an income between VND 20 million and VND 30 million; and 214 respondents (34%) had an income above VND 30 million
- Regarding operational experience: 51 units (32.1%) have been in operation for 1 to 3 years; 49 units (30.8%) have been in operation for 3 to 5 years; and 59 units (37.1%) have been in operation for over 5 years
- Regarding the fields of operation/responsibility: The majority of respondents came from units responsible for transportation (29 units - 18.2%) The number of units involved in administration/policy, tourism, and hotel/restaurant management is as follows: administration/policy (25 units - 15.7%); tourism (26 units - 16.4%); hotel/restaurant management (25 units - 15.7%) The number of units involved in commerce and culture is equal (27 units - 17% each)
- Regarding demographic factors: 79 respondents (49.7%) were male, and 80 respondents (50.3%) were female 49 respondents (30.8%) were aged 25 to 30; 32 respondents (20.1%) were aged 31 to 40; 33 respondents (20.8%) were aged 41 to 50; and 45 respondents (28.3%) were aged over 50
- Regarding positions within the state management units: 36 respondents (22.6%) were directors/deputy directors of departments; 41 respondents (25.8%) were district/honorary chairpersons; 43 respondents (27%) were heads/deputy heads of departments; and 39 respondents (24.5%) were responsible officers
Table 4.3 Demographic Information in the Official Survey
Field of work/in charge Tour Organizer 120 19,1 Administration/Policy 25 15,7
Job position Director 128 20,3 Director/Deputy Director of
Sales Manager 167 26,6 Chairman/Secretary of the
Marketing Manager 164 26,1 Head/Deputy Head of
Deputy Director 170 27,0 Specialist in charge 39 24,5
4.2.2 Evaluation of the Measurement Model
The research model includes 13 constructs, encompassing tourism product exploitation (KTSPDL); promotion and marketing efforts (XTQB); investment activities (HĐĐT); human resources (NNL); environmental assurance (ĐBMT); security and safety (ANAT); state management (QLNN); decentralization (CCĐT_PC); autonomy (CCĐT_TC); regional leadership role (CCĐT_DDV); economic growth (TTKT); and tourism development (PTDL) With this model, we need to estimate the relationship between the research variable and its observed variables (outer loadings) According to Table 4.4, all outer loading indices for the KTSPDL, XTQB, HĐĐT, NNL, ĐBMT, ANAT, QLNN, CCĐT_PC, CCĐT_TC, CCĐT_DDV, TTKT, and PTDL concepts exceed the permissible value of 0.708 The observed variable QLNN5 has the lowest construct reliability at 0.506 = 0.711² (outer loading 0.711), while the variable CCĐT_PC1 has the highest construct reliability at 0.8649 = 0.932² (outer loading 0.93) Therefore, all observed variables for the five reflective constructs are above the minimum permissible value for outer loadings
22 Table 4.4 Outer Loadings, AVE, CR, CA Values
ANAT CCĐT_DDV CCĐT_PC CCĐT_TC HĐĐT KTSPD NNL PTDL QLNN TTKT XTQB ĐBMT
ANAT CCĐT_DDV CCĐT_PC CCĐT_TC HĐĐT KTSPD NNL PTDL QLNN TTKT XTQB ĐBMT
XTQB7 0,786 ĐBMT1 0,779 ĐBMT2 0,797 ĐBMT3 0,794 ĐBMT4 0,753 ĐBMT5 0,79 ĐBMT6 0,802 ĐBMT7 0,815
24 The internal consistency reliability of the latent research variables is assessed through composite reliability (CR) Table 4.4 shows that all CR values for the research constructs exceed 0.7 Thus, we conclude that the latent research variables achieve internal consistency reliability Additionally, the average variance extracted (AVE) values of the research variables are all above 0.5 Therefore, the 13 research constructs achieve high convergent validity
The study will check the discriminant validity between the observed variables in the research According to Table 4.5, the HTMT value for all pairs of research constructs in a matrix shows that all HTMT values are well below the threshold of 0.85
CCĐ T_PC CCĐ T_TC HĐ ĐT KT SP
43 4.2.3 Evaluation of the Structural Model
4.2.3 Evaluation of the Structural Model
First, the study will evaluate multicollinearity According to Table 4.6, the variance inflation factor (VIF) values for all endogenous variables (shown in the column) and their corresponding exogenous variables (shown in the row) are below 5 Therefore, collinearity among the predictor variables does not occur in the research model
Next, the study will evaluate the coefficient of determination The most commonly used measure for evaluating the structural model is the coefficient of determination (R²) A higher R² value indicates a higher level of predictive accuracy Similarly, for multiple regression, the adjusted R² value (R²adj) is used as a standard to avoid bias in complex models An R² value of 0.20 is considered high in fields such as behavioral sciences and social research (Hair, Hult, Ringle, & Sarstedt, 2016) Therefore, according to Table 4.7, the relationships in the research model explain a significant portion of the variance in tourism development and economic growth, with R² and adjusted R² values both exceeding 40% Table 4.7 Values of coefficient of determination
In addition to evaluating the R² and adjusted R² values of all endogenous variables, the change in the R² value when a specific exogenous variable is omitted from the model is used to assess whether the omitted variable has a significant impact on an endogenous variable This measure is called the effect size (f²) According to Table 4.8, the effect size f² for the relationships between independent factors and tourism development, as well as economic growth, indicates that the contribution of exogenous variables to the endogenous variable is small (0.02 < f² < 0.15)
In addition to assessing the importance of R² values as a criterion for predictive accuracy, researchers also examine the Q² value In structural models, a Q² value greater than 0 for a specific endogenous latent variable indicates the predictive relevance of the path model for that specific dependent variable Table 4.9 summarizes all the results of the blindfolding procedure It shows that the Q² value of the two endogenous variables is higher
26 than 0 Specifically, PTDL has the highest Q² value (0.485), and TTKT (0.285) The results indicate the predictive relevance of the model to the endogenous latent variables
The results in Table 4.10 describe the relationships between the research variables and test the research hypotheses
Tourism product development positively impacts tourism development with 99% confidence, supporting hypothesis H1 (Beta = 0.102; t-value = 5.19; p-value = 0.000) Additionally, tourism promotion and marketing activities also positively impact tourism development (Beta = 0.119; t-value = 6.007; p-value = 0.000), so hypothesis H2 is accepted Likewise, hypothesis H3 is accepted as investment activities also positively impact tourism development (Beta = 0.117; t-value = 5.323; p-value = 0.000) Similarly, four other factors—human resources, environmental assurance, security and safety, and state management—also positively impact tourism development in Ho Chi Minh City Therefore, hypotheses H4, H5, H6, and H7 are all accepted
Decentralization positively impacts tourism development with 99% confidence, supporting hypothesis H8a (Beta = 0.083; t-value = 5.103; p-value = 0.000) Additionally, autonomy also positively impacts tourism development (Beta = 0.087; t-value = 4.331; p- value = 0.000), so hypothesis H8b is accepted Likewise, hypothesis H8c is accepted as the regional leadership role also positively impacts tourism development (Beta = 0.047; t-value
= 3.763; p-value = 0.03) Similarly, the three special mechanism factors also positively impact economic growth, specifically decentralization (Beta = 0.202; t-value = 5.821; p- value = 0.000), autonomy (Beta = 0.288; t-value = 6.749; p-value = 0.000), and regional leadership role (Beta = 0.345; t-value = 8.578; p-value = 0.000) Therefore, hypotheses H9a, H9b, and H9c are all accepted Finally, economic growth positively impacts tourism development in Ho Chi Minh City (Beta = 0.125; t-value = 5.531; p-value = 0.000); thus, hypothesis H10 is accepted
Mối quan hệ Beta Độ lêch chuẩn t-value p-value Giả thuyết
27 Mối quan hệ Beta Độ lêch chuẩn t-value p-value Giả thuyết
CONCLUSION
Discussion
The exploitation of tourism products positively impacts the development of tourism in Ho Chi Minh City under its special mechanism This can be discussed from various perspectives Diversifying tourism products will help Ho Chi Minh City attract different types of tourists (Vu, Tran, Nguyen, & Nguyen, 2020) This may include cultural tourism, historical tourism, culinary tourism, shopping tourism, urban tourism, and more (Nguyen Trong Nhan, Huynh Van Da, & Phan Viet Dua, 2020) Diversifying tourism products creates new experiences for tourists and enhances the attractiveness of Ho Chi Minh City Secondly, improving tourism infrastructure is crucial for effectively exploiting tourism products Infrastructure includes airports, seaports, roads, hotels, restaurants, recreational facilities, and other tourist attractions Investment in tourism infrastructure helps attract tourists, facilitates tourism activities, and provides quality services to customers Simultaneously, the development of tourism products will create numerous employment opportunities for local residents Jobs related to tourism services, such as tour guides, hotel staff, restaurant employees, taxi drivers, and sales personnel, can provide stable income for workers This contributes to the economic development of Ho Chi Minh City and enhances the quality of life for its residents The exploitation of tourism products can create a cultural exchange environment between tourists and local residents Tourists have the opportunity to experience the culture, history, cuisine, and distinctive landscapes of Ho Chi Minh City This not only creates a great experience for tourists but also helps raise cultural awareness and understanding among the local community
Promotion and marketing efforts have a positive impact on the development of tourism in Ho Chi Minh City under its special mechanism Strengthening brand recognition: Promotion efforts help build a unique image and brand for Ho Chi Minh City When these efforts are carried out effectively, Ho Chi Minh City's tourism will become an attractive and well-known destination, drawing the attention of tourists both domestically and internationally (Bui Trong Tien Bao & Quyen Dinh Ha, 2019) Strong brand recognition highlights the city and increases its competitiveness with other tourist destinations (Seetanah
& Sannassee, 2015) Promotion and marketing play a crucial role in attracting tourists to Ho Chi Minh City Through the dissemination of information and promotion of destinations, tourism products, and attractive experiences, the city can increase tourist interest and boost the number of visitors coming to explore, relax, and spend in the city This generates significant financial circulation and drives the city's economic development The growth of tourism brings many business opportunities and jobs to the people of Ho Chi Minh City As the number of tourists increases, tourism businesses also grow, from hotels, restaurants, and tour guides to other supporting services This helps generate income for businesses and provides employment for local residents
Investment activities positively impact the development of tourism in Ho Chi Minh City under its special mechanism, as evidenced by research and comparisons with other studies In the field of tourism, investment activities are considered a crucial factor in enhancing development Research has shown that investing in tourism infrastructure, such as airport construction, transportation improvements, and the enhancement of hotel and recreational facility quality, significantly contributes to attracting tourists and increasing tourist arrivals in Ho Chi Minh City Compared to other studies, the results indicate that investment activities in tourism in Ho Chi Minh City under its special mechanism achieve positive outcomes (Rosentraub & Joo, 2009) Other studies have also highlighted the importance of investment activities and their impact on tourism development (Koh & Lee, 2020) However, under Ho Chi Minh City's special mechanism, investment activities can focus on distinctive tourism areas such as cultural heritage, festivals, cuisine, and
29 architecture The research results also show that investment activities in tourism can facilitate the sustainable development of the tourism industry This means that investment not only generates short-term benefits but also contributes to long-term development, environmental protection, and the promotion of harmony between tourism and socio- economic development Overall, the comparative research results indicate that investment activities positively impact the development of tourism in Ho Chi Minh City under its special mechanism Studies have demonstrated the importance of investment activities and their effectiveness in tourism development However, under Ho Chi Minh City's special mechanism, investment can focus on distinctive areas and ensure the sustainable development of the tourism industry
The research results indicate that human resources play a crucial role in the development of tourism in Ho Chi Minh City under its special mechanism The research has shown a correlation between tourism development and the quality of human resources in the industry (Zhang & Wu, 2004) When there is a quality workforce with expertise, skills, and enthusiasm, the tourism industry can provide high-quality services, create positive experiences for tourists, and attract their interest and trust (Nguyen Phuoc Hoang, 2020) Compared to other studies, the results show that human resources positively impact the development of tourism in Ho Chi Minh City under its special mechanism Other studies have also produced similar results, emphasizing the role of human resources in tourism However, under Ho Chi Minh City's special mechanism, human resources may need to be trained and enhanced to meet the demands of a rapidly developing tourism industry This may require the provision of specialized training programs and increased support and encouragement for workers in the tourism industry The research results also show a link between quality human resources and the sustainable development of tourism Having a highly skilled, creative, and innovative workforce can help Ho Chi Minh City's tourism industry develop sustainably, improve service quality, and minimize negative impacts on the environment and local culture
The research results have demonstrated that the environment is a crucial factor in tourism development The environment includes both the natural environment (such as landscapes and geographical features) and the social environment (such as culture, history, and security) Ensuring a healthy and sustainable tourism environment can attract the interest and trust of tourists, create positive experiences, and enhance the destination's image (Domínguez-Gómez & González-Gómez, 2017; Donaldson & Preston, 1995) Compared to other studies, the research results show that environmental assurance positively impacts the development of tourism in Ho Chi Minh City under its special mechanism Other studies have also produced similar results, emphasizing the importance of the tourism environment in development However, under Ho Chi Minh City's special mechanism, ensuring the tourism environment involves not only protecting the natural environment but also preserving and promoting the value of local culture and history The research results also show that ensuring the tourism environment can create favorable conditions for the sustainable development of the tourism industry Maintaining a healthy and sustainable environment helps ensure that tourism can develop in the future without harming resources and the environment This means that ensuring tourism contributes positively to socio- economic development without causing negative impacts on the environment and the local community
Compared to other studies, the research results show that security and safety positively impact the development of tourism in Ho Chi Minh City under its special mechanism Other studies have also produced similar results, emphasizing the importance of security and safety in tourism (He, Cai, & Shi, 2023; Mawby & Vakhitova, 2022) However, under Ho Chi Minh City's special mechanism, ensuring security and safety involves not only
30 maintaining public order but also ensuring safety in festivals, events, and other tourism activities The research results also show that ensuring security and safety can create favorable conditions for the sustainable development of the tourism industry When tourists feel safe and secure, they are more likely to be satisfied with their travel experience and more inclined to return to the destination This means that ensuring security and safety contributes to the sustainable growth of the tourism industry, generating economic benefits and bringing stability to Ho Chi Minh City
The research results have demonstrated that state management plays a crucial role in tourism development Government and regulatory interventions and adjustments can create a stable, developing, and attractive environment for tourism (Voznyak, Panukhnyk, Khymych, & Popadynets, 2019) State management provides support policies, regulations, and authority to guide and coordinate tourism activities, from managing tourism infrastructure, investment, and promotion to protecting the environment and ensuring tourism security (Wang, Zhang, & Qiu, 2022) Compared to other studies, the research results show that state management positively impacts the development of tourism in Ho Chi Minh City under its special mechanism Other studies have also produced similar results, emphasizing the importance of government and regulatory roles in tourism However, under Ho Chi Minh City's special mechanism, state management may need to focus on promoting innovation, creating favorable conditions for tourism businesses, and building a suitable environment for tourism development in international competition The research results also show that state management can play a crucial role in building an effective regulatory and control system to protect tourism resources and ensure the sustainable development of the tourism industry State management can ensure the rational management and use of tourism destinations, protect cultural and natural heritage, and promote environmental protection in the process of tourism development
The research results indicate that decentralization within the special mechanism positively impacts economic growth and tourism development in Ho Chi Minh City Decentralization can be understood as the distribution of power and responsibility between different management levels and local units Decentralization can bring numerous benefits to economic growth and tourism development Firstly, decentralization allows local units to guide, decide, and implement tourism development policies and measures that align with the region's specific characteristics while effectively utilizing and maximizing local resources (Andrews, Boyne, Law, & Walker, 2009) This increases the ability to adapt to changes and diversify economic resources to promote tourism development Additionally, decentralization encourages interaction and cooperation between local units and higher management levels Close collaboration between these entities can create a conducive environment for sharing information, experiences, and resources, thereby enhancing the ability to respond to challenges and opportunities in the tourism industry Decentralization can also facilitate innovation and creativity in tourism development (Yüksel, Bramwell, & Yüksel, 2005) Local units can quickly respond to and adapt to new trends, markets, and tourist demands, creating diversity and attractiveness in tourism products and services However, to ensure that decentralization yields positive results, careful adjustments and management are necessary (Candela, Mussoni, & Patuelli, 2015) Management levels must clearly define the roles, responsibilities, and authority of each local unit to ensure balance and effectiveness
The research results show that autonomy within the special mechanism has a positive impact on economic growth and tourism development in Ho Chi Minh City Autonomy plays a crucial role in promoting economic growth and tourism development from various perspectives (Nyaupane & Timothy, 2010) Firstly, autonomy allows local units to actively participate in the decision-making and implementation of tourism
31 development policies, measures, and strategies (Ngo, Jaynes, Cochran, & Piquero, 2022) This ensures that decisions are made in alignment with the region's characteristics, potentials, and local resources, thereby increasing the effectiveness and success of tourism activities Autonomy also fosters local community involvement in tourism development By facilitating participation, communities can contribute their opinions, ideas, and resources to the tourism development process This can create positive interactions between tourists and local communities, as well as generate consensus and support for tourism activities Furthermore, autonomy creates favorable conditions for innovation and creativity in tourism development Local units can develop innovative and unique tourism products and services that meet the needs and preferences of tourists This helps enhance the competitiveness of the locality and attract more tourists, contributing to economic growth and tourism development
The research results indicate that the role of regional leadership within the special mechanism has a positive impact on economic growth and tourism development in Ho Chi Minh City Regional leadership plays a crucial role in promoting economic growth and tourism development Firstly, regional leadership helps define and shape tourism development strategies based on local advantages and characteristics Having a common tourism development strategy for the region ensures compatibility and coherence among the tourism activities of local units, creating synergy and enhancing the effectiveness of these activities (Faggian, Partridge, & Malecki, 2017) Secondly, regional leadership fosters cooperation and collaboration among local units within the region By creating a supportive environment that encourages collaboration, local units can share resources, experiences, and knowledge to achieve mutual benefits (Valente, Dredge, & Lohmann, 2015) Close collaboration between local units creates a strong and attractive tourism region that draws tourists and promotes economic growth Thirdly, regional leadership provides an appropriate context for the sustainable development of tourism (Calero & Turner, 2020) By setting sustainability criteria and standards, regional leadership ensures that tourism activities are conducted responsibly, protecting resources and the environment This increases tourists' trust and helps tourism develop in a long-term and sustainable manner
Economic growth has a positive impact on tourism development in Ho Chi Minh City There is a strong correlation between these two factors Firstly, economic growth creates favorable conditions for tourism development by increasing the purchasing power of residents and generating higher incomes (Calero & Turner, 2020) As people's incomes rise, they can more easily spend money on tourism activities such as travel, dining, and shopping This generates domestic tourism demand and attracts international tourists to Ho Chi Minh City Secondly, economic growth also provides the necessary resources and investment for the development of tourism infrastructure With a developed economy, Ho Chi Minh City can invest in tourism infrastructure projects such as improving transportation, building hotels, restaurants, recreational facilities, and enhancing other tourism support services (León-Gómez, Ruiz-Palomo, Fernández-Gámez, & García-Revilla, 2021) High-quality infrastructure is a crucial factor in attracting tourists and ensuring a good travel experience Thirdly, economic growth contributes to the diversification and development of the tourism industry With a developed economy, Ho Chi Minh City can develop diverse and rich tourism products and services, from cultural tourism, culinary tourism, shopping tourism, to urban tourism and ecotourism This attracts a wide range of tourists and enhances Ho Chi Minh City's competitiveness in the tourism industry.
Solutions
- Review, adjust, and issue special policy mechanisms, focusing on preferential policies and creating the most favorable conditions for land clearance, access to long-term
32 preferential loans, etc., to attract investment in tourism development, especially in unique tourism products Develop policies to create financial resources based on tourism revenue to reinvest in tourism, prioritizing activities such as preserving tourism resource values, promoting tourism, training tourism human resources, and protecting the tourism environment (including ensuring security, safety, and social order in tourism activities)
- Review and adjust administrative regulations to minimize procedures, creating the most open and fastest conditions for investors in the tourism sector in Ho Chi Minh City
- Develop and issue mechanisms and policies that prioritize and support local communities in self-investing in the development of small and medium-sized tourism products in accordance with the city's overall planning and orientation
- Increase investment in facilities as well as the teaching staff at tourism training institutions, aiming to apply national and regional tourism vocational competency standards, ensuring the requirement to enhance the capacity of the tourism workforce for the development of Ho Chi Minh City's tourism in the new phase
- Establish mechanisms and policies to attract talent/high-quality human resources, including managers, strategists, educators, artisans, and skilled workers, to work in the city and participate in tourism development
- Implement policies that encourage organizations, communities, and businesses to engage in promoting and marketing Ho Chi Minh City's tourism in both domestic and international markets
- Integrate gender equality and social equity policies into tourism development policies within Ho Chi Minh City
- Consolidate the state management apparatus for tourism from the city to the district level towards a synchronized, professional, effective, and efficient structure that meets tourism management requirements Focus on enhancing the professional qualifications and state management capabilities of the staff at the Department of Tourism, the Tourism Promotion Center, the Culture and Information Office of Thu Duc City, and the
21 districts to increase management effectiveness, ensuring they serve as a bridge between tourism businesses and state management agencies
- Supplement and complete regulations and rules on tourism management; strengthen inspection and supervision activities, strictly handle violations (in accommodation, travel, tour guiding, etc.), create a fair competitive environment, and create favorable conditions for businesses and communities to develop tourism
- Expedite the implementation of digital technology applications in tourism management activities, including tourism service business activities, to ensure data synchronization, effectively support inter-sectoral activities in tourism, and minimize tax losses in the tourism sector
- Enhance the responsibility of heads of local governments in organizing, managing, and overseeing tourism activities in the city
5.2.3 Solutions for Controlling the Quality of Tourism Services
Enhance understanding and management of quality, apply standard systems, inspection systems, quality recognition, develop and honor brands, and promote brand franchising
- Standardize the system of quality standards for tourism products across Ho Chi Minh City Promote the application of the Green Lotus standard (tourism accommodation establishments meeting environmental protection and sustainable development standards) and the ASEAN Green Hotel Standard at accommodation establishments in the city as a breakthrough in enhancing the quality of Ho Chi Minh City's tourism products towards sustainability and environmental friendliness
- Strengthen state management capacity in the quality of tourism products Establish information channels for tourists to report on the quality of services and tourism products when visiting the city to promptly address issues, ensure the rights of tourists, and improve the quality of related tourism products and services in Ho Chi Minh City
- Support the enhancement of capacity for tourism businesses and tourism households in managing, exploiting, and managing the quality of tourism products and related services, with a focus on unique tourism products at destinations, especially in key tourism areas of the city
- Effectively implement the provisions of the Tourism Law on the criteria for serving tourists and progress towards a comprehensive program for managing the quality of tourism services in Ho Chi Minh City
- Encourage tourism businesses and service providers to apply international standards for the quality of tourism products and services, accompanied by incentive policies and support for implementing units
5.2.4 Solutions for Ensuring the Tourism Environment
- Develop an orientation and action plan for protecting the tourism environment and responding to climate change in line with Vietnam's Tourism Development Strategy in the city
- Raise awareness about environmental protection; honor eco-friendly titles and labels Strengthen inspection, supervision, and handling of environmental violations at tourist sites and attractions in the city
- Promote the role of grassroots social organizations in raising community awareness of environmental protection in tourism Effectively utilize and expand the network of environmental protection volunteers Increase the publication of educational materials on environmental protection in tourism Diversify forms of communication through mass media and social networks
- Emphasize individual responsibility, particularly that of leaders, in regularly directing and managing crime prevention to ensure social order and safety in localities and at tourist sites
5.2.5 Solutions for Developing Human Resources and Encouraging Community Participation
- Focus on training with curriculum innovation to meet regional and international standards, upgrade tourism training institutions with a qualified faculty to ensure that the city's tourism workforce is of high quality and meets the requirements of tourism development in the new context
- Establish preferential mechanisms and policies to attract qualified tourism professionals to work in Ho Chi Minh City and ensure that skilled tourism workers feel secure in staying and working in Ho Chi Minh City;
- Orient tourism as a core educational program for students in the city, offering many career opportunities Organize tourism career guidance activities for students
- Strengthen the linkage between tourism businesses and tourism training institutions in training activities to enhance practical relevance in training and ensure a high- quality workforce Encourage tourism businesses to organize training to improve the quality of their tourism workforce Collaborate with tourism companies to provide special internship programs for students in tourism-related fields; offer scholarships for tourism research to ensure a future workforce; subsidize international internship programs to help high-potential students meet international tourism standards; promote exchange/double degree programs and attract students from target markets (e.g., China, Korea, Japan) to study and then work in Ho Chi Minh City
- Encourage community participation, especially women and rural residents, gradually moving towards the socialization of developing general human resources in tourist areas
- Develop educational campaigns on the role of local communities in tourism development, changing the attitudes of tourism employees, service providers such as waitstaff, taxi drivers, salespeople, etc., and improving the image and reputation of Ho Chi Minh City in the eyes of tourists
5.2.6 Solutions for Promoting the Application of Science and Technology
- Support investment from the budget for key areas that create a premise for tourism development: infrastructure, promotion, branding, human resource development, and applied research
- Mobilize financial resources from domestic and foreign economic sectors into areas of tourism infrastructure development, tourism technical facilities, tourism human resource training, and tourism promotion