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ThAi nguyen University Southern luzon STATE University Socialist Republic of Vietnam Republic of Philippines DISSERTATION ABSTRACT STRATEGIC MARKET PLAN OF BAC GIANG, VIETNAM Advisor : Dr. Edwin Bernal Name of Researcher: MAI SON English Name: JACKSON Date of Birth: 29-11-1974 Course : SLSU-DBA1 Bac Giang August, 2013 2 PREFACE In the recent decades, strategic market plan had been used as a strategy for enhancing competitiveness that led to achieving growth in the economies of some successful places worldwide. This approach can be consider as an essential tool for the growth of urban economies in the global context. The model of place planning based on principles of marketing named Strategic Market Plan (SMP) that consists of the process of developing strategies so that a place can reach its growth objectives through identifying and meeting its target market demand. Place marketing is said to be both a consequence of, as well as a necessity for, increased competitive capacity among places for the development of resources. With these points of view, the dissertation proposes a system of criteria to describe the perceptions of the investors on factors affecting the competitive capacity of Bac Giang Province as basis for introducing place marketing innovations as inputs to the Strategic Market Plan (SMP) model for the province. 3 CHAPTER I INTRODUCTION Background of the Study In the recent decades, strategic market planning had been used as a strategy for enhancing competitiveness that led to achieving growth in the economies of some successful cities worldwide. Some scholars have judged this approach as an essential tool for the of urban economies in the global context (Ashworth 1994; Ashworth & Voogd 1990; Gold 1994; Jessop 1998; Kotler et al. 1999; Kotler, Haider & Rein 1993; Kotler et al. 2002; Levine 1998; Luo & Zhao 2003; Wells & Alvin 2000). They have been generalizing and conceptualizing this phenomenon in an effort to build a model of place planning based on principles of marketing. Kotler (ibid.) named this approach Strategic Market Planning (SMP) which consists of the process of developing strategies so that a place can reach its growth objectives through identifying and meeting its target market demand. A place’s target market might be businesses, visitors, residents, investors, donors and international financing institutions. The competition is among developing places and/or among post-industrial cities which has resulted in more aggressive and complex forms of competition. As a consequence of the increasingly wide-ranging and aggressive competition, a place marketing strategy for retaining and attracting investment has become essential. Bac Giang province, in particular, is a competitor in attracting investment. Located at the Nanning (China)-Lang Son- Hanoi-Hai Phong economic corridor and adjacent to the northern key economic region covering Hanoi, Hai Phong and Quang Ninh, Bac Giang is included in the Hanoi regional construction planning towards 4 2030, with a vision to 2050. The province boasts a rich source of young labors. It is promoted as a destination for development of high technologies and supporting industries. It has set out a plan for six industrial parks (IPs) with a total area of about 1,400 hectares. In agriculture, the province has rich land resources and is one of the main suppliers of vegetables for Hanoi and the neighbouring provinces. Transport network is a great advantage of Bac Giang as it is connected to ports, airports, borders and is also a connection point between northern provinces and other countries in the region. Bac Giang has planned to become a commodity logistics centre of the northern region. Remarkably, Bac Giang possesses abundant tangible and intangible cultural resources. Highlights include the Quan ho folk, recognized by UNESCO as an intangible cultural heritage of humanity and the Vinh Nghiem Pagoda woodblocks, recognized as the world's documentary heritage for the Asia-Pacific region. There are four existing issues that hinder the socio-economic development of Bac Giang, namely land compensation, quality human resources, administrative procedures and infrastructure. In particular, infrastructure is a prerequisite for economic development. However, more than 50 percent of the province’s roads are in bad and very bad condition. The province has only few transportation routes for container trucks. Given the current budget constraints, the province has been actively taking advantage of all sources of capital. Its immediate action is to mobilize investment government bonds, from the state budget and especially official development assistance (ODA) funds. Since 2002, donors and international financial institutions have shown increasing interest in Bac Giang province. Donors include international financial institutions such as the World Bank (WB), the Asian Development Bank (ADB), the United Nations Development Programme (UNDP), 5 the European Union (EU), Japan International Cooperation Agency (JICA), the Korean International Cooperation Agency (KOICA). In recent years, Bac Giang has mobilized, received and implemented a total of 22 ODA projects with a total capital commitment of nearly VND3 trillion ($148.3 million). Up to now, total disbursement of projects across the province reached VND1,481 trillion ($74.061 million), of which $60.323 million came from ODA and the rest has been contributed by the government (GSO, 2012). Although, the Provincial government has already achieved significant milestones in its development efforts, it must inevitably continue to work towards achieving the level of development that it aspires for its people and the province. It must continue to attract and encourage investments to support its efforts towards gaining steady progress in transitioning beyond being a developing economy. It is in this context that the need for devising a Strategic Market Planning model, particularly for the Bac Giang Province in Vietnam, that this research project was conducted. Statement of the Problem This study aimed to describe the perceptions of the investors on factors affecting the Provincial Competitive Index (PCI) of Bac Giang province as basis for introducing place marketing innovations as inputs to the Strategic Market Planning (SMP) model for the province. Specifically, this study tried to find answers to the following research questions: 1. What is the profile of the investors-respondents of working years, type of business, line of business, capital size, and numbers of employees? 2. What is the investor-respondents’ perception on Bac Giang Province’s competitiveness measured in terms of entry costs, land access and tenure, 6 transparency, informal charges, time cost, proactive, business support services, labor training and legal institutions? 3. Is there any significant relationship between the selected investor- respondents’ characteristics and their perception on Bac Giang Province’s competitiveness? Objectives of the Study The general objective of this study was to describe the perceptions of the investors on factors affecting the Provincial Competitive Index (PCI) of Bac Giang province as basis for introducing place marketing innovations into the Strategic Market Planning (SMP) model for the province. Specifically, this study aimed: 1. To describe the profile of the respondents in terms of: a) Working years b) Type of business c) Line of business d) Capital size e) Numbers of employees 2. To analyze the competitiveness of Bac Giang Province based on the perception of the investors measured in terms of: a, Entry costs b, Land access and Tenure c, Transparent d, Informal charges e, Time cost f, Proactive 7 g, Business support services h, Labor training i, Legal institutions? 3. To measure any relationships between the selected respondents’ characteristics and the respondents’ perception on Bac Giang Province’s competitiveness. Significance of the study The result of this study is envisioned to contribute knowledge to effective and efficient management; hence, it will benefit the following: For the investors, based on analysis of this paper, Bac Giang’s government will build special action plans to improve competitiveness of their province. Hence, investors will have more facilities when they invest to Bac Giang. For Bac Giang’ government, this study will help them understand their strong and weakness. In addition, Bac Giang’s government will understand what investors are thinking about business environment of their province, especially in term of entry costs, land access and tenure, transparent, informal charges, time cost, proactive, business support services, labor training and legal institutions. Hence, the government can build a Strategic Market Plan to improve business environment of the province to attracting more investors. Scope and limitation of the study Based on the perception of investor-respondents, the study assessed the competitiveness capacity of Bac Giang province in terms of the following major nine variables: entry costs, land access and tenure, transparent, informal charges, time cost, 8 proactive, business support services, labor training and legal institutions. The study was confined to Bac Giang Province and involved respondents coming from 122 local enterprises. Base on these analyses, the paper will come up with some meaningful recommendations on how the province will proceed at formulating strategies in order to effectively attract investors to put their resources into the province. CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES This section presents the basic concepts, the content related to Strategic Marketing Plan sorted by the variables studied. Conceptual Framework Research Framework describes briefly, how to define the problem, to which the authors propose solutions to improve competitiveness capacity of Bac Giang based on the selected variables. 9 CHAPTER III METHODOLOGY Research Design This study basically used the descriptive method of research. It is the appropriate method used for collecting, processing, and analyzing data on the factors affecting the competitiveness of Bac Giang province, namely: entry costs, land access and tenure, transparent, informal charges, time cost, proactive, business support services, labor training and legal institutions. As well, this paper also used a correlation method which involved using regression statistics to analyze the factors which influences to competitiveness capacity of Bac Giang province. Research locale The study assessed the perception of investors about business environment of Bac Giang province in term of entry costs, land access and tenure, transparent, informal charges, time cost, proactive, business support services, labor training and legal institutions. Population and Sampling According to MOLISA (2012), Bac Giang had 3306 companies. However, the study conduct survey with sample size 122 only based on the Slovin’s formula due to limited financial and human resources, as follows Where: n is size of the sample N is total number of employee e is standard error at α = 0.09 10 The 122 investor-respondents were picked out based on random sampling technique. Research Instrument This research used the self-constructed questionnaire to gather the primary data. The questionnaire was composed of three parts. The first part asked about the respondents’ profile. The second part was on perception of investors. The third part was assessment of factors which affecting to competitiveness of Bac Giang province. Base on these result, we will build strategic market plans for Bac Giang. The questions were in the form of five (5) point Likert scale where five (5) was the highest and one (1), the lowest. Values were assigned as follows: for the independent variables the adjectival ratings follows: 5- Excellent; 4- Good; 3- Fair; 2- Poor; and 1- Very Poor. Meanwhile, for the dependent variables, the ratings were: 5- Very competitive; 4- Moderate competitive; 3- Neutral; 2- Less competitive, and 1- Uncompetitive. Point Range Investor’ evaluation Descriptive Interpretation 4.20 – 5.00 Very competitive Excellent 3.40 – 4.19 Competitive Good 2.60 – 3.39 Neutral Fair 1.80 – 2.59 Less competitive Poor 1.00 – 1.79 Uncompetitive Very Poor [...]...Data Gathering Procedure Some agencies were visited to gather information needed: National Statistics Office, Ministry of Planning and Investment and Vietnam Chamber of Commerce and Industry Theories and concepts about competitiveness were gathered from books and other research materials Websites were also visited to gather additional data regarding the . of Vietnam Republic of Philippines DISSERTATION ABSTRACT STRATEGIC MARKET PLAN OF BAC GIANG, VIETNAM Advisor : Dr. Edwin Bernal Name of Researcher: MAI SON English Name: JACKSON. Asia-Pacific region. There are four existing issues that hinder the socio-economic development of Bac Giang, namely land compensation, quality human resources, administrative procedures and infrastructure an effort to build a model of place planning based on principles of marketing. Kotler (ibid.) named this approach Strategic Market Planning (SMP) which consists of the process of developing