Các yếu tố ảnh hưởng tới sự hài lòng của các nhà đầu tư vào các khu công nghiệp của tỉnh Thái Nguyên (2)

FACTORS AFFECTING THE SATISFACTION OF INVESTORS IN INDUSTRIAL ZONES OF THAI NGUYEN PROVINCE EXECUTIVE SUMMARY CENTRAL PHILIPPINE UNIVERSITY DOCTOR IN PUBLIC ADMINISTRATION NGUYEN THI THU HA DECEMBER 2016 EXECUTIVE SUMMARY Title: Factors affecting the Satisfaction of Investors in Industrial Zones of Thai Nguyen province Total number of page: 148 Researcher: Nguyen Thi Thu Ha Degree Program: Doctor of Public Administration Institution: Central Philippine University Jaro, Iloilo City Region VI Rationale/Introduction of the Study As of 2015, in Thai Nguyen province, there are industrial zones which have been planned in details with the size of 1420 hectares of natural land Such industrial zones have attracted 133 investment projects, of which 61 FDI projects have the amount of registered capital reaching nearly billion USD, 72 domestic investment projects have the registered capital of 11,000 billion VND Up to 2015, there were 100 projects in operation, of which: the amount of FDI which was implemented was 6.2 billion dollars (accounting for 88.57% of total registered FDI), accounting for 86.11% of FDI disbursed in the whole province; The amount of implemented domestic capital is VND 7,700 billion (accounting for 70% of total registered domestic capital) (Phan Manh Cuong, 2015) The FDI projects mainly focus on the fields of industrial production, construction steel; producing portable mechanic tools for export; producing garments for export; producing electronic components; producing mobile devices, electronics and telecommunications; installing electronic products, etc and some other fields with strengths of Thai Nguyen province These achievements in the investor attraction have been largely due to the significant improvement of the investment environment of the province In the years from 2011 to 2014, Provincial Competitiveness Index (PCI) of Thai Nguyen province increased by 49 grade, from No 57 to No 8, shows the high appreciation of investors about the investment environment of the province Up to 2015, projects in Thai Nguyen industrial zones have gained the export value which reached 18,5 billion USD, accounting for 97,2% of total the export value of the province; created jobs for 95,000 labours (accounting for 57,9% of the amount of labours working in the sectors of industry and contruction ) with the average income reached 5.7 million VND/month/person; submitted 2,100 billion VND for the national budget (Phan Manh Cuong, 2015) 2 The above statistical data showed achievements in investment attraction, development of industrial zones in Thai Nguyen province which contribute significantly to the social economic development of the province However, there are still many shortcomings exist in the investment attraction, particularly investment attraction in industrial zones The investment attraction in the industrial zones is limited Up to December in 2015, out of industrial zones have not attracted any investment project The occupancy rate of the planned land area of the industrial zones is low By the end of 2015, the occupancy rate of the planned area just reached 36% According to Mai The Cuong (2005), in order to solve these difficulties in investment attraction into industrial zones, the local authority should consider investors as customers, and must aware of need and requests of investors in order to satisfy their desires The investor satisfaction with a locality is a competitive advantage that locality If the locality is able to meet the requirements of investors, there will be an positive impact on their satisfaction leading to investment decisions into the locality For Thai Nguyen Province’s industrial zones, in order to attract investment projects, satisfying needs of investors is very necessary and important In order to be able to satisfy investors, industrial zones need to define what factors affecting investor satisfaction and their impact (positive or negative), then find out solutions for these factors, by which improve the satisfaction of investors, attracting investment into industrial zones of Thai Nguyen province There are some studies on investor satisfaction or factors affecting the investor satisfaction but most of them are papers published on journals, such as: “Factors affecting foreign investor satisfaction in industrial zones – quantitative model and policy implications” (Dinh Phi Ho et al., 2011b) – a research on industrial zones in Binh Duong province; “Factors affecting foreign investor satisfaction about tax support service – a case study in Dong Nai province” (Dinh Phi Ho et al.,2011c) Besides, the article “Factors affecting foreign direct investment attraction – a case study of Thai Nguyen province” (Trinh Viet Hung et al., 2014) was conducted based on the survey about the investors’ perspectives but not research on the investor satisfaction There are some other studies about the factors affecting the investor satisfaction but they are just the master theses, such as: “Investment environmental factor affecting investor satisfaction: case study in Phu Quoc distric, Kien Giang province” (To Hoang Phuong, 2013), “Factors affecting investor satisfaction in Ben Tre province” ( Bo Quang Thuy, 2015) From the review of the related studies as summarized above, the author found that up to now, there is no large scale studies like a doctoral dissertation on factors affecting on investor satisfaction, particularly in the industrial zones of Thai Nguyen province 3 After recognizing and taking this research opportunity , this study was entitled “Factors affecting the Satisfaction of Investors in Industrial Zones of Thai Nguyen province”, with using quantitative methods will be a new scientifically significant research direction and contribute to enhance the investment attraction in these industrial zones Statement of the Problem General This research intends to analyze factors affecting the satisfaction of investors in industrial zones of Thai Nguyen province, and on that basis, proposes some policy solutions in order to enhance the satisfaction of investors, thereby increase the investment attraction as well as attract more investors to the industrial zones of Thai Nguyen province Specific - Assess the satisfaction of investors about the industrial zones of Thai Nguyen province where they are investing; - Analyze the factors affecting the investors’ satisfaction in the industrial zones of Thai Nguyen province; - Propose some policy recommendations in order to enhance the investors’ satisfaction, to increase the investment attraction and to attract many investors in the industrial zones of Thai Nguyen province Research Design and Procedure The survey research design will be used in this study In addition, a descriptive document analysis will be done Secondary data will be provided by Thai Nguyen Provincial Statistical Office and Management Authority of industrial zones of Thai Nguyen province Questionnaires will be prepared and distributed to investors in the industrial zones to survey on their satisfaction with the place where they are investing The study will be conducted through two main steps: (1) Preliminary study and (2) Official study The draft scale is built on the theoretical basis of quality of service (namely SERVQUAL scale of Parasuraman et al., 1988), theory of the investment behavior and the Local Marketing theory and specificity of research that is to study factors affecting the satisfaction of investors To adjust the scales, the qualitative method was used in this study, through the pilot study with 20 investors who are investing in industrial zones of Thai Nguyen province and be able to assess those industrial zones Through the results of this study, the draft scale was adjusted to give the official scale.The official scale was used for official study A quantitative research was used for official study with the direct interview technique for investors This study was performed to test scale models and theoretical models Scales were preliminarily evaluated by reliability coefficient method through Cronbach alpha and Exploratory factor analysis (EFA) Study Population and Sampling Technique Population: Investors investing in the industrial zones of Thai Nguyen province Sample size depends on the analysis method This study uses the method EFA According to Hair et al (2006), the minimum sample size for EFA is 50, preferably 100 and the ratio of observation / measurement variable is 5/1 This study has used the EFA tool with 42 observation variables, so the sample size is at least 210 Meanwhile, according to reports of the Industrial Zone Management authorities, the number of enterprises operating in the industrial zones of Thai Nguyen province at the time of survey is 82 Therefore, the author conducted a survey on the 82 enterprises, specifically, interviewed respondents in each enterprises So the sample size of this study is 246 The method of selecting respondents: The study selected the respondents who meet the requirements of the following criteria: They are investors who are the capital owners in the enterprises in Thai Nguyen industrial zones They are the senior managers of their enterprises, including: Manager, Deputy Manager, Head of Department, Deputy Head of Department These are the people who are most capable of understanding the operational status of their enterprises and understand the issues related to the industrial zones in Thai Nguyen province in general, especially the industrial zones where they are operating The author conducted surveying 82 enterprises operating in industrial zones with the survey sample, as follows: - Total number of samples sent to the survey: 246 - Total number of samples collected after the survey: 239 - Number of invalid samples due to the lack of information: - Number of valid samples: 236 Thus the number of samples for research is 236 (This sample size is qualified for the analysis of the research data) Data Collection and Instrumentation The data collection in this study has been gathered in form of primary and secondary data in order to implement the qualitative and quantitative analysis Because this study is focused on particular research questions, data were collected with the use of a survey questionnaire Data was provided by Industrial Zone Management Authority of Thai Nguyen province and by enterprises operating in Thai Nguyen industrial zones 5 The primary data collection was conducted through implementing survey using questionnaires The questionnaires will be delivered to the office of enterprises in industrial zones by the researcher and her assistant, through the help of the Industrial Zone Management Authority Secondary data was collected from data of reports and documents in provincial departments and the Industrial Zone Management Authority In addition, data and research information also were collected from publishes such as: Book, formal website, research journals etc The researcher collected the data of enterprises operating in industrial zones and their characteristics from Industrial Zone Management Authority Data Processing and Analysis The collected data was processed with the SPSS 20.0 software After encoding and cleansing, the data was analyzed through two steps: (1)Descriptive statistical analysis; (2) The quantitative analysis of factors affecting the satisfaction of investors through three steps: (1) Test the quality of scales; (2) Exploratory Factor Analysis (EFA); (3) Multiple Regression Analysis (MRA) Findings The followings were the major findings of the study: (1) In recent years, the Thai Nguyen province's investment environment has been increasingly improved and attractive to investors The province has favorable natural conditions, namely: important socio-economic geographic location in the Northern mountainous areas; good transport connections with other major economic centers resulting in favorability for economic activities of businesses; variety of types of mineral resources that gives Thai Nguyen a good comparative advantage in the development of metallurgical industry, mining, production of construction materials Besides, the province also has a system of engineering economic infrastructure which was built quite well, ensuring the business activities and the socio-economic activities in the province In addition, political and order security stability, and the good healthcare supplies, as well as abundant labor resources who are trained at all levels are also important factors contributing in attracting investors in recent years (2) The evaluation of the investors or the enterprises on the investment environment of Thai Nguyen province is expressed through Provincial Competitiveness Index (PCI) Before 2012, the Provincial Competitiveness Index of Thai Nguyen was only passable However, since 2012, the Provincial Competitiveness Index of Thai Nguyen has had got a marked increase and has ranked higher The significantly increase of PCI in recent years (ranked 57 in 2011, ranked 17 in 2012 and ranked in 2015) has created a huge impression on investors and has contributed in increasing investment attractiveness of the province This achievement has been derived from the strategy to improve PCI of the province Since then, the province has created the synergy of the whole political system to find solutions to reform administrative procedures improve the investment environment, the production environment and business environment for enterprises, enhance PCI right in 2012 and in the following years (3) The study has described and analyzed some of the characteristics and organizational structure of the Industrial Zone Management Authority The contribution of the Management Authority was also analyzed, such as being active to timely grasp the difficult time incurred during the process of production and business investment of enterprises, providing materials and regulation documents on mechanism and investment preferential policies; implementing well the investment promotion activities; concentrating on inspecting, supervising and handling violations, etc These have contributed greatly in improving the investment environment of Thai Nguyen province in general and the industrial zones in particular, have increased the attractiveness to domestic and foreign investors in order to increase the attraction of investment projects in the industrial zones of the province However, the industrial zone management authority has encountered some difficulties in some activities, such as the investment promotion to the industrial zones has been not effective, focused resources for the compensation for ground clearance and synchronous infrastructure creation in the industrial zones are limited, etc.; Overlaps and inconsistencies in the legal system related to the development of the industrial zones; the planning and management planning have many problems; Legal system related to the state management on planning - building in the industrial zone have been not clear; Sense of observance the law related to investment, production and business activities of some enterprises in industrial zones have been not good (4) The investment policies of Thai Nguyen province and the investment preferential policies in the industrial zones of the province are important conditions for attracting investment, are one of the first concerns of the investors before they decide to or not to invest in the industrial zones in the province After collecting secondary document from the industrial zone management authority, the author has found that besides applying preferential policies to attract investment to the province under Decision No 41/2012/QD-UBND dated 11/15/2012 of People's Council of Thai Nguyen Province about promulgating Regulations on policies of the incentive and support for investment in Thai Nguyen province, the province's industrial zones have applied some other preferential policies The industrial zones have applied some investment preferential policies of their own, such as: Decision No 3296/2000/QD-UB of Thai Nguyen People's Committee dated 13/10/2000 (for Song Cong I and II IZ); Decision No 08/2013/QD-UBND of Thai Nguyen People's Committee dated 12/06/2013 on the issuance of investment incentives for project of Thai Nguyen Samsung high-tech combination of Thai Nguyen Vietnam Samsung Electronics Co., Ltd., project of manufacturing of microprocessors and integrated circuits of Samsung Electro - Mechanics Co., Ltd and 02 high-tech projects of the two subsidiaries of Samsung Group in Yen Binh industrial zone (for Yen Binh IZ); etc (5) To assess the state of the factors affecting the satisfaction of investors, the study has analyzed and evaluated the characteristics of technical infrastructure and service infrastructure of the industrial zones in Thai Nguyen province In of the industrial zones in the province, Quyet Thang industrial zone and Song Cong industrial zone have not been constructed the infrastructure yet Meanwhile, Song Cong industrial zone, Diem Thuy industrial zone, Nam Pho Yen industrial zone and Yen Binh industrial zone have constructed technical infrastructure and service infrastructure In particular, Yen Binh industrial zone has good infrastructure, ensures well for enterprises to make production and business activities Song Cong industrial zone and Diem Thuy industrial zone have had the synchronized technical infrastructure which has been basically suitable for the business and production activities of enterprises However, these two industrial zones have not had got full service infrastructure for enterprises Nam Pho Yen industrial zone is the industrial zone which has least attractive infrastructure among the industrial zones in the province, because lots of items in the technical infrastructure have not been synchronized The study also pointed out a situation in which many enterprises in the industrial zones are currently using the services providers outside the industrial zones because this industrial zone lacks of services providers or don't meet the demand of enterprises on those services However, basically enterprises have met their demand on the services because they can access the service providers in the neighborhood areas without spending too much cost and time (6) The study analyzed and assessed the situation of attracting investment in industrial zones in Thai Nguyen province through the data on the occupancy rate of the industrial zones, the number of investment projects and total registered capital on the industrial zones in the period of 2013 - 2015, specially made in-depth analysis on FDI Overall, occupancy rate in the area planning of industrial zones in Thai Nguyen province has been not high Up to 12/2015, among industrial zones in operation, Diem Thuy industrial zone has had the highest occupancy rate (65%), followed by Yen Binh industrial zone (60.71%), Song Cong industrial zone has the occupancy rate of 50% (Ranking rd), and Nam Pho Yen industrial zone has the lowest occupancy rate (39.7%) Song Cong industrial zone and Quyet Thang industrial zone have not been in operation Their occupancy rates have been After collecting, synthesizing, analyzing secondary data on investment in the industrial zone in the province in the period of 2013 - 2015, the study has shown results of attracting investment In terms of the total number of investment projects in industrial zones in Thai Nguyen province, it has the increase in the past three years of the period of 2013 - 2015 In terms of the number of investment registered capital, this number of capital was VND 4,560.6195 billion in 2015 (decreased by 93.23% compared to 2014) This dramatic reduction was due to the reduction of FDI in the industrial zones in 2015 ( VND 4,083.5795 billion, decreased 93.9% compared to 2014) The domestic capital investment in industrial zones in Thai Nguyen province in recent years is mostly from limited liability companies and joint stock companies in Vietnam Yen Binh industrial zone, in 2014 and 2015, had not attracted anymore of domestic investment projects The domestic investment project in 2015 was only in Song Cong industrial zone and Diem Thuy industrial zone FDI capital resources always play a key role in investment capital in industrial zones in Thai Nguyen province (greater than 85% in the years of 2013 to 2015) The study has shown that most of the domestic investment projects in industrial zones in Thai Nguyen province in recent years are in the field of processing - manufacturing industry (58.33% of the total project in the period of 2013-2015) However, compared to the inflows of FDI into the Processing - manufacturing industry sector in the industrial zones in the province, the number of domestic investment has been really tiny Foreign investors in recent years of Thai Nguyen province have particularly interested in investing in the field of electronics industry and the production of auxiliary components for electronic devices About FDI capital resources in the industrial zones, investors were from the countries such as Korea, China and Japan (mostly from Korea) Percentage of investment capital from Korea in the total of FDI investment capital in the industrial zones of the province in 2013, 2014 and 2015, respectively were 99.6%, 99.65% and 76.68% (7) To determine the factors affecting the satisfaction of investors in industrial zones in Thai Nguyen province, the author and her partners have conducted a survey of 246 investors holding management positions in 82 enterprises in operation in the industrial zones in the province by the questionnaire The number of valid questionnaires collected has been 236 Based on primary information collected from the questionnaires, the author has compiled and analyzed the survey samples (236 respondents) based on the criteria of gender, work position, number of years of work experience The study has also synthesized, analyzed some general characteristics of the 82 enterprises in operation in the industrial zones, such as the location of the enterprise, type of enterprises (enterprises with 100% foreign capital account for 60.98%, enterprises with 100% domestic capital account for 39.02%), Business categories (enterprises operating in the sector of manufacture and processing account for 93.9%, enterprises operating in the service sector account for 3.66%, enterprises in the field of Construction account for 2.44%), the number of operation years of enterprises, their capital investment and number of employees Through the collection of information on employee scale and capital scale of the surveyed enterprises, the study has found that the majority of businesses in operation in the industrial zones of the province are enterprises of small and medium scales, and the proportion of FDI enterprises in the total enterprises was more than 60% (8) The study has entered the data on satisfaction levels of 236 investors on the industrial zones under 5-point Likert scale into SPSS 20.0 software Through the processing steps in SPSS, the study has showed the average value of the evaluation of the investors of each items and their standard deviation Before putting scales (TAN, REL, RES, ASS, EMP and SAT) with 42 observed variables into exploration factor analysis model, the study had tested the quality of these scales and had eliminated observed variables of RES scale The study has carried out exploration factor analysis for the scales (independent variables) including TAN, REL, RES, ASS, EMP The analysis result showed the KMO coefficient equal to 0.831, and Bartlett test had statistical significant of 0.0000, which meaned that the exploratory factor analysis model was suitable for real data, and observed variables were correlated linearly with the representative factors EFA analysis results also showed that there were elements extracted at Eigenvalue of 1,076, Eigenvalue of these elements had the value of more than 1, therefore the number of factors that had been identified is Besides, the total variance extracted is 62.722% (greater than 50%) This meaned that 62.722% change of the factors explained by the observed variables (the items) Based on the results shown in Rotated Component Matrix Table, the study has shown that there were six factors that represent the issues affect the satisfaction of investors with the observed variables of factors arranged differently from initial theoretical models, namely: F_ABI; F_TAN; F_RES; F_UND; F_EMP; F_CRE The results of exploratory factor analysis for the dependent variable (SAT) showed the KMO coefficient equal to 0.712 satisfying the conditions of