Summary of the Doctoral thesis on Economic development: Main factors affecting competitiveness of small and medium enterprises in Vinh Phuc province

The dissertation from the theoretical research institution on competitiveness and the basis of implementing the main factors of impact on the competitiveness of small and medium-sized enterprises, proposing solutions to improve competitiveness. of small and medium enterprises in the locality of Vinh Phuc province.

MINISTRY OF EDUCATION AND TRAINING

MINISTRY OF PLANNING AND INVESTMENT

Development Strategy Institute

DAO TRUONG THANH

MAIN FACTORS AFFECTING COMPETITIVENESS

OF SMALL AND MEDIUM ENTERPRISES

IN VINH PHUC PROVINCE

Field : Economic development Code : 9 31 01 05

SUMMARY OF THE DOCTORAL THESIS ON

ECONOMIC DEVELOPMENT

HANOI - 2019

The thesis is completed at:

DEVELOPMENT STRATEGY INSTITUTE

Instructors:

1 Assoc Prof., Dr Le Xuan Ba

2 Assoc Prof., Dr Vu Thanh Son

Reviewer 1 : Prof., Dr Ngo Thang Loi

Reviewer 2: Assoc Prof., Dr Nguyen Chien Thang Reviewer 3: Assoc Prof., Dr Ngo Quang Minh

The thesis is presented at the Doctoral Dissertation Council

Development Strategy Institute

At on date month 2019

Thesis can be found at:

1 The National Library, Hanoi

2 The Library of Development Strategy Institute,

Ministry of Planning and Investment

PREAMBLE

1 Urgency of the topic:

Today, international integration has become an indispensable, objective trend, taking place strongly in all areas of the social life, especially in the socio-economic development International integration creates large and rich markets and difficulties for businesses; Competitiveness needs to be stronger and more drastic, especially for small and medium enterprises

Currently, small and medium enterprises in Vinh Phuc province face many major challenges in business activities, especially in terms of product consumption and capital mobilization for development On the other hand, small and medium enterprises have many limitations: Quality and efficiency of production and business activities are still very low; less developed technology qualification; poor creative capacity, labor productivity; Cooperation, affiliation, joint venture between enterprises is still limited, weak, From requirements and demands of practice, research and assessment of the situation to propose solutions to improve the competitiveness of small and medium enterprises in Vinh Phuc province is a necessary task, which needs the support of the branches and levels from the central to local levels

With the above view and approach, the researcher chooses the topic

“Main factors affecting competitiveness of small and medium-sized

enterprises in Vinh Phuc province”

2 Objectives of the study

- General objectives

From the basis of theoretical research on competitiveness and practical basis, the main factors affecting competitiveness of small and medium enterprises, it is proposed solutions to improve the competitiveness of small and medium enterprises in Vinh Phuc province

- Specific objectives

+ To develop a theoretical basis for competitiveness and factors affecting competitiveness of small and medium enterprises

+ To assess the current situation of competitiveness, analyze strengths, weaknesses, causes of weakness in competitiveness of small and medium enterprises in Vinh Phuc province

+ To analyze the impact of factors affecting competitiveness of small and medium enterprises in Vinh Phuc province

+ To propose a system of solutions to improve the competitiveness of small and medium enterprises in Vinh Phuc province in the context of international integration

3 Tasks

- To implement the topic, the author will study and review the domestic and foreign study projects related to the topic, develop the study methods, determine the objectives and scope of study, identify questions of

the topic

- The author will analyze theoretical issues about competitiveness, competitive study models and factors affecting competitiveness of small

and medium enterprises

- The study aims to assess the status of competitiveness, affirm strengths, weaknesses, analyze the causes of weakness in the

competitiveness of small and medium enterprises in Vinh Phuc province

- The study will analyze and clarify factors affecting competitiveness

of small and medium enterprises in Vinh Phuc province

- After analyzing the situation, it is proposed solutions to improve the competitiveness of small and medium enterprises in Vinh Phuc province in the context of international integration through overcoming the negative

impact of the factors

4 Object and scope of the study:

- Object:

The main object is the factors affecting competitiveness of small and medium enterprises in Vinh Phuc province

- Scope:

+ Space: Focusing on studying factors affecting competitiveness of

small and medium enterprises in Vinh Phuc province

+ Time: Data and figures is collected in stage 2014-2018; solutions

are proposed for Vinh Phuc province till 2025

+ Content: The thesis focuses on studying the theoretical basis of

competitiveness and factors affecting competitiveness of small and medium enterprises Assessing the situation of competitiveness, analyzing strengths, weaknesses, causes of weakness in competitiveness of small and medium enterprises in Vinh Phuc province The thesis analyzes the impact

of factors affecting competitiveness of small and medium enterprises in Vinh Phuc province In particular, the focus is on 10 factors affecting competitiveness of small and medium enterprises in Vinh Phuc province,

including: (1) Enterprise management capacity; (2) Capacity of creating

relationships; (3) Human resources of enterprises; (4) Financial capacity; (5) Marketing capability; (6) Logistics activities; (7) State policy; (8) Regional natural, economic, cultural and social conditions; (9) Scientific and technological progress; (10) International integration

+ Systematize and clarify the theoretical issues and practical summaries of competitiveness of small and medium enterprises in the context of international integration

+ Determine that competitiveness is the internal resources and strengths that small and medium enterprises can maintain, improve the rankings of enterprises in each product and service industry in the market,

in the locality in general and Vinh Phuc province in particular

- About practicality

+ The thesis assesses the real situation of competitiveness of small and medium enterprises in Vinh Phuc province on the basis of the criteria built comprehensively and specifically, points out the subjective and objective factors affecting the competitiveness of small and medium enterprises in Vinh Phuc province

+ The thesis proposes views, orientations and identifies a system

of synchronous solutions to improve the competitiveness of small and medium enterprises in Vinh Phuc province in the context of international integration

+ The study results of the thesis are the source of scientific information on small and medium-sized enterprises development for researchers, advisory agencies, policy makers, entrepreneurs in the whole country in general and Vinh Phuc in particular

7 Structure of the thesis

In addition to the Preamble, Conclusion, References, Appendixes, the thesis also has the following main contents:

Chapter 1: Overview of study projects related to the topic

Chapter 2: Basis of reasoning and models to study factors affecting

the competitiveness of small and medium enterprises

Chapter 3: Actual impact of factors on competitiveness of small and

medium enterprises in Vinh Phuc province

Chapter 4: Some solutions to improve the competitiveness of small

and medium enterprises in Vinh Phuc province

1.1.3 Projects on the development status of small and medium enterprises in Vietnam

1.1.4 Projects on competition and competitiveness in Vietnam

1.2 The research on factors affecting the competitiveness of enterprises

The studies have generalized the theoretical basis of competitiveness, improved competitiveness of enterprises The studies have deeply mentioned the main factors affecting competitiveness as well as assessing the status of competitiveness of enterprises The authors also set out criteria to assess the competitiveness of small and medium enterprises: based on management and financial revenue and profit The main factors affecting the competitiveness of businesses are now internal nature of enterprises such as resources, qualifications, science and technology,

and the environment of policies and impacts of socio-cultural political economy

1.3 The study gap and the thesis issues

- The study gap:

The analysis shows that, until now, there are quite a lot of studies on the competitiveness of small and medium enterprises in and outside the country However, it is limited, especially the doctoral theses that comprehensively assess the current situation of competitiveness, affirm strengths, weaknesses, analyze the causes of the weakness in competitiveness of small and medium enterprises in Vinh Phuc province Previous studies have not really focused on analyzing and clarifying the effects of factors affecting competitiveness of small and medium enterprises in Vinh Phuc province At the same time, after analyzing the current situation, there have not been proposed synchronous solutions, focusing on improving the competitiveness of small and medium enterprises in Vinh Phuc province in the context of international integration through overcoming the negative impacts of factors These are

the study gaps that the topic will solve in the next content

- The thesis issues focused on solving:

- About the model of factors affecting competitiveness of enterprises: The thesis inherits and approaches according to the Macro Environment

Theory Model (PEST) for study in its thesis

- Regarding the basic factors affecting the competitiveness of small and medium enterprises included in the study are: Material factors needed

to create products, goods and services of enterprises; Factors including human resources and management system of enterprises; Market conditions, social conditions related to business operations; The relationship between businesses and businesses, with relevant agencies;

with customers, local and residential communities

- The thesis will focus on studying factors affecting the competitiveness of small and medium enterprises in Vinh Phuc province, giving a study model, this is an important and decisive factor to the development of enterprises in the context of market economy The thesis also needs to study, set out basic criteria to assess the competitiveness of enterprises and propose solutions to improve the competitiveness of small and medium enterprises in Vinh Phuc province in terms of current integration

1.4 Proposing the study model for the topic

CHAPTER 2: BASIS OF REASONING AND MODELS TO STUDY FACTORS AFFECTING THE COMPETITIVENESS OF SMALL

AND MEDIUM ENTERPRISES

2.1 Competition and competitiveness of small and medium enterprises

2.1.1 Characteristics and roles of small and medium enterprises 2.1.2 Competition and competitiveness of small and medium enterprises

2.2 Some competitive models of enterprises

- PEST Model ((PEST macro environment theory)

- Porter Model (Model of industry environment competition)

- Value chain model (Theory of internal environment)

- SWOT Model

2.3 Factors affecting the competitiveness of small and medium enterprises

- Enterprise management capacity

- Capacity of creating relationships

- Human resources of enterprises

- Financial capacity

- Marketing capacity

- Logistics activities

- Service organization capacity

- Quality of goods and services of enterprises

- Operational experience of enterprises

- Corporate social responsibility

- State policy

- Regional natural, economic, cultural and social conditions

- Scientific and technological progress

CHAPTER 3: ACTUAL IMPACT OF FACTORS ON

COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES

IN VINH PHUC PROVINCE 3.1 Overview of Vinh Phuc province

3.1.1 General introduction

Vinh Phuc is a province in the key economic region in the North, the gateway of the Capital, near Noi Bai International Airport, a bridge between the Northwest provinces with Hanoi and the Red River Delta, thus the province plays a very important role in regional and national economic development strategies Vinh Phuc province has been approved

by the Prime Minister to build 20 industrial parks, and 41 industrial clusters in Vinh Phuc industrial development plan to 2020 and oriented to 2030

3.1.2 The development situation of small and medium enterprises

in Vinh Phuc

- About the number of enterprises: As of the end of 2018, the

number of small and medium enterprises in Vinh Phuc province is 9,875 enterprises, accounting for 97.5% of the total number of registered enterprises in the province

- About structure of enterprises:

+ Enterprise size: Number of micro enterprises accounts for about

53.8%; Number of small businesses accounts for about 35.5%; Number of

medium enterprises is about 10.7%

+ Business area: Agriculture, forestry and fishery sector accounts for

about 1.0%; Industry and construction sector is about 46.5%; Commercial

and service sector is about 52.5%

- Characteristics of small and medium enterprises in Vinh Phuc province

+ The production and business premises have been built fairly

synchronously

+ Access to credit capital, especially preferential credit capital due to

difficult complicated loan conditions

+ Outdated technological processes, production techniques, less

competitive products

+ Operating under the condition that the system of small and medium

enterprise development assistance agencies has not been synchronously

formed from the central to local levels

+ Staff working in the field of small and medium enterprise

development is inadequate, limited capacity and most have not been trained and retrained in terms of supporting the development of small and

medium enterprises

+ Most small and medium enterprises have weak financial capacity,

inefficient production and business plans, so it is difficult to get bank

loans

+ The capacity and vision of small and medium enterprises is

limited, most enterprises do not have long-term development strategies

3.1.3 Potentials and development advantages of small and medium enterprises in Vinh Phuc

- About natural conditions and geographical location

- About cultural and educational conditions

- About economic development conditions

3.2 Analyzing the structure of study models and exploratory factors in the study models of small and medium enterprises in Vinh Phuc

3.2.1 Data sources, data and research models

From the construction of study methods, proposed study models, the study has directly interviewed 15 experts and scientists with professional qualifications and experience in the field of study on small and medium enterprises, survey results are shown in the following tables:

Table 3.1 Expert interview results

Factors

Agreement

Quantiy Percentage

%

Source: Author's calculations

The authors proposes a formal model to study the main factors affecting the competitiveness of small and medium enterprises, including

following ten components:

1- Enterprise management capacity

2- Capacity of creating relationships

3- Human resources of enterprises

4- Financial capacity

5- Marketing capacity

6- Logistics activities

7- State policy