Đánh giá sự ảnh hưởng của chiến lược nhà nước tới sự thúc đẩy cạnh tranh của các doanh nghiệp viễn thông việt nam cơ sở để khuyến nghị chính sách sử dụng mô hình phân tích pest

To implement this study, the author answered: To evaluate the competitiveness of the telecommunications company in Vietnamn; To determine the impact of the policies of the state on the d

THAI NGUYEN UNIVERSITY

Socialist Republic of Vietnam

SOUTHERN LUZON STATE

UNIVERSITY Republic of the Philippines

" Assessment of Implementation of Government Strategies in Improving Competitiveness of Telecommunication Companies in Vietnam: Basis

for Policy Redirection using PEST Analysis and Solution ”

DOCTOR OF BUSINESS ADMINISTRATION

STUDENT: PHAN THẾ HÙNG

CLASS: DBA1

Hà nội, 2013

ACKNOWLEDGEMENT

I would like to express our most sincere thanks to the Management Board of the Southern Luzon State University, Thai Nguyen University,, the teacher of the school has helped me facilitate the learning process throughout

I would like to express sincere gratitude and profound Professor Dr Milo Placino enthusiastic teacher who have dedicated guidance, encouragement, spend time and exchange orientation for me during this research

I would like to express my sincere thanks to the telecomunication enterprises VNPT,Viettel,SPT,VTC in Ha noi and Ho chi minh has helped me research material, through a questionnaire survey

I sincerely thank Ministry of information and communications, Information and communication public manager school, colleagues and classmates DBA1 facilitated enthusiastic help and share my experience to help complete the thesis

Finally, I would like to send the gift to the heart of my family has passed enthusiasm and encouragement to complete my thesis

Phan The Hung

REPRESENTATIONS

I hereby declare that this is my own research The figures mentioned in the thesis are correct The conclusion of the thesis has not been published in any other work

Phan The Hung

Abstract

In the past years achievements of the ICT sector has made a significant, bringing great benefit to society The number of telecom business increased, the dynamics of the telecom business increased, telecommunications cost reduction, quality telecommunications services are gradually improving However, with the development - many problems arising in this industry:The disputeservice; The exclusive license; The human problem; The issue of restructuring of state-owned corporations; The issue of managing telecommunication infrastructure; Management services, management These issues are directly related to government policy and regulations, development policies in recent years, as well as issues of economic, social, technological

The assessment of the macroeconomical impact of government policy through the evaluation of the implementation of government policy in the competitive telecommunications business model with PEST is an essential need and then finding make recommendations for policy changes

To implement this study, the author answered: To evaluate the competitiveness of the telecommunications company in Vietnamn; To determine the impact of the policies

of the state on the development and competitiveness of telecommunications industry in Vietnam; To draft policies that will further improve the competitiveness of the telecommunication industry in Vietnam

Scope and limitation of the study: Some state macroeconomic policies, especially the operation of information and communications; The level of implementation of government policies for the development of competitive telecommunications corporations Vietnam: Group of Vietnam Post and Telecommunications (VNPT); Viettel Corporation (Viettel); Vietnam Multimedia Corporation (VTC); Sai Gon Poster Corporation (SPT)

Results of this study will showed that the level of implementation of government policies for the development of competitive telecommunications businesses in Vietnam This study will clarify somewhat the impact of the policy as well as the macro factors affecting the development of competitive telecommunications businesses, so we can choose the more appropriate solution

The study will help policy makers to have a clearer view of the telecommunications activities, the macroeconomic factors as well as the impact of these factors to the competition in the telecommunications business Since then there is a reasonable adjustment, the right time to ensure harmony between the interests of the state, business and civil society in terms of development technology and ICT services, international economic integration

TABLE OF CONTENTS

1 Introduction 12

2 Background of the study 15

3 Statement of the problem 20

4 Significance of the study 20

5 Scope and limitation of the study: Scope of the study and limitation 21

5.1 Subject of the study 21

5.2 Scope and limitations of the study 21

6 Definition of terms Definition of terms 22

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES 25 1 Literature review 25

2 Conceptual frameworkConceptual framework 29

3 Characteristics of the competitive environment in telecommunications business 36

3.1 Influence of the political system, laws and policies: the Telecommunications Law, the Enterprise Law, Investment Law, Competition Law 36

3.2The capacity depends on the manager 37

3.3 The characteristics of the competitive relationship between the enterprises in the field of high technology products and intangible services 38

4 Theoretical framework 39

4.1 PEST model 39

4.2 The PEST elements of the telecommunications industry 41

CHAPTER III: Methodology 44 1 Research design 44

2 Subject of the study 44

3 Research instrument 44

4 Subjects of investigation 45

5 The survey content 45

CHAPTER IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 52 1 POLITICAL FACTORS, INSTITUTIONS, GOVERNMENT LEGISLATION AFFECTING THE MARKET COMPETITION IN TELECOMMUNICATIONS 62

1.1 The institutions and laws of the state of the competitive telecommunications business in Vietnam 62

1.2 Assessing the implementation of government policies for the development of telecommunications competition 68

1.3 Analysis of results surveys for Policy elements (P) 72

2 ECONOMIC FACTORS (E) THE IMPACT OF COMPETITIVE MARKETS IN TELECOMMUNICATION Error! Bookmark not defined 2.1 The economic situation in Vietnam in 2012, socio-economic indicators in 2013 79

2.2 Investment policies, tax incentives and government investment in infrastructure and telecommunication services to promote effective competition in the telecommunications business 81 2.3 The economic integration and participation of many economic sectors to develop competitive telecommunications 87

2.4 Analysis of results surveys for Economic elements (E) 91

3 SOCIAL FACTORS (S) 97

3.1 Workforce ITC with the development of the Telecommunications business 97

3.2 Implementation of programs of public telecommunications and telecommunications development 103

3.3 Analysis of results surveys for Social elements 107

4 TECHNOLOGICAL FACTORS AFFECTING THE TELECOMMUNICATIONS MARKET (T) 113

4.1 The impact of technology convergence factors for the telecommunications sector 113

4.2The impact of factors of state investment in research and development competitive telecommunications 116

4.3 Analysis of results surveys for Tenical elements (T) 119

C ACHIEVEMENTS, RESTRICTIONS AND CAUSE 126

1 THE ACHIEVEMENTS 126

2 RESTRICTIONS AND CAUSE 128

2.1 Restrictions 128

2.2 Cause of the limitations mentioned above 129

CHAPTER V : SUMMARY, FINDINGS, CONCLUSIONS AND

1 Solutions related to policy factors (P) 131

2 Economic Solutions (E) 134

3 Solutions related to social(S) 136

4 Solutions related technology (T) 140

5 CONCLUSION 125

LIST OF TABLES

Table 3.number of documents relating to Telecommunications Competition last 5 years 61 Table 4.Analysis of influence factors (x1-x4) of P to each telecommunication companies 73 Table 5.Determine the meaning of the elements X1, X2, X3, X4 74

Table 7.Assess the impact of the P element of competition among businesses 77

Table 9.Analysis of influence factors (x5-x8) of P to each telecommunication companies 92 Table 10.Determine the meaning of the elements X5, X6, X7, X8 93

Table 12.Assess the impact of the E element of competition among businesses 97

Table 14.Analysis of influence factors (x5-x8) of P to each telecommunication companies 108 Table 15.Determine the meaning of the elements X9, X10, X11, X12 109

Table 17.Assess the impact of the S element of competition among businesses 113 Table 18.Analysis of influence factors (x13-x16) of T to each telecommunication companies 120 Table 19.Determine the meaning of the elements X1, X2, X3, X4 121

Table 21.Assess the impact of the P element of competition among businesses 124

LIST OF FIGURES

Figure 4.Number or universities and colleges offering ICT traning 100

ABBREVIATIONS

2G+ or 2.5 G Second Generation Enhanced

ADSL Asymmetric Digital Subscriber Line

AMPS/NMT Advanced Mobile phone System/Nordic Mobile

Telephony

EDGE Enhanced Data Rate for Global Evolution

FOMA Freedom of Mobile Multimedia Access

GSM Global System for Mobile Communications HSCSD High-speed Circuit Switched Data

ICT Information and communications technology

PHS Personal Handyphone System

R&D Reseach & development

SPT Saigon Post and Telecommunications Service

Corporation Viettel Military group telecommunications

CHAPTER I: INTRODUCTION

1 Introduction

Telecommunications, Vietnam's IT industry in recent years has been seen significant development It has met as a critical infrastructure for economic and social development, required by the innovation of the country as well as it meets the needs of providing essential services to people and contributes significantly to improvement on people's knowledge, improves social and cultural life of the people In order to gain the success the Government has had the right policies Government has made policies in each period for telecommunications development that appropriate for socio-economic development

The opening of the telecommunications market promotes competition among firms This has created many positive effects such as the charges are step by step significantly reduced Nowadays more and more people have been able to get access to the telecommunications services The telecom market is more and more competitive and there are major changes, new technology is applied rapidly The quality of service

is improving and charge is lower The sales of the telecommunications industry increased 25-30% rate in the period 2001-2010 It becomes major contribution to the state budget, to poverty reduction The gap between regions, between urban and rural areas has narrowed Beside that it ensures the safety and security information

The IT industry has become an important economic sector, with annual growth rate higher than any other areas The contribution to GDP growth increases year to year The whole IT industry average revenue growth in the period 2001-2009 represented 20-25% per year By the end of 2010, the revenue of the software industry and digital content industry reached 2 billion USD, the hardware industry revenue reached 5.6 billion USD, revenue of telecommunications services reached over 9.4 billion USD, bringing the total revenue of telecom and IT industry in 2010 to 17 billion USD, 19 times higher than that in 2000

On September 22, 2010, the Prime Minister signed Decision No 1755/QD-TTg to approve the National Strategy on “Transforming Viet Nam into an Advanced ICT country” (referred to as The Strategy from now on) This reflects the political

determination of the Party of Viet Nam and the Government in developing ICT industry

to keep pace with countries in the region and the world

The Strategy sets out objectives as: to develop ICT human resources to international standards; to build ICT industry, especially software industry, digital content industry and IT services, to become a leading economic sector, so as to contribute significantly to GDP growth and exports; to set up a broadband information infrastructure in the whole country; to apply IT effectively in all socio-economic aspects and national security, defense The annual growth rate of the ICT industry income is to reach at least 2-3 times the growth rate of GDP By 2020, the contribution of ICT industry to GDP should be from 8% to 10%

Based on these views and objectives, The Strategy identifies six groups of tasks focusing on issues such as: developing ICT human resource; developing ICT Industry; continuing to develop and improve the telecommunications and IT infrastructure; building and deploying suitable supporting solutions for providing digital information to households; applying IT effectively in government agencies, enterprises and the society; strengthening research capacity in the ICT sector; mastering gradually and developing technologies for creating new products The Strategy also stated six solutions: enhancing information dissemination regarding the Strategy; promoting the socialization of investment in ICT, especially in the development of broadband telecommunications infrastructure; providing investment incentives for priority areas; building and improving institutional frameworks; establishing a specific mechanisms and renewing policies; promoting international cooperation

( White book 2011 page 16)

The ICT state management system was formed in order to promote and develop

ICT sector In 2002, the National Assembly approved the establishment of the Ministry

of Post and Telematics, responsible for the development of post, telecommunications and IT In 2007, the Ministry of Information and Communications was established on the basis of the Ministry of Post and Telematics with an additional responsibility for the areas of press and publishing Regulation in provinces is implemented and in charged

by local Departments of Information and Communications IT application dedicated

departments/units were established in all central ministries/agencies, including 06 ministries/ ministerial-level agencies with specialized IT Department

Policy and regulatory environment for the ICT application and development has been significantly improved About 180 legal documents on ICT were issued in the period 2001-2010, including Electronic Transactions Law 2005, IT Law 2006, Telecommunications Law 2009, Radio Frequency Law 2009, Postal Law 2010 and many Decrees and Decisions of the Government and the Prime Minister on post and telecommunications, Internet, information technology, radio frequency, etc These documents have created a legal system and made important contributions to promote ICT application and development in recent years

Implementation of market-opening commitments to the WTO, the international economic integration, the trend of convergence with the type of telecommunications services, many businesses network infrastructure, providing enterprise telecom services have been license, with participation in the future of private enterprise and foreign competition in the telecommunications market will become increasingly fierce and strong on all aspects and services segment of the market

Ensuring a healthy competitive environment, equality for businesses is a top priority; urgent requirement for the development of Vietnam's telecommunications industry in the future To do this, the State's role is extremely important State is in one’s capacity as administrative- law agencies and as the management agency at macro will creates legal frameworks, policies and measures to contribute to important competitive environment of the Vietnam Posts and Telecommunications businesses

In the historical context of Vietnam recent years, the development of telecommunications has shifted gradually from the state monopoly to market mechanisms are regulated by the state, the organizational structure of the telecommunications business the greater the change, the new telecommunications group was established, the mechanism of government policy for the sector has also changed The government's policies are decisive, influence on the development of industry and especially the competitiveness telecommunications

In the past years achievements of the ICT sector has made a significant, bringing great benefit to society The number of telecom business increased, the dynamics of the telecom business increased, telecommunications cost reduction, quality telecommunications services are gradually improving However, with the development - many problems arising in this industry:

- The exclusive license,

- The human problem

- The issue of restructuring of state-owned corporations

- The issue of managing telecommunication infrastructure

- Management services, management

These issues are directly related to government policy and regulations, development policies in recent years, as well as issues of economic, social, technological The assessment of the macroeconomical impact of government policy through the evaluation of the implementation of government policy in the competitive telecommunications business model with PEST is an essential need and then finding make recommendations for policy changes

We are working at the Ministry of information and communication, staff is advising

the Department of Telecommunications The selection of topic " ASSESSMENT OF

COMPETITIVENEES OF TELECOMMUNICATION COMPANIES IN VIETNAM:

BASIS FOR POLICY REDIRECTION USING PEST ANALYSIS " is useful for my

job as well as the Ministry of Communications

2 Background of the study

In telecommunications development process, from the 1999 Vietnam has gradually shifted from business telecoms monopoly to market mechanisms are regulated

by the state But markets only really developed since the Telecommunications

Ordinance, 2002 by the President announced Since then, the market for telecommunications services has developed an important contribution in economic development - economic development of the country Many projects in the fields of business, many infrastructure systems were formed synchronously changing the face of the economy, improve people's living conditions and contribute to economic restructuring towards industrialization and economic modernization

In this process the diversity of forms of ownership shall determine the existence of various economic sectors in transition in Vietnam This also means that there will be enterprises of various components involved in a market, a level playing field The existence of various economic sectors in the transition period brought many benefits However, the requirements of the market economy are that all businesses, regardless of economic sectors are trading autonomy and equality before the law, equality of access to business resources Because of the mechanism of centralized planning and subsidized enterprises of all economic sectors in the state were actually enjoying the preferential allocation of state in all aspects throughout a long period of time Meanwhile, the enterprises of other components need to meet demand for resources for business to comply with the market mechanism Transfer to a market economy this is clearly inappropriate So, too many economic policy components to life, to arouse motivation and rich in resources and people in the sector are to create a level playing field for all businesses regardless of sector Playground also includes the competitive environment of the telecommunications business

Operation of telecommunication services market is not immune from the laws of nature characteristic of the market economy in general The influence and impact of the role of the state and markets telecommunications services today been confirmed as larger competitive environment increasingly vibrant The strong development of telecommunications products with the speed of its development poses conflict entails promoting better, more realistic role of the state in regulating and managing the development of telecommunication services market

In this development, the state created "playground", creating a legal framework for the

operation of the market State management of the market, as "referee" between the participants in the market and develop market-oriented telecommunications services for economic development and ensure social security In addition, the State also plays a role in the market as the supply and demand in the market of telecommunications services State participation provides telecommunications services to meet the needs of economic development that the market does not want or can not afford to participate as technical infrastructure to actively regulate the market In addition, the State as a system of administrative organization, along with the state-owned enterprises have become the largest market for telecommunications services

However, the telecom service in Vietnam has not developed proper range and also some limitations Market development is uneven and unstable Competitive and transparent market remains weak

After the first phase of the effort of telecommunications services in the 1980s, the telecommunications market in 1998-1999 has begun revealing challenges of the new phase, the main reason is due to monopoly business Exclusive mechanisms of this year were expressed in the internal stagnation of VNPT

At that time, even though society still feel sluggish, marginalized by corporate monopolies, but the prime minister was asked to consider the opening of competition in the telecommunications industry After that, the quality of telecommunication services have improved but still high rates to the majority of people and the customer care is limited

In 2000s telecommunications market began turning the 2nd period with the introduction of Directive 58 and the General Post Office to participate Viettel’s long-distance telephone business in the domestic and international (the 2nd visit market) opening period of "transition from monopoly to competition phase" in the field of telecommunications Meanwhile, the General Post Office met a lot of pressure However, after 10 years, Vietnam's telecom market has been a "change meat" represented by the level of universal service and low rates in the world to hold the car

he or she sold vegetables foreign markets are also "alo"

However, in the last 3 years (2010-2012), the telecommunications market has exposed the risk of unsustainable development, may detriment of consumers and the state The investments of the telecommunications business was limited due to the

economic crisis, which affects the quality of networks and services The nascent business operates difficultly and the risk of bankruptcy Efficient management and telecommunications investment there are certain restrictions when most large enterprises are state-owned enterprises, more than 90% of telecommunications network assets are Vietnam state

To foster the development of telecommunications services, to overcome the defect

to stabilize the market, limiting the negative impact of the market for telecommunications services economy in the coming period should be: Improving the legal system to promote and manage telecom services market developing fast, efficient, sustainable and healthy, properly oriented; Additional legal framework for the establishment of financial institutions non-banks such as trusts telecommunications services, investment funds to build telecommunications networks to attract capital for market balance supply - demand for goods and services telecommunications market, ensuring actively stabilize the market in accordance with the law of supply and demand, promoting economic development and social security, and management capacity of market participants in telecom services, expand the supply telecommunications services

in strata with low incomes Improving information systems, market forecasting telecommunications services; innovation, enhance the level and effectiveness of state management for this market are very necessary

In fact, operating on the market of telecommunications services becomes "active" when the market appeared many providers of telecommunications services such as SPT outside VNPT, Viettel, EVN is the domestic business and today there are more foreign competitors such as Beeline Accordingly, the market competition and grab market share really is a "race" drastic Since then break the monopoly in the provision

of telecommunications services as well as the formation of new telecommunications market The provider of telecommunications services in this market has made every effort to improve their competitiveness

The level of implementation of government policies is becoming increasingly important in promoting the development of telecommunications services market The activities in the telecommunications sector and the provision of telecommunications services are experiencing conflict and overlap, requiring the government to play its role

in the fine regulation and macroeconomic management development the telecommunications services market These roles are shown as follows:

First, recognizing the independence of the economic entity in the market of telecommunications services They autonomy of economic decisions, freedom of choice, be required to bear the economic risks if any Therefore the State must build legal systems, regulations and regulatory mechanisms macroeconomic and implementation guidance, supervision and control of the market of telecommunications services

Second: Building system competitive market, improved stability and activity provides telecommunications services in the market

Third: impacting on the allocation of resources

Fourth, organizational planning and attracting investment in infrastructure

Fifth: making the allocation of regulatory economic indicators in the telecom sector - IT equitably and ensure fair competition

By the main tools, the State does the above functions: the legal system and law

enforcement apparatus laws of financial instruments, cash flow and sector State

In recent year, issues surrounding competitive environment, the competitiveness

of Vietnam's telecommunications industry has been a scholar of national and international researchers interested in various aspects of the problem topic:

The appropriateness of the documents for the ICT sector?

Mergers and MobiFone VinaPhone with any Competition Law?

Strengthening the competitiveness of the Post and Telecommunications Group in

Vietnam

Restructuring the telecommunications group

Evaluation of the impact of the government's policy with telecommunications firms, we study deeply “EXTENT OF IMPLEMENTATION TO GOVERNMENT POLICIES IN Developing COMPETITIVENEES OF TELECOMMUNICATION COMPANIES IN VIETNAM: POLICY BASIS FOR PEST ANALYSIS” To get the right solution in order to improve the competitive environment for telecommunications

in Vietnam in the coming time

3 Objectives of the Study

This study was aimed to determine the status on the implementation of the government strategies in improving competitiveness of telecommunication Companies

in Vietnam and able to find solutions that will give direction using PEST Analysis and Solution

Specifically it will work on the following objectives:

3.1 To evaluate the competitiveness of the telecommunications company in Vietnamn

3.2 To determine the impact of the policies of the state on the development and competitiveness of telecommunications industry in Vietnam

3.3 To draft policies that will further improve the competitiveness of the telecommunication industry in Vietnam

4 Significance of the study

This study will be beneficial to the following:

4.1 For the telecommunications companys:

This study clarified the relationships influenced directly and indirectly by the macro-economic policies on developing the internal elements of the business Thereby

managers of telecommunications companies can adjust their activities to more suitable for integration

4.2 For policy makers :

This study supported the telecommunications policymakers have the facility for adjusting the policies: competitive telecommunications, procedures for business registration and licensing for telecommunications operators; public telecom, appropriate for development of telecommunications in the new period

5 Scope and limitation of the study: Scope of the study and limitation

5.1 Subject of the study

Some macroeconomic policies of the government in the competitive impact of the telecommunications business in Vietnam

5.2 Scope and limitations of the study

Scope of the study

Some state macroeconomic policies, especially the operation of information and communications

The level of implementation of government policies for the development of competitive telecommunications corporations Vietnam:

Group of Vietnam Post and Telecommunications VNP; Telecommunication Company FPT ; Military group telecommunications(Viettel) ; Electronics Company Information Vietnam Maritime ; Telecommunications Company Information Power ; Corporation Telecommunications Services of Saigon; Vietnam Multimedia Corporation (VTC) ; Hanoi Telecom Company However, the study especially focuses on telecommunications group VNPT and Viettel

Limitations of the study

As we know that competitive environment is very complex issues There are still many points which are inconsistent with each other both in Vietnam and in the world Moreover the market economy in Vietnam is still in the new phase formation with continuous changes and mobilization So, in the framework of the study limited by the

review as well as limited ability, the writer only focuses on issues related to the

DEVELOPING COMPETITIVENEES OF TELECOMMUNICATION COMPANIES

State enterprises (SOEs):

SOE is an economic organization of capital investment by the state, establishment and management organization, business or public activities to fulfill the social and economic objectives by the State SOE water exists in the form: independent enterprises, corporations, member enterprises of corporations SOE is an economic organization by the State owns the entire capital or shares or dominant contributed capital is held in the form of state-owned companies, joint stock companies, limited liability companies

Telecommunications business:

A telecommunication enterprise has activities in the field of telecommunications These companies provide the infrastructure and fixed communication services, mobile, infrastructure and transmission services, infrastructure and data transmission services and some other services related to telecommunications

The concept of competition:

In politics, the economy is competitive rivalry between economic entities in the production of goods in order to grab the favorable conditions in production, consumption or consumption of goods from which to obtain most benefit for

themselves Competition can occur between producers and consumers (producers want

to sell expensive, consumers want to buy cheap); between consumers together to buy cheaper goods; between producers to better conditions in the production and consumption

There are many methods of competition: price competition (lower prices, ) or non-price competition (advertising, ) or the competitiveness of a business, an industry,

a country is the level at which, under conditions of free market and fair can produce commodity products and services to meet the demands of the market, while creating jobs and raising real incomes

According to Michael Porter competition is to win market share The nature of competition is looking for profit, that profit is higher than average return that businesses are The result is a competitive process of the average profit in the direction of depth leads to improved price consequences can be reduced (1980)

Competitiveness of a business is a business strategy with competitors within an industry

The concept of unfair competition:

Unfair Competition is any action in economic activity immoral to harm business competitors or customers And almost no one will win if the business is conducted like

a war Fiercely competitive nature to destroy only lead to a bloody red ocean of rivals fighting in a tank is running low profits The consequences are often seen as the competition is fierce profit decline everywhere

The concept of fair competition:

However, the normal method (trying to beat competitors through the creation of a world order in the defense industry) and thinking the traditional strategy (focus on the aspects that make How to exploit the advantages and uniqueness of his, or search the advantages compared to competitors) makes the competition is becoming intense and difficult than ever In the context of the market here is a market in a globalizes world are on an irreversible process of integration Integrated world is a competitive world The walls are taken down, all kinds of roadblocks were lifted On a level playing field

"is being flattened" - said in the terminology of Thomas Friedman, the resources of the world are vying to be used in the best way, the best way to pay that is lower cost but better product That is the meaning of a positive environment free competition on a level playing field

Based on what people talk about today's business, the business will not continue to think the traditional way Enterprises need to listen to customers, working with suppliers, purchasing groups set up and build strategic partnerships (even with competitors) And all that did not like in a war Bernard Baruch - a tycoon's leading banks of the twentieth century was opposed by the words of Gore Vidal as follows: "No need to blow off someone else's candle to their shine."

The fact is that most businesses only succeed when others succeed This is a success for both parties rather than compete with each other harm This situation is called "win-win" (win - win)

"So the competition between enterprises to sub c for a better customer, any business content with the position in the marketplace will quickly fall into the state rejection lag and with a transport unexpectedly fast rate in a market that "The world advances with terrible speed I do not run hard to overcome ourselves, then others will leave their own behind fast to the point that you do not keep looking at their faces "

Competitive Advantage:

Competitive advantage is a property of peculiar value, can be used to "seize

opportunities" for profit When it comes to competitive advantage, which refers to a business advantage, a country has and can have, compared to their competitors

Competitive advantage is a concept that refers not only at micro (company), but also at

macro (national level)

CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES

1 Literature review

In Vietnam, a number of studies on the competitiveness of enterprises, and the development of telecommunication Enterprise in Vietnam have been so far conducted

In the report “Competitiveness strategies for telecommunication sector in

Vietnam” Wolfgang Wiegel ( 2011) showed that the state plays important role in

improvement competitive environment of telecommunication sector in Vietnam The study explores the current state of telecommunication sector, the supply chain problems and provide comment on aspects related to the Vietnam-EU FTA The study evaluates the elements of competitiveness and the attractiveness of commercial markets in the

EU

In the study “ Competition in the telecommunications industry in Vietnam”,

Nguyen Thanh Ha, Jacob Gullish, Pham Quang Thanh (2007) analyzed the development of the telecommunications industry in Vietnam and the market structure, legal framework, the important role of the state, the satisfaction of customers using telecommunications services to give recommendations and guidelines in the competitive telecommunications industry in the future

“Vietnam's telecommunications sector in the context of international economic integration” (2010) Nguyen Van Dung identified clearly the situation of international economic integration of Vietnam's telecommunications industry in recent years Based

on analysis of that condition the author offered the solutions and recommendations to develop the telecommunications sector in the process of international economic integration

"Telecommunications is considered an important economic sector!"

According to Vietnamnet, (2010) analyzes the following issues : The spectacular development of telecommunications businesses, the issue of shared infrastructure and the opinion of the Vietnam's telecommunications industry such as telecommunication

networks, resource management, market competition in the draft Vietnam's telecommunications laws

“Development of Vietnam's telecommunications market” 2012

http://docbao24h.vn

Synthetic paper reviews and comments, the before pressing the status of State enterprises to control market share The participants demonstrated that, if joined private equity market is certainly more efficient

According to research results on telecommunications and competition in this sector of agent technology and investment (Vietbid) and the enhanced competitiveness of the U.S in Vietnam (VNCI), Vietnam's telecommunications industry 're very right direction However, the regulations and current policies remain the basis of concern, limited market participation of the private sector component

According to Pham Chi Lan, a member of Research Board of the Prime Minister, said,

as well as the inevitable law of development of many economic sectors, competition in the telecommunications industry will certainly increase Competition is vital to national interests If competition in the telecommunications industry to low impact for 100% business enterprises are using telecommunications services Vu Minh Khuong, Harvard University (USA), commented, according to overseas experience, competition related to the vitality of the industry Will create competitive and innovative strength of the business of joining the global trade On the development of telecom networks and telecommunications areas, Mr Jiang asked: "If the postal worker cooperative is all about office hours who will provide these services to people outside working hours? House Water should be ready to finance private economic unit if the unit does is bring the project more effectively And this effect by testing people's reviews.”

Representing clients using telecommunications services, Technical Director - Technology, Cisco Systems Vietnam Phan Thanh Son, said that providers of telecommunications services should be a program to bring services to market a more complete school

Deputy Director David Ray VNCI project analysis experience from other countries, the general trend in the world in the field of telecommunications service providers present state role is to ensure transparent legal framework, through an independent regulatory agency, has the professional capacity to license and implement mechanisms to ensure competition and public interest As telecommunications services often run efficiently

by the private sector

“At least three mobile networks to competition” Thai Khang - ICTnews (2012):

In the article, the Prime Minister has approved a development plan of the national telecommunications by 2020 Accordingly, at each critical telecommunications services like mobile and broadband Internet, fixed long distance and international business must have at least three service providers to ensure competition

According to the planning of national telecommunications development by 2020 have been approved by the Prime Minister, will have to ensure the telecommunications market towards sustainable development quality and efficiency on the basis of creating

an environment for fair competition and healthy So, for each telecommunications service market as important as mobile, broadband Internet, fixed and international long distance should be at 3 companies provide services to ensure competition The creation

of a competitive market for mobile services, broadband Internet, fixed and international long distance through licensing policies, connectivity and control to stabilize the market and resource planning in accordance In addition, through these measures to ensure to avoid too much involvement, particularly of state enterprises to invest outside the telecommunications sector led to excessive competition and business efficiency low market

The plan also sets out the objectives of developing internal resources to create conditions for economic sectors to participate in telecommunications development through licensing policies telecommunications business and gradual equalization of telecommunication enterprises informed that the State does not need to hold shares On the other hand, to develop the telecommunications market oriented socialist and economic security in telecommunications activities, the State continues to hold stakes in some companies offer lower service network layer has special importance for the

operation of the entire infrastructure of the national telecommunications and direct impact to economic development - social, ensuring national defense and security of the country

Vietnam's telecom sector in the context of international economic integration, 2010

Summary report:

Thematic depth analysis of the current status of international economic integration of Vietnam's telecommunications industry in recent years On the basis of analyzing the situation, the authors offer solutions and recommendations for the development of the telecommunications sector in the process of international economic integration

Summary report:

Research analyzes deeply telecommunications Industry role: both as a medium of information infrastructure industry It is a key economic sector, and to serve the requirements of state management and contribute ensure national security, the development of the telecommunications industry will have a strong influence on the development of the whole social economy

Mergers and MobiFone VinaPhone with any Competition Law

Summary of the article:

According to the Ministry of Information and Communications, 2011, the market share

of VinaPhone and MobiFone is 28.71%, and 29.11%, so the market after the merger is 57.82%

Suppose two MobiFone and VinaPhone is the market share of the merged business will merge greater than 50%, and in the focus group of economic behavior is prohibited Specifically, Mr Vu Ba Phu, Deputy Director of Competition Authority, Ministry of Industry and Trade, Article 18 of the Competition Act contains provisions banning economic concentration if the combined markets share of the participating businesses focused business accounting for over 50% health With the above, the merger between VinaPhone and MobiFone would violate the provisions of the Competition Act

2 Conceptual frameworkConceptual framework

The concept of competition and competitiveness of enterprises

In the market economy, competition is a common phenomenon and has important implications for economic development in the country The competitive relationship study appeared early with famous schools such as the classical theory of competition, competing theories and neoclassical theories of modern competition Can summarize some basic details about the competing theories of economic conditions, the market today are as follows:

- Competition is a common phenomenon, as an objective law of the market economy

- Competitive nature sides: positive effects and negative effects Competition is a powerful force to promote business entities operate more efficiently on the basis of improved productivity, quality and efficiency for the survival and development of themselves However, competition may also lead to competitive battling, control each other creating confusion and risk causing even greater disruption To promote the positive and negative side constraints, to maintain a healthy competitive environment, legal and monopoly control, handling of unfair competition between business entities Competition arises when two or more parties trying to get to something that not everyone can win According to the dictionary definition of the Vietnamese: the competition is competition between individuals and collectives have the same function,

in order to spend more of their winnings According to the dictionary economists term

"competition - the struggle between opposing individuals, groups or nations."

Dictionary of Economics also provides market definition "Competition is an effective method to adapt to the enterprise market, where the aim is to acquire market performance makes it quite satisfying to average gain enough profit to benefit the ordinary course of business and compensation for the risks in the investment, operation and production unit also achieved high performance, it must not be too excess production capacity in a long time, the nature of products at a reasonable level "

Today, almost every country in the world recognized and regarded competition

is not only competing and dynamic environment of the development, but also a key element to a healthy social relationships, create motivation for the development So full

view of competition can be seen as follows: Competition is fierce struggle, fierce between the economic actors involved in the market to grab maximum benefits for themselves

Sorting competition

* In terms of competitive actors

- Competition between sellers and buyers

- Competition among buyers together

- Competition among sellers together

* Considering the nature of competition

- Competition called perfect or pure competition

- Imperfect Competition

* In terms of legal aspects and the impact of competitive economic development:

- Healthy competition

- Unfair Competition

* Considering the level of competition:

- Competitiveness of the economy

- Competitive products

- Competitiveness of Enterprises

Competition is now fierce struggle between firms in the market to grab the advantage in the production, circulation and brand reputation of the business Of course deep motivation of enterprises in competitive relationship is always to maximize profits

In the present conditions, the business generally move from competitive perspective Resistance to compete on the basis of cooperation, competition is not always the means

to kill each other, destroy each other In fact, the way that the business use of the current competition based on innovation and enhance product quality, design, support services and product sales discount

These factors create competition

• competitive environment of the business is an integral part of the business

environment in Vietnam now

In economics, the business environment is a term referring and long study, but in

our country since the transition to a market economy, the business environment issues new research interests more and creating business environment posed as an urgent need for reform the economy Can visualize the relationship between business and the business environment like fish to water Water is the habitat of fish, therefore, to live, to exist in the country to ensure the conditions for oxygen, nutrient necessary for the growth and development of fish For businesses, too, want to survive and be required to develop a favorable business environment, to ensure that the environment is essential to the economic, political, legal, market etc for production and business activities of the enterprise

So the business environment of the overall business factors and objective conditions and subjective external and internal business, relationships interrelated, affecting directly or indirectly the manufacturing activities and business enterprises There is a competitive environment attributes of a market economy, there is no competition means no market economy The competitive environment in space, covering sales, buying space, promote your business take advantage of production conditions and consumption to promote bilateral trade, around the value and quality of goods that pitted conduct In competitive markets, competition made possible through the distribution of funds Through competition makes for inefficient capital from place

to place to move highly effective, because by an oversupply department should have appeared imbalance of supply and demand, thereby allowing for the distribution of capital was very good For goods, competitive pressures both to both motivation It forced the competing need much effort to study the market situation, improving the quality of goods, lower production costs, thereby increasing their competitiveness in the market In theory, competition is accidental, no "protective umbrella", it operates on the principle of good use, bad off, making each item are facing two possibilities either success or failure However, competition is equality, rights and legal status of each of the firms are equal The responsibility of government is to create a fair competitive environment, create good competition regulations, and serve as arbitrators Only fair competition, protection of competition, the best mechanism to use, the new bad away form throughout society

Understandably, the competitive environment is the totality of the business factors

affecting business, create space, playground businesses have often forced workers to struggle fiercely with other firms in the market for the survival of their businesses

Competition in the general economy and competitive enterprises in particular have been studied for a long time However, the study of the competitive environment in a way that the system started rather late and only from the 1980s to the present It is important in creating a competitive environment for businesses is to create incentives for businesses to grow and prosper

The elements of a competitive environment of business including:

- The competition and competitiveness of the competition;

- Legislation and government policy;

- Market factors;

- The level of economic development;

- Political factors, cultural, social, human and international factors

The competition and competitiveness of the competition: The quantity and strength of the competitors is the first element constitutes the most important competitive environment of the business Why competition is the first factor to mention

in the competitive environment of the business? Because of the superior advantages of competition always creates barriers for enterprises in the implementation of its business strategy

So, how was identified as a competitor? Any business that provides products related to your business products or products that attract customers that your business is targeting businesses that are competitors In other words, competitors are now selling these products can "replace" or "add" is the product of his business

The business environment changes constantly and competitors can participate in the market in the future, so be prepared to deal with them A new business entering the market will bring new technology, new market approaches and innovation in products Any factor that will make your business products decreased uptake However, be aware that, in his business has been operating on the market would be an advantage

Identifying is clearly rivals the process of gathering all the information for the analysis of a system in order to support the formulation, implementation and adjustment

strategy most effectively Shaping competition requires assessment of the strengths and weaknesses of existing competitors and potential These analyzes provide a picture of business strategy and defense attack, through which they can identify opportunities and challenges Shaping up to competitors on 3 goals: First, identify the weaknesses of the opponent to attack Monday was expected to be allowed to walk and react to the strategies of their previous strategies, the strategies of other competitors, and changes in the business environment The third is to create flexibility for the organization's strategy The attack strategy can be deployed quickly to exploit opportunities and strengths Similarly, the defense strategy was also implemented an ingenious way to face the threat from the opponent when they attack their weaknesses In fact, the business application system will close the competition generated a huge advantage The law and policy of the State: institutional environment, policy is an important prerequisite for the operation of the business Contents of institutions and policies, including laws, restrictions or measures to encourage investment or trading of goods, services, professions and geographical Institutional policies include laws and policies

on investment, financial, monetary, land, technology, market ie regulatory measures both input and output as well as the whole process of business activities So, this is a very important factor group and covers many issues related to the operation of the general business environment and competitiveness of enterprises in particular

The economic policies of the state have very strong impact to the business of the enterprise, such as fiscal policy, monetary policy, income policy, export policy, economic policy components Economic policies of expression, the economic development of the State Through the guidelines, policies, and operating state management of the economy and business in many ways, such as state management of the economy The economic policies expressed preferences, incentives for some areas

At the same time, the State may also give these measures, sanctions, as the industry regulations, prohibit or restrict the area of business For example, taxing State for Business Enterprise products that are harmful to people's health, such as eg tobacco, alcohol, beer or proprietary business management of special chemicals, printing, pharmaceutical A country is considered open trading policies when those policies bring convenient and attractive for domestic and foreign enterprises Economic policy

plays a very important role in creating an attractive business environment

The institutions and policies can now be evaluated by policy or by aggregates with different approaches For example, to evaluate the performance of institutions and policies for businesses in Vietnam, Asia Foundation and Chamber of Commerce and Industry of Vietnam (VCCI) has conducted studies assessing the business environment component indicators: business registration, land policy, the situation inspection - checking, policy development, transparency, transaction costs, and dynamic government

The elements of the market: The market is a process, in which buyers and sellers

of mutual interaction to determine prices and production of goods In economics, the structure of the market system including input markets (markets for factors of production: labor, capital, capital goods, land, technology, information, .) and output market (the market of consumer goods and of goods and services)

The function of markets: Determining the price to ensure that the number of people who want to purchase in the quantity of people who want to sell; Recognizing social labor crystallized in commodities through which goods is sold or not sold at the public.; provide information to producers and consumers through the changes of the social needs of the quantity, quality, type and structure of the type goods, prices, supply and demand situation of the goods; stimulation or limit production and consumption The market is just consuming products, seeking input through the purchase - sale

of goods and services output and inputs The market is also simultaneously navigation tools, guides business activities through demand, prices and profits for the strategic direction, business plan Thus, the stability of the market is very important to the operation of general business and creating a competitive environment for businesses To promote the role of the market factors for enterprises, need for state intervention in the market to stabilize market (limit large fluctuations of the market), through the construction and well done, strictly commercial law, creating a competitive market environment positive and effective, commercial fraud, proprietary trading restrictions,

In a healthy market conditions and stable new business with favorable conditions

to enhance their competitiveness In addition, the need to create favorable conditions for market entry, create multiple suppliers and business partners, and more customers for

business

The level of economic development: The level of economic development is one of the elements of the competitive environment of the business By market share of the business is expanding or shrinking, power relationships between business competitors

to how very important part depend on the level of economic development In terms of the economy of Vietnam, with a starting point of about 90% of all businesses are small and medium enterprises, weak infrastructure, per capita GDP of Vietnam to overcome the threshold in 1000 dollars, but it is in danger of falling into the trap of middle-income countries GDP per capita of Vietnam, even when the exchange rate or purchasing power parity exchange rate is still in the bottom half of the table the order of more than

200 countries and territories around the world, is still in the category of medium and low (below the average low is $ 3,000, from $ 3,000 on the average, over $ 10,000 is the average height, )

Vietnam's economy is still the major bottlenecks unresolved, there are many important indicators of middle-income countries with low unfulfilled Infrastructure, quality of human resources, economic institutions are still limited by the development The program's low-income countries has not been completed as addressing poverty in ethnic minority areas, in rural areas, the quality of education and health services, access

to clean water and sanitation, especially in rural areas

It is clear that in order to get a competitive environment for businesses Vietnam must shift from thought leadership to executive management the way the economy and must be accompanied by a comprehensive range of solutions in the macro and micro level However, there is a good thing since the innovation to change their thinking, strategic approach to industrialization and modernization, our country has achieved a high growth rate and a constant long time, avoid the vortex of the financial crisis - the currency world 2007 - 2008, limiting the negative impact of the decline in the growth rate of the global economy

The elements of politics, culture and society: political stability and political institutions, openness and clear of all policies and guidelines of the State political factor

is always competitive environment stability for businesses and investors Striking features of the impact of political factors on the competitive environment of the

business is reflected in the goals that political institutions in order to Institutional political role orientation, the dominant activities in the whole society, especially in the economic role of the state is an important factor State role in creating, promoting, adjust and maintain economic growth, create a favorable competitive environment and equality for all citizens to engage in business activities State regulation of the legal framework and policies established primarily to create conditions for all economic sectors equally competitive in the business

Competitive relationship between the business always takes place in a cultural environment - between certain social and environmental corporate social relationships closely interact with each other Society provides the resources that businesses need and consumption of goods and services provided by businesses The common values of the society, the traditional practices and lifestyles of the people, the religion and ideology of population structure, income people have more impact on the business operations of the business career The change of the cultural factors - creating social opportunities or challenges for businesses competing to dominate the market and maximize profits, however, the cultural movements - often social progress or slow progress, so businesses often difficult to identify and predict their impact to business operations However, understanding and attention to cultural factors - social competition is very important role because it will govern the behavior of the consumer and business behavior in competition

3 Characteristics of the competitive environment in telecommunications business

3.1 Influence of the political system, laws and policies: the Telecommunications Law, the Enterprise Law, Investment Law, Competition Law

Because telecommunications services is important for economic activity, which service makes the nervous system of each country, as intangible goods, so governments are very interested in the competitive environment of the telecommunications business Government, Congress usually give the Ministry of Law, the policy in this area to regulate economic relations, economic relations benefits in the supply, trading and use

of telecommunications services The transaction problems are the dominant telecommunications and tightly regulated system of legal documents such as

Competition Law, Corporate Law, Commercial Law, especially the Law on the National Assembly Telecommunications through formal and effective 1/7/2010 Governments around the world are interested in the competitive environment of the telecommunications business and markets telecommunications services, always adjusting the unreasonable prices of traded telecommunications and to mobilize resources the whole society to participate in building the national telecommunications network to meet the requirements fast, wide area coverage, confidential, accurate, cheap and convenient

3.2 The capacity depends on the manager

Many types of products do not require intensive management in the creation of a competitive environment, such as investing in the provision of public goods, or invest in the production and supply of electricity in Vietnam today But investing in the provision

of telecommunications services must have appropriate management capacity and the creation of a competitive environment in manufacturing and providing services to increasingly demanding more management capabilities The investment in telecommunications infrastructure development and building a national information network is complex, requires more knowledge, high technology, which is associated with maintenance activities, inspection and security measures

The manufacturing process of telecommunications services are not interrupted, the entire process to ensure the whole network, not cleavage, the process of production and consumption of services take place at the same time When a customer picked up the contact person at the top of the machine to meet the other party is starting services make

a call, and he starts to pay Or you start sending messages, sending goods, also began the process of transporting letters, goods, and people have to pay charges send courier, postal cargo parcels earlier That is, in parallel with the operation of the information system, the system simultaneously with both the consumers of telecommunications services, with the process also calls the freight, freight goods, money by the time price, weight and value

The process of production and consumption occur simultaneously In contrast, for telecommunications services, without the service consumer and the service system does not work Actually telecommunications system in stages, each time the operation is

interrupted, but the service system is always operating 24/24 hours a day So if customers do not use the full capacity for the waste also occurs in the system This is also a problem for the economy in business enterprises, which want to maintain market share and stable sales force must constantly work to fight fierce competition So capacity management, corporate governance executive is extremely important

3.3 The characteristics of the competitive relationship between the enterprises

in the field of high technology products and intangible services

Telecommunications services is both common characteristics of services, such as invisibility of products and services, used only when new users perceive the service users involved in the process of providing services, products and services are created and used in the process thus can not provide reserves And an important characteristic

of the process of providing ICT products and services is the line, where the connection between the provider Do not have a telecommunications business that can operate independently is that it must be placed in an environment that is consistent with a role

or a number of elements, chain of communications networks worldwide

Therefore, competition between businesses in this area not only to compete, but the market share is now combined in the role of partner profit share This not only helps businesses overcome the technical obstacles and other barriers while also expanding the market

Competition in the field of ICT services not only competitive nature of the service but also the best characteristics that separate the high sensitivity of the service Each tool, measures to enhance competitiveness is usually rapid and significant impact on the mentality of the consumer to use In addition, the ICT industry is very typical of modernity and the interest of the developing world Quality ICT services is evident and palpable, prone to psychological well not meet the requirements of the users due to the nature of the information

Starting from the characteristics of the object of study, we can see that, when considering and analyzing the competitiveness of enterprises operating in the field of ICT services need to pay attention to the following key points:

+ In separate resources: for example, technological know-how, the ability to make distinct services

+ Service Supply Chain (supply chains): look not only his services but a stage in the supply chain and placed in the customer's location to consider

+ Dynamic analysis, instead of the old style analysis (using international prices, interested in service standards, aimed at traders) should be analyzed in a new way (interested in domestic and foreign competition, aimed at business / customers)

As mentioned above, the analysis of competitiveness in the market structure will

be more suitable when considering the competitive industry, competitive advantage analysis on the basis of assessment of comparative advantage in terms of cost or profitability of 1 unit or product analysis by the non-competitiveness in conditions suitable data sources for analysis and specification of ICT services

4 Theoretical framework

4.1 PEST model

While the model of the M-5 Porter pressure going into the analysis of the factors in the business environment PEST to study the impact of these factors in the macro environment The factors that are

In conducting PEST analysis, it is required to consider each PEST factor as they all play

a part in determining the overall business environment Some examples of topics include the following:

1 Institutional factors-law These factors have influenced all the business on a territorial, institutional factors, the law may endanger the viability and growth of any

industry When trading on an administrative unit, the business will be required to comply with the legal institutional factors in that area

Political: (includes legal and regulatory): elections, employment law, consumer protection, environmental regulations, industry-specific regulations, competitive regulations, inter-country relationships/attitudes, war, terrorism, political trends, governmental leadership, taxes, and government structures

2 Economic Factors: Enterprises should pay attention to the economic factors in the short-term, long-term and government intervention on the economy Typically the business will be based on economic factors for investment decisions in the sector, and region

Economic: economic growth trends (various countries), taxation, government spending levels, disposable income, job growth/unemployment, exchange rates, tariffs, inflation, consumer confidence index, import/export ratios, and production levels

3 The socio-cultural factors: Each country or territory has its cultural values and specific social factors, and these factors are characteristics of the consumers in that area These cultural values are the values of a society made up, can foster that social existence and development Therefore, cultural factors are generally very protective scale and tight, especially the spiritual culture

Social: demographics (age, gender, race, family size, etc.), lifestyle changes, population shifts, education, trends, fads, diversity, immigration/emigration, health, living standards, housing trends, fashion, attitudes to work, leisure activities, occupations, and earning capacity

4 Technological factors Both are still in the world of technology revolution, a series

of new technology was launched and integrated into products and services If 30 years ago a computer is just a tool used to calculate the present day it has enough functionality to replace a man completely independent work

Technological: inventions, new discoveries, research, energy uses/sources/fuels, communications, rates of obsolescence, health (pharmaceutical, equipment, etc.),