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A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY i ThAi nguyen University Southern luzon STATE University Socialist Republic of Vietnam Republic of Philippines STRATEGIC MARKET PLAN OF BAC GIANG, VIETNAM Advisor : Dr. Edwin Bernal Name of Researcher : MAI SON English Name : JACKSON Date of Birth : 29-11-1974 Course : SLSU-DBA1 Bac Giang August, 2013 A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ii STRATEGIC MARKET PLAN OF BAC GIANG, VIETNAM A Dissertation Presented to the Faculty of the Graduate School of Southern Luzon State University in Collaboration With Thai Nguyen University In Partial Fulfilment of the Requirements for the Degree Doctor in Business Administration MAI SƠN August 2013 A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY iii ACKNOWLEDGMENT I would like to express my deep gratitude to the persons who assisted and encouraged me to complete the doctoral course. Their help was so valuable for me. First of all, I would like to thank my parents who gave birth to me. They have encouraged me to complete this doctoral course not only by words but also by their proud of their son. Thousands thanks for my wife, Trieu Thi Nhung, for her great sacrifice to me and my children. She has given us uncountable help, not only by raising up or teaching my children so that I could have time for my work and study, but also supporting me with her good meals and medical care ., etc. She is a true Vietnamese wife! Special thanks to my advisor, Professor Edwin Bernal, for his talented understanding, encouragement, and support during my candidature. The completion of this thesis would not have been possible without his direction and support. Many thanks to Mr. Dau Anh Tuan - the Head of Legal Department of Vietnam Chamber of Commerce and Industry (VCCI) for providing necessary data and information for my research. The last persons but not least, all the leaders of my province, entrepreneurs who encouraged me and answered my questionnaires and my face to face interviews. Without these, how can I completed my thesis. What I could have learned, received and will bring along with me is something much much more than a thesis. B a c K A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY iv DEED OF DECLARATION I, Mai Son, hereby submit my DBA thesis, entitled STRATERGIC MARKET PLANNING OF BAC GIANG, VIETNAM, truthfully declare that the said paper is a product of my original research investigation. Signed this …………………….2013 at Thai Nguyen University MAI SON DBA Candidate B a c K A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY v TABLE OF CONTENTS Page ACKNOWLEDGMENT . iii DEED OF DECLARATION . iv TABLE OF CONTENTS . v LIST OF TABLES . viii LIST OF FIGURES x LIST OF ABBREVIATIONS xi APPROVAL SHEET xii ABSTRACT . xiii CHAPTER I 1 INTRODUCTION 1 1. Background of the Study . 1 2. Statement of the Problem 2 3. Objectives of the Study 3 4. Hypotheses of the Study. 4 5. Significance of the Study 4 6. Scope and Limitations of the Study . 5 7. Definition of Terms 5 CHAPTER II 8 REVIEW OF RELATED LITERATURE . 8 1. Related Literatures .12 2. Related Studies 42 A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY vi CHAPTER III 52 RESEARCH METHODOLOGY 52 1. Locale of the Study 52 2. Research Design 52 3. Population, Sample and Sampling Technique .53 4. Research Instrument .53 5. Data Gathering Procedure 54 6. Statistical Treatment .54 CHAPTER IV 57 RESULTS AND DISCUSSION .57 1. The Respondents' Profile 57 2. Respondents’ Perception on the competitiveness of Bac Giang Province .61 3. Factors affecting to Bac Giang Competitiveness .71 CHAPTER V .85 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 85 1. Summary of Findings 85 2. Conclusions .87 3. Recommendations .88 REFERENCES 95 B a c K A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY vii APPENDIES Appendix Page 1. SURVEY QUESTIONNAIRE 100 2. CURRICULUM VITAE . 126 B a c K A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY viii LIST OF TABLES Table Page 1. Likert interpretation 53 2. Composition of Respondents According to Working Years and Type of Business .58 3. Composition of Respondents According to Line of Business and Type of Business .59 4. Composition of Respondents According to Capital Size and Type of Business .60 5. Composition of Respondents According to Capital Size and Number of Employee 61 6. Overall Respondents’ Perception on the Competitiveness of Bac Giang Province by Line of Business .62 7. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Entry Costs by Line of Business . 63 8. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Land Access and Tenure by Line of Business 64 9. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Transparency by Line of Business 65 10. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Informal Charges by Line of Business 66 11. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Time Cost by Line of Business . 67 12. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Pro-activity by Line of Business 68 A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY ix 13. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Business Support Services by Line of Business .69 14. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Labor Training by Line of Business .70 15. Mean Distribution of Respondents’ Perception on the Competitiveness of Bac Giang Province in Terms of Legal Institutions by of Line Business . 71 16. Descriptive statistics of regression .72 17. Model summary .73 18. ANOVA of regression .73 19. Results of estimation 74 20. ANOVA between Working years and Competitiveness Factors .76 21. ANOVA between Type of Business and Competitiveness factors 78 22. ANOVA between Line of Business and Competitiveness Factors 79 23. ANOVA between Capital Size and Competitiveness Factors .81 24. ANOVA between Number of Employees and Competitiveness Factors 83 B a c K A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY x LIST OF FIGURES Figure Page 1. Administration Map of Bac Giang Province 11 2. Theoretical Framwork . 49 3. Conceptual Framework . 51 B a c K . of Vietnam Republic of Philippines STRATEGIC MARKET PLAN OF BAC GIANG, VIETNAM Advisor : Dr. Edwin Bernal Name of Researcher : MAI SON English Name : JACKSON. Development VCCI: Vietnam Chamber of Commerce and Industry VNCI: Vietnam Competitive Index VND: Vietnamese Dong (Currency of Vietnam) WB: World Bank B