THAI NGUYEN UNIVERSITY
UNIVERSITY OF ECONOMICS AND BUSINESS
ADMINISTRATION
TRAN THI THANH XUAN
ENHANCING THE PROVICAL
COMPETITIVENESS INDEX FOR BAC GIANG
PROVINCE
Major: ECONOMIC MANAGEMENT
Code: 9.34.04.10
DISSERTATION SUMMARY OF ECONOMIC
THAI NGUYEN - 2018
The study was completed at:
UNIVERSITY OF ECONOMICS AND BUSINESS
ADMINISTRATION
Scienntific superviser: Assoc. Do Anh Tai
The peer review 1:....................................................................
The peer review 2:....................................................................
The peer review 3:....................................................................
The dissertation is defended to the Panel of Experts : ...........
Meeting at:……………………………………………
Date: ………… 2018.
LIST OF PUBLICATIONS RELATED TO THE STUDY
1. Tran Thi Thanh Xuan (2014), "Research on solutions for trade
and sustainable development for Thai Nguyen province, Journal
of Science and Technology, Thai Nguyen University.
2. Tran Thi Thanh Xuan (2014), "Thai Nguyen focuses on improving 3
components index to improve PCI," Journal of Economics and Forecast.
3. Tran Thi Thanh Xuan (2015), "Enhancing National
Competitiveness: Experiences of Some Countries in the World,"
Journal of Economics and Forecast.
4. Tran Thi Thanh Xuan (2014), "Thai Nguyen focuses on
improving 3 components index to improve PCI," Journal of
Economics and Forecast.
5. Tran Thi Thanh Xuan (2017), "Improving the index" Market
Access "for the Northern Uplands," No. 657, Journal of
Economics and Forecast, No. 17/2017.
6. Tran Thi Thanh Xuan (2017), Provincial competitiveness under the
perspective of Vietnamese enterprises: Acase study in Bac Giang
province, Vietnam 2017 International Journal of Economics, Commerce
and Management. United Kingdom. ijecm.co.uk
7. Tran Thi Thanh Xuan, Do Anh Tai (2017), Provincial
competitiveness index from the perspective of business: The
situation and solution. Case study in Bac Giang, Vietnam,
International Journal of Economics, Commerce and Management.
United Kingdom. ijecm.co.uk
8. Tran Thi Thanh Xuan, Ha Xuan Linh (2017), "Assessing
provincial competitiveness from a business perspective", Journal
of Finance, September 2017
9. Tran Thi Thanh Xuan, Ha Xuan Linh (2017), Provincial
Competitiveness Index: Viewpoints and Solutions, Case Studies in
Bac Giang Province, Vietnam National Scientific Conference :
Accounting - auditing and economics Vietnam with the industrial
revolution 4.0- At Quy Nhon University, November 2017.
Scientific research at the grassroots level
10. Tran Thi Thanh Xuan (2014-2015), Research on Market Access
and Labor Indicators to Improve Competitiveness for Thai
Nguyen Province, Certificate of Achievement in Scientific and
Field-level technology: Grade A; Head of the topic.
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INTRODUCTION
1. Reasons for selecting the study
Provincial Competitiveness Index is a measure of local
competitiveness in attracting and supporting enterprises to invest in
a province. The Provincial Competitiveness Index (PCI) can be
considered as a "collective voice" of enterprises assessing the
provincial business environment with the operating enterprises
(Vietnam Chamber of Commerce and Industry -VCCI, 2011). In
recent years, many provinces and cities have actively implemented
and improved the investment environment, reforming
administrative procedures to improve the provincial
competitiveness to create favorable conditions for enterprises to
develop producing and business.
Enhancing the Provincial Competitiveness Index is an
important step for local governments to fill gaps and constraints in
policy as well as between policy design and implementation,
Empowering, between policy ideas and the demands of life,
businesses and citizens - the most important object that all policies
must serve (Pham Chi Lan - Senior Economist).
Some provinces have had success in improving and enhancing
provincial competitiveness. The initial results show that the socio-
economic situation has stabilized, many fields have changed
positively and affirmed the position of the local economy in the
context of Vietnam and the world with more fluctuations. According
to the PCI report of 2016 by the Vietnam Chamber of Commerce and
Industry, the provincial Competitiveness Index 2006-2016 is being
narrowed down between the lowest and highest provinces in 63
provinces ( only about 6 points). This shows that the competitiveness
among the provinces is becoming more drastic.
Bac Giang province is located between Northeastern provinces
and the Red River and Hanoi capital. It has a key position in socio-
economic and national defense and security; It is an important traffic
hub for roads, railways and inland waterways. However, the
province's economy has not developed adequately with its potentials
and strengths, the ratings result through the provincial
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competitiveness index of the Vietnam Chamber of Commerce and
Industry and Vietnam Competitiveness Index (VNCI) also shows that
Bac Giang is not a locality with good and stable ratings and stability
over the past years.
In 2006, it was the first year, Bac Giang province participated
in the assessment reached 55.89 points, ranked 16th out of 63
provinces and cities under the government and was in "good" group.
In the coming years to 2016, there were two years in the "relatively
low" ranking in 2008 and 2013, especially the provincial leaders had
issued many policies and measures to improve the competitiveness
index. However, in 2017, the ranking of the province still ranked
only in 33/63 provinces and cities and only reached the "average"
group. So the question is, what are the reasons? The competitiveness
index of the province has not improved, but also tend to decrease.
Because of the above situation, I decided to select the study
"Enhancing Provincial Competitiveness Index for Bac Giang
Province" as its doctoral dissertation to study the causes which made
the competitiveness index of Bac Giang provice still low and
reduced, to propose policy recommendations for the province to
enhance the provincial competitiveness index in the coming time.
2. The objectives of the study
2.1. Common objectives
The study aimed to find out why the provincial
competitiveness index was low and declining in Bac Giang, to
suggest specific solutions in order to enhance the provical
competitiveness index from 2018 to 2025.
2.2. Detail objectives
The dissertation aimed to address three specific objectives.
1. Studying the theoretical and practical basis on the
competitiveness index and improve the competitiveness index.
2. Identifying the the reasons why some the provincial
competitiveness indexs of Bac Giang was low and declining during
the period of 2006 - 2017
3. Proposing solutions for the period up to 2025 in order to
increase the provincial competitiveness index of Bac Giang province
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3. Statement of the Problem
The study sought to answers to the following questions:
1) What are low and declining provincial competitiveness
indexs of Bac Giang province during the period 2006 - 2017?
2) What are the causes of the Bac Giang provincial
competitiveness indexs being ranked as low and decreasing?
3) What should the provincial government focus on to enhance
the provincial competitiveness indexs that has been hit and dropped
in the period of 2006-2017 in order that they will be increase during
2018-2025?
4. Subjects, Scope and limitation of the study
4.1. Subjects of the study
Research on the issues related to the provincial
competitiveness index in relation to the attraction of investment to
the operation of private enterprises located in the province find out
the cause of the index Bac Giang's provincial competitiveness was
underestimated and decreases continuously in the period 2006-2017.
Specifically, the groups of low and declining indexs as
follows:
1. PCI low point group: Market Access Index; Access to land;
Transparency Index; Legal Indicator and Competitive Index.
2. Group of PCI dropped points: Labor training index;
Unofficial Cost Index and Dynamic Index.
4.2. Scope and Limitation of the study
The research is conducted for the duration of the study, the
conditions for the study are also calculated to ensure the assessment
of the status of provincial competitiveness indexes for the period
2006 to 2017. , the causes affect the provincial competitiveness index
low points and declining points. From that point of view, to propose
solutions to enhance the provincial competitiveness index, the
content of the study focuses on leaders of agencies and enterprises
distributed in the province.
1) Scope of information provision: research is conducted for
non-state sector enterprises operating in the fields of Trade, Services,
Construction and Industry, Households Business leaders, departments
(departments, departments) are operating in Bac Giang.
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2) Scope of content: The study only investigates the reasons
why the NLC index was low and decreased in the period 2006-2017.
3) Study space: The research will be conducted in Bac Giang
province (in 9 towns and cities), economic management agencies and
local people involved in production and business activities in Bac
Giang province.
4) Study Duration: The secondary data used in the study was
collected during 2006-2017. Primary survey data collected in 2017
5. The new points of the study
On the basis of inheriting previous studies, the study points out
that the causes for the PCI index in the period up to 2017 was always
underestimated and reduced in comparison with the median point of
the country to provide solutions. This will help to improve the
indexes and declining points in the next period. This is a new content
that the study will contribute to Bac Giang province.
The solutions proposed by the study are not only meaningful
application in Bac Giang province, but also to the lessons for
localities in the region to apply and accelerate the process of
sustainable economic development of the province.
6. The composition of the study
Apart from the introduction, conclusion, index, appendix, list
and reference, the dissertation consists of 4 main chapters:
Chapter 1: Overview of researches and theoretical bases for
enhancing the provincial competitiveness index.
Chapter 2: Site Characteristics and Research Methodology
Chapter 3: Situation of Provincial Competitiveness Index in
Bac Giang province 2006-2017.
Chapter 4: Solutions to enhance the provincial competitiveness
index of Bac Giang province in 2018-2025.
Chapter 1
THEORY AND PRACTICE ON ADVANTAGES OF
PROVINCIAL COMPETITIVENESS INDEXES
1.1. Overview of researches related to the study
1.1.1. Overseas studies:
1.1.2. Studies in Vietnam:
1.1.3. Comments from the research overview and research
orientation
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1.2. The general argument for enhancing the provincial
competitiveness indexes
1.2.1. Concept of PCI and classification of competitiveness
1.2.1.1. The concept of competitiveness
Within the scope of the dissertation, the author generalizes
Competitiveness as follows: Competitiveness is the ability to fully
assemble its resources and advantages and be utilized to maximize
the resources. The advantage is that it is highly effective for
achieving certain objectives in comparison with the general
conditions, similar to other objects.
1.2.1.2. The concept of provincial competitiveness.
From the above conception about PCI at provincial level,
there is the concept of provincial level as follows: PCI is well
implemented indicators based on available local resources and
overcome disadvantages of local . Each province will have policies
and steps appropriate to their specific conditions in attracting
investment capital and building DNTN. Socio-economic growth
according to the determined targets is the competitiveness of the
province. Thus, a province with high PCI shows the attractiveness of
investment and business for enterprises and investors, or has created
a favorable business environment, promoting the economic
development of the province.
1.2.1.3. The concept of enhancing the provincial competitiveness
index
Thus, According to the concept of author: Enhancing the
provincial competitiveness index is the process of reviewing,
examining, evaluating and understanding the causes that affect the
assessment of participants for 10 Provincial Competitiveness
Indexes. Basing on this proposes the correct solution to change the
viewpoints in the positive direction of the participants in the
evaluation of provincial competitiveness indexes.
1.2.1.4. Classification of Competitiveness
National competitiveness; Regional (PCI)
Thus, according to the concept of author: Local
competitiveness (provincial level) is the gathering of advantages of
local available resources to shorten the process of self-mobilization
to support more effective socio-economic development.
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1.2.1.5. The role of enhancing provincial competitiveness index
1.2.2. Content and approach of provincial competitiveness index
1.2.3. Factors influencing the Provincial competitiveness index
1.2.4. The relationship of Enhancing provincial competitiveness
index and provincial competitiveness index.
1.3. Practical basis for provincial competitiveness
1.3.1. Situation of provincial competitiveness indexes in Vietnam
during 2006-2017
Northern Mountainous Region; Red River; Central Coast; Centre
Highlands region; South East region; The Mekong Delta
1.3.2. Risen Indexes in the period 2006-2017
1.3.3. The declining indexes in the period 2006-2017
1.4. The experiences of enhancing PCI index in some provinces in
Vietnam
1.4.1. Bac Ninh Province: Application model "Business Doctor"
1.4.2. Quang Ninh province: Reform of administrative procedures
for investment - IPA model and competency assessment at
provincial, district and local levels (DDCI)
1.4.3. Thai Nguyen province: The task force in removing
difficulties for enterprises
1.4.4. Lessons for Bac Giang province
CHAPTER 1 CONCLUSION
Chapter 1 contains the following important contents: Overview
of works related to the dissertation, Theoretical basis for enhancing
provincial PCI index, Situation of enhancing the provincial PCI index
in Vietnam from 2006 to 2017 and experiences in enhancing the
provincial PCI index of some provices in Vietnam:
An overview of domestic and overseas research related to the
dissertation shows that there is no research topic on enhancing the
provincial PCI index for Bac Giang province for the period 2006-
2017 to find out the reasons why in this period have the low and
declining indexes compared with the median of the nation and
confirm the direction of study in this direction.
The general argument for enhancing the provincial PCI index,
competing concepts at various levels has been studied and published
by many scholars in the world and in Vietnam, but it is not yet
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possible to gather one standard concept is recognized. In this section,
on the basis of inheriting the concepts of previous authors
introduced the concepts of PCI, the concept of PCI at provincial level
and the concept of enhancing provincial PCI index in the study. In
addition to in this section, the role of enhancing the Provincial PCI
Index is necessary for attracting investment capital and economic
growth. Factors influence the Provincial PCI Index, enhancing the
Provincial Competitiveness indexes and the Provincial
Competitiveness indexes.
Situation of enhancing provincial competitiveness index in
Vietnam in the period of 2006 - 2017 of the Northern Mountains,
Red River Delta, Central Coast, Central Highlands, Eastern Region
The Mekong Delta and the Mekong Delta by analyzing the rise and
fall of the index.
Through the study of practical lessons on enhancing the
competitiveness of countries in the world and improving the index of
PCI in Vietnam shows that study on PCI, PCI has mentioned the
causes that affecting PCI and evaluated the actual situation of PCI of
the research object from which to give subjective judgment on PCI,
but not to evaluate the scale and quantify the impact of each factor to
PCI. On the other hand, there has been no empirical research on the
scope of the dissertation about the PCI for Bac Giang province
systematically. The dissertation has shown the causes of the effects
on the group of the provincial competitiveness indexes that have low
point, and the point has been made to develop some solutions to
improve the provincial competitiveness index for Bac Giang
province. Based on that, lessons learned for Bac Giang province in
enhancing the competitiveness index to attract investment, business
development and socio-economic stability in accordance with
conditions and circumstances. This is the reason why author chose
this topic as its research topic.
To carry out this research, Chapter 2 of the dissertation will
consider the characteristics of the study area and the method of
assessing the causes of the low and declining provincial competition
index in Bac Giang province.
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Chapter 2: THE CHARACTERISTICS OF STUDY PLACE
AND RESEARCH METHODOLOGY
2.1. Characteristics of socio-economic development of Bac Giang province
2.1.1. The natural conditions of the province
2.1.1.1. Geographic location, terrain
2.1.1.2. Weather, climate
2.1.1.3. Natural resources
2.1.2. Economic and social characteristics
2.1.2.1. Population and labor
Population: Bac Giang is a predominantly socio-economic province
of the Northeast, with an average population in the country.
According to the statistics of Bac Giang Statistical Office in 2016
more than 1,657,573 people, the average population density is 425.5
people / km2, the province has the average population density higher
than the average population
Figure 2.1: Population structure by urban / rural residence (%)
Source: Bac Giang Statistical Yearbook, 2006-2016
Labor:
Table 2.1: Human resource structure by professional
qualification Unit of calculation: 1000 people
professional qualification year structure (%)
2005 2010 2015 2005 2010 2015
Total 876,5 890,86 973,91 100 100 100
Unskilled workers 745,03 677,05 652,51 85,0 76,0 67,0
Elementary, technical 81,9 143,07 225,64 9,3 16,1 23,2
Vocational 11,8 17,1 23,20 1,35 1,91 2,38
Vocational colleges 1,5 2,3 4,30 0,17 0,26 0,44
Professional secondary school 12,2 17,4 23,20 1,39 1,94 2,38
College 8,2 12,5 16,80 0,94 1,40 1,73
University 15,7 20,9 27,10 1,79 2,33 2,78
Postgraduate (Masters, PhD) 0,18 0,54 1,15 0,02 0,06 0,12
Source: Bac Giang Statistical Yearbook, 2016
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2.1.2.2. Education and health
About Education and Training: 2016-2017: the province has
276 kindergartens (including 268 public and 8 non-public); 260
primary schools (including 259 public ones and 01 non-public ones);
225 secondary schools, 15 secondary schools, 49 high schools; 10
regular education centers; There are 6 professional secondary schools
(one of which is non-public), 4 colleges, 1 university and 82
vocational schools.
National prevalence rate for preschools is 44.1%; primary
school 77.2%; High school, boarding and high school 45.8%; Public
secondary schools 32.4%; The rate of classrooms per class is 0.8%.
On the professional education system: There are 6 professional
secondary schools (one of which is non-public); There are four
colleges and one university. It can be said with a province that the
quality of education and training so many policies to improve the
quality of teaching and learning to meet the requirements of
industrialization and economic integration of the province.
About health: The medical network includes: 9 provincial
hospitals; 9 district hospitals; 3 regional polyclinics; 230 communal
health stations and 10 preventive medicine centers. At present, the
facilities of the district hospitals are being upgraded and the Luc
Ngan General Hospital and five general hospitals at the district level
have been put into operation.
2.1.2.3. Infrastructure
Over the past years, Bac Giang province has made quite
impressive achievements in building and completing the system of
technical infrastructure and other structures of the economy, namely:
Traffic system: The transportation system of the province
consists of three main types: roads, railways and inland waterways,
and the traffic of the province is located between the Northeastern
provinces and the delta provinces. Red River and Hanoi capital;
located between the exchange center of the key economic triangle of
Hanoi - Hai Phong - Quang Ninh; An important transportation point
in the north. The inter-provincial road system is relatively good
compared to other provinces in the region, but the inter-district roads
and communes are still difficult due to their location.
Irrigation: The irrigation system is divided into 5 areas: Song
Cau, Cau Son - Cam Son, Nam Yen Dung, Song Soi and Luc Nam.
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There are 461 reservoirs, 147 dams, 674 pumping stations, 5,530 km
of irrigation canals, drainage ditches at all levels. Some irrigation
works of lakes, dams, pumping stations and canals are degraded, with
dikes still weak due to the low elevation of dikes, small cross-
sections, and poor flood control.
The power supply system: The provincial electricity network
has developed rapidly, with high electrification levels compared to
other provinces in the region. By 2007, the whole province had 100%
of communes having electricity and electricity. However, the power
distribution still exist many voltage levels, the grid has 22kv
investment but the construction is lacking, mainly in Bac Giang city
and Dinh Tram industrial zone. 10kv grid, 6kv in districts with poor
load capacity and reliability.
Water supply and drainage systems and environmental
pollution treatment: Bac Giang city uses water from a water plant
with a capacity of 25,000 m3 / day, supplying water for nearly 100%
of urban residents and a part of the city. into; Cities using hygienic
water; The remaining inhabitants mainly use natural water sources.
Telecommunication infrastructure: There are 131 switching
stations, 152 DSLAM stations, 749 BTS stations and 99 km inter-
provincial transmission lines. Mobile communications cover the whole
province, but there are many areas of weak waves, low capacity.
2.1.3. Industrial and urban areas
Industrial Zones: There are 6 industrial zones with a total area
of 1,417 ha: Dinh Tram, Quang Chau, Song Khe - Noi Hoang, Van
Trung, Viet Han, Chau Minh - Mai Dinh. The infrastructure in and
outside the industrial zone has basically been completed.
Table 2.2: Comparison of sizes of KCN - KCX in provinces Target Bac Giang Thai Nguyen Quang Ninh Bac Ninh
1. total KCN (including export
processing zones)
6 6 14 16
2. Toatl area (ha) 1.372,4 1420 7326,8 6397,68
3. Number of Investment Projects 274 153 470 754
4. Investment Capital
4.1. Domestic (VND million)
4.2. Foreign (USD million)
7.604,29
3.022,17
7.800
7.000
51.077
9.329
34.953,78
13.201,87
Source: The Management Board of industrial parks and EPZs of localities
There are 29 industrial clusters that have been formed in the
province. They are located near national highways, provincial roads and
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district roads. Therefore, they are convenient for transportation, some
industrial clusters do not have to invest in internal transportation system.
The road system is available such as Xuong Giang I, Dinh Ke Industrial
Cluster... Quang Chau Industrial zone has the largest area of 420ha
which has been filled nearly 85%. Bac Giang province is one of the
localities attracting investment and strong industrial development in the
northern mountainous provinces.
Urban areas:
2.1.4. Economic growth
Economic growth is one of the most important goals of the
national and local economies to enhance the well-being or prosperity of
the economy.
Figure 2.2: Economic growth rate of Bac Giang compared with the
whole country and some other provinces in the period 2010 to 2016
Source: Bac Giang Statistical Office, 2010 – 2016
In general, Bac Giang has achieved high economic growth in
recent years. High economic growth rate is stable and stable in 2010 -
2016 period. The province's average GDP growth rate of 9.0% per year
for the period 2006-2010 increased to 9.2% per; higher than the GDP
growth rate of the whole country (6.3%) and equal to Quang Ninh
province is 9.2% per year, although affected by the global economic
crisis 2008-2010 has made FDI and export turnover decreased
considerably. The economic growth rate in Bac Giang province was
lower than that in Bac Ninh province, Thai Nguyen province in this
period, but still maintained a high growth rate, especially in 2017 GDP
of Bac Giang province up 13.3%. High and sustainable growth rate is a
strong point in competitiveness (NLCT) and provincal competitive
(NLCT) index in Bac Giang Provincial EFF.
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2.1.5. Structure of economic sector
Figure 2.3: The level of structural shift in construction-
construction industry in the period 2010-2017 Source: General Statistics Office, 2017
The sector structure of Bac Giang province is on the positive
trend of moving from agriculture-industry-service to industry-service-
agriculture. With the contribution of the industrial sector, high growth
rate and high level of migration are over 80%, much higher than the
level of general restructuring of the country (Figure 2.3).
2.2. Research Methods
2.2.1. research process
The dissertation has analyzed, developed the research process,
approach method and assessed the causes of low and declining
provincial competitiveness indexes (PCI) in Bac Giang province with
its influencing factors, then suggested solutions to enhance provincial
competitiveness.
2.2.2. Select research content
This dissertation focuses on the remaining eight indexes (five
indexes are: Market Access Index, Access to Land, Transparency, Legal
and Equitable Institutional Arrangements and The three indexes are:
Labor Training Index, Informal Expenditures Index and Dynamic Index.
The author will deepen the understanding of reasons why these 8
indexes were underestimated low and decreased in the past time
2.2.3. Research approach
Regional access; * Access by type of business
2.2.4. Select the sample
Sampling: The research applied a stratified sampling method
based on sampling criteria including 10 districts and cities, leaders of
agencies and enterprises. Apply the sample size Slovin. Total sample
size: 850/3134 subjects.
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2.2.5. Data used: The study used primary and secondary data sources
2.2.6. Methods of data processing and synthesis:
Processing information, positioning and synthesizing into a
complete database using SPSS software 20.0.
2.2.7. The system of research indexes
2.2.8. Data analysis method
Descriptive statistics; Comparative statistical methods; Factor
analysis; Determine the difference
CONCLUSION CHAPTER 2
In this chapter the author presents the following basic contents:
First, geographic characteristics of geographic location,
population, infrastructure, industrial zones,... in the province.
Through analysis, it can be seen that Bac Giang is located in the
northern key economic region, with natural conditions and favorable
infrastructure of diverse human resources. However, the economic
development of the province is not commensurate with the potential
and strength shown by the research results of VCCI annually.
Second, the methodology and procedure used in the study. The
research methodology included in this study is a combination of
qualitative and quantitative methods. Qualitative research in this
chapter presented the methodology and results of qualitative research
to determine the 8-factor scale affecting the PCI with 86
observations.
The official scale of the factors affecting the provincial PCI
indexes and the survey results will be used to analyze the situation of
the PCI indexe of the leaders and the private enterprises in Bac Giang
province in Chapter 3
Chapter 3
THE SITUATION OF BAC GIANG PROVINCIAL
COMPETITIVENESS COMPETITIVENESS INDEXES IN
THE PERIOD 2006-2017
3.1. The Situation of Provincial Competitiveness Index of Bac
Giang province in the period 2006-2017
3.1.1. Comparing Bac Giang with other provinces in the whole
country and in the northern mountainous provinces
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Figure 3.1: PCI comparisons with neighboring provinces
Source: VCCI, 2017
Table 3.1: PCI ranking of Bac Giang province in the period 2006-2017
INDEX 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
PCI 55.99 55.48 47.44 57.5 58.02 60.79 57.08 54.79 57.33 57.61 58.2 62.20
Nationwide rate 15 55 50 37 32 23 31 49 41 40 33 30
Regional rate 3 11 7 7 3 3 4 6 4 4 4 4
Rank Good Quite
good TĐT Quite
good Quite
good Good Quite
good TĐT Quite
good Quite
good Quite
good medium
Source: The author compiled from Bac Giang PCI 2006-2017
Regarding the composite indexes, see Figure 3.7. Overall, It
can be seen that there are two indexes: Market entry index and time
cost are big changes. This shows that the investment environment has
been improved by enterprises but not high.
Figure 3.2: Composition index scores for PCI, 2017
Source: The author compiled from Bac Giang PCI 2006-2017
3.1.2. The results of the preliminary survey of experts, the
managers and the enterprises
3.1.2.1. Low PCI group
The market entry index includes: The cadres and civil
servants (CBCC) have good ethics, qualifications and administrative
skills with the structure, titles and standards to meet the specific
requirements of the implementation. equitment; Administrative
procedures (ensuring the rationality, scientific and synchronous);
Provincial authorities accompanying enterprises; Geographical
location; The infrastructure; Natural resources:
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Land Access Indicators: Land planning at all three levels
(Commune, Ward - District - City, Town - Province).
Granting LURCs (land use right certificates) for enterprises
will be more comfortable in production and business activities. On
the contrary, businesses are afraid and can not boldly invest in new
construction because it becomes very unstable. In the case of risk of
land acquisition, very few companies believe that they are
compensated satisfactorily.
Clear disclosure of procedures for allocation of land for lease,
conversion of land use purpose and time for completion of land
clearance procedures Land price policy:
Transparency Index: Measuring access to provincial plans and
the legal documents needed for business operations, whether the
business can fairly access these documents, New policies and
regulations have been consulted by enterprises and anticipated in the
implementation of those policies and the usability of the provincial
website for the business. Including the planning document approach,
legal documents get easy or not? ...
Transparency of information and policies of local authorities
is essential to reduce the state of deliberate corruption; Financial
transparency
Legal institution index: The legal institutional index is a
measurement of trust of organizations, individuals and enterprises in
the provincial judicial and internal affairs bodies, whether these legal
institutions have is considered as an effective tool to resolve disputes
or where the business can complain about acts of harassment of
public officials in the local ... Therefore, to improve the provincial
competitiveness, it í neccessary to join the joint efforts to improve the
index of the authorities.
Competitive Equality Index: Unbalanced competition; Local
governments often favor foreign enterprises in accessing land, credit
and public procurement, that is a constraint to their operations.
In addition to the relationship, large enterprises in the province
(in terms of turnover and labor) also received much favor.
Preferential for large enterprises and familiarity most clearly in the
field of public procurement, followed by access to land, capital and
administrative procedures quickly, simply. Besides, provincial
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leaders prefer to attract foreign investment rather than developing
private enterprises in the province.
3.1.2.2. Declining PCI group
Unofficial cost index: This index measures unofficial costs that
an enterprise must pay, such as the barriers caused by these unofficial
costs to its business operations. business; the payment of unofficial fees
has the desired effect or "service" and whether government officials use
local regulations for their own benefit. This score serves as a basis for
provincial and city leaders to reorganize local civil servants. In the past
time, unofficial fees caused quite a lot of annoyance for enterprises when
coming to work in administrative agencies.
Human resource index: Human resource exploitation is one
of the important strengths for the efficiency of work, which will
decide to improve the provincial competitiveness, which is a
distinctive feature compared to all other factors.
To develop education and training links between training
establishments attached to enterprises in localities. Training to meet
the needs of localities while improving the quality of training at the
establishments.
Develop health, care for the health of employees in the enterprise.
The dynamic leadership index of provincial leaders:
The economic structure; Quality control of local government;
Development strategy:
3.1.3. The constituent components ranking of provincial competitiveness
3.1.3.1. The High Provincial Competitiveness Index Group
An index has higher score than the median score of the whole
country. Specifically, these are:
Business service support index
Time cost index
Table 3.2: High PCI index group of Bac Giang
In the period 2006-2017 Index 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Business support 6.66 4.54 6.91 5.62 6.3 3.25 4.36 5.57 5.72 5.69 5.28 6.06
Ranking 28 26 47 17 17 41 16 20 27 27 42 49
National benmark 4.88 6.54 7.46 5.13 5.68 3.68 3.87 5.22 5.62 5.57 5.49 6.61
Time cost 6.66 5.16 4.65 5.94 5.83 7.72 6.23 5.6 6.19 6.98 7.11 5.70
Ranking 24 54 48 46 41 11 21 48 44 22 12 37
National benmark 6.55 5.59 5.19 6.53 6.31 6.63 5.72 6.20 6.55 6.65 6.58 6.48
Source: Compiled from Bac Giang PCI 2006-2017
17
3.1.3.2. Low Provincial Competitiveness Indexes
Table 3.3. Low Provincial NLCT indexes 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Market Entry 8.18 7.49 6.31 8.37 6.44 8.53 8.95 6.21 8.72 8 8.51 7.82
Median 7.36 7.78 8.22 8.3 6.65 8.54 8.73 7.42 8.3 8.42 8.51 7.84
Land Access 6.01 6.46 6.61 6.09 4.8 5.98 5.78 6.1 6.03 6.05 5.63 6.54
Median 5.92 6.27 6.62 6.42 6.06 6.48 6.52 6.79 5.81 5.92 5.77 6.33
Legal Institution 4.00 4.24 2.76 4.39 4.85 4.18 4.02 5.1 5.91 5.65 4.76 6.10
Median 3.77 4.33 4.63 5.33 5.1 5.8 3.55 5.63 5.81 5.78 5.46 5.94
Transparency 5.81 5.15 6.35 6.99 6.11 6.19 5.91 5.89 5.87 5.83 6.04 6.73
Median 5.34 5.84 6.00 5.91 5.74 5.84 5.78 5.56 6.05 6.17 6.24 6.34
Fair Competition N/A N/A N/A N/A N/A N/A 3.53 4.06 4.64 4.35 4.72
Median 5.5 5.15 4.93 5.05 5.14
Source: VCCI data for 2006-2017
3.1.3.3. The provincial competitiveness index was reduced
The declining PCI indexes are: The indexes have the following
yearly scores lower than the previous year in the period 2006-2017. As such,
Bac Giang province has three decreasing indexes: 1 Informal; 2 labor index;
3) Dynamic features and dynamic index, specifically as follows:
Table 3.4. Provincial competitiveness indexes declined 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Unofficial Cost 6.32 6.92 6.6 4.84 6.43 6.7 5.65 5.9 4.51 5.76 5.1 5.51
Labor Training 6.41 6.59 3.79 4.29 5.36 4.92 4.69 5.11 5.92 5.69 6.44 6.32
Dynamic 4.89 5.19 4.89 4.77 5.5 4.84 4.84 4.96 4.74 4.7 4.67 6.05
Source: VCCI data for 2006-2017
3.2. Analysis of the factors that led to the study found the causes affecting the results of assessment of provincial competitiveness indicators in Bac Giang province were low and decreased. 3.2.1. Verification of scale via Cronbach's Alpha
Table 3.5 illustrates Cronbach's Alpha test results for causal variables to improve provincial CLC index
Group Cronbach’s Alpha Conclusion
1. Market Access Index 0,702 Acceptable 2 Land Acess Index 0,708 Acceptable 2. Transparency Index 0,770 Acceptable 4. Legal Index 0,746 Acceptable 5. Fair Compaetition Index 0,763 Acceptable 6. Informal Cost Index 0,758 Acceptable 7. Labor Training Index 0,607 Acceptable 8. The Dynamic Index of Leaders 0,722 Acceptable
Source: Extracted from data survey, 2017
3.2.2. For the low provical PCI indexes 3.2.2.1. Market Access Index
18
Table 3.6: The cause assessment of low market access Index Unit of calculation: points
Causes population (n = 689)
leaders (n=104)
Outside government enterprises
(n =314)
FDI enterprises
(n=271)
TT1 Position advantage of the province 3,67 3,72 3,63 3,65 TT2 The infrastructure 3,14 3,40 3,14 2,89 TT3 Natural resources of the province 3,85 3,94 3,71 3,91
TT4 The cadres and civil servants (CBCC) have good ethics, level, administrative skills at commune level (wards)
2,69 2,76 2,60 2,72
TT5 The cadres and civil servants (CBCC) have good ethics, level, administrative skills (district)
2,79 4,04 2,15 2,14
TT6 The cadres and civil servants (CBCC) have good ethics, qualifications and administrative skills at provincial level
3,15 3,41 2,93 3,10
TT7 Administrative procedures (ensure rational, scientific and synchronous) at provincial level
3,05 3,29 2,82 3,04
TT8 The provincial government has the same business 3,56 3,85 3,56 3,26
TT9 District and city authorities accompany the enterprise
3,53 3,85 3,56 3,19
TT10 Commune authorities have the same business 3,26 3,43 3,15 3,19 TT11 City (District) tax declaration online 2,03 3,41 2,68 2,76 TT12 The province applies online tax declaration 2,57 2,90 2,47 2,34 TT13 Waiting time for DN to complete the procedure 2,72 2,54 2,86 2,76
Mean 3,09 3,37 3,06 3,14 Source: The result of survey data, 2017
3.2.2.2. Land access and land use index Table 3.7: Assessment of causes of low land access index
Unit of calculation: points
Causes Population (n = 689)
Leaders (n=104)
Outside government enterprises
(n =314)
FDI enterprises
(n=271)
DD1. Land planning is publicly available at the commune level
3,25 3,38 3,05 3,31
DD2. Land planning is public at district level (city) 2,32 2,19 2,50 2,28 DD 3. Land planning is public at the provincial level 2,35 2,03 2,58 2,43 DD 4. The process of issuing a LURC is complex 3,24 2,78 3,20 3,75 DD 5. Procedures for allocation of land for lease with notice in accordance with regulations
3,38 3,46 3,45 3,22
DD 6. Procedures for changing the purpose of land use guidance or notice in accordance with regulations
3,56 3,72 3,51 3,44
DD 7. The time for completion of the ground clearance procedures is scheduled
2,60 2,30 2,86 2,64
DD 8. High land prices compared to the market 3,67 3,72 3,63 3,67 DD 9. Land price policy is appropriate to the market 3,62 3,32 3,71 3,83 DD 10. Price policy is lower than market price 3,65 3,60 3,68 3,67 DD 11 The Management Board of the industrial park in the work of appropriate layout
3,86 3,94 3,71 3,93
DD12: The stability of land in enterprises 3,19 3,54 3,07 2,97 Mean 3,22 3,17 3,25 3,26
Source: The result of survey data, 2017
19
3.2.2.3. Transparency Index Table 3.8: Evaluating the causes of the Low Transparency Index
Unit of calculation: points
Causes Population
(n = 689)
Leader
(n=104)
Outside government enterprises
(n =314)
FDI enterprises
(n=271)
MB1: Legal documents related to the ease of enterprises 3,95 4,32 3.01 4.52
MB2: New district policies and regulations have been consulted enterprises
3,63 4,30 3.26 3.35
MB3: New provincial policies and regulations have been consulted
3,16 3,31 2,99 3,19
MB4: The implementation of these policies is timely 2,76 2,82 2,59 2,86
MB5: Usefulness of the provincial website for enterprises. 3.45 3.48 3.12 3.75
MB6: Transparency of information and policies of district authorities
3,06 3,11 3,04 3,04
MB7: Transparency of information and policies of provincial authorities
3,19 3,03 3,08 3,46
MB8: Financial transparency in the relationship between taxes and government expenditures
3,35 3,60 3,25 3,21
Mean 3,35 3,58 3,04 3,43
Source: The result of data processing, 2017
3.2.2.4. Legal institution index
Table 3.9: Evaluating the causes of the low legal index Unit of calculation: points
Causes Population
(n = 689)
Leaders
(n=104)
Outside
govement
enterprises
(n =314)
FDI
enterprises
(n=271)
PL1. The trust of organizations (individuals, businesses) in
the district's internal and judicial bodies. 2,82 2,38 3,12 2,96
PL 2. The confidence of organizations (individuals,
enterprises) in the provincial judicial and internal affairs 2,63 2,39 2,72 2,79
PL 3. This legal institution is considered by businesses as an
effective tool for dispute resolution 2,91 2,78 3,20 2,74
PL 4. The enterprise can complain about acts of harassment of
civil servants in the commune 2,82 3,24 2,57 2,65
PL 5. Enterprises can complain about harassment of officials
in district (city) 2.60 2,39 2,72 2,70
PL 6. The company can complain about harassment of
officials in the province 2,86 2,84 2,89 2,86
PL 7. Conclusions made by the district court in dealing with
disputes 2,81 2,62 3,09 2,72
PL 8. Conclusions made by the provincial court in dealing
with disputes 2,83 2,84 2,80 2,86
PL 9. Due to the large number of applications, the district
level is delayed 2,18 2,37 1,98 2,18
PL 10. Due to the large number of applications at the
provincial level, the delay was too late 2,25 2,57 2,08 2,10
PL11. The cost of solving procedures is not correct 2.79 2.84 2.80 2,73
Mean 2,68 2,66 2,72 2,66
Source: The Data Processing, 2017
20
3.2.2.5. Fair competition index
Table 3.10: Assessments of leaders and enterprises on the causes
of low fair competition indexes Unit of calculation: points
Causes Population
(n = 689)
leaders
(n=104)
Outside
government
enterprises
(n =314)
FDI
enterprises
(n=271)
CT1: incentives for corporations, state corporations rather than
private companies 2,87 2,84 2,89 2,87
CT2: preferential for business climate rather than domestic
enterprises 2,64 2,62 2,61 2,68
CT3: Provincial government prefer greater enterprise to DNVVN 2,86 3,38 2,54 2,66
CT4: Government enterprises are more favourable in accessing
land than private enterprises 2,74 3,30 2,34 2,58
CT5- Due to government enterprises are more favourable in
accessing land than private enterprises 2,81 3,36 2,65 2,41
CT6: The debt rate of government enterprises is higher than that of
the private enterprises 2,82 2,88 2,72 2,85
CT7: Due to government enterprises are more favourable to bank
loans than private enterprises 2,81 2,88 2,72 2,83
CT8: Finance, banking and loans of enterprises 2,41 2,19 2,53 2,52
3,19 3,55 3,01 3,02
CT9: Enterprises can not borrow without mortgage 3,17 3,31 3,14 3,05
CT10: Loan procedures 2,84 3,21 2,61 2,70
CT11: Expenses for bank staff
CT12: Enterprises have no preferencial policies for loans 2,99 3,00 3,08 2,89
Mean 2,85 3,04 2,74 2,76
Source: The Data Processing, 2017
3.2.3. Declining provincial PCI index group
3.2.3.1. Unofficial cost index
Table 3.11: Evaluating the causes of unofficial cost indexes
Unit of calculation: points
Causes Population
(n = 689)
Outside
government
enterprises
(n=314)
FDI
enterprise
(n=271)
CP1: Doing paperwork for businesses in the departments in the commune 2.54 2,42 2,66
CP2: Doing paperwork for businesses in the departments in the commune 2.50 2,40 2,60
CP 3: Doing paperwork for businesses in departments in the district 2.73 2,85 2,61
CP4: Doing paperwork for businesses in the departments in the province 2.80 2,69 2,90
CP5: Carrying out tax procedures in the district 2.65 2,50 2,79
CP6: Carrying out tax procedures in the province 2.61 2,60 2,62
CP7: CBCC work in enterprises 2.47 2,16 2,77
CP8: Gifts for important local days 2.26 2,03 2,49
CP1: Doing paperwork for businesses in the departments in the commune 2.62 2,40 2,83
Mean 2,59 2,45 2,70
Source: The Data Processing, 2017
21
3.2.3.2. Laboe Index
Table 3.12: Evaluating the causes of declining labor index
The unit of calculation: point
Causes Population
(n = 689)
Leaders
(n=104)
Outside
government
enterprises
(n =314)
FDI
enterprises
(n=271)
LD1: Labor meets the Health requirements of enterprises 4,19 4,49 4,12 3,95
LD2: Labor meets the skill requirements, working qualification of the
enterprise 3,39 3,22 3,63 3,33
LD3: The training facility satisfies the requirements of the enterprise 2,66 2,98 2,26 2,74
LD4: The quality of labor is suitable for enterprises 2,86 2,32 3,24 3,03
LD5: Enterprises have difficulties in recruiting laborers 3,00 2,68 3,13 3,18
LD6: Labor market in the province is rich 3,15 2,68 3,25 3,51
LD7: Disputes between workers and government enterprises have
timely intervention. 3,14 2,68 3,25 3,49
Mean 3,20 3,01 3,27 3,32
Source: The Data Processing, 2017
Table 3.13: The Cause Assessment of dynamic and pioneering
indexes of provincial authorities
The unit of calculation: point
Causes Population
(n = 689)
Leader
(n=104)
Outside
government
enterprises
(n =314)
FDI
enterprises
(n=271)
ND1: The province has set up a spearhead industry to attract investment 2,63 2,83 2,50 2,55
ND2 Management of communal leaders is flexible in administrative
procedures 2,84 2,88 2,72 2,91
ND3: At the district level, there is flexibility in favor of the two parties 3,15 3,31 2,99 3,14
ND4: The provincial level is flexible in favor of the two sides 3,26 3,21 3,20 3,37
ND5: Quality of work in the district 2,72 2,98 2,26 2,92
ND6: Quality of work in the province 2,69 2,91 2,59 2,56
ND7: The province has applied science and technology in solving work 3,24 3,21 3,20 3,30
ND8: There is a built-in "business" model for helping businesses 3,04 2,91 2,59 3,62
ND9: There is capital support for enterprises 3,69 4,49 3,31 3,27
ND10: There is support for businesses on land 2,83 2,88 2,72 2,88
ND11: There is support for information 2,87 3,13 2,76 2,72
ND12: Support for new product development 3,25 3,43 3,15 3,16
ND13: There is support for enterprises on administrative documents 2,16 2,37 1,98 2,14
ND14: The province directly solved difficulties for businesses 2,22 2,54 2,07 2,04
Mean 2,90 3,08 2,72 2,90
Source: The Data Processing, 2017
3.3. A general assessment of the causes affecting the provincial
competitiveness index has been reduced and low points
The results of the survey on the factors affecting the provincial
competitiveness index in Bac Giang province with the sample size
(689 leaders and enterprises) are shown in Table 3.14.
22
Table 3.14: Mean values of factors influencing the provincial
copetitiveness index in Bac Giang province
Scale Population
(n = 689)
Leader
(n=104)
Outside
government
enterprises
(n =314)
FDI
enterprises
(n=271)
1. Market entry index 3,08 3,43 3,02 3,14 2. Land access index 3,22 3,17 3,25 3,26
3. Transparency index 3,32 3,50 3,04 3,42
4. Institutional index 2,68 2,66 2,72 2,66 5. Fair competiton index 2,85 3,04 2,74 2,76
6. Informal cost index 2,59 2,61 2,45 2,70
7. Labor index 3,20 3,01 3,27 3,32 8. Dynamic index 2,90 3,08 2,72 2,90
Mean 2,96 3,06 2,84 3,14
Source: Summary of data processing results of the dissertation
CONCLUSION CHAPTER 3
The content of Chapter 3 presents an overview of the situation
of the competitiveness index of the whole country and Bac Giang .
The situation of pcompetitiveness enterprises operating in the
province. Relate to the results of studies from VCCI on PCI, compare
the PCI of Bac Giang with other provinces with similar conditions,
clarify the relationship within the PCI of Bac Giang province. 2006
to 2017 and PCI status in 2017.
Competitive components of Bac Giang province were also
presented. These factors were determined by research results from
theoretical basis of Chapter 1, Chapter 2 and limited practical
conditions. Decentralized by the roles and tasks of the Government
and Bac Giang provincial authorities. These factors have been
identified as important in shaping and improving the Provincial
Competitiveness Index of Bac Giang province, as it is regulated and
resolved by Bac Giang authorities.
Also in this chapter the author use the SPSS20.0 support tool
to analyze the impact of factors on each indicator: Market Access
Index; Land access and land use index; Resource index and labor
training; Business cost index, unofficial cost index; Transparency
index; Legal institution index; Dynamic and pioneering index of
provincial government; Fair competition index. By factor analysis:
Evaluating the reliability of the internal consistency scale -
Cronbach's Alpha coefficient; Verification of the fit of the model;
23
Analysis of the variance to determine the most influential factors is
the reason for the low PCI score at provincial level.
Chapter 3 also assesses the success and limitations, difficulties
and need to improve the PCI of Bac Giang province, besides the
success, the existence and limitations need to continue to be
interested and improved more in the coming time.
Chapter 4
SOLUTION TO ENHANCE THE PROVICIAL
COMPETITIVENESS INDEX OF BAC GIANG PROVINCE
PERIOD 2018-2025
4.1. Orientation for socio-economic development of Bac Giang
province in 2018-2025
4.1.1. Opportunities and challenges
4.1.2. Socio-economic development goals and targets for 2018-2025
4.1.2.1. Oriented development
4.1.2.2. Development Goals
4.2. Solutions to enhance provincial competitiveness index of Bac
Giang province in 2018-2025
4.2.1. Solution for the low index group
4.2.1.1. For the content of the Market Access Index
4.2.1.2. For land access and land use index
4.2.1.3. For Transparency Index: Enhance transparency and help
businesses access information
4.2.1.4. For Legal Institutional Indexes
4.2.1.5. For Fair competition index
4.2.2. Solution for the declining index group
4.2.2.1. For unofficial expense indexes
4.2.2.2. For labor training index
4.2.2.3. For the dynamics index of the leaders
4.3. Solutions for enterprises to enhance the provincial
competitiveness index
4.3.1. Solutions to strengthen the financial capacity of enterprises
4.3.2. Develop human resources strategy
4.3.3. Link in business
The difficulty and need to improve the PCI of Bac Giang
province, besides the success, the existence and limitations need
to continue to be concerned and improve more in the future.
24
ONCLUSION CHAPTER 4
Prior to introducing solutions to enhance the provincial
competitiness index, the author examines the socio-economic
development orientation of Bac Giang province in the period of
2018-2015. Basing on the socio-economic development objectives of
each province such as industry-construction, agricultural
development and the development of trade and services.
Based on the results of the survey, the situation in Chapter 3
shows the factors that have a great influence on the provincial PCI,
the author gives the low and declining groups for each target groups
are: Leaders, enterprises to raise the provincial PCI in the period
2018-2025.
CONCLUSIONS AND RECOMMENDATIONS
1. Conclusion
2. Recommendations
LIST OF PROJECTS HAS BEEN PUBLISHED
CONCERNING DISSERTATION
REFERENCES
