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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
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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
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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.
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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
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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
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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
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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
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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
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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
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APPENDIES
Appendix Page
1. SURVEY QUESTIONNAIRE...................................................................................... 100
2. CURRICULUM VITAE............................................................................................... 126
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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
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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
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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
BacK
A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON
STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY
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LIST OF FIGURES
Figure Page
1. Administration Map of Bac Giang Province.................................................................... 11
2. Theoretical Framwork..................................................................................................... 49
3. Conceptual Framework................................................................................................... 51
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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
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LIST OF ABBREVIATIONS
ADB: Asian Development Bank
ASEAN: Association of Southest Asian Nations
EU: European Union
GDP: Gross Domestic Product
GSO: General Statistic Office
HCM City: Ho Chi Minh City
JICA: Japan International Cooperation Agency
KOICA: Korean International Cooperation Agency
MOLISA: Ministry of Labour, Invalids and Social Affairs
ODA: Official Development Assistance
OLS: Ordinary Least Squares
PCI: Provincial Competitive Index
SMEs: Small Medium Enterprises
SMP: Stratergic Market Plan
UNDP: United Nations Development Programme
UNESCO: United Nations Educational, Scientific, Cultural Organization
USAID: United States Agency for International Development
VCCI: Vietnam Chamber of Commerce and Industry
VNCI: Vietnam Competitive Index
VND: Vietnamese Dong (Currency of Vietnam)
WB: World Bank
BacK
A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON
STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY
xii
APPROVAL SHEET
This thesis, entitled "STRATERGIC MARKET PLAN OF BAC GIANG,
VIETNAM" prepared and submitted by Mai Son in partial fulfillment of the requirements for
the degree of Doctor in Business Administration, has been examined and recommended for
acceptance and approval for FINAL EXAMINATION.
EDWIN BERNAL, PhD
Adviser
Approved by the Committee on Oral Examination with a grade of PASSED on ….
2013
Dr………………………..………………….. Member
Dr………………………..………………….. Member
Dr………………………..………………….. Member
Dr………………………..………………….. Chairman
Accepted in partial fulfillment of the requirements for the degree of Doctor in Business
Administration.
THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY
Dean Dean
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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
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ABSTRACT
In the recent decades, strategic market planning had been used as a strategy for
enhancing competitiveness that led to achieving growth in the economies of some successful
cities worldwide. This approach can be consider as an essential tool for the growth of urban
economies in the global context. The model of place planning based on principles of
marketing named Strategic Market Planning (SMP) that consists of the process of developing
strategies so that a place can reach its growth objectives through identifying and meeting its
target market demand. Place marketing is said to be both a consequence of, as well as a
necessity for, increased competition among places for the development of resources.
The competition is among developing places and/or among post-industrial cities
which has resulted in more aggressive and complex forms of competition. As a consequence
of the increasingly wide-ranging and aggressive competition, a place marketing strategy for
retaining and attracting investment has become essential.
With these points of view, the dissertation proposes a system of criteria to describe
the perceptions of the investors on factors affecting the provincial competitiveness of Bac
Giang as basis for introducing place marketing innovations as inputs to the Strategic Market
Planning (SMP) model for the province.
Further, the dissertation uses multivariate regression equation to evaluate fully factors
affecting to competitiveness capacity of Bac Giang province. Base on these analyses, the
dissertation proposes highly value recommendations to improve attractive image of Bac
Giang province.
Keywords: Strategic Market Planning, Place Marketing, Competitiveness, Provincial
Competitiveness
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1
CHAPTER I
INTRODUCTION
Background of the Study
In the recent decades, strategic market planning had been used as a strategy for
enhancing competitiveness that led to achieving growth in the economies of some successful
cities worldwide. Some scholars have judged this approach as an essential tool for the growth
of urban economies in the global context (Ashworth 1994; Ashworth & Voogd 1990; Gold
1994; Jessop 1998; Kotler et al. 1999; Kotler, Haider & Rein 1993; Kotler et al. 2002; Levine
1998; Luo & Zhao 2003; Wells & Alvin 2000). They have been generalizing and
conceptualizing this phenomenon in an effort to build a model of place planning based on
principles of marketing. Kotler (ibid.) named this approach Strategic Market Planning (SMP)
which consists of the process of developing strategies so that a place can reach its growth
objectives through identifying and meeting its target market demand. A place’s target market
might be businesses, visitors, residents, investors, donors and international financing
institutions.
Place marketing is said to be both a consequence of, as well as a necessity for, increased
competition among places for the development of resources. The concept of city marketing has
gained increasing attention as a means of enhancing the competitiveness of cities (Paddison
1993 cited in Short & Kim 1998). In the effort to respond to the demands of competition and to
attract the desired target groups, place administrators have recognized in marketing theory and
practice a valuable ally (Kavaratzis 2005, p. 329). Some scholars pointed out that competition
among places is not new. Cities have always existed within a market context of one sort or
another, and they compete among one another for resources, activities, residents and services
(Ashworth & Voogd 1990, p. 2). Many examples of marketing solutions, mainly promotional
measures, which cities used in much earlier time are provided in Ward (1998). However, these
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