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THE UNIVERSITY OF DA NANG

UNIVERSITY OF ECONOMICS



PHUNG VAN THANH

DEVELOPMENT OF NON NUOC TRADITIONAL

STONE CARVING VILLAGE

Major: Business Administration

Code: 62.34.01.02

DOCTORAL THESIS SUMMARY

Da Nang – 2022

THE UNIVERSITY OF DA NANG

The work was completed in UNIVERSITY OF ECONOMICS

Supevisors:

1 Ass Prof Dr Pham Thi Lan Huong

2 Dr Le Thi Minh Hang

Can learn dissertation at:

- Materials Information Center – The University of Da Nang

- Library of University of Economics – The University of Da Nang

INTRODUCTION

1 The urgency of the thesis

Non Nuoc traditional Stone Carving village is a famous craft village with a long history of formation and development Craft villages play an

important role in the socio-economic development of the locality Craft

villages are facing huge market opportunities, but there are still many

limitations that do not ensure sustainable development such as: Small scale

of production and business; low production - business results; the amount

of accumulated capital to invest in business development is not high, it is

difficult to raise capital to expand production and business; linkage

activities between production and business establishments with each other

and with related organizations are limited, product quality is uneven,

competitiveness is not high, innovation is still low, and low-educated

workers, inadequate mechanisms and policies, problems of environmental

pollution, infrastructure that is although invested but there are still many

shortcomings, problems with output markets for products are facing many

difficulties The industry linking cluster theory is widely used in the world

as a theoretical basis for research to improve the competitiveness of

industry and service industries Therefore, the author chooses the research

topic: “Development of Non Nuoc traditional Stone Carving Village”

According to the approach method of industry linking cluster, it will solve

the current problems of the locality, in line with the current development

trend in the region and in the world, helping craft villages to develop

sustainably

2 Research questionnaire

What is an industry cluster? What are the characteristics of the industry cluster and what role does it play in the effective and sustainable

development of traditional craft villages?

Explain the correlation between the cluster development model and the characteristics of the craft village? (Identify traditional craft villages as

clusters of industry links)

Why do you think that the model of clustering can be used to develop Non Nuoc stone craft village?

Criteria to evaluate the conditions for sustainable development of craft villages in the direction of industry clusters?

The development status of the Non Nuoc Stone Carving Village of in recent years, analyzing the production and business situation of craft

village enterprises, the conditions for the development of traditional craft

villages in the direction of industry clusters, advantages and limitations of

those conditions?

In the coming time, how does Non Nuoc Stone Carving Village develop in the direction of industry clusters and what measures should be

taken to promote the formation and sustainable development of handicraft

villages in the direction of industry clusters?

analyzing the current situation of craft villages and proposing some

solutions for sustainable development of Non Nuoc traditional Stone

The research will follow different approaches: participatory approach, cluster-based approach to industry linkages through the craft village

product value chain, and socio-economic and environmental field-based

approach

In particular, special attention is paid to the approach to research and development of Non Nuoc Stone Carving Village in the direction of

developing into an industry-linked cluster from different angles In line

with the specialized nature of Business Administration, the author chooses

an approach to research on the formation and development of industry

clusters of Non Nuoc Stone Carving Village from the perspective of

businesses and linkages between enterprises in the production and business

process That is, studying the conditions for the formation and development

of a cluster of associations of Non Nuoc Stone Carving Village through

studying the process of agglomeration and centralization of production by

enterprises in the craft village to effectively organize vertical and

horizontal linkages in the value chain of Non Nuoc Stone Carving Village

In addition, the study of some contents related to state management

agencies is mainly to clarify the roles and responsibilities in ensuring the

conditions for the development of linkages between enterprises in the

cluster of craft village in line with the increasing development requirements

of the domestic and world markets

5.2 Research Methods

On the basis of research approach with participatory and industry linkages through the value chain of craft village products as well

cluster-as the socio-economic-environmental approach The study wcluster-as designed

and conducted based on the combined assessment of producers, enterprises,

and managers and combined information sources for analysis Secondary

data sources were collected from the Statistical Yearbook of the General

Statistics Office, the Statistical Yearbook of the Danang Statistical Office,

the Ngu Hanh Son District Statistical Office, Da Nang Socio-Economic

Development Research Institute, reports of city departments and agencies

and Ngu Hanh Son district Primary data sources were collected from

surveys, interviews with production and business enterprises in the on

Nuoc Stone Carving Village, experts, central and local managers

Collected data was coded and entered by Excel software; Analyze data, calculate statistical parameters, analyze statistics and interpret results using

SPSS statistical software Analytical, descriptive and comparative methods

were mainly used in the research process

6 Scientific contributions of the thesis

6.1 Theoretical contributions

- From theoretical research on clusters of industry linkages, based on agglomeration, to centralize businesses into geographical areas and

territories, and to link vertically and horizontally between stages in the

product value chain together with the inheritance of previous studies on

craft villages to build a theoretical basis for the development of traditional

craft villages in the direction of industry clusters, the thesis has clarified the

nature, basic characteristics and roles of traditional craft villages The role

of the formation and development of industrial clusters with the effective

and sustainable development of enterprises in the value chain of traditional

craft villages

- Develop criteria and conditions for developing traditional craft villages in the direction of industry clusters to ensure sustainable

development of craft villages The thesis has specified 5 basic conditions

that have a direct impact on the formation and development of clusters of

trade villages: (1) The accumulation and concentration of enterprises by

geographical area; (2) The linkage along the value chain of craft village

products; (3) Competitive advantage; (4) Innovation; (5) Mechanisms,

policies and management of the state

6.2 Practical contributions

Applying the basic theoretical problems of clusters of industry linkages

in accordance with the characteristics of traditional craft villages, from

analyzing the overview features of the development of the Nuoc Stone

Carving Village, the thesis has come to an in-depth analysis of the current

situation of accumulation and centralization of production by enterprises

and production facilities in craft villages, the status of vertical and

horizontal linkages between enterprises and production facilities businesses

and related organizations in the craft village according to the value chain of

craft village products Since then, the thesis has clearly assessed the needs,

favorable premise conditions and obstacles in the process of sustainable

development of craft villages in the direction of industry clusters

On the basis of SWOT analysis, the thesis has clarified the scientific argument to orient the formation and development of the cluster of

associations of Nuoc Stone Carving Village The core orientation is that

enterprises, production and business establishments in craft villages are

able to widely develop linkages in the value chain of craft village products,

and at the same time bring into play the advantages of industrial clusters of

Nuoc Stone Carving Village

The thesis proposes 6 main solutions for sustainable development of craft villages in the direction of industry clusters, which are: Solutions on

promoting the accumulation and centralization of enterprises producing and

trading handicraft stone products in craft villages; Solutions on promoting

the development of linkages between craft village enterprises and

stakeholders (vertical linkage, horizontal linkage) along the value chain of

craft village products; Solutions on promoting competitive advantage for

craft villages through solutions such as human resource development

solutions, materials solutions, capital solutions, infrastructure upgrades, and

technology solutions; Innovative solutions; Solutions on mechanisms and

policies, the management of the state; Group of solutions on environmental

protection of craft villages, on trade and market, Land policy, promoting

the role of craft village associations

7 Structure of dissertation

Chapter 1: Theoretical and practical issues of developing traditional

craft villages in the direction of industry linking cluster

Chapter 2: Research design Chapter 3: Development Status of Nuoc Traditional Stone Carving

Village

Chapter 4: Orientation and Solutions for developing Nuoc Traditional

Stone Carving Village in the direction of Industry Linking Cluster

CHAPTER 1: THEORETICAL AND PRACTICAL ISSUES OF DEVELOPING TRADITIONAL CRAFT VILLAGES IN THE DIRECTION OF INDUSTRY LINKING CLUSTER 1.1 Theoretical basis of craft villages

1.1.1 The concept of craft villages

According to Dang Kim Chi (2005), Phan Huy Le (1995), Pham Con Son (2004), Trinh Kim Lien (2013), Duong Ba Phuong (2001), all have

common views on the village is: “Craft village is a place where focus

handicrafts that formed in rural areas within a clear geographical area

and separated from agriculture, there is a class of craftsmen specializing in

craftsmanship, with a certain technological process and live mainly by that

profession and produce handicrafts, These items have handicraft

properties, products are served for domestic and exportable, have linkages

in production in the craft village”

1.1.2 The concept of a traditional craft village

According to Dinh Xuan Nghiem et al (2010), Tran Quoc Vuong

(2012), Tran Minh Yen (2004) “Traditional craft villages are traditional

villages that exist and develop for a long time, formed in the countryside

within a clear geographical area, the craftsmen are highly specialized,

bring the main source of income, live mainly there is a link between

production and business, economic, social and cultural relationship”

1.1.3 Characteristics of traditional craft village

According to Le Thi Minh Ly (2003), Tran Minh Yen (2004), Tran Doan Kim (2007), Trinh Kim Lien (2013), Tran Quoc Vuong (2012), Vu

Quoc Tuan (2011), Vu Ngoc Hoang (2016), Duong Ba Phuong (2001),

Dang Kim Chi (2005), Bach Thi Lan Anh (2010), the craft village has the

following characteristics: Long-standing, local culture in the geographical

area; There is connection but loose; Competitive capacity is still poor;

Current innovation has not been effective

1.1.4 Classification of craft villages

- Classification by industry group: the village of brick and tile production;

agriculture, forestry and fishery; fine art carving stone, wood, ceramics;

mechanical welding, casting copper, cast iron, aluminum; textiles, hat

making, paper production, basket weaving; Creatures Pet

- Classification by development history: traditional craft villages; new craft

values of craft villages; economic restructuring towards modernity

1.2 Theoretical basis for industry linking cluster

1.2.1 Concept of Industry linking cluster

There are many concepts about industry linking cluster that are given

by many authors such as Marshall (1890), Weber (1909), Becattini G

(1992), Sforzi,F.(1992), Kuchiki (2007), (Porter, 1998, 2003) All have

common concept is: “Industry linking cluster is geographic concentrations

of enterprises in the same industry or have similarities in the field of

production and business to take advantage of opportunities through

geographical linkage The enterprises in the cluster will have a linkage

with each other for sharing requirements and have relationships with

related suppliers and customers Enterprises in the cluster improve their

edge-to-edge capacity through collaborating with each other in

production; sharing experiences and information, sharing the same

technical infrastructure, human resources in the same industry, using

similar technology , will be an advantage for businesses in industry

clusters In addition, because enterprises are gathered in the cluster, it is a

catalyst for innovation and creativity in technology change, production,

product design change and commercial issues”

1.2.2 Characteristics of industry linking clusters

Inheriting and synthesizing the researches of Porter (1985, 1990, 2007), Albumozhi et al (2009), Andersson and Hansson (2004), Benner

(2012), Nguyen Binh Giang and Pham Thi Thanh Hong (2015), the

industry linking cluster has the following characteristics: the accumulation

of businesses; Linkage along the product value chain; Creation of

competitive advantage; Creative innovation; Policy mechanism and state

management

1.2.3 The formation and development of industry linking cluster

According to research by Sonobe et al (2004), Porter and Watts (2011), Benner (2009) and Sonobe & Otsuka (2006): The formation and

development of industry linking cluster, whereby there are initially a few

businesses start-up or develop a technology of a certain industry, followed

by other businesses to imitate and create rapid spread, when this industry

develops and makes profits, the more businesses come to the area this area

and form an industry linking cluster

1.2.4 The benefits of industry linking cluster

Synthesize the researches of Porter (1990, 2000b, 2008), Krugman (1991), Granovetter (1985), Uzzi (1997), Rosenfeld (2002b), whereby:

Industry linking clusters create strength for businesses, increase production

efficiency due to reduction of costs, cohesion in social relations, promotion

of innovation - creativity, due to dense concentration of businesses, high

competitive pressure thereby promoting innovation, improving skills and

labor productivity

1.3 Identification of traditional craft villages and industry linking

cluster

1.3.1 Comparison of characteristics of traditional craft villages and

industry linking cluster

- Same: Enterprises, production and business establishments gather in geographical areas and have links, stimulating innovation and creativity

- Different: Craft villages, although linked, are very loose; low competitiveness, little infrastructure development investment, difficult

access to capital, the supporting industries are less developed Industry

linking cluster is closely linked; high competitiveness, taking advantage of

shared infrastructure, human resources, favorable access to capital,

development supporting industries, many clear mechanisms and policies

1.3.2 Conclusion from industry linking cluster

The traditional craft village is a primitive industry linking cluster, which has not been fully developed, and there are still many problems to

develop to complete Therefore, for the craft village to develop sustainably

in accordance with the current integration period, it is imperative to

develop the craft village in the direction of industry linking cluster

1.4 Sustainable development of traditional craft villages according to

industry linking cluster

1.4.1 Development concept

Development is an evolutionary process of every society, every ethnic community in which the movement moves in the upward direction from low

to high, from simple to complex, from less perfect to more perfect The new

born replaces the old one, the modern replaces the outdated

1.4.2 Sustainable Development

The development meets current requirements, but does not hinder for meeting the needs of future generations

1.4.3 Sustainable development of craft villages in the direction of

industry linking cluster

Sustainable development of the craft village in the direction of the industry linking cluster is to ensure the continuous, stable and long-term

high economic growth of the industry linking cluster, enterprises in the

industry linking cluster rationally and efficiently use resources, contribute

to the implementation of social responsibility and protect the environment

inside and outside the cluster

1.5 Overview about research situation relating to the topic

1.5.1 Researches in the world

There are many researches in the world related to craft village development such as Das and Das (2011), industry linking cluster theory is

used to study handicraft village industry cluster in Barpeta, India;

Researches of Roostika, Wahyuningsih, and Haryono (2015), assessing the

impact of competitive factors on the handicraft industry in Bantul,

Yogyakarta Indonesia; and many studies by Sakata (2010), the authors

Nguyen, Nguyen, and Vo (2013) evaluate OVOP (One Village One

Product); Researches by Ardhala, Santoso, and Sulistyarso (2016) on craft

villages in the Indonesian city of Mojokerto; Research by Taylor and

Adelman (2006) has outlined the factors affecting the development of craft

villages

1.5.2 Researches in Viet Nam related to craft village linking cluster

According to Nguyen Thi Nguyet (2015), assessing the possibility of

forming an industry linking cluster for industrial clusters in Vietnam;

Nguyen Dinh Tai (2017), Porter's theory of industry linking cluster (1990)

studies the conditions for forming an industry linking cluster; Vo et al

(2012) propose to develop industry linking cluster network in Vietnam;

Studies related to craft villages by Le Xuan Tam (2014), Ho Ky Minh

(2011), Bach Thi Lan Anh (2010), Nguyen Dinh Hoa (2010), Dang Kim

Chi (2005), Dinh Xuan Nghiem et al the (2010)

1.5.3 Conclusions from researches relating to the topic

- The issues that have been studied and discussed can be inherited: the theoretical basis of craft village development with different traditional and

modern approaches

- Issues that need to be further researched: craft village development in the 4.0 revolution, the opportunities, challenges, and threats to the

sustainable development of traditional craft villages have not been

specifically explained The region-linked approach is rarely mentioned

1.6 Experience in craft village development

1.6.1 Experience in developing craft villages from a number of countries

1.6.1.1 Experience in developing craft villages in Oita - Japan

The movement "One Village One Product" with the idea of exploiting local human resources to restore traditional crafts was launched from Oita

in 1979, producing products that are suitable for the market, authentic and

authentic to carry out projects suitable to their capacity and focus on

training crafting and production management skills for craft villagers

1.6.1.2 Experience in developing Baan Baat Bowl Craft Village – Thailand

Inheriting lessons learned from the successful "One Village One Product" movement of Japan, the support of Government in marketing,

sales promotion, training and technology transfer to people, organization of

fairs both nationally and internationally, support for product

standardization, packaging completion, marketing, organizing overseas

distribution channels and combining craft villages with tours

1.6.1.3 Experience in developing craft villages according to the model of

Township enterprise – China

With the policy of encouraging export, tax exemption and reduction for Township enterprise, restricting the import of traditional handicraft

products in which China has strengths, transferring advanced and modern

technology to rural areas, craft village

1.6.2 Experience in developing craft villages in some localities in the country

1.6.2.1 Experience in developing Bat Trang ceramics village

Focusing on e-commerce, product design, forming a chain of ceramic stores called Bat Trang Family Mart to bring genuine ceramic products to

consumers, applying franchise model

1.6.2.2 Experience in developing Duyen Thai lacquer village

Hanoi has many policies to support the development of craft villages such as creating favorable conditions for business and trade, supporting the

inclusion of craft village products in domestic and international fairs;

Planning on 6 tourist villages to promote products to domestic and foreign

customers

1.6.2.3 Experience of La Phu knitting craft village industrial cluster

Promoting linkages in production between enterprises in craft villages, establish business associations to help connect linkages in craft villages,

focus on large enterprises with leading credit to help the craft villages to

develop

1.6.3 Some experiences and lessons learned to apply to develop Non

Nuoc traditional Stone Carving village

The success of some craft villages in the world as well as some craft villages in Vietnam is the basis for the development of Non Nuoc

traditional Stone Carving village such as focusing on human resource

development, having policies on capital, tax, credit, etc technological

innovation, e-commerce, management capacity and support policies of the

state

1.7 Conditions for sustainable development of traditional craft villages

in the direction of industry linking cluster and evaluation criteria

1.7.1 The accumulation of similar businesses in the same geographical

area

According to Weber (1909), he refers to clusters as follows:

"Industries tend to cluster in a certain geographical area to facilitate the

most cost reduction in order to maximize profits; it is to reduce

transportation costs, labor costs, and the economics of clusters”

1.7.2 The connection of craft villages with the product value chain

According to research by Hirschman (1958), Tambunan (2005), Gibbs and Bernet (1997), Marshall (1926), Smith (1776), Porter (1990), Hass and

Richard Capella (2006), Mushi (2003) [76] ], , then the linkage includes

backward linkages, upstream linkages and forward linkages, downstream

linkages to study sectoral and interdisciplinary relationships

1.7.5 State policies and mechanisms

According to Nguyen Binh Giang and Pham Thi Thanh Hong (2015), industry linking cluster policies are state and local government initiatives to

promote industry convergence

1.8 Summary of Chapter 1

From the basic theoretical basis of industry linking cluster, craft village development, the author has analyzed and built the conditions for

developing traditional craft villages in the direction of industry linking

cluster, contributing to effective and sustainable development the

traditional craft villages in the process of international integration

CHAPTER 2: RESEARCH DESIGN 2.1 Approach method

In the product value chain, each stage is a link and there are many links

in the same chain Analyze and evaluate the level of linkage in production

between the stages in the chain from input to production to the final stage

to the consumer

2.1.3 Approaching in the field of economy, society and environment

Approach on all three fields of economy, society and environment to comprehensively assess the craft village and propose appropriate solutions

to develop the craft village

2.2 Research process