THE PROBLEM AND ITS SETTING

THE PROBLEM AND ITS SETTING

Chapter 1 THE PROBLEM AND ITS SETTING

Vietnam’s prime minister's decision (Decision No 100/2008/QD-TTg July

15, 2008) on approving the overall planning of economic development which includesTuyen Quang The plan indicates that the said province will reach the following goals

by 2020: rapid economic growth and sustainable development, efficient utilization ofthe potential resources of the province, narrow gradually the gap between fiscaldevelopmental level of the province and to the average of the country, immediategetaway from the less developed provinces ensuring organic relationship witheconomic development all through out the country, and fast integration withnationwide and regional implementation

Economic development is inextricably linked with cultural developmentbecause of a balance of both will yield a strong fiscal standing of the nation, thus,improving the quality of human resources Balanced development between regionsfocusing on developing key economic region is a driving force behind other

developing regions and reduces the gap in living standards between the strata To wellimplement the national policies and poverty reduction policies for disadvantagedareas, there should be a cooperation between the government and the citizens in order

to gradually improve the quality of life (Decision no 100/2008/QĐ-TTg July 15,

2008 of Prime Minister Approving the overall planning of economic development Tuyen Quang province in to 2020 )

-In achieving these objectives, there should be measures to improve theenvironment in order to attract investors through the country’s tourism sector in whichcapital has important implications in both theory and practice Other factors affectingthe growth of Vietnam’s economy are labor, and capital intensive technology are alsoimportant Practices that are involved in improving the role of the environment attractinvestment which stengthens the process of economic and social development inTuyen Quang province

Background of study

In the process of industrialization modernization capital investment hasalways been considered a problem among developing countries How to mobilizesources of capital (both sources inside and outside sources) to meet requirements ofthe modernization, is always a challenge to the country on the path out of poverty.Therefore, competition between countries as well as local authorities in a country toattract foreign investment capital is becoming more heightened

International investment is currently a hot issue and an interesting topic in theworld International investment contributes to the economic growth and brings

positive effects for the countries receiving capital investment and export amongcountries.

The role of international investors is becoming significant to the economicdevelopment of countries in transition from planning economy to centralizedeconomy like Vietnam To achieve a certain growth both in economic and socialdemands of these countries, thorough utilization of the resources can be done for theinvestment to be reasonable and effective

Tuyen Quang is entering a new period of development, promotingindustrialization and modernization together with strong social democraticcivilization In this context the need for capital investment and development is veryimportant and urgent However, in recent years investing in Tuyen Quang are issuesthat need attention, especially direct investment from abroad As planned, socio-economic development in Tuyen Quang province aims to speed economic growth

(GDP) to 14.5% (Decision no 100/2008/QĐ-TTg July 15, 2008 of Prime Minister Approving the overall planning of economic development - Tuyen Quang province in

to 2020 ) over the period 2010-2015, of which capital requirements for investment

and development is 45,000 billion During this period, budget can only meet about

9000 billion (approximately 20-25%) (Decision no 100/2008/QĐ-TTg July 15, 2008

of Prime Minister Approving the overall planning of economic development - Tuyen Quang province in to 2020) as the rest are investment firms, credit and foreign

investment Thus the short term and the long term solution in order to attract moreforeign investment capital, especially direct investment from abroad is to create aforce that pushes for the economic development Departing from that practice, theresearcher intends to conduct a study entitled "Investment Environment in TuyenQuang Province: A Prospect for Development "

Statement of the Problem.

This study intends to evaluate the investment status and identify investmentprospects for the development of Tuyen Quang Province Specifically, it sought toanswer the following questions:

1 What are the investors’ profiles in Tuyen Quang Province as

2 What is the present investment environment in Tuyen Quang Province

in terms of the following factors:

2.1 Political;

2.2 Legal - administration;

2.3 Geographic location and infrastructure;

2.4 Economic and financial;

2.5 Labor

3 What are the problems encountered by the investors in terms of

3.1 Political, 3.2 Legal - administration;

3.3 Geographic location and infrastructure;

3.4 Economic and financial;

3.5 Labor.

4 What possible solutions could be proposed to overcome the problemsidentified and to attract more investors in further developing Tuyen Quangprovince?

Scope and Delimitation

The topics related to this study are Economics, Finance, Law and InternationalRelations However, due to the scope time and the research activities will manly focus

on direct investment in Tuyen Quang province for 2006-2010 Subjects focusedresearch is investor have licensed investment certificates, and the investmentenvironment time since the government promulgated the general investment laweffect in 2006

Significance of Study

This study will be beneficial to the following:

For the Provincial Level:

Research shows that the strengths and weaknesses of the investment environment sothat a solution to improve investment environment to attract resources from outsidethe province such as investment capital, science technology, scientific managementalso exploit and promote the province's comparative advantage in minerals, forestresources, tourism resources and abundant labor resources of the province

Research on the investment environment to provide information on enterprisesoperating business in the province, review scientific evidence for the leadership ofthe provincial to building strategy of economic development - social, open reform,poverty reduction, implementation of modernization and modern industrial.

For communities:

Research to detect obstacles in the process of business activities from which tosupport and removal of difficulties and improve the competitiveness of the businesscommunity

Improve the investment environment to attract domestic investors and foreigninvestor in the province also means creating more jobs, raise incomes, improve livingstandards for people, besides enjoying The main advantage of the welfare projectssuch as electricity, roads, schools, health

For future researchers:

This study will help future researchers on research methods, analysis andevaluation of investment environment of the province from which researchers’ futurestudies will determine the issues for further studies

Definition of Terms:

Business Size is the maximum capitalization of a project investment.

Capitalization is the sum of a corporation's long-term debt, stock and retained

earnings

Direct investment is a form of investment by which investors are participating

directly in investment management activities

Domestic investment is a form of investment that the investor-owner as well as

investment capital - the capital of the country to leave the operating organization andbusiness activities in order to target for profitability and take responsibility for thecapital, as well as the results of its business operations

Investment environment consists of legal, economic, political, cultural, and social

factors which affects directly or indirectly to the operation and foreign investment of acountry

Foreign Direct Investment is thought to be more useful to a country than

investments in the equity of its companies because equity investments are potentially

"hot money" which can leave at the first sign of trouble, whereas FDI is durable and

generally useful whether things go well or bad ( http://www.about.com/ )

Investment refers to capital in tangible assets or intangible assets

Investment law in 2005, defines: Investor is an individual who commits money to

investment products with the expectation of a financial return Generally, the primaryconcern of an investor is to minimize risk while maximizing return, as opposed to aspeculator, who is willing to accept a higher level of risk in the hopes of collecting

higher-than-average profits.(http://www.investorwords.com/2630/investor.html)

Political environment includes all laws, government agencies, and lobbying groups

that influence or restrict individuals or organizations in the society

Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature

Investment is defined as any use of resources intended to increase futureproduction output or income Investment is "to spend, to sacrifice" in existingresources to achieve results beneficial in the future In other words, investment is thesacrifice of current benefits for a great benefit of income in the future

Resources may be in the form of money, natural resources, labor and intellectualcapital The results can be achieved through financial assets, physical assets,intellectual property and human resources qualification and recognition to work withhigher productivity in any business entitiy

There are many criteria for the classification of an investment; we can divide

investors into three main categories: Financial investment which is a type of

investment that people lends money or purchases price for certificates with

predetermined interest, Trade investment which is a type of investment that people

have money to buy goods and sell them for a higher price to earn a profit and

Investment in Development in which people carry out activities to create new assets

for the economy, increase the potential production of a business and social activitiesTherefore it is a condition to create jobs and improve the lives of all people in thesociety

Foreign direct investment resources (FDI)

Foreign direct investment reflects the objective of obtaining a lasting interest by aresident entity in one economy (‘‘direct investor’’) in a resident entity of an economyother than that of the investor (‘‘direct investment enterprise’’) The lasting interestimplies the existence of a long-term relationship between the direct investor and theenterprise and a significant degree of influence on the management of the enterprise.Direct investment involves both the initial transaction between the two entities and allsubsequent capital transactions between them and among affiliated enterprises, both

incorporated and unincorporated.( www.oecd.org/dataoecd/10/16/2090148.pdf)

Balance of Payments Manual: Fifth Edition (BPM5) (1993) and the DetailedBenchmark Definition of Foreign Direct Investment: Third Edition (BD3) (1996 referFDI to an investment made to acquire lasting interest in enterprises operating outside

of the economy of the investor Further, in cases of FDI, the investor’s purpose is togain an effective voice in the management of the enterprise The foreign entity orgroup of associated entities that makes the investment is termed the "direct investor".The unincorporated or incorporated enterprise-a branch or subsidiary, respectively, inwhich direct investment is made-is referred to as a "direct investment enterprise".Some degree of equity ownership is almost always considered to be associated with

an effective voice in the management of an enterprise It also suggests that a threshold

of 10 per cent of equity ownership is required to qualify an investor as a foreign directinvestor

Once a direct investment enterprise has been identified, it is necessary to definewhich capital flows between the enterprise and entities in other economies should beclassified as FDI Since the main feature of FDI is taken to be the lasting interest of adirect investor in an enterprise, only capital that is provided by the direct investor

either directly or through other enterprises related to the investor should be classified

as FDI The forms of investment by the direct investor which are classified as FDI areequity capital, the reinvestment of earnings and the provision of long-term and short-term intra-company loans (between parent and affiliate enterprises) Furthermore, adirect investment enterprise is an incorporated or unincorporated enterprise in which asingle foreign investor either owns 10 per cent or more of the ordinary shares orvoting power of an enterprise (unless it can be proven that the 10 per cent ownershipdoes not allow the investor an effective voice in the management) or owns less than

10 per cent of the ordinary shares or voting power of an enterprise, yet still maintains

an effective voice in management An effective voice in management only impliesthat direct investors are able to influence the management of an enterprise and doesnot imply that they have absolute control The most important characteristic of FDI,which distinguishes it from foreign portfolio investment, is that it is undertaken withthe intention of exercising control over an enterprise

Local literature Reviews:

The concept of environment to attract investment

The concept of environment to attract investment capital is a term mentioned inboth economics and business administration researches in many countries InVietnam, the transition to market economy requires implementation of policies ofinnovation in an open economy integrated with the world, thus, attracting foreigninvestment The environmental issues attract new investment capital and furtherreached to more researches to address the environmental

Environment to attract investment includes many factors which directly orindirectly affects the efficiency of investment projects The factors included are reality

of infrastructure; related to financial benefits such as tax regimes, labor costs, physicalassets, regulations on hiring, assignment, mortgage, prices, various administrativeprocedures ensuring security and social order, political stability If the abovefavorable factors will encourage the investment and attract more investment capital,the country will gear towards development and to solidify its stance, the governmentshould also participate in making policies to increase the confidence of investors

Environment to attract investment capital that has the characteristics and

nature of the following: (1) objectivity: No single investor or a business exists in

isolation, it should exists objectively, it can facilitate or mediate difficulties forinvestors Environment to attract investment capital creates a binding surface forinvestment activities, on the other hand, creating favorable opportunities for

investors (2) Integrated: Integrated in the sense that it includes many elements that

have relationships with each other The number and the specific components of theenvironment to attract investment depend on the level of development and socio-

economic, managerial and right main components of the environment (3) Diversity:

Environment to attract investment capital is a mixture of environmental components.Therefore, research and analysis is fundamental for the getting the overall correlation

between environmental components and the elements (4) Dynamic: Environment to

attract investment capital and other elements mobilize the growing trend as it alwaysimmediately transformed by the internal operations of investment which is also anactive process in a constantly changing environment Factors and conditions of theenvironment to attract investment capital affect investment activities of investment or

business activity on a regular basis (5) Systematic: The stability of the environment

to attract investment depends on the complexity and variability of the interactiveenvironment In order for the maneuvering of investments, systematic approachshould be dealt every now and then to assess its effectivity and to gauge its efficiency

The process of selecting investment location:

In most cases, choose the location of TNC investments are carried out by threesteps: (1) Company selected a potential area to invest in it, (2) Some of the potentialarea was selected; (3) The location of potential in that country is determined Themain factors to evaluate the investment location: (1) Market: growth and size of themarket, income per capita, import barriers, consumer preferences specific of thatcountry (2) Cost: cost, quality, availability and productivity of workers trained / can

be trained; The cost inputs, components and raw materials; The costs oftransportation, communications and utilities; tax, financial costs, access andavailability of foreign currency; preferences and disadvantages to investment trade (3)Natural resources: The availability of natural resources (4) Infrastructure: physicalinfrastructure (roads, seaports, airports, telecommunications) infrastructuretechnology, research and development school) infrastructure industry (researchinstitutions, universities and outsourcing business, the supply industry, industrialclusters); educational infrastructure (schools, colleges, universities) (5) PolicyFramework: The stable economic, political and social; development policies ofprivate sector and privatization of state enterprises; rights, warranties and incentivestructure and operation of the market; the international agreements on trade and thelegal system in general

Main proclivities of FDI.

The list of FDI investors is not only limited to search market and investorslooking for natural resources; instead, investors looking for efficient and strategicsearch assets today is also on the list and given due importance In addition, mostinvestors around the world are in the service sector, although this may not be true forFDI situation in all countries

Venture is still a common form using a variety of other arrangements includingstrategic alliances, networks, agreements other non-capital Activities merger andacquisition is also an important form of FDI

The relationship of history and geography impacts the current crisis In addition,the FDI flow to foreign countries often shows the comparative advantage andcompetitive strategies of the country to invest Therefore, linkages of geography,history and other link made the basis for selection of investors

The economic benefits from FDI.

The following are the benefits brought by FDI: (1) Employment: While thenumber of jobs created are suitable for different scales of investment and productionprocess itself and along with new jobs and income is additional purchasing power forlocal people, (2) Benefits of revenues: FDI has the potential to expand the tax base oflocal revenues and contribution to government revenues Even if foreign investors areexempt from all taxes for a short period through investment incentives, thegovernment can get increased revenues from personal income tax return because FDI

creates new jobs In addition, export-oriented investments generate foreign currencyrevenues (3) Impact favorable to investment in the country: The FDI flow tends toincrease domestic investment because the company is for access of distributionchannels opened by the TNC, (4) Technology Transfer: FDI can improve access tothe country's technology through licensing and joint ventures Those working forTNC can handle the secrets they have and set up another company or participate incompanies active in the country Although kind to another, transfer of technologytends to lead to growth in increasing productivity, (5) Improving the skills of workers:The TNC engages in activities that improve the skills of its workers These skills areoften transferred to other fields and other activities when employees find new jobs orsetting up his own business Workers also often placed on organizational skills andnew management, which may stimulate increased productivity, mental work andthorough learning, (6) Improved export: Many FDI projects are export-orientedprojects, and generally take an average portion of exports of the country receivinginvestment Through the access to network of marketing and distribution overseas,the foreign companies are generally easier to penetrate the export market Manydeveloping countries know how to use FDI as a means to increase their exportrevenues and improve foreign currency In addition, the presence of exportingcompanies invested abroad is an influential factor in many countries to encouragedomestic companies in order to penetrate the export market, (7) Improvedinternational competitiveness of companies in the country: Opportunities in themarketing of products or materials for companies invested abroad encourageddomestic companies to improve product quality and reliable delivery Foreigncompanies usually offer new products for the domestic economy, and domesticcompanies are often encouraged to copy these products.

This stimulates investment achieving higher level of investment, productivity andinnovation creation As a result, domestic companies achieve greater economicefficiency and produce higher quality products, (8) Strengthening competitiveness:FDI can improve the overall economic growth by enhancing competition in areasformerly been dominated by only one or two companies in the country.

Forms of foreign direct investment in Vietnam.

Currently, Vietnam has three main forms of investment following: (1) Enterprises with 100% foreign capital in which a business is owned and managed

by foreign investors, (2) Joint venture which is an enterprise established by foreign

investors contributing capital with organizations and individuals on the basis of venture contract The parties involved with operating companies, distribution ofprofits as well as risk reduction of capital between the respective parties The type ofbusiness is a limited liability depending on the scale of investment and investment

joint-fields that the time limit for each venture investment will be different, (3) Business cooperation contract, in which there is an agreement between two parties and there

are two or more defined responsibilities and the division of business results for eachparty to conduct investment business without a legislative personnel

Investment Environment

The investment environment is defined as a set of specific factors that are shapingthe local to the opportunities and motivation for enterprises to invest efficiently andcreate jobs and expand production Thus, the investment environment is considered

Synchronization or set of factors may increase the ability of interest (or risk) toinvestors abroad The problem arises as we must learn all the components of theinvestment environment to improve it and attract more investors to come and dobusiness.

Investment Environment Equality and Competition

Investment is one of the main activities of the process of economic integration.The economic integration in the international investment activities are conductedthrough two basic principles: (1) Principle of national treatment in investmentactivities and NT Principles (National Treatment): country receiving FDI commitment

to win the favorable investment conditions (incentives) In essence, the guidelines aredirected to a common purpose which is to create equal business environment,investment environment, and equality between investors.(2) Most Favored Nationprinciple in investment activities - Guidelines MFN (Most Favored Nations): acountry will win the favorable conditions (incentive) to international investors, whenthey conducted the investment on their national territory

Thus, we can say that equality in investment activities are considered "habitat" ofthe business A good investment climate, ventilation will create favorable conditionsfor the operation of enterprises in general; reverse investment environment was

"polluted", is the more problem, limited business development

Competitive investment environment.

Competitiveness of the investment environment is the comparison of differentinvestment environment in the same criteria Investment environment changes notonly between countries but even within one country This occurs because of thedifferences in the management of the country in general as well as policy andadministrative management of each locality in particular.

The components of investment environment

Political environment.

The political stability is a key factor to attract investors Host country governmentshould have a reasonable policy to political stability and keep social stability in a longtime The foreign policy of openness will attract the attention and support of countries

in the region, enticing them to join into the economic development of their countries.Political stability is a prerequisite to ensure the government's commitment toinvestors’ property investment, the policy priority investment and investment-orientedstructure in from the country receiving investment

The political stability is essential to maintain the balance of the economy Thedirect impact factors and inclusiveness increase or decrease risky investmentactivities The rule of thumb for investors in general and foreign investors inparticular is the safety of capital and interest because operating in unfamiliarenvironments, large investment and long-time capital withdrawal should worryforeign investors for their property being confiscated by the host country Moreover,the unstable political situation often leads to inconsistency Incumbent governmentcan not commit to the property of foreigners in a foreign direct investment Change of

government also brings threats to foreign investors for the safety of their assets This

is one reason why current investment is often less in African countries and some otherdeveloping countries in South America In contrast, a stable political situation ensuresconsistent development of the host country; thus committed to ensuring the safety fortheir legal property is made This is clearly reflected in many developing countriesand new industrial countries in Asia

The political stability of a country also decides political environment in thatcountry However, in the same country, regional environs tend to vary; and this willdirectly affect economic activity and foreign investment The government’s capacity

is also one of the factors to be considered because it can affect to such factors asgeographical location, natural resources, weather but the government has a stronginfluence to ensure property rights, the regulatory and taxed (both inland and at thegate), satisfaction level of infrastructure, the operation of financial markets, thephenomenon of corruption and many other factors This depends largely on theoperating capacity and moral quality of the team leaders of the country

Legal administrative environment

Legal system is one very important factor which plays a crucial role in creatingthe look of the investment environment Legal system of a country can be expressedthrough a number of features below:

- Build charter

- Calculate fullness and synchronize

- Calculate standard and integration

- Righteousness, is professed and capability is realized

Geographic location and infrastructure environment

Geographic location affects the actions of investors Convenience andaccessibility of a location is a big plus for an investor because both indicators presentways on how to mitigate some risks involved in the process Also, infrastructurewhich includes system roads, and bridges, airports, seaports, telecommunicationservices and hotel interests investors and guarantees invitation calls for very activeinvestors abroad

Geographical location and infrastructure of each country is different from oneanother because of its natural conditions and resources yet, government’sparticipation in addressing such pressing issues will settle the differences

Economic and Financial Environment.

Each application of a common national economic policy depends on theindividual development level and the objectives in which a country will pursue Acountry creating favorable conditions to attract foreign capital sources must firstimplement open economic policies that ensure the economic cohesion of the country

to the world market This enables the country to participate in international division oflabor; get goals for all its economic activities not only serve the domestic demand butalso the needs of international market In addition, the level of economic development

of countries receiving investment include the development of macroeconomicmanagement, infrastructure, provide quality services for business operations of the

foreign investment and competition of the market as well as host country factors have

a stronger impact for foreign investors

On that basis, the economic environment - the resources of each locality will be

The ability to create a healthy financial environment and banking system is arequirement set out in the process to improve the investment environment since noinvestment projects do not relate to the settlement capital, credit and regulatorysupervision over monetary system Financial background of a country is assessedthrough indicators such as the international balance of payments, international tradebalance, inflation, exchange rates, and freely convertible currencies Financialenvironment of a locality is reflected through the banking system, finance companies,stock market, and money market securities These are the indicators which reflect thestability of the macro economy

Labor environment

The labor cost in countries where investors expected to invest influences greatly

on the efficiency of investment The reason is that the labor force is plentiful lowlabor costs will attract the attention of However, the current labor cost factor in lessdeveloped countries is no longer attractive for capitalist Since the revolution ofmodern science and technology has allowed to hasten the automation process andimprove labor productivity In such conditions, any of the staff workers who aretrained to the level of scientific is considered an advantage; as through employers,investors not only want to record its benefits, but also to gain additional profit

In addition, a stable working environment also shows the calculated hardworkand spiritual discipline of the workers; and more importantly the strike situation andremoval of the workers, the union organizations are prevented This is a quitesensitive issue that an investor does not want to meddle with the host country.

The meaning of the research investment environment

To study the investment environment in host countries in improving economicenvironment, speeding up the process of integration between regional and universaleconomy, the selection strategy should be undermined in order to attract investors.Many countries implement economic strategies that create and open an economicenvironment These factors stimulate and attract investment from a country; that itmust be established and perfected and should be adjusted continuously by thereceiving country the investment and goodwill of both parties resulting an economicengine

IN TUYEN QUANG PROVINCE: A PROSPECT FOR DEVELOPMENT EVALUATION

Province in terms of the following factors: Political; legal - administration;geographic location and infrastructure; Economic and financial; Labor The secondframe, which is the process, indicates the data gathering, evaluation throughquestionnaire checklist, analysis and interpretation of data The third frame, which isthe output, indicates the determined investment prospect yielding to a developedTuyen Quang province.

Chapter 3 RESEARCH METHODOLOGY

This chapter discusses the research design, the firms‘ sample size andsampling technique, the description of respondents, the research instrument, the datagathering procedures and statistical treatment of data used by the researcher

Research Design

In this study the researcher employed the descriptive method of research; it isthe appropriate method in determining the perception of firm about brand image of

Tuyen Quang province Descriptive statistics were used to have an accurate portrayal

of strengthening the brand image

This method was employed in this study because it is a fact – finding schemedesigned to enable a researcher to adequately and accurately interpret collected data,

as well as the result or findings

Population, Sample size and Sampling Technique

In this study, the population was composed of 33 ongoing investment projectsmanaged by 33 directors The population of all these 33 directors served as therespondents That is investor have licensed investment certificates Time since thegovernment promulgated the general investment law effect in 2006

Description of Respondents

Respondents of the study were 33 directors handling investment projects inTuyen Quang Province Their responses described the present investmentenvironment in the province as well as the prevailing problems

Part I: Investors information - Elicit the respondent’s profile that includes the name,

age, gender, position in the company, type of business firms, type of businessownership, nature of business, business size, investor's location and capitalization

Part II: Investment environment information - Contain the questions accessed and

evaluated by the respondents on investment environment in Tuyen Quang province Inrealization of this research, the proponent constructed a survey questionnaireobtaining the necessary data on the variables indicated in this study In addition, theresearcher retrieved data from documentations which were provided by the investors

Unstructured interview was also conducted by the researcher to the respondents while

in the process of administering the questionnaire

Data Gathering Procedure

The researcher used a combination of questionnaire and interviews inacquiring information from the respondents It sought other needed information frombooks, published and unpublished local and foreign studies and from the internet

In the actual conduct of the research, the researcher did the followingprocedures:

Primarily, questionnaire was designed as the main data gathering instrument

of this research The researcher sought the advice and guidance from experts in theprocess of designing and developing the questionnaire in ensuring the validity andreliability of the data gathering instrument The researcher also administeredunstructured interviews during the actual distribution and collection of questionnaire

where: f = frequency

N = Number of cases

II Weighted Arithmetic Mean

i i

f x



 = sum of all the products of f and x, where f is the

frequency of each option and x is the weight of each option

1

k i i

f



 = sum of all the subjects

The researcher adopted the Likert rating scale below and its descriptiveinterpretation for the questionnaire that was used in the survey:

Rating Scale Descriptive Interpretation

Chapter 4 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the analysis and interpretation of the data To present the

sequence of findings of the study, the discussions were arranged according to the

stated problems:

Part I INVESTOR PROFILE

Figure2 Type of Business Ownership of the respondents

Figure 2 shows the distribution of respondents in terms of the type of business

ownership in Vietnam Company shares firm occupied the top spot with 14

respondents or 42.42% among the respondents Joint venture firm landed at second

Type of Business Ownership

33.33%

24.24%

42.42%

Company SharesJoint VentureLimited Corporation

with 11 respondents or 33.33% as eight respondents came from limited corporationswith 24.24% of the total respondents.

Figure 3 Nature of Business

Figure 3 shows the distribution of respondents according to their nature of business.Projects in the industrial sector hit rock solid with 21 respondents or 63.64%.Respondents from the tourism sector placed second with a frequency count of eight or24.24% while respondents working in the agriculture sector relayed a frequency count

of four or 12.12% from the total respondents It can be construed that the industrysector is the chief sector in Tuyen Quang province

Agricultture

Figure 4 Business Size

Figure 4 shows the distribution of respondents in terms of business size 16respondents have assets ranging from 15 to 200 billion VND accounted for 54.55% ofthe respondents Coming in second are respondents having assets of more than 200billion VND with a frequency count of 13 or 39.39 while only two respondentsrepresent less than 15 billion VND projects or 6.06% from the total respondents.Through the data, it is construed that the majority of projects of the enterprises in theprovince has 15-200 billion capital

Figure 5 Investor's Location

Figure 5 presents the distribution of respondents in terms of investor’s locationwhether it is domestic or foreign In the province of Tuyen Quang, majority of therespondents have domestic projects comprising of 30 investors or an overwhelming90.91%, while only three respondents have the project for foreign investment or9.09% It can be opined that domestic investments dominate the province attraction offoreign investment (FDI) in the province is very minimal

Investor's Location

90.91%;

9.09%

domestic foireign

Part 2 PERCEPTION THE PRESENT INVESTMENT ENVIRONMENT

Interpretation of Ratings and Weighted Mean:

Most SignificantVery SignificantFairly SignificantLess SignificantLeast Significant