Developing marketing strategy for Hoang Anh Dalat resort period 2007 to 2010

It is important at this stage to understand the different between the marketing concept often referred to as market orientation and the marketing function, which is concerned with the ma

Ho Chi Minh City, Vietnam – 2007

Ho Chi Minh City, Vietnam – 2007

who serves as my local coach and guidance, support and comments on my research papers Despite the complexity and scope of the topic, he convinces me with scientific instruction and valuable suggestions from the very beginning to the completion of this thesis My great thanks also expressed to professors in the roles of arguments and defense for contributing valued ideas, science and practices, which much encourages me

I would also like to thank deeply Professors of thesis defense committee who spare their time to pay attention to my presentation, give comments and pose valuable questions, which help me to be more comprehensive of the topic of my thesis My gratefulness extended to the two Directors of the MBA program, Lawyer Doctor Tran Anh Tuan and Prof Nagel, Vietnamese and Belgian professors, coordinators of the MBA Vietnam – Belgium program that I am honored to follow during the past two years

Last but not least, I am grateful to the Management Board of Hoang Anh Gia Lai Group and Hoang Anh Dalat Resort, my classmate, colleagues and my beloved family members for providing me with time release to pursuit of the MBA program

at Hochiminh City Open University and Solvay Business School/ University Libre of Brussel

This is my original work Any data, result or quote in the project is clearly identified

NGUYEN QUYNH

1-5 Distributing channels 29

3-4 Occupancy and average room rate chart 2007-2010 60

3-8 Chart of marketing segment by sources 65

3-9 Chart of marketing segment by domestic and foreign guests 66

ASEAN Association of South East Asia Nations

APEC Asia Pacific Economic Cooperation

FOC Free of Charge

FDI Foreign Direct Investment

GDP Gross Domestic Products

GOP Gross Operating Profit

ISO International Standard Organization

ODA Official Development Assistance

SWOT Strengths, Weaknesses, Opportunities and Threats

WTO World Trade Organizati

The first arguments

The second arguments

List of figures

List of abbreviations

Document references

Commitment

Foreword

INTRODUCTION

I Rationale 4

II Research history of the problem .5

III Objectives of research, scope and limitation 6

IV Research methodology .7

Chapter 1 LITERATURE REVIEW 1.1 Marketing and tourism concept 9

1.2 The roles of marketing in business 10

1.3 The marketing environment 11

1.4 Customer wants 13

1.5 Marketing mix 15

1.5.1 Elements of marketing mix 15

1.5.2 The characteristics of service 17

1.5.3 Marketing mix of based on 4Ps 19

1.5.4 Product strategy 19

1.5.5 Price strategy 23

1.5.7 Distribution strategy 29

Chapter 2 GENERAL ENVIRONMENT

2.1 Macro environment 31

2.1.1 Geographical factor 31

2.1.2 Demographic factor 32

2.1.3 Social economic factor 33

2.1.4 Political factor 35

2.1.5 Cultural factor 36

2.2 Micro environment 37

2.2.1 Dalat city, climate, rainfall and distance 37

2.2.2 Tourism development 39

2.2.3 Visitors to Lam Dong of the past several years 40

2.2.4 Quick look at other provinces 41

2.3 The group and Hoang Anh Dalat Resort 45

2.3.1 Introduction to Hoang Anh Gia Lai Group 45

2.3.2 Introduction to Hoang Anh Dalat Resort 46

2.3.2.1 Establishment and development 46

2.3.2.2 Location and architecture 46

2.3.2.3 Dimension 47

2.3.2.4 The resort situation 47

2.3.3 SWOT analysis 49

2.3.4 Competitor analysis 51

2.3.5 Customer analysis 54

2.3.6 Supplier analysis 55

Chapter 3 PLANNING MARKETING STRATEGIES 3.1 Defining vision and mission 57

3.2 Defining marketing strategies 58

3.2.1 Marketing objectives 59

3.2.2 Market positioning 61

3.2.3 Selection of market segments 64

3.3 Organization chart 67

3.3.1 Organization chart of Hoang Anh Dalat Resort 67

3.3.2 Organization chart of sales & marketing department 68

3.4 Marketing budgeting 73

Chapter 4 PRODUCT STRATEGY, PRICING STRATEGY, COMMUNICATION AND DISTRIBUTION STRATEGY 4.1 Product strategy 75

4.1.1 Developing of products and services 76

4.1.2 Building of the brand 78

4.1.3 Establishing of customer relationship 79

4.2 Price strategy 80

4.3 Communication strategy 83

4.3.1 Public relation 83

4.3.2 Exhibition – special events 84

4.3.3 Newspaper release – advertising 85

4.3.4 Word of mouth 86

4.4 Distribution strategy 86

4.4.1 Travel agencies – wholesalers 86

4.4.2 E – Commerce 88

4.4.3 Sales force 89

4.4.4 Personal selling 90

5.1 Conclusion 92

5.2 Summary of contributions 93

5.3 Suggestions for future researches 94

In 1776, when Adam Smith said that consumption is the sole end and purpose

of production, he was in fact describing what in recent years has become known as marketing concept The central idea of marketing is of a matching between a company’s capabilities and the wants of customers in order to achieve the objectives

of both parties

It is important at this stage to understand the different between the marketing concept (often referred to as market orientation) and the marketing function, which is concerned with the management of the marketing mix involves using the various tools and techniques available to managers in order to implement the marketing concept

For the sake of simplicity, theses are often written about and referred to as the four Ps, these being Product, Price, Promotion and Place although today many scholars include a number of additional Ps, such as People and Process

The marketing concept is discussed by many economists, scholars and organizations in the world and there are several popular marketing definitions

“Marketing is a process of planning and executing ideas, pricing, promoting and distributing conceptions, goods and services to create exchange that satisfies

Association

“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchange products of value with others” defined by Phillip Kotler

Tourism marketing is managerial philosophy by which researching, forecasting, selecting based on travelers’ demand can introduce suitable tourism products and services to the market in order to gain profit for that tourism organization Defined

by World Tourism Organization.

Tourism marketing is a series of methods and techniques supported by special spirit and methodical manner to satisfy unexpressed or expressed demand of customers that can be a purpose of entertainment or other purposes of home affair, business and meeting Defined by Robert Lanquar and Robert Hollier

What causes success in the long run, by which we mean a continuous growth in earnings per share and the capital value of the shares, has been shown by research

by Crainfield University School of Management Research Report, 1994 to depend on four elements: products/service, process, personal marketing and people

An excellent core product or service and all the associated R and D Clearly, marketing will have a heavy input into this process All this showing is that companies with average products deserve average success

Excellent, world class, state of the art operations All this is saying is that inefficiency today is likely to be punished Marketing should, of course, has an input

to defining operational efficiency in customer satisfaction terms Where is not allowed to, because of corporate culture, quality often becomes a sterile ISO activity

A culture, which encourages and produces an infrastructure within which employees can be creative and entrepreneurial within the prescribed company procedures Bored and boring people for whom subservience and compliance is the norm, cause average or below

Professional marketing departments, staffed by qualified professionals (not failures from other function) This means that companies who recruit professional qualified marketers with appropriate experience have a far greater chance of success than those whose marketing department staffed by just about any body who fancies themselves as marketers

Given these ingredients and, above all else, a corporate culture which is not dominated (because of its history) by either production, operations, or financial orientation, all the evidence shows that marketing as a function makes a contribution

to the achievement of corporate objectives Its principal role is to spell out the several value propositions demanded by different customer groups so that everyone

in the organization knows what their contribution is in creating this value

The matching process referred to earlier takes place in what we can call the marketing environment, which is the milieu in which the firm is operating Perhaps

what they do vitally affect our own behavior as a company

The point is that, since what our competitors do so vitally affects our own decisions, it is necessary to find some ways of monitoring this and other elements of environment and of building this into our decision making process

The political, fiscal, economic and legal policies of the government of the countries where we sell our goods also determine what we can do For example, inflation reduces the discretionary spending power of consumers, and this can result

in market decline Legislation concerning such things as labeling, packaging, advertising, environmentalism, and so on, all affect the way we run our business, and all these things have to be taken control of when we make our plan

Technology is constantly changing, and we can no longer consume that our current range of products will continue to be demanded by our customers For example, the introduction of non-drip paint had a profound effect on what had traditionally been stable market Likewise, the advent of the microprocessor revolutionized the computer industry, with a devastating effect on companies, such

as IBM, who remained dependent for too long on their supremacy in mainframes It

is interesting to note that TBM is now mainly a service company, with little involvement in hardware

The point is that the environment in which we operate is not controlled by us, and it is dynamic Hence, it must be constantly monitored and we must be prepared

to adapt our asset base and our approach to market

Let us briefly turn attention to the subject of customer wants so that we can complete our understanding of what marketing is Perhaps one of the greatest areas for misunderstanding in marketing concerns this question of customer wants Companies are accused of manipulating innocent consumers by making them want things they do not really need If there were so, we would not have a situation in which a very high proportion of all new products launched actually fail The fact is people have always had need, such as, for some entertainment What changes in the course of time is the way people satisfy this need For example, television was only commercially viable because people needed home entertainment, and this, yet another way of fulfilling that need

Nevertheless, let us not be fooled into believing that the customer, in the end, does not have the final day The entire customer needs have many different ways of being satisfied, and whatever people have choice they will choose that product that

The marketing environment

Matching

The marketing environment

prepared to pay What this means, in effect, since all commercial organizations incur cost in taking goods or services to the market, is that profit through customer satisfaction, is the only measure of efficacy or worth of what the company is doing Cheapness, efficiency, quality (in the sense of international standards such as ISO,

or, indeed, any other measure, are not criteria of effectiveness, since there is little point in producing anything cheaply, efficiently or perfectly if people do not really want it and do not buy it

Since costs are incurred in producing goods, it is necessary to find customers to buy those goods at a sufficiently high price and in sufficient volume (margin x turnover) to enable the company to cover its costs and to make a surplus (or profit) This is an economic necessity to enable the company to stay in the business and means that, unless what is being offered is seen by customers as satisfying their wants, they will not buy it

In the commercial sector, research has shown that there is direct link between long run profitability and the ability of a firm to understand its customers’ need and provide value for them For industries previously protected from competitors such as airline industry and telecommunication, many now know that sustainable profitability can only come in the long run through continuous customer satisfaction

To summarize, any organization that continues to offer something for which there is a long-term fundamental decline in demand, unless it is prepared to change

so as to be more in tune with what the market wants in the end will go out of business Even less sensible would be for a government, or a parent company, to subsidize such an operation, since we know to go on producing what people do not

want economically inefficient, especially when people will get what they want from abroad if they can not buy it in their home country

Central to this question of customer wants is an understanding that there is rarely such a thing as a market To start with, it is clear that it is customers who buy products, not markets A market is only an aggregation of customers sharing similar needs and wants In reality, most markets consist of a number of submarkets, each of which is different For example the airline market consists of freight and passenger transport The passenger side can be subdivided further into visiting friends and relatives, high rated business travel, charter and so on Failure to understand the need of the different customer groups would result in failure to provide the desired services at acceptable price

However, for now it is necessary to understand that it is our ability to identify groups of customer wants which our particular company capabilities are able to satisfy profitably that is central to marketing management

As we have already said, managing the marketing mix involves the use of the tools and techniques of marketing Thus, in order for the matching process t take place, we need information External and internal marketing information flows (market research) and database management in the following chapter

Marketing mix consists of four basic elements based on 4Ps

Service consists of four characteristics: intangibility, inseparability, variability, perishability

Different from material product, services cannot be seen, tasted, tried, smelt, felt or physical touch before buying Before stepping into an airplane or a bus, customers have nothing but just an airline paper ticket with a promise of good quality transport of you to your destination Sales staff of a hotel cannot carry the hotel room with him or her to show it to customers but they sell the right to use that room within

a certain period When the customers leave, they will bring nothing with them except

an invoice for payment Robert Lewis considered that people who buy a tourism service may not have a thing in their hand but cannot be empty with his mind Many buys tourism service and own wonderful memories to share to the others

Most of services of hotel, resort, restaurant, both supplier and customer cannot

be separated Customers contacting staff is the important part of the product, food in

a restaurant may not be perfect but the serving staff are not polite, lack of skill or show bad behavior, guests will not be satisfied and have bad experience of this service With the characteristic of inseparability, it is shown that the supplier and customer creating and forming consumption

couple likes to choose a quiet romantic restaurant; however, if a noisy group around make noise and nuisance, of course the couple will not satisfy this service In fact, restaurant manager should have to arrange a suitable place avoiding noise and keeping guests happy

Service is easily changeable; the quality of a service largely depends on supplier and whenever or wherever it is supplied to many causes them to be variable Service is supplied and consumed in the same time so it has limited time to control and managed in term of quality management

Fluctuation of customers’ demand makes it difficult to provide the same quality service when there is a peak in demand The quality service is also depending on professional skills of serving staff and their contact with customers A traveler may

be receive good service today but my not experience the same service the next day served by the same staff Why the server fail to provide the same quality because he may not be feeling well or he has problem with his girl friends

Variability and homogeneousness of service product are the cause, which make customers disappointed

Service cannot be stored in a warehouse; this means that this service product cannot be kept for tomorrow sales The service that cannot be sold today and of course cannot be reserved for tomorrow Indeed, a hotel with 100 rooms runs a 60%

occupancy today, it means that there are 60 occupied rooms and 40 vacant rooms, we can not sell 140 rooms tomorrow, because the hotel only accommodate guests from maximum of 100 rooms The 40 vacant rooms of the day before will disappear and not be sold Because of this particular perishable feature, many hotels want to reserve more bookings than the capacity of its accommodation

We will be discussing on 4Ps of marketing mix to start with in-depth analysis, which consists of four elements: price, product, place and promotion

In order to satisfy customer wants, we have to do research and development on our product meeting with their expectation This part will be clearly expressed in the following part of quality service management

A central role of the product in term of marketing management is very important, if not well controlled and managed; it will have critical impact on our business activities that nothing can be compensated for Product management is the vital aspect, which the company has to pay close attention to; such as characteristics

of product, product life cycle, profitable product, product concept, developing new product and product portfolio In the same time, we have to develop marketing strategy and objective for our product and company

Before discussing about product, let us study quality management and understand what is product, because this is core issue often to be misunderstood in the process of product management

product that we sell to them We are starting by considering that product is a problem solving, through which customers satisfying and bring profit to our company to achieve objectives The product customer buy is exactly what they want and be ready to pay This is the most important factor

Concerning service products such as consultation, banking, insurance, tourism and transportation, marketing for these services is nearly the same of marketing physical or tangible products, if there is different is the characteristics of these services that are intangible, inseparable, perishable and variable For example, seat

in an airplane if it flies with half empty seats, these seats will disappear and we cannot sell them the next day

80% of the impact but 20% of the costs

Matching Product we sell

What a customer wants

Product surround

20% of the impact but 80% of the costs

A band is a name or symbol, which identifies a product as having sustainable competitive advantage It will be clear that are talking not just a physical product, but also a relationship with the customer, a relationship that is personified either by the company’s name or by the brand name on product itself IBM, BMW, and Shell are excellent examples of company brand names Pepsi, Coca Cola, Foster Lager, Dulux Paint and Castrol GTX are excellent examples of product brand names

Most people are aware of Coca Cola, pepsi Cola, blind taste tests, in which little different is perceived when colas were drunk blind On revealing the labels, however, 65 per cent of consumers claimed to prefer Coca Cola This is one of the best indications of the value of what we have referred to as product surround That is

a major determinant of commercial success there can be a little doubt When a company buy another as in case of Nestle and Rowntree, it is abundantly clear that the purpose of acquisition is not to buy the tangible assets that appear on the balance sheet, such as factories, plant, vehicles and so on, but the brand name owned by the company to be acquired

In short, a successful brand is the identification of a product, service or a person, an area which make customers feel a unique value added to their satisfaction Brand name that brings success adds more value to be more competitive

to competitors in the global market but this is not easy to do

Product life cycle plots the volume or value of sales of a product from its launch to its decline and withdrawal Normally product life cycle has four stages such

as introduction, growth, maturity and decline

The product life cycle postulates that if a new product is successful at the introductory stage (and many fail at this point), then gradually repeat purchase grows and spread and the rate of sales growth increases At this stage, competitors often enter the market and their additional promotional expenditures further expend the market Nevertheless, no market is infinitely expendable, and eventually the rate of growth slow as product moves into its maturity stage

At this stage, the product has become popular, penetrated its market, got customers’ attention, been profitable and flourishable, that makes competitors desire

to enter this market This stage attracts new customers, meets great percentage of demand and upper limits of demand becoming clearer, price reductions are based on economies of scale with rapid expansion

Competition specialized to satisfy needs of specific segments, market share distribution is stable with a few companies often controlling much of industry It is

well developed buying patterns with customer loyalty In order to avoid to be declined from this stage, company does its best to maintain the volume of sales and starts to research and develop new ideas and products to continue its business

It appears that the customers are tired of this product and turn away to find other product for substitution In this period, not many products are sold, volume of sales is declining, products, services or goods become difficult to sell Therefore, minimum promotion and advertising are used

Of course, we have to build price structures for each of product, service, each

of customer groups and market segments We also identify single element that has impact on pricing; including internal, external, determined and influenced determinants In the mean time, pricing policies must be suitable to achieve company goal and for each period

Internal factors have impact on product pricing that is relating to the input, these factors belongs to company subjectiveness such as business objectives, costs, method of pricing, risk acceptance External factors are objectiveness influenced by market price, seasons, price of competitors

Pricing also involves producing costs, product utility and its benefit brought to the customers, situation of the market, degree of competitiveness, company objectives, substitute products, political environment, image of product and company, and current economy situation

A B C D E

Price (possible range)

A = marginal cost per unit

B = lowest price limit in the market

C = average cost per unit

D = going rate price in the market

E = top end price in the market

We definitely have to communicate information of our products and services to target customers who of course cannot be aware of if no communication is made since we know well that customers will not go to knock our company door to buy product Here the company needs to use variety method to communicate with customers such as multimedia, advertising, sales force, promotion

Pricing can influence the position of a product in the market, a high price can convey an image of better quality, and design or exclusiveness vice versus a low price can make customers think that this is a low quality product Consequently, price

of a product must be carefully structured to suit individual factors to suit each market segment If a good quality product sold at low will cause a loss for that company

If we sell our products services through intermediaries, of course they will receive an amount of commission for their service That is why we have to build a clear price structure for each particular customer who is intermediaries, wholesalers, retailers, end users Methods of paying commission or discounting are as follows

♣ Commercial discount

♣ Customer group discount

♣ Promotional discount

♣ Cash on delivery discount

The importance of product life cycle is determined in the product strategy However, in reality, product life cycle can be extended if we give discount or slow down the price to hold and maintain the market Remember that when our product is reaching to stay in maturity stage, it is the time it brings a lot of profit Another important factor indicates that the price of a product is changing depending on each period For example, when many products are sold in the maturity stage thus price does not much affect behavior of buyers as of increasing demand However, we should balance volume of sales by managing price and units of products sold to maximize revenue and maintain the market

In order to obtain objectives, a company should have effective tools to communicate information to current and potential customers Products can be introduced directly to them by face-to-face, sales force, personal selling, customer service center, distribution center, advertising, promotion, multimedia, point of sales, exhibition, special events

Any organization has two relations that are internal relationship and external relationship Internal relationship is the relation between staff of a department and the other and between staff and its customers Concerning this relation, we must understand, it will help to keep relation with current customers and to find new potential customers in the future In the other hand, the management of a company has to take a good care of workers and employees, to be prepared to train them, to adjust wages to maintain qualified employees

External relation is public relation of an organization communicating to out side people, entity such as customers, local people, newspapers, magazines, authorities, and social organizations By building a good relationship with media agencies that will help us to write some articles about our company, our products, and our image to be public It is a good way to earn free advertising of our product to promote the image of the company

Tourism with its international attribute, it requires to make good relationship with oversea media agencies, industry association and to participate in international

relating associations In public relation, the most effective tool is publicity to promote our product, image, and company

To send our product message to customers there are several means, which are participating in our industry fairs or hospitality exhibitions, relating to our company

in local cities, cities of other parts of the country or event in foreign country By using this mean, we can have opportunities to advertise our products, find potential customers, build relationship, enhance our image, especially sell products directly to end users and exchange experience with other partners in the same industry and investigate direct competitors

One another mean is also very important in planning marketing strategy, that is

to hold special events, new product launching, and new marketing campaign, lucky draw to promote our brand name and to increase volume of sales

Advertising is necessary to survive and develop Advertising is the activities with the aim to communicate information to target groups of a product, service or an idea These messages are conveyed via one or more media means and paid by the company who want to advertise

It is advised to know to define the objectives of advertising, what the company wants The company wants to advertise its name or product brand name, the message content, for whom, when and where? What is the budget? By what mean or media? For tourism, we advertise to draw attention of current or potential customers, to

use our product or to build our brand name

Besides advertising, one of the methods to convey message is to provide reporters, newspapers, magazines, televisions, radios with our company information, product release In order to prepare a good concise clear message that needs to have precise simple content with address, telephone, fax, email, especially make it easier for them to put on news To hold a successful newspaper release, we need to prepare good message, appropriate time, location and of course a list of media that we want

to inform

Words of mouth are the technique that conveys information of a product, service, brand name or image of a company If a company does well this task that is the effective way to communicate to customers free of charge but the wide range of strong influence and the convincing to customers to buy our product are potential For example, in hotel industry, if a guest is well served while he stayed in and is satisfied with the hotel service he will be willing to introduce this hotel to his friends, colleagues, relatives or family members to use, on the contrary if he is not happy with the hotel service he will surely talk badly to the others to spoilt our image Consequently he will never come back to use this hotel

For all what we do is with the objectives to distribute our product, service to customers at the right time and right place to satisfy their need Organizing of

distribution and customer service are important matter in marketing strategy that will

be deeply discussed in the next chapter Finally, it is necessary to combine marketing mix to company strategy in a most efficiency

Distributing channels have the following functions

Retailer Post

office internet

Whole saler

Whole saler

♣ Risk taking

Lam Dong is a province located in the south of Tay Nguyen Highlands Its surface area is 9,764km2 occupying about 2.9% of that of the entire country The province has the borders with Khanh Hoa and Ninh Thuan provinces in the east; Dong Nai province in the southwest; Binh Thuan province in the southeast; Dac Lac province in the north

The total provincial road's length is 1,744km, in which 459 km is plastic road, the remain is tiny-stone road, mix road & soil road Classifying:

National road system: 412km (264 km plastic road):

National road no 27 connect Ninh Thuan – Lam Dong – Dac Lac

National road no 20 connect HCMC – Lam Dong

National road no 28 connect Binh Thuan – Lam Dong – Dac Nong

Provincial road system: 346 km, in which 23 km plastic road: Provincial road No 23 connects Lam Dong – Khanh Hoa

District road system: 986 km (171 km plastic road)

Lien Khuong Airport at Duc Trong District, laying beside National road no

20, National road no 27, 30km far from Dalat, with the area about 160 ha and the fly land's length is 2,400m (in the upgrade process to international airport and will be used in 2006)

The Phan Rang - Dalat rail route is 84km length, was build from French colonist age, was rebuild 7 km from Dalat to Trai Mat to serve tourist now

There are total 15 bus stations, in which 2 stations in Dalat city, the remains lying in districts

According to the population and housing census (1.4.1999), Lam Dong has 996,221 inhabitants occupying 1.31% of the population of the whole country The density is 101.5 inhabitants / km2. Lam Dong is a multiethnic province The majority is the Kinh

Besides the Kinh, Lam Dong is inhabited by the aboriginal people: the Koho (112,737), the M (25,289), the M’Nong (9,679), the Churu (14,579), the Raglai (989) and the Stieng (256) The people coming from the North: the Tay (18,927), the Nung (8,491), the Thai (4,178), the Muong (2,067) and the Tho (522) The Chinese (15,229)

By the year 2005, Lam Dong has a population of 1,194,000 inhabitants, the natural growth rate decreases from 1.95% (2000) to 1.62% (2005) However, the growth rate increases by 3% per annum due to physical immigrants to Lam Dong in the past recent years

For the past four years, the province has created about 113,000 jobs that make

an average of 22,600 new jobs per annum Year 2000, the rate of poverty is 13%,

by the year 2005, this rate is reduced to 8% however, and it is still high rate of 20%

in minority areas In general, the standard of living is gradually improved whilst income per capita reaches vnd 5,000,000 per annum for the year 2005; nevertheless, the standard of living of farmers and ethnic minority is still low

Economic growth rate: GDP increases by average of 10% annually for the period 2001 – 2005, nearly achieving the targets set of 11-12% Local economy grows stably, infrastructure develops, goods and services of mixed economic market continue to expand Cultural and social activities positively move forward, creating opportunities to modernization and industrialization of the country

GDP of 2000: vnd 3,546 billion; of 2005: vnd 5,727 billion with the average growth rate of 8,9% per annum in which construction and industry contributes vnd 456.3 billion of 2000 and vnd 824 billion of 2005 with the average growth rate of 12.6% per annum GDP of service industry contributes vnd 568.8 billion of 2000 and vnd 1043.6 billion of 2005 with the average growth rate of 12.9% per annum