Assessment of implementation of government strategies in improving competitiveness of telecommunication companies in vietnam basis for policy redirection using PEST analysis and solution

However, with the development - many problems arising in this industry:The dispute service; The exclusive license; The human problem; The issue of restructuring of state-owned corporatio

SUMMATION THESIS BY PHAN THẾ HÙNG

PREFACE

In the past years achievements of the ICT sector has made a significant, bringing great benefit to society The number of telecom business increased, the dynamics of the telecom business increased, telecommunications cost reduction, quality telecommunications services are gradually improving However, with the development - many problems arising in this industry:The dispute service; The exclusive license; The human problem; The issue of restructuring of state-owned corporations; The issue of managing telecommunication infrastructure; Management services, management These issues are directly related to government policy and regulations, development policies in recent years, as well as issues of economic, social, technological

The assessment of the macroeconomical impact of government policy through the evaluation of the implementation of government policy in the competitive telecommunications business model with PEST is an essential need and then finding make recommendations for policy changes

Name of thesis: " ASSESSMENT OF IMPLEMENTATION OF GOVERNMENT POLICIES IN DEVELOPING COMPETITIVENEES OF TELECOMMUNICATION COMPANIES IN VIETNAM: BASIS FOR POLICY REDIRECTION USING PEST ANALYSIS “

The structure of dissertation includes 5 chapters

CHAPTER I: INTRODUCTION

1.1 BACKGROUND OF STUDY

In recent years, many national scholars and international researchers are interested in competitive environment issues and the competitiveness of economic sectors with the different levers In the framework of the technical assistance project for assessing the situation and reviewing the system of legal documents in accordance with international commitments to the WTO, a number of studies were carried out such as Report on competitive telecommunications (VNCI), the appropriateness of specialized legal documents (MUTRAP)

However, so far in Vietnam there are not any economic researches studied fully and systematically in depth the role of the state for improving the competitive environment for telecommunications companies

Based on an analysis combined with systematic analysis of statistics, the study shows the general problem of the competitive environment in the telecommunications sector, analyzes the situation and gives some major solutions to improve the competitive environment of telecommunications services in Vietnam in the future

1.2 STATEMENT OF THE PROBLEM

To implement this study, the author answered the following questions:

- To evaluate the competitiveness of the telecommunications company in Vietnamn

- To determine the impact of the policies of the state on the development and competitiveness of telecommunications industry in Vietnam

- To draft policies that will further improve the competitiveness of the telecommunication industry in Vietnam

1.3 SIGNIFICANCE OF THE STUDY

Results of this study will showed that the level of implementation of government policies for the development of competitive telecommunications businesses in Vietnam This study will clarify somewhat the impact of the policy as well as the macro factors affecting the development of competitive telecommunications businesses, so we can choose the more appropriate solution

The study will help policy makers to have a clearer view of the telecommunications activities, the macroeconomic factors as well as the impact of these factors to the competition in the telecommunications business Since then there is a reasonable adjustment, the right time to ensure harmony between the interests of the state, business and civil society in terms of development technology and ICT services, international economic integration

1.4 SCOPE AND LIMITATION OF THE STUDY

Some state macroeconomic policies, especially the operation of information and communications

The level of implementation of government policies for the development of competitive telecommunications corporations Vietnam:

Group of Vietnam Post and Telecommunications (VNPT); Viettel Corporation (Viettel); Vietnam Multimedia Corporation (VTC); Sai Gon Poster Corporation (SPT)

Limitations of the study

As we know that competitive environment is very complex issues There are still many points which are inconsistent with each other both in Vietnam and in the world Moreover the market economy in Vietnam is still in the new phase formation with continuous changes and mobilization So, in the framework of the study limited by the review as well

as limited ability, the writer only focuses on issues related to the EXTENT OF

COMPETITIVENEES OF TELECOMMUNICATION COMPANIES IN VIETNAM

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES

2.1 REVIEW OF RELATED STUDIES

This section present of 9 literatures related to the topic

2.2 THEORETICAL FRAMEWORK

Use model PEST to study the impact of these factors in the macro environment The factors that are: Political (Institutional-law); Economics (Economics); Sociocultrural (Culture and Society); Technological (Technology)

2.3 CONCEPTUAL FRAMEWORK

From theory and definition in section 2.1 and 2.2, the framework of this thesis :

- factors create competition

- Characteristics of the competitive environment in telecommunications business

- In terms of competitive actors

- Considering the nature of competition

- In terms of legal aspects and the impact of competitive economic development

- Considering the level of competition

CHAPTER III: METHODOLOGY

Research design

Research Secondary data are sourced from various government agencies, a number of publications, and industry associations

The primary data are from a survey of telecom companies Content questions are designed

to rotate the level of implementation of government policies, these policies affect how businesses

Specifically, macroeconomic factors in each factor PEST model is reflected by the influence of the elements: the laws, decrees, decisions specific programs At the same time determine the influence of these factors to the intrinsic factor in the telecommunications business

2 Description of reseach points

Measurement of the impact of eight factors on competetiveness between Telecommunications enterprise : VNPT, Viettel, VTC, SPT

For 4 factors P,E,S,T

P

1 Telecommunications law

2 ICT development policy in Vietnam 2010-2020

3 Management Policies unfair competition (antitrust,

antidumping )

4 Policy, and the dynamics of government for procedures

for business registration and licensing for

telecommunications activities

E

5 Tax Policy for Telecommunications

6 The regulations in freight management, transparency and

transaction costs

7 Investment Policy in Management application ITC

8 Land Policy to develop telecommunications infrastructure

S

9 policies for human resource development and distribution

of human

11 Inspection - inspection and sanction telecommunication

12 The average income, living conditions, lifestyle affecting

telecommunications development

T

13 state investment in telecommunications research and

development

14 Policy Research encouraging the development of

telecommunication applications

15 The impact of information technology, internet and

business activities

16 Integration of new technologies Such as 3G, 4G

In order to analysis, the results obtained from the questionnaire were entered into SPSS spreadsheet

3 Research Instrument

The researcher will use a questionnaire and document analysis as the main instruments for data gathering The questionnaires shall contain items to be asked to respondents with questions

Data gathering procedures

The study used both primary and secondary data to identify the factor affecting competitiveness and access the level of competitiveness of enterprises

Primary Data Collection Method

Primary data was collected through a survey with 04 Telecomunication enterprises Vietnam with 600 samples The survey was done in 8 weeks

Secondary data collected from reports and studies in recent years

4 Statistical analysis

The thesis analyzed using one-way ANOVA with Post Hoc Tests deep analysis to analyze the differences in the impact assessment of the competitiveness of the elements P, E, S, T between companies Companies differ in the assessment factor P, E, S, T affects the competitiveness of the alpha level of significance when testing the difference in less than 0:05 ANOVA To analyze the differences between the companies assess the impact of these factors on the ability to compete, the thesis using SPSS 16.0 software In SPSS, the company is said to be the difference in assessment PEST factors affecting competitiveness when Sig> 0.05

- Assessing the impact of external factors (the components of P, E, S, T) to 08

elements within the Telecomunication enterprise: Enterprise Strategy; plans of companies; Financial; Marketing; human resources; Research and Development; equipment and technolog;The ability to cooperate in national and international;

- Assessing the impact of external factors: the influence of this factor to the

competitiveness of the telecommunications business

- Integrated components of P, E, S, T to evaluate these factors

CHAPTER IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

A GENERAL INTRODUCTION:

- The formation telecommunications authorities of the government

- Developmental Process of Vietnam telecommunications

- Ministry of Information and Communication state management agencies of

Vietnam's telecommunications

- Orientation telecommunication development

- A number of documents relating to Telecommunications Competition last 5 years

COMPETITION IN TELECOMMUNICATIONS VIETNAM (PEST MODEL USED)

1 Political factors, institutions, government legislation affecting the market competition in telecommunications

The institutions and laws of the state of the competitive telecommunications business in Vietnam

- System for telecommunications law

- The cooperation between the relevant authorities in coordinating the competition management, timely detection and treatment of manifest violations of competition law and unfair competition

- Make connections and share telecom infrastructure

Assessing the implementation of government policies for the development of

telecommunications competition

Analysis of results surveys for Policy elements (P)

For P, surveys on 4 issues:

- Telecommunications law (x1)

- ICT development policy in Vietnam 2010-2020 (x2)

- Management Policies unfair competition (antitrust, antidumping ) (x3)

- Policy, and the dynamics of government for procedures for business registration and

licensing for telecommunications activities (x4)

Correlations

The impact of the policies of the state on the development and competitiveness of

telecommunications industry in Vietnam

** Correlation is significant at the 0.01 level (2-tailed)

2 Economics (Economics)

The economic situation in Vietnam in 2012, socio-economic indicators in 2013

- Economic growth low

- Aggregate demand and low inflation

- Macroeconomic stability firmer

- The main targets of 2013

Investment policies, tax incentives and government investment in infrastructure and telecommunication services to promote effective competition in the telecommunications

business

- Investment policy and government investment in infrastructure and telecommunication services to promote effective competition in the telecommunications business

- Government investment in infrastructure and telecommunication services to

promote effective competition in the telecommunications business

- Tax Policy

The economic integration and participation of many economic sectors to develop competitive telecommunications

- The international economic integration

- Implementation of the equitization of State enterprises, telecom services has shifted

sharply from monopoly to competitive business telecommunications services

Analysis of results surveys for Economic elements (E)

For E, surveys on 4 issues:

- Tax Policy for Telecommunications (x5)

- The regulations in freight management, transparency and transaction costs (x6)

- Investment Policy in Management application ITC (x7)

- Land Policy to develop telecommunications infrastructure (x8)

Correlations

The impact of the Economics (Economics) on the development and competitiveness of

telecommunications industry in Vietnam

** Correlation is significant at the 0.01 level (2-tailed)

1 SOCIAL FACTORS (S)

Workforce ITC with the development of the Telecommunications business

- Situation of human resources and human resource communications

- ICT Workforce

Implementation of programs of public telecommunications and telecommunications development

Analysis of results surveys for Social elements

For S, surveys on 4 issues:

- Policies for human resource development and distribution of human (x9)

- Public telecommunications policy (x10)

- Inspection - inspection and sanction telecommunication (x11)

- The average income, living conditions, lifestyle affecting telecommunications

development (x12)

Correlations

The impact of the SOCIAL on the development and competitiveness of telecommunications

industry in Vietnam

** Correlation is significant at the 0.01 level (2-tailed)

2 TECHNOLOGICAL FACTORS AFFECTING THE TELECOMMUNICATIONS

MARKET (T)

The impact of technology convergence factors for the telecommunications sector

The impact of factors of state investment in research and development competitive

telecommunications

- Policies to encourage investment in research to develop telecommunication

applications

- The large corporations and government enterprises have investment programs

research and development tech for ICT

Analysis of results surveys for Tenical elements (T)

For T, surveys on 4 issues:

- state investment in telecommunications research and development (X13)

- Policy Research encouraging the development of telecommunication applications

(x14)

- The impact of information technology, internet and business activities (x15)

- Integration of new technologies Such as 3G, 4G (x16)

Correlations

The impact of the TECHNOLOGICAL on the development and competitiveness of

telecommunications industry in Vietnam

** Correlation is significant at the 0.01 level (2-tailed)

* Correlation is significant at the 0.05 level (2-tailed)

General summary of enterprises

Correlations

Sig (2-tailed) .000 .000 .000 .000

** Correlation is significant at the 0.01 level (2-tailed)

* Correlation is significant at the 0.05 level (2-tailed)

1 THE ACHIEVEMENTS

2 RESTRICTIONS AND CAUSE

2.1 Restrictions

Still have achieved concrete results, the first step is to build a competitive environment enabling the telecom business activities but also practical limitations exist which affect the development of the telecommunications market communication

2.2 Cause of the limitations mentioned above

- Problem assigning responsibility and coordination mechanism among government agencies concerned are still inconsistent and lacks consistency The capacity of the state management agencies can not meet the requirements of new management methods, is lower than required to facilitate and support business development

- The law to not keep the development of business activities, the text was issued too much and fast, sometimes inconsistent, has caused confusion for businesses in the recognition and response treatment in accordance with the law change The regulation is too complex or requires more explanation in the text, or the more difficult to handle specific issues can lead to inconsistencies in the methods of dealing between the authorities, the local and state agencies

- The lack of synchronization, inconsistent, inappropriate regulations, especially documents directly related to the operation of law firms such as land tenure, legislation funding , labor law, tax law, especially tax and how tax has yet to be overcome, especially in the field of telecommunications business