Summary of Doctoral thesis in Economics: Development of small and medium commercial enterprises in Ha Tinh province

The dissertation proposes measures to develop SMEs in Ha Tinh province, contributing to socio-economic development of the province.

MINISTRY OF EDUCATION AND TRAINING

THUONG MAI UNIVERSITY

The thesis is completed at Thuong Mai University Academic supervisor:

Supervisor 1: Assoc.Prof Nguyen Thi Bich Loan

Supervisor 2: Dr Chu Thi Thuy

Refree 1:

………

……… Refree 2:

The thesis can be found at: - National Library

- Thuong Mai University’s Library

OPENING

1 The urgency of the topic

Small and medium enterprises (SMEs) in general and SMEs

in particular are important to the overall development of the economies of the world That role is expressed through the attention and recognition of the governments of countries around the world Governments and local governments have issued many policies to support sme's development

According to the association of SMEs (Vinasme), SMEs operate in many different fields such as manufacturing, industry, construction, agriculture, forestry, fisheries and commerce in order to create more jobs, increase income for laborers, contribute to socio-economic development in general SMEs account for about 97% of all registered companies in Vietnam These enterprises contribute over 40% of total domestic income, generating over half a million workers per year, accounting for 51% of total employment, of which SMEs account for a large proportion (about 70%) of total SMEs in Vietnam

This proves that in recent years the Government of Vietnam has issued many policies to support SMEs in general and SMEs in particular development Government policies have created favorable conditions for localities to develop a system of policies to support development of enterprises in order to boost the socio-economic development of localities, contributing to the development of socio- Economic development of the country In fact, many localities have succeeded in helping SMEs to develop such as Binh Duong province, Dong Nai province, Ho Chi Minh city, Da Nang city

However, there is a fact that SMEs are often profitable, obsolete technologies, and therefore have no economies of scale Therefore, in order to solve difficulties and improve competitiveness, creating sustainable development for SMEs should have long-term policy solutions to support enterprises

With the role of SMEs in the key economy is the connection between production and consumption, create more jobs suitable for large population, help create value for goods and services To

promote the development of market economy, international integration, trade liberalization and the building of an independent and autonomous economy

It can be said that SMEs are developing and operating very dynamically and in accordance with the conditions and level of development in our country, in the next time the type of SMEs still play an important role in the economy front The trade liberalization wave and the achievements of the 4.0 revolution are strongly applied

in all areas of social life

In addition, the Law on Enterprises 2005 and Decree 56/2009 /ND-CP of the Government on supporting development of SMEs; Particularly, the Small and Medium Enterprises Promotion Law was promulgated on June 12, 2017 and came into effect January 1, 2018, confirming the Government's interest, properly evaluating the role of SMEs The legal framework is important for supporting sme's development This will facilitate the development of SMEs in general and SMEs in particular By the end of 2016, there were 4,432 SMEs,

of which 2,158 were SMEs, accounting for 49.7% of total SMEs, contributing to the province's GRDP by 10.65%

It can be said that in recent years, the province's SMEs have achieved remarkable results such as the increase in quantity, medium scale, diversified forms of ownership, creating many jobs and contributing a lot to the provincial GRDP The result is that the province has implemented many solutions and issued many policies

to support SMEs in general and SMEs in particular development Ha Tinh province has created a favorable environment for individuals, Organizing the establishment of enterprises as facilitating the establishment and establishment of enterprises; Implement policies to support business development in accessing capital; PAR; inspecting and supervising the operation of enterprises; To plan and build small- and medium-sized industrial parks and complexes so as to perfect the infrastructures in service of the local business Besides, there are still some drawbacks Specifically, most of the SMEs have weak financial resources, low technology, small scale, poor quality of human resources, the internal business development is not firm, lack of

business strategy long-term business, and not fully promote the potential available in the locality

Ha Tinh is a province in the North Central Region, which is associated with the East-West Economic Corridor, in the process of integration of the country However, due to many objective and subjective reasons, the development of small and medium enterprises

in the province has not been sustainable, the efficiency of operation is not high and not actively promoted its role

In addition, in the context of the 4.0 industrial revolution, international economic integration and accession to new FTAs, poses many challenges to the provincial SMEs in the province Ha Tinh

Starting from the reasons on the author selected topic:

"Development of small and medium enterprises in Ha Tinh province"

"Entrepreneurship, SMEs and Local Development in Andalusia, Spain", OECD

2.2 Domestic research

Le Xuan Ba, Tran Kim Hao, Nguyen Huu Thang (2006),

"Small and medium enterprises in Vietnam in the context of international economic integration"; Nguyen Vinh Thanh (2005),

"Enhancing the competitiveness of Vietnamese commercial enterprises in international economic integration"; Le Du Phong (2006), "Small and Medium-Sized Enterprises Development in the

Field of Science and Technology, Hungarian Experience and Application in Vietnam"; Tran Kim Hao (2005), "Business Service Market for Small and Medium Enterprises in Vietnam: Current Situation and Solutions"; Dinh Van Thanh (2012), "Research on the scientific foundation for the development of Vietnam's trade in the period 2011-2020";Nguyen Thi Lan Anh (2012), "Development of management human resources of small and medium enterprises in Thai Nguyen province"; Le Anh Dung (2003), "Renovation of the State management mechanism for small and medium enterprises in

Ho Chi Minh City"; Man Ba Dat (2009), "The Development of State Small and Medium Enterprises in Bac Ninh Province, 1997-

Non-2003, Situation, Experience and Solutions"; Tran Van Hoa (2007), Small and Medium Enterprise Development in Rural Thua Thien Hue

"; Pham Van Hong (2007), "Small and Medium Enterprise Development in Vietnam in the Process of International Integration"; Tran Thi Van Hoa (2003), "The Impact of Macroeconomic Regulatory Policy on the Development of Small and Medium Enterprises in Vietnam; Pham Thuy Hong (2004), "Developing competitive strategies for small and medium enterprises in Vietnam

in the process of integrating into the world economy"; Le Thi My Linh (2009), "Development of human resources in small and medium enterprises in Vietnam in the process of international economic integration"; Le Quang Manh (2011), "Promoting the role of the state

in the development of small and medium enterprises in Vietnam"; Thai Van Re (2011), "Small and medium enterprises in Ho Chi Minh City after Vietnam joined the World Trade Organization (WTO); Ha Quy Sang (2010), "Financial solutions, accounting for small and medium enterprises in Vietnam"; Chu Thi Thuy (2003), "Some solutions to improve business performance of small and medium enterprises in Vietnam"; Nguyen The Binh (2013), "International experience on policies supporting small and medium enterprises development and lessons for Vietnam"; Nguyen Thi Lam Ha (2007),

"Experience building and developing business incubators in China and lessons for Vietnam"; Pham Xuan Hoa (2013), "Experience building taxation systems supporting small and medium enterprises

in some countries"; Tran Ngoc Hung & Do Thi Phi Hoai (2013),

"Support for Small and Medium Enterprises Development of Agricultural Products in the North of Central Vietnam"; Dao Duy Huan & Duy Duy Tung (2012), "Restructuring of Small and Medium Enterprises in Vietnam; Doctor Kiem (2013), "Small and Medium Enterprises: Situation and Solutions in 2013"; Le Thi My Linh (2009),

"Demand for support from the State and international organizations

of small and medium enterprises"; Besides the above documents, there are many textbooks, articles, as well as seminars and seminars related to SME development such as e-commerce curriculum (2103), Bach Khoa- Hanoi, the basic e-commerce curriculum, the University

of Commerce, the curriculum on state management of commerce (2015) by the author Than Danh Phuc, University of Commerce

In general, many domestic and foreign researches have developed a theoretical framework for SME development, theories of SME development and solutions for SME development in different localities Therefore, NCS inherit the theoretical framework for SME development However, few works mention the content and criteria for assessing the development of SMEs in terms of economic management On the other hand, there is no specific study on the situation of SME development in Ha Tinh province in the recent time From that, we propose some solutions to develop the SMEs

3 Purposes and research duties

3.1 Research purposes

The dissertation proposes measures to develop SMEs in Ha Tinh province, contributing to socio-economic development of the province

3.2 Research duties

- To systematize and deeply clarify the basic arguments for developing the SMEs; to identify the major factors affecting the development of SMEs

- Analyzing the situation of developing SMEs in Ha Tinh province in the recent time, assessing the achievements, limitations of existence and causes

- Proposing some solutions for SME development in Ha Tinh province in the coming time

4 Subjects and scope of research

SME development entities include the state, the enterprises themselves and the organizations concerned However, from the study viewpoint of the thesis, the SME development entity here is the state Therefore, the content of SME development is in essence the content of state management of the development of small and medium enterprises

State management of SME development consists of two levels, namely state management at the central level and state management at the local level Within the scope of the thesis research, the content of SME development is approached from the perspective

of state management at the local level (provincial level)

- In terms of time: The data used in the study of the thesis was collected from 2011 to 2016, solutions proposed to develop the SMEs to 2025, vision by 2030

- In terms of spaces: The main thesis on research on SMEs in

5.2 Specific research methods

5.2.1 Data collection methods

5.2.1.1 Method of secondary data collection

To collect secondary data for the research process, the author conducted the collection process including the following steps:

Step 1: Identify the data needed for the study

Step 2: Determine the secondary data to be collected from the external source (data type and source data)

Step 3: Conduct secondary data collection

Step 4: Conduct a detailed study of the data value

Step 5: Form the secondary data to be collected for use in the thesis from the original sources

5.2.1.2 Primary data collection method

Primary data was collected from two sources through direct questionnaires distributed to the respondents

Primary sampling method

- The first object: representatives of the small and medium enterprises (representatives of the Board of Directors or members of the Board of Directors)

- Second object: Representatives of managers of local state management agencies

5.2.2 Data processing methods

5.2.2.1 Secondary data processing method

Based on the collected secondary data, statistical methods used to describe, analyze, compare, synthesize and evaluate such as: compare the fluctuation (increase, decrease) the number of enterprises through each year, then calculate the rate of increase, decrease average during the study period Determining the proportion

of SMEs in the total number of SMEs, summarizing the indicators on the efficiency of using human resources such as profit, profitability From then analysis and evaluation of trends of change (increase, decrease) through years

5.2.2.2 Primary data processing methods

Based on the primary data, the authors sum up the data from the questionnaire The author uses the Microsoft Excel program and the SPSS statistical annalysis program to process, synthesize and analyze data according to the research content However, This study

mainly uses descriptive statistics to analyze and evaluate information (presented in Appendix 04, 05)

6 Contributions of the thesis

New theoretical contributions

The dissertation has clarified some basic theories on the development of small and medium commercial enterprises such as concepts, the building of evaluation criteria system; The contents of developing small and medium commercial enterprises are approached from economic management perspective such as creating the favorable environment and conditions for the establishment of small and medium commercial enterprises, implementing support policies for the operation of small and medium commercial enterprises, implementing administrative reform to create favorable conditions for the development of small and medium commercial enterprises The thesis has identified factors affecting the development of small and medium commercial enterprises such as the orientation and restructure of the Government; the local socio-economic development; scientific and technological development; natural conditions and local infrastructure, qualification and capability of state management officials…

New conclusions about the current situation

Based on the practical experience of some local provinces such as Nghe An, Thanh Hoa, Quang Nam, the thesis has drawn four lessons that could be applied to develop small business enterprises and in Ha Tinh provinces such as creating favorable conditions for the establishment of small and medium commercial enterprises, implementing policies to support the development of small and medium commercial enterprises, implementing administrative reform

to improve the investment environment, removing barriers for enterprise development; investing in local infrastructure system

The thesis analyzes the situation of developing small and medium commercial enterprises in Ha Tinh province in the period from 2011 to

2016 It then evaluates the achievements, points out the limitations and the causes of the situation The basic achievements are the rapid increase in the number of enterprises, the diversification in type of ownership; the

widespread development of enterprises throughout the province; job creation for local laborers; the contribution to the economic development

of the province The main shortcomings are the small size of enterprises

in terms of capital and labor, the concentration of capital on retail trade, low performance, the low number of jobs created, the modest contribution

to GRDP The main reason is that the unsuitable support policies for small and medium enterprises, the limited organizational structure of state management for enterprises and asynchronous local infrastructure

New proposals on solutions

The thesis proposes seven groups of measures to develop small and medium commercial enterprises in Ha Tinh province to 2025, vision

by 2030 The main focuses are creating more favorable environment and conditions for business registration and establishment, improving the support policies for enterprises, continuing to implement administrative reform to create favorable conditions for enterprises to operate effectively At the same time, it is necessary to have recommendations to the Government, Small and Medium Enterprises Association to create favorable conditions and environment for the implementation of the above solutions effectively

DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISE

ENTERPRISES 1.1 Overview of small and medium commercial enterprises in the economy

1.1.1 Concepts and characteristics of small and medium enterprises

1.1.1.1 Concept and criteria for identifying small and medium enterprises

The thesis uses the concept to identify SMEs in Vietnam as follows: "SMEs are enterprises with chartered capital of less than VND 100 billion and average number of employees less than 300 people per year."

1.1.1.2 Characteristics of small and medium enterprises

SMEs have limited resources such as capital, human resources, technology; management capacity of managers with low qualifications, lack of experience and skills in management and operation of enterprises; Operating mainly in the field of trading 1.1.2 Concept, characteristics and role of small and medium commercial enterprises

1.1.2.1 The concept of small and medium commercial enterprises

Within the scope of the study, by the author: Commercial enterprises are the type of enterprises established for the purpose of conducting commercial activities

Doanh nghiệp thương mại nhỏ và vừa ở Việt nam là các doanh

Small and medium sized commercial enterprises in Vietnam are enterprises that satisfy both the following conditions:

(1) It is an enterprise that accounts for more than 50% of the total turnover of the business

(2) Being an enterprise with a chartered capital of less than VND 50 billion and an annual average labor force of less than 100 employees [6, P.2]

1.1.2.2 Characteristics of small and medium commercial enterprises

First of all, the operation of the DNP is not the same as the other enterprises, including economic processes, technical organizations in the customer's business is the central character with the motto "customer is the first priority"

Secondly, the private sector has an indispensable link with each other, which forms the economic and technical sector, in terms

of relatively loose technology, but is very tight on the

socio-economic angle and thus exists in the laws recognized and respected That is the very nature of the trading guild

Thirdly, SMEs nowadays are the intermediate link between production and trade in goods and services, so the development of SMEs has indirect effects on all sectors of the national economy SMEs are very large In particular, in the period of international economic integration, trade liberalization will create great commercial value contributing to the overall development of the economy

With the above characteristics, it can be seen that DNI has a great role in the socio-economic development of countries in the world Those features have certain advantages and limitations

1.1.2.3 The role of small and medium commercial enterprises in the economy

Firstly, it directly contributes to the growth of the trade sector, thus contributing to the economic growth of the country

Secondly, SMEs have an important role in transforming the economic structure towards industrialization and modernization

Thirdly, contribute to the dynamic economy, maintain the freedom of competition, democratization and efficiency, contributing to the strengthening and development of economic relations

Fourthly, create more jobs, increase income for laborers, stabilizing social politics

Fifth, facilitate the incubation of entrepreneurial talent

Sixth, attract capital and resources available in society

1.2 The concept and norms for evaluating the development of small and medium commercial enterprises

1.2.1 The concept of developing small and medium commercial enterprises

According to the author, SME development is understood as follows: The development of SMEs is the increase in the quantity and quality of the SMEs, the improvement of the performance of the small and medium enterprises, ensuring the structure of the SMEs in line with the economic structure To contribute to local economic and social development