Summary of Doctoral dissertation: Perfecting the business environment for Vietnamese tourism enterprises during globalization

Originated from the research tasks, the dissertation’s specific research objectives include: develop the analysis model of business environment impact on business of Vietnamese tourism enterprises versus the research assumption system; propose and recommend the solutions to perfect the business environment of Vietnamese tourism enterprises.

BACKGROUND

1 Necessity of the study

Surugiu (2009) unveiled that tourism significantly affects the foreign exchange flow, infrastructure development, management technique and training experience as well as other economic sectors, actively contributing to the socio-economic development of a country Tasci &Knutson's study (2004) specified that not only in the developed countries, tourism is known as an increasingly developed industry both in developing countries and underdeveloped countries Tourism's fast growth is recently recorded and acknowledged as the key economic sector of the country Tourism activities are eventfully carried out from cities to rural areas, from coastal and island area to mountainous area and highland According to Phuong Lien (2017), Vietnam tourism was recorded with 13 million and 74 million of turns of international tourists and domestic tourists, increase in 30% and 20%, respectively Total direct income from tourism hit over VND 500,000 billion, equivalent to US$ 23 billion, contributing approximately 7.5% to GDP of Vietnam

Tourism development facilitates the rural and urban appearance improvement, generating more jobs for the residential classes and the society Vietnamese business environment has been perfected for the tourism fussinesses to develop tourism as the key economic sector even though Vietnam tourism has just started since opening door policy since 1991 However, Vietnam tourism development is also recorded with non-sustainability and a series of weakness against that in other regional countries Tourism is still recognized as a young player The business environment is often impacted by the globalization factors; hence, tourism business environment is still available with an ocean of shortcomings, adversely affecting the tourism business performance Furthermore,

Vu Khac Chuong (2015) emphasized that: Any country which joins this process shall become prosperous and civilized, vice versa, those reject it shall be subject to poverty and backward

It is essential to investigate business environment in the cut-throat competition context of newly-born service industry to find out the feasible solutions to perfect the

business environment for tourism enterprises That is why, the “Perfecting the business environment for Vietnamese tourism enterprises during globalization”

topic selected for the study

2 Tasks and objectives

2.1 Research tasks:

The research tasks are originated from the above objectives, including:

- Determine theoretical basis on business environment’s impact on bussiness;

- Investigate the existing conditions of business environment of available Vietnamese tourism enterprises;

- Verify the impact of business environment on business performance of Vietnamese tourism enterprises

- Propose the solutions to perfect the business environment of Vietnamese tourism enterprises

2.2 Objectives

Originated from the research tasks, the dissertation’s specific research objectives include:

- Develop the analysis model of business environment impact on business

of Vietnamese tourism enterprises versus the research assumption system;

- Propose and recommend the solutions to perfect the business environment

of Vietnamese tourism enterprises

to enterprise’s business and business process Within this dissertation, the constituent-based approach to business environment is selected by the author Accordingly, the business environment shall be studied by specific factors as follows: economic environment, legal environment, socio-economic environment, political environment, technology environment, ecology environment and global environment

The study is also focused on macro environment study, rather than in-depth study on industrial environment and business environment, to make contributions

to the State management authorities to successfully control the tourism management policies

Scope of venue: Study at tourism enterprises in Vietnam (focusing on main cities such as Hanoi, Hai Phong, Hue, Da Nang, Ho Chi Minh City)

Scope of time: Data are collected in the period of 2010-2017

5 Research methodology

In order to launch the study, a series of basic research methodologies are applied, concretely: Desk research methodology, synthesis and analysis methodology, comparison methodology, dialectic logical methodology, statistics methodology, etc., especially, the econometric model is also employed Such research methodologies are applied to collect and process:

(1) Secondary data, including: Literature review, theoretical basis on enterprise’s business environment, constituents of business environment, tourism enterprise's business, experience in perfecting business environment in the regional countries, concept on globalization, characteristics and nature of globalization, existing conditions of Vietnam tourism business, impacts of Vietnam tourism industry's business environment, etc Secondary data is collected through books, newspapers, reports, course books, magazines, Internet, etc., provided by Vietnam National Administration of Tourism, the World Tourism Organization (UNWTO), tourism managers and researchers

(2) Quantitative research and qualitative research methodologies are combined Concretely:

- Quantitative research:

Group discussion and direct interview with the tourism experts, administrators and officials working in the departments and industries to design, develop and adjust the scale to ensure the content value for the qualitative research

- Qualitative research:

+ Apply the survey method by delivering the questionnaire to collect the primary data from the subjects of the research, i.e., the administrators in Vietnam tourism enterprises

+ Analyze the statistics with SPSS 20 software to evaluate the impacts of business environment factors on Vietnamese tourism enterprises’ performance

6 New contributions of the Dissertation

6.1 Academic and theoretical contributions

By studying over 120 documents related to business environment, tourism, and academic, new contributions of the dissertation are recorded:

- Design the new research model in good harmony with theoretical system

to explain the relations between the business environment factor with business performance of tourism enterprises

- Design the questionnaires with scientific basis and reliability to collect the primary data to verify the relation between the business environment factors and business performance of tourism enterprises

- Affirm the business environment factors, i.e., political, economic, ecology, socio-cultural, technology and global environment (equivalent to positive) affect the enterprise's business performance There is insufficient background to confirm the

relation between the legal environment and business performance of the tourism industry

6.2 New recommendations originated from the findings

The analysis of existing conditions of Vietnam tourism enterprise's business environment unveiled that: The good international environment and ecological environment actively and significantly affects the tourism enterprise's business Good and stable economic environment, political environment, technology environment actively and significantly affect the technology environment's business activities Moreover, no basis is found to conclude that the stable legal environment actively affects the tourism enterprises’ business even though the excessive and unplanned tourism exploitation as well as the State management measures are recorded as the weaknesses of available Vietnamese tourism enterprises’ business environment Furthermore, the shortcomings on disqualified tourism human resources, poor marketing as well as infrastructure and service physical facilities for the tourism development must be specially concerned

By analyzing existing conditions of business environment where Vietnamese tourism enterprises operate and conducting quantitative analysis of relation between business environment factors and business performance of enterprise, 6 solution groups are proposed to perfect the tourism enterprise’s business environment in the coming time

7 Structure

In addition to the background, conclusions, list of references, list of figures and appendix, the study is divided into 5 chapters:

Chapter 1: Overview of dissertation-related studies

Chapter 2: Literature review on business environment of tourism enterprises

Chapter 3: Research methodology

Chapter 4: Existing conditions of business environment of available Vietnamese tourism enterprises

Chapter 5: Solutions to perfect the business environment of Vietnamese tourism enterprises

CHAPTER 1 LITERATURE REVIEW ON PREVIOUS STUDIES

1.1 Overview of studies

1.1.1 Overview about the studies on globalization

Globalization is a trend that the investment funds and domestic enterprises are required to overcome the domestic market to successfully penetrate into other global markets because a better competitive position and lower operating costs are offered to the organizations to archive the great bulk of products, services and consumers (Incekara & Mesut 2012, p.23-30)

1.1.2 Overview about the studies on business environment

Chi (2009, p.545-555) summarized the studies on business environment, shown in table below:

(Mintzberg 1979)

Firstly propose a 4D framework, demonstrating the overall characteristics of business environment: Noteworthy is their level on diversification, complication, dynamics and threatening

(Van Dierdonck &

Miller 1980,

pg.37-46)

Propose a concept model on affiliating the competitive strategy and design the production management system, detect the important standby environment, suggest on significance of considering uncertainty and complication

of environment as context for the operating strategy (Dess 1984, pg.52-

to focus more on flexible production

(Kotha & Orne 1989,

pg.211-223)

Assume that suppliers, customers and geographical scope are important factors to master the environmental conditions (Ward/Duray…1995,

pg.99-115)

Remarkable impacts of dynamics and disadvantages from environment with application of competition strategies and business performance

(Fine 1998)

Business environment condition varies; company chain and competition priorities must be properly adjusted Otherwise, business performance may be adversely

2003, pg.430-443)

Business environment is characterized by remarkable statistic impact on selecting supply chain of company and overall performance

1.2 Gap and research issue

The study focuses on synchronously investigating all business environment factors available in a study model and evaluating the impacts of business environment factors to the tourism enterprise's performance The study is applied for the Vietnam tourism enterprises

CHAPTER 2 LITERATURE REVIEW ON BUSINESS ENVIRONMENT OF TOURISM

ENTERPRISES

2.1 Enterprise’s business environment

2.1.1 Concept and viewpoint on enterprise’s business environment

2.1.1.1 Tourism enterprise

Tourism enterprises refer to the special corporate and business forms, mainly involving in the organization, construction, selling and launching the package tourism program for the tourists Moreover, it may initiate the intermediary activities, i.e., selling products offered by the tourism product/service providers or other general business activities to ensure that the tourist’s demands are successfully satisfied from the first phase to the last one during their tourism journey Tourism service refers to provision of services on travel, transportation, residence, foods, entertainment, information, guideline and others to satisfy the tourist demands

2.1.1.2 Enterprise’s business environment

Enterprise’s business environment is known as a collection of (intrinsic and extrinsic) mutually affected factors, directly and indirectly affecting the enterprise’s business activities (Ngo Kim Thanh 2013, Nguyen Ngoc Huyen 2015)

2.1.2 Characteristics of business environment

Business environment is characterized by the following:

2.1.4 Role of business environment for enterprise

2.2 Tourism enterprise's business

2.2.1 Concept on business activities

2.2.2 Tourism enterprise's business

2.2.3 Factors affecting the tourism business performance

2.2.4 Business environment impact on enterprise’s business activities

2.3 Experiences on perfecting business environment for tourism enterprises 2.3.1 Experience of Thailand

2.4.2 Concept on tourism globalization

2.4.3 Nature and characteristics

2.5 Research model and assumptions

2.5.1 Research model

According to the literature review, the research model is proposed as follows:

Business performance

Global environment

Natural environment

Technology environment

Socio-economic

environment

Political environment Economic

environment

Figure 2.2 Research model

Source: Collection by the author

3.2 Data collection method

CHAPTER 4 EXISTING CONDITIONS OF BUSINESS ENVIRONMENT OF AVAILABLE VIETNAMESE TOURISM ENTERPRISES

4.1 Overview about Vietnam tourism environment

4.1.1 Introduction about Vietnam tourism

Vietnam is a country with diversified and abundant tourism potential It is recognized as a great potential to successfully develop the tourism, supported by a diversified natural landscape, a series of beauty spots, long-time cultural tradition with various festivals and good and unique habits and customs, regional and historical relics, unique art architecture deeply submerged with humanism, abundant, intelligent, hardworking and kind-hearted human resources

4.1.2 Vietnam tourism development policy

The Law on Tourism (amended) was officially ratified in 2017 by the National Assembly, creating the favorable legal corridor for Vietnam tourism development in the new area

4.1.3 Vietnam tourism potential

4.1.4 Socio-economic impacts of tourism economic development

- Vietnam is offered with great opportunities by tourism during transforming from an agricultural economy to service-based economy

- Tourism improves the budget income for the tourism development areas, actively facilitating the improvement of national income and redistribution of

national income among regions

- Tourism accelerates development of other economic sectors

- Tourism makes use of other economic sector’s physical facilities

- Tourism not only offers jobs to many female but a great chance for the advancement of women

4.2 Existing conditions of business of available Vietnamese tourism enterprises

enterprise

Joint Venture

Company 10 11 12 12 12 13 15 15 15 15 15 15 16

Total 428 504 620 701 795 888 980 1,132 1,305 1,456 1,519 1,600 1,752

Source: Vietnam National Administration of Tourism

- Infrastructure in general and tourism infrastructure in particular have been remarkably improved, the airway, waterway and road traffic systems, etc., have been ceaselessly invested, expanded and upgraded; the energy, ICT and other socio-economic infrastructure is basically renovated to facilitate the tourism development Up to now, about 10 international airports are available nationwide, including Noi Bai and Tan Son Nhat International Airport with high occupancy; the seaport, terminal and station systems are gradually improved to satisfy the traveling and tourism demands

Table 4.2 Residing facilities in the period of 2009 - 2017

Year 2009 2010 2011 2012 2014 2015 2016 2017 Number of facilities 11,467 12,352 13,756 15,381 16,000 18,800 21,000 25,600

Source: Vietnam National Administration of Tourism

4.2.2 Human resources of tourism industry

- Tourism is known as one of the industries generating the most jobs in the world, covering every corner in the areas from rural areas, cities and especially the remote areas

- Tourism’s great contribution is found to successfully eliminate the poverty and transforming the rural economic structure

4.2.3 Tourism products

Tourism products have been gradually formed such as landscape visit, heritage visit and relic visit; sea and mountain-based leisure tourism; spiritual and festival tourism Tourism products connected with Vietnam culinary are also recognized by the market Some new tourism products such as sport-adventure tourism, eco-tourism, MICE tourism, etc., are recently developed

4.2.4 Tourism promotion activities

Thanks to tourism development, the national image and destinations are widely popularized in both Vietnam and other countries, creating an active recognition on images of Vietnamese country and human, improving the prestige in the international arena

4.2.5 Tourism business performance in the period of 2008 - 2017

Table 4.3 Total income from tourism in the period of 2008 - 2017

Unit: VND 1,000 billion

Items 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Gross income

from tourism 60.00 68.00 96.00 130.00 160.00 200.00 230.00 338.00 400.00 510.90 Growth rate

(%) 7.1 13.3 41.2 35.4 23.1 25.00 15.0 46.9 18.4 27.78

Source: Vietnam National Administration of Tourism

4.3 Shortcomings

- Travel information management is concerned

- Excessive exploitation and unplanned development are found in many provinces and cities where fail to thoroughly consider the advantages of the tourism resources

- Vietnam is kept further behind the developed countries regarding number

of hospitality management human resources

- Tourism management models and methods are found with a series of weakness

- Legal system is not perfected

- Vietnam tour operator’s competitiveness is much poorer than that of foreign tour operators

4.4 Investigate the business environment of Vietnamese tourism enterprises 4.4.1 Descriptive statistics

Various evaluations in terms of independent variables’ factor roles and impacts are caused by differences between the subgroups of study samples (Kotler

& Keller 2012)

4.4.1.1 Gender

The analysis results in the chart unveiled that the study sample includes 198 males (accounting for 63%) and 118 females (accounting for 37%) The research samples were characterized by remarkable difference in gender It was implied the difference in attitude and evaluation of the interviewee against the factors’ impact

on dependent variables

Figure 4.1 Sample statistics by gender

Source: The author's calculation from survey data 4.4.1.2 Age

Analysis results in Fig 3 unveiled that the age group of 30-40 (group 2) makes up 55% of samples This age range was suitable for managers Because the respondents focused on business managers and researchers, the number of respondents within the age of less than 30 only made up 14% which was completely suitable

Figure 4.2 Sample statistics by age

Source: The author's calculation from survey data 4.4.1.3 Qualification

Gender

Male Female

Age

Over 50