Factors affecting the competitiveness of small and dedium sized aquaculture enterprises in the north vietnam

FACTORS AFFECTING THE COMPETITIVENESS OF SMALLAND MEDIUM-SIZED AQUACULTURE ENTERPRISES IN THE NORTH VIETNAM ___________________________ A DISSERTATION Presented to the Faculty of the Gr

FACTORS AFFECTING THE COMPETITIVENESS OF SMALLAND MEDIUM-SIZED AQUACULTURE ENTERPRISES IN THE NORTH VIETNAM

_

A DISSERTATION Presented to the Faculty of the Graduate School Southern Luzon State University, Lucban, Quezon, Philippines

in Collaboration with Thai Nguyen University, Socialist Republic of Vietnam

_

In Partial Fulfillment

of the Requirements for the Degree Doctor of Business Administration

_

By

PHAN THI MAI HUONG (DIANA)

December 2013

APPROVAL SHEET

The Dissertation of

PHAN THI MAI HUONG

entitled

FACTORS AFFECTING THE COMPETITIVENESS OF SMALL AND MEDIUM SIZED AQUACULTURE ENTERPRISES IN THE

NORTH OF VIETNAM

Submitted in Partial Fulfilment of the Requirements for the Degree

DOCTOR OF BUSINESS ADMINISTRATION

A program offered by Southern Luzon State University,

Republic of the Philippines in collaboration with

Thai Nguyen University, Socialist Republic of Vietnam

has been approved by Oral Examination Committee

Expert External Panel

WALBERTO A MACARAAN, EdD

Chairman Endorsed by: Recommended by:

Accepted in Partial Fulfilment of the Requirements for the Degree

Doctor of Business Administration

_ WALBERTO A MACARAAN, EdD

Date Vice President for Academic Affairs

CERTIFICATE OF ORIGINALITY

ACKNOWLEDGMENT

I would like to express my utmost sincere thanks to the Management

Board of the Southern Luzon State University, Thai Nguyen Universityand the

teachersof the two universities who helped me facilitate the learning process

throughout my study

I would like to express my sincere and profoundgratitude to Dr Cecilia

N Gascon, my enthusiastic adviser, who provided me with dedicated guidance, encouragement, andspent time in orienting me during this research

I would like to express my sincere thanks to the Board of Directors of Aquaculture Enterprises in HaiPhong, QuangNinh, Nam Dinh, Thai Binh, NinhBinh, ThanhHoa Province who provided me withdata through the

surveyquestionnaire

I sincerely thank the Board of the Universityof Laborand Social Affairs

(ULSA), colleagues in ULSA, and classmates in DBA who gave assistance

enthusiastically and shared experiences that helped me to complete this

thesis

Finally, I would like to send this as a gift to my family whose enthusiasm and encouragement helped me to complete this dissertation

PhanThi Mai Huong

DEDICATION

This piece of work is heartfully dedicated

to

My Family & Friends

PTMH

TABLE OF CONTENTS

PAGE

TITLE PAGE ……… i

APPROVAL SHEET ……… ii

CERTIFICATE OF ORIGINALITY ……… iii

ACKNOWLEDGEMENT ……… iv

DEDICATION ……… v

TABLE OF CONTENTS ……… vi

LIST OF TABLES ……… viii

LIST OF FIGURES ……… x

ABBREVIATIONS ……… xi

LIST OF APPENDICES ……… xii

ABSTRACT ……… xiii

CHAPTER I INTRODUCTION ……… 1

Background of the Study ……… 1

Statement of the Problem ……… 4

Objectives of the Study ……… 6

Hypothesis of the Study ……… 7

Significance of the Study ……… 7

Scope and Limitations of the Study ……… 8

Definition of Terms ……… 8

II REVIEW OF LITERATURE ……… 12

Concept of Competition ……… 12

Competitiveness Among Firms ……… 13

Porter’s 5 Forces Model ……… 14

David Aker’s Model ……… 16

III METHODOLOGY Locale of the Study ……… 28

Research Procedures ……… 28

Data Gathering Procedure ……… 29

Population ……… 30

Research Instrument ……… 31

Sources of Data ……… 32

Statistical Analysis ……… 32

IV RESULTS AND DISCUSSIONS ……… 36

V SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION Summary……….……… 73

Conclusions ……… 74

Recommendations ……… 75

REFERENCES ……… ……… 81

APPENDICES ……… 83

CURRICULUM VITAE ……… 116

LIST OF TABLES

TABLE PAGE

1 Key Success Factors Competitiveness Ranking 19

2 Number of Aquaculture Enterprises, North Vietnam 30

3 Illustration Method of Calculating Group Variables via

4 Financial Capability by Province 36

5 Management Capability of Aquaculture Enterprises, North

Vietnam

40

6 Intangible Assets by Province 43

7 Manufacturing Equipment and Technology Capability by

9 Production Capability by Province 48

10 Human Resources by Province 50

11 Research and Development by Province 52

12 Post Hoc Tests on Financial Capability 55

13 Post Hoc Tests on Management Capability 56

14 Post Hoc Test on Intangible Assets 57

15 Post Hoc Test on Manufacturing Equipment and

16 Basa Price by Province (US$ per kg) 60

17 Price of Prawn by Province (US$ / kg) 61

18 Post Hoc Test on Marketing 62

19 Post Hoc Test on Production Capability 64

20 Post Hoc Test on Human Resources 66

21 Post Hoc Test on Research and Development 68

22 Key Success Factors Competitor Ranking in Aquaculture

Sector in Six Provinces of North Vietnam 72

TABLE PAGE

LIST OF FIGURES

FIGURE PAGE

1 Map of the 6 Coastal Provinces in North Vietnam 31

2 Competitiveness in Terms of Financial Capability by

3 Number of Aquaculture Enterprises Assessed Management

4 Number of Aquaculture Enterprises Having High Rate in

5 Number of Aquaculture Enterprises Rated High in Human

6 Revenue Growth of Aquaculture Enterprises by Province 53

7 Domestic Market Share (in %) by Province 63

ABBREVIATIONS

ADB Asian Development Bank

AFTA ASEAN Free-Trade Area

APEC Asia-Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

ASEM Asia-Europe Meeting

BAT Vietnam- America Bilateral Trade Agreement

CCI Current Competitiveness Index

EU European Union

FAO Food and Agriculture Organization

GCI Growth Competitiveness Index

GDP Gross Domestic Product

GNP Gross National Product

KSF Key Sucess Factors

IMF International Monetary Fund

ISO International Organization for Standardization

NAIC National Association of Investors Corporation

ROF Rate of fund

ROS Rate of sales

SPSS Statistical Package for the Social Sciences

UN United Nations

VASEP Vietnam Association of Seafood Exporters and Producers VCCI Vietnam Chamber of Commerce and Industry

WB World Bank

WEF World Economic Forum

LIST OF APPENDICES

APPENDIX PAGE

2 Competitiveness of Each Province 88

5 KSF Competitor Ranking 6 Provinces of Northern

Vietnam in Aquaculture Sector 106

6 Statistics Descriptive of Each Questions 107

`

ABSTRACT

Title of Research : FACTORS AFFECTING THE COMPETITIVENESS

OF SMALL AND MEDIUM SIZED AQUACULTURE ENTERPRISES IN THE NORTH OF VIETNAM

Researcher : PHAN THI MAI HUONG (DIANA)

Degree Conferred : DOCTOR OF BUSINESS ADMINISTRATION

Name and Address

of Institution

: Southern Luzon State University Lucban, Quezon, Philippines and Thai Nguyen University, Socialist Republic of Vietnam

Adviser : Dr Cecilia N Gascon

Year Written : 2013

The study aimed to analyze the factors affecting the competitiveness of small-and medium-sized aquaculture enterprises (SMEs) North Vietnam The research utilized both primary and secondary data The respondents of this study were the members of the board of directors of some 122 small- and medium-sized aquaculture enterprises of six coastal provinces in North Vietnam Primary data were gathered via email with the directors of aquaculture enterprises

The study was adapted from the model of Aker (2007) in analyzing the factors affecting the competitiveness of aquaculture enterprises in the six coastal provinces of North Vietnam Eight criteria were identified as important internal factors that account for the enterprise’s competitiveness which include finance capability, management capability, intangible assets, manufacturing equipment, marketing, production capability, human resource, and research and development The competitiveness of aquaculture enterprises in Vietnam was analyzed through several indicators of competitiveness

Aquaculture enterprises in QuangNinh showed the highest level of competitiveness with the score of 4.04 from a maximum level of 5 In addition, the level of competitiveness of the SMEs of North Vietnam averaged at the score of 3.40

In order to enhance their competitiveness, small and medium aquaculture enterprises should focus on implementing a number of measures

(2) innovating manufacturing equipment and technology; (3) improving production capability; (4) expanding marketing activities; and (5) pushing up the activities of product research and development.was found out that there is

no significant difference regarding the perceptions between the managers of Canon, managers of suppliers, employees of Canon and employees of suppliers

As regards the extent of influence of the factors on the capacity development of local suppliers, it was found out that there is no significant difference of the perceptions between the managers of Canon, managers of suppliers, employees of Canon and employees of suppliers Hence, profile, autonomy, knowledge transfer, comparative advantage and government policies had affected the capacity development of local suppliers

The results of correlation coefficient was highly significant among competitive advantage ,autonomy, knowledge transfer, government policies and company profile indicating that all the factors included in the study influenced capacity development of local suppliers; hence, model 4 of the Canon Vietnam strategy shall be adopted by other suppliers

Finally, this study found out that there were identified gaps on profile such as organizational structure and company culture ; autonomy research & development and financial management ; knowledge transfer impacting responsiveness and absorptive capacity; competitive advantage affecting production capacity and product design ; and government policies focusing more on the enhancement of the Central Management Unit ; hence, all the identified gaps are recommended for capacity enhancement among the local suppliers of Canon Vietnam