Các yếu tố ảnh hưởng tới sự hài lòng của các nhà đầu tư vào các khu công nghiệp của tỉnh Thái Nguyên (2)

FACTORS AFFECTING THE SATISFACTION OF
INVESTORS IN INDUSTRIAL ZONES
OF THAI NGUYEN PROVINCE

EXECUTIVE SUMMARY

CENTRAL PHILIPPINE UNIVERSITY

DOCTOR IN PUBLIC ADMINISTRATION

NGUYEN THI THU HA

DECEMBER 2016


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EXECUTIVE SUMMARY
Title:
Factors affecting the Satisfaction of Investors in Industrial Zones of Thai
Nguyen province
Total number of page: 148
Researcher:

Nguyen Thi Thu Ha

Degree Program:

Doctor of Public Administration

Institution:

Central Philippine University
Jaro, Iloilo City
Region VI

Rationale/Introduction of the Study
As of 2015, in Thai Nguyen province, there are 6 industrial zones which have been
planned in details with the size of 1420 hectares of natural land. Such industrial zones have
attracted 133 investment projects, of which 61 FDI projects have the amount of registered
capital reaching nearly 7 billion USD, 72 domestic investment projects have the registered
capital of 11,000 billion VND. Up to 2015, there were 100 projects in operation, of which: the
amount of FDI which was implemented was 6.2 billion dollars (accounting for 88.57% of total
registered FDI), accounting for 86.11% of FDI disbursed in the whole province; The amount of
implemented domestic capital is VND 7,700 billion (accounting for 70% of total registered
domestic capital) (Phan Manh Cuong, 2015). The FDI projects mainly focus on the fields of
industrial production, construction steel; producing portable mechanic tools for export;
producing garments for export; producing electronic components; producing mobile devices,
electronics and telecommunications; installing electronic products, etc and some other fields
with strengths of Thai Nguyen province. These achievements in the investor attraction have
been largely due to the significant improvement of the investment environment of the province.
In the 4 years from 2011 to 2014, Provincial Competitiveness Index (PCI) of Thai Nguyen
province increased by 49 grade, from No. 57 to No. 8, shows the high appreciation of investors
about the investment environment of the province.
Up to 2015, projects in Thai Nguyen industrial zones have gained the export value
which reached 18,5 billion USD, accounting for 97,2% of total the export value of the
province; created jobs for 95,000 labours (accounting for 57,9% of the amount of labours
working in the sectors of industry and contruction ) with the average income reached 5.7
million VND/month/person; submitted 2,100 billion VND for the national budget (Phan
Manh Cuong, 2015).

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The above statistical data showed achievements in investment attraction, development
of industrial zones in Thai Nguyen province which contribute significantly to the social
economic development of the province. However, there are still many shortcomings exist in
the investment attraction, particularly investment attraction in industrial zones. The
investment attraction in the industrial zones is limited. Up to December in 2015, 2 out of 6
industrial zones have not attracted any investment project. The occupancy rate of the planned
land area of the industrial zones is low. By the end of 2015, the occupancy rate of the planned
area just reached 36%.
According to Mai The Cuong (2005), in order to solve these difficulties in investment
attraction into industrial zones, the local authority should consider investors as customers, and
must aware of need and requests of investors in order to satisfy their desires. The investor
satisfaction with a locality is a competitive advantage that locality . If the locality is able to meet
the requirements of investors, there will be an positive impact on their satisfaction leading to
investment decisions into the locality.
For Thai Nguyen Province’s industrial zones, in order to attract investment projects,
satisfying needs of investors is very necessary and important. In order to be able to satisfy
investors, industrial zones need to define what factors affecting investor satisfaction and their
impact (positive or negative), then find out solutions for these factors, by which improve the
satisfaction of investors, attracting investment into industrial zones of Thai Nguyen province.
There are some studies on investor satisfaction or factors affecting the investor
satisfaction but most of them are papers published on journals, such as: “Factors affecting
foreign investor satisfaction in industrial zones – quantitative model and policy implications”
(Dinh Phi Ho et al., 2011b) – a research on industrial zones in Binh Duong province; “Factors
affecting foreign investor satisfaction about tax support service – a case study in Dong Nai
province” (Dinh Phi Ho et al.,2011c). Besides, the article “Factors affecting foreign direct
investment attraction – a case study of Thai Nguyen province” (Trinh Viet Hung et al., 2014)
was conducted based on the survey about the investors’ perspectives but not research on the
investor satisfaction. There are some other studies about the factors affecting the investor
satisfaction but they are just the master theses, such as: “Investment environmental factor

affecting investor satisfaction: case study in Phu Quoc distric, Kien Giang province” (To Hoang
Phuong, 2013), “Factors affecting investor satisfaction in Ben Tre province” ( Bo Quang Thuy,
2015). From the review of the related studies as summarized above, the author found that up to
now, there is no large scale studies like a doctoral dissertation on factors affecting on investor
satisfaction, particularly in the industrial zones of Thai Nguyen province.


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After recognizing and taking this research opportunity , this study was entitled “Factors
affecting the Satisfaction of Investors in Industrial Zones of Thai Nguyen province”, with
using quantitative methods will be a new scientifically significant research direction and
contribute to enhance the investment attraction in these industrial zones.
Statement of the Problem
General
This research intends to analyze factors affecting the satisfaction of investors in
industrial zones of Thai Nguyen province, and on that basis, proposes some policy solutions in
order to enhance the satisfaction of investors, thereby increase the investment attraction as well
as attract more investors to the industrial zones of Thai Nguyen province.
Specific
- Assess the satisfaction of investors about the industrial zones of Thai Nguyen province
where they are investing;
- Analyze the factors affecting the investors’ satisfaction in the industrial zones of Thai
Nguyen province;
- Propose some policy recommendations in order to enhance the investors’ satisfaction,
to increase the investment attraction and to attract many investors in the industrial zones of
Thai Nguyen province.
Research Design and Procedure
The survey research design will be used in this study. In addition, a descriptive document
analysis will be done. Secondary data will be provided by Thai Nguyen Provincial Statistical
Office and Management Authority of industrial zones of Thai Nguyen province. Questionnaires

will be prepared and distributed to investors in the industrial zones to survey on their satisfaction
with the place where they are investing. The study will be conducted through two main steps:
(1) Preliminary study and (2) Official study.
The draft scale is built on the theoretical basis of quality of service (namely
SERVQUAL scale of Parasuraman et al., 1988), theory of the investment behavior and the
Local Marketing theory and specificity of research that is to study factors affecting the
satisfaction of investors. To adjust the scales, the qualitative method was used in this study,
through the pilot study with 20 investors who are investing in industrial zones of Thai Nguyen
province and be able to assess those industrial zones. Through the results of this study, the
draft scale was adjusted to give the official scale.The official scale was used for official study.
A quantitative research was used for official study with the direct interview technique for
investors. This study was performed to test scale models and theoretical models. Scales were


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preliminarily evaluated by reliability coefficient method through Cronbach alpha and
Exploratory factor analysis (EFA).
Study Population and Sampling Technique
Population: Investors investing in the industrial zones of Thai Nguyen province
Sample size depends on the analysis method. This study uses the method EFA.
According to Hair et al. (2006), the minimum sample size for EFA is 50, preferably 100 and
the ratio of observation / measurement variable is 5/1. This study has used the EFA tool with
42 observation variables, so the sample size is at least 210. Meanwhile, according to reports
of the Industrial Zone Management authorities, the number of enterprises operating in the
industrial zones of Thai Nguyen province at the time of survey is 82. Therefore, the author
conducted a survey on the 82 enterprises, specifically, interviewed 3 respondents in each
enterprises. So the sample size of this study is 246.
The method of selecting respondents: The study selected the respondents who meet the
requirements of the following criteria:
They are investors who are the capital owners in the enterprises in Thai Nguyen

industrial zones .
They are the senior managers of their enterprises, including: Manager, Deputy
Manager, Head of Department, Deputy Head of Department. These are the people who are
most capable of understanding the operational status of their enterprises and understand the
issues related to the industrial zones in Thai Nguyen province in general, especially the
industrial zones where they are operating.
The author conducted surveying 82 enterprises operating in industrial zones with the
survey sample, as follows:
- Total number of samples sent to the survey: 246
- Total number of samples collected after the survey: 239
- Number of invalid samples due to the lack of information: 3
- Number of valid samples: 236
Thus the number of samples for research is 236 (This sample size is qualified for the
analysis of the research data)
Data Collection and Instrumentation
The data collection in this study has been gathered in form of primary and secondary
data in order to implement the qualitative and quantitative analysis. Because this study is
focused on particular research questions, data were collected with the use of a survey
questionnaire. Data was provided by Industrial Zone Management Authority of Thai Nguyen
province and by enterprises operating in Thai Nguyen industrial zones.


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The primary data collection was conducted through implementing survey using
questionnaires. The questionnaires will be delivered to the office of enterprises in industrial
zones by the researcher and her assistant, through the help of

the Industrial Zone

Management Authority. Secondary data was collected from data of reports and documents in

provincial departments and the Industrial Zone Management Authority. In addition, data and
research information also were collected from publishes such as: Book, formal website,
research journals etc. The researcher collected the data of enterprises operating in industrial
zones and their characteristics from Industrial Zone Management Authority.
Data Processing and Analysis
The collected data was processed with the SPSS 20.0 software. After encoding and
cleansing, the data was analyzed through two steps: (1)Descriptive statistical analysis; (2) The
quantitative analysis of factors affecting the satisfaction of investors through three steps: (1)
Test the quality of scales; (2) Exploratory Factor Analysis (EFA); (3) Multiple Regression
Analysis (MRA).
Findings
The followings were the major findings of the study:
(1). In recent years, the Thai Nguyen province's investment environment has been
increasingly improved and attractive to investors. The province has favorable natural
conditions, namely: important socio-economic geographic location in the Northern
mountainous areas; good transport connections with other major economic centers resulting in
favorability for economic activities of businesses; variety of types of mineral resources that
gives Thai Nguyen a good comparative advantage in the development of metallurgical
industry, mining, production of construction materials. Besides, the province also has a
system of engineering economic infrastructure which was built quite well, ensuring the
business activities and the socio-economic activities in the province. In addition, political and
order security stability, and the good healthcare supplies, as well as abundant labor resources
who are trained at all levels are also important factors contributing in attracting investors in
recent years.
(2). The evaluation of the investors or the enterprises on the investment environment of
Thai Nguyen province is expressed through Provincial Competitiveness Index (PCI). Before
2012, the Provincial Competitiveness Index of Thai Nguyen was only passable. However, since
2012, the Provincial Competitiveness Index of Thai Nguyen has had got a marked increase and
has ranked higher. The significantly increase of PCI in recent years (ranked 57 in 2011, ranked 17
in 2012 and ranked 7 in 2015) has created a huge impression on investors and has contributed in

increasing investment attractiveness of the province. This achievement has been derived from the


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strategy to improve PCI of the province. Since then, the province has created the synergy of the
whole political system to find solutions to reform administrative procedures improve the
investment environment, the production environment and business environment for enterprises,
enhance PCI right in 2012 and in the following years.
(3). The study has described and analyzed some of the characteristics and
organizational structure of the Industrial Zone Management Authority. The contribution of the
Management Authority was also analyzed, such as being active to timely grasp the difficult
time incurred during the process of production and business investment of enterprises,
providing materials and regulation documents on mechanism and investment preferential
policies; implementing well the investment promotion activities; concentrating on inspecting,
supervising and handling violations, etc. These have contributed greatly in improving the
investment environment of Thai Nguyen province in general and the industrial zones in
particular, have increased the attractiveness to domestic and foreign investors in order to
increase the attraction of investment projects in the industrial zones of the province. However,
the industrial zone management authority has encountered some difficulties in some activities,
such as the investment promotion to the industrial zones has been not effective, focused
resources for the compensation for ground clearance and synchronous infrastructure creation
in the industrial zones are limited, etc.; Overlaps and inconsistencies in the legal system
related to the development of the industrial zones; the planning and management planning
have many problems; Legal system related to the state management on planning - building in
the industrial zone have been not clear; Sense of observance the law related to investment,
production and business activities of some enterprises in industrial zones have been not good.
(4). The investment policies of Thai Nguyen province and the investment preferential
policies in the industrial zones of the province are important conditions for attracting
investment, are one of the first concerns of the investors before they decide to or not to invest
in the industrial zones in the province. After collecting secondary document from the

industrial zone management authority, the author has found that besides applying preferential
policies to attract investment to the province under Decision No. 41/2012/QD-UBND dated
11/15/2012 of People's Council of Thai Nguyen Province about promulgating Regulations on
policies of the incentive and support for investment in Thai Nguyen province, the province's
industrial zones have applied some other preferential policies. The industrial zones have
applied some investment preferential policies of their own, such as: Decision No.
3296/2000/QD-UB of Thai Nguyen People's Committee dated 13/10/2000 (for Song Cong I
and II IZ); Decision No. 08/2013/QD-UBND of Thai Nguyen People's Committee dated
12/06/2013 on the issuance of investment incentives for project of Thai Nguyen Samsung


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high-tech combination of Thai Nguyen Vietnam Samsung Electronics Co., Ltd., project of
manufacturing of microprocessors and integrated circuits of Samsung Electro - Mechanics
Co., Ltd. and 02 high-tech projects of the two subsidiaries of Samsung Group in Yen Binh
industrial zone (for Yen Binh IZ); etc.
(5). To assess the state of the factors affecting the satisfaction of investors, the study
has analyzed and evaluated the characteristics of technical infrastructure and service
infrastructure of the industrial zones in Thai Nguyen province. In 6 of the industrial zones in
the province, Quyet Thang industrial zone and Song Cong 2 industrial zone have not been
constructed the infrastructure yet. Meanwhile, Song Cong 1 industrial zone, Diem Thuy
industrial zone, Nam Pho Yen industrial zone and Yen Binh industrial zone have constructed
technical infrastructure and service infrastructure. In particular, Yen Binh industrial zone has
good infrastructure, ensures well for enterprises to make production and business activities.
Song Cong 1 industrial zone and Diem Thuy industrial zone have had the synchronized
technical infrastructure which has been basically suitable for the business and production
activities of enterprises. However, these two industrial zones have not had got full service
infrastructure for enterprises. Nam Pho Yen industrial zone is the industrial zone which has
least attractive infrastructure among the industrial zones in the province, because lots of items
in the technical infrastructure have not been synchronized. The study also pointed out a

situation in which many enterprises in the industrial zones are currently using the services
providers outside the industrial zones because this industrial zone lacks of services providers
or don't meet the demand of enterprises on those services. However, basically enterprises
have met their demand on the services because they can access the service providers in the
neighborhood areas without spending too much cost and time.
(6). The study analyzed and assessed the situation of attracting investment in industrial
zones in Thai Nguyen province through the data on the occupancy rate of the industrial zones,
the number of investment projects and total registered capital on the industrial zones in the
period of 2013 - 2015, specially made in-depth analysis on FDI.
Overall, occupancy rate in the area planning of industrial zones in Thai Nguyen
province has been not high. Up to 12/2015, among 4 industrial zones in operation, Diem Thuy
industrial zone has had the highest occupancy rate (65%), followed by Yen Binh industrial zone
(60.71%), Song Cong 1 industrial zone has the occupancy rate of 50% (Ranking 3 rd), and Nam
Pho Yen industrial zone has the lowest occupancy rate (39.7%). Song Cong 2 industrial zone
and Quyet Thang industrial zone have not been in operation. Their occupancy rates have been 0.
After collecting, synthesizing, analyzing secondary data on investment in the industrial
zone in the province in the period of 2013 - 2015, the study has shown results of attracting


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investment. In terms of the total number of investment projects in industrial zones in Thai
Nguyen province, it has the increase in the past three years of the period of 2013 - 2015. In
terms of the number of investment registered capital, this number of capital was

VND

4,560.6195 billion in 2015 (decreased by 93.23% compared to 2014). This dramatic reduction
was due to the reduction of FDI in the industrial zones in 2015 ( VND 4,083.5795 billion,
decreased 93.9% compared to 2014). The domestic capital investment in industrial zones in
Thai Nguyen province in recent years is mostly from limited liability companies and joint stock

companies in Vietnam. Yen Binh industrial zone, in 2014 and 2015, had not attracted anymore
of domestic investment projects. The domestic investment project in 2015 was only in Song
Cong 1 industrial zone and Diem Thuy industrial zone. FDI capital resources always play a key
role in investment capital in industrial zones in Thai Nguyen province (greater than 85% in the
years of 2013 to 2015).
The study has shown that most of the domestic investment projects in industrial zones in
Thai Nguyen province in recent years are in the field of processing - manufacturing industry
(58.33% of the total project in the period of 2013-2015). However, compared to the inflows of
FDI into the Processing - manufacturing industry sector in the industrial zones in the province,
the number of domestic investment has been really tiny. Foreign investors in recent years of
Thai Nguyen province have particularly interested in investing in the field of electronics
industry and the production of auxiliary components for electronic devices.
About FDI capital resources in the industrial zones, investors were from the countries
such as Korea, China and Japan (mostly from Korea). Percentage of investment capital from
Korea in the total of FDI investment capital in the industrial zones of the province in 2013, 2014
and 2015, respectively were 99.6%, 99.65% and 76.68%.
(7). To determine the factors affecting the satisfaction of investors in industrial
zones in Thai Nguyen province, the author and her partners have conducted a survey of
246 investors holding management positions in 82 enterprises in operation in the
industrial zones in the province by the questionnaire. The number of valid questionnaires
collected has been 236. Based on primary information collected from the questionnaires,
the author has compiled and analyzed the survey samples (236 respondents) based on the
criteria of gender, work position, number of years of work experience. The study has also
synthesized, analyzed some general characteristics of the 82 enterprises in operation in
the industrial zones, such as the location of the enterprise, type of enterprises (enterprises
with 100% foreign capital account for 60.98%, enterprises with 100% domestic capital
account for 39.02%), Business categories (enterprises operating in the sector of
manufacture and processing account for 93.9%, enterprises operating in the service sector

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account for 3.66%, enterprises in the field of Construction account for 2.44%), the
number of operation years of enterprises, their capital investment and number of
employees. Through the collection of information on employee scale and capital scale of
the surveyed enterprises, the study has found that the majority of businesses in operation
in the industrial zones of the province are enterprises of small and medium scales, and the
proportion of FDI enterprises in the total enterprises was more than 60%.
(8). The study has entered the data on satisfaction levels of 236 investors on the
industrial zones under 5-point Likert scale into SPSS 20.0 software. Through the processing
steps in SPSS, the study has showed the average value of the evaluation of the investors of
each items and their standard deviation. Before putting 6 scales (TAN, REL, RES, ASS, EMP
and SAT) with 42 observed variables into exploration factor analysis model, the study had
tested the quality of these scales and had eliminated 4 observed variables of RES scale. The
study has carried out exploration factor analysis for the scales (independent variables)
including TAN, REL, RES, ASS, EMP. The analysis result showed the KMO coefficient
equal to 0.831, and Bartlett test had statistical significant of 0.0000, which meaned that the
exploratory factor analysis model was suitable for real data, and observed variables were
correlated linearly with the representative factors. EFA analysis results also showed that there
were 6 elements extracted at Eigenvalue of 1,076, Eigenvalue of these 6 elements had the
value of more than 1, therefore the number of factors that had been identified is 6. Besides,
the total variance extracted is 62.722% (greater than 50%). This meaned that 62.722% change
of the factors explained by the observed variables (the items). Based on the results shown in
Rotated Component Matrix Table, the study has shown that there were six factors that
represent the issues affect the satisfaction of investors with the observed variables of factors
arranged differently from initial theoretical models, namely: F_ABI; F_TAN; F_RES;
F_UND; F_EMP; F_CRE. The results of exploratory factor analysis for the dependent
variable (SAT) showed the KMO coefficient equal to 0.712 satisfying the conditions of
0 the exploratory factor analysis model was appropriate with the actual data, and the observed
variables were correlated linearly with the representative factors. The results of EFA for SAT

scale showed one factor extracted at the Eigenvalue of 2.225, the total variance extracted was
74.152% (greater than 50%). This means that 74.152% change of SAT scale was explained by
the observed variables (the items). Factor formed was named F_SAT, included three observed
variables (items) that were SAT1, SAT2 and SAT3. Thus, through the quality test of scales
and the test of EFA model, the study had identified 6 scales representing the factors affecting


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the satisfaction of investors (independent variables), and 1 scale representing the satisfaction
of investors (dependent variable). The 7 scales included 25 observed variables (items).
To identify the factors that actually affect the satisfaction of investors in industrial
zones in Thai Nguyen province, the authors has conducted a multivariate regression analysis,
in which the dependent variable was F_SAT, and the independent variables included: F_ABI,
F_TAN, F_RES, F_UND, F_EMP, F_CRE. Results of regression analysis has shown that
F_TAN and F_ABI had the significant correlation with F_SAT with the 99% confidence
level, the F_RES variable have a significant correlation with the F_SAT with the 90%
confidence level. Meanwhile, F_UND, F_EMP and F_CRE do not have the significant
correlation with F_SAT with the 90% confidence level . The results of the model analysis also
have shown that 52.4% of the change in the satisfaction of investors was explained by the
independent variables of the model, and the model given was appropriate with the actual data.
In other words, the independent variables were correlated linearly with the dependent
variables with the 99% confidence level. The analysis results have shown that there was no
multicollinearity phenomenon and no autocorrelation phenomenon between the residuals in
the model, the model was significant.
After completing the analysis and test steps, the study has discussed the regression
results. The unstandardized regression coefficients (B) of the independent variables (affecting
factors): F_ABI, F_TAN, F_RES respectively were 0.648, 0.262, 0.089 (all greater than 0)
prove that these independent variables (affecting factors) have the directly proportional
relationship with the dependent variable (the satisfaction of investors). Therefore, the
regression model was of the form: F_SAT = 0.013 + 0.648 F_ABI + 0.262 F_TAN + 0.089

F_RES. Meanwhile, the standardized regression coefficient (Beta) indicated the influence
imortance of the independent variables. In details, the results has shown that F_ABI (Service
Ability) contributed 63.43%, F_TAN variable (Tangibles) contributed 26.52 %, and F_RES
variable (Responsiveness) contributed 10.05% of the change of the level of investors'
satisfaction. Thus, it can be stated that the factors affecting the satisfaction of investors in
industrial zones in Thai Nguyen province in order of importance from high to low was F_ABI
(Service Ability), F_TAN (Tangibles) and F_RES (Responsiveness). Specifically, the issues
have positive impacts (directly proportional impacts) to the satisfaction of investors in
industrial zones in Thai Nguyen province, included: (1) Compliance of Commitments with
investors of the industrial zone management authority; (2) The clear and accurate consultation
of the industrial zone management authority; (3) The clear and consistent guides of
administrative procedures by the industrial zone management authority; (4) Sending the
feedback punctually about administrative procedures of the industrial zone management


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authority; (5) The good qualification and attitude of service staffs of State investment
management organizations of Thai Nguyen province; (6) The good qualification and attitude
of service staffs of the industrial zone management authority; (7) The interest in solving of
recommendations and requirements of enterprises in the industrial zone management
authority; (8) The reasonability of electricity price; (9) Good internal transport system and
green space; (10) The convenience of communication system; (11) Good internal lighting
system; (12) The attraction of investment preferential policies; (13) The rapid deployment of
legal documents to the investors; (14) The good assurance of security and order in industrial
zones; (15) The qualification of labors in enterprises.
Conclusion
After more than 15 years of establishment and development, the industrial zones in
Thai Nguyen province has made great success and contributed significantly to the socioeconomic development of Thai Nguyen province. Currently, Thai Nguyen has 6 industrial
zones, but only 4 of them are in operation, including: Song Cong 1, Diem Thuy, Yen Binh,
South Pho Yen. As of the end of 2015, these industrial zones have attracted 133 investment

projects including 61 FDI projects with registered investment capital of USD 7 billion and 72
domestic investment projects with registered investment capital of VND 11,000 billion. In
May 2016, the industrial zones in the province have 82 enterprises operating, including 50
FDI enterprises and 32 domestic enterprises. The significant progress in attracting investment
in the province from 2012 to now is mainly due to the good improved investment
environment of the province as well as the increase in competitiveness of the province to
appeal the investors. However, the industrial zones in Thai Nguyen province has fully
untapped all potential, and do not have enough good conditions to really attract investors,
especially foreign investors. This is reflected in the low occupancy rate of the industrial
zones. Therefore, in order to be able to find the cause of the less attractiveness to investors as
well as their satisfaction in the industrial zones in Thai Nguyen province, the implementation
of survey, analysis, evaluation and exploration of the factors affecting the satisfaction of
investors in the industrial zones of the province are necessary. This study collected, analyzed
and evaluated the secondary information in the Industrial Zone Management Authority, as
well as surveyed 82 enterprises operating by interviewing 236 investors. After collecting the
primary information from enterprises, the author has processed and analyzed the data by using
SPSS 20.0 software. The results of the exploratory factor analysis and the multiple regression
analysis have shown the factors really affecting the satisfaction of investors in the industrial
zones of Thai Nguyen province.


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Recommendations
Based on study results and the analysis of the factors affecting the satisfaction of
investors in industrial zones in Thai Nguyen province, the author has identified three groups
of factors that actually have an impact on satisfaction of investors, specially they are directly
proportional to the investor satisfaction. These three factors affect the satisfaction of investors
in order of importance from high to low is F_ABI (Service Ability), F_TAN (Tangibles) and
F_RES (Responsiveness). Besides, based on statistical results describing the observed
variables (Table 4.12 and 4.13), the study has found that factors of Service capacity and

assurance are assessed to be at satisfaction level by the investors, Tangible means factor is
assessed to be at a neutral level (neither satisfied nor dissatisfied), it shows that this factor
needs to be improved much more for the investors to feel satisfied more.
From the results of the study on the status of investment in the industrial zones in Thai
Nguyen province with the finding of the drawbacks existing in this work over past years that
are reflected clearly in the low occupancy rate of the industrial zones, along with the studying
and analyzing the factors affecting the satisfaction of investors in these industrial zones, the
author has found out the need for effective measures to increase satisfaction of investors in the
industrial zones in Thai Nguyen province, by which would improve the investment
environment of the province and of the industrial zones, and make industrial zones in the
province more attractive to investors, attract more domestic and foreign investment projects
into the industrial zones in the coming years. These solutions would focus on improving the
factors affecting satisfaction of the investors, since according to the result of quantitative
research in multivariate regression models, if the factors of Service Ability, Tangibles and
Responsiveness of industrial zones are improved, the satisfaction of investors will increase.
Therefore, the study proposed some following recommendations:
Firstly, the top concern of investors in industrial zones in Thai Nguyen province is the
service ability of the Industrial Zone Management Authority and of the State management
agency on investment of Thai Nguyen province. This capacity is shown in meeting the
requirements of investors on the following aspects: Compliance with commitments to
investors; Clear and consistent guidelines on administrative procedures; Clear and precise
consulting to investors; Sending feedback on administrative procedures on time;
Qualifications and service attitude of staff of the management authority and of State
management agencies; The interest in solving the recommendations and requirements of the
enterprises. To meet these requirements, it needs to take interest the following issues:
- The Industrial Zone Management Authority, People's Committee and relevant
departments and agencies should continue to consistently implement its commitments to


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investors. Mr. Hoang Thai Cuong - Director of Thai Nguyen Department of Planning and
Investment has confirmed that "Thai Nguyen commits to create the best and most effective
investment and business environments for enterprises to continue to accompany the provincial
in implementing the target that is to make Thai Nguyen province become an industrial
province following modern way, be the center of Midland and Northern mountainous area in
terms of development of industry and services, especially education - training service by
2020". Besides, the commitment of investment incentives promulgated by Thai Nguyen
People's committee to the projects invested in the industrial zones will be sure to implement
rightly. The right implementation of the commitments to the investors is extremely important
in ensuring the confidence of investors in Thai Nguyen province in general and the industrial
zones in particular.
- The Industrial Zone Management Authority, People's Committee and relevant
departments and agencies should continue to promote the reform of administrative procedures,
specifically: Continuing the reform of administrative procedures in the type of one-stop-shop,
inter-agency one-stop shop ; Putting much efforts on reforming administrative procedures
implementation process towards simplicity to shorten the time related to administrative
management, ensuring the time; Administrative reform to ensure synchronization, consistency,
clarity in mechanisms and policies. To achieve this, there is a need of: Researching, reviewing
and adding the contents of unsynchronized, inconsistent mechanisms and policies, and unclear
regulations; Amending, adding, replacing, cancelling, annulling the inappropriate regulations on
administrative procedures that are under the jurisdiction of the provincial People's Committee;
Improving accountability of heads of agencies, units and awareness, responsibility and ethical
behavior of civil servants and officials in resolving the administrative procedures for
organizations, enterprises and citizens, etc.
- The Industrial Zone Management Authority, People's Committee and relevant
departments and agencies should thoroughly grasp the officers and staff at these offices with the
perspective "considering businesses as partners and customers", so they need to try to serve these
customers or businesses in the best way. Serving capacity of the staff is reflected in various tasks
such as: Giving guidelines for administrative procedures, giving consultancy to investors,
ensuring to give feedback to investors timely, and their qualifications and service attitude, etc.

These are very important tasks that affect the satisfaction of investors. Therefore, the officers and
staff need to regularly study the expertise in order to meet the job requirements. The Industrial
Zone Management Authority and the relevant state management agencies should regularly
organize the training for employees on skills of communicating with partners and enterprises;


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organize the observation and evaluation of the quality of works, deals and service attitude of staffs
to enterprises or partners in order to take timely corrective, etc.
- Industrial Zone Management Authority in Thai Nguyen should promote and more
regularly make dialogues with enterprises, be in close coordination with the relevant
authorities in the province and the central ministries to solve the problems and difficulties of
enterprises in the industrial zones. Specifically, the management authority may hold a regular
dialogue with enterprises in the industrial zones once a month to listen to the difficulties of
these enterprises on issues related to policies and legal system on investment, labor, and
environment, etc. Based on that basis, the Management Authority will aggregate, analyze,
assess, respond and answer to enterprises. In case of problems arising from the fact of the
policies and legal system related to production and business investment in the industrial zone
management boards is discovered, the management authority should submit proposals and
recommendations for issues that are beyond their competence to state management agencies
of higher level in order to make amendments and supplements to suit the requirements of the
real situation.
Secondly, the conditions related to technical infrastructure in the industrial zones in
Thai Nguyen province are interested by investors because they are the conditions ensuring
production and business activities of these enterprises. This study points out the aspects of
economic social - technical infrastructure that affect the satisfaction of investors, including:
Communications systems; Internal transport systems; Greeneries system; Lighting systems
and Electricity prices. Currently, 4 industrial zones in operation in Thai Nguyen province has
essentially ensured this technical infrastructure, however, there are still some drawbacks such
as the unsynchronized system of transportation, communications, electricity, water supply in

Nam Pho Yen industrial zone. Moreover, this infrastructure of Quyet Thang industrial zone
and Song Cong 2 industrial zone has not been done yet. Besides, there are some business in
Nam Pho Yen industrial zone that are still using the electricity system for daily life of the
local population, so their electricity price is higher in comparison with the price of electricity
system in the industrial zones. These enterprises have recommended to the Industrial Zone
Management Authority to let them use electricity system in the industrial zone, but their
recommendations have not been met yet. Therefore, in order to continue to improve technical
infrastructure and make investors even more satisfied, the Industrial Zone Management
Authority should have effective solutions.
- Continuing and enhancing the urge and request to investors to deploy to build and develop
the infrastructure system synchronously in industrial zones; Recommending the handling of
withdrawing the infrastructure that are in delayed deployment or enable to be deployed.


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- Focusing all resources that can be mobilized as capital support mobilization with
target from central budget, loans from the Ministry of Finance, provincial capital budget,
capital advanced by the construction contractor and capital advanced by secondary investors,
in order to invest in the construction of infrastructure in the industrial zones synchronously
with social infrastructure outside the industrial zone which is invested to be more modern.
Especially continuing the organizing to implement the mechanism "allowing investors to act
and use money of land-leasing with infrastructure that is advanced one time for the purpose of
making the compensation for ground clearance and building synchronized infrastructure in
order to attract investment"; Giving priority to invest in electricity supply, water supply,
wastewater, communication system and lighting system setting, internal traffic system
completing and enhancing, greeneries growing; environmental sanitation, service system and
welfare construction developing in order to meet the demands from investors, professionals,
workers in the industrial zones.
- Ensuring 100% of enterprises in industrial zones to be able to use power network
provided by the industrial zones, the purpose of this is to provide these enterprises with a

production and business serving power system which is more stable and costs less.
- Doing well the work of the compensation for ground clearance in the industrial zones
to create many empty land areas attracting investors. In order to do this work well, the
industrial zone management authority should make collaboration with concerned functional
departments and agencies concerned in conducting a review, supplement and perfecting the
mechanisms and policies on compensation for ground clearance, besides, the industrial zone
management authority should actively advocate the citizen, and speed up compensation and
assistance, and hand over the land.
- Timely resolving any questions and proposals of the enterprises on the economic and
technical infrastructure in the industrial zones to create the best conditions for production and
business activities of these enterprises.
Thirdly, investors coming to the industrial zones are also concerned about the security
of these industrial zones, in which they are particularly concerned about the investment
preferential policies, security and order assurance in industrial zones, the assurance of the
access ability to the legal documents quickly, and skills of labor force who they can recruit.
Survey results made on investors shows that they have not been satisfied with the issues
above. Therefore, this study would suggest a number of solutions for the Industrial Zone
Management Authority and the State management agencies that have related functions to
implement in order to enhance the satisfaction of investors on these aspects. In details:


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- To enhance the satisfaction of investors on the investment preferential policies of
Thai Nguyen and investment preferential policies in the industrial zones in the province, as
well as for the industrial zones to have more attractive policies for potential investors in the future,
the Industrial Zone Management Authority should collaborate with People's Committee and
Department of Planning and Investment of the province in organizing seminars for investors or
making surveys to gather opinions and assessments of the investors on these policies. On the basis
of the gathered information, the authorities will study in conjunction with the current provisions of
the investment preferential policies of the Government and the actual socio-economic situation of

the locality to conduct reviewing, developing and completing the mechanisms and investment
preferential policies of Thai Nguyen province, as well as investment preferential policies in the
industrial zones in the province.
- For investors in the industrial zones, the assurance of security and order in the
industrial zones is one of the basic conditions which are claimed to be exist. Although the
situation of security and order in industrial zones are pretty good, sometimes there are still a
number of incidents such as theft, robbery, violation of the declaration and business
registration procedures work, not making commitments on ensuring security and order in the
areas around the industrial zones. Therefore the Industrial Zone Management Authority and
the police force of the province and the locality need to have effective measures to ensure a
better security and order in industrial zones. Details as follows:
+ The Industrial Zone Management Authority needs: To coordinate with the
provincial police in directing enterprises in the industrial zones to deploy the work of
launching a mass movement of national security in order to make propaganda of educating
staff and employees of enterprises in the industrial zones to raise sense of vigilance to all plots
and quackery of enemies, and all types of crime; To direct enterprises in the industrial zones
to plan initiative safety protection of persons and property, state secrets, fire prevention,
environmental protection, etc. to build secure units on order and security; to care about
creating the mass movement of national security; To coordinate with local authorities and
police forces in the fight to prevent and combat crime and social evils in the industrial zones;
To advocate businesses in the industrial zones to provide funding support for the work of
security, order in the industrial zones.
+ Provincial police forces and local authorities need: To organize the work of
controlling the situation related to security, order, production and business activities of
enterprises in industrial zones; To deploy the plans to ensure security and order, and fight all
kinds of crime and social evils in industrial zones; To make good management of these types
of objects in the area, to fight and destroy criminal groups operating in industrial zones such


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as property theft, social evils, especially drug-related crime, criminals in the type of
"gangster" in industrial zones; To give manual in testing of the fire prevention and fighting,
the registration of temporary residence; activities of exiting and entry of foreigners in the
industrial zones.
- The qualification of the employees in enterprises always gets lots of concern from
investors and is expect to be as high as possible. However, currently, the real situation of
quality Vietnamese labor force has had the problem in which lots of labors do not meet the
requirement of enterprises after being trained, therefore many enterprises, especially the
enterprises with foreign capital do not want to recruit these labors, and they train their labors
by themselves. Therefore, the Industrial Zones Management Authority and State management
agencies should find out measures to overcome this situation. In more details:
+ Encouraging the formation and development of professional educational institutions,
vocational training centers and upgrading existing vocational schools in the province based on
the model "Schools in enterprises", which are schools coming out from enterprises and
schools associated with enterprises. The schools need to develop models of combining
theoretical learning with practical learning. The partners of the schools are enterprises in the
industrial zones or enterprises in the province.The schools should create the links with schools
of Korea, Japan, ... in order to educate, and help students to communicate, make research,
practice the work that suit their major. These students will be the main source of qualified
labor workers who can meet the requirements of businesses in the industrial zones in
particular and Thai Nguyen province in general.
+ Completing policies to attract workers with good technical capacity to work in
enterprises in industrial zones in Thai Nguyen after being trained in vocational schools, or
universities, or college. Besides, in order to attract this well-qualified labor force, the housing
policy and working environment for workers in the industrial zones must be ensured.
Therefore, the Industrial Zone Management Authority should coordinate with the relevant
authorities in carrying out the planning and construction of housing for workers in Song Cong
1 industrial zone and Nam Pho Yen industrial zone, continuing to deploy housing project for
workers in Diem Thuy industrial zone in the coming time in order to ensure housing for
workers as well as attract well-qualified labors. At the same time, so as to build a good

working environment for workers in industrial zones, the industrial zone management
authority should guide enterprises to strictly implement the provisions of the standard
workplace environment in which factors affecting the health of workers are minimized.
Regularly check the implementation of the business regulations. At the same time, urge the
trade union organizations in enterprises, require enterprises to comply with labor agreements


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well, build harmonious relationship between employers and employees, create friendly
environments to employees. Good working environment would be the basis for workers to
work with peaceful in mind, as well as a way of attracting well-qualified workers.
- Regarding the issue of accessing to legal documents, enterprises in industrial zones
in Thai Nguyen are not really satisfied. One of effective and quick approaching ways is to see
legal documents on the website of the industrial zone management authority. However, the
legal documents in legal document system posted are focusing mainly on traffic, transport,
motor without documents of investment or preferential policies to support businesses in the
province or in the industrial zones. Besides, the website of the industrial zone management
authority in Thai Nguyen has no English version. This is a major constraint and a major
obstacle for foreign investors who want to access and search for information and legal
documents on this website. To overcome these limitations, the Industrial Zone Management
Authority needs to update, publish the current legal documents with the content of supporting
investors and business in the work of studying the investment environment of Thai Nguyen as
well as of industrial zones in Thai Nguyen, and in the work of production and business,
exporting and importing, ... on the website, eg: investment Law No. 67/2014/QH13, Decision
No. 08/2013/QD-UBND on issuing investment incentives for Sam Sung Thai Nguyen hightech complex project of Samsung Electronics Vietnam Thai Nguyen Co., Ltd., and two highteach projects of 2 subsidiaries belongs to Samsung in Yen Binh industrial zone, Thai Nguyen
province, Samsung Thai Nguyen Hi-tech Complex project of Samsung Electronics Vietnam
Thai Nguyen Ltd Company (SEVT), project Producing microprocessors and integrated
circuits

of Samsung

Electro-Mechanics Co.,

Ltd.,

project

of

manufacturing of

microprocessors and integrated circuits of Samsung Electro-Mechanics Co., Ltd. and 02 hightech projects of the two subsidiaries of Samsung in Yen Binh industrial zone of Thai Nguyen
Province; Decision 41/2012/QD-UBND on issuing regulations on investment incentives
policies in Thai Nguyen province, the Law on Export and Import Duties (No.
107/2016/QH13), ... In addition, the industrial zone management authority needs to create an
English language version of the website of the management authority in order to serve foreign
people, especially for foreign investors who are interested the industrial zones in the province.