VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES
-----------------------------
NGUYEN MANH TUAN
IMPROVING COMPETITIVENESS OF
VIETNAM
AIRPORT PORT CORPORATION TILL 2030
Branch: Economic management
Code: 9.34.04.10
SUMMARY OF THE DISSERTATION TO BE ECONOMIC
HANOI – 2019
Works completed at
VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES
Science instructor:
1.Associate Professor,PhD: Do Linh Hiep.
2. PhD: Vu Dinh Anh
Reviewer 1:
Reviewer 2:
Reviewer 3:
The thesis will be defended at the Academy-level Dissertation
Committee at: Social Sciences Academy, 477 Nguyen Trai, Thanh
Xuan, Hanoi, at: hour, day: month: 2019
Can find the thesis at:
Library of Social Sciences Academy.
National Library of Vietnam
PREAMBLE
1. The urgency of the topic
Globalization continues to develop, globalization issues are more complex
than before, economic links are increasingly expanding, flexible and
unpredictable. The process of forming new generation of free trade areas
has been accelerated in almost all regions of the world, especially Asia Pacific. In the coming period, Vietnam's international integration process is
more and more extensive and comprehensive, in addition to opening up
many opportunities for development but also posing great challenges in the
domestic market and competition. International such as implementing free
trade agreements, fulfilling commitments to join the World Trade
Organization (WTO), commitments to high standards in Free Trade
Agreements (FTAs) New generation ... Therefore, to fully and clearly
assess the competitiveness of enterprises in general and Vietnam airport
enterprises
in
particular
to
propose
solutions
to
improve
the
competitiveness of they are necessary in the integration process.
Aviation is an important economic sector, the study of the
competitiveness of aviation port enterprises aims to meet the demand of
improving competitiveness in the global trend, competition is increasingly
fierce. now on.
After 30 years of reforming the aviation industry in Vietnam, there has
been a rapid development and deepening international integration,
including the port system and airport services, but the development is still
not commensurate with the potential and also inferior to the regional
airports such as Singapore Changi - Kuala Lampur - Malaysia, Bangkok Thailand ... One of the reasons for limiting the development is the limited
1
quality of service, development environment. Air services are not really
competitive, so the competitiveness of the port system and airport services
is not high ...
Therefore,
the
researcher
selects
the
topic
"IMPROVING
COMPETITIVENESS OF VIETNAM AIRPORT PORT TO 2030" as his
research topic.
2. Objectives and research tasks of the thesis
General objectives: Clarify the theoretical basis and practice of
development and competitiveness of Vietnam airports; development status
and competitiveness of Vietnam airports, proposing orientations and
solutions to develop and improve the competitiveness of Vietnam's airports
until 2030.
Detail goal:
First, Which factors affect the competitiveness of Vietnam Airport
Corporation?
Secondly, Assessing the competitiveness of Vietnam Airport Corporation
by what criteria?
Third, What is the status of Vietnam Airport Corporation in the context of
sky opening?
Fourth, What to do to improve the competitiveness of Vietnam Airport
Corporation until 2030.
Research tasks of the thesis
The thesis focuses on the following basic tasks
1. Explain the theoretical issues about the competitiveness of the aviation
industry and the airport enterprises. Which factors affect competitiveness of
Vietnam Airport Corporation.
2
2. Research on the competitiveness of airports in some countries. From
that, some experiences have been drawn for enhancing the competitiveness
of Vietnam Airport Corporation.
3. Analyze and evaluate the current state of competitiveness of Vietnam
Airport Corporation. Based on factors affecting ACV's competitiveness.
The thesis also builds and verifies the model of factors to improve
competitiveness for Vietnam Airport Corporation. From that, draw the
results achieved and limited causes and problems raised for ACV by 2030.
4. Proposing the perspective of direction and major solutions to improve
the competitiveness of Vietnam Airport Corporation until 2030.
3. Subjects and scope of research
Research subjects
Research objects: Competitiveness of Vietnam Airport Corporation.
Specifically, the thesis studies criteria to assess ACV's competitiveness,
factors affecting competitiveness in ACV's service provision.
Research objectives: Analyze and evaluate ACV's current competitiveness
and propose solutions to improve ACV's competitiveness to 2030.
Research scope
In terms of space: Research on enhancing the competitiveness of Vietnam
Airport Corporation
In terms of time: Analyze and evaluate the current situation of
competitiveness of Vietnam Airport Corporation in the period of 20122017 and propose solutions to 2030.
Scope of research: Mainly concentrated in Tan Son Nhat, Noi Bai and Da
Nang international airports. These are major and prestigious airports in the
Vietnamese economy and often compete with airports in the region.
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4. Methodology and research methods of the thesis
In order to achieve the set objectives and tasks, the thesis combines the
following research methods: analytical research methods, qualitative
research methods, quantitative methods, comparison methods, and
methods. data processing, integrated analytical methods.
5. New scientific contributions of the thesis
1. Clarify the rationale for development and competitiveness of
enterprises in the context of Vietnam's increasingly improved market
economy and globalization, increasingly fierce competition.
2. Clarify the development status and competitiveness of Vietnamese
airports, the causes and experience of withdrawal.
3. Propose orientations and solutions to promote the development and
improvement of the Competitive capability of Vietnam airports until
2030.
4. Research results can be used as a reference when developing the
development strategy of Vietnam Airport Corporation until 2030. At
the same time, it can be used as a teaching material for specialized
students of Airport Operations. at Vietnam Aviation Academy.
6.
Structure of the thesis
In addition to the introduction and conclusion, the thesis consists of 4
chapters,
Chapter 1
RESEARCH OVERVIEW ON COMPETITIVENESS AND
COMPETITIVENESS OF THE AVIATION INDUSTRY, AIR PORTS
1.1. Study abroad situation.
4
The "National Competitive Advantage" Michael E. Porter.
Book "Economic Benefits from Air Transport in Singapore"
“A study of the impact on the performance of Incheon International
Airport by implementing a quality management system”.
IC ICAO's curriculum studies the Jordan Queen Alia International Airport
(ICAO, OJAL, ATA: AMM) of Jordan.
1.2. Research situation in Vietnam
2003 In 2003, UNDP and CIEM researched "Improving national
competitiveness"
In 2004, author Tran Van Tung "Economic competition, national
competitive advantage and company's competitive strategy"
2006 In 2006, Dr. Vu Trong Lam - "Enhancing the competitiveness of
companies in the process of international economic integration."
2006 In 2006, Tran Suu
"Competitiveness of enterprises in the
condition of globalization"
2008 In 2008, Dr. Nguyen Huu Thang - "Competitiveness of
Vietnamese companies in the current trend of international economic
integration"
2010 In 2010, the Central Institute for Economic Management, Asian
Competitiveness
Institute
and
M.E.Porter
had
a
seminar
on
"Competitiveness Report 2010".
2012 In 2012, Dr. Pham Tat Thang - "Enhancing the competitiveness
of enterprises in international integration"
Economic doctoral dissertation: "The most important directions and
solutions - Business development services at airports of Vietnam" by
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Nguyen Huy Trang at Ha Noi National Economics and Economics
University Noi (2004).
Economic doctoral dissertation: "Developing human resources in
Vietnam aviation" by author Nguyen Thi Thanh Quy at the Vietnam
Academy of Social Sciences, Academy of Social Sciences (2015).
Economic doctoral dissertation: "Marketing policy for passenger
transport services for Vietnam Airlines in the context of international
airline alliance" by Dinh Quang Toan University of Transport (2015).
Economic doctoral dissertation: "Improving the system to ensure flight
activities in Vietnam" by author Bui Trong Chi, at the University of
Transport (2017).
Scientific research topic: "Studying solutions to improve the
competitiveness of Vietnam's civil aviation industry in the context of
international integration" by Dr. Dao Manh Nhuong, Vietnam Civil
Aviation Department Head of Staff (2000
1.3. Conclusion drawn from the research overview and the problem of
the thesis should continue to study
1.3.1. Unified points of competition in the airport sector
-
In
general,
domestic
and
international
research
projects
on
competitiveness at airports have come to agreement at some points:
About research theoretical framework: Most of the previous studies
mentioned and analyzed the competitiveness model of Michael E Poter.
Research methodology: Previous studies combined both qualitative and
quantitative research methods,
Regarding solutions proposed: Solutions to improve the competitiveness
of airports in each country have their own methods, The role of the
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Government in supporting airport enterprises to improve their capacity his
competition.
1.3.2. The points need to continue research on competition in the
field of airports.
- In addition to the agreed points mentioned above, some contents
continue to study:
- Criteria for evaluating competitiveness at airports.
- The change in airport business environment from the monopoly of the
State to other countries, competition after Vietnam joined WTO, CPTPP.
- Vietnam airport enterprises shifted from public utility to parent company
model of subsidiaries, which shows the role of the Government in
improving the competitiveness of Vietnam Airport Corporation. .
Adaptation and adaptation of Vietnam Airport Corporation with changes
in the environment.
Hướng Direction and solutions to improve the competitiveness of Vietnam
Airport Corporation.
Chapter 2
RATIONALE AND PRACTICE ON ABILITIES
COMPETITIVENESS AND COMPETITIVENESS
OF THE AIR PORT.
2.1. Reasoning on competitiveness.
2.1.1. Theory of competition
Traditional concept
Modern concept
2.1.2. Theory of competitive advantage
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Professor Michael E. Porter presents two famous works: Competitive
Advantage (1985) and National Competitive Advantage (1990)
2.1.3.The levels of competitiveness
Competitive advantage with comparative advantage
Competitive advantage with strategy, competitiveness, competitivenes
2.1.4.Theory of service quality
Service concept
Features of the service
Service quality concept
Service quality characteristics
2.1.5.Quality of service from customer perception
Model of evaluation of technical quality, functional quality and image of
Gronroos (1984)
- SERV SERVPERF model of Cronin and Taylor (1992)
2.1.6.Enhancing the competitiveness of customers
Customer satisfaction
The relationship between service quality and customer satisfaction
Models of measuring customer satisfaction
American Satisfaction Index (ACSI) model
European satisfaction index model (ECSI)
Quality model of SERVQUAL service
2.2.Competitiveness of airports.
2.2.1.Characteristics of services at airports
Basic service
Value added services
Air port service has high safety
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Products of airport services are regional in nature
2.2.2.Service characteristics at Vietnam Airport Corporation
Process of providing services at airports
Provide direct service
Sales for regular customers:
Service characteristics at airports
Large investment costs
Technology is an important factor
The level of competition in the industry is not high
People play an important role
The role of airports
Contribute to economic development of the country
Promoting economic and cultural activities in remote areas:
2.3.Competitiveness of services of airport enterprises
2.3.1.Service competitiveness of businesses
The concept of competitiveness of businesses
2.3.2. The necessity and role of enhancing service competitiveness of
Vietnam Airport Corporation.
- Firstly, improving competitiveness creates pressure to force aviation port
enterprises to regularly explore innovation, service process improvement
and organization of service provision management, technological
innovation.
-Secondly, for users of airport services, improving competitiveness creates
a constant pressure on prices, forcing businesses to lower service charges to
quickly sell. service
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-Thirdly, for the economy, improving the competitiveness of businesses in
services enlivens the economy.
- Fourthly, for external relations, improving competitiveness to promote
airports to expand markets to the region and the world.
2.4.Criteria for assessing competitiveness of Vietnam Airport
Corporation
2.4.1Quality of service
2.4.2. Service fee
2.4.3 Service distribution channel system
2.4.4. Service differences
2.4.5. Information and trade promotion
2.4.6. Brand and reputation of the service
2.5.Factors affecting service competitiveness of Vietnam airports
Corporation
2.5.1.External factors
2.5.1.1.Elements of macro environment
1- Political environment - law
2 - Socio-cultural environment
3- Economic environment
4- Technology environment
5- Natural environment
6- International environment
2.5.1.2.Elements of the aviation industry environment
1 - Pressure from customers
2 - Competitive pressure from potential competitors
3 - Competitive pressure from current competitors
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2.5.2.Internal factors
2.5.2.1. Financial capacity
2.5.2.2. Production capacity
2.5.2.3. Marketing
2.5.2.4. Research and development activities
2.5.2.5. Organization capacity and corporate governance
2.6.Experience in enhancing the competitiveness of services at airports
of some countries in the world.
2.6.1. Experience of improving the competitiveness of Singapore
Changi Airport
2.6.2. Experience of enhancing competitiveness of Incheon Korea
Airport
2.6.3. Experience of enhancing the competitiveness of Jordan's
Amman Queen Alia International Airport
2.6.4. Experience in improving competitiveness of Japanese Haned
International Airport
2.6.5. Lesson learned for Vietnam Airport Corporation
First: Infrastructure such as roads, traffic must be conveniently
connected with airports.
Second: Expanding public partnerships with flexible and effective
operation.
Third: Human resource training in aviation must be focused.
Wednesday: Improve service quality and customer service.
Fifth: Organize flexible management model.
Friday: Increasing investment in research and development.
Saturday: Updating and innovating technology.
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Eighth: Building corporate culture with its own identity
Ninth: Have a market development strategy
Chapter 3
CURRENT SITUATION OF COMPETITIVENESS AND CAPACITY
OF VIETNAM AIR PORT CORPORATION 2012-2017 PERIOD
3.1. Overview of service market of Vietnam Airport Corporation in
recent years
3.1.1. Overview of Vietnam Airport Corporation
- Airport and airport concept
- Legal status of airports
-The process of formation and development of Vietnam Airport
Corporation
3.1.2. Overview of the market of air transport at ACV
Table 3.1. Passenger output and cargo traffic
through ACV year 2012-2017
Calculation unit: 1000
TARGETS
Calculation
unit
Passenger
Guest
Goods
Ton
2012
2013
37.620 44.160.
654.
760.
2014
47.847.
869.
2015
2016
63.123 81.100 94.000
973.
1.121.
Source: Author's summary based on the 2012-2017 audit report
3.2.Current situation of criteria affecting competitiveness Vietnam
Airport Corporation.
-Quality of service
- Service fee
- Service distribution channel system
12
2017
1.338
-Service differences
- Information and trade promotion
- Brand and reputation of service
3.3.Current situation of factors affecting competitiveness of Vietnam
Airport Corporation.
- Political environment - law
Socio-cultural environment
Economic environment
Technology environment
Natural environment
International environment
Competitive pressure from current competitors
Pressure from organization and corporate governance
3.4.Overview of service competition of Vietnam Airport Corporation
with regional countries.
Figure 3.8: ACV passenger scale compared to regional airports in 2017
Source: 2017 annual reports of units, FPT Securities Research
13
Figure 3.9: ACV's revenue scale compared to regional airports in 2017
Source: 2017 annual reports of units, FPT Securities Research
Figure 3.10: ACV's international passenger rate is lower than the region
Source: 2017 annual reports of units, FPT Securities Research
Figure 3.11: ACV's non-aeronautical revenue per person is low in the
region in 2017
Source: 2017 annual reports of units, FPT Securities Research
14
Figure 3.12: ACV's international passenger service charge is high for the
region in 2017
Source: 2017 annual reports of units, FPT Securities Research
3.5.Testing models of competitive advantage factors for businesses
3.5.1. Qualitative research
- Design qualitative research
- Results of focus group discussion
- Scale development results
- Results of in-depth interviews
3.5.2.Quantitative research
- Study sample size
- Design of research samples
- Information about the research sample
- Preliminary assessment of the scale
- Scale test by linear regression analysis
Predict linear regression equation of the form
: HL = β1 TC + β2 DU + β3 HH + β4 DB + β5 CT
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In it: HL (Satisfaction), TC (Reliability), DU (Response), HH (Tangible
means), DB (Guarantee), CT (Sympathy).
Linear regression analysis
Passenger linear regression model The satisfaction of passengers is
shown in the following equation
HL = 0.386 TC + 0.319 DB + 0.208 CT + 0.148 DU + 0.125 HH
-Testing difference of research samples
Hypothesis: There are differences in airports for passenger Satisfaction
Hypothesis: there are gender differences in passenger Satisfaction
Hypothesis: there is a difference in age for passenger Satisfaction
Hypothesis: there are differences in flight times for passenger Satisfaction
Hypothesis: there is a difference in the purpose of flying for Passenger
Satisfaction
3.5.3. Discuss construction results and verify factors that create
competitive advantages for businesses
3.5.3.1 About factors that create a competitive advantage
1. There must be a master plan for airports and airports by 2030.
2. In the immediate future, to recover the land encroached on the airport
area in Vietnam.
3. Distinctly, the airports share the military and civilian use.
4. Must upgrade 03 airports of Noi Bai, Da Nang and Tan Son Nhat in
accordance with the development of society.
5. Regarding equipment, must meet the requirements of ICAO
6. The directions to and from the airport must be convenient.
7. Areas for seeing off and taking tourists must be clear, clear and suitable
to Vietnamese customs.
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8. About people must be trained and use modern equipment.
9. Regarding service style, must be quick to create favorable conditions for
customers.
10. Quickly resolve complaints of customers when carrying out procedures
for flying.
11. Quickly solve when customers' lost luggage.
12. On the inside of the station, there must be ventilation and
environmental factors focused.
13. Tax-free shops at airports must be upgraded and diversified products,
must be sold at lower prices than market prices, with high quality.
14. Increasing service areas need attention such as restaurants,
entertainment stalls, hotels need to be upgraded.
15. Diversify entertainment types in the airport area.
16. Create the difference of entertainment models at the airport.
17. Repair workshops in international airports must be fully equipped with
equipment for aircraft repair.
18. Spare parts warehouse is always ready to serve the repair of aircraft
operating at ACV.
19. The team of engineers and workers working in the workshop must be
really professional, creating satisfaction for customers.
20. Taking customers' benefits is ACV's mindfulness.
3.6. Overall assessment of the competitiveness of the Vietnam Air Port
Company in recent years
3.6.1. These achievements
Based on the assessment of the situation of ACV in the period of 20122017, we see that Vietnam's civil aviation industry, which is constituted by
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many different professional fields, including 3 main areas including:
transport operation air freight; exploiting airports and airports; ensuring
flight operations, being organized to operate in a unified and synchronous
system, subject to the State management of civil aviation by the Ministry of
Transport but directly the Vietnam Aviation Administration
The total capacity passed by Vietnamese airports from 6 million passengers
in 2000 has increased to 94 million passengers by 2017.
3.6.2. Limit
In terms of infrastructure development investment depending on the State
budget, complicated legal procedures affect the plan of implementing
investment in aviation infrastructure. On the other hand, the competition
situation in the field of aviation in the world is increasingly fierce, facilities
and technical technology of Vietnam aviation despite many efforts to
improve but still much slower than countries in the region. Besides, the
human resource for air transport industry is very much lacking. If not
renewed, Vietnam aviation will face many difficulties and it is very
difficult to compete..
3.6.3. Causes of restrictions
Due to the characteristics of the airport business sector mainly providing
services to passengers, customers go and arrive through airports, depending
on many factors, depending on the population, depending on economy,
political institutions, policies from the Government, all kinds of fees at the
airport. In other words, depending on the population density and income
level of the people.
Predictive analysis, investment in new technology equipment is also a
major barrier of ACV, depending on the State budget.
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ACV's staff has not been trained in a methodical manner, depending on
overseas schools, especially technical staff such as aircraft technicians, air
traffic controllers and flight coordinator.
In recent times, the war in the Middle East, epidemics and natural
disasters has also reduced the competitiveness of ACV.
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Chapter 4
ORIENTATIONS AND SOLUTIONS TO IMPROVE
COMPETITIVENESS OF VIETNAM AIRPORT PORT TO 2030
4.1. The international and domestic context affects competitiveness of
Vietnam Airport Corporation.
4.1.1.International context.
4.1.2. Domestic context.
4.1.3 Analysis of SWOT model of Vietnam Air Port Corporation
Table 4.1. SWOT matrix
STRENGTH
WEAKNESS
• ACV is the only unit managing and • Most of the service prices are
operating the entire system of 22 managed by the State.
• Operational efficiency between
civil aviation ports of Vietnam.
• The parent company system and its uneven airports: overloading at
subsidiaries and affiliates provide a major international airports while
full range of services at airports.
domestic airports operate at low
• ACV possesses a special asset class capacity.
with great value and is continuously •
Non-aviation
segment
invested and expanded, increasing performance is not commensurate
the number of international airports with development potential.
and Group A airports to improve the • Large Japanese debt, so financial
efficiency of exploitation.
income and financial costs are
• ACV has strong financial potential, sensitive
strong cash flow.
to
fluctuations
OPPORTUNITY
THREAT
20
exchange
rate
• Economic recovery and middle • The political and economic
class increase rapidly in Vietnam
situation in the world is still
• Vietnam tourism grew strongly, volatile.
averaging 21% per year.
• The weather situation is
• Free trade is boosted
increasingly complicated due to
•
Low-cost
aviation
has
great climate change.
potential for growth as the proportion • Investment activities must follow
of passengers using air routes in the regional development planning
Vietnam is still low.
of the State.
• Airlines that travel to and from • Disease
Vietnam expand their fleet and flight
routes.
• Infrastructure to connect to airports
is not improved
4.1.4. Issues set for Vietnam Airport Corporation under the competitive
perspective till 2030
4.1.4.1. International Airport.
4.1.4.2. Domestic airport ..
4.1.4.3 Other issues
4.1.5. Development direction of Vietnam Airport Corporation in the
coming time
4.1.5.1. Orientation of market development
4.1.5.2. Orientation for developing air traffic network
4.1.5.3. Orientation of service development
4.1.5.4. Orientation of technology development
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4.1.5.5. Orientation of planning and developing airports
4.1.6. The junta raises the competitiveness in providing services of
Vietnam Airport Corporation.
Firstly, innovating thinking, proactively creating, focusing on operating
with appropriate measures in each stage of development, which ensures
sustainable development.
Secondly, focus on renovating the organizational structure and
restructuring to promote the activeness of enterprises, adapt to the process
of technological innovation and service development.
Thirdly, enhance and improve the efficiency of investment activities to
improve the equipment technology level of ACV, considering it a
breakthrough to continue to maintain a competitive advantage ..
Fourth, respect the strategy of building and improving the quality of
human resources.
Fifth, expanding the relationship with regional and international airports.
4.2. Solutions to improve competitiveness in services of Vietnam
Airport Corporation.
4.2.1. Improve service quality
4.2.2. Market expansion and brand development of ACV
4.2.3. Complete the ACV organizational apparatus.
4.2.4. Improve service delivery process
4.2.5..Study, invest in developing new services at airports
4.2.6.
Enhance international cooperation.
4.2.7. Synchronization and standardization of management mechanisms,
financial regulations and network planning
4.3. Recommendations
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4.3.1. Recommendations to the Government
4.3.2. Recommendations to ministries
4.3.2.1.For the Ministry of Finance
4.3.2.2.For the State Bank of Vietnam
4.3.2.3. For Ministry of Transport
4.3.2.4. For Vietnam Airport Corporation
GENERAL CONCLUSION PART
ncreasing competitiveness is becoming increasingly important for
Vietnam's
aviation
industry
in
a
market
economy,
improving
competitiveness to achieve vital business efficiency for airport businesses.
Vietnam. During the research process, the author has tried to implement the
objectives set out in the contents of the thesis.
Systematically select and clarify the rationale, the main contents of
competitiveness applied in Vietnam airport business, on the basis of
analyzing each level of competition from that given Criteria and content
assess the competitiveness of airport enterprises.
Based on the actual survey at 03 Tan Son Nhat, Noi Bai, Da Nang airports,
and the use of other secondary sources, the thesis has fully evaluated the
reality of ACV's competitiveness. ACV's strengths, weaknesses, advantages
and disadvantages at the present time, from which to have appropriate
solutions. Research results of the thesis will be the basis for the State
management agency to have effective management and support measures
for ACV enterprises.
On the basis of the theoretical system and practical situation, the thesis
has clarified 03 key points of development and enhancement of airport
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