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MINISTRY OF EDUCATION AND TRAINING
MINISTRY OF PLANNING AND INVESTMENT
Development Strategy Institute

DAO TRUONG THANH

MAIN FACTORS AFFECTING COMPETITIVENESS
OF SMALL AND MEDIUM ENTERPRISES
IN VINH PHUC PROVINCE

Field

: Economic development

Code

: 9 31 01 05

SUMMARY OF THE DOCTORAL THESIS ON
ECONOMIC DEVELOPMENT

HANOI - 2019


The thesis is completed at:
DEVELOPMENT STRATEGY INSTITUTE

Instructors:
1. Assoc. Prof., Dr. Le Xuan Ba
2. Assoc. Prof., Dr. Vu Thanh Son

Reviewer 1 : Prof., Dr. Ngo Thang Loi
Reviewer 2: Assoc. Prof., Dr. Nguyen Chien Thang
Reviewer 3: Assoc. Prof., Dr. Ngo Quang Minh

The thesis is presented at the Doctoral Dissertation Council
Development Strategy Institute
At ...... on... date .... month ... 2019

Thesis can be found at:
1. The National Library, Hanoi
2. The Library of Development Strategy Institute,
Ministry of Planning and Investment


PREAMBLE
1. Urgency of the topic:
Today, international integration has become an indispensable,
objective trend, taking place strongly in all areas of the social life,
especially in the socio-economic development. International integration
creates large and rich markets and difficulties for businesses;
Competitiveness needs to be stronger and more drastic, especially for
small and medium enterprises.
Currently, small and medium enterprises in Vinh Phuc province face
many major challenges in business activities, especially in terms of
product consumption and capital mobilization for development. On the
other hand, small and medium enterprises have many limitations: Quality
and efficiency of production and business activities are still very low; less
developed technology qualification; poor creative capacity, labor
productivity; Cooperation, affiliation, joint venture between enterprises is
still limited, weak, ... From requirements and demands of practice,

research and assessment of the situation to propose solutions to improve
the competitiveness of small and medium enterprises in Vinh Phuc
province is a necessary task, which needs the support of the branches and
levels from the central to local levels.
With the above view and approach, the researcher chooses the topic
“Main factors affecting competitiveness of small and medium-sized
enterprises in Vinh Phuc province”.
2. Objectives of the study
- General objectives
From the basis of theoretical research on competitiveness and
practical basis, the main factors affecting competitiveness of small and
medium enterprises, it is proposed solutions to improve the
competitiveness of small and medium enterprises in Vinh Phuc province.
- Specific objectives
+ To develop a theoretical basis for competitiveness and factors
affecting competitiveness of small and medium enterprises.
1


+ To assess the current situation of competitiveness, analyze
strengths, weaknesses, causes of weakness in competitiveness of small and
medium enterprises in Vinh Phuc province.
+ To analyze the impact of factors affecting competitiveness of small
and medium enterprises in Vinh Phuc province.
+ To propose a system of solutions to improve the competitiveness of
small and medium enterprises in Vinh Phuc province in the context of
international integration..
3. Tasks
- To implement the topic, the author will study and review the
domestic and foreign study projects related to the topic, develop the study

methods, determine the objectives and scope of study, identify questions of
the topic.
- The author will analyze theoretical issues about competitiveness,
competitive study models and factors affecting competitiveness of small
and medium enterprises.
- The study aims to assess the status of competitiveness, affirm
strengths, weaknesses, analyze the causes of weakness in the
competitiveness of small and medium enterprises in Vinh Phuc province.
- The study will analyze and clarify factors affecting competitiveness
of small and medium enterprises in Vinh Phuc province..
- After analyzing the situation, it is proposed solutions to improve the
competitiveness of small and medium enterprises in Vinh Phuc province in
the context of international integration through overcoming the negative
impact of the factors.
4. Object and scope of the study:
- Object:
The main object is the factors affecting competitiveness of small and
medium enterprises in Vinh Phuc province
- Scope:
+ Space: Focusing on studying factors affecting competitiveness of
small and medium enterprises in Vinh Phuc province.
2


+ Time: Data and figures is collected in stage 2014-2018; solutions
are proposed for Vinh Phuc province till 2025.
+ Content: The thesis focuses on studying the theoretical basis of
competitiveness and factors affecting competitiveness of small and
medium enterprises. Assessing the situation of competitiveness, analyzing
strengths, weaknesses, causes of weakness in competitiveness of small and

medium enterprises in Vinh Phuc province. The thesis analyzes the impact
of factors affecting competitiveness of small and medium enterprises in
Vinh Phuc province. In particular, the focus is on 10 factors affecting
competitiveness of small and medium enterprises in Vinh Phuc province,
including: (1) Enterprise management capacity; (2) Capacity of creating
relationships; (3) Human resources of enterprises; (4) Financial capacity;
(5) Marketing capability; (6) Logistics activities; (7) State policy; (8)
Regional natural, economic, cultural and social conditions; (9) Scientific
and technological progress; (10) International integration.
5. Methods of study
Expert interview;
Qualitative study;
Quantitative study;
Economic statistics;
6. Contributions of the thesis:
- About reasoning
+ The thesis provides the most basic and general contents about
factors affecting the competitiveness of small and medium enterprises at
present.
+ Systematize and clarify the theoretical issues and practical
summaries of competitiveness of small and medium enterprises in the
context of international integration.
+ Determine that competitiveness is the internal resources and
strengths that small and medium enterprises can maintain, improve the
rankings of enterprises in each product and service industry in the market,
in the locality in general and Vinh Phuc province in particular.
3


- About practicality

+ The thesis assesses the real situation of competitiveness of small
and medium enterprises in Vinh Phuc province on the basis of the criteria
built comprehensively and specifically, points out the subjective and
objective factors affecting the competitiveness of small and medium
enterprises in Vinh Phuc province.
+ The thesis proposes views, orientations and identifies a system
of synchronous solutions to improve the competitiveness of small and
medium enterprises in Vinh Phuc province in the context of
international integration.
+ The study results of the thesis are the source of scientific
information on small and medium-sized enterprises development for
researchers, advisory agencies, policy makers, entrepreneurs in the whole
country in general and Vinh Phuc in particular.
7. Structure of the thesis
In addition to the Preamble, Conclusion, References, Appendixes,
the thesis also has the following main contents:
Chapter 1: Overview of study projects related to the topic
Chapter 2: Basis of reasoning and models to study factors affecting
the competitiveness of small and medium enterprises.
Chapter 3: Actual impact of factors on competitiveness of small and
medium enterprises in Vinh Phuc province.
Chapter 4: Some solutions to improve the competitiveness of small
and medium enterprises in Vinh Phuc province.

4


CHAPTER 1:
OVERVIEW OF STUDY PROJECTS RELATED TO THE TOPIC
1.1. Study projects on competition and competitiveness

1.1.1. Projects on competition
1.1.2. Projects on competitiveness according to factors and
competitiveness analysis model
Competitiveness of enterprises is affected by two main groups of
factors: Group of internal factors and Group of external factors. The group
of internal factors includes: Hardware (material factors necessary to create
products and services of enterprises such as factories, machines,
equipment, technology, ...); Software (human resources and enterprise
management system). The group of external factors includes: Market
conditions related to the operation of enterprises, including domestic
markets, regional and world markets; Legal environment related to
business operations, including national, local (domestic) policies, laws and
regulations and international law issues; Business relationship with
partners: shippers, customers, local authorities, residential communities,…
1.1.3. Projects on the development status of small and medium
enterprises in Vietnam
1.1.4. Projects on competition and competitiveness in Vietnam
1.2. The research on factors affecting the competitiveness of
enterprises
The studies have generalized the theoretical basis of competitiveness,
improved competitiveness of enterprises. The studies have deeply
mentioned the main factors affecting competitiveness as well as assessing
the status of competitiveness of enterprises. The authors also set out
criteria to assess the competitiveness of small and medium enterprises:
based on management and financial revenue and profit. The main factors
affecting the competitiveness of businesses are now internal nature of
enterprises such as resources, qualifications, science and technology, ...
5

and the environment of policies and impacts of socio-cultural political
economy.
1.3. The study gap and the thesis issues
- The study gap:
The analysis shows that, until now, there are quite a lot of studies on
the competitiveness of small and medium enterprises in and outside the
country. However, it is limited, especially the doctoral theses that
comprehensively assess the current situation of competitiveness, affirm
strengths, weaknesses, analyze the causes of the weakness in
competitiveness of small and medium enterprises in Vinh Phuc province.
Previous studies have not really focused on analyzing and clarifying the
effects of factors affecting competitiveness of small and medium
enterprises in Vinh Phuc province. At the same time, after analyzing the
current situation, there have not been proposed synchronous solutions,
focusing on improving the competitiveness of small and medium
enterprises in Vinh Phuc province in the context of international
integration through overcoming the negative impacts of factors. These are
the study gaps that the topic will solve in the next content.
- The thesis issues focused on solving:
- About the model of factors affecting competitiveness of enterprises:
The thesis inherits and approaches according to the Macro Environment
Theory Model (PEST) for study in its thesis..
- Regarding the basic factors affecting the competitiveness of small
and medium enterprises included in the study are: Material factors needed
to create products, goods and services of enterprises; Factors including
human resources and management system of enterprises; Market
conditions, social conditions related to business operations; The
relationship between businesses and businesses, with relevant agencies;
with customers, local and residential communities.

6


- The thesis will focus on studying factors affecting the
competitiveness of small and medium enterprises in Vinh Phuc province,
giving a study model, this is an important and decisive factor to the
development of enterprises in the context of market economy. The thesis
also needs to study, set out basic criteria to assess the competitiveness of
enterprises and propose solutions to improve the competitiveness of small
and medium enterprises in Vinh Phuc province in terms of current
integration.
1.4. Proposing the study model for the topic

7


CHAPTER 2: BASIS OF REASONING AND MODELS TO STUDY
FACTORS AFFECTING THE COMPETITIVENESS OF SMALL
AND MEDIUM ENTERPRISES
2.1. Competition and competitiveness of small and medium
enterprises
2.1.1. Characteristics and roles of small and medium enterprises
2.1.2. Competition and competitiveness of small and medium
enterprises
2.2. Some competitive models of enterprises
- PEST Model ((PEST macro environment theory)
- Porter Model (Model of industry environment competition)
- Value chain model (Theory of internal environment)
- SWOT Model
2.3. Factors affecting the competitiveness of small and medium

enterprises
- Enterprise management capacity
- Capacity of creating relationships
- Human resources of enterprises
- Financial capacity
- Marketing capacity
- Logistics activities
- Service organization capacity
- Quality of goods and services of enterprises
- Operational experience of enterprises
- Corporate social responsibility
- State policy
- Regional natural, economic, cultural and social conditions
- Scientific and technological progress
- International integration
8


CHAPTER 3: ACTUAL IMPACT OF FACTORS ON
COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES
IN VINH PHUC PROVINCE
3.1. Overview of Vinh Phuc province
3.1.1. General introduction
Vinh Phuc is a province in the key economic region in the North, the
gateway of the Capital, near Noi Bai International Airport, a bridge
between the Northwest provinces with Hanoi and the Red River Delta,
thus the province plays a very important role in regional and national
economic development strategies. Vinh Phuc province has been approved
by the Prime Minister to build 20 industrial parks, and 41 industrial
clusters in Vinh Phuc industrial development plan to 2020 and oriented to

2030..
3.1.2. The development situation of small and medium enterprises
in Vinh Phuc
- About the number of enterprises: As of the end of 2018, the
number of small and medium enterprises in Vinh Phuc province is 9,875
enterprises, accounting for 97.5% of the total number of registered
enterprises in the province..
- About structure of enterprises:
+ Enterprise size: Number of micro enterprises accounts for about
53.8%; Number of small businesses accounts for about 35.5%; Number of
medium enterprises is about 10.7%.
+ Business area: Agriculture, forestry and fishery sector accounts for
about 1.0%; Industry and construction sector is about 46.5%; Commercial
and service sector is about 52.5%.
- Characteristics of small and medium enterprises in Vinh Phuc
province
+ The production and business premises have been built fairly
synchronously.
9


+ Access to credit capital, especially preferential credit capital due to
difficult complicated loan conditions.
+ Outdated technological processes, production techniques, less
competitive products.
+ Operating under the condition that the system of small and medium
enterprise development assistance agencies has not been synchronously
formed from the central to local levels..
+ Staff working in the field of small and medium enterprise
development is inadequate, limited capacity and most have not been

trained and retrained in terms of supporting the development of small and
medium enterprises.
+ Most small and medium enterprises have weak financial capacity,
inefficient production and business plans, so it is difficult to get bank
loans..
+ The capacity and vision of small and medium enterprises is
limited, most enterprises do not have long-term development strategies.
3.1.3. Potentials and development advantages of small and medium
enterprises in Vinh Phuc
- About natural conditions and geographical location
- About cultural and educational conditions
- About economic development conditions
3.2. Analyzing the structure of study models and exploratory
factors in the study models of small and medium enterprises in Vinh
Phuc
3.2.1. Data sources, data and research models
From the construction of study methods, proposed study models, the
study has directly interviewed 15 experts and scientists with professional
qualifications and experience in the field of study on small and medium
enterprises, survey results are shown in the following tables:

10


Table 3.1. Expert interview results
Agreement
Factors
Enterprise management capacity

15

Percentage
%
100

Capacity of creating relationships

11

72.3

Human resources of enterprises

12

80.0

Financial capacity

13

86.7

Marketing capacity

13

86.7

Logistics activities

15

100

Service organization capacity

7

46.67

Quality of goods and services of enterprises

6

40.00

Operational experience of enterprises

5

33.33

Corporate social responsibility

7

46.67

State policy

14

93.3

Regional natural, economic, cultural and social
conditions

9

60.0

Scientific and technological progress

13

86.7

International integration

10

66.7

Quantiy

Source: Author's calculations
The authors proposes a formal model to study the main factors
affecting the competitiveness of small and medium enterprises, including
following ten components:

1- Enterprise management capacity
2- Capacity of creating relationships
3- Human resources of enterprises
4- Financial capacity
5- Marketing capacity
6- Logistics activities
7- State policy
11


8- Regional natural, economic, cultural and social conditions
9- Scientific and technological progress
10- International integration
3.2.2. Determining quantitative study model
Based on the proposed study models, the results of qualitative study
and expert interviews, discussing the model of preliminary study on
factors affecting the competitiveness of SMEs in Vinh Phuc province. The
survey object is managers of enterprises, most of which are leaders of
functional departments with the number of 316 people (accounting for
59.8%); deputy directors with 131 people (24.8%); Enterprise directors
with 81 people (15.3%). The total number of surveys is 528 samples.
According to statistics in January 2018, Vinh Phuc has about 6,420 small
and medium enterprises out of 6,619 total enterprises in the province,
accounting for 97% of the total number of registered enterprises.
3.2.3. Analysis exploring factors and affirmative factors
- Evaluate the reliability of the scale;
- Analyze EFA exploring factors
- Analyze affirmative factors CFA
3.2.4. SEM linear structure equation model
Hypothesis:

H1: There is a correlation between Enterprise management capacity and
competitiveness
H2: There is a correlation between Capacity of creating relationships
and competitiveness
H3: There is a correlation between Human resources of enterprises and
competitiveness
H4: There is a correlation between Financial capacity and
competitiveness
H5: There is a correlation between Marketing capacity and
competitiveness
12


H6: There is a correlation between Logistics activities and
competitiveness
H7: There is a correlation between State policy and competitiveness
H8: There is a correlation between Regional conditions and
competitiveness
H9: There is a correlation between Scientific and technological progress
and competitiveness
H10: There is a correlation between International integration and
competitiveness
After considering the suitability of the model, the next issue of the
study will evaluate the SEM analysis results.
Table 3.6. Results of 1st analysis of SEM linear structure model
Correlation relationship
between factors
Competitiveness
Competitiveness
Competitiveness

Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness

<--<--<--<--<--<--<--<--<---

Enterprise
Relationships
management
HR
Finance
Marketing
Logistics
State policy
Regional
Scientific
conditions
and
International
Competitiveness <--chnological
integration

Estimate

S.E.

C.R.

P

Standardized
coefficient

0.225
0.126
0.146
0.210
0.249
0.121
0.129
0.070
0.117

0.050
0.046
0.044
0.041
0.050
0.043
0.054
0.042
0.046

4.524
2.751
3.312
5.126

4.981
2.824
2.406
1.656
2.524

0.000
0.006
0.000
0.000
0.000
0.005
0.016
0.098
0.012

0.204
0.135
0.155
0.230
0.255
0.139
0.115
0.075
0.116

0.069

0.043 1.600 0.110

0.075

Source: Author's calculations
Results of 1st analysis of SEM model show that the two factors,
namely, regional conditions and integration do not have a clear
relationship with the competitiveness. These two factors are removed and
carry out SEM for the second time.

13


Table 3.7. Results of 2nd analysis of SEM linear structure model
Correlation relationship
between factors
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness

<--- Enterprise
<--- Relationships
management
HR
<--Finance
<--<--- Marketing
<--- Logistics

<--- State policy
<--- Scientific

Estimate

S.E.

C.R.

P

Standardized
coefficient

0.228
0.141
0.137
0.218
0.272
0.121
0.139
0.129

0.050
0.045
0.044
0.041
0.049
0.043
0.053

0.046

4.609
3.119
3.124
5.344
5.539
2.819
2.629
2.805

0.000
0.002
0.002
0.000
0.000
0.005
0.009
0.005

0.209
0.151
0.147
0.240
0.280
0.140
0.125
0.129

and

Source: Author's calculations
3.3. Analysis technological
of survey results on the impact of factors on

competitiveness of small and medium enterprises in Vinh Phuc
province
3.3.1. Enterprise management capacity
3.3.2. Capacity of creating relationships
3.3.3. Human resources of enterprises
3.3.4. Financial capacity
3.3.5. Marketing capacity
3.3.6. Logistics activities
3.3.7. State policy
3.3.8. Regional natural, economic, cultural and social conditions
3.3.9. Scientific and technological progress
3.3.10. International integration
3.3.11. Test the impact of factors on competitiveness of small and
medium enterprises
Through surveys and assessments and analysis of the effects of
factors on competitiveness of SMEs in Vinh Phuc province, it can be
affirmed: Group of internal factors (enterprise management capacity,
capacity to create relationships, human resources, financial capacity,
Marketing capacity, Logistics activities) has a great impact, plays an
14


important role in determining the competitiveness of small and medium
enterprises. The group of external factors (State policy, Regional natural,
economic, cultural and social conditions, progr Scientific and technological
progress, international integration) greatly affects competitiveness of

enterprises, but their level of influence is more or less bound by the group
of internal factors, because the subjective factors have a human role and
the quality of human resources of enterprises.
3.4. Current situation of competitiveness of small and medium
enterprises in Vinh Phuc province
3.4.1. Analyzing the competitiveness of small and medium
enterprises in Vinh Phuc through the criteria
- Revenue and profit targets of enterprises
- Target of profit ratio of enterprises
- Comprehensive survey analysis of competitiveness
3.4.2. Overall assessment of the factors affecting competitiveness of
small and medium enterprises in Vinh Phuc
3.4.2.1. The positive side of the factors
3.4.2.2. The limitations of the impact factor
About enterprise management capacity
Regarding enterprise management capacity, the survey results show
that the organizational management capacity of SMEs in Vinh Phuc
province is surveyed at a medium level, this is reflected in the actual labor
use efficiency. Currently in the SMEs in Vinh Phuc province in particular
and in Vietnam is still quite low and is also the factor with the lowest
average rating among the studied factors. The survey results also show that
the majority of management positions (Director and Deputy Director,
Leaders of departments) of SMEs in Vinh Phuc province have relatively
high educational level, most of which have a university degree or higher
with a specialized training subject. Although the knowledge and
management skills of most managers of SMEs in Vinh Phuc province have
15


not met the requirements of the international economic integration process,

the cause may be due to the characteristics of the managers are limited in
time so it is difficult to promptly update new knowledge and skills. It is
also from the lack of knowledge and management skills of managers of
SMEs in Vinh Phuc province that the management of brand, investment
management, human resource management and marketing management is
not really methodical and outdated, leading to the management capacity
has not met the requirements of international economic integration.
About capacity of creating relationships
Research results also show that the ability of SMEs to participate in
research with other enterprises in the industry is not highly appreciated.
While the ability to link is an important factor to survive and develop as
well as to increase competitiveness in the current market economy, the
reality of Vietnamese enterprises shows that the ability to link and match
Cooperation between enterprises in general is still limited. Until now, the
mentality of "one boat alone" is still deeply ingrained in the subconscious
of many business owners. Business managers do not want to share
business activities or benefits with others.
About human resources
Regarding the human resources of SMEs, the survey results show
that the quality of human resources does not meet the needs of enterprises
in the province. According to statistics, by 2018, Vinh Phuc province has
more than 150,000 employees working in enterprises, of which, labor in
industrial parks is about 81,000 people. However, female workers account
for more than 70%; unskilled workers over 52%; 12% of workers with
university and college qualifications. The human resources of the province
are weakest, especially in terms of foreign language and informatics, the
recruitment is also evaluated to be inadequate, has not built a standard
process to recruit talents and retain talents for the province. ¬ Situation
analysis results have shown that the quality of human resources of small
16

and medium enterprises in general has not met the requirements; the
proportion of female workers and unskilled workers is too high in
enterprises, workers with university and college degrees are too low; The
foreign language and informatics level of workers has not met
requirements in the period of integration and technology development.
About financial capacity
The survey results of the project show that the financial capacity of
the participating SMEs is assessed at an average level. Due to the
influence of firm size, SMEs' access to capital in general and SMEs in
Vinh Phuc province have many limitations. There are many reasons why
the mobilization of shareholder capital of SMEs in Vinh Phuc province has
many limitations. Subjectively, not all businesses can meet the conditions
to mobilize capital through the issuance of shares and bonds. Objectively,
the stock market has been fluctuating, liquidity is low, so mobilizing this
capital source for SMEs is not easy. It is also the reason why most SMEs
still rely on loans and consider it as the only source of capital to ensure
businesses operate instead of mobilizing shareholder capital. Real page
analysis has shown that the ability of businesses to access capital sources
is limited to ensure business development..
About marketing and logistics capabilities
At present, most SMEs in Vinh Phuc do not have a specialized
marketing department, but they have a lack of specialized knowledge on
business marketing management, so the solution of these enterprises is to
hire them. external communication service provider. For logistics
activities, the majority of logistics service providers in Vinh Phuc province
are private enterprises and most of them are small-scale, limited in capital,
technology and manpower, often only from 10 to 20 employees with
service quality are still limited. The research results show that the activities

of customs clearance, other paperwork, customer consultation, packaging,
marking of logistics service providers only basically meet requirements of
17


SMEs in Vinh Phuc province, but not really satisfied, contribute and
increase the competitiveness of these enterprises.
About scientific and technological progress
Due to the small scale, limited financial capacity, corporate
governance and access to technology, it is not easy for SMEs to apply
scientific and technological advances to production and business activities.
Many SMEs in Vinh Phuc province are no exception when facing many
challenges that require not only large capital investment but also efforts to
change the level of corporate governance, ready to welcome the public
wave. New technology and turn it into a driving force, benefiting
ourselves. In fact, only about 10% of SMEs are able to access 4.0
technology. The reason is that the level of science and technology and
management of enterprises is still low, not operating in a chain, there is no
association, resources are limited, ... and even, many businesses have not
Understand the nature of the 4th industrial revolution, so it does not see the
relevance of technology trends to its industry and sector, is not ready for
capacity to access technology, so it does not turn around. get a business
organization model to catch up with the new trend. That is the reason why
most of the evaluation criteria on the impact of scientific and technological
advances on the competitiveness of SMEs in Vinh Phuc province are only
assessed at a low level.
About international integration
The international economic integration in general and the
implementation of FTAs in particular will bring great opportunities for
economic development, trade, investment of the Vietnamese economy in

general and a positive factor to improve. Competitiveness of SMEs in
Vinh Phuc province in particular. However, in order to take advantage of
incentives in FTAs, SMEs in Vinh Phuc province need to meet the
requirements and high standards of goods quality, under pressure to
comply with the provisions on defense. birth, environment, labor and
technological processes ... This is both an opportunity to improve capacity,
18


and a challenge for NVV enterprises in Vinh Phuc province because some
small and medium enterprises are lacking technology, capital and
manufacturing experience.
3.4.2.3. Causes of the limitations
Firstly: Enterprises lack a team of experts, skilled workers, highlevel workers, policy makers and organizations to apply new technologies.
Due to the characteristics of business managers, there is very little time to
update new knowledge and skills that have created a lack of necessary
management knowledge and skills, leading to inadequate management
capacity. requires international economic integration.
Secondly quality of human resources of the province. With the
characteristics of local human resources, it is very difficult for SMEs to
recruit quality human resources in accordance with the needs of the fourth
industrial revolution. Many problems are caused by the old mechanism,
because the management level does not keep up with the innovation and
international integration.
Thirdly The role of management guidance of industry management
agencies and consultancy organizations on technology is lacking, weak
and embarrassing. Lack of coordination among research institutions to
implement applications with small and medium enterprises, research
potentials of unexploited institutes, centers and universities for public
innovation programs. technology, lack of technology support between

large enterprises and small and medium enterprises. On the other hand,
there is no technology strategy for small and medium enterprises, so
technological innovation takes place spontaneously, small and lack of
orientation of the State. Lack of synchronous solutions in acquiring foreign
technology, lack of consulting information, appraisal and qualification,
about 70% of equipment and machinery are bought at an average level,
usually in the form of old equipment..

19


Fourthly The current valuation method of collateral is unclear, often
the value of assets is very low compared to the real value, even the
evaluation is still arbitrary. The financial and credit policies have not been
implemented synchronously and effectively implemented, so the impact is
not very good to the urgent need of capital of small and medium
enterprises at present. In addition, the capital mobilization of SMEs is
difficult. Meeting the conditions to mobilize capital through the issuance
of shares and bonds of enterprises is limited. On the other hand, the stock
market fluctuates erratically, liquidity is low, so mobilizing this capital
source for SMEs is not easy. Therefore, most SMEs must rely on loans and
be considered the only source of capital to ensure businesses operate
instead of mobilizing shareholder capital..
Fifthly The level of science and technology and management of
enterprises is still low, not operating in a chain, without association, and
limited resources; Many businesses do not fully understand the nature of
the 4.0 revolution, so they are not ready to access technology and catch up
with the new trend. International integration requires high requirements
and standards for the quality of goods and services that have created for
small businesses and have faced new pressures on the environment, labor

and technological processes..

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CHAPTER 4: SOME SOLUTIONS TO IMPROVE THE
COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES
IN VINH PHUC PROVINCE
4.1. Orientation and requirements to improve the competitiveness
of small and medium enterprises in Vinh Phuc province
4.1.1. The domestic and international context affects the
competitiveness of small and medium enterprises in Vinh Phuc province
4.1.2. Orientation and requirements for small and medium
enterprises development
4.2. Solutions to improve the competitiveness of small and
medium enterprises in Vinh Phuc province
4.2.1. Developing high quality human resources and good
management system to improve competitiveness for small and medium
enterprises
4.2.2. Developing the financial system, facilitating loans for small
and medium enterprises for investment and development
4.2.3. Strengthening science and technology capacity for small and
medium enterprises in the province
4.2.4. Developing product strategy, partnership, cooperation to
improve competitiveness in the process of international integration
4.2.5. Branding and marketing strategy for businesses
4.2.6. Investment in logistics services development
4.3. Conditions for implementing solutions

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CONCLUSION
The thesis has achieved the objectives:
Firstly, the thesis has analyzed the study issues on competitiveness of
enterprises in general as well as small and medium enterprises in particular
on the basis of studying research works of scholars and scientists of
countries in the world, the authors in Vietnam. Since then, the author has
raised the outstanding issues studied in scientific works, weight gaps of his
research as required by the thesis..
Secondly, the basic problems of small and medium enterprises The
thesis has fully clarified, such as concepts, characteristics, classification of
small and medium enterprises; At the same time, it highlighted the role of
small and medium enterprises in the development of our country.
The concepts of competition and competitiveness of enterprises have
been built by the author as a tool to study the important issues of the
thesis. Based on the competitive models of small and medium enterprises
that have been accepted by many countries in the world, the author
chooses the official model as a basis for studying the factors affecting the
competitiveness of enterprises ensure the right direction, consistent with
the best practices of Vinh Phuc province. It is also the basis for proposing
measures to improve the competitiveness of small and medium
enterprises in Vinh Phuc province in the context of integration. On the
basis of studying the theory of competition and competitiveness of small
and medium enterprises, the author has built the basic criteria as a basis
for surveying the situation, assessing basics of edge competencies. The
picture of small and medium enterprises in Vinh Phuc province is
considered as the basis for proposing solutions in Chapter 4 of the thesis..
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Thirdly, the author has surveyed and evaluated the status of factors
affecting competitiveness of small and medium enterprises in Vinh Phuc
province, which is a combination of both qualitative and quantitative. By
determining the scale of 10 factors affecting 54 observed variables, the
author has developed a survey questionnaire with a reasonable situation.
The survey results show that the competitiveness of small and medium
enterprises in Vinh Phuc province faces a lot of difficulties in capital
resources, the level of organization of business management, cooperation
and cooperation, and logistics costs are still high. The regression results of
the factors affecting the competitiveness of small and medium enterprises
show that the factors of marketing capacity of enterprises, management
policies of the state, improving the quality of human resources for
Business management or enterprise management are important factors that
have the most impact on the competitiveness of small and medium
enterprises.
Fourthly, Research results of the chapters serve as a basis for
proposing 6 groups of solutions to improve the competitiveness of small
and medium enterprises in Vinh Phuc province in the current period,
including: Developing quality human resources in and good management
system to improve competitiveness for small and medium enterprises;
Developing the financial system, facilitating loans for small and medium
enterprises for investment and development; Strengthening science and
technology capacity for small and medium enterprises in the province;
Develop product strategies, partnerships, cooperation links to improve
competitiveness; Branding and marketing strategy for businesses;
Investment in logistics services development.
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