Giải pháp nâng cao năng lực cạnh tranh của tỉnh hà tĩnh

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

NONG MINH TRANG

SOLUTIONS TO ENHANCE THE
COMPETITIVENESS CAPACITY OF HA TINH
PROVINCE

Major: Economic Management
Code: 9.34.04.10

SUMMARY OF ECONOMICS DOCTORAL THESIS

HANOI - 2019


The Thesis has been completed at:
GRADUATE ACADEMY OF SOCIAL SCIENCES

The science supervisors: 1. Associate Professor Ph.D Nguyen Dinh Tho
2. Doctor Luong Minh Huan

Reviewer 1: Associate Professor Ph.D Tran Dinh Thien
Reviewer 2: Associate Professor Ph.D Hoang Van Bang
Reviewer 3: Associate Professor Ph.D Le Xuan Dinh

The Thesis will be upheld in front of the Thesis Grading Council at
Academy level in the meeting at Graduate Academy of Social Sciences,
477 Nguyen Trai, Thanh Xuan.
At …...... date…......…month…....….year....…

The information of the Thesis can be found out at the library:
- Vietnam National Library
- The library of Graduate Academy of Social Sciences


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INTRODUCTION
1. The pressing and necessary characteristics of the research topic
Global competitiveness is getting severe and pushing countries
including Vietnam, which has to continuously enhance the competitiveness
capacity to exist and develop. Our country is in the period of changing the
growing model in economy to enhance national competitiveness capacity. In
fact, the competitiveness capacity of a country always has a closely reciprocal
relationship with its local competitiveness capacity. Thus, enhancing the
competitiveness capacity at provincial level in our country will positively
contribute to the national competitiveness capacity of Vietnam.
In Vietnam, provinces are the local administrative level below the
central level; they have the direct and close relationship with the central level,
at the same time that they play an important role in executing the Party’s
guidelines and policies and Central Government’s policies and laws. Since
being decentralized in economic management by the Government, provincial
level is playing an important role in developing society and economy, in
exploitating, attracting and using resoures for a sustainable development.
However, most of Vietnamese provinces are severely competing with their
neighbors, currently facing the overlap, sychronous lack of legal documents of
ministries, central agencies in investment capital, lands, developing planning,
business and investment environment, especially lack of synchronous
cooporation between concerned departments and branches of provinces in
sloving difficulties in production, business for enteprises and economic sector

in order to maximize the internal capacity of local economies, etc.
Ha Tinh is one of provinces at North Central region and Central coastal. It
is a very geographically - politically and geographically -important in the
development of Vietnam, Laos and the Mekong sub-region countries.
Implementing Resolution 02 / NQ - CP of the Government on continuing to
perform key tasks and solutions to improve the business environment and enhance
national competitiveness, Ha Tinh has been implementing many synchronus
solutions to improve competitiveness capacity at the provincial level to drastically
improve the business and investment environment to create sustainable
development. The initial results from the above efforts of Ha Tinh have rapidly
increased the number of newly established enterprises, significantly


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reduced the rate of enterprises of which operations are dissolved and ceased;
drastically reduced time costs, unofficial expenses for market entry of enterprises
and people; drastically increased the amount of social investment capital in
agriculture, industry and services, etc; especially the provincial government has
made great progress in education, health, culture and society; The life in all aspects
of the people of Ha Tinh is initially improved and enhanced etc.
However, in general, the government of Ha Tinh province has not yet
effectively exploited the geographical advantages in comparision of the high
percentage of high school graduates to develop high qualified human resources;
has not yet effectively exploited the geographical advantage in the absolute
comparison of deep-water seaport and the location of traffic hubs between the
Southern and the Northern of Vietnam and the Mekong sub-region to attract
investment in order to make Ha Tinh become the logistics center of the Central
region; not yet has fully exploited the geographical advantage in comparision of
scenic beauty, marine resources, cultural and historical traditions , etc. in order to
attract investment capital for developing the tourism sector; It has not yet exploited

appropriately geographic advantages in comparision of terrain, geography and
natural resources to attract investment capital and modern technology in order to
develop clean energy such as wind power, solar power and to attract modern
technology in order to develop high quality endemic agricultural products, etc. The
consequence of this situation is that the competitiveness capacity of the
government of Ha Tinh province is still low, only reaching the average level
compared to the whole country; socio-economic development of Ha Tinh is not
high, labor productivity is only at a low average level, average income per capita is
at average level; Poverty alleviation activities are not effective and sustainable
compared to many provinces in the North Central region and Central Coast, etc.
From the above reality, the Thesis author has chosen the topic “Solutions
to enhance the competitiveness capacity of Ha Tinh Provine” for my reseach.

2. Purposes and mission of the Thesis
2.1. Research purposes of the Thesis
The purpose of the research is to complete a Doctoral Thesis in
economics management contributing to provide more scientific basis for
perfecting the concept of competitiveness capacity at the provincial level,
identifying the constituent factors and criteria for evaluating competitiveness


3
capacity at the provincial level; identifying impacting factors and theoretical
models of factors affecting competitiveness capacity at the provincial level in
order to apply a research of the competitiveness capacity situation of Ha Tinh
in order to outline the retrictions and their causes in competitiveness capacity
and offering some suitable and feasible solutions to enhance the
competitiveness capacity of Ha Tinh in the period of 2019 - 2030.
2.2. Research mission of the Thesis
In order to carry out the research topic on competitiveness capacity

at the provincial level, the Thesis needs to answer the following three main
research questions: (1) Provincial competitiveness capacity, constituent
elements and criteria for evaluating it? (2) Factors affecting the status of Ha
Tinh's competitiveness capacity? (3) Solutions to enhance the
competitiveness capacity of Ha Tinh in the period of 2019 - 2030?
To answer three questions of above research, the Thesis needs to
carry out four following research missions:
Mission 1: Overview research of competitiveness capacity at the
provincial level at domestic and internationally; outlining research gaps related to
competitiveness capacity at the provincial level. Mission 2: Proposing the concept
of competitiveness capacity at the provincial level; identifying the constituent
elements and criteria for evaluating competitiveness capacity at the provincial
level; identifying impacting factors and proposing theoretical models of factors
affecting competitiveness capacity at the provincial level; overviewing the
experience to enhance the competitiveness capacity of some provinces and give
out some lessons learned for the government of Ha Tinh province in the following
period. Mission 3: Applying theoretical models of factors affecting the provincial
competitiveness capacity to analyze and assess the current situation of Ha Tinh
province’s competitiveness capacity; bring out retrictions and their causes in Ha
Tinh province’s competitiveness capacity in the period of 2012 - 2017, extending
for consideration to 2018. Mission 4: Overviewing domestic and international
contexts; offering a number of perspectives, orientations and goals in order to
enhance the provincial competitiveness capacity in the period of 2019 - 2030;
Proposing a number of suitable and feasible solutions to overcome constraints of
Ha Tinh's competitiveness capacity in order to enhance the Ha Tinh's
competitiveness capacity in the period of 2019 - 2030.


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3. Researh object and scope of the Thesis

- Research object is Ha Tinh’s competitiveness capacity at the provincial level.
- Research scope in terms of content: Although there are many actors

contributing to create competitiveness capacity at the provincial level such as
provincial governments, businesses, households, population communities,
economic organizations such as cooperatives, cooperative groups, investment
funds, etc. but within the framework of the Thesis and from the perspective of
economic management, the Thesis only investigates the competitiveness capacity
of economic management subject which is the provincial government. With that
approach, the competitiveness capacity of the provincial government is considered
the competitiveness capacity at the provincial level in the province.
The Thesis does not make a research on competitiveness capacity at the

national and enterprise levels; it only makes a research on the
competitiveness capacity at the provincial level; on the components of
competitiveness capacity at the provincial level, factors affecting
competitiveness capacity at the provincial level and theoretical models of
factors affecting competitiveness capacity at the provincial level.
- Research scope in terms of time: The project will focus on the
Ha Tinh’s competitiveness capacity in the period of 2012 - 2017; the data
used for the research which was mainly used in the period of 2012 - 2017,
it also selects and supplements the data of 2018.
- Research scope in terms of space: The Thesis defines the scope of
the research space is in Ha Tinh province in the comparison with some other
provinces in the North Central region and the Central Coast region of Vietnam.
4. Methodology and research methods of the Thesis
To carry out the research project, the Thesis has applied the
methodology of dialectical materialism and historical materialism; At the
same time, the Thesis also uses a combination of methods that are popular
in research such as the objectivity method of consideration, logic - history,

from abstract to specific, history - specific, analysis, synthesis, comparison,
logic, SWOT, document collection methods, etc.
5. New scientific contribution of the Thesis
From the perspective of economic management, the Thesis introduces
the concept of competitiveness capacity at the provincial level, a number of


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factors that constitute competitiveness capacity at the provincial level and
criteria for evaluating competitiveness capacity at the provincial level. The
ways to approach the research of the concept of competitiveness capacity at the
provincial level, the factors that constitute competitiveness capacity at the
provincial level are always associated with the economic management subject
creating competitiveness capacity which is the provincial government. This is a
completely new research approach compared to previously published ones. The
Thesis proposes a theoretical model of factors affecting competitiveness
capacity at the provincial level which is highly applicable to analyze factors
affecting competitiveness capacity at the provincial level of Vietnam, which
hasn’t been mentioned in previous researches.
6. Theoretical and practical meanings of the Thesis
6.1. In terms of the theory
From the perspective of economic management, the Thesis outlines the
concept of competitiveness capacity at the provincial level, constituent
elements and criteria for evaluating competitiveness capacity at the provincial
level, factors affecting competitiveness capacity at the provincial level;
proposing a theoretical model of factors affecting competitiveness capacity at
the provincial level, the thesis wants to make a small contribution to building a
complete theoretical model of competitiveness capacity at the provincial level
and enhancing competitiveness capacity at the provincial level in Vietnam.
6.2. In terms of practice

In the research scope of the content, the Thesis identifies the economic
management subject creating competitiveness capacity at the provincial level is the
provincial government; therefore the competitiveness capacity of the provincial
government is considered the competitiveness capacity at the provincial level;
outlining the components and criteria for evaluating competitiveness capacity at
the provincial level; identifing factors affecting competitiveness capacity and
appling theoretical models of factors affecting competitiveness capacity at the
provincial level built by the Thesis to assess the current situation of Ha Tinh’s
competitiveness capacity in the period of 2012 - 2017; pointing out the retrictions
and their causes on Ha Tinh's competitiveness capacity; proposing a number of
suitable and feasible solutions to enahnce the competitiveness of Ha Tinh in order
to develop the province's socio-economic


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development effectively and sustainably in the period of 2019 - 2030.
7. Structure of the Thesis
Apart from the introduction, conclusion, list of published scientific
works, list of references and appendixes, the Thesis is divided into 4 chapters:
Chapter 1: Overview of research works related to the thesis topic
Chapter 2: Theoretical and practical basis for competitiveness capacity
at the provincial level
Chapter 3: Current situation of competitiveness capacity of Ha Tinh province
Chapter 4: Perspectives, orientations and solutions to enhance the
competitiveness capacity of Ha Tinh province in the period of 2019 - 2030

Chapter 1
OVERVIEW OF RESEARCH WORKS RELATED TO THE
THESIS TOPIC
1.1. Researches about comparision advantage and competitiveness of

competitiveness capacity and local competitiveness capacity
1.1.1. Researches about comparision advantage and competitiveness
Perspectives on comparison advantage and competitiveness have
appreared since the 17th century, but only in the late 18th century did they
flourish, associated with the names of some economists such as A. Smith,
D. Ricardo, J. S. Mill, T. Malthus, K. Marx, etc.
A. Smith was a British classical economist, one of the first scholars to
raise views on comparison advantage and competitiveness. In his famous work,
"An Inquiry into the Nature and Causes of Wealth of Nations" (1776), he argued
that absolutely comparison advantage meaning that a country was a producer with
the lowest cost on that commodity. Since then, he asserted absolute comparison
advantage when being put into the economic cycle would become a competitive
resource to create national competitiveness capacity. D. Ricardo was A. Smith's
outstanding successor as he pointed out the comparison advantage in countries
with open economies that also became an important competitive resource to create
national competitiveness when it was put into economic cycles through foreign
trade activities with other countries around the world. He supposed that relative
comparison advantage should be transformed into each nation's competitive
resources in the process of international trade. After A. Smith and D. Ricardo,
there were many economists researching the comparison advantage as an


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important competitiveness source creating the competitiveness of each nation and
its localities, in which there was a theory on comparison advantage based on the
H - O model, the theory of P. Samuelson. The author of the thesis acquired the
above-mentioned points of view and classic theoretical methods to in-depth study
on the mechanism of transforming comparison advantage into competitiveness
resources from the perspective of economic management in his research project.

1.1.2 Researches on national competitiveness capacity and local
competitiveness capacity
According to the World Economics Forum (WEF) (1995), National
competitiveness capacity is the capacity of national economy to achieve and
maintain the high growth in economy, income and employment. In addition, WEF
also supposes the national competitiveness capacity as a system of institutions,
policies and determinants to a country's productivity level, etc. In other words,
many economies competing to others tend to produce higher levels of income for
the people of their countries, etc. According to the concept of M. Porter (1990),
“we have defined the international success of an industry in a country is to possess
a competitiveness advantage relatively compared to the world's strongest
competitors”. Competitiveness and competitiveness capacity not only take place on
a national scope, but it also clearly takes place on the local scope of all countries. In
their works, the authors all assert that competitiveness is inevitable and enhancing
competitiveness capacity is a vital requirement of each economic subject in a
market economy. P. Giaccaria's research “Learning and local competitiveness: the
case of Turin” (1999) showed that the competitiveness advantage of localities,
provinces and cities and explained the manifestations of the competitiveness
advantage of localities, provinces and cities which had a strong impact on the
structure and direction of socio-economic development of the Turin. Author Ming
Zang (2010) pointed out that the competitiveness capacity of provinces and cities
with the combination of the quality of administration management, policies, laws,
institutions as well as contextual factors of localities (geographical location, natural
resources) and market conditions (infrastructure, human resources, economic
structure) would affect the level of economic development and the potentiality of
sustainable development of a province or city, etc.

In recent years, there have been many reseaches on provincial
competitiveness capaity in Vietnam, including the provincial competitiveness

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index (PCI) of VCCI; indices such as PAPI, PAR Index and SIPAS and ICT are also
relatively accurate indicators evaluating the Vietnam's competitiveness capacity. In
addition to the indicators, many practical reseaches on competitiveness capacity at
the provincial level in general have been published. It is the publication:
"Enhancing the competitiveness capacity at the provincial level in the condition of
economic market oriented by the Socialist of Vietnam today" by Nguyen Thi Thu
Ha "(2009), doctoral thesis "Research to enhance the Provincial Competitiveness
Index (PCI) of Hai Duong province ”by Phan Nhat Thanh (2011); doctoral thesis
"Solutions to enhance competitiveness capacity to attract investment in Hung Yen
province" by Do Minh Tri (2015); doctoral thesis "Enhancing Hanoi's
competitiveness capacity in attracting investment for trading development in the
current period" by Pham Xuan Tien (2016), etc. Direct researches on above
competitiveness capacity at the provincial level are a direct useful material source
for further studies on related issues, etc. It can be seen that the above studies of the
theoretists about Vietnam’s competitiveness capacity also provide a viewpoint,
approach and research method, useful scientific data for the thesis author to indepth reseach about the mechanism of transforming competitiveness advantage into
competiveness capacity at the provincial level in the perspective of economic
management for my research.

1.2. Theoretical basis of the concept of competitiveness capacity at the
provincial level in the thesis
1.2.1. Theory on transforming comparision advantage into
competitiveness resources
A. Smith with the theory of absolute comparison advantage, D. Ricardo
with the theory of relative comparison advantage, the theory of comparison
advantage of the H - O model and P. Samuelson's theory of comparison
advantage, etc. in addition to the analysis of benefits the comparison
advantage, they also offered a view to transforming comparison advantage

into competitiveness resources of countries, regions and enterprises, etc.
1.2.2. The theory of transforming competitiveness resoures and
capacity into competitiveness advantage
1.2.2.1. The transformation of competitiveness resources into
competitiveness advantage
Enterprises into their competitiveness advantages are a decisive factor to the


9
enterprises’ competitiveness advantages which create business efficiency of the
enterprises. According to J. Barney (1991) a resource can be transformed into a
competitiveness advantage for an enterprise in competition if it satisfies the
following 4 conditions: (1) value, (2) rare, (3) Inimitable, (4) Non-substitutable,
referred to as VRIN (Valuable, Rare, Inimitable, Non-substitutable).
1.2.2.2. The transformation of capacity into competitiveness advantage The theory
of transforming the capacity of enterprises into enterprises’ competitiveness
advantages emphasize the ability to use, maintain assets, resources and
capacity to achieve the organization's overall growth and efficiency. This theory
was developed by the studies of J. Barney (1991), B. Wernerfelt (1984), M. Peteraf
(1993), R. Sanchez & A. Heene (1996, 2004, 2008, 2010). The theory of
transforming the capacity into enterprises’ competitiveness advantages assumed
that the enterprise environment was dynamic and therefore requires the capacity
building and continuously utilizing the capacity to maintain competitiveness
advantages as a prerequisite for creating higher labor productivity than higher
labor productivity of competitors and thereby creating competitiveness capaity for
our own organizations (R. Sanchez & A. Heene, 1996). The theory of of
transforming the capacity into competitiveness through a set of fundamental
concepts which were assets, ability and capacity, were the decisive factors for

transforming capacity into competitiveness advantage.

1.2.3. The theory about transforming competitiveness advantage into
competitiveness capacity
It can be seen that the theory of transforming competitiveness
advantages into competitiveness capacity was analyzed and dissected in depth
by many economists, which are M. Porter, P. Krugman, K. Schwab, R. Feurer,
K. Chaharbaghi, A. Ambastha, K. Momaya, etc. As can be seen, each
researcher had a unique theoretical approach about transforming
competitiveness advantages into competitiveness capacity. Most notably, M.
Porter's "The advantage competitiveness of the Nations" (1990) and
K.Schwab's “The Global Competitiveness Report 2009- 2010” of K. Shwab
(2010) at the World Economic Forum (WEF), etc. In their works, the authors
all believed that the transforming competitiveness advantage into
competitiveness capacity was an inevitable part in the practical activities of
the competition, management and operation of the economic subject.


10
1.3. The theoretical basis of the theoretical model measuring factors
affecting competitiveness capacity in the thesis
1.3.1. Analytical framework of local competitiveness capacity of Vu
Thanh Tu Anh includes: The first is "Existing factors of localities" such as
geographical location; natural resources factor; local scale factor. The second
is the "competitiveness capacity at local level "such as cultural infrastructure
factors, health, education, society, technical infrastructure factors; fiscal
policy, investment, credit, economic structure. The third is "competitiveness
capacity at enterprise level "such as business environment, level of cluster
development, operations and strategies of enterprises.
1.3.2. Diamond model of Michael Porter
Diamond model of M. Porter includes: Existing conditions and
input factors; structural strategy and competitiveness of the company;

conditions of demand; relevant and supporting industries.
1.3.3. Triangle Model of competitiveness capacity Lall, Abramovitz
and his partners
In reseaches on competitiveness capacity, especially national and
local competitiveness capacity, the authors S. Lall, M. Abramovitz supposed
that there were 3 types of competitiveness capacity in a country and locality,
including competitiveness capacity in knowledge competitiveness capacity in
economy and competitiveness capacity in institution. On combining these
three types of capacities in a whole which was systematic and according to a
linear logical manner, it would form an analytical model of competitiveness
capacity with the name of competitiveness capacity Triangle.
1.4. Gaps in the research related to the topic
Within the scope of a doctoral thesis specialized in economic
management, the thesis only focuses on researching a typical gap, which is the
constituent element of Vietnam's competitiveness capacity at the provincial
level. Currently, there are quite large differences in the research on provincial
capacity competitiveness in determining components of competitiveness
capacity at the provincial level. The difference is quite large when determining
the constituents of competitiveness capacity at the provincial level deeply due
to the lack of general agreement on the concept of competitiveness capacity at
the provincial level. Therefore, with each research approach on provincial


11
competitiveness from different sciences, it will make a difference when
determining the factors that constitute the provincial competitiveness.
Chapter 2
THEORETICAL AND PRACTICAL BASIS ON
COMPETITIVENESS CAPACITY AT THE PROVINCIAL LEVEL
2.1. The concept of competitiveness capacity at the provincial level

2.1.1. Theoretial basis of the concept of competitiveness capacity at
the provincial level
2.1.1.1. The theory of transforming competitiveness advantage into
competitiveness resources
The theory of relative competitiveness advantage and the absolute
competitiveness advantage all assert that the comparison advantage should
be transformed into the competitiveness resources of competitor subjects in
the market and this is an inevitable transformation.
2.1.1.2. The theory of transforming the competitiveness resources
and capacity into competitiveness advantage
The theory of resources supposes that the competitiveness resources of
enterprises are the decisive factors for the transformation into the competitiveness
advantage and business performance of enterprises. This theory has divided
competitiveness resources into three types: physical resources, human resources
and organizational resources, etc. Ownership resources are the fundamental basis
for building a business strategy based on valuable, rare, inimitable, nonsubstitutable attributes. To successfully transform competitiveness resources into
competitiveness advantage of enterprises must satisfy the above 4 attributes. The
theory supposes that enterprises need to know how to combine and recombine
competitiveness resources to transform them into competitiveness advantage and
then transform competitiveness advantage into enterprises’ competitiveness
capacity in order to overtake competitors in the industry. The theory about the
capacity states that enterprises 'capabilities are shown in their abilities in using,
combining assets, resources, and capabilities to achieve the organization's overall
efficiency and growth. The concept of capaity is the assumption that, the research
object environment, especially the enterprise environment, is dynamic and
therefore, it is required to build capacity and continuously make full use of the
capacity to transform them into competitiveness advantage. Capacity is


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understood as the ability to maintain, deploy, coordinate resources and use
resources to help businesses achieve their goals in competitive contexts to
transform them into competitiveness advantage for enterprises. Therefore,
enterprises which want to transform their capacities into competitiveness
advantages, and transform competitiveness advantage into competitiveness
capacity, need to know how to combine resources and capabilities.
2.1.1.3. The theory of transforming competitiveness advantage into
competitiveness capacity
M. Porter (1985, 1998) was one of the authors discussing a lot about the
theory of transforming competitiveness advantage into competitiveness capacity,
when he supposed that competitiveness capacity was to be able to compete
successfully, enterprises must have competitiveness advantage in the form of either
lower production costs, or the ability to differentiate products to achieve the price
which were higher than average. M. Porter pointed out that, competitiveness
advantage on costs, or relative prices among enterprises were important
prerequisites for creating competitiveness advantage for enterprises. Essentially, the
transformation of competitiveness advantage into competitiveness capacity was the
process of creating higher labor productivity than compared to other competitors in
the market. The theory of transforming competitiveness advantage into
competitiveness capacity was also clearly expressed in the works of scholars such
as R. Feurer, K. Chaharbaghi, A. Ambastha, K. Momaya, etc.

2.1.2. Proposing the concept of competitiveness capacity at the
provincial level in the thesis
2.1.2.1. Identifying the subject creating competitiveness capacity at
the provincial level
On researching the competitiveness capacity at the provincial level, it is
necessary to clearly identify the main subject creating the competitiveness capacity
at the provincial level. There are many entities competing and contributing to the
competitiveness capacity at the provincial level such as government, enterprises,

households, and other economic owners such as cooperatives, cooperative groups,
investment funds, etc. However, due to the retrictions in the scope of the research
content, the thesis identifies the subject creating competitiveness capacity at the
provincial level is the provincial government, because this subject acts as the
economic management one in the province. Thus, within the content scope of the


13
thesis, the competitiveness capacity at the provincial level is the
competitiveness capacity of the provincial government.
2.1.2.2. Expressing the concept of provincial competitiveness
capacity at the provincial level and explaining the terms
From the theory of the transformation of competititveness advantage
into competitiveness capacity and the transformation of resources and capacity
into competititveness advantage, from the perspective of economic
management, the thesis expresses the concept of competitiveness capacity of
the provincial government as follows: competitiveness capacity of provincial
authority is the capacity to exploit, attract and transform resources in the form
of potentiality into the province's competititveness advantage and the ability to
effectively use competititveness advantage to overtake other provinces in
socio-economic development activities.
From the viewpoint of economic management, in the sense of the verb,
the “Enhancing” term in the phrase "Enhancing competitiveness capacity at the
provincial level" is understood as the operation of the provincial government,
making the province's competititveness capacity better and more highly effective;
It is also the process of making elements constituing competititveness capacity of
that subject more effective and more perfect.

2.2. Components of competitiveness capacity at provincial level
Provincial competitiveness capacity includes: (1) The provincial

government's capacity to exploit, attract and use high-qualified human
resources; (2) The provincial government's capacity to exploit, attract and
use financial investment resources and modern technology; (3) The
cooperation and connection capacity of the provincial government; (4) The
provincial government's capacity to respond to incidents and events; (5) The
provincial government’s creativeness and innovation capacity; (6) The
provincial government’s management and operation capacity.
2.3. Criteria for evaluating competitiveness capacity at provincial level in
thesis Criteria for evaluating acute competitiveness capacity include (1)

Ability to develop high quality human resources; (2) Ability to mobilize
financial resources; (3) Ability to connect and cooperate; (4) Ability to
predict and handle situations, incidents, events and disasters; (5) Ability to
innovate and create; (6) Ability to maintain and enhance management and


14
operation efficiency. Each criteria has a number of component evaluation
indicators, assessing the status of competitiveness capacity in the thesis will
only focus on analyizing the component criteria of the above criteria.
2.4. Factors affecting competitiveness capacity at the provincial level
and proposing theoretical models measuring factors affecting
competitiveness capacity at the provincial level in the thesis
2.4.1. Factors affecting competitiveness capacity at the provincial level Factors
influencing competitiveness capacity at the provincial level include: (1)
Business environment; (2) Level of development of the industry cluster; (3)
Operation and strategies of the enterprises; (4) Social, health, educational and
cultural infrastructure; (5) Technical infrastructure (transportation, electricity,
water, telecommunications); (6) Fiscal policy, investment, credit and economic
structure; (7) Physical location; (8) Natural resources; (9) Scale of the

province (GDP, area, population, domestic market, etc.).
2.4.2.
Theoretical
model
measursing
factors
competitiveness capacity at the provincial level in the thesis

affecting

2.4.2.1. Theoretical basis of proposing theoretical model measuring the
factors affecting competitiveness capacity at the provincial level in the thesis
(1) Analysis framework of competitiveness capacity at the local level of Vu
Thanh Tu Anh: According to Vu Thanh Tu Anh, the analysis framework of
competitiveness capacity at the local level is divided into 3 parts in interdependent,
binding and interactive relationship inclusing: The first is the "Existing factors of the
locality" including geographic location, natural resources and local scale. The second
is "competitiveness capacity at the local level" including social, health, educational and
cultural infrastructure (transportation, electricity, water, telecommunications); fiscal
policy, investment, credit, economic structure. The third is "competitiveness capacity
at the enterprise level" including the business environment, induinry cluster
development level, operations and strategies of enterprises.
(2) Diamond model of M. Porter: including: One is the conditions, existing
input factors; second is the company's structural strategies and competitiveness; three
is demand conditions; four is related and supporting industries.

Triangle Model about competitiveness capacity of Lall,
Abramovitz and his partners including competitiveness capacity in
knowledge, competitiveness capacity in economy and competitiveness

(3)


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capacity in institution. If combining to analyze these three types of capacities
in a whole which was systematic and according to a linear logical manner, it
would form an effectively analytical model of competitiveness capacity with
the name of competitiveness capacity Triangle.
2.4.2.2. Proposing a theoretical model measuring the factors
affecting the provincial competitiveness capacity
From the three theoretical bases mentioned above, the thesis proposes
a theoretical model of factors affecting competitiveness capacity at the
provincial level including 9 factors as follows: (1) Business environment; (2)
Development level of the industry cluster; (3) Business strategic operations;
(4) Social infrastructure (health, education, culture, society); (5) Technical
infrastructure (transportation, electricity, water, telecommunications); (6)
Economic structure, investment, credit and fiscal policies; (7) Geographical
location; (8) Natural resources; (9) Local scale.
Business
environment

Social, health,
educational and cultural
infrastructure

T4

Technical infrastructure
(transportation,
electricity, water,

telecommunications)

Economic structure,
investment, credit and
fiscal policies
Local scale

T1

Development level of
the industry cluster

T2

Enterprise’s strategy and
operations

T3

T5

T6
T9

Competiti
veness
capacity at
proivincial
level

Geographical location

T7
Natural resources

T8

Source: Author
Figure 2.2: Modeling of hypotheses which are factors affecting
the province’s competitiveness capaity
Y= f(X1, X2, X3, X4, X5, X6, X7, X8, X9)
In which: X1: Business environment factors; X2: Industry cluster
development factor; X3: Strategy and operation factors of enterprises; X4: Factor


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in social, health, educational and cultural infrastructure; X5: Technical
infrastructure factors (transportation, electricity, water, telecommunications); X6:
Economic structure, credit, investment and fiscal policy factor; X7: Geographic
location factor; X8: Natural resources factor; X9: The factor of local scale (in terms
of area, GDP, population, domestic market, industrial clusters, etc.); Y: the
provincial competitiveness capacity. Assumptions of the model: T1: There is a
positive impact of the business environment on the provincial competitiveness
capacity; T2: There is a positive impact of the development of the industry cluster
on the provincial competitiveness capacity; T3: There is a positive impact of the
enterprise’s strategy and operation on the provincial competitiveness capacity; T4:
There is a positive impact of social infrastructure on the provincial competitiveness
capacity; T5: There is a positive impact of technical infrastructure on provincial
competitiveness capacity; T6: There is a positive impact of economic policies of
the Central Government and the province on the provincial competitiveness

capacity; T7: There is a positive impact of geographic location on the provincial
competitiveness capacity; T8: There is a positive impact of natural resources on the
provincial competitiveness capacity; T9: There is a positive impact of the local
scale on the provincial competitiveness capacity.

2.5. Experiences in improving competitiveness capacity of some
provinces in Vietnam and lessons learned for Ha Tinh province
2.5.1. Experience to improve competitiveness capacity of Danang and Quang
Ninh: Experiences to improve competitiveness capacity of Danang and Quang Ninh
includes: (1) Experiences in exploiting local resources for development; (2)
Experiences in associating and cooperating with domestic and foreign partners;

(3) Experiences of capacity, effective operation management of government.
2.5.2. Lesson learned to improve competitiveness capacity for Ha Tinh
Lessons learned to enhance competitiveness capacity for Ha Tinh province
include: (1) Lessons on improving the governance efficiency of the
government; (2) Lessons on well exploiting local resources for development.
Chapter 3
CURRENT SITUATION OF COMPETITIVENESS CAPACITY
OF HA TINH PROVINCE
3.1. Natural and socio-economic characteristics


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From the analysis of natural conditions, socio-economic characteristics
and resources, it can be seen that Ha Tinh is eligible to improve competitiveness
capacity to overcome your neighbors to develop socio-economic of the province
and it deserves a position as an and logistics service, industrial center of the North
Central region and Central coastal region. However, Ha Tinh has not exploited all
its inherent potentials and strengths to develop into a trading center of the North

Central region, it hasn’t had the international and regional internal connection and
cooperation, and economic growth is still slow and it is still a poor province, etc.

3.2. Current situation of provincial competitiveness capacity of Ha Tinh
3.2.1. Current situation of the capacity of exploiting, attracting and
using high quality human resources of the government of Ha Tinh province
Current situation of the capacity of exploiting, attracting and using
high-qualified human resources of the government of Ha Tinh province is
assessed through the indicators of ability to attract talents, the HDI, the
results of building and improving the quality of the contingent of cadres,
civil servants and officials. Currently, the percentage of high school
graduated students is 74.3%, significantly higher than the national average,
etc. In 2017, in the total of the labor force who are working and contributing
to the economy, there is 58.7% trained, increased up to 23.2% compared to
the percentrage of 2011, etc.

3.2.2. Current situation of the capacity to exploit, attract and use
financial investment resources and modern technology of the government
of Ha Tinh province
The current situation of this capacity is assessed according to the
indicators of social investment capital in the form of ownership, indicators of
investment capital for all sectors, and Incremental Capital Output Ratio
(ICOR), targets on attracting FDI capital, targets on attracting high-tech
projects, targets on electronic governance, targets on enterprise development,
targets on enterprise support services. In the period of 2012 - 2015, the number
of the realized investment capital of the following timeline compared to the
previous one has increased significantly by 257.36%, of which the outstanding
growth in FDI capital of the following timeline in comparison with the previous
time period was 332.76%. In the period of 2015 - 2017, the number of

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the realized investment capital of the following timeline compared to the
previous one has decreased significantly by 34.36%, of which the decrease
in the FDI capital of the following timeline compared to previous milestone
was 19.95%. In the period of 2016 -2017, "Development index of newly
established enterprises in 2017/2016" in the Central Coast region was
118.4%. Comparing to the regional average, Ha Tinh is the province with
the lower rate than the average number which was 17.4%, etc.
Table 3.3: Growth index of newly established enterprises of
North Central and Central coastal areas compared to the whole
country in the period of 2016-2017
Number of
Number of
Growth
Region
newly
newly
index of
established
established
newly
enterprises
enterprises
established
in 2016
in 2017
enterprises
2017/2016
(%)

Whole country
110.100
126.859
115,2
North Central and
14.825
17556
118,4
Central coastal areas
Thanh Hoa
1.453
3.065
210,9
Nghe An
1.547
1.794
116
Ha Tinh
734
741
101
Quang Binh
564
576
102,1
Quang Tri
282
307
108,9
TT- Hue

672
640
95,2
Source: Vietnam Statistical Yearbook 2016, 2017
3.2.3. Current situation of connection and cooperation capacity of
the authorities of Ha Tinh province
Current situation of the connection and cooperation capacity of the authorities
of Ha Tinh province is assessed through indicators of trade promotion, indicators of
market share expansion for local products, indicators of investment promotion capacity,
indicators of public - private cooperation capacity, indicators of the number of projects
of regional and international cooperation and connection.


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In fact, Ha Tinh province does not have a joint project with provinces in the Central
Coast area. The number of public-private partnership projects is very small. The
ability of trade promotion and investment promotion has made certain progress,
promoting market share expansion for local products have prospered, etc.

3.2.4. Current situation of capacity to adapt to incidents and events of
the authorities of Ha Tinh province
Current situation of capacity to adapt to incidents and events of the
authorities of Ha Tinh province is assessed through indicators of the ability to
predict incidents, unexpected situations, indicators of handling situations and
environmental incidents, natural disasters. The authorities of Ha Tinh province
have not really paid attention to the implementation of the motto "Four in
place" and the motto "Three ready things" in dealing with incidents and
unexpected incidents, especially environmental incidents and natural disasters.
Therefore, when the Formosa environmental incident happened, the authorities
of Ha Tinh province were very awkward and passive, etc.

3.2.5. Current situation of creativity and innovation capacity of
the authorities of Ha Tinh province
Current situation of capacity to creativity and innovation capacity of the
authorities of Ha Tinh province is assessed through the indicators of the number of
established Technology and Science enterprises, the targets on developing the
Technology and Science market, the indicators of dynamism and pioneering of
provincial leaders, indicators of modernization and administrative reform,
indicators of Information Technology infrastructure and Information Technology
applications in governance. In the period of 2012 - 2017, the authorities of Ha
Tinh province were quite interested in Technology and Science activities with 126
equipment and technology transfer contracts implemented with a total value of
821,130 million VND. According to data in the Statistical Yearbook of some North
Central provinces in 2012 and 2015, it shows that Ha Tinh’s increase number of
Technology and Science enterprises and training places is 136.92%; Nghe An’s is
183.38%; Quang Binh’s is 119%; Quang Tri’s is 204.68%.


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3.2.6. Current situation operation and management capacity of
the authorities of Ha Tinh province
3.2.6.1. Current situation of serving and construction capacity of
the authorities of Ha Tinh province
The current situation of the serving and construction capacity of the
provincial government is assessed through the indicators of serving and construction
capacity of the provincial government (including publicity, transparency, legal
institutions and order and security, time costs, informal charges). PAPI data show that
this index of Ha Tinh in 2012, 2015 and 2018 shows that: In 2012, in the Central Coast
region (12 provinces), Ha Tinh reached 5.86 points ranking 6th place; in 2015, it
increased by 3rd place and then decrease by 9th (2018); This shows that Ha Tinh does
not have any stability on this indicator.

3.2.6.2. Situation of capacity of policy making and organizing
policy implementation of the authorities of Ha Tinh province
Capacity of making policies and organizing the policy implementation is
assessed through indicators of capacity of policy making and organizing policy
implementation (including government accountability, public administrative
procedures). Currently, most of the provinces in the North Central region have
issued policies to shift the economy structure in the direction of focusing on
developing the tourism industry to turn tourism into a main and key economic
sector of the province. In fact, although the number of tourists to Ha Tinh is 1.06
times higher and the tourist revenue of accommodation places is 3.48 times higher
than that of Quang Binh, but the number of international tourists to Quang Binh is
approximately 3.8 times higher than that of Ha Tinh.

3.2.6.3. Current situation of the capacity of inspection, supervision,
expertise and evaluation of the authorities of Ha Tinh province
Current situation of inspection, supervision, expertise and evaluation
capacity of the authorities of Ha Tinh province is assessed through indicators of
inspection, supervision, expertise and evaluation capacity of the authorities of Ha
Tinh province (including controlling corruption in the public sector, building and


21
organizing the implementation of legal documents). Results of the evaluation of
the indicators "Controlling corruption in the public sector" in the Central Coast
region (12 provinces) over 3 time points of 2012, 2015 and 2018 show that Ha
Tinh has no stability in terms of rank, because when it ranked the 9th place (2012),
it increased by the 2nd place (2015), but then decreased by 7th place (2018).

3.3. Some retrictions and causes of the competitiveness capacity of the

authorities of Ha Tinh province
(1) Retrictions and their causes on the capacity to exploit, attract and
use high-qualified human resources of the authorities of Ha Tinh province; (2)
Restrictions and their causes on the capacity to exploit, attract and use modern
technological and financial investments of the authorities of Ha Tinh province;
(3) Retrictions and their causes on the cooperation and connetion capacity of
the authorities in Ha Tinh province; (4) Retrictions and their causes on the
capacity to respond to incidents and events of the authorities of Ha Tinh
province; (5) Retrictions and their causes on creativity and innovation capacity
of the authorities of Ha Tinh province; (6) Retrictions and their causes on
operation and management capacity of the authorities of Ha Tinh province.
Chapter 4
VIEWPOINTS, ORIENTATIONS AND SOLUTIONS TO ENHANCE
THE COMPETITIVENESS CAPACITY OF HA TINH PROVINCE
IN THE PERIOD 2019-2030
4.1. International and domestic contexts affect the competitiveness of
Ha Tinh province in the period 2019 - 2030
(1) Domestic context affects competitiveness capacity of Ha Tinh province;
(2) International context affects competitiveness capacity of Ha Tinh province.
4.2. Viewpoints and orientations on enhancing the competitiveness
capacity of Ha Tinh province in the period 2019 - 2030
4.2.1. Viewpoints on enhancing the competitiveness capacity of Ha
Tinh province in the period 2019 - 2030
First, the authorities of Ha Tinh province need to strengthen its ability


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to transform existing advantages into competitiveness advantage and create
new incentives for socio-economic development. Secondly, the authorities of
Ha Tinh province need to connect its role of economic management with the

activity of increasing endogenous capacity of Ha Tinh’s economy. Thirdly, the
authorities of Ha Tinh province need to implement synchronously and
creatively the economic policies of the Central Government into the specific
circumstances. Fourthly, the authorities of Ha Tinh province need to associate
economic development with human development and cultural infrastructure
development, and improving the life quality of their people.

4.2.2. Orientations on enhancing the competitiveness capacity of Ha
Tinh province in the period 2019 - 2030
First is to enhance the provincial government's ability to attract and
use high quality human resources. Secondly, is to enhance the capacity of the
provincial government to exploit, attract and use modern technological and
financial investment resources. Thirdly, is to enhance the cooperation and
connection capacity of the provincial government. Fourthly, is to enhance the
capacity to adapt to incidents and events of the provincial government. Fifthly,
is to enhance the creativity and innovation capacity of the authorities of Ha
Tinh province. Sixthly, is to enhance the operation and management capacity of
the provincial government. Seventhly, is to enhance the quality of spiritual and
material life for the people in Ha Tinh; maintain stable political situation,
ensure order and security, safety and social security in the province.
4.3. Some objectives need to be done to improve the competitiveness
capacity of Ha Tinh
Objectives to be achieved to enhance competitiveness capacity of Ha Tinh
province include economic restructuring, environmental and social economic.

4.4. Some solutions to enhance the competitiveness capacity of Ha Tinh
province in the period 2019 - 2030
4.4.1. Attracting talents and high-qualified human resources
The authorities of Ha Tinh province need to attract talents to work and

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keep them to work for long-term to meet the requirements of international
integration. At the same time, Ha Tinh province needs to proactively train
high-qualified human resources in provine to meet the requirements of
transforming the economy into digital convergence in the future.
4.4.2. Focus on developing high-tech agriculture towards green agriculture
Ha Tinh should proactively invite for investment in high-tech agriculture
in the direction of green agriculture to develop endemic agricultural products with
high market value and competitiveness capacity in the field of agriculture.

4.4.3. Promote public-private connection and cooperation, multilateral
cooperation to enhance the endogenous capacity of the economy of Ha Tinh

Ha Tinh needs to promote the development of a Public - Private Partnership model (PPP), especially in infrastructure development, in
agriculture and in environmental proesss. In addition, Ha Tinh needs to
strengthen and multilateral connection and cooperation between provinces
in the Central Coast region and international cooperation to enhance the
endogenous capacity of Ha Tinh’s economy in the following time.
4.4.4. Completing the work of predicting and building hypothetical
situations, incidents and events
Predicting and building hypothetical events, incidents and situations play
an important role in effective and timely handling and adaptation when they occur
in reality; thereby helping to enhane competitiveness capacity of Ha Tinh.

4.4.5. Create an ecological environment to develop innovation and creativity
The creativity and innovation capacity of the authorities of Ha Tinh
province is only enhanced, when it is nurtured in an appropriate ecological
environment. Creating an ecological environment for the development and
enhancing the creativity and innovation capacity of the provincial government

will help to develop the province's creativity and innovation activities.

4.4.6. Enhancing the serving and construction capacity of the
authorities of Ha Tinh province
Enhancing the serving and construction capacity of the provincial