Cải cách thủ tục hành chính trong đầu tư tại tỉnh thái nguyên tt tiếng anh

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INTRODUCTION
1. Background and rationale of the study
Administrative procedure reform in Thai Nguyen province has
been implemented and achieved remarkable results in recent years.
However, administrative procedure reform in the field of investment
still faced certain limitations, such as the direction was not close
enough at several units; the review of administrative procedures in
investment was not implemented frequently; low-efficient application
of e-government, low percentage of e-document; enterprises spend a
lot of time and costs in implementing their investment, especially
procedures related to land, leading to the low efficiency of
investment attraction in Thai Nguyen province; the "one-door" and
"one-stop-shop” policies still has limitations…
The 2018 Provincial Competitiveness Index (PCI) by Vietnam
Chamber of Commerce and Industry and the United States Agency
for International Development (USAID) reported that Thai Nguyen
ranked 18th out of 63 cities and provinces, three ranks lower than
2017. Thai Nguyen was classified into group of good administrative
quality with total score of 64.24 points (reduced 0.21 points
compared to 2017) (VCCI, 2019).
Hence, studying the current status of administrative procedure
reform in investment, thereby proposes recommendations to improve
administrative reform in investment in Thai Nguyen province is
urgent and meet the scientific significance. Based on the above
arguments, the research entitled “Reforms of Administrative
procedures in investment in Thai Nguyen province” was selected as
my dissertation in economic management.
2. Objectives
2.1. General objectives
The research is conducted with the general objectives of

examining current status of administrative reform in investment in
Thai Nguyen province and proposes recommendations to boost the
administrative reform, improve investment climate, enhance
provincial competitiveness capacity, attract more investment and
contribute to socio-economic development of Thai Nguyen province.


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2.2. Specific objectives
- To systematize theoretical framework and clarify practical
experiences on administrative procedure reform in investment;
- To analyze and evaluate the results of administrative procedure
reform in investment in Thai Nguyen province, analyze enterprises’
evaluation on administrative reform in investment, thereby identify
factors affecting reforming administrative procedures in investment
in Thai Nguyen province;
- To analyze factors affecting investors’ satisfaction in
implementing administrative procedures in investment in Thai
Nguyen province;
- To propose recommendations to reform administrative
procedures in investment in Thai Nguyen province from now on to
2025.
3. Research questions
(1) What is major content of the theory and practice of
investment administrative reform?
(2) What is the current situation of administrative procedure
reform in investment in Thai Nguyen province?
(3) What are the major factors affecting the administrative
procedure reform in investment in Thai Nguyen province?
(4) What are the necessary recommendations to reform

administrative procedures in investment in Thai Nguyen province in
coming time?
4. Subject and scope of the study
4.1. Subject of the study
The dissertation focuses on studying theoretical basis and
practical issues on administrative procedure reform in investment in
Thai Nguyen province.
4.2. Scope of the dissertation
- Scope: studying administrative procedure reform in investment
taking place in Thai Nguyen province.
- Time scope:
+ For secondary data: The data was collected during the period
2014-2018.


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+ For primary data: data was collected in 2019 by conducting
surveys respondents related to administrative reform in investment in
Thai Nguyen province.
- Content scope: The dissertation focused on studying theoretical
background, practical experiences and the status of administrative
procedure reform in Thai Nguyen province. Investment activities
include both foreign and domestic investment implemented in Thai
Nguyen, from carrying out investment procedures to doing business
of enterprises.
5. Contributions and significance of the dissertation
5.1. Contributions
The dissertation has systematized the theoretical background of
administrative procedure reform in investment, namely: clarifying the
definition, major contents, and factor affecting administrative

procedure reform in investment.
The dissertation has summarized and classified Vietnamese
administrative regulations in investment into two criteria: projects
and post-investment activities.
The dissertation has summarized all procedures related to
investment based on the settlement authority of provincial People’s
Committee, and generalized into a multi-step investment procedure
with related participants.
Analyzing and clarifying the current status of administrative
procedure reform in investment in Thai Nguyen province from
different aspects, including: reviewing and simplifying administrative
procedures; publicizing and announcing administrative procedures;
receiving and processing information, recommendations on
administrative procedures; inspecting and supervising administrative
procedures. In addition, the dissertation has evaluated the satisfaction
of enterprises and pointed out 6 factors affecting their satisfaction on
implementing administrative procedures in investment in Thai
Nguyen province.
Finally, the dissertation has proposed recommendations and
solutions to promote administrative procedures in investment, in
order to attract more investment, improve development quality and to
create jobs in Thai Nguyen province in the future.


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5.2. Significance of the dissertation
The dissertation has clarified and enriched the theoretical
background and practice on administrative procedure reform in
investment. This is a useful reference for further studies on
administrative procedure reform generally and administrative reform

in investment particularly.
The dissertation has examined current issues in Thai Nguyen
province particularly and in Vietnam generally: reforming
administrative procedures in investment. This is considered as a core
issue in attracting investment capital in localities generally and in
Thai Nguyen province particularly.
The dissertation provides a detailed report on the current
situation, the leading and directing activities of administrative
procedure reform in investment in recent years. The report also
proposes solutions to improve and promote the process of
administrative reform in investment in Thai Nguyen province in the
future, and to attract investment capital for the province.
The dissertation results will clarify the point of views and
policies of the Communist Party, the State as well as Thai Nguyen
province in improving the investment climate and reforming
administrative procedures in investment. The dissertation results also
provide recommendations of investors to the leaders of Thai Nguyen
province as well as departments and agencies related to the reform of
administrative procedures in investment in Thai Nguyen province.


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6. Analytical framework
Quality of
cadres and
civil servants

Propagation on
administrative
procedure reform

in investment

Leading role of
local leaders

Institutions &
regulations system on
administrative
procedures in investment

Investment facility
to implement
administrative reform
in investment

ADMINISTRATIVE PROCEDURE
REFORM IN INVESTMENT
- Reviewing and simplifying
administrative procedures in investment;
- Implementation of administrative
procedure reform in investment;
- Receiving, handling feedback and
recommendations on administrative reform
in investment;
- Inspecting and supervising the implementation
of administrative procedure reform.

Enterprises’
satisfaction on
implementing

administrative
procedure
reform in
investment
- Facilities
- Service
attitude
- Feedback
information
- Time for
administrative
procedure
- Procedures
- Cost

SOLUTIONS TO IMPROVE ADMINSTRATIVE PROCEDURE
REFORM IN INVESTMENT

Figure 01. Analytical framework on administrative procedure
reform in investment
7. Dissertation’s structure
In addition to the introduction, conclusion and references, the
dissertation is divided into five chapters as follows:
Chapter 1: Literature review
Chapter 2: Theoretical background and practice on
administrative procedure reform in investment
Chapter 3: Research methodology
Chapter 4: Current situation of administrative procedure reform
in investment in Thai Nguyen province
Chapter 5: Solutions and recommendations to improve

administrative procedure reform in investment in Thai Nguyen province


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Chapter 1
LITERATURE REVIEW
1.1. International literature review
In the world, previous studies mainly focused on public
administrative reform, not many studies focused on administrative
reform such as UNDP (2007), Gov (2012), UN DESA (1997), Wang
(2010), OECD (2000), etc.
A study by Morisset and Neso (2002) was conducted in 32
developing countries on the status of administrative procedures in
investment. Their results show that there is a big difference among
countries in the cost of implementing administrative procedures, of
which the lowest is in South Africa, Zambia and Chile, while the
highest cost is in Mozambique, Turkey and Romania. Land access
and land clearance is the area that takes the most time for investors.
The costs of implementing administrative procedures are positively
related to the level of corruption.
Jacobs and Coolidge (2006) provide an overview of
administrative procedure reform in investment in the world. The
study emphasizes that the costs of administrative procedures in
investment in developing countries are much higher (often three
times higher) than in developed countries. The administrative
procedures that investors and businesses often face difficulties are
approval and licensing of business registration, site development and
environmental permits.
1.2. Domestic literature review
Studies on administrative reform have been conducted since the

early 1990s in the context of a joint study on administrative reform
during the process of renovation in Vietnam. Major studies related to
this topic include the researches of Nguyen Van Tham (2002),
Painter (2003), OECD (2011), Nguyen Tran Sy (2007), Pham Thi
Lan Huong (2012) , Vu Quynh (2017), World Bank (2011), Ta Thi
Bich Ngoc (2016)... Outstanding researches are:
Do Minh Tri and Bui Bang Doan (2014) evaluate the current
situation and propose solutions to promote administrative reform in
investment in Hung Yen province. Their results show that
administrative reform has made a breakthrough in many fields. The
operation of administrative agencies was smooth, the situation of


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working stagnation reduced sharply. These improvements create an
increasingly professional administration, contributing to improve the
competitiveness in attracting investments in Hung Yen province.
However, in order to implement administrative reform more strongly,
it is necessary to have more drastic direction from the provincial
leaders, continue to maintain well the “one-stop” agencies and
establish a "one-stop shop", strengthen the dialogue mechanism with
enterprises…
Nguyen Xuan Bang and Truong Xuan Vy (2017) examine the
status of administrative reform in the field of investment in Ninh
Thuan province. The research reveals three main results on
administrative procedure reform: Review and launch regulations to
simplify administrative procedures; publicize administrative
procedures in various forms and implement key solutions to
renovating administrative reform.
1.3. Comments

By analyzing previous studies on administrative procedure
reform generally and administrative procedure reform particularly,
there are key characteristics that the author can use for references,
select and apply in this dissertation. However, the author considers
that there are still unresolved issues related to administrative reform
in investment, such as the number of published studies on
administrative procedure reform in investment is still restricted, not
yet systematically and comprehensively studied. In Thai Nguyen
province, there has not been any scientific research on reform of
administrative procedures in investment. Therefore, the dissertation
focuses on the following main contents:
- Clarifying the theoretical basis on administrative procedures
reform in investment.
- Clarifying the administrative procedures reform in investment
in Thai Nguyen province, focusing on the following contents:
reviewing and publicizing administrative procedures in investment,
handling feedbacks and recommendations in the process of
implementing administrative procedures in investment, inspecting
and supervising the implementation of administrative procedures in
investment ...


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- Evaluating enterprises' satisfaction toward the implementation
of administrative procedures in investment in Thai Nguyen province.
- Proposing solutions to accelerate reform of administrative
procedures in Thai Nguyen province.
Conclusion of Chapter 1
Chapter 2
THEORETICAL BACKGROUND AND PRACTICE ON

ADMINISTRATIVE PROCEDURE REFORM IN INVESTMENT
2.1. Theoretical background of administrative procedure
2.1.1. Definitions
2.1.2. Classification
2.1.3. Characteristics
2.2. Administrative procedure reform in investment
Administrative procedure reform in investment is the measures
aiming at improving one or more stages of administrative procedures
in investment in order to improve the capacity, effectiveness and
efficiency to serve enterprises in the initial process of investment to
develop production and business.
2.2.2. Characteristics of administrative procedure reform in
investment
Firstly, reform of administrative procedures in investment is
associated with the administrative - legal competence of State
administrative agencies in charge of investment.
Secondly, reform of administrative procedures in investment is
an activity that serves management activities in the field of
investment.
Thirdly, all subjects have equal rights in accessing and using the
results of administrative procedure reform in investment.
Fourthly, implementation of administrative procedure reform in
investment is very diverse and complex. There are many agencies
involved in the implementation.
2.2.3. Classification of administrative procedures in investment
Group 1: Procedures related to approval of enterprise
establishment.


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Group 2: Procedures related to land access, infrastructure
development and access to utilities.
Group 3: Administrative procedures in the process of investment,
including tax declaration, tax payment and social security procedures
(health insurance, social insurance ...), health inspection procedures,
environment, fire protection, procedures for import and export,
exchange rate... procedures related to adjustment of investment and
business fields, adjustment of investment capital, splitting, capital
transfer...
2.2.4. Contents of administrative procedure reform in investment
- Reviewing and simplifying administrative procedures in
investment
- Announcing and publicizing administrative procedures in
investment
- Implementing administrative reform in investment
- Receiving, handling feedback and recommendations on
administrative procedures in investment
- Inspecting and supervising the implementation of
administrative procedure reform in investment
2.2.5. Factors affecting administrative procedure reform in
investment
- Quality of cadres and civil servants;
- Propagation on administrative procedure reform in investment;
- Leading role of local leaders;
- Institutions & regulations system on administrative procedures
in investment;
- Investment facility to implement administrative reform in
investment.
2.3. Practical basis on administrative procedure reform in
investment

2.3.1. Experiences of Quang Ninh province
2.3.2. Experiences of Bac Ninh province
2.3.3. Experiences of Da Nang city
2.3.4. Experience lessons on administrative procedure reform in
investment for Thai Nguyen province
Conclusion of Chapter 2


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Chapter 3. RESEARCH METHODOLOGY
3.1. Approach methods
System, private-public and participatory approaches have been
used in the dissertation
3.2. Data collection method
The dissertation selected 3 site studies including Thai Nguyen
city, Vo Nhai district and Pho Yen town to collect the data with the
total of 545 samples. Besides, the dissertation also collected the
opinion of experts as well as relevant secondary data.
3.3. Data processing
3.4. Data analysis
The dissertation used the descriptive statistics, time-series data
analysis and factor analysis to analyse the data.
3.5. Research indicators
3.5.1. Indicators for evaluating current situation of investment,
reform administrative procedures in investment
3.5.2. Indicators for factors affecting administrative procedure
reform in investment
3.5.3. Indicators for investors’ satisfaction of administrative
procedure reform in investment
Conclusion of Chapter 3

Chapter 4
CURRENT SITUATION OF ADMINISTRATIVE
PROCEDURE REFORM IN INVESTMENT IN THAI NGUYEN
PROVINCE
4.1. Overview of Thai Nguyen province
4.1.1. Natural conditions characteristics
4.1.2. Socio-economic characteristics
4.1.3. Overview of enterprises operating in Thai Nguyen province
4.2. Current situation of administrative procedure reform in
investment in Thai Nguyen province
4.2.1. Reviewing and simplifying administrative procedure
4.2.1.1. Results of reviewing and simplifying administrative
procedures
Over the period of 2014-2018, People's Committee of Thai
Nguyen province issued decisions announcing the list of


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administrative procedures under the management functions of the
Departments, of which 2,155 administrative procedures, in which
1,137 administrative procedures were newly issued, 1,018
administrative procedures were abolished. In addition, the Provincial
People's Committee continually inspect and supervise the
implementation of administrative procedures at provincial, district
and commune levels; publicize hot-line and the address of the agency
receiving feedbacks through Thai Nguyen portal to receive feedback
and recommendations of individuals and organizations on
administrative regulations.

Figure 1: Number of newly issued and abolished administrative
procedures in Thai Nguyen province, 2014-2018
(Source: Reports on PAR implementation of Thai Nguyen People’s Committee)

4.2.1.2. Evaluation of enterprises on administrative reform
Enterprises’ evaluation on "documents related to administrative
procedures in investment", including full and detailed issuance,
public listing and details, timely updates, are slightly lower
(corresponding to 3.67; 3.66 and 3.64) but both are quite good. The
surveyed enterprises also evaluate the level of clarity, comprehension
and ease of implementation of the administrative procedures in the
investment higher than the average. However, this score is the lowest
in comparison with the remaining criteria. This shows that the
administrative procedures in the ministry have not met the
expectations of many enterprises.
4.2.1.3. Evaluation of local civil servants on administrative reform
The results of a survey of 65 local officials on the level of
administrative reform in investment are shown in Table 4.7. Most


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evaluations on the level of procedural reform including legal
document system, decentralization of administrative procedures
implementation are evaluated at a good level (with an average of
3.86) and reasonable (average score of 3.85). Although there are still
several obstacles in the process of organization due to the pressure of
administrative reform, local officials and public officials still
promptly handle inadequacies (average score 3.69).
4.2.2. Announcing, publicizing investment administrative
procedures

4.2.2.1. Announcement of administrative procedures for investment
Total number of administrative procedures in the announced
investment portfolio is 110, specifically as follows:
- (1) Investment field in Vietnam: 22
- (2) Official Development Assistance: 04
- (3) Investment outlays: 04
- (4) Non Governmental Organization’s aid: 01
- (5) Establishment and operation of enterprises: 60
- (6) Establishment and operation of unions of cooperatives: 19.
4.2.2.2. Publicizing administrative procedures in investment
Administrative regimes in the field of investment, after being
published on the portal, at the one-stop section, are updated,
integrated and published on national administrative procedure
databases.
4.2.2.3. Evaluation of enterprises on information access to
administrative procedures in investment
The survey of enterprises in terms of investment information
access, especially projects conducted in Thai Nguyen province (Table
4.8), show that the average score ranges from 3.35 to 3.60 which is
correspond to good level. The criterion "Adjustment of investment
projects is made easily" is evaluated with the lowest score (3.35) in
comparison with other criteria. This can be completely explained by
the submission process in which project documents should be fully
prepared and strictly followed.
4.2.2.4. Evaluation of civil servants on information about
administrative procedures in investment
The results reveal that local cadres and civil servants highly
appreciate the timeliness of information on administrative procedures

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in investment published on the official website of the People's
Committee of Thai Nguyen province, and the Department of
Planning and Investment, with an average score of 3.97.
4.2.3. Implementation of administrative reform
4.2.3.1. The process of implementing administrative procedures in
investment
Time permission to implement administrative procedures in
investment is also publicly listed. Specifically, projects registration to
receive investment policy decisions within 60 working days. The
environmental impact assessment of investment projects has a 55-day
implementation period. Land use price determination has 75-day
implementation duration. Issuing land use certificate issued by the
Department of Natural Resources and Environment is within 43 days.
Meanwhile, the investment certificate has an implementation period
of 10 days. Thus, to implement an investment project in Thai Nguyen
province, the investor also takes nearly 1 year to carry out the
procedures.
4.2.3.2. Results of implementing administrative reform in investment
The results of administrative procedures related to enterprises
investors in Thai Nguyen province over the period of 2014-2018
show that, there are 3064 procedures related to enterprise
establishment (including private enterprise, single limited liability
company, two-member limited liability company and shareholding
company). The number of procedures for establishing a new
enterprise is increasing, from 447 procedures in 2014 to 731
procedures in 2018, focusing mainly in Thai Nguyen city and Pho
Yen town.
4.2.3.3. Evaluation of enterprises on the implementation of
administrative procedures reform in investment

The results show that business registration procedures are
evaluated to be the best, followed by tax procedures (including tax
declaration, payment, refund, and exemption), changes in business
registration information, establishment/termination of operations of
branches and representative offices. Procedures related to land and
constructions were evaluated at average level with the mean values of
3.38 and 3.36, respectively.


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Table 1: Enterprises’ evaluation on administrative procedure
reform in investment in Thai Nguyen province
Order
1

Indicator

Mean Explanation

New enterprise establishment
3.84
Good
Tax declaration, payment, refund, and
2
3.79
Good
exemption
Change of business registration content:
3
3.66

Good
name, address, charter capital, industry
Establishment/termination of operations
4
3.57
Good
of branches and representative offices
Administrative procedures related to
5
3.46
Fair
utilities (electricity and water)
6
Land-related procedures
3.38
Medium
7
Construction-related procedures
3.36
Medium
Source: Survey by the author, 2019
However, enterprises’ evaluation on the level of cumbersome,
overlapping in administrative procedures also indicates some
limitations. Although the procedures for enterprise registration have
improved, there are still many cumbersome overlaps. Similarly, for
the remaining procedures related to taxes, changes in business
registration, administrative procedures related to utilities, land and
construction are still cumbersome. These limitations affect time and
business performance of the enterprises.
4.2.4. Receiving and handling feedback and recommendations on

administrative procedures in investment
4.2.4.1. Receiving and handling feedback and recommendations of
civil servants
Regarding the evaluation of leaders on the attitudes of cadres
and civil servants as receiving and handling administrative
procedures in investment, they evaluate with an average score of 4.0,
corresponding to good level. The attitudes of Thai Nguyen's cadres
and civil servants, which are assessed by their leaders and colleagues,
are at a good level. It should be noted that the relevance of the
recommendations and reform on administrative procedure in
investment from enterprises and investors is only above average. This


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is explained by the difference between the expectations of enterprises
and investors and the actual capacity of officials in charge of
investment.
4.2.4.2. Reporting enterprises’ recommendations on administrative
procedures in investment
The survey results show that out of 545 interviewed enterprises,
there are 73 enterprises sent feedback on the change or reform of
administrative procedures in investment to local authority,
accounting for 13.39%.
The recommendations of enterprises operating in Thai Nguyen
province are mainly reflected directly to the administrative officers
handling (44 times) and sent to the suggestion box (26 times). The
options sent by post or email were not selected by many businesses to
reflect issues related to administrative procedures in investment.
4.2.5. Inspecting and supervising the implementation of
administrative reform

4.2.5.1. Organize the inspection and supervision of implementation of
administrative procedures reform in investment
4.2.5.2. Evaluation of leaders on inspection and supervision of
implementation of administrative procedures reform in investment
Results of interviews with provincial leaders on how often they
supervise and inspect the implementation of administrative
procedures in investment after reform with an average mean of 3.40
(a scale of 1 to 5 corresponding to “rarely” to “very frequently”),
which corresponds to a rating that is fairly frequent. Thai Nguyen
People's Committee issues an annual plan to inspect and supervise
the implementation of administrative procedures, implement the
"one-stop" and "one-stop-shop" mechanism related to administrative
procedures. In addition, the People’s Committee also establishes
delegations to evaluate, inspect and supervise the implementation of
administrative procedures of agencies and departments related to the
field of investment.
4.3. Factors affecting administrative procedure reform in
investment
4.3.1. Quality of cadres and civil servants
4.3.2. Propagation on administrative procedure reform in
investment
4.3.3. Leading role of local leaders


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4.3.4. Institutions & regulations system on administrative
procedures in investment
4.3.5. Investment facility to implement administrative reform in
investment
4.4. Enterprises’ evaluation on administrative procedure reform

in investment in Thai Nguyen province
4.4.1. Description of variables
4.4.1.1. Facilities
4.4.1.2. Service attitude
4.4.1.3. Feedback information
4.4.1.4. Time for administrative procedure
4.4.1.5. Procedures
4.4.1.6. Cost
4.4.1.7. General satisfaction
4.4.2. Reliability analysis
The dissertation used Cronbach’s Alpha to assess the reliability
of the variables. The results show that estimated model can consist of
7 factors, of which 6 factors are independent variables. They are:
facilities, service attitude, feedback information, time for
administrative procedure, procedures, and costs. These variables will
be included in the Exploratory Factor Analysis (EFA).
4.4.3. Exploratory Factor Analysis result
Firstly, this research uses Exploratory Factor Analysis to test the
scale validation of variables (including: facilities, service attitude,
feedback information, time for administrative procedure, procedures,
costs, and general level of satisfaction). More specifically, Principal
Axis Factoring with Promax rotation is employed because this
methodology reflecting data structure is more accurate than the
principal components analysis with varimax rotation. The scale is
acceptable when the cumulative percentage of variance extracted is
greater than 50%. The results are presented in the following table:
Table 2: Results of EFA analysis of variables
Variables

KMO

Eigenvalue

Facilities
Service attitude

0.789
0.816

3.323
3.554

Average Variance
Note
Extracted
58.511
Accepted
51.332
Accepted


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Feedback infor.
Time
Procedures
Costs
Satisfaction

0.701
0.791

0.868
0.832
0.862

2.074
2.854
3.281
2.896
3.035

53.756
61.801
57.477
63.362
50.936

Accepted
Accepted
Accepted
Accepted
Accepted

(Source: Data analysis by the author)
After testing each scale, this research use EFA for the whole model
(include 7 scale). The results are presented in the following table:
Table 3: KMO and Bartlett's test
Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy
Appox. Chi-Square
Bartlett's Test of Sphericity
Degree of freedom

Sig.

0.820
8754.96
496
0.000

(Source: Data analysis by the author)
The result of KMO test is 0.820, satisfying .5 ≤ KMO ≤ 1. The
results reveal that using Factor Analysis is suitable. Bartlett's Test of
Sphericity with significant value is 0.000 < 0.05. Therefore, this
indicates that the factor analysis is valid.
There are 32 observations used to measure 7 factors. The
Eigenvalue of variance extracted of the 7th factor is 1.324 which is
greater than 1, and the cumulative of rotation sums of squared
loadings is 57.663% >50%. These results match requirement. This
means that observations (factors) can explain 57.66% changes in
dependent variables (satisfaction)
Table 4: Eigenvalues
Component
1
2
3
4
5
6
7
8
9
10

11
12
13
14
15
16
17
18
19
20

Total
5.999
3.480
2.987
2.783
2.517
2.234
1.324
0.763
0.752
0.742
0.646
0.624
0.572
0.553
0.522
0.495
0.474
0.434

0.425
0.404

Initial Eigenvalues
% of
Cumulative
variance
%
18.748
18.748
10.875
29.623
9.334
38.957
8.698
47.655
7.866
55.522
6.980
62.501
4.138
66.640
2.386
69.025
2.349
71.375
2.320
73.695
2.018
75.712

1.951
77.663
1.787
79.450
1.730
81.180
1.631
82.811
1.546
84.357
1.481
85.838
1.357
87.195
1.330
88.524
1.262
89.786

Extraction Sums of Square Loading
% of
Cumulative
Total
variance
%
5.568
17.401
17.401
3.036
9.486

26.888
2.603
8.133
35.021
2.424
7.576
42.597
2.140
6.688
49.285
1.798
5.619
54.904
0.883
2.759
57.663


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Component
21
22
23
24
25
26
27
28
29
30

31
32

Total
0.380
0.361
0.324
0.310
0.287
0.277
0.268
0.254
0.252
0.226
0.203
0.128

Initial Eigenvalues
% of
Cumulative
variance
%
1.187
90.973
1.127
92.100
1.014
93.114
0.968
94.082

0.897
94.980
0.865
95.845
0.836
96.681
0.795
97.476
0.787
98.263
0.706
98.969
0.633
99.601
0.399
100.000

Extraction Sums of Square Loading
% of
Cumulative
Total
variance
%

(Source: Data analysis by the author)

There are 7 factors representing the scales in the model.
Observations, which are extracted into the factors, have factor
loading greater than 0.5.
Table 5: Rotated Component Matrix

Obs.
TDPV2
TDPV1
TDPV3
TDPV6
TDPV5
TDPV4
CSVC5
CSVC2
CSVC1
CSVC4
CSVC3
QTTT1
QTTT4
QTTT2
QTTT3
QTTT5
CPHC3
CPHC2
CPHC1
CPHC4
TGGQ4
TGGQ3
TGGQ1
TGGQ2
MDHL5
MDHL3
MDHL1

1

0.791
0.775
0.749
0.689
0.688
0.593

2

3

Component
4

5

6

0.898
0.821
0.744
0.705
0.649
0.864
0.820
0.800
0.693
0.582
0.876
0.793

0.770
0.753
0.801
0.795
0.784
0.762
0.814
0.781
0.701

7


19
Obs.
1

2

3

Component
4

5

MDHL4
MDHL2
TTPH2
TTPH1

TTPH3

6
0.598
0.595

7

0.783
0.718
0.700
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.
(Source: Results from EFA method)

Based on the results of rotated component matrix, factors which
have factor loading greater than 0.5 are satisfied the requirement.
There are 7 factors with 32 items. These factors are named as follows:
Table 6: Analysis and name of factors affecting enterprises’
satisfaction on administrative procedure reform in investment
Factor

Item

Cadres and civil servants are polite when receiving
and returning administrative dossiers.
Cadres and civil servants are friendly, enthusiastic
when answering question and queries of the people
and businesses.
Cadres and civil servants do not cause harassment

Factor
and trouble for people and businesses.
1
Cadres and civil servants receive and process files
fairly among citizens and businesses.
Cadres and civil servants possess high professional
qualifications.
High morale and responsibility for the records of
people and businesses.
Room for receiving and returning results is
spacious, meeting the requirements.
Facilities and support conditions (waiting tables
and chairs, parking lots, fans, drinking water,
toilets…) are fully equipment and at good quality.
Factor
Administrative procedure map is clearly arranged
2
and easy to be observed.
Administrative procedure contents are publicly
listed, complete and clear.
The arrangement of reception and return results is
reasonable.
The requirements for the composition of
Factor administrative documents are reasonable.
3
The administrative procedures are open and
transparent.

Factor naming

Code

TDPV1
TDPV2

Service
Attitude
(TDPV)

TDPV3
TDPV4
TDPV5
TDPV6
CSVC1
CSVC2

Facilities
(CSVC)

CSVC3
CSVC4
CSVC5
QTTT1

Procedures
(QTTT)

QTTT2

20
Factor

Item

Factor naming

Code

The legal regulation on administration procedures
QTTT3
is appropriate.
Documents returned to people and businesses are
QTTT4
not incomplete and in erroneous.
Citizens do not need to go for administrative
QTTT5
procedures several times.
Fees and charges are posted publicly and fully.
CPHC1
Collecting fees and charges in accordance with
CPHC2
Factor regulations (with receipts).
Costs
4
Fees and charges for administrative procedures are
(CPHC)
CPHC3
reasonable.
No extra charges are required.

CPHC4
The waiting time for submitting the administrative
TGGQ1
procedures is reasonable.
Time for
The number of travel time to submit and receive
TGGQ2
Factor
administrative
the administrative procedures is reasonable.
5
procedure
Time to return results are quickly.
TGGQ3
(TGGQ)
The working schedule of the administrative
TGGQ4
procedure is appropriate.
Citizens and businesses can reflect and recommend
TTPH1
about administrative procedures.
Feedback
Factor Cadres and civil servants always receive feedback
TTPH2
information
6
and recommendations.
(TTPH)
Cadres and civil servants always respond to
TTPH3

suggestions and recommendations.

(Source: Results from EFA method)

For the satisfaction scale, the EFA analysis result indicates new
established factors, named “general satisfaction”.
Table 7: Analysis and name of satisfaction variable

Factor
7

You are satisfied with the attitude
civil servants.
You are satisfied with the
administrative procedures.
You are satisfied with the
procedures in investment.
You are satisfied with the time for
procedure in investment.
You are satisfied with the costs of
procedures in investment.

of cadres and
process

of

MDHL1
MDHL2

Level of
MDHL3
satisfaction
(MDHL)
administrative
MDHL4
administrative

administrative

MDHL5

(Source: Author’s classification)

4.4.4. Evaluation by the Confirmatory Factor Analysis
Confirmatory factor analysis of 7 factors with 32 items is
conducted by AMOS package. The results of EFA show that there


21
are 7 factors related to the satisfaction of enterprises and the model is
suitable with the surveyed data. The results of CFA are as follows:

Figure 2: CFA model results of factors affecting enterprises’ satisfaction
(Source: Author’s result analysis)
After using CFA, it is necessary to conduct major tests: model
fit, scale reliability, convergent validity, uniqueness, discriminant
validity.
* Test for model fit
Table 8: Indicators on model fit

Indicator
CMIN/DF
GFI
TLI
CFI
RMSEA

Value
2.070
0.910
0.937
0.945
0.044

(Source: Author’s result analysis)
The results in figure 2 show that the model is suitable with data,
Chi square value = 900.535; degree of freedom = 435; CMIN/df
=2.070 (< 3); P value =0.000. Other indexes are appropriate: TLI
=0.937, CFI =0.945, GFI = 0.910 (> 0.9), RMSEA = 0.044 (<0.05).


22
All weighted variables > 0.5; P value = 0.000 indicate that the
theoretical model is suitable with surveyed data.
.* Reliability Assessment of Scale
To evaluate the reliability of scale, the dissertation uses 3
indicators, including Cronbach’s Alpha coefficient, Composite
Reliability (CR) and Average Variance Extracted (AVE).
For Cronbach's Alpha coefficient: Cronbach's Alpha value of
this scale exceeded 0.7, which indicate that the scales are consistency

reliability.
For Composite Reliability and Average Variance Extracted, the
dissertation calculates these two indices. The results are shown in the
following table:
Table 9: Reliability and factor’ variance extracted
Average Variance
Composite Reliability
Factor
(C)
Extracted (VC)
TDPV
CSVC
QTTT
CPHC
TGGQ
MDHL
TTPH

0.851
0.852
0.870
0.874
0.852
0.838
0.776

0.490
0.548
0.575
0.634

0.592
0.509
0.537

(Source: Author’s result analysis)
As the value of composite reliability exceeds 0.5 and average
variance extracted exceeds 0.5, scale is considered as reliable. Hence,
it can be seen that most of composite reliability values are greater
than 0.7 and average variance extracted are greater than 0.5.
Therefore, the scales are reliable.
* Convergent validity
Convergent validity can be determined by calculating the
average variance extracted value of construct which is higher than 0.5
and significantly. Based on the resulted reported in Table 4.32, all the
standardized coefficients reflecting scale and factors exceed 0.59.
Therefore, all factors meet the convergent validity.
* Unidimesionality
A model which is suitable for the collected data is a necessary
and sufficient condition for the set of observed variables to be
unidimensionality unless the errors of the observed variables are
correlated (Steenkamp and Van Trijp, 1991). From research results,
the model is considered consistent with the data collected and there is


23
no correlation between measurement errors, so it can be concluded
that the model is unidimesionality.
* Discriminant validity
Discriminant validity is evaluated based on the following 2
analysis results:

(1) The correlation coefficient between the factors is different
from 1 or not and is statistically significant.
(2) Compare the square root value of the extracted variance
with the correlation coefficients of one factor with the other
factors.
From the analysis results on the AMOS, the dissertation
calculates the values showing that the correlation coefficient
between the pairs of factors is less than 1 and statistically
significant at 5%.
Next, the dissertation calculates the square root value of
extracted variance and the correlation coefficients of one factor
with the other factors. The results can be confirmed that the
factors achieve discriminatory validity.
Hence, the results of exploratory factor analysis to explore
the critical model of the scales of factors affecting the satisfaction
of enterprises with the process of implementing administrative
procedures in investment have affirmed the unidimesionality,
convergent and discriminant validity, reliability, and in
accordance with surveyed data.
4.4.5. Theoretical model testing and hypothesis using Structural
Equation Modeling (SEM)
4.4.5.1. Theoretical model testing


24

Figure 3: Results of SEM of theoretical model
(Source: Author’s calculation based on AMOS)

The results indicate that the model is suitable with data. Chisquare value = 900.535; degree of freedom = 435; CMIN/df =2.070

(< 3); P value =0.000. Other indexes are appropriate: TLI =0.937,
CFI =0.945, GFI = 0.910 (> 0.9), RMSEA = 0.044 (<0.05). All
weighted variables > 0.5; P value = 0.000 indicate that the theoretical
model is suitable with surveyed data.
Table 10: Results of SEM analysis
Relationship between
factors
MDHL
<--TDPV
MDHL
<--CSVC
MDHL
<--QTTT
MDHL
<--CPHC
MDHL
<--TGGQ
MDHL
<--TTPH

Estimate

S.E.

C.R.

P

Standardized

0.247
0.067
0.261
-0.137
-0.167
0.294

0.046
0.026
0.044
0.035
0.036
0.041

5.351
2.578
5.998
-3.972
-4.667
7.120

0.00
0.01
0.00
0.00
0.00
0.00

0.236
0.103

0.269
-0.167
-0.202
0.351

(Source: Author’s calculation based on AMOS)

Results of standardized estimation show that Service attitude
(TDPV), facilities (CSVC), Procedures (QTTT) and Feedback
information (TTPH) have positive effect on the level of enterprise


25
satisfaction in the process of administrative procedures whereas,
Cost (CPHC) and Time (TGGQ) have negative effect. The results
show that all relationship hypotheses in the model are proved by
SEM tested.
4.4.5.2. Bootstrap testing for the model
Bootstrap testing is applied to estimate the parameters in the
theoretical model that have been estimated by the Maximum
Likelihood method.
Table 11: Results of Bootstrap estimation with N = 1800
Parameter
MDHL <--- TDPV
MDHL <--- CSVC
MDHL <--- QTTT
MDHL <--- CPHC
MDHL <--- TGGQ
MDHL <--TTPH

SE
0.046
0.043
0.047
0.046
0.049
0.046

SE-SE
0.001
0.001
0.001
0.001
0.001
0.001

Mean
0.237
0.103
0.272
-0.165
-0.201
0.349

Bias
0.001
0.000
0.002
0.002
0.000

-0.002

SE-Bias
0.001
0.001
0.001
0.001
0.001
0.001

CR
1
0
2
2
0
-2

Source: Author’s calculation
Note: SE: Standard Error. SE - SE: Standard Error of Standard
Error. SE - Bias: Standard Error of Bias.

This research use Bootstrap estimation with N = 1800.
Results of average estimations and bias, SE -bias are presented in
table above. Bias and standard deviation bias appear insignificantly.
CR value < 2 indicates that bias is small and it shows that estimations
in the model are reliable.
4.4.5.3. Hypothesis testing
After the SEM is analyzed and tested, the next step is to review
the estimated values to examine causal relationships.

The results of standardized parameters of theoretical models,
the factors that affect the satisfaction of enterprises with the process
of implementing administrative procedures in investment are as
follows: feedback information (standardized parameter is 0.294),
procedure factor (standardized parameter is 0.261, positively
impact), service attitude (standardized parameter is 0.247,
positively impact), time for administrative procedure (standardized
parameter is -0.167, negatively impact on satisfaction level), cost
factor (standardized parameter is -0.137, also negatively impact to
satisfaction level) and finally is facilities (standardized parameter is
0.067 and positively impact on the satisfaction of enterprises with
the process of reforming administrative procedures in investment in
Thai Nguyen province).