VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES - NGUYEN MANH TUAN IMPROVING COMPETITIVENESS OF VIETNAM AIRPORT PORT CORPORATION TILL 2030 Branch: Economic management Code: 9.34.04.10 SUMMARY OF THE DISSERTATION TO BE ECONOMIC HANOI – 2019 Works completed at VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES Science instructor: 1.Associate Professor,PhD: Do Linh Hiep PhD: Vu Dinh Anh Reviewer 1: Reviewer 2: Reviewer 3: The thesis will be defended at the Academy-level Dissertation Committee at: Social Sciences Academy, 477 Nguyen Trai, Thanh Xuan, Hanoi, at: hour, day: month: 2019 Can find the thesis at:  Library of Social Sciences Academy  National Library of Vietnam PREAMBLE The urgency of the topic Globalization continues to develop, globalization issues are more complex than before, economic links are increasingly expanding, flexible and unpredictable The process of forming new generation of free trade areas has been accelerated in almost all regions of the world, especially Asia Pacific In the coming period, Vietnam's international integration process is more and more extensive and comprehensive, in addition to opening up many opportunities for development but also posing great challenges in the domestic market and competition International such as implementing free trade agreements, fulfilling commitments to join the World Trade Organization (WTO), commitments to high standards in Free Trade Agreements (FTAs) New generation Therefore, to fully and clearly assess the competitiveness of enterprises in general and Vietnam airport enterprises in particular to propose solutions to improve the competitiveness of they are necessary in the integration process Aviation is an important economic sector, the study of the competitiveness of aviation port enterprises aims to meet the demand of improving competitiveness in the global trend, competition is increasingly fierce now on After 30 years of reforming the aviation industry in Vietnam, there has been a rapid development and deepening international integration, including the port system and airport services, but the development is still not commensurate with the potential and also inferior to the regional airports such as Singapore Changi - Kuala Lampur - Malaysia, Bangkok Thailand One of the reasons for limiting the development is the limited quality of service, development environment Air services are not really competitive, so the competitiveness of the port system and airport services is not high Therefore, the researcher selects the topic "IMPROVING COMPETITIVENESS OF VIETNAM AIRPORT PORT TO 2030" as his research topic Objectives and research tasks of the thesis General objectives: Clarify the theoretical basis and practice of development and competitiveness of Vietnam airports; development status and competitiveness of Vietnam airports, proposing orientations and solutions to develop and improve the competitiveness of Vietnam's airports until 2030 Detail goal: First, Which factors affect the competitiveness of Vietnam Airport Corporation? Secondly, Assessing the competitiveness of Vietnam Airport Corporation by what criteria? Third, What is the status of Vietnam Airport Corporation in the context of sky opening? Fourth, What to to improve the competitiveness of Vietnam Airport Corporation until 2030 Research tasks of the thesis The thesis focuses on the following basic tasks Explain the theoretical issues about the competitiveness of the aviation industry and the airport enterprises Which factors affect competitiveness of Vietnam Airport Corporation 2 Research on the competitiveness of airports in some countries From that, some experiences have been drawn for enhancing the competitiveness of Vietnam Airport Corporation Analyze and evaluate the current state of competitiveness of Vietnam Airport Corporation Based on factors affecting ACV's competitiveness The thesis also builds and verifies the model of factors to improve competitiveness for Vietnam Airport Corporation From that, draw the results achieved and limited causes and problems raised for ACV by 2030 Proposing the perspective of direction and major solutions to improve the competitiveness of Vietnam Airport Corporation until 2030 Subjects and scope of research Research subjects Research objects: Competitiveness of Vietnam Airport Corporation Specifically, the thesis studies criteria to assess ACV's competitiveness, factors affecting competitiveness in ACV's service provision Research objectives: Analyze and evaluate ACV's current competitiveness and propose solutions to improve ACV's competitiveness to 2030 Research scope In terms of space: Research on enhancing the competitiveness of Vietnam Airport Corporation In terms of time: Analyze and evaluate the current situation of competitiveness of Vietnam Airport Corporation in the period of 20122017 and propose solutions to 2030 Scope of research: Mainly concentrated in Tan Son Nhat, Noi Bai and Da Nang international airports These are major and prestigious airports in the Vietnamese economy and often compete with airports in the region Methodology and research methods of the thesis In order to achieve the set objectives and tasks, the thesis combines the following research methods: analytical research methods, qualitative research methods, quantitative methods, comparison methods, and methods data processing, integrated analytical methods New scientific contributions of the thesis Clarify the rationale for development and competitiveness of enterprises in the context of Vietnam's increasingly improved market economy and globalization, increasingly fierce competition Clarify the development status and competitiveness of Vietnamese airports, the causes and experience of withdrawal Propose orientations and solutions to promote the development and improvement of the Competitive capability of Vietnam airports until 2030 Research results can be used as a reference when developing the development strategy of Vietnam Airport Corporation until 2030 At the same time, it can be used as a teaching material for specialized students of Airport Operations at Vietnam Aviation Academy Structure of the thesis In addition to the introduction and conclusion, the thesis consists of chapters, Chapter RESEARCH OVERVIEW ON COMPETITIVENESS AND COMPETITIVENESS OF THE AVIATION INDUSTRY, AIR PORTS 1.1 Study abroad situation  The "National Competitive Advantage" Michael E Porter  Book "Economic Benefits from Air Transport in Singapore"  “A study of the impact on the performance of Incheon International Airport by implementing a quality management system” IC ICAO's curriculum studies the Jordan Queen Alia International Airport (ICAO, OJAL, ATA: AMM) of Jordan 1.2 Research situation in Vietnam  2003 In 2003, UNDP and CIEM researched "Improving national competitiveness"  In 2004, author Tran Van Tung "Economic competition, national competitive advantage and company's competitive strategy"  2006 In 2006, Dr Vu Trong Lam - "Enhancing the competitiveness of companies in the process of international economic integration."  2006 In 2006, Tran Suu "Competitiveness of enterprises in the condition of globalization"  2008 In 2008, Dr Nguyen Huu Thang - "Competitiveness of Vietnamese companies in the current trend of international economic integration"  2010 In 2010, the Central Institute for Economic Management, Asian Competitiveness Institute and M.E.Porter had a seminar on "Competitiveness Report 2010"  2012 In 2012, Dr Pham Tat Thang - "Enhancing the competitiveness of enterprises in international integration"  Economic doctoral dissertation: "The most important directions and solutions - Business development services at airports of Vietnam" by Nguyen Huy Trang at Ha Noi National Economics and Economics University Noi (2004)  Economic doctoral dissertation: "Developing human resources in Vietnam aviation" by author Nguyen Thi Thanh Quy at the Vietnam Academy of Social Sciences, Academy of Social Sciences (2015)  Economic doctoral dissertation: "Marketing policy for passenger transport services for Vietnam Airlines in the context of international airline alliance" by Dinh Quang Toan University of Transport (2015)  Economic doctoral dissertation: "Improving the system to ensure flight activities in Vietnam" by author Bui Trong Chi, at the University of Transport (2017)  Scientific research topic: "Studying solutions to improve the competitiveness of Vietnam's civil aviation industry in the context of international integration" by Dr Dao Manh Nhuong, Vietnam Civil Aviation Department Head of Staff (2000 1.3 Conclusion drawn from the research overview and the problem of the thesis should continue to study 1.3.1 Unified points of competition in the airport sector - In general, domestic and international research projects on competitiveness at airports have come to agreement at some points:  About research theoretical framework: Most of the previous studies mentioned and analyzed the competitiveness model of Michael E Poter  Research methodology: Previous studies combined both qualitative and quantitative research methods,  Regarding solutions proposed: Solutions to improve the competitiveness of airports in each country have their own methods, The role of the Government in supporting airport enterprises to improve their capacity his competition 1.3.2 The points need to continue research on competition in the field of airports - In addition to the agreed points mentioned above, some contents continue to study: - Criteria for evaluating competitiveness at airports - The change in airport business environment from the monopoly of the State to other countries, competition after Vietnam joined WTO, CPTPP - Vietnam airport enterprises shifted from public utility to parent company model of subsidiaries, which shows the role of the Government in improving the competitiveness of Vietnam Airport Corporation  Adaptation and adaptation of Vietnam Airport Corporation with changes in the environment Hướng Direction and solutions to improve the competitiveness of Vietnam Airport Corporation Chapter RATIONALE AND PRACTICE ON ABILITIES COMPETITIVENESS AND COMPETITIVENESS OF THE AIR PORT 2.1 Reasoning on competitiveness 2.1.1 Theory of competition  Traditional concept  Modern concept 2.1.2 Theory of competitive advantage Professor Michael E Porter presents two famous works: Competitive Advantage (1985) and National Competitive Advantage (1990) 2.1.3.The levels of competitiveness  Competitive advantage with comparative advantage  Competitive advantage with strategy, competitiveness, competitivenes 2.1.4.Theory of service quality  Service concept  Features of the service  Service quality concept  Service quality characteristics 2.1.5.Quality of service from customer perception  Model of evaluation of technical quality, functional quality and image of Gronroos (1984) - SERV SERVPERF model of Cronin and Taylor (1992) 2.1.6.Enhancing the competitiveness of customers  Customer satisfaction  The relationship between service quality and customer satisfaction  Models of measuring customer satisfaction American Satisfaction Index (ACSI) model European satisfaction index model (ECSI) Quality model of SERVQUAL service 2.2.Competitiveness of airports 2.2.1.Characteristics of services at airports  Basic service  Value added services  Air port service has high safety 2.5.2.Internal factors 2.5.2.1 Financial capacity 2.5.2.2 Production capacity 2.5.2.3 Marketing 2.5.2.4 Research and development activities 2.5.2.5 Organization capacity and corporate governance 2.6.Experience in enhancing the competitiveness of services at airports of some countries in the world 2.6.1 Experience of improving the competitiveness of Singapore Changi Airport 2.6.2 Experience of enhancing competitiveness of Incheon Korea Airport 2.6.3 Experience of enhancing the competitiveness of Jordan's Amman Queen Alia International Airport 2.6.4 Experience in improving competitiveness of Japanese Haned International Airport 2.6.5 Lesson learned for Vietnam Airport Corporation First: Infrastructure such as roads, traffic must be conveniently connected with airports Second: Expanding public partnerships with flexible and effective operation Third: Human resource training in aviation must be focused Wednesday: Improve service quality and customer service Fifth: Organize flexible management model Friday: Increasing investment in research and development Saturday: Updating and innovating technology 11 Eighth: Building corporate culture with its own identity Ninth: Have a market development strategy Chapter CURRENT SITUATION OF COMPETITIVENESS AND CAPACITY OF VIETNAM AIR PORT CORPORATION 2012-2017 PERIOD 3.1 Overview of service market of Vietnam Airport Corporation in recent years 3.1.1 Overview of Vietnam Airport Corporation - Airport and airport concept - Legal status of airports -The process of formation and development of Vietnam Airport Corporation 3.1.2 Overview of the market of air transport at ACV Table 3.1 Passenger output and cargo traffic through ACV year 2012-2017 Calculation unit: 1000 TARGETS Calculation unit Passenger Guest Goods Ton 2012 2013 37.620 44.160 654 760 2014 47.847 869 2015 2016 63.123 81.100 94.000 973 1.121 Source: Author's summary based on the 2012-2017 audit report 3.2.Current situation of criteria affecting competitiveness Vietnam Airport Corporation -Quality of service - Service fee - Service distribution channel system 12 2017 1.338 -Service differences - Information and trade promotion - Brand and reputation of service 3.3.Current situation of factors affecting competitiveness of Vietnam Airport Corporation - Political environment - law  Socio-cultural environment  Economic environment  Technology environment  Natural environment  International environment  Competitive pressure from current competitors  Pressure from organization and corporate governance 3.4.Overview of service competition of Vietnam Airport Corporation with regional countries Figure 3.8: ACV passenger scale compared to regional airports in 2017 Source: 2017 annual reports of units, FPT Securities Research 13 Figure 3.9: ACV's revenue scale compared to regional airports in 2017 Source: 2017 annual reports of units, FPT Securities Research Figure 3.10: ACV's international passenger rate is lower than the region Source: 2017 annual reports of units, FPT Securities Research Figure 3.11: ACV's non-aeronautical revenue per person is low in the region in 2017 Source: 2017 annual reports of units, FPT Securities Research 14 Figure 3.12: ACV's international passenger service charge is high for the region in 2017 Source: 2017 annual reports of units, FPT Securities Research 3.5.Testing models of competitive advantage factors for businesses 3.5.1 Qualitative research - Design qualitative research - Results of focus group discussion - Scale development results - Results of in-depth interviews 3.5.2.Quantitative research - Study sample size - Design of research samples - Information about the research sample - Preliminary assessment of the scale - Scale test by linear regression analysis Predict linear regression equation of the form : HL = β1 TC + β2 DU + β3 HH + β4 DB + β5 CT 15 In it: HL (Satisfaction), TC (Reliability), DU (Response), HH (Tangible means), DB (Guarantee), CT (Sympathy) Linear regression analysis Passenger linear regression model The satisfaction of passengers is shown in the following equation HL = 0.386 TC + 0.319 DB + 0.208 CT + 0.148 DU + 0.125 HH -Testing difference of research samples Hypothesis: There are differences in airports for passenger Satisfaction Hypothesis: there are gender differences in passenger Satisfaction Hypothesis: there is a difference in age for passenger Satisfaction Hypothesis: there are differences in flight times for passenger Satisfaction Hypothesis: there is a difference in the purpose of flying for Passenger Satisfaction 3.5.3 Discuss construction results and verify factors that create competitive advantages for businesses 3.5.3.1 About factors that create a competitive advantage There must be a master plan for airports and airports by 2030 In the immediate future, to recover the land encroached on the airport area in Vietnam Distinctly, the airports share the military and civilian use Must upgrade 03 airports of Noi Bai, Da Nang and Tan Son Nhat in accordance with the development of society Regarding equipment, must meet the requirements of ICAO The directions to and from the airport must be convenient Areas for seeing off and taking tourists must be clear, clear and suitable to Vietnamese customs 16 About people must be trained and use modern equipment Regarding service style, must be quick to create favorable conditions for customers 10 Quickly resolve complaints of customers when carrying out procedures for flying 11 Quickly solve when customers' lost luggage 12 On the inside of the station, there must be ventilation and environmental factors focused 13 Tax-free shops at airports must be upgraded and diversified products, must be sold at lower prices than market prices, with high quality 14 Increasing service areas need attention such as restaurants, entertainment stalls, hotels need to be upgraded 15 Diversify entertainment types in the airport area 16 Create the difference of entertainment models at the airport 17 Repair workshops in international airports must be fully equipped with equipment for aircraft repair 18 Spare parts warehouse is always ready to serve the repair of aircraft operating at ACV 19 The team of engineers and workers working in the workshop must be really professional, creating satisfaction for customers 20 Taking customers' benefits is ACV's mindfulness 3.6 Overall assessment of the competitiveness of the Vietnam Air Port Company in recent years 3.6.1 These achievements Based on the assessment of the situation of ACV in the period of 20122017, we see that Vietnam's civil aviation industry, which is constituted by 17 many different professional fields, including main areas including: transport operation air freight; exploiting airports and airports; ensuring flight operations, being organized to operate in a unified and synchronous system, subject to the State management of civil aviation by the Ministry of Transport but directly the Vietnam Aviation Administration The total capacity passed by Vietnamese airports from million passengers in 2000 has increased to 94 million passengers by 2017 3.6.2 Limit In terms of infrastructure development investment depending on the State budget, complicated legal procedures affect the plan of implementing investment in aviation infrastructure On the other hand, the competition situation in the field of aviation in the world is increasingly fierce, facilities and technical technology of Vietnam aviation despite many efforts to improve but still much slower than countries in the region Besides, the human resource for air transport industry is very much lacking If not renewed, Vietnam aviation will face many difficulties and it is very difficult to compete 3.6.3 Causes of restrictions Due to the characteristics of the airport business sector mainly providing services to passengers, customers go and arrive through airports, depending on many factors, depending on the population, depending on economy, political institutions, policies from the Government, all kinds of fees at the airport In other words, depending on the population density and income level of the people Predictive analysis, investment in new technology equipment is also a major barrier of ACV, depending on the State budget 18 ACV's staff has not been trained in a methodical manner, depending on overseas schools, especially technical staff such as aircraft technicians, air traffic controllers and flight coordinator In recent times, the war in the Middle East, epidemics and natural disasters has also reduced the competitiveness of ACV 19 Chapter ORIENTATIONS AND SOLUTIONS TO IMPROVE COMPETITIVENESS OF VIETNAM AIRPORT PORT TO 2030 4.1 The international and domestic context affects competitiveness of Vietnam Airport Corporation 4.1.1.International context 4.1.2 Domestic context 4.1.3 Analysis of SWOT model of Vietnam Air Port Corporation Table 4.1 SWOT matrix STRENGTH WEAKNESS • ACV is the only unit managing and • Most of the service prices are operating the entire system of 22 managed by the State • Operational efficiency between civil aviation ports of Vietnam • The parent company system and its uneven airports: overloading at subsidiaries and affiliates provide a major international airports while full range of services at airports domestic airports operate at low • ACV possesses a special asset class capacity with great value and is continuously • Non-aviation segment invested and expanded, increasing performance is not commensurate the number of international airports with development potential and Group A airports to improve the • Large Japanese debt, so financial efficiency of exploitation income and financial costs are • ACV has strong financial potential, sensitive strong cash flow to fluctuations OPPORTUNITY THREAT 20 exchange rate • Economic recovery and middle • The political and economic class increase rapidly in Vietnam situation in the world is still • Vietnam tourism grew strongly, volatile averaging 21% per year • The weather situation is • Free trade is boosted increasingly complicated due to • Low-cost aviation has great climate change potential for growth as the proportion • Investment activities must follow of passengers using air routes in the regional development planning Vietnam is still low of the State • Airlines that travel to and from • Disease Vietnam expand their fleet and flight routes • Infrastructure to connect to airports is not improved 4.1.4 Issues set for Vietnam Airport Corporation under the competitive perspective till 2030 4.1.4.1 International Airport 4.1.4.2 Domestic airport 4.1.4.3 Other issues 4.1.5 Development direction of Vietnam Airport Corporation in the coming time 4.1.5.1 Orientation of market development 4.1.5.2 Orientation for developing air traffic network 4.1.5.3 Orientation of service development 4.1.5.4 Orientation of technology development 21 4.1.5.5 Orientation of planning and developing airports 4.1.6 The junta raises the competitiveness in providing services of Vietnam Airport Corporation Firstly, innovating thinking, proactively creating, focusing on operating with appropriate measures in each stage of development, which ensures sustainable development Secondly, focus on renovating the organizational structure and restructuring to promote the activeness of enterprises, adapt to the process of technological innovation and service development Thirdly, enhance and improve the efficiency of investment activities to improve the equipment technology level of ACV, considering it a breakthrough to continue to maintain a competitive advantage Fourth, respect the strategy of building and improving the quality of human resources Fifth, expanding the relationship with regional and international airports 4.2 Solutions to improve competitiveness in services of Vietnam Airport Corporation 4.2.1 Improve service quality 4.2.2 Market expansion and brand development of ACV 4.2.3 Complete the ACV organizational apparatus 4.2.4 Improve service delivery process 4.2.5 Study, invest in developing new services at airports 4.2.6 Enhance international cooperation 4.2.7 Synchronization and standardization of management mechanisms, financial regulations and network planning 4.3 Recommendations 22 4.3.1 Recommendations to the Government 4.3.2 Recommendations to ministries 4.3.2.1.For the Ministry of Finance 4.3.2.2.For the State Bank of Vietnam 4.3.2.3 For Ministry of Transport 4.3.2.4 For Vietnam Airport Corporation GENERAL CONCLUSION PART ncreasing competitiveness is becoming increasingly important for Vietnam's aviation industry in a market economy, improving competitiveness to achieve vital business efficiency for airport businesses Vietnam During the research process, the author has tried to implement the objectives set out in the contents of the thesis Systematically select and clarify the rationale, the main contents of competitiveness applied in Vietnam airport business, on the basis of analyzing each level of competition from that given Criteria and content assess the competitiveness of airport enterprises Based on the actual survey at 03 Tan Son Nhat, Noi Bai, Da Nang airports, and the use of other secondary sources, the thesis has fully evaluated the reality of ACV's competitiveness ACV's strengths, weaknesses, advantages and disadvantages at the present time, from which to have appropriate solutions Research results of the thesis will be the basis for the State management agency to have effective management and support measures for ACV enterprises On the basis of the theoretical system and practical situation, the thesis has clarified 03 key points of development and enhancement of airport 23 capacity, 04 development orientations of ACV and 07 groups of solutions to improve capabilities Competitiveness of micro-level ACV (enterprise level), 04 groups of macro solutions (Government and Ministries, sectors) Solutions are only effective when they are implemented synchronously and systematically These studies, if applied in practice of ACV, will enable ACV to improve its competitiveness in service provision to countries in the region and the world Due to limited research conditions and time, the thesis is definitely inevitable, the author hopes to receive the comments of teachers, friends, colleagues and interested people 24 WORKS OF PUBLISHED SCIENCE Nguyen Manh Tuan (2016), "Building Long Thanh International Airport to contribute to improving the competitiveness of Vietnam Airport Corporation", Journal of Hai Phong Science and Technology Association ( Number 167/2016), Tr 46-50 Nguyen Manh Tuan (2018), "Constructing Long Thanh international airport", Economic and Forecast Review (No 04/2018), pp.38-40 Nguyen Manh Tuan (2018) "Opportunities and challenges of Airports Corporation of Vietnam from now until 2020", Asia - Pacific Journal (No 515/2018), P 45-47 ... Competitive capability of Vietnam airports until 2030 Research results can be used as a reference when developing the development strategy of Vietnam Airport Corporation until 2030 At the same time,... Vietnam airports; development status and competitiveness of Vietnam airports, proposing orientations and solutions to develop and improve the competitiveness of Vietnam's airports until 2030. .. implementing a quality management system” IC ICAO's curriculum studies the Jordan Queen Alia International Airport (ICAO, OJAL, ATA: AMM) of Jordan 1.2 Research situation in Vietnam  2003 In 2003,