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IM PROVING THE COMPETITIVENESS 0F BLACK TEA PRODUCING ENTERPRISES IN THAI NGUYEN PROVINCE A Dissertation Presented to the Faculty of Graduate School of Southern Luzon State University, Philippines and Thai Nguyen University, S.R. Vietnam In Partial Fulfillment of the Requirements for the Degree Doctor in Business Administration TRAN THI HUYEN (MARY) August 2013 THAI NGUYEN UNIVERSITY Socialist Republic of Vietnam SOUTHERN LUZON STATE UNIVERSITY Republic of the Philippines IMPROVING THE COMPETITIVENESS OF BLACK TEA PRODUCING ENTERPRISES IN THAI NGUYEN PROVINCE DISSERTATION Advisor : Dr. NGUYỄN KHÁNH DOANH Name of Student : TRẦN THỊ HUYỀN English Name : Mary Date of Birth : 09/11/1979 Course : SLSU-DBA I Thai Nguyen, May 2013 i Title IMPROVING COMPETITIVENESS OF BLACK TEA PRODUCING ENTERPRISES IN THAI NGUYEN PROVINCE A Thesis PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY IN COLLABORATION WITH THAI NGUYEN UNIVERSITY In Partial Fulfillment of the Requirement for the Degree of Doctor in Business Administration TRAN THI HUYEN- 2013 ii ACKNOWLEDGMENT To complete the thesis, I have received the help of Thai Nguyen University, International Training Center-ITC, University of Southern Luzon - PHILIPPINES, Thai Nguyen College of Economics and Finance, the teachers, scientists, Provincial People's Committee of Thai Nguyen, Department of Agriculture and Rural Development of Phu Tho Province, Department of Agriculture and Rural Development of Tuyen Quang Province, Thai Nguyen Department of Technology, Department of Planning and Investment of Thai Nguyen, The small and medium tea enterprises in the provinces of Thai Nguyen, Phu Tho, Tuyen Quang and the help of instructors. I would like to express my sincere thanks to the organizations and the individuals who helped me during this research. In particular, I would like to sincerely thank Dr. Nguyen Khanh Doanh has dedicatedly helped me to complete this thesis. I am deeply and forever indebted to my family for their love, support and encouragement throughout my entire life. I would like to thank my husband Duong The Cao, who has provided a tremendous amount of love and support during my research. On the final note with love is for my children. So much for objective and subjective reasons, the thesis has a lot of shortcomings; I look forward to receiving the construction ideas from scientists, teachers and colleagues. Sincerely Thai Nguyen,…………………………… The thesis‟s author Mary iii ABSTRACT CHAPTER I: THE PROBLEM AND ITS SETTING . 1 Introduction . 1 Background of the study . 2 Statement of the problem 4 Research Questions . 5 Objectives of the study 5 The overall objectives . 5 Specific Objectives . 6 Hypotheses of the study 6 Significance of the study 7 Scope and limitations of the study 7 Definition of terms 8 CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES . 10 2.1. The conceptS of competition . 10 2.2. The conceptS of competitiveness 12 2.3. System of criteria for assessing the competitiveness of enterprises 15 2.4. The basic contents when researching the competitiveness of enterprises . 17 2.4.1. Competitiveness of products 17 2.4.2. The market share of the enterprise 17 2.4.3. Business performance . 17 2.4.4. The productivity of production factors . 17 2.4.5. The ability to link and cooperate of enterprises 18 2.4.6. The ability to attract the resources 18 2.5. The factors affecting the competitiveness of enterprises . 18 iv 2.5.1. Economy . 18 2.5.2. Interest rate on loans . 18 2.5.3. Science and technology 18 2.5.4. The subplier 19 2.5.5. Threat of substitute products or services . 19 2.5.6. Threat of new entrants . 19 2.5.7. Level of organization and human resources . 20 2.5.8. Financial capacity of enterprise 20 2.5.9 Marketing capacity of enterprise . 20 2.6. Related literatures and studies . 20 2.7. Conceptual framework . 23 CHAPTER III: RESEARCH METHODOLOGY . 25 3.1. Study area selection . 25 3.2. Approach methods . 25 3.3. Methods of data processing . 27 3.4. Other methods 27 3.4.1. The descriptive statistical methods . 27 3.4.2. Comparative method . 27 3.4.3 Method of experts . 28 3.4.4. Method of SWOT analysis 28 CHPATER IV: PRESENTATION ANALYSIS AND INTERPRETATION OF DATA 29 4.1. Status of competitiveness of black tea producing enterprises in Thai Nguyen province 29 4.1.1. Competitiveness of black tea products in Thai Nguyen‟s tea enterprises . 29 4.1.2. The efficiency of production and business of black tea producing enterprises in Thai Nguyen 40 4.1.3. The productivity of the factors . 42 v 4.1.4. The capacity to attract financial resources of enterprises producing black tea in Thai Nguyen 45 4.1.5. Ability to cooperate and work of black tea businesses in Thai Nguyen. 46 4.2. Factors affecting the competitiveness of black tea producing enterprises in Thai Nguyen province 46 4.2.1. Economy factors . 46 4.2.2. Interest on loans 47 4.2.3. Political factors and legal 48 4.2.4. Elements of science and technology . 48 4.2.5. The threat of substitute products and services 48 4.2.6. Industry competitors 49 4.2.7. The organizational level and management of human resources 50 4.2.8. Facilities and technology in the business of black tea in Thai Nguyen 52 4.2.9. Marketing Capacity 52 4.2.10. Financial resources . 53 4.3. The strengths, weaknesses, opportunities and threats of black tea producing enterprises in Thai Nguyen . 53 4.3.1. The strengths . 53 4.3.2. The weaknesses 54 4.3.3. The opportunities 54 4.3.4. Threats 55 CHAPTER V: CONCLUSION AND THE PROPOSED SOLUTION . 56 5.1. Conclusions . 56 5.1.1. Through the study we draw the following conclusions 56 5.1.2. Capacity assessment and competitive factors affecting the competitiveness of vi enterprises producing black tea in Thai Nguyen we found: . 57 5.2. Some solutions to improve the competitiveness of balck tea producing enterprises in Thai Nguyen province 58 5.2.1. Viewpoints 58 5.2.2. Orientation 59 5.2.3. Some solutions to enhance competitiveness for enterprises producing black tea 59 5.2.4. Solutions for state policy 64 5.3. Recommendations 64 5.3.1. For State 64 5.3.2. For agencies, Thai Nguyen provincial government 64 5.3.3. For processing business, the business of black tea . 65 BIBLIOGRAPHY . 66 APPENDIX 1 . 69 APPENDIX 2 . 82 vii LIST OF TABLES Table 3.1: The number of sample divided by form of ownership . 26 Table 3.2: The number of sample divided by capital scale . 26 Table 4.1. Customers‟ reviews of black tea products‟ quality of in Thai Nguyen‟s tea enterprises . 32 Table 4.2. Customer reviews on the form of black tea products‟ packaging 33 Table 4.3. Some product categories in the black tea producing enterprises . 34 Table 4.4. Products‟ brand in black tea producing enterprises in Thai Nguyen 34 Table 4.5. Production costs and profits of black tea producing enterprises in Thai Nguyen according to the forms of ownership . 35 Table 4.6. Production costs and profits of black tea producing enterprises in Thai Nguyen according to the capital scale . 36 Table 4.7. The forms of advertising that black tea producing enterprises applied in 2012 38 Table 4.8. The forms of advertising that black tea producing enterprises applied 39 Table 4.9. The efficiency of production and business of black tea producing enterprises in Thai Nguyen according to the capital ownership 40 Table 4.10. The efficiency of production and business of black tea producing enterprises in Thai Nguyen according to the capital scale . 41 Table 4.11. Margin / revenue of black tea producing enterprises in Thai Nguyen compared to black tea producing enterprises in Phu Tho and Tuyen Quang according to the forms of ownership in 2012 . 42 viii Table 4.12. The productivity of capital and assets of the black tea producing enterprises in Thai Nguyen 43 Table 4.13. Capital turnover ratio of black tea producing enterprises in some provinces and the forms of ownership . 44 Table 4.14. Income affects consumption of black tea products in 2012 . 47 Table 4.15: Qualifications of Enterprise leaders in the production of black tea in Thai Nguyen 50 Table 4.16. Qualifications of workers in enterprise producing black tea in Thai Nguyen Province . 51