Promoting marketing’s application in investment promotion in phu tho province, vietnam

Nội dung text: Promoting marketing’s application in investment promotion in phu tho province, vietnam

1. PROMOTING MARKETING’S APPLICATION IN INVESTMENT PROMOTION IN PHU THO PROVINCE, VIETNAM Dr. Pham Thi Thu Huong huongdhhv84@gmail.com MBA. Pham Thi Thu Huong phamthuhuong266@gmail.com Faculty of Economics and Business Administration, HungVuong University, VietNam Dr. Pham Thi Nga phamngaktct@gmail.com Thai Nguyen University, VietNam Dr. Luu The Vinh luuthevinh227@gmail.com Faculty of Economics and Business Administration, HungVuong University, VietNam Abstract Today, marketing is not only applications for products and services but also to expand common applications in many fields, and other products. In particular, investment promotion is an application of marketing activities in the field of investment to attract investors to a specific locality. Based on the collection of secondary data related to research topics, the paper will analyze the current investment promotion and application of marketing tools in investment promotion of Phu Tho province in the period of 2013 - 2017. Thereby, proposed a number of recommendations to accelerate the application of marketing in investment promotion to enhance the effectiveness of the promotion of investment, contribute to attract investment capital serves the goal of economic development - social of Phu Tho province. Keywords: Marketing, investment promotion, investment capital, Phu Tho. 1. Introduction Investment capital is one of the prerequisites for the development of each locality. The attraction of domestic and foreign investment capital in the province plays a very important role in promoting the economic development of a locality. In order to attract investment capital, localities must introduce investors to the potential and advantages of localities. For this, the localities need to conduct investment promotion activities to attract investors to choose locality as investment locations. 385
2. Today, marketing is not only applications for products, services normally but also be extended to various fields and other products. Besides, in terms of local marketing, investors are the local customers. Accordingly, the marketing application in attracting investment is inevitable. Investment promotion is an application of marketing activities in the field of investment in order to attract investors to a particular locality. Being a central province in the mountainous region of northwestern Vietnam, it is the center of science, technology, agriculture and forestry and the cultural, social and humanities center of the whole country. Phu Tho has many potentials and strengths to develop industry, small scale industry, forestry, mining and tourism. With these advantages, Phu Tho head of investment attraction in the northern mountainous provinces. However, Phu Tho province is still a poor, so in the coming time, attracting domestic and foreign investment capital remains one of the top priorities of the province. Accordingly, the province has actively implemented the investment promotion and has applied the marketing tools in investment promotion. However, investment promotion activities in the province is now also not promote the province's potential, untapped efficiency of investment promotion tool in the process of mobilizing the potential investors. Therefore, the promotion of marketing applications in promoting investment in Phu Tho province is really necessary. The paper will analyze the current investment promotion in Phu Tho province and the application of marketing tools in investment promotion; From the research results, some recommendations will be made to promote the application of marketing in investment promotion of the province to improve the effectiveness of investment promotion, contributing to the attraction of investment capital for economic - social development of the province. 2. Method 2.1. Theory on marketing’s application in investment promotion 2.1.1. Concept According to SRI International, Investment promotion is a collection of activities to encourage corporations, private businesses or enterprises to invest in or expand their manufacturing business in their home country, thereby achieving the ultimate goal of increasing employment, turnover, export outputs and values, or other relevant economic benefits. Another approach by Wells and Wint (2000) suggests that Investment promotion includes certain marketing activities undertaken by governments and 386
3. organizations to attract foreign direct investment [12]. These activities include: advertising, direct marketing mailing, investment seminars, organizing investment promotion delegations, participating in trade fairs and exhibitions, distributing publications and documents; direct marketing efforts; Facilitating investors to visit, exchange and cooperate with local businesses; assisting the foreign investors in obtaining the business licenses; preparing the projects; guidelines for feasibility studies and support services for investor’s coming into operation. In our country, the term “investment promotion “ is being used quite commonly, but there is no clear definition to be understood and applied uniformly. Right at the Prime Minister's Decision No. 03/2014 / QD-TTg dated 14/01/2014 detailing the state management of investment promotion activities does not define what is the investment promotion, but only listed principles and contents of investment promotion activities. Therefore, there are many different ways of understanding and applying this concept. In general, we can understand the following: Investment promotion is a socio- economic activity aimed at improving the quality and effectiveness of attracting economic groups, enterprises, units and individuals inside and outside the country to their countries and localities for investment. Investment promotion is actually a marketing activity in attracting investment, the result of which is the investment capital attracted. 2.1.2. Contents of investment promotion Investment promotion includes the following main contents: Building investment promotion strategies, building image, building partnerships, providing services and support to investors, using marketing tools in investment promotion. Developing an investment promotion strategy requires the following steps: Evaluate the needs and investment potentials, focus on sectors and regions where investment has been made; Build the investment promotion strategies. Image building: For effective image building, the following steps should be taken: Identify investor’s perceptions and image building’s objectives; elaborate marketing topics; select and develop promotion tools and participate in marketing coordination programs. Partnership building: Partnerships bring great benefits and effectiveness to enable investment promotion activities to be successful. There are several types of partnerships that fit into three main functions: Partnerships for product development, partnerships for marketing and partnerships in the field of customer services. 387
4. Providing services and support to investors: Support on investment and support services for investors throughout the project cycle from the initial planning stage and the survey stage, the stage of project establishment to the stage of project development and after issuing the investment license is also one of the very important aspects of the investment promotion. 2.1.3. The marketing’s application in investment promotion In broad terms, marketing is activities designed to create and promote any exchange that satisfies the needs and desires of the person. Whenever one wants to persuade someone to do something, which means that he or she has performed marketing activities. It may be that the Government persuades people to make planned births; a political party that persuades voters to vote for their candidate in the presidency; A business persuades customers to buy a product. In marketing, the term promotion is referred to as a basic tool aimed at communicating products and businesses to customers in order to convince them. Thus, from the perspective of marketing, it is possible to understand investment promotion as a tool to convey information about a locality, a country to investors with the goal of attracting investment into that locality or country. Using the marketing’s tools in investment promotion: Public relations; Advertisement; Participating in fairs and exhibitions; Organizing conferences, seminars on investment opportunities; Organizing and participating in investment mobilization. 2.2. The process and research method To achieve the goal of the study, the authors performed research process and research methods as follows: Step 1. Data collection. Within the scope of this study only use secondary data. First, the authors identify data needs and data sources to conduct research. Then, use the research method at the desk to collect secondary data. With data from the Phu Tho Statistical Office, Phu Tho Department of Planning and Investment, Report on Provincial Competitiveness Index of the Chamber of Commerce and Industry of Vietnam Step 2. Data processing. After collecting data, aggregated, sorted and categorized by different topics. Then entered into the Excel software to calculate the necessary indicators and graph the illustrations. Step 3. Analyze the data. Use descriptive statistics and comparative analysis to explain the data; the research results will be used as the basis for proposing recommendations for the research topic. 388
5. 3. Results 3.1. The attraction of investment capital of Phu Tho province in the period of 2013 - 2017 Over time, Phu Tho is interested in building and perfecting policies to create a favorable investment environment. The province has issued many preferential mechanisms and policies to attract investment capital into the province. Accordingly, attracting investment capital has been developing strongly, making Phu Tho become one of the leading provinces to attract investment in the midland and mountainous areas in the north. Table 1. The investment capital for development in Phu Tho province for the period of 2013 - 2017 Unit: billion VND No Indicators 2013 2014 2015 2016 2017 1 State capital 5.758.341 5.813.228 5.643.436 5.508.068 5.157,0 2 Non-state capital 6.859.926 8.032.763 10.999.280 12.604.833 14.500,0 3 Foreign direct investment 839.936 1.070.960 1.424.163 2.978.300 4.000,0 4 Total 13.458.203 14.916.951 18.066.879 21.091.201 23.657.000 Source: [3] In the period of 2013 - 2017, the investment capital for development in Phu Tho province will increase rapidly, the structure of investment capital will be shifted positively: Reduce investment capital from the state budget, increase non-state investment capital and foreign direct investment capital. The restructuring of this investment is consistent with the national and international development trends. The annual investment capital of the province has significantly contributed to the economic growth of the province. Accordingly, the economy of Phu Tho province in 2017 reached a high growth rate, exceeding the target set, gross domestic product (GRDP) in 2017 at comparative prices in 2010 reached 35,634.5 billion, up 7.75% compared to 2016 (exceeding the plan of 0.25%); in which the industry and construction sector increased by 10.66%; service sector increased by 7.48%; agriculture, forestry and fishery increased by 3.74% [2]. 3.2. The investment promotion in Phu Tho province 3.2.1. The strategy on investment promotion Phu Tho province Based on the socio-economic development strategy of Phu Tho province till 2020 of the Prime Minister (2008) and on the Regulation on elaboration and implementation of the national investment promotion program in each period of the Prime Minister Prime Minister (2012), Phu Tho province invites investors in all areas towards low energy consumption and environmental protection. 389
6. In particular, it encouraged and attracted the following projects: infrastructure business in industrial parks, assemblies, agricultural mechanics, electricity, electronics, supporting industries, wood processing construction materials, high-class textile and apparel, beverage, agricultural projects applying high technology with large scale, modern technology in association with processing and consumption of products, development of transport services logistics, resorts, high-class recreation, shopping centers, supermarkets, western medicine production, education and training services, high quality health services [1] Table 2. List of priority areas for investment to 2020 of Phu Tho province Number of No Area projects, programs 1 Agriculture and Forestry 11 2 Industry 19 3 Services and travel 11 4 Infrastructure 34 4.1. Traffic 14 4.2. Irrigation 11 4.3. Power system 5 4.4. Industrial parks, industrial clusters 4 5 Public sector, resources and environment 12 5.1. Urban, public and environmental infrastructure 6 5.2. Post and telecommunication, science and 6 technology and information technology 6 Sociocultural 30 6.1. Education - training, vocational training 11 6.2. Health - society 6 6.3. Cultural information 10 6.4. Sports 3 7 Security and defense 4 Source: [4] At the same time, Phu Tho province also encourages investment in the form of FDI, BOT, BT, BTO, 100% foreign capital. Especially, in 2017, Phu Tho province has set up an investment promotion program, focusing on researching and assessing potentials, markets, trends and 390
7. investment partners. Establishing databases in service of investment promotion activities; making lists of projects calling for investment; To set up publications and documents in service of investment promotion activities; propaganda, promotion, introduction of environment, policies, potentials and investment opportunities; training, strengthening capacity in investment promotion; support organizations, businesses and investors to learn about the laws, policies and procedures for investment, potential, markets, partners and investment opportunities; to implement the project after being granted the investment registration certificate; Implementing domestic and international cooperation on investment promotion [7]. Then, in 2018, the province will continue to develop investment promotion programs with the aim of attracting investment projects in the fields of high technology and supporting industries. focus on attracting investments by corporations large, the investment projects producing products with content of science and hi-tech, value-added, potentially large contribution to budget and socio-economic development of the province, investment projects using less energy and saving land. Strive to attract investment registered capital in 2018 (including FDI and domestic investment) from 5,500 to 6,000 billion VND, increasing by 10 - 15% compared to 2017. Investment promotion activities must be in line with the five-year and annual socio-economic development plans of the province; consistent with industry planning, land use planning of districts, towns and the list of investment priorities; create changes in action to improve the responsibility, quality and efficiency of investment attraction [8]. 3.2.2. Image building In the past years, Phu Tho province has been interested in building a image of a local with many potential and attractive investment and business environment, which is reflected in provincial competitiveness index. 70 62.55 57.72 58.37 58.6 60 53.91 50 54 40 PCI 30 39 35 Ratings 20 29 27 10 0 2013 2014 2015 2016 2017 Chart 1. Provincial competitiveness index of Phu Tho province for the period of 2013 - 2017 Source: [10] 391
8. In the period of 2013 - 2017, the provincial competitiveness index of Phu Tho under the assessment of investors continuously increase the score and increase the grade. In recent years, Phu Tho is one of the first localities in the administrative reform under OSS.mechanism. The province has built up the image of the land of spirituality exhausted, many potential for economic development and tourism. With abundant human resources, young workforce, high education level, friendly people; along with many preferential mechanisms and policies. Particularly, the dynamism and determination of the provincial leaders in improving the investment and business environment and accompanying enterprises; To renovate the thinking and the style of leadership, direct and organize the management of work in a deep, effective and practical spirit associated with rearranging the organizational structure of the lean and effective political system. Thus, contributing to attract investment capital for socio- economic development of the province. 3.2.3. Building partnerships Over the past years, provincial leaders have been interested in establishing relationships with provincial investment partners. For local partners, the province has established long-term cooperation with other localities throughout the country. Especially, Phu Tho province has built up comprehensive cooperation relations with Hanoi capital. Accordingly, the two provinces regularly maintain, enhance the visit, work and attend major events of the two provinces and cities in the coming time. Promote exchanges and share experiences in the field of investment promotion and attraction, in the formulation and implementation of mechanisms and policies to support and attract investment; Solutions to create conditions for mobilizing more capital or other resources for development investment; Implementation of investment law policies, especially the implementation of investment projects in the form of public-private partnerships. In addition, the province has actively approached and directly mobilized a number of large corporations and corporations with financial and technological capabilities and markets to invest in a number of key projects; Follow up on difficulties and support implementation. Since then, the province has invited many big investors such as Trung Nam Group, Vingroup, Sun Group, Song Hong Thu Do, Thaco Truong Hai For foreign partners, the province is regularly maintaining relations and exchange information with partners, timely specifying and implementing the contents of the cooperation agreement signed with the province of Nara (Japan Son Tay (China), Luong Nam Tha (Laos), Hwaseong City (Korea), bringing the external activities of the province more and more in depth, effective and real. In particular, Korea is the biggest partner. In 2017, the province has welcomed and worked with 392
9. more than 30 domestic and foreign businesses and investors to explore investment opportunities, including many investors from Japan, Korea, India,Taiwan, Hong Kong, Slovaskia, Italia Table 3. Number of active projects of foreign partners in Phu Tho province Unit: Thousand USD 2014 2015 2016 Number Number Nation Number Investment Investment Investment of of of projects capital capital capital projects projects India 1 20.000 1 20.000 1 20.000 Irac 1 15.100 1 15.100 1 15.100 France 1 5.000 1 5.000 1 5.000 Czech 1 1.000 1 1.000 1 1.000 Republic Indonesia 1 5.000 1 5.000 1 5.000 Korea 83 345.660,9 87 400.660,9 90 653.173 Taiwan 3 1.583 3 1.583 3 5.433 Japan 6 8.060 6 8.060 7 23.940 China 2 8.836 3 9.636 3 16.783 Total 99 410.239,9 104 466.039,9 108 745.429 Source: [3] In addition, Phu Tho has been intensifying its contacts, requesting support from foreign representative offices in Vietnam and overseas Vietnamese representative missions to connect, formulate and establish relations. with the Province of Trento (Italy), Gyeonggi Province (South Korea), Bussy Saint Georges (France), In addition, Phu Tho has been strengthening contacts, requesting support from foreign representative offices in Vietnam and Vietnamese representative offices to connect aboard to connect, build and establish relationships with the Trento Province (Italy), Gyeonggi Province (Korea), Bussy Saint Georges City (France), 3.2.4. Providing services and support to investors Over the past time, leaders of Phu Tho province have focused on promoting business support. Particularly, the province has thoroughly grasped all departments and sectors to implement measures to improve the business environment, to support and develop all enterprises in the spirit of Resolution No. 19-2016 / NQ-CP dated 28 393
10. / 4/2016 and Resolution No. 35 / NQ-CP dated 16/5/2016 to make Phu Tho becoming a new destination of domestic and foreign investors. Besides, the province also actively supports and helps enterprises enjoy the preferential mechanisms and policies of the State and the province. In particular, the guide enterprises to carry out investment and business procedures and implement projects after licensing, support enterprises in seeking investment locations and information on policies and environment. investment, procedures for registration, adjustment of investment registration certificates are also many innovated in the direction of professionalism and efficiency Table 4. The documents on investment support policies in Phu Tho province in the period of 2010 - 2017 Numerical Text number Content Date order 1 04/2012/QĐ- Decision on investment support for 12/01/2012 UBND investment projects in Phu Tho province 2 25/2012/QĐ- Promulgating the Regulation on 21/12/2012 UBND support for small and medium industrial enterprises to invest in modernizing and modernizing technologies in priority domains in Phu Tho province. 3 15/2004/NQ- The Resolution stipulates the specific 15/12/2014 HĐND support policies to encourage enterprises to invest in agriculture and rural areas in Phu Tho province in the period of 2015-2020. 4 9/2017/QĐ- Decision promulgated specific 12/04/2017 UBND mechanism to attract investment in Phu Ha Industrial Zone, Phu Tho town, Phu Tho province. Source: Author synthesis The province has also issued preferential policies and incentives, allowing domestic and foreign investors to select locations, land areas and choose the form of land allocation for project implementation. The province has provided budget support for compensation and ground clearance for projects that are encouraged and attracted to investment; instructed electricity and water supply service providers to build roads to the fence of industrial zones and clusters; promoted s the mobilization of resources for investment in the construction of key socio-economic infrastructures. Many 394
11. important infrastructure projects were completed and put into use effectively, create more opportunities and conditions to promote development in the areas of social life in the next stage. 3.2.5. Use marketing tools in investment promotion Over time, Phu Tho province has developed and implemented many investment promotion programs. In order to be effective in investment promotion, the province used promotional tools in marketing, specifically: First, public relations. Phu Tho province has focused on building relationships with investment partners, the province has promoted direct investment contact with corporations, large corporations in the country such as Saigon Tourism Corporation; Hanoi Housing Development and Investment Corporation; Traffic Engineering Corporation (CIENCO). The leaders of the province had direct contact with the Embassies in Hanoi such as Embassy of Japan, Embassy of France In addition, the province has implemented the investment project in a strict and close way, and paid attention to the rights and interests of the people; The province has propaganda, advocacy and explanation so that the people understand clearly the meaning of investment projects for the local socio-economic development; Since then, there has been a consensus among the people in attracting investment into the province. Second, advertising. Phu Tho province has launched advertising programs through newspapers, radio, television and on the website of the Department of Planning and Investment (www.dpi.phutho.gov.vn), the Northern Investment Promotion Center (www.ipcn.mpi.gov.vn) and the portal of the Ministry of Planning and Investment ( to promote propaganda about the potential, opportunities and investment policies of the province. Third, participation in fairs and exhibitions. In the period of 2013 - 2017, Phu Tho province has actively organized trade fairs, on average 21 times per year. In particular, the Hung Vuong Fair is one of the annual series of provincial events held on the occasion of the Hung Temple festival for organizations and enterprises to promote trade promotion activities, promote and introduce their potential and production capacity, products and strong brands; at the same time, enterprises can look for investment opportunities, sign commercial contracts, and sell products to consumers. 395
12. 30 27 25 20 20 20 19 20 15 Number of trade fairs 10 5 0 2013 2014 2015 2016 2017 Chart 2. Number of trade fairs organized by the province from 2013 to 2017 Source: [10] In addition, the province has also actively participated in domestic and international fairs, in which there are trade promotion programs of Hanoi such as Regional specialty Fairs, Vietnam goodsFfairs through which introduce the potential, strengths and support for specific products, advantages of Phu Tho province are promoted and accessed to capital’s consumers. Fourth, hold conferences and seminars on investment opportunities. The investment promotion conference is not a new activity for Phu Tho province. Over the past time, provincial leaders have paid attention to organizing investment promotion conferences to introduce provincial investment opportunities to investors. Accordingly, the province has successfully held conferences and seminars on investment promotion in Phu Tho province for Korean enterprises (Hwaseong city); Chinese Enterprise (Tianjin City); Indian businesses (businesses introduced by the Indian Chamber of Commerce and Industry); thereby promoting the image, potential and advantages of the province to investors. In particular, in 2015, Phu Tho province held a large-scale investment promotion conference calling for investment promotion. This is really an opportunity for enterprises, organizations to survey, learn and evaluate the untapped advantages and potential of the province, from which plans for investment or cooperation with enterprises inside and outside the province to effectively implement the projects in the future. Accordingly, the province has attracted more 10 FDI projects with total registered capital of over 86 million, bringing the total number of FDI projects to 147 projects, with total registered capital of nearly US $ 1 billion [6]. The success of the investment 396
13. promotion conference in particular, the activities of investment promotion in general in recent years has opened up new opportunities for wave investment in Phu Tho. Not only investment promotion conferences in the province, Phu Tho also took the initiative in holding investment promotion conference in other localities in the country and abroad. Currently, the trend of Korean enterprises to invest in Vietnam is very large, the largest among the ASEAN countries. South Korea has been the largest investor in Vietnam with a total investment of $ 59 billion (as of March 20, 2018). In two consecutive years, in 2017 and 2018, the province held an investment promotion conference in Korea to attract more Korean businesses to invest in the locality. In 2017, the province held an investment promotion conference entitled "Phu Tho - the potential and opportunities for investment" in Korea. Accordingly, Phu Tho province has 150 foreign-invested enterprises with a total registered capital of nearly 1.1 billion USD, of which 120 projects from Korea with a total registered capital of 793 million USD. In 2018, the province held an investment promotion conference in Japan with the expectation of Japanese enterprises to continue expanding their investment in Phu Tho.- this is the second largest foreign investor in the province, with seven Japanese investment projects with total capital of nearly $ 40 million focusing on wood processing, textiles and footwear. This is a continuation of the investment promotion activities of the province with Japanese partners, creating a lot of prospects in the promotion of foreign investment. In the context of the global industrial revolution of 4.0, Japan is one of the leading pioneers in the world. Phu Tho is actively promoting and inviting Japanese enterprises to apply high technology in the province, which will be an important point, creating a pioneering advantage, boosting the economic surplus, contributing to raise management knowledge and improve the lives of workers. Fifth, organization and participation in investment mobilization. Apart from holding conferences and seminars on investment opportunities, the province also actively contacts and mobilizes direct investment for large corporations and corporations with financial, technological and market capabilities in order to invest in some key projects, such as the Belgian companies have invested in the metallurgical sector; production of industrial glue; medical equipment; beer production; processing tea, wood , including Umicore Group; Soudal, VK company. Through the introduction of the Department of Investment Promotion and Investment Promotion Center in the North, the province has been received and mobilized investment for investors from countries that need to learn about the investment’s environment and preferential mechanisms and policies when invest in 397
14. the province. Coordinating and organizing investment promotion in Japan on the occasion of the provincial leaders attending the East Asia Conference with a view to attracting and calling for strong investors in the field of electricity and electronics; hi-tech agriculture in Mie and Nara provinces in Japan, enhancing the efficiency of investment promotion through bilateral investment promotion channels with neighboring provinces. Tools for investment promotion continued to be completed such as adding information to the database, distributing provincial introductory books (which included information such as profiles, image maps, investment environment, general and sectoral plannings, industrial clusters, land use planning, information on investment projects) with DVD subtitles in English and Japanese, Korean, Italian, Russian to serve missions senior leaders of the province when inviting investment promotion. In 2017, more than 1,500 sets of investment promotion documents were sent to interested investors, domestic and foreign diplomatic missions to visit, work and explore the investment environment of the province [10]. 3.3. General assessment on the investment promotion in Phu Tho province 3.3.1. Results In recent years, investment promotion has made important contributions in attracting and using domestic and foreign investment capital effectively in projects, exploiting potentials and advantages with the socio-economic development of the province. Provincial investment promotion activities and programs are built in line with the Party's policies and legal policies, in line with the province's socio-economic development strategy and national investment promotion programs; to ensure the attraction of domestic and foreign investment capital according to the socio-economic development orientations of the province. The province has built a local image with great potential and a favorable investment environment. At the same time, actively establish long-term relationships with domestic and foreign partners effectively. Accordingly, in the province there have been some large domestic investors and the number of foreign invested projects has increased. The province provides investors with many services and investment support activities that meet the needs of investors. Using a combination of tools in the investment promotion program and achieved significant results. 3.3.2. Limitations and causes In addition to the achievements, the investment promotion of the province in the past years still have some limitations to overcome, specifically: 398
15. Firstly, although the province has paid attention to and developed the investment promotion program, however, the province has only implemented the decision in the last two years - 2017 and 2018; Moreover, investment promotion activities are lacking in synchronization, information on investment promotion has not followed the requirements of investors, some investment promotion activities stopped at the stage of contact and introduction. not closely follow, do not make investors clearly see the potential, advantages and economic benefits when investing in the province. Second, although the province has been active in building relationships with local and foreign partners; However, this work has not really achieved high efficiency. The number of investors coming to learn about the investment environment and investment performance is low compared to the potential of the province; In particular, it has not attracted many big projects with high technology content; Foreign partners are mainly in developing countries, the number of investment projects of developed countries in the province is low, not attracting many prominent foreign investors. Thirdly, the province has provided land-related assistance to investors, however, the land fund for investment promotion is limited, the transportation is not convenient; In particular, the time for transportation of goods from Phu Tho to Hai Phong port remains a concern for foreign investors, especially Japanese investors. Fourthly, the human resources in the locality are plentiful; however, there is a shortage of high quality human resources and skilled technical workers; , so the attraction of large investment projects is likely to contribute to the budget and projects using high technology environmentally friendly is limited. Fifth, during the investment promotion process, although the province has used a combination of marketing tools to achieve high efficiency. Promotional tools, however, are mainly traditional tools, which have not yet applied many modern, relevant and highly effective tools in the context of the 4.0 industrial revolution, leading to Investors have difficulty accessing information. 4. Discussion and Conclusion Over the past time, the investment promotion in Phu Tho province has made fundamental changes, attracting many domestic and foreign investors to production and business in the area, this not only creates especially important "step dance " for socio-economic development but also contributes to building and popularizing the image of Phu Tho province at home and abroad. However, the investment promotion of the province still has limitations, which require the drastic and synchronized implementation of the whole political system. In 399
16. the current context, the issue raised in the investment promotion for the province is to continue attracting new investors and at the same time promoting the investors who have investment projects in the province, promote the project implementation or continue to expand investment in the province. Goals and objects of investment promotion activities need to be expanded, the content of promotional activities requiring extended to the deployment phase of the project. To further exploit the potentials and strengths of the province, to create conditions for the mobilization of investment resources of various economic sectors for socio-economic development as well as to raise the efficiency of the investment promotion in the province; in the coming time, Phu Tho province should promote marketing application in investment promotion, specifically: Firstly, continue to innovate investment promotion methods through the organization of investment promotion activities suitable to each object of investment attraction, especially transnational corporations, large domestic corporations; Strengthen the organization of seminars and seminars for investment promotion by thematic and specific partners, focusing on key markets such as Japan, Korea, Singapore, USA; Promote cooperation with foreign diplomatic missions in Vietnam, international organizations such as JETRO (Japan), KCCI (Korea), BOI (Thailand), IE (Singapore), EUROCHAM, AMCHAM , international investment consulting companies to organize investment promotion activities and access to potential investors. Secondly, to promote market research activities, which focus on both market investors and the local market in terms of the investment location. For the investor market, it is necessary to understand the their investment motives as well as investment aspirations for the local, in which focus on target investors. For the investment location market, it is necessary to focus on gathering information and researching experiences to attract investment in the province's advantageous fields such as tourism, agriculture and forestry, industry to apply the experience of other provinces in the province. Thirdly, to build a website for investment promotion of the province to provide information on the investment environment, trade and tourism in the province correctly, timely and quality for domestic and foreign investors wishing to learn and invest manufacturing and trading in Phu Tho. At the same time, the website will introduce policies on investment incentives, programs to support enterprises in the fields such as: Consulting investment projects, branding, conferences, seminars; introducing the images, culture, people, potential development in the fields of the province with the domestic and foreign businessmen and those who need to learn about Phu Tho. In addition, the need to regularly update the information related to 400
17. the promotion of the potential advantages and the list of priority projects to attract investment in the province on the website and other means of mass media, through events of investment promotion at home and abroad. Fourth, strengthen the application of information technology in investment promotion, which emphasizes applications social networks facebook and design, build videos, short films about 30 seconds, 5 minutes, 10 minutes to promote the potential and advantages of the province in attracting investment through the youtube application. Fifth, encourage and promote the direct participation of investors to promote investment location through direct referrals to other investors and posted the images on investment location on the social networking site. Sixth, promote e-marketing applications in investment promotion. In order to implement this solution, there should be support and coordination and implementation of various departments to ensure the necessary conditions and build a healthy electronic transaction environment. The necessary conditions are: a stable internet connection with high speed; information posted on the internet is accurate, transparent, multi-dimensional and full; ensuring the safety information and security of commercial transactions. In addition, there should be a strict and effective legal corridor in ensuring the safety of internet trading transactions. 5. References 1. Bui Minh Chau (2015), "Phu Tho - investment potential for successful development", tu / 1640 / phu-tho-tien-nang-dau-tu-de-phat-trien-thanh-cong.html, accessed 11/12/2015. 2. The portal of Phu Tho province (2018), The socio-economic situation in 2017 in Phu Tho province, tintucid = 201759, visited on 03/01/2018. 3. Statistics Office of Phu Tho (2013, 2014, 2015, 2016), Statistical Yearbook 2013, 2014, 2015, 2016 Phu Tho Province, Statistics Publishing House, Hanoi. 4. Prime Minister (2008), Decision No. 99/2008 / QD-TTg on Approving the master plan on socio-economic development of Phu Tho province up to 2020, issued on July 14, 2008. 5. The Prime Minister (2012), Decision No. 26/2012 / QD-TTg on Promulgating the Regulation on formulation and implementation of the national investment promotion program, issued on 8 June 2012. 6. SRI International, An Assessment of Investment Promotion Activities, Final Report. 401
18. 7. Hoang Cong Thuy (2016), "Phu Tho accelerates the integration strategy", access 28/08/2016. 8. The People's Committee of Phu Tho Province (2017), Decision No. 798 / QD- UBND approving the investment promotion program of Phu Tho Province in 2017, issued on 12 April 2017. 9. The People's Committee of Phu Tho Province (2018), Decision No. 332 / QD- UBND approving the investment promotion program of Phu Tho Province in 2018, issued on 06 February 2018. 10. VCCI Vietnam (2013, 2014, 2015, 2016, 2017), Provincial Competitiveness Index PCI, 2013, 2014, 2015, 2016, 2017 Profile of 63 provinces and cities in Vietnam, Hanoi. 11. Nguyen Minh Xuyen (2018), "Phu Tho: New leverage to attract investment", html, accessed on 07/03/2018. 12. Wells, Jr. & Wint (2000), Marketing a country: Promotion as a Tool for Attracting Foreign Direct Investment (Revised Edition), FIAS. 402
19. FACTORS AFFECTING CASHEW NUTS DEVELOPMENT IN THE CONTEXT OF CLIMATE CHANGE: RESEARCH IN BINH PHUOC PROVINCE,VIETNAM Ph.D Student 1: Pham Van Chinh Phamvanchinh090389.hust@gmail.com Ph.D Student 2: Vu Thi Thu Hoa Vuhoa1284@gmail.com National Economics University,Hanoi,Vietnam Abstract This research done to discovery factors affecting cashew nuts quality in Binh Phuoc Province. Base on data collected from 200 observations processed by SPSS 20, with Cronbach’s Alpha scale reliability testing techniques, factor analysis (EFA), correlation analysis and multiple regression analysis. The research results determined that there are 6 factors that directly affect the quality of cashew nuts at the research site. Base on the research results, the implications of governance have been proposed to be good for the quality of cashew nuts in the face of climate change. Keywords: Cashew, factor, Climate, Binh Phuoc province, Vietnamese. 1. Introduction: Cashew is one of the industry of Vietnam, and ranked 4th in the rankings of the world cashew accounted for 4% of export in the total volume and total turn over reached 14,847 tons equivalent to 128.78 million USD, reduced 5.08% in volume and 13.08% in turnover compared to 2018. The average export price is 9.23% equivalent to 8674.03 USD/ ton. In recent years, there has been a decrease in unimportant reasons. Climate change is the main factor responsible for variations in cashew harvesting from year to year in Brazil (Camargo, 2010) giving global climate change forecasts, with relationships significant impact on cashew yield in Brazil. Climate change is posing risks for cashew production, cashew grower’s livelihoods and their families around the world. Change in temperature and precipitation, rainfall patterns, as well as ebouxtreme weather events can affect the production cycle and negatively affect cashew production. To develop a strategic approach that can effectively cope with climate change and its impact in cashew production, a development of inter - regional partnership called seed initiatives articles climate (c&c) have been set. However, there’s much competition in the world from the quality of cashew nuts, so the cashew growers increase in everyway that how to get qualitative cashews 403
20. and reduce the cost. There are many cashew researchers in the world such as Nazneen,2004, Davis, 1999. Albrecht và coworker (2009), Ali, S. H. A., & Judge, E. C. (2001). And some Vietnamese researchers: Mai Thanh Trung (2011), Mai Thi Thuy Trang (2010), Lê Thanh An (2008) researched about cashew development. The research purpose is analyze the factors affecting the development of cashew in the face of climate change. The research also examine the relationships of factor and impact level of each factor on the quality of cashew nuts grown by farmers. The results of this experimental research will be the basis for managers and farmers to have appropriate policies to improve the quality of cashew nuts. 2.The method of research: The author’s research uses quantitative research method through 2 stages: preliminary research and official research. Preliminary research (qualitative techniques) are conducted by group techniques and interview experts, thereby adjusting the model and the scale to match the actual research situation. Measuring tool uses Likert 5 scale of succession of research with 21 observed variables measuring 6 independent factors and 3 observed variables measuring dependent variable According Hair with coworker (1998), the minimum number of observation needed to analyze the exploratory factor (EFA) is N=5*X (Observed variables). In this research, the author used a large observation size to ensure reliability. So, the author’s official research passed with 232 direct surveys through simple random sample collection techniques. After rejecting 32 surveys form weren’t invalid, there were 200 surveys left in the analysis. Research model: Soil H1 Techniques H2 Fertilizer H3 Quality Care H4 Distance H5 H6 Seed selection (Source: Author proposed) 404
21. Research hypothesis: Soil: H1 has the same direction relationship with the quality of Cashew Techniques: H2 has the same direction relationship with the quality of Cashew Fertilizer: H3 has the same direction relationship with the quality of Cashew Care: H4 has the same direction relationship with the quality of Cashew Distance: H5 has the same direction relationship with the quality of Cashew Seed selection: H6 has the same direction relationship with the quality of Cashew 3. Research results: 3.1. Describe research characteristics: Objects of author’s survey is 200 cashew growers in Binh Phuoc province, because it has suitable soil for perennial crops. Table 1: Characteristic of research samples Variable Group classification Frequency Rate (%) Sex Male 72 36 Female 128 64 Experience Under 5 years 50 25 From 5-10 years 50 25 From 10- 15 years 50 25 Over 15 năm 50 25 Area Under 1 hectare 37 18.5 From 1-5 hectare 70 35.0 From 6-10 hectare 56 28 Under 10 hectare 37 18.5 Qualification High school 21 10.5 Intermediate 2 1.0 College 8 4.0 University 165 82.5 Over university 4 2.0 Age From 30- 40 years old 68 34.0 From 40- 50 years old 66 33.0 Over 50 years old 66 33.0 (Source: Author’s survey) 405
22. 3.2. Verify the scale Table 2: Reliability coefficients Cronbach’s Alpha The observed Number of Cronbach’s Observed variables variable coefficient variables observed Alpha The lowest total Soil 2 .629 .772 Techniques 4 7.45 .890 Fertilizer 2 .900 .974 Distance 5 .719 .917 Seed selection 5 .645 .844 Care 3 .731 .879 Quality 3 .606 .802 (Source: Author’s survey) 3.3. EFA factor distribution The EFA independent variables results shows that there’re 6 factors formed with 24 satisfactory observed variables. Coefficient KMO = 0,749 (satisfy condition 0,5 ≤ KMO ≤1) => EFA for data is appreciate. KMO verifies Bartlett has meaning Sig.=0.000 Observed variables are correlated. Cumulative variance of factors reaches 76.865% > 50%. This shows that 6 factors explain 76.865% variation of observed variables. The EFA dependent variables results shows that there’s 1 factor formed with 3 satisfactory observed varriabes. Coefficient KMO = 0.692 (satisfy condition 0,5 ≤ KMO ≤1) => EFA for data is appreciate. KMO verifies Bartlett has meaning Sig.=0.000 Observed variables are correlated. Cumulative variance of factors reaches 72.005% > 50%. This shows that 1 factor explains 72.005% variation in the quality of cashew. The above Cronbach’s Alpha and EFA test results show that the scale of independent and dependent factors meets th requirements for value and reliability and will be included in the next research. 3.4. Correlation analysis: The corelation matrix shows the significance of very small coefficients (Sig=0<0.005), so the correlation coefficients are statistically significant and are eligible to be included in the regression factor analysis. The inspection of regression assumption also shows consistent, non-infringing results. 406
23. Table 3: Correlation analysis (N=200) Correlations F-DAT F-Kythuat F-FB F-KC F_CG F_CS F-CLHD Pearson Correlation 1 -.002 .003 -.004 -.001 .001 .203 F-DAT Sig. (2-tailed) .980 .962 .950 .985 .993 .004 N 200 200 200 200 200 200 200 Pearson Correlation -.002 1 .000 .005 -.001 .002 .200 F-Kythuat Sig. (2-tailed) .980 .997 .939 .989 .976 .005 N 200 200 200 200 200 200 200 Pearson Correlation .003 .000 1 -.002 -.002 .006 .342 F-FB Sig. (2-tailed) .962 .997 .972 .979 .933 .000 N 200 200 200 200 200 200 200 Pearson Correlation -.004 .005 -.002 1 .002 -.003 .341 F-KC Sig. (2-tailed) .950 .939 .972 .975 .963 .000 N 200 200 200 200 200 200 200 Pearson Correlation -.001 -.001 -.002 .002 1 -.005 .330 F_CG Sig. (2-tailed) .985 .989 .979 .975 .940 .000 N 200 200 200 200 200 200 200 Pearson Correlation .001 .002 .006 -.003 -.005 1 .152* F_CS Sig. (2-tailed) .993 .976 .933 .963 .940 .031 N 200 200 200 200 200 200 200 Pearson Correlation .203 .200 .342 .341 .330 .152* 1 F-CLHD Sig. (2-tailed) .004 .005 .000 .000 .000 .031 N 200 200 200 200 200 200 200 . Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). (Source: Author’s survey) 407
24. 3.5. Regression analysis Independent Regression Multicollinear Significance variables coefficients Coefficients β statistics level R2 correct = 43% (β) Dung sai VIF Constant -0.07 0.000 DAT .205 .204 0.000 1.000 1.000 Ky Thuat .200 .198 0.000 1.000 1.000 FB .345 .341 0.000 1.000 1.000 KC .344 .341 0.000 1.000 1.000 CG .334 .331 0.000 1.000 1.000 CS .154 .153 0.005 1.000 1.000 (Source: Author’s survey) Notes: DAT(Soil), kythuat (techniques) FB(Fertilizer) KC(Distance), CG (Seed selection), CS( Care),). R2 correct =0.430. StatisticalF (ANOVA)=25.928 (sig=0.000). Durbin-Watson= 1.904 With the result of statistical value F=25.928 with Sig0.000 demonstrates the regression model is suitable for dara in 6 variables. ViF coefficient of the other 6 variables with value < 2 show that there is no multicollinearity. R2 coefficient corrects 0.43 indicating that 43% of the variation of the dependent variable is explained by independent variables. Urban disperses randomly around the path to zero degrees and oscillates a lot at the amplitude +/- 1, indicating that the assumption of linear contact doesn’t violate. Histogram frequency chart shows the standard distribution curve overlapping the frequency chart. Mean value is as small as 0 mean (0.00) and the standard deviation of 0.982 close to 1 indicates the distribution is not dispersed far from the straight line are expected so it can be concluded that the assumption of normal distribution is not violated. Thus the above liner regression model is suitable. Unstandardize regression: CLHD= -0.07+0.345*FB+0.344*KC+0.334*CG+0.205*DAT+0.200*KH+0.154*CS The regression coefficients bear the sign (+), which represents the independent variables having the same directional impact as the dependent variable. Comparison 408
25. of the impact level of these 6 variables on the dependent quality of cashew nut (CLHD) in the following order: We can see that the fertilizer factor (FB) has the strongest impact (β = 0.345), next is distance (KC): (β = 0.344) next is seed selection (CG): (β = 0.334), then soil (DAT) with coefficient β = 0.205, climate factor (KH ) and the coefficient β = 0.200 and finally the care factor (CS) with coefficient β = .0154. 4. Discussion and Conclusion Fertilizer factor has the strongest impact on the quality of cashew, growers can choose suitable fertilizer for cashew, not only choosing on one or two day but also choosing feces, needs to plan specifically the development of cashew trees when fruits are available. And at the end of season, we need any kind of fertilizer to have big fruits and produce quality cashew. And we use organic fertilizer such as pig manure, compost to fertilizer the soil better. Distance factor is the second factor impact on the quality of cashew. As distance between trees should be from 5-10 meters. With this distance can help the roots, foliage avoid touching each other to develop, convenient for care. Depending on the climate and the area where the plants grow well, sloping areas should be planted to avoid soil erosion. Seed selection factor is the third factor. Seed selection needs farmers who have long-term experience or well-trained in university lecture hall, having collisions with reality, they can choose cashew tree which can develop strongly, to limit death after official planting. Soil factor is the fourth impact factor. Cashew plants with good drought tolerance are not picky, but this is also a diseased plant like many different edible plants, it also suffers from a bacterium, fungus that causes root rot, harming leaf parts. Drying the soil after plowing under the sunlight for a long time, drying soil after plowing under the sunshine for a long time, while using antiseptic to disinfect soil before planting is necessary, can not be ignored. Climate factor is in the impact of climate change is more and more serious in level with increasing input costs, leading high cost corollary, low profit and the risk of producing cashew nuts is unsustainable if at the beginning there is no farming technique to adapt to climate change. In fact, uneven rainfall, reduced annual total rainfall, severe climatic conditions in the dry season affect the sustainable development of cashew in Binh Phuoc. The obvious affect is that the late rain phenomenon causes cashew to divide early germplasm without focusing on 409
26. productivity and prolonging the dry season. In addition, drought and water shortage are becoming more serious. Care factor is the final impact on the quality of cashew nuts. People weed around the stumps regularly, if the grass grows much, it creates favorable conditions for the development of pests. It is advisable to intercrop short-day plants such as legumes, while helping to take advantage of the area and help to keep the soil from losing nutrients due to soil washing. Shouldn’t plan too big trees, it will lead to light scramble status, nutrients do not focus on growing cashew trees. In addition, regular pruning will create ventilation and help light distribute evenly. Phenomenon of scramble for light will not exist, easily take care of and follow the status of the tree. Do not cut too close or cut off the young shoots of the tree, avoid stripping the bark, should apply lime to the deep cut to avoid bacterial entry. 4.1. Limited research: Limited research is to choose to perform sampling at Binh Phuoc. The reliability and universality will be even higher when expanding the research of cashew growing areas in Vietnamon a larger scale. In addition, the sampling method needs a higher representation. This is a simple study, all issues are built on a quantitative scale based on the theory and previous research models, so there are limitations on the theoretical basis that may have many factors affecting better cashew quality. 5. References: 1. Albrecht, M., Kuhne, Y., Weber, B. K. B., Becker, W. M., Holzhauser, T., & Lauer, I. (2009). Relevance of IgE binding to short peptides for the allergenic activity of food allergens. Journal of Allergy and Clinical Immunology, 124, 328–36. 2. Ali, S. H. A., & Judge, E. C. (2001). Small-scale Cashew Nut Processing. Sri Lanka: Food and Agriculture Organization of the United Nations. 3. Asero, R., Bresciani, M., Cervone, M., Minale, P., Murzilli, F., Quercia, O., Ridolo, E., Savi, E., Villalta, D., Voltolini, S., Amato, S., &Mistrello, G. (2014). Analysis of the IgE response to pine nut allergens in Italian allergic patients. Journal of Investigational Allergology and Clinical Immunology, 24, 204-6. 4. Chitta, S., Lian, B. X., Rao, R., Loh, W., Goh, A., & Chong, K. W. (2018). Cashew nut allergy in Singaporean children. Asia pacific allergy, 8(3), e29. 410
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