The competitiveness of viet nam telecommunications service corporation in the industrial revolution 4.0

Nội dung text: The competitiveness of viet nam telecommunications service corporation in the industrial revolution 4.0

1. THE COMPETITIVENESS OF VIET NAM TELECOMMUNICATIONS SERVICE CORPORATION IN THE INDUSTRIAL REVOLUTION 4.0 Ph.D Student Le Van Hung1 Abstract: Today, along with the general development in the fields of science and technology, the telecommunications industry has been one of the most important economic branches of the country. Therefore, telecommunication enterprises are subject to fierce competition from products, marketing, price, after-sales regime In this article, the author analyzes the current situation and offers some solutions to improve the competitiveness of the Telecommunications Services Corporation before the impact of the industrial revolution 4.0. Keyword: competitiveness, corporation, telecommunications, revolution. 1. INTRODUCTION Competition is derived from Latin: competere, meaning to compete with each other (Neufeldt, 1996). Competition also means efforts to act more successfully, to achieve better results than people who are acting like themselves. Therefore, competition is an event in which individuals or organizations compete to achieve results that not everyone wins (Wehmeier, 2000). Competition, understood at the enterprise level, is the struggle or scramble from some competitors about customers, market shares or resources of businesses. However, the nature of competition today is not destroy An opponent that is an enterprise must create and bring customers higher or newer added value than their competitors so that they can choose themselves without going to competitors (Michael Porter, 1996). There are many economic and managerial theories of competition, of which the two most mentioned concepts are competitiveness and competitiveness and competitive advantage in explaining differences in performance competition among economic entities (countries, industries, companies, households). The competitiveness of the enterprise is to demonstrate the strength and advantages of the enterprise compared to competitors in the best satisfaction of customer requirements for higher and higher profits. Thus, the competitiveness of the enterprise must first be created from the power of the business. These are the internal factors of each business, not only calculated by the criteria of technology, finance, human resources, corporate governance organization separately but need to be evaluated and compared with the Competitive partners operating in the same field, the same market. 2. DATA AND RESEARCH METHODOLOGY In this study, the author uses qualitative research methods to assess the current situation and makes some recommendations to improve the competitiveness of the Telecommunications Services Corporation before the impact of the public revolution. Industry 4.0. The figures are provided by the Corporation. The author also compared the field of post and telecommunication with other services to assess the opportunities and challenges of the telecommunications industry before the impact of the industrial revolution 4.0. 1 Ph.D student, Faculty of Political Economy Political Academy. 40
2. 3. RESULTS FINDING 3.1. Status of competitiveness of Telecommunication Service Corporation 3.1.1. Financial capacity In 2019, under the general difficult conditions of the economy, the fierce competition of the telecommunications marke-information technology and the context of urgently implementing the Restructuring Project, the Corporation continued to implement. present strong and effective solutions in business management and administration. With many synchronous business solutions and great efforts, in 2019, the Corporation achieved a total revenue of VND 101,055 billion, reaching 104% of the plan, equal to 106% compared to the performance in 2018; total profit reached 6,310 billion, reaching 103% of the plan, equal to 112% compared to the implementation in 2018; total state budget remittance reached 5,850 billion VND, reaching 103.5% of the plan, equal to 118% compared to that in 2018 with the same period profit of the dependent accounting unit. Meanwhile, Military Telecom Corporation (Viettel) in 2019, this unit achieved revenue of 196,650 billion VND, reached 104% of the plan, up 20% compared to 2018. Profit before tax reached 40,532 billion VND, equal to 103% of the plan, up 10.5% compared to 2013; profit after tax reached 31.459 billion, reaching 105% of the plan, up 15%. Viettel also contributed 15,434 billion Dong to the State budget, reaching 104% of the plan. As for MobiFone, last year, despite being heavily influenced by the separation from the Corporation, this enterprise achieved a total revenue of VND 36,605 billion, equaling 101.4% of the year plan. Although this revenue decreased by 7.3% compared to 2018, profit before tax increased by 5.2% to VND 7300 billion and equal to 100% of the year plan. State budget remittance is estimated at VND 3926 billion. 3.1.2. Market share In addition to the achieved results on the financial indicators, the corporation's market share of post and telecommunications services compared with its competitors is always affirmed in the leading position in the market. Figure 1. Market share (subscription) of fixed telephone service providers Source: White Paper on Information Technology 2019 Figure 2. Market share (subscribers) of 2G and 3G mobile service providersSource: White Paper on Information Technology 2019 41
3. Figure 3. Market share (subscribers) of enterprises providing broadband Internet access services (fixed and mobile) Source: White Paper on Information Technology 2019 Figure 4. Market share of postal businesses by revenue 2018 Source: White Paper on Information Technology 2019 3.1.3. Management and operating capacity In recent years, although there are many unfavorable factors, the Corporation has always strived to fulfill the objectives and tasks set out. This result shows a part of management capacity of the Board of Directors of the Telecommunication Service Corporation and the determination of the Corporation's staff. The Board of Directors of the Corporation has always been close to the grassroots level, promptly removed the problems and difficulties of the member units. The functional management boards have done a good role of advisory, acumen, flexibility in the management and management. The management team is regularly trained to improve the capacity and qualifications at home and abroad to acquire advanced management experiences applied to the Corporation's production practices. The management mechanism has been improved, the management and operation have been continuously strengthened in all areas of work; The system of management documents was issued promptly and synchronously to facilitate activities. This is reflected in systems of internal management mechanisms, management processes and service delivery; system of service quality standards; The system of economic and technical norms has been continuously issued, amended and perfected, showing the management capacity of the leaders very closely to business activities, creating effective management tools in production administration. Up to now, the general management and operation has made many progresses, with many adjustments and innovations to meet practical requirements. Decentralization and expansion of initiative have been associated with the responsibilities of the leaders of units; has reduced the meeting mode, increased online dialogue, reduced administrative procedures; focus on reviewing, quickly and resolving difficulties and problems; create a synchronous, fast and timely coordination between the advisory and management functional departments. 42
4. 3.1.4. Marketing competence – About pricing policy: The Corporation has been more proactive in proposing and handling issues on postage and telecommunications services, flexibility in response to market fluctuations, attracting customers, improving product quality. The development of roadmap and fee reduction plan has been closely following market movements, along with large–scale marketing and promotion programs that have increased competitiveness, attracted customers and increased production of service. In addition, the Corporation has proposed price options in the direction of management by charge frames, in accordance with the regulations of the state for enterprises with a controlling market share, creating a flexible initiative in production. business activities and in the application of customer classes, strengthening decentralized price management for service owners. At the same time, the Corporation has been more proactive in negotiating, connecting with other telecommunications businesses, expanding cooperation in the common use of infrastructure; problems in negotiating connection charges and connection agreements are discussed and resolved in time. In addition, the Corporation has implemented regulations on connection charges, guiding member units to implement mechanisms related to control and payment of connection charges. – About advertising, promotions and marketing: Advertising, promotion and brand development activities have been implemented faster and stronger than before, through the media, radio, television, cultural festivals and specialized forums (the Vietnam Telecom Exhibition, Vietnam Expo, Information Week, Postage Stamp Exhibition, conferences, seminars ), the Corporation's reputation and the brand of services continue to be developed, confirmed specified. In addition, advertising activities of post and telecommunication services have improved, innovated, and public relations have been improved in various forms, contributing to the establishment of the prestige, closeness and reliability of enterprises. with domestic and international customers. In addition to promotional activities, the Corporation has implemented flexible sales measures on the basis of compliance with the provisions of the law: issuing commission discounts on the sale of prepaid cards. telecommunications services, new policies on promotions for agents ; implement promotions combined with discount, action programs for customers, encourage subscribers to use the service to implement customer care measures accordingly and effectively. In order to improve business efficiency in a competitive environment, linking businesses with markets and customers, the Corporation has organized a marketing and sales mechanism suitable to the size of each unit. Up to now, 100% of the member units have established rooms, payment teams, sales teams and specialized staff. Awareness on business, competition, spirit, attitude, service style of officials and employees working at service points, transactions, and customer care centers have been raised. Organized seminars on business in key areas, business services with high competitiveness; continue to strongly implement the action program for customers; implement solutions to maintain customers and develop, expand market share of post and telecommunications services; categorize customer classes and effectively implement trade discount and reward programs; fulfilling commitments to support and contracts with large customers in the development of wide area networks such as the system of commercial banks, People's Committees of big provinces, cities, industrial parks 3.1.5. Brand and reputation Telecommunication Services Corporation is a one–member limited liability company with a history of construction and development of nearly 70 years, a service provider base throughout the country, with nearly 14,000 service points. It can be said that, when it comes to telecommunications and post services, most people understand that it is attached to the post office and attached to the Corporation. Domestic competitors cannot have this long history and tradition. Culture – the identity of the Corporation is manifested by the Gold Star Medal, Labor Hero of the renovation period. Besides, 43
5. because the Corporation is a large state corporation with high reputation, it is very convenient in creating the so–called "trustworthy" in the market. Users feel more confident when using financial services provided by the Corporation. For example, postal savings service, separate insurance postal services for the Corporation's internal customers (stable and stable markets) and other customers to ensure the General's activities. companies from provinces and cities and the Corporation's overall operations are always highly secure for customers using the postal and telecommunication services. This is also an outstanding advantage of the Corporation. Because it is a state-owned enterprise and a traditional service provider, the Corporation has more advantages in attracting domestic and foreign investment capital because investors believe in the ability. Profit of the Corporation and financial security when doing business with the Corporation. The Corporation has always implemented well the brand identity program, along with activities, customer care programs, advertising, sales promotion, media, newspapers to help improve the reputation and position and the Group's image is close, friendly to customers both domestically and internationally. According to VNR500 Ranking – Top 500 Vietnam's largest enterprises in 2018 organized by Vietnam Assessment Report Joint Stock Company (Vietnam Report) in collaboration with VietNamNet Electronic Newspaper, the Corporation continues to be in the top 10 enterprises. largest enterprise in Vietnam. Thus, in 8 years from 2010 to 2018, the Corporation has continuously been in the top 10 of this Ranking Table. Also in 2018, the Corporation is the only Vietnamese telecommunications enterprise to be ranked in the "Top 100 famous ASEAN brands 2018". This is a voting program organized by the Vietnam Association of Science and Technology in cooperation with the Ministry of Information – Culture – Tourism and the Ministry of Industry and Trade of Laos. 3.2. Impact of industrial revolution 4.0 on the Corporation's competitive strategy Compared to the previous three industrial revolutions, the Fourth Industrial Revolution is considered to have a faster and more widespread diffusion, with greater influence on many industries and fields, affecting the large population. more people in the world. With government, technology and equipment allow citizens and governments to interact more easily and quickly. People have closer access to the government to oversee and comment; while the government will also have stronger tools to improve operational efficiency, as well as to strengthen its management and leadership with the people. With businesses, the introduction of new technology, new production methods lead to changes in both supply and demand sides. Quick suppliers in technology application in product research and distribution will improve the quality and lower the cost of products. As a result, there will be a greater opportunity to dominate the market. On the demand side of goods, consumers' expectations for products and services are increasing. The existence of large databases and the popularity of social networks will help manufacturing businesses understand consumers' needs and behaviors to design and deliver tailored products, suitable, suitable for each individual customer. Some impacts of Industry 4.0 on the Corporation: Challenges of developing telecommunications infrastructure, Internet. The achievements of Industry 4.0 are built on the basis of digital technology, so the role of broadband telecommunications infrastructure with large capacity, real time is very important. Challenges in building large databases and data centers. Industry 4.0 will form supercomputers and big databases. This is the foundation for developing cloud computing technology and the ability to analyze, calculate and extract data to serve the business and production activities of enterprises, as well as in economic management – society of government agencies. 44
6. Challenges of information safety and security. In Industry 4.0, the database systems, devices accessing and connecting to the Internet are getting bigger and more popular, the illegal attacks and intrusions of networks, databases, smart devices are increasing day by day. Increasing, posing a series of challenges related to security, safety and network security. Challenges from the need for high quality human resources, meeting the requirements of Industry 4.0. This is a common challenge, covering and presenting all the challenges mentioned above. Industry 4.0 requires human resources to meet two basic components: executive and technology innovation. 3.3. Some solutions to improve the competitiveness of the Telecommunications Service Corporation in the near future Firstly, improve internal resources and financial performance. To thoroughly use the Corporation's capital resources such as balancing the use of capital for production and business activities and capital construction investment to ensure effective and proactive activities; evaluate the effectiveness and feasibility of projects to take measures to accelerate the completion of important projects and recover investment capital in inefficient projects or outdated technologies on an overall scale, as well as member units; convert loan capital to the most efficient reinvestment capital source; increase capital turnover; select the fields that need reasonable priority investment; strengthening the management and use of contributed capital in joint-stock companies and joint-venture companies; select suppliers of experienced equipment, low cost and guaranteed quality to make the investment capital more effective. Increasing the attraction of investment capital: In order to stand firm in the integration competition, especially in the context of business entering a new stage – the "take-off" period of the post and telecommunications industry, the Corporation needs a huge amount of capital to invest in infrastructure, network development, products and markets, in which investment should be focused on modern technologies to be able to provide quality products and services. amount higher. Therefore, the corporation needs to take advantage of the advantages of a large and prestigious group in Vietnam to attract investment capital from diversifying forms of capital mobilization such as commercial credit, equitization, joint venture, association; issuing bonds and shares at home and abroad; financial leasing; attract idle capital from businesses, localities, economic sectors, population classes, ODA Regularly implement the balance of using capital for production and business activities and capital construction investment to ensure effective initiative. In addition to mobilizing and using the above capital sources, the corporation as the largest D TCI provider in Vietnam can mobilize preferential loans from VTF with low interest rates, conditions uncomplicated loan to invest in developing network and infrastructure in remote areas, extremely difficult areas, ineffective business subject to support from VTF. In order to limit the disadvantage of capital and the efficiency of capital use in this market area of the corporation. Strengthen the management of debt collection and handling of bad debts; management of inventory materials and equipment; managing cash flow at member units: Strengthening supervision and strict management of outstanding debts, bad debts, and collecting debit fees, contributing to the financial health of the Group; outstanding debts between the member units of the Development Cooperation and the Labor Credit Union are quickly reviewed, compared and settled; synchronously combine many positive and close measures, remove difficulties, accelerate the settlement of investment capital, and completely handle the outstanding works of the previous period. Secondly, innovating technology, equipment and improving network quality and service quality. For BC–PHBC network: Organize the postal network under VNPost's production organization renovation scheme. Streamline the first-class mail network in the direction of increasing the use of 45
7. social media to minimize transportation costs, and can be transported continuously, anytime, anywhere instead of just serving every day 2 trip. Review and systematize all existing regulations, professional regulations, supplement and build new ones in the direction of computerization, simplification of procedures and publications. To promptly formulate and promulgate a Regulation on management of exploitation and transportation activities; The system of quality criteria for mail and newspaper delivery; Regulating service of price declaration, postal service without address. For telecommunication and Internet network: In order to improve the quality of telecommunication and Internet networks, the corporation needs to regularly invest, upgrade and expand network capacity, using advanced modern technologies to ensure network quality and information is continuous, smooth, shorten service time. Minimize information errors such as network errors and service latency. In addition, the corporation needs to develop and improve network quality standards and standards to ensure timely network exploitation, handling and troubleshooting. It is necessary to continue organizing and exploiting the optimal network, shortening the processing cycle and providing services, applying modern technologies in network management and administration (executive management, work handling and remote response, via the Internet ). Regularly statistics the network quality indicators. Compare these indicators with the corresponding targets of the competitors, find out the points that the competitors are more than themselves to find remedies. In addition, the corporation also needs to well organize the work of testing, maintaining and maintaining the network and service quality. Building a laboratory of sufficient size and capacity to test and evaluate new equipment and technologies. Thirdly, innovating and improving R&D capacity. Focusing on R&D is an important and regular task that leading telecom groups in the world perform to launch new products to market, propose organizational improvement solutions. Production to improve competitiveness compared with competitors. Therefore, the corporation needs to focus on improving the existing R&D capacity by: – Continue to improve the system of regulations, guidelines for synchronous, comprehensive and highly feasible R&D activities to attract, encourage and motivate research teams to maximize their creativity and creation, launch science and technology products to meet demands; – Building close relationships between the corporation and its agents to identify issues that need to be researched and solved arising from units, disseminating research results, solutions and measures to overcome difficulties, problems of units; – Organize the development and implementation of key strategic and strategic science and technology programs and at the same time ensure adaptation to changes in organization, management, administration and business models; – Invest appropriately in technological innovation research to enhance the competitiveness and efficiency of production and business activities, proceeding to master key technologies to boost production of products with high technology content, export oriented; – Support and encourage the import of advanced technologies, decode, master and localize imported technologies and cooperation between enterprises, research institutes and universities in technological innovation and product innovation products; – Increasing investment in developing S&T potentials, institutionalizing contents related to training, fostering, using, treating and honoring intellectuals; – Promote international cooperation on science and technology to shorten the gap between science and technology. 46
8. 4. CONCLUSION AND RECOMMENDATION Industry 4.0 will surely create many opportunities in improving technology level, improving production capacity, competing product chains, creating attractive and potential investment opportunities in the field of digital technology, Internet. These are basic advantages and opportunities for Vietnamese enterprises in general and telecommunication services in particular. In order to improve the competitiveness, the telecom service corporation needs to synchronously implement the above solutions as well as well implement the competitive strategy in the coming time. REFERENCES 1. Nguyen Huu Thang (2009), Competitiveness of Vietnamese enterprises in the current trend of international economic integration, National Political Publishing House, Ha Noi. 2. Nguyen Thi Lien Diep và Pham Van Nam (2008), Business strategy and policy, Labor – Social Publishing House, Ho Chi Minh city. 3. Dang Duc Thanh (2010), Improving the competitiveness of enterprises in the integration period, Youth Publishing House, Ho Chi Minh city. 4. Minh Chau (2005), Economic group and some problems in building an economic group in Vietnam, Post Office Publishing House, Ha Noi. 5. Nguyen TD & Barrett NJ & Fletcher R (2006), Information internationalization and internationalization: Evidence from Vietnamese firms. International Business Review, 15 (6): 682–701. 6. Nguyen TD & Barrett NJ (2007), Internet-based knowledge internalization and firm internationalization: Evidence from Vietnam. Advanced international Marketing, 17, pp. 369–394. 7. Nguyen TD, Barrett NJ & Nguyen TMT (2004), Cultural sensitivity, information exchange, and relationship quality. Journal of Customer Behaviour, 3(3), pp. 281–303 8. Nguyen TD, Barrett NJ & Nguyen TMT (2007), The role of market and learning orientations in relationship quality: Evidence from Vietnamese exporters and their forein importers. Advances in International Marketing, 17, pp. 107–133. 9. Nguyen, T., & Nguyen, T.M.T. (2003), Brand equity and its antecedence in Vietnamese market. Working paper. UEH. 47