Factors of the Internal Business Environment

Localities with low level of tourism service skills and qualifications. While this is the decisive factor for the quality of community-based tourism services provided to tourists. Therefore, to bring the highest satisfaction to tourists participating in community-based tourism activities, social enterprises in the community-based tourism sector need to carefully study these factors to come up with appropriate strategies, bringing efficiency to their business operations.

Competitors of social enterprises in the field of community tourism in Vietnam today are easily identified as social enterprises and traditional enterprises in the same industry. In particular, traditional enterprises operating for profit are the factor that has a great impact on social enterprises in the field of community tourism. This is also easy to explain because tourism is currently a hot development industry with a lot of demand from the general tourist market. While many traditional enterprises have been operating long enough to build a brand in the market, most social enterprises in the field of community tourism have been operating for very little time, so their brand recognition and competitiveness in the market are still very limited. In addition, the fact that most of the social enterprises have not been properly trained in their profession is also one of the weaknesses that social enterprises face. This will create difficulties in corporate governance for social enterprises in the field of community tourism.

According to the survey results, customers are the next factor after competitors that affect the development of social enterprises. Customers are the ones who bring revenue to the business activities of enterprises. The number of tourists and their consumption habits will affect the implementation of business activities of an enterprise. Currently, social enterprises in the field of community tourism are gradually accessing courses to improve their capacity and quality of service to tourists. This will help social enterprises in the field of community tourism better understand the process of serving tourists with the aim of bringing the highest experience and satisfaction to customers.

The final factor in the business environment that affects the development of social enterprises in the field of community tourism is the supplier. The supplier of products and services provided to tourists during their participation in tourism activities at the destination will determine the level of satisfaction of tourists. For tourism products such as package tours that combine many different suppliers, supplier quality management is a mandatory requirement for social enterprises in the field of community tourism. However, currently, community tourism activities often take place in an identifiable community space, so managing suppliers is not a difficult task for social enterprises in the field.

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However, not all businesses/households that sell community tourism products are aware of the role of suppliers in providing products and services, so the level of professionalism in managing the quality of input products and services from suppliers is not high. This has more or less affected the experiences of tourists when they participate in community tourism activities in localities in Vietnam today.

2.2.2. Factors of the internal environment of the enterprise

In addition to external factors of enterprises (including factors of the macro environment and the business environment), internal factors of enterprises also have a significant impact on the performance and development of social enterprises in the field of community tourism, specifically factors such as human resources, material resources and some other factors. In particular, human resources are considered the most important factor from within the enterprise that has a decisive impact on the quality of operations of social enterprises in the field of community tourism. Because tourism is a service industry, the quality of tourism services in general and community tourism services in particular depends on the quality of human resources participating in the process of providing products and services to customers. Meanwhile, most of the community tourism locations are located in places with majestic natural scenery and rich indigenous cultural identity but quite far from the center, so the level of education and tourist service skills of community tourism workers here are not high. This is a big challenge for social enterprises in the field of community-based tourism when they have to compete with other businesses in the same community-based tourism product segment to make a profit while also fulfilling their committed social goals.

60%

52.0%

50%

47.3%

44%

49.3%

40%

32.7%

30%

25.3%

20%

13.3%

Very unimportant Not important Average

Important

Very important

10%

7.3%

0% 1.3%

Human resources

4.7%

6.7%

2.7%

Material resources

Invisible resources

Figure 2.23. The level of influence of internal business environment factors on the development of social enterprises in the field of community tourism in Vietnam

(Source: Survey data and calculations of graduate students)

2.3. Policy on developing social enterprises in the field of community tourism in Vietnam

Legal and policy factors are considered to have an overarching influence on the development of enterprises in general and social enterprises in the field of community-based tourism in particular. Thanks to the regulations on social enterprises stipulated in the Enterprise Law 2014, the business environment of social enterprises will certainly be clear, transparent and have many advantages for development. This legalization acts as a legal framework for departments and levels of government to issue specific policies to support this type of enterprise. However, currently, in addition to the regulations in Article 10 of the Enterprise Law 2014 and a number of legal documents guiding the registration of social enterprises, legal documents related to social enterprises are not really complete with specific regulations at relevant levels, departments and sectors.

Some legal documents that are currently being used to apply to social enterprises in general can be listed: Enterprise Law No. 68/2014/QH13 dated November 26, 2014; Decree No. 96/2015/ND-CP dated October 19, 2015 of the Government detailing a number of articles of the Enterprise Law; Circular No. 20/2015/TT-BKHĐT dated December 1, 2015 of the Ministry of Planning and Investment guiding on business registration; Circular No. 04/2016/TT-BKHĐT dated May 17, 2016 of the Ministry of Planning and Investment stipulating document forms used in social enterprise registration.

In addition, the Vietnamese Government is currently in the process of developing a community-based tourism policy. It is expected that this document will help provide partners with a clear and coherent concept of community-based tourism in Vietnam and a vision for everyone to aspire to. However, the State’s support and encouragement for community-based tourism in Vietnam is currently also reflected in many policies and regulations of many different ministries, departments and sectors. These are:

 Vietnam Tourism Law (2017): Vietnam Tourism Law is the highest legal document regulating domestic tourism activities. This law has mentioned a number of regulations to support the development of community-based tourism, emphasizing the close relationship between ecotourism and community-based tourism in achieving sustainable tourism development in Clause 1, Article 5. Accordingly, the principle of tourism development is sustainable development, which is: " Develop sustainable tourism, according to planning and plans, ensuring harmony between economy, society and environment; develop with focus and key points in the direction of cultural - historical tourism, ecotourism; preserve, embellish and promote the value of tourism resources".

 Law on Environmental Protection (2005): In addition to providing regulations on environmental protection in tourism activities, the Law on Environmental Protection encourages the development of eco-tourism models in natural landscapes other than tourist destinations and types to create harmony between humans and nature. This content is mentioned in Clause 1, Article 31 of this Law on the protection and development of natural landscapes:

“1. The State encourages the development of ecological models for villages, hamlets, residential areas, industrial parks, entertainment areas, tourist areas and other types of natural landscapes to create harmony between humans and nature.

2. Organizations and individuals conducting planning, construction, production, business, service and living activities must ensure requirements for preserving and embellishing natural landscapes.

3. Ministries, ministerial-level agencies, Government agencies, and People's Committees at all levels, within the scope of their tasks and powers, are responsible for planning, organizing the management, protection, and development of natural landscapes in accordance with the provisions of this Law and other relevant legal provisions.”

In addition, Article 45 of this Law clearly stipulates environmental protection measures in tourism activities:

“1. Organizations and individuals managing and exploiting tourist areas and tourist attractions must implement the following environmental protection measures:

a) Post regulations on environmental protection at tourist areas and tourist attractions and provide instructions for implementation;

b) Install and arrange adequate and reasonable sanitary facilities and waste collection equipment;

c) Arrange for environmental sanitation forces.

2. Tourists are responsible for complying with the following regulations:

a) Comply with regulations and instructions on environmental protection of tourist areas and tourist attractions;

b) Dispose of waste into waste collection equipment in the correct place;

c) Keep tourist attractions clean;

d) Do not damage the landscape, nature reserves, natural heritage, or living species in tourist areas and tourist attractions.

3. The central state management agency for tourism shall preside over and coordinate with relevant ministries, ministerial-level agencies, government agencies and provincial People's Committees to direct, guide and inspect the implementation of environmental protection in tourism activities in accordance with the provisions of this Law and other relevant legal provisions.

 Law on Biodiversity (2008): “The Law on Biodiversity emphasizes that ecotourism is a criterion for establishing national parks (Clause 4, Article 17), nature reserves, and

nature (Part b, Section 2, Article 18) and landscape protection areas (Part C, Article 2, Clause 20). Ecotourism is also emphasized as an activity for households and individuals legally residing in the above-mentioned local nature reserves, giving them the right to “participate in and benefit from tourism business activities in the reserve” (Part B, Section 4, Article 30). Therefore, Section 4, Article 5 on the State's policy on conservation and sustainable development of biodiversity also emphasizes the State's ecotourism development policy, which is: “Developing ecotourism associated with hunger eradication, poverty reduction, ensuring stable life for households and individuals legally residing in the reserve; sustainable development of the buffer zone of the reserve.”

 Decree No. 109 (2003/ND-CP) issued on September 23, 2003: Article 21 of Decree No. 109 (2003/ND-CP) issued on September 23, 2003 on conservation and sustainable development of wetlands, stipulates that the conservation of wetlands and exploitation activities must be sustainable in relation to the role of local communities, and stipulates that tourism development is considered a priority in wetlands, especially ecotourism, as an effective conservation method. Accordingly:

“1. The State encourages the development of eco-tourism and the organization of traditional festivals and folk festivals in wetlands to raise people's awareness of nature and environmental protection.

2. Organizations and individuals participating in tourism, cultural and commercial activities in wetlands must be responsible for protecting resources, ecosystems and the environment.

3. Festival, sightseeing and tourism activities in wetland conservation areas must be approved by and must comply with the instructions of the wetland conservation area management agency.”

 Law on Forest Protection and Development, Decree No. 23 (2006/ND-CP), and Decision No. 186 (2006/QD-CP): Article 53 of the Law on Forest Protection and Development stipulates tourism business activities in special-use forests as follows:

“Combining landscape, resort, eco-tourism and environmental business in special-use forests.

1. Organizing activities combining landscape, resort and eco-tourism business

- The environment within the special-use forest must have a project approved by a competent state management agency.

2. The activities specified in Clause 1 of this Article must comply with forest management regulations, forest protection regulations, tourism laws, cultural heritage laws, environmental protection laws and other relevant legal provisions.”

 Decree 23 (2006/ND-CP) on the Implementation of the Law on Forest Protection and Development regulates the business of landscape, resort, and eco-tourism in forests, stating:

“1. Forest owners are allowed to organize or lease forests and forest environment to organizations, households and individuals for landscape, resort and eco-tourism business in the forest and must ensure the following principles:

a) Does not adversely affect the goals of biodiversity conservation, environmental landscape and protective effects of the forest.

b) It is not allowed to build tourist facilities in strictly protected zones and ecological restoration zones in special-use forests.

c) Must ensure safety and comply with the instructions, inspections and supervision of the Forest Management Board.

d) Create conditions for households and individuals living in the forest to participate in tourism service activities.

2. Organizing landscape, resort and eco-tourism business activities in the forest. Forest owners must prepare investment projects and submit them to competent authorities for approval and organize implementation in accordance with the approved projects; investment procedures and order shall comply with Government regulations on management of construction investment projects. Forest owners shall decide on their own investment and be responsible for projects using other sources of capital.

 Decision No. 186 (2006/QD-CP) on promulgating regulations on forest management regulating tourism activities in special-use forests: Article 22 of this decision provides regulations on ecotourism activities in special-use forests:

1. Ecotourism activities in special-use forests are carried out in accordance with the provisions of Article 53 of the Law on Forest Protection and Development and Decree No. 23/2006/ND-CP of the Government.

2. Forest owners are allowed to organize ecotourism business activities, lease forest environments or use land use rights and economic values of biodiversity resources and forest landscapes to enter into joint ventures or partnerships with other investors, organizations and individuals investing in ecotourism business in special-use forests.

The organization of ecotourism in special-use forests must be established as an investment project and submitted to the competent state agency for approval.

Ecotourism development projects in special-use forests must meet the following requirements:

a) Does not adversely affect the goals of biodiversity conservation, environmental landscape and protective effects of the forest.

b) Construction of tourism facilities must comply with the forest planning approved by competent authorities:

- In the strictly protected area, trails, shelters, and signs are set up for patrolling and serving ecotourism. Trails serving tourism must ensure the safety of visitors and follow the instructions and inspections of the forest owner.

- In the ecological restoration zone, main roads are opened and works are built to protect and develop forests in combination with serving service and tourism activities.

- In the service - administrative subdivision, landscape protection area, research forest, scientific experiment area, architectural works are built to serve management, scientific research and organization of service - tourism activities.

- The order and procedures for construction works shall comply with the provisions of law on construction.

- The Ministry of Agriculture and Rural Development provides guidance on the proportion of land area used for construction of ecotourism and resort facilities in special-use forests; regulates the assessment of economics, biodiversity resources and landscapes of special-use forests and coordinates with the General Department of Tourism to provide guidance on the management of ecotourism activities in special-use forests.

c) Create conditions for households and individuals living in special-use forests to participate in tourism services.

Thus, according to the provisions of the law and documents issued under the law, ecotourism business activities can be conducted in special-use forests (including national parks, nature reserves and forest landscape protection areas) but must ensure contributions to nature conservation activities here.

 Decision No. 104 (2007/QD-BNN): Decision No. 104 (2007/QD-BNN) on promulgating regulations on management of ecotourism activities in national parks and nature reserves was issued by the Ministry of Agriculture and Rural Development on December 27, 2007. This decision provides guidance on ecotourism activities in national parks and business principles in nature reserves. In particular, Article 4, Chapter 1 of this decision provides principles for organizing ecotourism:

“1. Ecotourism activities must not affect the natural succession of ecosystems, the natural life of wild animals and plants, natural landscapes as well as the cultural identity of local communities in national parks and nature reserves.

2. Profits from ecotourism services are reinvested in biodiversity conservation in national parks and nature reserves. The rate of reinvestment for conservation is implemented according to state regulations .

3. Local communities participate in and benefit from ecotourism activities to increase income as well as awareness and responsibility for nature conservation and biodiversity.

In addition, in section 3, article 7 on the management of ecotourism activities of this decision also mentions local communities with ecotourism activities. In which, it clearly stipulates:

“a) Organizations and individuals doing business in ecotourism must give priority to local communities participating in these activities, creating jobs and gradually improving the lives of local people.

b) Local communities have the right to participate in and enjoy legal benefits from tourism activities, and are responsible for protecting natural resources, preserving local cultural identity; ensuring security, order, social safety, and environmental sanitation to create tourist attraction.

c) Local communities are given the opportunity to invest in tourism development, restore and promote cultural forms, folk arts, traditional crafts and occupations; produce local goods to serve eco-tourists, contributing to improving the material and spiritual life of local people"

 Vietnam Tourism Development Strategy to 2020, Vision to 2030: The growth of Vietnam Tourism in the recent period has made a positive contribution to socio-economic development but at the same time also poses significant challenges in ensuring the balance of economic, cultural, social and environmental factors for sustainable development. Vietnam Tourism Development Strategy to 2020, Vision to 2030 points out the priority directions and responsible tourism development policies to regulate and balance the growth process: "Implement sustainable development policies; have preferential policies for the development of eco-tourism, "green" tourism, community-based tourism, and responsible tourism" . The strategy orients economic, cultural, social and environmental responsibilities in all areas from policy making to planning, resource exploitation, product development, business organization and tourist services:

- Regarding economic responsibility: Tourism activities bring about local, regional and area economic growth through attracting participation and sharing benefits with local residents and businesses, making optimal use of local resources, manpower and labor; having policies to encourage, create favorable conditions and enhance capacity for local residents and businesses;

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