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Local marketing to attract foreign direct investment FDI in Quang Nam province - 2


LIST OF TABLES


Number

board

Table name

Page

2.1

The relationship between local marketing and corporate marketing

31

2.2

Factors attracting FDI according to Lall (1997)

52

2.3

Local marketing implementation process

55

3.1.

Number of projects in the priority list for investment attraction

Quang Nam province period 2013 - 2017

76

3.2.

Waiting time to get a certificate of land use rights

Land use and business registration certificate

79

3.3.

Current status of large industrial parks in Quang Nam province

81

3.4.

Transport, electricity, water and waste treatment infrastructure in the Zones

CN

82

3.5.

Business opinions on job referral services

85

3.6.

Prices of some services in industrial parks of Quang Nam province

South compared to neighboring localities

86

3.7.

Recruitment costs, labor training and business satisfaction

for workers

87

3.8.

Business assessment of general education quality

information and vocational training

88

3.9.

Some economic indicators of Quang Nam province in 2013

– 2018

89

3.10.

Partners introduce and guide foreign investors

choose investment location

90

3.11.

Local product promotion activities

91

3.12.

Indicators for assessing the capacity of local governments

97

3.13.

Business assessment of problem solving

difficulties in 2017

98

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Local marketing to attract foreign direct investment FDI in Quang Nam province - 2



Number

board

Table name

Page

3.14.

Quang Nam Provincial Government Mobility Index

Male

99

3.15.

Current status of foreign direct investment in Quang Nam province

Male as of December 2016 by investment sector

104

3.16.

Foreign direct investment in Quang Nam province

2012 - 2018 period by investment sector

105

3.17.

Current status of foreign direct investment in Quang Nam province

Males as of December 2016 by country, territory

107

3.18.

Foreign direct investment in Quang Nam province

2012 - 2016 period by country, territory

108

3.19.

The impact of local product distribution factors

115

4.1.

Economic development goals of Quang Nam province in the period

2016 – 2025

126

4.2.

Economic development goals for the period 2016 –

2025

127


LIST OF DIAGRAM



Number

diagram

Diagram name

Page

1.1

Research framework on national competitiveness factors of

Che-Ha et al., (2015)

12

2.1

Sales perspective

24

2.2

Marketing perspective

24

2.3

Marketing management process

25

2.4

Ashworth and Voogd's model of place marketing

(1990)

33

2.5

Fretter's (1993) model of place marketing

36

2.6

Kotler & Associates' local marketing model

(1993)

37

2.7

Marketing mix in local marketing

56

2.8

Mix - territory

58

2.9

Proposed research model

61

4.1

SWOT Model

138


INTRODUCTION


1. Urgency of the topic

Quang Nam Province is a province in the Central Key Economic Zone with a natural area of ​​about 10,500 km2 and a population of about 1.5 million people, near Da Nang International Airport and between two major international seaports, Da Nang and Ky Ha. Quang Nam is also the province that established the first coastal open economic zone in the country - Chu Lai Open Economic Zone and has rich tourism potential with two world cultural heritages: Hoi An Ancient Town, My Son Ancient Temple Complex and Cu Lao Cham World Biosphere Reserve. However, internal resources for development are still limited, so in recent years, the provincial government has made constant efforts to open up to attract foreign investors. In 2019, the province granted 19 new foreign investment projects with a total registered capital of nearly 84.5 million USD from investors from countries such as Korea, China, Japan, USA, UK, New Zealand, etc. The total number of valid projects in the province to date is 188 projects with a total investment capital of 5.9 billion USD, the investment fields mainly focus on processing - manufacturing, tourism - services industries...

On the other hand, the competitive environment to attract foreign investors is becoming increasingly fierce as localities in the region and localities belonging to countries in the region such as Laos, Cambodia, Myanmar also tend to promote investment promotion activities. In that context, investment attraction activities of Quang Nam province need to be implemented strategically, scientifically and systematically to create sustainable competitive advantages for the province in the process of attracting investment in the coming years.

Research practices and experiences in social development and attracting foreign direct investment in localities around the world and in Vietnam show that local marketing is a suitable way to organize, implement and evaluate effective foreign direct investment attraction activities. Marketing approaches in attracting investment are of the nature of a service-oriented administration, considering local government as


“salesperson” and investors are “customers” and the product to be sold is “local product”. From this approach, local authorities must change their perception of their role in attracting foreign direct investment, the content to be implemented in attracting investment and their behavior towards foreign investors. Local marketing to attract foreign direct investment can be seen as a set of activities to initiate, maintain and change the attitudes and behaviors of foreign investors towards the locality and thereby attract foreign investors to set up investment projects. Many provinces and cities that have been and are attractive investment destinations for foreign investors have conducted specific research and evaluation of local marketing activities and have specific solutions to implement local marketing in attracting foreign direct investment. These are: Ho Duc Hung (2015) researched in Ho Chi Minh City, Dang Thanh Liem (2013) researched in Ben Tre, Cao Thai Huy (2019) researched in the Southeast provinces, Nguyen Huy Hoang (2019) researched in Ha Tinh, etc. Quang Nam province's activities to attract foreign direct investment are also local marketing activities. However, local marketing research aims to attract foreign direct investment in a systematic, scientific and strategic manner, thereby fully assessing the current situation and proposing development solutions suitable to the practical situation to ensure sustainable attraction of foreign direct investment.

The doctoral student decided to choose the topic "Local marketing to attract foreign direct investment (FDI) in Quang Nam province" as the topic of his doctoral thesis for the following reasons:

*About scientific significance

- Systematize theoretical issues on local marketing: Concept; Theoretical models of marketing; Content of local marketing;

- Present the need to implement local marketing to adapt to the competitive environment, establish a new vision, a reasonable and correct development strategy to achieve the local socio-economic goals. Emphasize the role of the local government in creating an investment environment, improving


administrative procedures, compensation and clearance, creating clean land funds, investing in infrastructure to serve investment, and preferential policies to attract foreign investors...;

-The thesis conducts local marketing research based on the combination of two perspectives, which are the supplier's perspective (supply aspect) and the investor's perspective (demand aspect).

-Clarify the difference between corporate marketing and local marketing; the relationship between local marketing and attracting foreign investment.

- Review and select to define local marketing models and local marketing strategy tool elements to attract FDI into necessary local industries and fields;

*About practical significance

- The number of investment projects in Quang Nam province in recent years is still not commensurate with the development potential of the province, the scale of the projects is still small, an average of 33.50 million/project, the contribution of the foreign-invested sector only reaches 4-5.2% of the local GDP. It has not attracted international corporations with high technology to invest in the area, on the other hand, it mainly attracts projects in the hotel and assembly sectors, so there are not many opportunities to receive advanced production technologies and increase the added value of products; the percentage of implemented capital over registered capital in the period 2010 - 2018 only reached about 9.86%, etc. Therefore, in Quang Nam, it is necessary to promote local marketing to attract FDI capital sources, creating resources for the implementation and completion of socio-economic development goals.

- Up to now, the Provincial People's Committee and relevant agencies have only issued annual directives on investment promotion, and have not yet developed a medium and long-term local marketing strategy to carry out local marketing activities in a comprehensive and systematic manner.

- According to the author's understanding:

+ Empirical studies in localities, provinces and cities in Vietnam have only approached marketing from different aspects and perspectives, and have not yet approached the full marketing content according to the model of Ashworth and Voogd (1990).


Philip Kotler (1993); on the other hand, in Quang Nam province, there has been no research on local marketing in attracting foreign direct investment.

+ There has been no research in Vietnam that combines two perspectives on local marketing, which are the supplier's perspective (supply aspect) and the investor's perspective (demand aspect).

2. Research objectives and tasks

2.1. Research objectives :

Assess the current status of local marketing in recent years and propose local marketing solutions to attract foreign direct investment in Quang Nam province in the period of 2021-2025, with a vision to 2030.

2.2. Research tasks :

The thesis has the following research tasks:

- Overview of local marketing and its relationship with attracting foreign direct investment in Quang Nam province.

- Analysis of the current situation of local marketing and attracting foreign direct investment in Quang Nam province.

- Proposing solutions to improve local marketing in attracting foreign direct investment in Quang Nam province in the period of 2021 - 2025, with a vision to 2030.

3. Research object and scope

3.1. Research object : Local marketing activities to attract foreign direct investment.

3.2. Scope of research : In terms of space, the research was conducted mainly in Quang Nam province. In terms of time, the thesis studies the current situation in the period 2013 - 2018 and proposes solutions for the period 2020 - 2030.

4. Research methods

The thesis uses qualitative methods and collection, analysis and evaluation techniques such as:

a/ Statistical, analytical and synthetic methods are used to evaluate


Local marketing of Quang Nam province on the following contents: Analysis of current situation; Establishing local marketing goals for attracting FDI capital; Building local marketing programs; Implementing marketing-mix activities for attracting FDI capital; Inspection and evaluation.

b/ Data source:

- Secondary data from reports and documents of the Provincial People's Committee, relevant departments and units.

- Primary data

+ In-depth interviews: Conducted with representatives of the following units: Center for Public Administration and Investment Promotion, Quang Nam Province Industrial Parks Management Board, Chu Lai Open Economic Zone Management Board, Department of Planning & Investment, Department of Foreign Affairs, Department of Industry and Trade, Department of Culture, Sports and Tourism and Provincial People's Committee Office (Appendix 3.20 A) to obtain more information on viewpoints and detailed assessments of local marketing activities to attract FDI in the province.

+ Questionnaire survey: For investors with projects in Quang Nam, the author asked staff at the Center for Public Administration and Investment Promotion, Department of Planning and Investment, Chu Lai Open Economic Zone Management Board and Industrial Park Management Board to introduce and approach 100 investors to answer the survey (Appendix 3.20 B). The sample structure of surveyed investors was stratified according to the criteria of investment sector and country/territory of the investor corresponding to the current investor structure in the province. The results obtained 76 survey forms that met the information requirements.

For investors who are looking for investment opportunities in Quang Nam, the author asked staff at the Center for Public Administration and Investment Promotion to distribute 100 survey forms to investors participating in investment promotion sessions organized by Quang Nam province domestically and internationally and investors who came to contact the Center to find information. The sample structure of this subject was not stratified for the convenience of staff at the Center for Public Administration and Investment Promotion because the number of potential investors was unknown in advance. The results obtained 74 survey forms that met the requirements.

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