Strengthening the application of information technology to improve the competitiveness of small and medium enterprises in Vietnam - 1


FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL BUSINESS AND ECONOMICS

MASTER OF FOREIGN ECONOMICS


GRADUATION THESIS


Topic:

ENHANCE THE APPLICATION OF INFORMATION TECHNOLOGY TO IMPROVE THE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM


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Instructor

Student name Class

: Nguyen Thi Thuy

: English 8

: 44

: Prof. Dr. Nguyen Thi Mo

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Strengthening the application of information technology to improve the competitiveness of small and medium enterprises in Vietnam - 1


Hanoi, May 2009

INDEX

INTRODUCTION 1

CHAPTER 1: OVERVIEW OF SMALL AND MEDIUM ENTERPRISES, COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES AND ENHANCED APPLICATION OF INFORMATION TECHNOLOGY TO IMPROVE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES 5

I. GENERAL OVERVIEW OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM 5

1. CONCEPT OF SMALL AND MEDIUM ENTERPRISES 5

2. CRITERIA FOR DETERMINING SMALL AND MEDIUM ENTERPRISES 6

3. THE ROLE OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM'S ECONOMY 10

3.1. SMALL AND MEDIUM ENTERPRISES ARE A SECTOR THAT MAKES SIGNIFICANT CONTRIBUTIONS TO ECONOMIC GROWTH 11

3.2. SMALL AND MEDIUM ENTERPRISES CREATE MANY JOBS FOR WORKERS 12

3.3. SMALL AND MEDIUM ENTERPRISES ARE A SECTOR THAT ATTRACTS CAPITAL FROM THE PEOPLE 12

3.4. SMALL AND MEDIUM ENTERPRISES PLAY AN IMPORTANT ROLE IN SUPPORTING LARGE ENTERPRISES, MAKING THE ECONOMY MORE DYNAMIC AND EFFICIENT 13

3.5. SMALL AND MEDIUM ENTERPRISES CAN EASILY EXPLOIT THE RICH POTENTIAL IN THE PEOPLE 13

3.6. SMALL AND MEDIUM ENTERPRISES CONTRIBUTE TO INCREASING PEOPLE'S INCOME 13

3.7. SMALL AND MEDIUM ENTERPRISES PLAY AN IMPORTANT ROLE IN ECONOMIC STRUCTURAL TRANSFORMATION 14

II. COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES 15

1. CONCEPT OF ENTERPRISE COMPETITIVENESS 15

1.1. CONCEPT OF COMPETITION 16

1.2. CONCEPT OF ENTERPRISE COMPETITIVENESS 17

1.3. FACTORS AFFECTING ENTERPRISE COMPETITIVENESS 19

2. INDICATORS FOR ASSESSING ENTERPRISE COMPETITIVENESS 23

2.1. QUANTITATIVE INDICATORS 24

2.2. QUALITATIVE INDICATORS 24

III. THE NECESSITY OF APPLYING INFORMATION TECHNOLOGY TO IMPROVE THE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES261. INFORMATION TECHNOLOGY AND ITS ROLE IN ENTERPRISES 26

1.1. CONCEPT OF INFORMATION TECHNOLOGY 26

1.2. THE ROLE OF INFORMATION TECHNOLOGY IN BUSINESS ... 28

2. THE RELATIONSHIP BETWEEN COMPETITIVENESS AND INFORMATION TECHNOLOGY APPLICATION IN SMALL AND MEDIUM ENTERPRISES 29

3. THE NECESSITY TO STRENGTHEN THE APPLICATION OF INFORMATION TECHNOLOGY TO IMPROVE THE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM IN THE CURRENT CONDITIONS... 31

3.1. STRENGTHENING THE APPLICATION OF INFORMATION TECHNOLOGY TO REDUCE INPUT COSTS FOR PRODUCTS 32

3.2. STRENGTHENING THE APPLICATION OF INFORMATION TECHNOLOGY TO PROMOTE THE EXPLOITATION OF MARKET INFORMATION 32

3.3. STRENGTHENING THE APPLICATION OF INFORMATION TECHNOLOGY TO IMPROVE THE INFORMATION TECHNOLOGY ABILITY OF STAFF IN SMALL AND MEDIUM ENTERPRISES IN VIETNAM 34

CHAPTER 2: CURRENT STATUS OF APPLYING INFORMATION TECHNOLOGY TO IMPROVE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM 35

I. ASSESSING THE CURRENT STATE OF INFORMATION TECHNOLOGY OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM 35

1. CURRENT STATUS OF INFRASTRUCTURE AND TECHNICAL CONDITIONS FOR APPLYING INFORMATION TECHNOLOGY IN SMALL AND MEDIUM ENTERPRISES IN VIETNAM 35

1.1. TECHNICAL INFRASTRUCTURE 35

1.2. CURRENT STATUS OF INFORMATION TECHNOLOGY HUMAN RESOURCES IN SMALL AND MEDIUM ENTERPRISES 44

2. CURRENT STATUS OF LEVEL AND SCOPE OF INFORMATION TECHNOLOGY APPLICATION IN SMALL AND MEDIUM ENTERPRISES 46

2.1. APPLICATION OF INFORMATION TECHNOLOGY IN ENTERPRISES 46

2.2. LEVEL AND SCOPE OF INFORMATION TECHNOLOGY APPLICATION IN SMALL AND MEDIUM ENTERPRISES 48

II. CURRENT STATUS OF APPLYING INFORMATION TECHNOLOGY TO IMPROVE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM531. CURRENT STATUS OF IMPROVING THE CAPACITY TO EXPAND PRODUCT MARKETS THROUGH ENHANCED ELECTRONIC MARKETING 53

1.1. ELECTRONIC MARKETING 53

1.2. INITIAL RESULTS 54

1.3. LIMITATIONS 58

2. CURRENT STATUS OF IMPROVING BUSINESS MANAGEMENT CAPACITY THROUGH ENHANCED INFORMATION TECHNOLOGY TRAINING FOR STAFF OF SMALL AND MEDIUM ENTERPRISES 58

2.1. INITIAL RESULTS 58

2.2. LIMITATIONS 62

3. CURRENT STATE OF IMPROVING COMPETITIVENESS IN CUSTOMER ATTRACTION THROUGH E-COMMERCE DEVELOPMENT. 63

3.1. E-COMMERCE HELPS SMALL AND MEDIUM ENTERPRISES ATTRACT NEW CUSTOMERS AND IMPROVE CUSTOMER SERVICE QUALITY 63

3.2. E-COMMERCE HELPS SMALL AND MEDIUM ENTERPRISES INCREASE REVENUE 65

3.3. LIMITATIONS 68

CHAPTER 3: SOME SOLUTIONS TO ENHANCE THE APPLICATION OF INFORMATION TECHNOLOGY TO IMPROVE THE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES IN VIETNAM, MEETING POST-WTO REQUIREMENTS 70

I. FORECASTING THE IMPACT OF INFORMATION TECHNOLOGY ON THE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES POST-WTO 70

1. FORECAST BASIS 70

1.1. DEVELOPING INFORMATION TECHNOLOGY TO TAKE A SHORTCUTS TO TAKE ADVANTAGE OF BUSINESS OPPORTUNITIES AFTER VIETNAM JOINS THE WTO 70

1.2. WTO AND E-COMMERCE 73

2. REQUIREMENTS FOR INFORMATION TECHNOLOGY DEVELOPMENT FOR SMALL AND MEDIUM ENTERPRISES IN VIETNAM 75

II. SPECIFIC SOLUTIONS 77

1. GROUP OF SOLUTIONS TO ENHANCE INFORMATION TECHNOLOGY TO IMPROVE COMPETITIVENESS OF ENTERPRISES 77

1.1. INCREASING INVESTMENT IN TECHNICAL INFRASTRUCTURE TO IMPROVE THE QUALITY OF HUMAN RESOURCES - A DETERMINING FACTOR FOR ENTERPRISES' COMPETITIVENESS 77 1.2. INCREASING FOREIGN LANGUAGE TRAINING COMBINED WITH SYNCHRONIZED TRAINING IN PROFESSIONAL PROFESSIONS AND INFORMATION TECHNOLOGY TO IMPROVE THE FORECASTING CAPACITY OF SMALL AND MEDIUM ENTERPRISES 80

2. GROUP OF SOLUTIONS TO IMPROVE COMPETITIVENESS OF PRODUCTS, GOODS AND SERVICES ON THE BASIS OF ENHANCED E-COMMERCE DEVELOPMENT 82

2.1. DEVELOPING E-COMMERCE TO SAVE COSTS, REDUCE PRODUCT AND SERVICE COSTS 82

2.2. DEVELOPING E-COMMERCE TO SHORTEN THE TIME OF NEGOTIATION, CONTRACT SIGNING AND COST SAVINGS 83

3. OTHER SOLUTIONS GROUP 85

3.1. GROUP OF SOLUTIONS ON THE STATE SIDE 85

3.2. BUSINESS SOLUTIONS GROUP 88

CONCLUSION 91

LIST OF REFERENCES 93

LIST OF TABLES

TABLE 1: PROPORTION OF ENTERPRISES BY LABOR SIZE IN THE PERIOD 2001-2006 8

TABLE 2: NUMBER OF ENTERPRISES BY LABOR SCALE IN THE PERIOD 2001-2006

................................................................ ................................................................ .......................................... 8

TABLE 4: CONTRIBUTION TO GDP OF SME IN THE PERIOD 2001-2005 11

TABLE 5: COMPANY COMPUTER DISTRIBUTION OVER THE YEARS 2006-2008 39

TABLE 6: COMPUTER DISTRIBUTION IN ENTERPRISES BY INDUSTRY 40

TABLE 7: STRUCTURE OF INVESTMENT IN IT IN ENTERPRISES IN 2004-2005. 50

TABLE 8: CHANGES IN BUSINESS INVESTMENT IN IT AND E-COMMERCE OVER THE YEARS 2005-2008 51

TABLE 9: STRUCTURE OF INVESTMENT IN IT IN ENTERPRISES OVER THE YEARS 2004-2007 60

TABLE 10: ASSESSMENT OF E-COMMERCE EFFECTS OF ENTERPRISES OVER THE YEARS 2005-2008 64

TABLE 11: CUSTOMER TARGET OF BUSINESS WEBSITE 2006 64


LIST OF CHARTS

FIGURE 1: LABOR SIZE OF ENTERPRISES SURVEYED IN 2008

................................................................ ................................................................ ................................... 36

FIGURE 2: COMPUTER ALLOCATION IN ENTERPRISES IN 2008 38

FIGURE 3: TYPES OF ENTERPRISE INTERNAL NETWORKS OVER THE YEARS 2006-2008 41

FIGURE 4: LEVEL OF INTERNET ACCESS OF ENTERPRISES THROUGH THE YEARS 2004-2008 42

FIGURE 5: FORMS OF INTERNET ACCESS BY ENTERPRISES OVER THE YEARS 2004-2008 43

FIGURE 6: PROPORTION OF EMPLOYEES USING COMPUTERS REGULARLY 44

FIGURE 7: PROPORTION OF ENTERPRISES HAVING STAFF SPECIALIZED IN IT AND E-COMMERCE OVER THE YEARS 2004-2007 46

FIGURE 8: ROADMAP FOR IT APPLICATION IN ENTERPRISES ()48

FIGURE 9: FORMS OF IT TRAINING FOR STAFF BY BUSINESS SIZE IN 2008 61

FIGURE 10: LEVEL OF ENTERPRISE PARTICIPATION IN E-COMMERCE EXCHANGES IN 2008 66

FIGURE 11: CHANGES IN REVENUE FROM E-COMMERCE APPLICATIONS OVER THE YEARS 2005-2008 66

FIGURE 12: SIZE OF ENTERPRISES PARTICIPATING IN THE E-COMMERCE EXCHANGE 68


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LIST OF ABBREVIATIONS


ADSL:

Asymmetric digital subscriber line

(Asymmetric Digital Subscriber Line)

APEC:

Asia-Pacific Economic Cooperation Forum

(Asia - Pacific Economic Cooperation)

B2B:

Business-to-Business E-Commerce Transactions

(Business to Business)

B2C:

E-commerce transactions between businesses and individuals

(Business to Consumer)

C2C:

E-commerce transactions between individuals

(Consumer to Consumer)

IT:

Information technology

Company:

Business

State-owned enterprises:

State-owned enterprise

DNSVN:

Small and medium enterprises

DTNN:

Foreign investment

E-commerce:

E-commerce

LLC:

Limited liability

UN/CEFACT

:

United Nations Trade Facilitation and Electronic Commerce Organization

(United Nations Center for Trade Facilitation and Electronic Business)

UNCITRAL:

United Nations Commission on International Trade Law

(United Nations Conference on International Trade Law)

UNCTAD :

United Nations Forum on Trade and Development

(United Nations Conference on Trade and Development)

VCCI:

Vietnam Chamber of Commerce and Industry

(Vietnam Chamber of Commerce and Industry)

WTO:

World Trade Organization

(World Trade Organization)

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