Promote the reforming administrative procedures, focusing on four main areas: 1 -
Implement administrative reform in the direction of one door to "one mark"; 2- Electronic
transactions; 3 - E-government; 4 - Applying quality management system conforming to
national standard (TCVN ISO). At the same time, proceeding to build a provincial
administrative service center. Accordingly, the functions and duties of the center will be the
place to guide, receive and return results of solving administrative procedures for organizations
and individuals according to the list of administrative procedures approved by the chairman of
the provincial People's Committee. At the same time, people and businesses only need to
contact, submit files and receive the results at a single center, instead of filing and returning the
results at the departments and sectors in the province. Process of administrative procedures in
accordance with ISO 9001 standards to improve the quality of public administrative service
delivery. At the same time, the center will also digitize administrative records, build enterprise
databases; files and administrative procedures digitized in the network environment. This
will be the basis for e-government in the future.
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364
LOCAL BRANDS OF PHUTHO PROVINCE FROM THE
PERSPECTIVE OF DOMESTIC INVESTORS
PhD. Pham Thi Thu Huong
huongdhhv84@gmail.com
Faculty of Economics and Business Administration - Hung Vuong University
MBA. Pham Thi Thu Huong
phamthuhuong266@gmail.com
Faculty of Economics and Business Administration - Hung Vuong University
Dr. Pham Thi Nga
phamngaktct@gmail.com
University of Economics and Business Administration - Thai Nguyen University
PhD. Luu The Vinh
luuthevinh227@gmail.com
Faculty of Political Theory - Hung Vuong University
Dr. Dinh Hong Linh
dhlinh23@gmail.com
University of Economics and Business Administration - Thai Nguyen University
Abtract
The research was conducted to analyze the local brands of Phu Tho province from
the perspective of domestic investors. Through the research framework of local brands
equity‟s six elements and data collected from the survey of 425 domestic investors in Phu
Tho province. The results show that local brands of Phu Tho province are highly valued by
domestic investors. However, there are still aspects that have not been appreciated and
that need to be addressed. Based on the results of the study, the researchers proposed to
increase the value of local brands, helping to retain existing investors and attracting
potential investors to Phu Tho province.
Key words: local brands, investors, domestic investors, Phu Tho province.
1. Introduction
Today, local brands have become an indispensable part of the global competition
for attracting investment for local economic development. Local brands bring many
benefits, not only to local and local public, but to all stakeholders such as investors,
residents and tourists. Therefore, local governments and organizations need to be aware of
the importance of building local brands, exploiting their strengths, and having appropriate
development strategies to enhance their local position in the eyes of the target customers.
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At present, in the structure of Vietnam's investment capital, domestic capital plays
a decisive role. As a mountainous midland province in the north, Phu Tho has a great
potential for economic development. In the period from 2012 to 2016, domestic capital
accounts for a high propotion (95.13%), foreign investment accounts for a relatively low
proportion of total provincial investment (8.87%). This structure represents the advantage
of domestic investment.
In recent years, investment capital in general and domestic investment capital in
particular in Phu Tho province has been contributing to the socio-economic development
of the locality, actively participating in economic restructuring, improving the living
standards of the population. However, investment capital in the province in the past years
is below the potential and strength of the province. Phu Tho province is in the period of
industrialization - modernization, the demand for capital for socio-economic development
is very large.
The plan to attract the total investment capital of the whole society in the 2016-
2020 period is over 95 trillion VND. In order to reach the target by 2020, Phu Tho is
basically an industrial province, the attraction of domestic investment capital is a matter of
survival. Therefore, the research on the local brands of the province from the perspective
of domestic investors, from which solutions to increase the value of local brands,
contributes to retain the current investors and to attract potential investors for Phu Tho
province is really necessary.
2. Method
The study used three main methods, including:
(1) Data collection method: Use the research method at the desk to collect
secondary data. Use qualitative research method with in-depth interviewing techniques and
quantitative research methods with survey techniques through questionnaires to collect
primary data.
The respondents are domestic investors, who are investing in Phu Tho province.
Sample size is 425 with the form of direct vote. The research uses a non-probability
sampling method with a convenient sampling form to proactively select the most
accessible and well-informed survey respondents.
In the research, the survey was inherited and developed from Jacobsen's local
brands equity scale (2012). Using the Likert scale to collect domestic investors' perceptions
of local brands equity in Phu Tho province. Level 5 is strongly agreed, level 4 is agreed,
level 3 is neutral, level 2 is not agree and level 1 is very disagreeable.
(2) Data processing method: Data collected, encoded, entered into Excel software
and calculated necessary indicators such as percentage below the level of agreement, %
neutral, % from the level of agreement and above and the mean.
(3) Data analysis method: The study used a descriptive and comparative statistical
method to analyze the necessary indicators to clarify the local brands of Phu Tho province
from perception and evaluation of domestic investors.
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3. Results
Domestic investors‘ evaluations on the local brands of Phu Tho province about
each element of local brand equity show more clearly about the current local brands of the
province.
Table 1. Domestic investors’ evaluation on the local brands of Phu Tho province
Observed variables
% below
the level of
agreement
%
neutral
% from the
level of
agreement
and above
Mean
Local brands’ personality
Appropriate investment location 0 6,12 93,88 4,29
Attractive investment location 0,24 7,53 92,23 4,29
Investment location is really good 0,24 12,47 87,29 4,14
Get to know the local brand
The first potential investment location to be
thought of
1,65 26,82 71,53 3,85
Popular places 16,24 34,82 48,94 3,47
Always interested in investors 1,18 15,29 83,53 4,03
Feeling’s Quality
The service quality is stable 0,24 11,53 88,23 4,29
Have good experience in public
administration‘s services
6,82 44,47 48,71 3,42
The service satisfies the demand 4,24 28,00 67,76 3,68
The services provided are guaranteed 0,47 22,82 76,71 3,86
Local authorities have professional working
methods
4,47 25,88 69,65 3,76
Impression of local brands
Favorable geographical location 0 9,18 90,82 4,26
Enough resources to support the investment
and business
0,94 12,71 86,35 4,14
Good infrastructure 0,24 12,71 87,05 4,17
Belief in local brands
Provide public service as committed 1,65 43,76 54,59 3,56
Commitment to government service is
reliable
0,71 42,35 56,94 3,62
Communication with businesses is always
open and honest
0,71 35,06 64,23 3,76
Have faith in local activities 0,71 8,94 90,35 4,37
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Observed variables
% below
the level of
agreement
%
neutral
% from the
level of
agreement
and above
Mean
Local brands’ image
Have positive feeling and evaluation when
referring to Phu Tho
0,47 10,59 88,94 4,27
Phu Tho is a symbol of positive values 0,71 26,59 72,70 3,92
The investment in Phu Tho is associated with
the convenience
0 20,47 79,53 4,02
Safe and stable investment environment 0 13,88 86,12 4,33
Local people are friendly and respect the
community
0 7,30 92,70 4,5
* Local brands’ personality
According to statistics from the observation variables measure the local brand
personality of Phu Tho province, observation variables were rated with a high score of
4.14 to 4.29 on average. Of these, 93.88% of businesses rated at the agreed level (level 4)
and strongly agreed level (level 5) suggesting that Phu Tho was a suitable investment
location for their businesses. In addition, Phu Tho was highly appreciated by investors
about the level of attractiveness for enterprises‘ business activities (92.23% agreed and
strongly agreed). 87,29% of surveyed enterprises agree that Phu Tho is a good investment
destination. As such, the province needs to strengthen the attractiveness factors to become
a really good investment destination in order to attract more investors.
Phu Tho is the gateway of the northwestern and midland markets with more than
20% of the population of the country. Phu Tho is a densely populated province (by 2017
the province‘s average population is 1,392,000), of which, 759.8 thousand people labors
aged 15 and over working in the economic sectors, the percentage of trained labors is
60.5%, of which 26.7% of trained labors are working in the economic sectors (Phu Tho
province‘s Statistical Office, 2017). This is both a potential market and a factor to create
favorable conditions for investors to invest in Phu Tho province. Moreover, Phu Tho
province‘s geographical location creates favorable conditions and great potential for
production and trade with other regions in the country and internationally.
* Get to know the local brand
Data related to local brand awareness showed that the mean value of observed
variables was lowest at 3.47 and highest at 4.03. In particular, Phu Tho was not highly
appreciated in the observation variable that Phu Tho is well-known in investment and
business activities (average score was 3.47 and 16.24% was below the agreed level;
34.82% neutral), the reason is that in Phu Tho province, there are not strong investors in
capital and technology, strong and influential brands in key areas of the province;
moreover, local promotion activities have not been implemented regularly, synchronously
and not effectively to attract investors in these areas. However, Phu Tho was highly
368
appreciated by investors (83.53% agreed and strongly agreed), 71.53% said that Phu Tho is
the first potential investment place they think of.
The result of this evaluation is is that over the years, the provincial leaders are very
interested in the business community and investors in the province. Accordingly, the
province has focused on promoting business support, thoroughly grasp all departments and
sectors should implement well solutions to improve the business environment, support the
development of enterprises in the spirit of Resolution No. 19 -2016/NQ-CP dated 28 April
2016 and Resolution No. 35/NQ-CP dated 16 May 2016 of the Government to Phu Tho
becomes a new destination of domestic and foreign investors. Apart from preferential
policies of the state, the province also introduced many appropriate mechanisms and
policies to support the development of enterprises through the issuance of documents
relating to investment incentives for enterprises investing in the province, specifically:
Decision No. 04/2012/QD-UBND on investment support for investment projects in Phu
Tho province, which stipulates investment support for investment projects in the province
such as land policy, infrastructure policy and cost of ground leveling, providing services
related to electricity and water to the fence of industrial zones and clusters, creating
favorable conditions for enterprises to promote trade; Decision No. 25/2012/QD-UBND
regulating support for small and medium industrial enterprises to invest in modernizing and
modernizing technology in priority areas of development in Phu Tho province; Resolution
No.15/2014/NQ-HDND stipulates special support policies to encourage enterprises to invest
in agriculture a rural areas in Phu Tho province in the period 2015-2020. At the same time,
the province directs the branches and local administrations at all levels to advise on measures
to remove difficulties and obstacles in site clearance, shorten the time for settlement of
investment procedures, early table hand over clean premises for business; to create all
conditions on electricity, water and infrastructure for production; encourage businesses to
invest in expansion of production and business in line with the provincial master plan. In
addition, the province also supports enterprises seek investment location; to support and
create conditions for enterprises to promote investment and trade promotion.
* Feeling’s Quality
The evaluation data on feeling‘s quality of investors in the local brands of Phu
Tho's province is above average. In particular, the experience of public administrative
services of enterprises has not been highly appreciated, although the average score is 3.42>
3 points (higher than the agreed rate) but the rate below the agreed level is 6, 82% and the
rate from the minimum level of consent is lowest among all observed variables (48.71%).
In contrast, investors highly appreciated the stability of service quality, the average score is
4.29 and 88.23% of enterprises rated this criterion at the agreed level or higher. Although
the service quality is quite stable, it still does not meet the demand of enterprises. At the
same time, there are still 4.47% of enterprises assess the local government lacking in the
professional working methods.
Over the past years, the Party and authorities of Phu Tho province have had many
solutions in the reform of administrative procedures, the province has issued many legal
documents to create the legal basis and the necessary conditions for the implementation of
369
reforming administrative procedures. Specifically, some documents such as: Scheme No.
4635 / DA-UBND dated 16/12/2011 on orientation to raise the provincial competitiveness
index of Phu Tho province in 2011-2015 period; Decision No. 14/2014/QD-UBND dated
November 10, 2014 promulgating the regulation on implementation of the one-stop-shop
mechanism in solving some administrative procedures for investment projects in the
province; Plan No. 1199/KH-UBND dated April 9, 2012, Plan No. 803/KH-UBND dated
18/03/2013 and plan No. 5592/KH-UBND dated 26/12/2014 of the Provincial People's
Committee on implementing the state administrative reform of Phu Tho province in 2015,
Plan no. 5491/KH-UBND dated 31/12/2015 of the Provincial People's Committee on state
administrative reform of Phu Tho province in 2016-2020 period. Accordingly, the
departments and sectors, the People's Committee of districts and urban areas have used the
one-stop electronic gateway intergrated with online public service portal of Phu Tho
province from October, 20, 2016. Administrative procedures are applied the electronic
one-stop software in receiving and solving procedures at level 2.
Although the province has paid much attention to the reform of administrative
procedures, the implementation of administrative procedures under the one-stop-shop
mechanism has been deployed. However, there is no consistent among and sectors,
coordination between levels and sectors is not synchronous. At the same time, the service‘s
quality at the one-door department of the departments is not really open to meet the needs
of investors. In addition, the reform of administrative procedures is the common direction
of all localities throughout the country, in the trend of reform, Phu Tho province has not
kept up with many other localities. Therefore, this field is not the strength of the province
in the eyes of investors.
The results are also consistent with provincial indicators such as the performance
and provincial public administration indicators, Public Administraion reform (PAR) index
of Phu Tho province.
Chart 1. Evaluation’s results on PAPI, PAR INDEX of Phu Tho province in the
period of 2013 - 2016
(Source: CECODS, 2013 - 2016; Interior Ministry, 2013 - 2016)
35
25
3 4 4
7
11
21
0
5
10
15
20
25
30
35
40
Năm 2013 Năm 2014 Năm 2015 Năm 2016
PAPI
PAR INDEX
370
In the period of 2013 - 2016, the local authorities in Phu Tho province have made
great determination and efforts to improve the quality of public administrative service
delivery and enhance the provincial competitiveness. As a result, the effectiveness of state
management and policy‘s implementation and public service‘s delivery of the authorities
at all levels of Phu Tho province is also highly appreciated by the people (shown by the
ranking results PAPI increased from 35
th
in 2013 to 4
th
in 2016). However, the assessment‘s
results of people and enterprises on administration reform‘s activities of Phu Tho
province continuously decreased, from the 4
th
in 2013 to 21
st
in 2016. Although provincial
indicators related to public administration services and local government of Phu Tho
province are highly appreciated, however, these results have not kept up with other
provinces and cities in the country.
The assessment on the professionalism of local government is related to the index in
dynamism and pioneering of provincial leaders.
Table 2. Composition indicators of the dynamism index of the Phu Tho provincial
government in the period of 2013 – 2016
Indicators 2013 2014 2015 2016 Mean
Provincial People's Committee is flexible in the legal
framework to create a favorable business environment
for private enterprises.
39,66 60 73,63 68,75 60,51
Provincial People's Committee is very active and
creative in addressing emerging issues.
33,04 49 54,65 50,68 46,84
Perceptions of the business on the attitude of the
provincial government towards the private sector.
33,59 37 40,38 39,56 37,63
There are good initiatives at provincial level but not
well implemented in departments and sectors.
55,86 84 83,91 78,95 75,68
Provincial leaders have policies and policies that are
not properly implemented at the district level.
27,83 56 70,73 60,27 53,71
The reaction of the province to the unknown in the
central policy/document: "delay implementation and
seek guidance" and "do nothing".
58,16 45 25,45 31,37 39,99
Index of dynamism and pioneering of provincial leaders 3,93 3,9 4,63 4,65 4,28
(Source: VCCI Vietnam, 2013 - 2016)
In recent years, the leaders of Phu Tho province have been interested in organizing
dialogue meetings with the business community at home and abroad. But the number of
enterprises increased over time as well as difficulties and problems have arisen so many such
contacts have not satisfied the needs of enterprises. Mechanisms and policies promulgated by
province are proposed by the specialized management agencies based on the guiding and
guiding framework of the central government. So if there is no flexibility and
professionalism in the administration and handling, it will cause difficulties for the business.
371
Although the province has promoted the development of the private sector in the
past time, the recognition of a part of civil servants on the role of the private sector is not
objective, It is not commensurate with the role of this sector in development. The results
show that in the period of 2013 - 2016, the assessment on the attitude of the provincial
government to the private sector is only 37.63% of businesses think positively. Although
there are 60.51% of businesses agree that "Provincial People's Committee is very flexible
in the legal framework to create a favorable business environment for private enterprises"
but 75.68% agreed with the statement "There are good initiatives at the provincial level but
not well implemented in the departments and sectors" and 53.71% agree with the statement
"Provincial leaders have policies and policies that are not properly implemented at the
district level". This comes from the quality of civil servants and leaders in the departments
and sectors of the province for the implementing tasks related to enterprises is weak; the
skills of some civil servants are limited; they don‘t know the legal regulations that lead to
guiding, handling and advising the leaders to remove difficulties and obstacles for
enterprises still have many limitations and cause difficulties for them. In the coming time,
the provincial government should pay special attention to this human resource.
* Impression of local brands
Investors' evaluation statistics also show that the geographic location of Phu Tho
province is highly appreciated by investors, 90.82% of surveyed enterprises agreed and
strongly agreed on Phu Tho with the favorable geographic location. At the same time, the
infrastructure and natural resources supporting the province's investment and business
activities were also highly appreciated by the investors with the average score of 4,17 and 4,14.
This can be explained by an analysis on the characteristics of: geographic location,
natural resources and infrastructure of the province.
Located at the confluence of the rivers, the northwestern gate of Hanoi capital, and
on the economic corridor of Kunming - Hanoi - Hai Phong, Phu Tho has important
roadways such as Hanoi - Viet Tri - Lao Cai Highway; Ho Chi Minh Road, Routes 32A,
32C and Route 70; Hanoi - Lao Cai railway; waterway in the Red river connects with delta
provinces, Northeastern and Northwest provinces This is an ideal location for investors.
In addition, Phu Tho has abundant natural resources, with large land area, suitable
for planting material trees for processing industries. The province has great potential for
trees of paper material, materials for agro-forestry products and some high-value mineral
resources such as kaolin, limestone, mineral water... to develop the mining and mineral
processing industries, cement, building materials, paper, ceramics... The province also has
rich tourist resources, with many historical, cultural and artistic monuments classified as
historic relics Hung Temple, Ao Chau pond... and the special cultural values of the
ancestors. Many folk and singing ―xoan create the unique features for Phu Tho, which is
the potential for attracting investment and developing the province‘s tourism.
In term of infrastructure, over the years, the province has paid special attention to
the construction and development of infrastructure. Accordingly, province‘s infrastructure
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has made breakthrough developments, especially the system of foreign traffic. At present,
there are 7 industrial zones and nearly 26 industrial clusters in the province. Industrial
parks are connected with up and down buttons the Hanoi-Lao Cai Highway and the Ho
Chi Minh Road. In that, basically completed the infrastructure of Thuy Van industrial
zone and some industrial clusters. The infrastructures of urban areas, agriculture, rural
areas and information communication have been strengthened. The buildings belonging
to the historical relics of Hung Temple, Hung Vuong Square, Van Lang Park are in the
stage of completion. In addition, the province is actively improving and raising the criteria
on urban type 1 of Viet Tri city; to build Phu Tho town into a city. These infrastructures
have contributed significantly to attracting investors to the province.
* Belief in local brands
Evaluation data on local brand beliefs of investors for Phu Tho province shows
that 1.65% of businesses think that Phu Tho does not ―provide public services such as
commitments‖. The average value of the observation variable of ―the local communication
with the business is always open and honest‖ to 3.76 points; of which, 0.71% was below
the agreed level, 35.06% neutral and 64.23% from the agreed level upwards. The result
is that over time, local authorities often hold dialogues, process and remove difficulties
for businesses, thereby create confidence for businesses (90.35% of enterprises believe in
local activities).
Determining trust is an important factor in retaining old customers and attracting
new customers. Over the past years, local authorities in Phu Tho have made efforts to
create trust for investors by transparency, friendliness, honest and creativeness. Dialogue
activities with businesses was also concerned by the province with a fierce takeover from
the province to the province‘s localities. Provincial leaders and departments, branches
and localities were involved in dialogue activities, thereby promptly removed difficulties
and properly handling many opinions and proposals of the business community. At the
same time, the province has implemented the hot line at all agencies and units in the
province to receive comments, reflects and recommendations of organizations,
individuals and enterprises on the services‘ moral and attitudes of civil servants and
officials in the process of solving administrative procedures. The provincial leaders have
renewed their thinking, renewed the leadership style, directed and organized the work in
the spirit of deep and effective. However, dialogue with businesses has not been done
regularly. It is still difficult for enterprises actively contact with provincial leaders, from
there, can‘t solve the shortcomings in terms of mechanisms and policies which cause
difficulties to enterprises when carrying out projects in the province. This negatively
affects the local image, especially the local government in the eyes of investors, causing
loss of confidence for current investors in the investment process and new investors
when learning about the investment environment of the province. In addition, the
provincial leaders have not yet created a forum, a reliable and effective information
channel for investors and enterprises to reflect their difficulties, obstacles and
aspirations when investing in the province.
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Together with dialogue activities, the province also organizes investment promotion
conferences to promote potentials, advantages, incentives and mechanisms, and create
forums for organizations, domestic and foreign investors to meet, dialogue, exchange
experiences, establish cooperative relationship for socio-economic development. The
provincial government has also made a commitment to investors. With the motto of
respecting partners, Phu Tho province always welcomes domestic and foreign investors,
commits to a transparent investment environment, always encourages and creates favorable
conditions in terms of mechanism, policies and procedures for investors to seek
opportunities and cooperation in the province. At the same time, local authorities are also
committed to accompanying investors, and will welcome investors as welcoming relatives,
see their success as their own success. Though it, the message conveyed: Investing in Phu
Tho is the right choice, looking forward to the future and having the foundation to ensure
success. Accordingly, the province has actively supported and assisted enterprises to enjoy
the preferential mechanisms and policies of the State and the province. This will be a
premise for businesses to invest, to expand their production and to stabilize their
development, create high production value, create jobs and income for employees,
contribute many budgets for the state and participate in social charity activities, contribute
to the development of the province.
* Local brands’ image
Statistics related to Phu Tho's local brand image show that Phu Tho's brand image is
highly appreciated by investors. Evaluation on the brand image of the province, the image
of the local people is evaluated with the highest average score of 4.5 points with 92.70%
from the level of agreement upward; followed by a safe and stable investment environment
with average mean at 4.33 points, 86.12% agreed and strongly agreed. 88,94% of
businesses feel positively when referring to Phu Tho and 72,70% of businesses think ―Phu
Tho is a symbol of positive values‖.
The above results are also consistent with the result of Phu Tho Provincial
Competitiveness Index. Determining PCI enhancement is one of the solutions needed to
attract investment, creating a premise for a high-growth and sustainable economy. Over the
past years, Phu Tho province has made great efforts in building an open and transparent
investment environment, helping businesses to secure investment, production and business.
The province has maintained its political stability, social order and safety, ensuring
national defense and security, building a strong political system, active prevention of
natural disasters, strengthening management of natural resources and protecting the
environment so that investors can rest assured their production and business activities in
the province. All levels and all sectors of the government have focused on reforming
administrative procedures, efforts to develop a system of solutions and mechanisms to
encourage the development of economic sectors, in which interest and facilitate the
development of the private sector. As a result, the business environment of the province
has improved markedly.
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Table 3. Results of PCI ranking in Phu Tho province for the period of 2013 - 2017
Indicators 2013 2014 2015 2016 2017
PCI 53,91 57,72 58,37 58,6 62,55
Rating 54 39 35 29 27
Rating group Relatively low Good Good Good Good
(Source: VCCI Vietnam, 2013 - 2016)
In 2013, PCI of Phu Tho is ranked low in the PCI rankings and is in the
relatively low ranking group. From 2014 to 2017, Phu Tho has improved its scores and
position on the chart, from 54
th
(in 2013) to 27
th
(2017), and continuously for three
consecutive years in good ranking group. It can be seen that PCI of Phu Tho Province
is improving and promising future growth. The results of the provincial PCI have
shown that the investment and business environment of the province is increasingly
appreciated by investors. However, this result has not kept up with other provinces.
Therefore, in the coming time, the province needs to have more synchronous and
drastic solutions to improve the investment and business environment, thereby building
a more active local image and increasing the brand image‘s value of the province in the
eyes of investors.
Thus, the evaluation of investors showed that the local brand of Phu Tho province is
basically at a relatively high level, in which local people, investment environment,
geographic location, natural resources, infrastructure, locality‘s potential and investor
interest are appreciated with average value at above 4 points. However, public services,
professional working methods, government commitment, popularity for investment and
business, communication between government and businesses have not yet reached a high
agreement. These are the local brand‘s factors affecting the decision to choose investment
location in Phu Tho province of domestic investors.
In the survey of the study, the researchers used a 5-level likert scale, with the
following levels: 1 - strongly disagree; 2 - Disagree; 3 - Neutral; 4 - Agree; 5 - strongly
agree. Thus, scores from 3.5 (between levels 3 and 4) are the result of positive reviews and
the observed variables score from 3.5 or above which means that domestic investors have
rated positive trend and acceptable level. However, with the objective of research to
increase local brand equity to retain and attract domestic investors in general and FDI
investors in particular, thus, in order to achieve the goal with high efficiency, the study will
concede observable variables with a rating of 4 or higher (agreed level) that are positive
and acceptable. In order to increase brand equity, it is necessary to improve the score of the
low-score observation variables, so that the study will focus on scales with a lower score of
4 for causal analysis and suggested solutions to improve those indicators and increase local
brand equity for Phu Tho province.
375
Table 4. The aspects that need to be improved in Phu Tho province
Biến quan sát Average mean
Phu Tho is a symbol of positive values 3,92
The services provided are guaranteed 3,86
The first potential investment location to be thought of 3,85
Local authorities have professional working methods 3,76
Communication with businesses is always open and honest 3,76
The service satisfies the demand 3,68
Commitment to government service is reliable 3,62
Provide public service as committed 3,56
Popular places 3,47
Have good experience in public administration‘s services 3,42
In aspects with an lower average score of 4, there are two aspects with scores below
3.5, including the experience in public administration‘s service with the lowest evaluation
(3.42 points) and Phu Tho is popular place (3.47 points). These are two aspects that the
province needs to pay special attention in the coming time. At the same time, public
services provided to investors are not really as committed (3.56 points), as a result, the
investors are not confident in government service‘s commitments (3, 62 points) and service
assessment has not really met the demand.
According to the observation variables with the average value below 4 points, it can
be summarized into 3 main issues that Phu Tho province has not appreciated, namely: (1)
The symbol and the popularity of the province; (2) Local government; (3) Public
administrative services.
In the coming time, to increase the local brand equity, Phu Tho should have the
solutions to improve the reputation of the province; enhancing the role of local government,
especially the innovation of working methods in the direction of professionalism, efficiency
and many communication activities of government with enterprises; and improve the
quality of public administrative services.
4. Discussion and Conclusions
Based on the results of analysis on the local brand of Phu Tho province from
perception of domestic investors, the local brand of the province is highly evaluated by
local investors, however, there are still some limitations should be improved. From there,
the study proposes some recommendations to promote and increase the local brand equity
of the province in order to retain and attract domestic investors to choose Phu Tho
province as a destination for investment and business.
* Promoting local brands
Continue the investment promotion conference. This is an important event to
promote, introduce the potential, strengths and attractive advantages of Phu Tho;
mechanisms and policies calling for investment of the province; Introduce information
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about the fields, projects that province priority calling for investment, production, business.
In the coming time, in order to promote higher investment efficiency, the province needs a
breakthrough in holding investment promotion conferences. Accordingly, the province
needs to establish relationships with reputable domestic and foreign investors investing in
the province to visit other countries and localities to hold investment promotion
conferences in order to increase accessibility and introduce the Phu Tho province to
potential investors, from there to attract more investors into the province.
Attracting investors with strong brands and linking, cooperating with other
localities. Currently, Phu Tho province does not have a real investor with strong brands to
attract more investors into the province. Therefore, Phu Tho province should have
mechanism and preferential policies to attract large-scale investors and strong brands to the
province, exploiting this factor will help the province promote the local brand, the result is
high efficiency in attracting investment. Phu Tho is a locality in the capital city planning,
which has many potentialities that can‘t be exploited locally and alone, therefore, it is
necessary to have cooperation from other localities, especially to call on businesses and
investors from other localities to increase investment in Phu Tho province. This will help
Phu Tho promote, introduce potential and call on other local investors to invest in
developing dominant and key sectors of Phu Tho province. Thereby, contributing to
exploiting the potential and strengths of the province and serving the objectives of socio-
economic development of the two localities.
Use a combination of promotional strategies. Due to the characteristics of local
products are only in that locality, little or no movement, therefore, in order to promote the
local brand, it is necessary to combine local‘s image promotion, promotion of local
attractions, promotion of local infrastructure and local people. (i) For local image
promotion: The province's image is designed to focus on the following three elements:
Emphasize opportunities that the province will provide to investors when they come to
invest in the province; Reflect the determination of the province to improve the investment
environment; Highlighting the differences of the province compared to other places. (ii)
For the promotion of local attractions: The province needs to select attractive places to
attract investors, such as Hung Temple Historical Relics, Ao Chau Pond, Thanh Thuy Hot
Mineral Water Resort, Xuan Son National Park (iii) For local infrastructure promotion:
The province needs to provide the information on infrastructure for investors, in which the
province has established the system of essential transport infrastructure; industrial parks
and clusters; cultural and social works. Tourism infrastructure and infrastructure for
agriculture, forestry and fisheries have also been strengthened and invested; initially put
into operation the component projects in the key tourist areas. Implement projects on
renovation and upgrading the power transmission system, ensuring stable supply of
electricity for production and business. The quality of information communication is
improved. This will be important premises and one of the factors influencing the choice of
location for investors by the infrastructure will contribute to promote the image and
attraction of province. (iv) For the promotion of local people: Promoting people can be
through celebrities; good local leaders; talented people, people with the spirit of starting a
business, and people who have moved to locality.
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Choice of effective media. Strong brand is a brand that brings trust to customers and
communicates brand value to customers in the most effective way. To promote the local
brand, Phu Tho province needs to use the media to convey value and brand attributes
strikingly to the investors through a variety of tools such as: (i) mass media, communications
such as books, magazines, television, the internet; ii) Participation in investment exhibitions
and seminars; (iii) Sponsorship programs, community relations or events; (iv) Send survey
delegations to source of investment.
* Improve the role of local government
The government is both an orientation force and an important factor in attracting
investment capital to serve the socio-economic development of the locality. In order to
enhance the role of local authorities in attracting investment into the province, should paid
attention to the following issues:
The province should respect and promote the role of Party committees and
authorities in attaching importance to the responsibility of the head. Continue implementing
the Plan No. 4191/KH-UBND on implementation of Directive No. 13/CT-TTg dated June
10, 2015 of the Prime Minister on strengthening the responsibility of the head of the
agency State level in the reform of administrative procedures (People's Committee of Phu
Tho province, 2015). To well implement the plan No. 1118/KH-UBND dated March 29,
2016 of the Chairman of the provincial People's Committee on anti-corruption work and
the contents of Directive No. 16/CT-UBND dated September 16, 2016 of Provincial People's
Committee on strengthening in the State administrative agencies.
Local government needs to be flexible and creative in the process of performing public
duties. Based on the policies and laws of the central government and the specific conditions and
situations of Phu Tho province, the provincial authorities should promote the development of a
legal document system that meets the requirements of the market economy, avoid overlapping,
conflicting, lack of stability and low eficiency. However, the creative regulations of the
provincial government on the basis of the central law should ensure the uniformity and
smoothness of the management apparatus and the strictness of the legal system in general.
In order to improve the quality and effectiveness of the legal documents issued by
the provincial authorities, the province should actively consult with relevant stakeholders.
For the planning documents, in the drafting process, the province needs to expand the
number of participants in the draft documents before promulgation. In addition to the
relevant stakeholders in the province, it is necessary to publicize the information and
suggest the provinces with similar conditions, the neighboring provinces to participate and
contribute ideas to improve the effectiveness of cooperation activities in the exploitation of
resources in the region, each locality.
* Improve the quality of public administrative services
Improve the quality of the contingent of civil servants and officials in terms of
qualifications, professional skills, working capacity and professional ethics: Among them,
to raise the sense of responsibility and work attitude to serve the people of the contingent
of officials, civil servants and employees, especially the staff working directly at the one -
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door department. Strengthen the training and fostering of professional knowledge and
skills, and communication skills as well as administrative behaviors to improve their
capacity as well as to help them understand the work, master and professional in the
process of performing task.
Promote the reforming administrative procedures, focusing on four main areas: 1 -
Implement administrative reform in the direction of one door to "one mark"; 2- Electronic
transactions; 3 - E-government; 4 - Applying quality management system conforming to
national standard (TCVN ISO). At the same time, proceeding to build a provincial
administrative service center. Accordingly, the functions and duties of the center will be the
place to guide, receive and return results of solving administrative procedures for organizations
and individuals according to the list of administrative procedures approved by the chairman of
the provincial People's Committee. At the same time, people and businesses only need to
contact, submit files and receive the results at a single center, instead of filing and returning the
results at the departments and sectors in the province. Process of administrative procedures in
accordance with ISO 9001 standards to improve the quality of public administrative service
delivery. At the same time, the center will also digitize administrative records, build enterprise
databases; files and administrative procedures digitized in the network environment. This
will be the basis for e-government in the future.
5. References
1. Ministry of Home Affairs (2013, 2014, 2015, 2016), Report of the PAR index -
Par index of ministries, level agencies, The People's Committees of the provinces and
cities directly under the Central Government, Hanoi.
2. CECODS (2013, 2013, 2015, 2016), PAPI 2015 - The Provincial Governance
and Public Administration Performance Index, measured by real-life experiences of the
people, Hanoi.
3. Jacobsen, B.P. (2012), "Place brand equity: a model for establishing the effectiveness
of place brands", Journal of Place Management and Development, 5 (3), 253 - 271.
4. Phu Tho People's Committee (2012), Decision No. 04/2013/QD-UBND on
investment support for investment projects in Phu Tho province, issued on 12 January 2012.
5. The People's Committee of Phu Tho Province (2015), Plan No. 4191/KH-UBND
on the implementation of Directive No. 13/CT-TTg dated 10/06/2015 of the Prime Minister
on strengthening the responsibility of the heads of state administrative agencies at all
levels in the reform of administrative procedures, issued on October 9, 2015.
6. The People's Committee of Phu Tho Province (2016), Planning No. 1118 / KH-
UBND on anti-corruption work and the contents of Directive No. 16/CT-UBND dated
September 16, on strengthening the discipline and discipline in state administrative
agencies, issued on March 29, 2016.
7. Phu Tho Statistical Office (2017), No. 585/BC-CTK, Report on the socio-
economic situation in 2017 in Phu Tho province.
8. VCCI Vietnam (2013, 2014, 2015, 2016), Provincial Competitiveness Index PCI
2013, 2014, 2015, 2016 Profile of 63 provinces and cities of Vietnam, Hanoi.
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