Determinants of provincial competitiveness in Vietnam

By Pham Thi Van (VNP 25)

Supervisor: Dr. Pham Khanh Nam

 

Abstract:

The thesis was based on the theoretical basis and based on previous studies to determine the factors affecting the provincial competitiveness of localities in Vietnam. Through that, the thesis focuses on important factors such as: The Provincial Competitiveness Index lags by one period; the Index of Industrial Production; the index of Information & Communication Technologies; the local expenditure; the infrastructure investment; Gross regional product (GRDP).... The study was carried out based on a set of analytical data on 63 provinces/cities in Vietnam, over a period of 4 years from 2016 to 2019: with a total of 252 observed samples.
By quantitative research method, using Stata software, with panel data, the thesis has used a panel data regression model with basic estimation research methods such as: Fixed factor impact model. Fixed Effects Model (FEM), Random Effects Model (REM), Hausman test...
The results of the regression analysis show that there are 6 variables that are statistically significant and have an impact on the competitiveness of provinces/cities of localities: PCI 1-year lag index, the percentage of new businesses established, Percentage of employees aged 15 years and over, Local expenditure and Infrastructure investment and gross domestic product (GRDP). The remaining variables are not statistically significant.
From the above results, the author has recommendations to localities for economic development to improve competitiveness, focusing on the following factors: Investing in infrastructure development to suit reality businesses, avoid affecting trade and business activities of local enterprises; Developing information technology systems suitable to the times; Creating conditions for a healthy business environment, stimulating the establishment of new businesses and creating investment opportunities; At the same time, focus on training and developing human resources for higher quality.

 


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