1 INTRODUCTION - This thesis evaluates the impact of factors on the development of SI support and proposes some solutions to improve the current industrialization situation of Vietnam Subjects and scope of research The research object of the thesis is the supporting industry and the impact of factors on the development of the supporting industry The thesis studies the following issues: - Study the factors affecting the development of the supporting industry - the real situation in Bac Ninh province - The object of collecting information is the owner of enterprises operating in supporting industry Structure of the thesis In addition to the introduction, conclusion, references and appendices, the content of the thesis is divided into chapters: Chapter 1: Basic theoretical issues about the supporting industry development Chapter 2: Indicator system for statistics of industrial development support and real situation in Bac Ninh’s supporting industry Chapter 3: Research methods and results of research on the impact of factors on the development of the supporting industries Chapter 4: Recommendations The urgency of the thesis In the process of the international economic integration, the development of supporting industry has created a wonderful and meaningful time but there are also many big challenges Vietnam can adopt a great number of attractions of foreign investment in the supporting industry, receive technology transfer of the world, create good conditions to accelerate the process of industrialization and modernization of the country, promote maturity businesses The biggest difficulty is information on the current status of the supporting industry in Vietnam, production capacity, ability to meet the needs of supporting products, exchange information Currently, the General Department of Statistics has not yet developed the concepts, the basis of dividing products of the supporting Industry, the indicator system, the statistical data on the field of supporting industry development in order to have an overall assessment of position and role as well as ability of the industry Moreocer, for Vietnam Support Industrial Development to develop sustainably, it is necessary to determine the combination of influencing factors in order to have a suitable solution system for each factor In fact, there have been many studies assessing the situation and solutions to develop supporting industries, but the scientific researches on the statistical sense of supporting industry are not yet available This is the main reseasons why the author decides to choose the thesis: "Statistical research on the impact of factors on the development of supporting industries – the real situation in Bac Ninh province" for their research direction It is a theoretical, practical, high-profile and urgent issue to find solutions for the development of the supporting industry today The dissertation goes into the real situation in Bac Ninh province because there have been many industrial developments recently, especially attracting a great amount of water investment capital The thesis follows the direction of studying a typical case to find out the lessons for the development of supporting industry of the whole country In addition, thanks to the difficulties in supporting industry data of the whole country, the General Statistics Office has not been published yet, so the survey and research in the whole country have many difficulties and not guarantee high reliability of information Therefore, the thesis limits the scope of research in Bac Ninh province Research objectives of the thesis - This thesis focuses on systematizing a number of basic theoretical issues about supporting industry, classifying support industry groups, building a system of criteria for evaluating the development and identifying factors affecting the development of supporting industries 3 CHAPTER BASIC THEORETICAL ISSUES ABOUT THE SUPPORTING INDUSTRIAL DEVELOPMENT Tuat, 2007,2008); (Le The Gioi, 2014), (Hoang Van Chau, 2010) On the basis of introducing concepts, nature, characteristics, theoretical system and policy system on the supporting industry, the authors propose solutions to macroeconomic policies and markets to promote the development of the supporting industries in Vietnam today * Experimental studies which use the quantitative methods This research uses to descriptive statistical methods to assess the situations and give some theoretical basis for the factors which affect the development of supporting industries of the authors: (Prof Nguyen Nguyen Tuan, 2014); (Tran Dinh Thien, 2012); (Nguyen Thi Hue, 2013); (Ha Thi Lan Huong, 2014); (Nguyen Thi Dung Hue, 2013); (Do Minh Thuy, 2013); (Truong Thi Chi Binh, 2010) brought many reasons that supporting industry has not developed such as: "The concept of the supporting industry is too general, the government has not paid attention, has not attracted foreign investment, ignoring rules determining the localization rate and capacity of Vietnamese enterprises is still weak ” Since then, the author has introduced a solution system to the development of supporting industries in Vietnam Moereover, a model is uses to analyze the influence of factors: (Luu Tien Dung et al, 2014); (Nham Phong Tuan & Nguyen Thi Tuyet, 2012); (Pham Van Hung, 2014) 1.2 The basic theoretical issues about supporting industry 1.2.1 The viewpoints on supporting industries: With the points of view of the Industry support, the development history; and the Industry support from other countries With the real situation in Vietnam, the scope of research of the supporting industry is focused on a narrow scope to consentrate resources on developing high quality products directly which provided to enterprises of assembly and processing This thesis also states that: Supporting industry is a group of industrial activities providing intermediate inputs including components, spare parts and tools to produce these spare parts for the assembly industry and processing industry mainly based on that basis 1.2.2 The characteristics of supporting industry Supporting industry has its own characteristics from the structures of development characteristics of the industry: multi-level calculation; calculation of linkage systems according to production processes, by region and depending on the main industry; diverse in technology and technology level 1.2.3 The classification of supporting industry In order to classify the supporting industry based on the industry manufacturing technology, the author relied on the economic subdivision in the national account system (GSO, 2007) is a sector consisting of a group of production units with the relation to the same type of activity or similar activities to classify the supporting industry products 1.1 The overview of research * Experimental studies which use the qualitative methods Some researches are basically based on theoretical basis and expert methods to assess the achievements and limitations in the development of the supporting industries of the countries that have been leading and given useful lessons and solutions to many countries going after the development of supporting industry Research by Abell Peter, 1990; Anderdon, 1999 provides some development experiences for developing countries; Kenichi Ohno & Nguyen Van Thuong, 2011 analyzed and evaluated the achievements and limitations in the development of supporting industries of the two countries Malaysia and Thailand, thereby drawing meaningful lessons for countries and families going after by Nguyen Ke Tuan, 2004 mentioned generally: Concepts, roles and factors affecting the development of SI support, proposed many effective policies and developments for the supporting industry, especially the viewpoint to choose the development policies for Vietnam; Kenichi Ohno, 2007; Kenichi Ohno and Nguyen Van Thuong, 2005) showed that the competitiveness of the industry bases on factors Except from a number of researches and reports in the world which relate to the development of small and medium enterprises (SMEs) of other supporting industries such as: Lipovatz Daphne et al, 2000 studying policies and mechanisms Industrial push in Thailand - Industrialization policy with a focus on downstream plastic parts industry and mold industry; Rantana E, 1999 studied the roles of small and medium industrialization in Japan and Thailand; Rendon R, 2000 with an overview of industrial subcontracting and partnership exchange; Subrahmanya & M.H Bala, 2006 with research on small and medium manufacturing enterprises in Japan: Subcontracting, structure and operation Suzuky.S, 2006 studying Korea, promoting parts industry and raw materials; These reseaches focus on the nation's competitive advantages such as value chains and industrial clusters: Michael Porter, 1990; Jones R.W & Kierzkowski.H, 2005; Briger, 1984; Dunning John, 1977; Eiamkanitchat, 1999; Elaine Mosakowski et al, 1997; Ernst Dieter, 2000 said that the existence of supporting industries determines the ability of national competition and creates advantages for industries to use output in different ways In adddition, there are some domestic studies that provide theoretical basis, assess the situations, set out some solutions, improve policies and mechanisms to develop the supporting industries (Foreign Trade University, 2010) ; (Phan Dang Validating and assessing the reliability of the official scale, adjusted research model EFA factor analysis; Cronbach’s Alpha coefficient Official scale Cronbach’s Alpha coefficient analysis Draft scale Proposing preliminary research model Discuss research results and solutions Inspection of research model and research hypotheses Step Official quantitative research Step Preliminary quantitative research Step Qualitative research Step Develop a system of indicators for development of supporting industry statistics Step Research overview and theoretical basis of development of supporting industry Step Preliminary quantitative research With a classification approach based on the national economic classification system and product sub-sector combined with the Decision No 111/2015 / ND-CP of the Government on "supporting industry development", it can be classified into industry or technology in which the component manufacturing is one of the important categories Therefore, a number of supporting industries are divided into six main areas as follows: (1) Field of supporting Industry in textile industry; (2) Leather and footwear; (3) Electronics - informatics; (4) Support for production of automobiles and motorcycles; (5) Manufacturing mechanics; (6) High-tech industry support 1.3 The concept, the role of the supporting industry development The concept of industrialization development: "is an increase in the number of supporting industrial enterprises accompanied by the improvement of enterprises' competitiveness" The concept of industrialization development: "is an increase in the number of supporting industrial enterprises accompanied by improving the competitiveness of enterprises" The improvement of enterprise capacity is more clearly reflected in the competitiveness of enterprises in the market Accessed from the value chain by M.Porter, 1990: "Competitiveness of enterprises is the ability to stand firm in the competitive market, expand market share and increase profits through a number of indicators such as productivity, quality, technology, differences in goods and services provided, added value, production costs; is the ability of the business to perform better than its competitors in achieving the most important goal” Competitiveness approaching resources theory by J Barney, 1991 emphasizes the role of intrinsic factor - the resources of a private enterprise Characteristics of resources are rare, hard to imitate and irreplaceable Approach from competence theory by Amit R & et al, 1993, Peteraf, 1993; Barney, 1997; Beckman S.L et al., 2007, JJorg Freiling, 2004; JJorg Freiling et al., 2008) provide factors including: Property, ability, capacity There are total six steps during the research process of this thesis Current situation of industrialization of Bac Ninh CHAPTER THE SYSTEM OF STANDARD INDICATORS OF THE SUPPORTING INDUSTRY DEVELOPMENT AND REALITY OF BAC NINH’S SUPPORT INDUSTRY Table 2.2: Number of supporting enterprises by sector group and type of enterprise in Bac Ninh province in the period of 2010-2016 Unit: Enterprise Year 2010 2011 2012 2013 2014 2015 2016 Total 98 154 162 181 201 258 279 According to type of group Textile supporting industry 11 21 19 20 28 30 29 Shoes supporting industry 4 4 3 Electronics - Informatics 14 24 33 49 75 107 125 Support for manufacturing cars and 10 11 18 26 19 26 30 motorbikes Mechanical engineering 58 92 89 80 75 88 90 High technology 3 According to type of business Domestic company 72 106 109 98 95 82 79 Venture business 1 10 Enterprises with 100% foreign capital 25 47 51 79 104 173 198 Source: Bac Ninh Statistical Office The number of supporting industry enterprises in Bac Ninh in the period of 2010-2016 tends to increase (average of 20.27% / year) On average, each year, the province has 190 enterprises operating in this field Table 2.3: The structure of number of supporting enterprises by industry group in Bac Ninh province in the period of 2010-2016 Unit: % Year 2010 2011 2012 2013 2014 2015 2016 Total 100 100 100 100 100 100 100 According to type of group Textile supporting industry 11,47 13,54 11,41 11,09 13,96 11,55 10,39 Shoes supporting industry 3,38 2,77 1,78 2,16 1,15 1,61 1,07 Electronics - Informatics 14,53 15,62 20,49 26,41 37,24 41,41 44,80 Support for manufacturing cars 10,75 10,14 7,32 10,91 14,52 9,61 10,19 and motorbikes Mechanical engineering 59,46 59,45 54,79 44,16 37,04 34,08 32,25 High technology 1,02 1,30 0,62 1,66 1,00 1,16 0,71 According to type of group Enterprises with 100% foreign capital 25,51 30,51 31,48 43,65 51,74 67,05 70,96 Venture business 1,02 0,65 1,23 2,20 0,99 1,16 0,71 Domestic companies 73,47 68,84 67,29 54,15 47,27 31,79 28,33 Source: Bac Ninh Statistical Office 2.1 The statistical indicators system of the supporting industry development - Speed of increasing (decreasing) the number of enterprises in the supporting industry - Labor scale - Production value - Extra value - Import and export value - Average income of employees - Labor productivity - Proportion of added value in production value - Export rate compared to production value - Performance using total capital 2.2 The real situation and development trend of Bac Ninh’s supporting industry in the period of 2010-2016 Bac Ninh is an attractive destination to many domestic and foreign investors Industry of the province achieved rapid growth, the trend of restructuring towards positive among sectors The growth rate of total products in the at the constant prices in 2010, but in 2018 compared to 2017 was 10.6% higher than the whole country (7.08%) Total products in the province per capita reached 6498 $ ranked 2nd in 63 provinces and cities (the whole country averaged 2587 $) The economic structure shifted towards a positive trend, the proportion of industry - construction sector accounted for 76.6% of which, industry accounted for 72.2% Industrial production affirmed the solidity as the driving force of industrial scale in GRDP reaching VND 120,002 billion up 11.6%, industrial production value reached VND 1,136,000 billion, of which foreign-invested economic sector reached VND 1,055,600 billion The number of foreign-invested enterprises operating in the province is mainly from South Korea, Japan and China Bac Ninh province has identified the development of the supporting industry recently as the main direction, because it is a high value-added industry, the product meets the needs of domestic and foreign assembling enterprises In the period of 2010-2016, the number of enterprises operating in this sector tends to increase: 10 Through table 2.3 shows that the number of the supporting enterprises in the Bac Ninh province is mainly in the two groups of electronics - informatics and mechanical engineering Particularly, domestic enterprises in the field of supporting industry tend to decrease and FDI enterprises increase Table 2.4: The added value at a constant prices in 2010 of Bac Ninh supporting industry period 2010-2016 Table 2.6: The efficiency of capital use of the supporting industry in Bac Ninh province period 2010-2016 Targets Unit 2010 2011 2012 2013 2014 2015 2016 Extra value Million dong 1.891.888 2.591.749 3.589.788 4.993.635 7.189.939 9.936.445 11.830.945 Increase in quantity Million dong 699.861 998.039 1.403.847 2.196.304 2.746.506 1.894.500 (reduced) continuous Speed % 36,99 38,51 39,11 43,98 38,20 19,06 increases Source: Bac Ninh Statistical Office - Annual enterprise survey 2010-2016 The added value of supporting industry sector in Bac Ninh province in the period of 2010-2016 increased by an average of 35% per year (equivalent to VND 1,656.509 million / year) Table 2.5: The continuous growth rate of added value and production value of supporting industry in Bac Ninh province in the period of 2010-2016 Unit: % Năm Tốc độ tăng VA Tốc độ tăng GO Tỷ trọng VA so GO 17,54 36,99 38,79 17,31 38,51 32,33 19,6 39,11 29,46 22,45 43,98 34,07 25,34 38,20 28,43 26,82 19,06 22,32 25,78 Source: Bac Ninh Statistical Office - Annual enterprise survey 2010-2016 In 2011, the growth rate of the added value index was lower than the growth rate of the production value index; the proportion of added value in production value is only 17.31% By 2015, the proportion of added value in production value reached 26.82% Although the growth rate of production value in 2016 is higher than the value-added growth rate and the value-added proportion in the value of production decreased slightly, but it is in consideration the period of 2010-2016, the industrialization sector of the province is developing fast and effectively Increasing the investment in the supporting industry, especially key sectors, the efficiency of capital utilization over the years has been improved and improved Year Capital size VA capacibility using capital Unit 2010 2011 2012 2013 2014 2015 2016 Billions dong 5.243.107 7.231.220 9.933.610 12.582.040 17.327.285 22.923.464 23.796.543 Billions 1.891.888 2.591.749 3.589.788 4.993.635 7.189.939 9.936.445 11.830.945 dong dong 0,3608 0,3541 0,3613 0,3968 0,4199 0,4334 0,4971 Source: Bac Ninh Statistical Office - Annual enterprise survey 2010-2016 The effeciency of capital use reflects VND of investment capital can generate how many results as many as possible This higher indicator shows that the industry has used very good capital, maximizing the capacity of machines to produce Industry and trade industry needs capital to produce, especially investment capital for machinery and application of new technologies to participate in the supply chain The babor productivity of the supporting industry in Bac Ninh province tends to increase and is always higher than the average labor productivity of the whole country On average, each employee in the supporting industry in the province in 2010 generated 149.45 million VND in value added the whole country reached 122.39 million VND / person, by 2016 it was 227.14 million VND person (nationwide 122 , 25 million VND / person) 2010 2011 2012 2013 2014 2015 2016 Graph 2.4: The labor productivity in supporting industry in Bac Ninh and the whole country 2010-2015 period Source: Bac Ninh Statistical Office - Annual enterprise survey 2010-2016 With the general industrial development of the province, the key supporting industry is electronics - informatics, manufacturing and manufacturing industries These are industries with outstanding labor productivity and added value created in products are always improved and improved, contributing to improving workers' income, improving people's living standards and promoting economic development 11 12 Thanks to these above mentioned achievements, Bac Ninh province has become one of the leading provinces in promoting SI Therefore, the thesis selects the province to be the study area In order to determine the system of factors affecting Bac Ninh's supporting industry, in addition to the theoretical basis, the thesis combines a qualitative research to determine the influencing factors to build a suitable model for specific characteristics of Bac Ninh province for the following sections CHAPTER THE RESEARCH METHOD AND RESEARCH RESULTS THE IMPACTS OF THE FACTORS TO THE DEVELOPMENT OF BACNINH’S SUPPORTING INDUSTRY 3.1 The researching methods 3.1.1 Qualitative research of factors affecting the development of supporting industries This thesis selects the form of qualitative data collection which based on the direct interview plan of each person in order to deeply understand the views on the researched problem of the respondents, observe the reaction of the interviewees carefully, suggest many relevant ideas easily and especially the collection information will be more meaningful From the above theoretical basis, the author gives the research model and hypotheses as follows: Capacity market Policy of tax H11 (+) H16(+) H12(+) High quality human resources policy environment H13(+) H14 (+) The development of supporting industry Information and awareness H15(+) Responsibility environmental protection Figure 3.1 The official research model 3.1.2 The quantitative research on the impact of factors on the development of supporting industries The steps used to perform the quantitative research - Develop a scale: The process of general research and expert interviews, the thesis selects the scale with indicators or items that are most suitable for each variable and in accordance with the context of the study - Evaluate scale: Based on ensuring validity and ensuring reliability Ensure the Cronbach Alpha index 0.7 so that the scale is stable and reliable over the measurement 13 14 - Official research: Completing the questionnaire to collect official information Sampling and collecting data from the research subjects - Data analysis: Using SPSS software to perform SEM analysis and build the proposed regression function model 3.2 The research results from Bac Ninh province Changing the high quality human resource skills with Cronbach Alpha = 0,936 and no observed variables have the total variable correlation