PERCEIVED SERVICE PERFORMANCE AND PROSPECTS
OF VNPT TELECOMMUNICATIONS
IN THAI NGUYEN, VIETNAM

___________________________

A DISSERTATION
Presented to the Faculty of the Graduate School
Southern Luzon State University, Lucban, Quezon, Philippines
in Collaboration with
Thai Nguyen University, Socialist Republic of Vietnam

___________________________

In Partial Fulfillment
of the Requirements for the Degree
Doctor of Business Administration

___________________________

By
NGUYEN PHUONG THAO (CANDY)
December 2013
i


APPROVAL SHEET

The Dissertation of

NGUYEN PHUONG THAO

entitled
PERCEIVED SERVICE PERFORMANCE AND PROSPECTS OF VNPT
TELECOMMUNICATIONS IN THAI NGUYEN, VIETNAM
Submitted in Partial Fulfilment of the Requirements for the Degree
DOCTOR OF BUSINESS ADMINISTRATION
A program offered by Southern Luzon State University,
Republic of the Philippines in collaboration with
Thai Nguyen University, Socialist Republic of Vietnam
has been approved by Oral Examination Committee

JOANNA PAULA A. ELLAGA, DBA
Expert

EDUARDO T. BAGTANG, DBM
Expert

WALBERTO A. MACARAAN, EdD
Expert

EDWIN P. BERNAL, DBA
External Panel

CECILIA N. GASCON, PhD
Chairman
Endorsed by:

Recommended by:

ALICE T. VALERIO, PhD
Adviser


APOLONIA A. ESPINOSA, PhD
Dean

Accepted in Partial Fulfilment of the Requirements for the Degree
Doctor of Business Administration

_____________________
Date

WALBERTO A. MACARAAN, EdD
Vice President for Academic Affairs
ii


CERTIFICATE OF ORIGINALITY

iii


ACKNOWLEDGMENT

I wish to extend my most sincere gratitude to the following people who
made this piece of work a reality.
Dr. Cecilia N. Gascon, President of Southern Luzon State University,
Republic of the Philippines, who made possible the linkage with Thai Nguyen
University and the offering of Doctor of Business Administration, through the
ITC-TUAF;
Dr. Dang Kim Vui, the President of Thai Nguyen University, who made
the linkage with Southern Luzon State University, Republic of the Philippines

and the offering of Doctor of Business Administration, through the ITC-TUAF;
Dr. Alice T. Valerio, for her support and supervision throughout my
graduate study program. Her kindness and daily instructions in the last three
years are greatly appreciated and this dissertation is as much her work as
mine;
Prof. Nordelina Ilano, Director, Office for International Affairs of URS
for her support to the DBA1 students;
Dr. Tran Thanh Van, the Dean of the Graduate School; Dr. Dang Xuan
Binh, the Director of International Training Center; and Dr. Nguyen Thanh Hai,
the Vice Director of International Training Center of Thai Nguyen University,
for their assistance and encouragement to pursue this study;
All the SLSU and TNU Professors, for their support and guidance
extended throughout the graduate studies in Thai Nguyen University,
Vietnam;
iv


My ever dearest friends for their kindness and remarkable support; and
My family, for their support, encouragement for being the sources of
greatest inspiration, which made my career a success.

NGUYEN PHUONG THAO

v


DEDICATION

This piece of work is dedicated
To My Family


vi


TABLE OF CONTENTS
PAGE
TITLE PAGE ………………………………………………………………..

i

APPROVAL SHEET ……………………………………………………….

ii

CERTIFICATE OF ORIGINALITY ………………………………………..

iii

ACKNOWLEDGEMENT …………………………………………………..

iv

DEDICATION ………………………………………………………………

vi

TABLE OF CONTENTS …………………………………………………..

vii


LIST OF TABLES ………………………………………………………….

ix

LIST OF FIGURES ………………………………………………………...

xi

LIST OF APPENDICES …………………………………………………...

xii

ABSTRACT …………………………………………………………………

xiii

CHAPTER
I

II

III

INTRODUCTION
Introduction ………………………………………………….

1

Background of the Study …………………………………..


5

Statement of the Problem ………………………………….

6

Objectives of the Study …………………………………….

7

Hypothesis of the Study ……………………………………

9

Significance of the Study …………………………………..

10

Scope and Limitation of the Study ………………………..

10

Definition of Terms ………………………………………….

10

REVIEW OF LITERATURE
Related Literature ….....…………………….………………

15


Theoretical Framework …………………………………….

28

Conceptual Framework ………………………………….…

29

METHODOLOGY
Locale of the Study …………………………………………

31

Populations, Sample & Sampling Technique ……………

31

Research Instrument ……………………………………….

32

vii


IV

V

Data Gathering Procedure ……………………….…….….


33

Statistical Treatment ………………………........…….……

34

RESULTS AND DISCUSSIONS ………………………….

35

Profile of the Respondents ……………..……….……..….

35

Perceived Services Performance of VNPT Thai Nguyen.

39

Perceived Prospects of the VNPT Thai Nguyen ………..

54

SUMMARY, CONCLUSION AND RECOMMENDATION
Summary of Findings ………………………………………

72

Conclusions …………………………………………………


78

Recommendations …………………………………………

79

BIBLIOGRAPHY …………………………………………………………..

89

APPENDICES ……………………………………………………………...

91

CURRICULUM VITAE …………………………………………………….

103

viii


LIST OF TABLES
TABLE

PAGE

1

Likert Scale Showing Adjectival and Description……………


33

2

Personal Profile of Respondents …………………………….

36

3

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Status of the Company in Terms of
Products and Services ………………………………………...

40

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Status of the Company in Terms of
Place …………………………………………………………….

43

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two groups of
Respondents on the Status of the Company in terms of the
Price ……………………………………………………………..

45


Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Company Status in Terms of
Promotion ……………………………………………………….

46

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Company Status in terms of People ...

48

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Company in Terms of Position ……....

52

Composite Table on the Status of the Company as
Evaluated by the Two Groups of Respondents in Terms of
the Six Areas …………………………………………………...

53

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Prospect of the Company in Terms of
Management Capacity ………………………………………...


55

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Prospect of the Company in Terms of
Human Resource ……………………………………………...

57

4

5

6

7

8

9

10

11

ix


TABLE

12

13

14

15

16

17

PAGE
Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Prospect of the Company in Terms of
Service Attitude ………………………………………………...

59

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Prospect of the Company in Terms of
Marketing ……………………………………………………….

61

Computed Mean, Verbal Interpretation and Rank
Distribution on the Perception of the Two Groups of
Respondents on the Prospect of the Company in terms of

Material Facilities ………………………………………………

65

Composite Table of the Computed Mean, Verbal
Interpretation and Rank Distribution on the Prospect of the
Company as Evaluated by the Two Groups of
Respondents in terms of the Five Areas ……………………

67

Mean, Standard Deviation, and Correlated T-Test on the
Assessment of the Two Groups of Respondents as to the
services performance of the Company in Terms of Area
with respect to the Different Criteria …………………………

69

Mean, Standard Deviation, and Correlated T-Test on the
assessment of the Two Groups of Respondents as to the
Prospect of the Company in Terms of Areas with respect
to the Different Criteria…………………………………………

70

x


LIST OF FIGURES
FIGURE

1

PAGE
Conceptual Framework Showing the Assessment Service
Performance and Prospect VNPT Telecommunications in
Thai Nguyen Province …………………………………………..

30

2

The Profile of Respondents in Terms of Gender …………….

37

3

The Profile of Respondents in Terms of Age …………………

37

4

The Profile of Respondents in Terms of Civil Status ………..

38

5

The Profile of Respondents in Terms of Educational

Attainment ………………………………………………………..

38

xi


LIST OF APPENDICES
APPENDIX

PAGE

1

Letter Request to the Respondents ………………………..

92

2

Questionnaire Checklist ……………………………………..

93

3

Organizational Structure of the Management VNPT
Telecommunication Thai Nguyen ………………………….

101


`

xii


ABSTRACT
Title of Research

: PERCEIVED SERVICE PERFORMANCE AND
PROSPECTS OF VNPT TELECOMMUNICATIONS
IN THAI NGUYEN, VIETNAM

Researcher

: NGUYEN PHUONG THAO (CANDY)

Degree Conferred

: DOCTOR OF BUSINESS ADMINISTRATION

Name and Address
of Institution

: Southern Luzon State University Lucban, Quezon,
Philippines and Thai Nguyen University, Socialist
Republic of Vietnam

Adviser


: Dr. Alice T. Valerio

Year Written
: 2013 – 2014
______________________________________________________________

In Vietnam's intensifying telecommunication service market, satisfying
customers is only the baseline and may not be sufficient for survival for mobile
phone service providers. Management should focus on gaining customer
loyalty by enhancing customer perceptions of service quality and increasing
as perceived by the consumer value. To do that, it is necessary for them to
figure out the relationships and impacts of service quality, customer value,
customer satisfaction, corporate image and customer loyalty. This research
focused on evaluating the service performance of telecommunications
services by employees and customers in VNPT in terms of services, place,
price, promotion, people and position. This research also sought to assess the
prospect of VNPT Thai Nguyen in terms of management capacity, human
resource, service attitude, marketing and material facilities. Based on the
assessments, proposing recommendations to improve the quality of activities
and prospect of resources of VNPT Thai Nguyen.

xiii


All ratings for VNPT in Thai Nguyen are collected opinions of
Telecommunications Director of Thai Nguyen, the employees, Deputy Sales
Rooms, as well as transaction services for customers, and especially survey
of customers using the services of VNPT.
The service performance of VNPT in Thai Nguyen province is reflected
through the perceived products and services, places, price, promotion, people

and position. For the overall mean for both employees and customers
respondents show similarity on their perception on the position status of the
company in terms of the six components with the overall obtained mean of
3.81 and 3.66 both rated as very good. For the overall mean for both manager
and employee respondents, there is similarity on their perception on the
prospects in terms of the five areas as shown in the obtained mean of 4.10
and 4.16, both rated as very good.
It is recommended that VNPT in Thai Nguyen province should focus on
opening course training for staff security, and wireless computer maintenance
skills to motivate work, team work skills and communication skills. There is a
need to continue to promote the exploitation of Internet and mobile phones, in
addition to developing network services It is, likewise, recommended to hold
training on customer relationship management skills and to purchase software
for customer relationship management for marketing. Moreover, there is a
need to maintain giving gifts to customers to congratulate customers on their
birthdays or major holidays. This will help customers feel special and be
concerned about how the customers are treated.

xiv


Chapter I
INTRODUCTION

The most important economic resource is not land, capital, or
technology, but human. Vietnam steps up ship in the global economy, to
integrate successfully, "the comparison with the national strength in Asia". The
prerequisite is the ability to work by employees. Requirements for workers in
the economic integration must not only have expertise which must be capable
of distribution in combination with other work. While people are not always

close, they require communication between people with children who need to
quickly correct (Nguyen Sang, 2010).
Vietnam's mobile phone market is considered one of the fastest
growing markets in the world with mobile phone subscribers currently
estimated at 96.5 million, increasing 80 percent year-on-year (General
Statistics Office, 2009). Vietnam Telecom Services Company is an economic
organization - a member unit under Vietnam Post and Telecommunications
Corporation operating in compliance with Organizational and Operational
regulations of Vietnam Post and Telecommunications Corporation, which was
approved by Decision No. 51/CP on August 1, 1995 by the Government. The
Company specializes in trading and services in fields of mobile information,
SMS sending and card-based phones nationwide together with other
members in the chain of post and telecommunications technologies with very
close and united relation on network organization, economic and financial
benefits, development of post and telecommunications services to carry out
objectives and plans assigned to the Corporation by the State (VNPT, 2012).


2

Vietnam Telecom Services Company was established under Decision No.
331/QĐ-TCCB dated June 14, 1997 by the General Minister of General Post
Office. The main missions of the company are to manage and exploit three
services: Nationwide mobile network (VNPT), Vietnam Messaging Network
(Paging), and Card-based phone network (Card Phone). Paging network was
stopped operating in September 2004 by VNPT because it was no longer
suitable for the market after 10 years in operation.
In 2006, an important event that marked a great turning point of
Vietnam's economy in general, and of the telecommunication sector, in
particular was that: Vietnam officially became the 150th member of the World

Trade Organization (WTO). Also, in order to enhance competitive capacity in
the context of international integration, the Telecommunication Services
Company made an important behavior: that was to change its abbreviation
name from GPC (G=GSM; P=Paging; C=Card Phone) into VNPT. This
change showed business diversion of the Company in the new stage. The
Company also announced its new brand identity system that was of
professional and modern manner. It was the determination of the Company to
make VNPT the first-ranked mobile network in Vietnam with orientation
towards international cooperation and integration.
Under definition of the World Intellectual Property Organization, brand
is a special sign (tangible and intangible) to recognize a product or service
that is manufactured or provided by an individual or an organization. The main
criteria in creating ideas on design of Company's new logo model are to
maintain the former basic brand name of VNPT services - decisive services but it must create a breakthrough in image. The new brand image must be


3

more simple, modern but it still needs to be purely Vietnamese, easy to apply
and convenient in displaying on different background colors and different
materials. Specially, the new logo must show the meaning in terms of
connection - a specific characteristic in business of VNPT Company. VNPT is
the pioneer in expanding mobile information in remote regions in Vietnam. It is
doing business to provide good services in order to promote local
socioeconomic developments (Vietbao, 2012).
In the wake of these changing dynamics, the Vietnamese mobile phone
operators face a number of significant challenges. First, the majority of
Vietnam mobile subscribers are prepaid who are apt to change the provider
continuously, hence, retaining existing customers in a predominantly prepaid
and high chum market has become more difficult and costly. Similarly, new

customer acquisition is becoming more elusive than ever as potential
customers have more options to choose from and mobile phone operators
offer attractive deals to lure prospects. Third, as mobile phone operators have
had to incur additional expense in keeping existing customers and acquiring
new ones, their average revenue per user has declined, leading to
deterioration of their financial performance. Due to these challenges, service
quality improvement, enhancing customer value and corporate image in order
to satisfy customer, then customer loyalty, are the key determinants of firm's
success or at least survival.
Telecommunication has been formed to help people move recently,
economic, political, social stability and more smoothly. Understanding the
importance of information technology brings to human as well as the ways to
develop more industry information technology. If prompted efforts to build a


4

legal framework, "lodestar" guiding the telecommunications industry can not
mention the achievements on the basis of development and infrastructure in
10 years that Vietnam has achieved from efforts of Vietnamese enterprises
(VNPT, 2012).
Economic environment in Vietnam increasingly becomes more
dynamic.

VNPT

of

telecommunications.


Thai

Nguyen

province

To

develop

fast,

sustains

strong,

the

and

needs

of

sustainable

telecommunications, VNPT must continually analyze and assess the results of
their operations and market to see the status service performance of the
project strategy and to draw specific measures appropriate to develop its
network in the province of Thai Nguyen province.

Vietnam has been developing market economy, with economic policy
models and strategies to integrate into the international economy.
Development of the market economy has been and will put the country's
economy, in general and businesses, in particular face challenges and
difficulties ahead of the competition increasingly fierce international to grab
customers and expansion of the domestic market as well as at the world. In
market economies, firms operating in the country have to manage the
business operations an effective way to be able to stand firm in the market
and growing. Enterprises wishing to do so should be effective in their
business activities, while new businesses exist in the market and growing.
The business cannot effectively create momentum for economic development,
but also contributes towards maintaining the country's economy, especially
state-owned enterprises. They should always keep a leading role in economic
integration, collaboration, more efficient business.


5

Group Vietnam Post and Telecommunications Group (VNPT) is the
state-owned enterprises, operating in the information technology field, play an
important role in the national economy. VNPT provides many services to the
market to meet consumer needs. Creating service was difficult, but to bring
them into the business was even more difficult, as the market increasingly more
competitors appear. To compete in a highly competitive market, such business
activities of enterprises are strictly monitored. For how effective business and still
meet the needs of consumers, with stiff competition market today, many other
telecom operators are going to dominate the market in the province. So,
obviously awareness of the activities of providing services is an important
requirement of VNPT Thai Nguyen. This has a great influence on building
strategy development – a strategy to improve service quality in order to meet

higher demands of customers. At the same time, with the perception of quality
resources, infrastructure, management capacity, Thai Nguyen's internal VNPT is
also a necessary requirement in order to help VNPT Thai Nguyen build
strategies for human development, for infrastructure to set the stage for longterm growth and sustainability of VNPT.

Background of the Study
Telecommunications Thai Nguyen is a member of a large group
telecommunications

companies

in

Vietnam.

It

is

a

member

of

the

telecommunications corporation also known as VNPT. Its efforts are geared
towards effective applications of technology and advanced telecommunications
services to provide information to mobile customers anywhere and to contribute

to promoting economic society of Vietnam. It is committed to provide information
services through mobile, fixed, wireless devices, phone-based internet and high


6

speed internet services, service data transmission, wireless internet connectivity
and construction of networks for agencies, organizations, businesses and
individuals (VNPT, 2011) With its purpose to bring customers an improvement of
material life and to sustain the work spirit of its employees and to benefit
partners, VNPT is at the core of helping the interests of the Vietnam community
and possibly that of Southeast Asia and the world in general through the
application of technology and advanced telecommunications, thereby bringing
economic development in the society.
Specifically, the VNPT aims to maximize the operational efficiency and
develop economic groups at the technology, modern management and
professional and high business sectors, including telecommunications and
information technology in the industry and professional business. It is tightly
linked between production and business with science, technology, research and
training not to mention the objective to preserve business interests; and to
develop investors in the telecommunications business. With stiff competition
market today, many other telecom operators are going to dominate the market in
the province.
The revenue of VNPT Thai Nguyen decreased about 10% from the
previous years. Therefore, it is necessary to be aware about market position.
This study will help VNPT see clearly their current services and resources. The
results will help VNPT Thai Nguyen build its strategies for future development.

Statement of the Problem
In Vietnam's intensifying telecommunication service market today,

satisfying customers is only the baseline and may not be sufficient for survival for
mobile phone service providers. Management should focus on gaining customer


7

loyalty by enhancing customer perceptions of service quality and increasing
perceived consumers’ value. To do that, it is necessary for them to figure out the
relationships and impacts of service quality, customer value, customer
satisfaction, corporate image, and customer loyalty.
With stiff market competition today, many other telecom operators are
going to dominate the market in the province. Therefore, obviously becoming
aware of the activities of providing services is an important requirement of VNPT
Thai Nguyen. This has a great influence on strategy development, strategy to
improve service quality in order to meet higher demands of customers. So that,
the awareness about quality resources, infrastructure, management capacity is
very necessary requirement in order to help VNPT Thai Nguyen develop
sustainably in future.
There has been no study assessing the performance and prospects of the
Thai Nguyen VNPT before. Therefore, this study will answer the following
questions:
1. What is the profile of the respondents in terms of:
1.1. Age
1.2. Gender
1.3. Civil status
1.4. Educational attainment
2. What are the perceptions of respondents on the service performance of the
VNPT Telecommunication Thai Nguyen in terms of:
2.1. Product and service
2.2. Place

2.3. Price


8

2.4. Promotion
2.5. People
2.6. Position
3. What are the perceptions of respondents on the prospects of the VNPT
Telecommunication Thai Nguyen in terms of:
3.1. Management capacity
3.2. Human resource
3.3. Service attitude
3.4. Marketing
3.5. Material facilities
4.

Is there a significant difference in the assessed services performance and
prospects of VNPT Telecommunication in Thai Nguyen province as
perceived by the two groups of respondents?

Objectives of the Study
This study generally aimed to assess the quality of service performance
and prospect of VNPT resources of Thai Nguyen on the basis of opinions survey
review managers, employees and customers of VNPT Thai Nguyen.
Specifically, this study aimed:
1. To describe the profile of the respondents in terms of:
1.1. Age
1.2. Gender
1.3. Civil status

1.4. Educational attainment
2. To determine the perceptions of respondents on the services performance
of the VNPT Telecommunication Thai Nguyen in terms of:


9

2.1. Product and service
2.2. Place
2.3. Price
2.4. Promotion
2.5. People
2.6. Position
3. To assess the prospects of the VNPT Telecommunication Thai Nguyen in
terms of:
3.1. Management capacity
3.2. Human resource
3.3. Service attitude
3.4. Marketing
3.5. Material facilities
4. To compare the services performance of VNPT Telecommunication in
Thai Nguyen province as perceived by the two groups of respondents,
including employees and customers of VNPT Thai Nguyen.
5. To compare the prospects of VNPT Telecommunication in Thai Nguyen
province as perceived by the two groups of respondents including staff
and managers of VNPT Thai Nguyen.

Hypothesis of the Study
The study tested the null hypothesis that there is no significant
difference in the perception of services performance as perceived by

employees and customers and prospects of VNPT Telecommunication in Thai
Nguyen Province as perceived by managers and staff.


10

Significance of the Study
The desired goal of this study is to learn the current telecommunications
practiced by VNPT in the business of telecommunications services for the years
2011 to 2012; to offer solutions and suggestions for improving the quality of
telecommunications services and raise awareness of competitive effectiveness
of VNPT Thai Nguyen in the following years.
To the Manager. This will provide them with valued information
concerning the marketing. In this regard, they will be able to adapt their
development programs to help the company expand more in the future
To the Researcher. The researcher as a candidate for Doctor of
Business Administration degree will enhance her knowledge about marketing
and prospect development
To Future Researchers. This can serve as reference materials for
future researches similar to this.

Scope and Limitations of the Study
This research focused on evaluating the service performance of
telecommunications services by employees and customers in VNPT. This
research also focused on prospect in terms of management capacity,
Human resource, Service attitude; Marketing; and Material facilities of VNPT
Thai Nguyen. The others items are NOT included in the study.

Definition of Terms
Capacity Management refers to the managerial skill of manager in VNPT

Thai Nguyen.


11

Human resource refers to the quality and quantity of employees in VNPT
Thai Nguyen.
Customer is the person who uses the products of VNPT Thai Nguyen.
Marketing is the process of communicating the value of a product or service
to customers, for the purpose of selling the product or service. It is a
critical business function for attracting customers. From a societal point
of view, marketing is the link between a society’s material requirements
and its economic patterns of response. Marketing satisfies these needs
and wants through exchange processes and building long term
relationships. It is the process of communicating the value of a product
or service through positioning to customers. In this study, marketing is
one of the variables to assess prospect of VNPT Thai Nguyen. It
includes strategies and methods that VNPT applies in operation.
Material facilities are system material foundations, intangible and tangible
assets that the company owns, in order to serve the business and
production activities.
Prospect refers to the opportunities of VNPT that will likely contribute to its
success as perceived by the VNPT management and staff.
Place refers to where the product is sold.
Price refers to payment or compensation for products
Product is the service that VNPT is supplying to the customers. This includes
Internet access, entertainment, information, call utilities, credit topup/transfer, and other services.