Tóm tắt Luận án Improving the efficiency of bus services in Thua Thien Hue province

for buses, the shortage of shelters, stops, signs, parking lots, lines roads, especially transit stations. In addition, the thesis has also revealed that the overlap coefficient of the network segment is up to 50.53% of the route length affectingthe efficiency of bus services in Thua Thien Hue province. (ii) For enterprises of bus services: In addition to the safety and low cost of bus transportation, the thesis also sheds light on the unreasonable capital structure of enteprises because the loan is greater than the equity capital; cost growth rate is 1.5 times higher than capital growth rate; revenue growth is smaller than cost growth; the level of revenue increase is equivalent to the level of subsidy and the lowest rate of profit increase. Besides, the thesis also shows that compared to the capacity,actual transporation only reaches 12.06%, the level of demand satisfaction was only 8.53% although the local govermenthas had mechanisms and policies to subsidize, supported investment in renovating vehicles, and reduced taxes of corporate income as well as expanded routes. In addition, according to the assessment of managers analyzedusingthe Structural Equation Modelling(SEM),it is shown thatamong Response level, Empathy level, Reliability, Guarantee level, Tangibles affecting positively the efficiency of bus services, and Investment, Subsidies, PerceivedQuality, and Costs of positive impact on bus services, Investment (0.74) is the strongest factor of impact and the Subsidy (0.36) isthe weakest factor on the efficiency of bus services. The remaining factors such as perceivedquality (0.54) and costs (0.61) have a neutral impact on the efficiency of bus services in Thua Thien Hue. (iii) For passengers using bus services: The thesis has clarified (i) group of factors that constitute perceivedquality, including: tangibles, demand satisfaction, level of sympathy, reliability, level of responsiveness, level of guarantee; and (ii) group of factors affecting Effectiveness: Subsidies, Costs, Perceived quality level. Besides, the thesis has built a SEM model to determine the influence level and correlative relationship among the factors on perceivedquality of bus services,the positive relationship between service quality and service 4 efficiency. As a result, it can be determined that empathy level (0.94) and reliability (0.61) make the strongest impact, the level of assurance (0.11) makes the weakest impact on the perceived quality;the cost (0.79) and the perceived quality (0.68) make the strongest impact and the price subsidy (0.66) make the weakest impact on the service efficiency in Thua Thien Hue. The remaining factors such astangible means (0.58) and Responsive level (0.44), and price subsidy (0.66) take a neutral effect on the quality and efficiency of bus services in Thua Thien Hue,which have notbeenidentified in any previous study. 5 CHAPTER 1. LITERATURE REVIEW AND RESEARCH METHODS 1.1.1. Identify the research model of the efficiency of bus services from literature review (i) Efficiency from the viewpoint of State (local) management: The thesis uses FSA, CBA and MCA models to analyze benefits for the community and society through local budget savings;infrastructure development; reduction of subsidy level; reduction of environmental pollution; decrease of personal vehicles; reduction of traffic jam and road occupying. (ii) Effeciency from the enterprise's point of view: The thesis uses FSA, CBA, MCA models to analyze factors such as capital structure of enterprises; revenue growth rate; profit margin; performance of input use; average acquisition cost per passenger; energy saving; saving of investment costs; operating frequency; capacity utilization coefficient; accessibility and route networks; degree of demand response; and analysis methods of EFA, CFA, SEM model to determine the factors that constitute the quality of services for bus transportation and ones affecting the efficiency of bus services as well as their correlative relationship. (iii) Efficiency from the passengers’ perpective: The thesis uses CBA analysis model to evaluate benefits if passengers use buses instead of personal vehicles through fuel cost saving, time saving, saving of overall costs for a trip and safety assurance. Besides, the thesis also uses the EFA analysis model through the variables: tangibles, level of sympathy, reliability, level of sympathy, level of guarantee, subsidies, costs. As a result, the thesis builds a SEM model to clarify the influence level, the correlative relationship among the factors that make up the perceivedquality, the factors affecting theefficiency of bus services,the relationship between the perceived quality of bus services and the efficiency of bus services in Thua Thien Hue. 1.2. RESEARCH MODEL OF THE THESIS On the theoretical basis, the studies have referenced and adjusted variables and scales to suit the context and characteristics of the study field and area, the variant SERVQUA model is used for measuring the relationship between theperceived quality and the efficiency of bus services in Thua Thien Hueas proposed in Figure 1.1. 6 Figure 1.1. Proposed research model (Source: Author's proposal) 1.3. RESEARCH METHODS 1.3.1. Qualitative research methods In order to identify the factors that make up theperceivedquality and efficiency level of bus services, expert interviewswere conducted with a semi-structured questionnaire. The interviews were done through same questionnaires. The questionnaire consists of many factors which are composed and listed by group. Group 1 relates to the perceived quality: level of responsiveness, level of sympathy, level of guarantee and tangibles. Group 2 relates to the Efficiency: Investment–Subsidies - Perceivedquality- Costs. All lecturers and enterprise managers involved in the interviews agreed upon the perceived quality. Regarding the factor of efficiency, the experts requested to add Investment factor. 1.3.2. Quantitative research method - Select and develop a scale; - Comparative method; - Financial Statements Analysis (FSA); - Multi-criteria analysis (MCA); - Cost- benefit analysis (CBA); - Exploratory factor analysis (EFA); - CFA and SEM model ; - Data access method; - Other research methods. The level ofresponsiveness Cost Reliability Level o f sympathy Level of guarantee Tangibles Subsidies Perceived quality EFFICIENCY Invest 7 CHAPTER 2. THEORETICAL AND PRACTICAL BACKGROUND 2.1. THEORETICAL BACKGROUND 2.1.1. Concept of efficiency Dajani and Gilbert (1978) states that efficiency is the extent to which transport services meet personal and community goals. Fielding and Lyons (1993) defined that the efficiency is the level that consumed services corresponds to the goals set by the government. In addition, according to Gleason and Barnum (1982), efficiency is the extent to which a goal has been achieved. Regarding service users as passengers, Yeh et al (1996) revealed thatefficiency is the extent to which transport services meet the needs of passengers; In Hensher and Prioni (2002)’s opinion, the efficiency for users is service quality. 2.1.2. Perspectives of efficiency: - From the traditional point of view: Effeciency is the ratio between obtained results and the spent, or in contrast, the cost per product unit or product value. - From the modern viewpoint (i) Dynamic status of the relationship between input and output: (ii) Time factor is considered as an important factor in the difference calculation ; (iii) Financial, social and environmental efficiency: financial efficiency must be consistent with the updated trend, the local and national sustainable growth and development strategies. 2.2. THEORETICAL BACKGROUND OF EFFICIENCY IMPROVEMENT 2.2.1. Concept of Efficiency improvement Efficiency improvement is an economic category reflecting the enterprises’ capacity to use the workforce, materials and financial resources to achieve greater efficiency and lower costs. It is considered to be more effective asthe present value of the future obtained value is greater than theinitial capital . 2.3. THEORETICAL AND PRACTICAL BACKGROUND OF EFFICIENCY IMPROVEMENT OF BUS SERVICES 2.3.2.1. Concept of bus: According to the Circular No. 65/2014/TT -BGTVT dated November 10, 2014 of the Ministry of Transport, it is defined that bus is a vehicle with a capacity of 17 passengers or more. There are 3 types of buses: minibuses accommodating up to 40 passengers, average busesaccommodating from 41 passengers to 60 passengers, andlarge buses with a capacity of 61 passengers or more [5]. Busis a passenger vehiclewhich is designed with 17 seats or more and has a floor space for passengers standing at 0.125 m2 as prescribed. 8 2.3.2.2. Public passenger transportation by bus According to Decision 34/2006/QD-BGTVT, Public passenger transportation is a service to transport passengers by car along a fixed route with stops for picking up, dropping off and in which the vehicle is run according to the chart. According to Decision No 13/2015/QD-TTg, it can be understood that bus transportation is a service that passengers are transported on a fixed route by bus, with stops for picking up, dropping off and in which the vehicle is run according to the chart. Bus service is a type of transportation with fee collection as prescribed and the vehicle is operatedbased on a prescribed chart and itinerary to serve the needs of daily travelingfor city residents. 9 CHAPTER 3. CURRENT SITUATION OF BUS SERVICES IN THUA THIEN HUE 3.1.CHARACTERISTICS OF BUS SERVICES IN THUA THIEN HUE 3.1.2. Characteristics of transportation and bus services 3.1.2.1. Characteristics of transportation From 2013 to 2017, the proportion of road passenger transportation increased steadily, specifically in 2013 it reached 92.5%, in 2017 it reached 96.1% compared to the local transport. Tohave an overview of the uptrend, please see Chart 3.1. Figure 3.1. Proportion of road passenger transport 3.1.2.2. Features of bus services in Thua Thien Hue province Table 3.4. The proportion of bus transport compared to road transport in the period of 2013 - 2017 in Thua Thien Hue province (Unit: Million turns) Year Targets Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Road transport 11.991 14.810 16.503 17.544 18.717 Bus transport 0.768 1.150 1.397 1.763 1.862 Bus / road transport density (%) 6,40 7,77 8,47 10,05 9,95 (Source: Statistical Yearbook of 2013 - 2017 and Department of Transport of TTHProvince) As shown in Table 3.4, during the period of 2013 - 2017, the average annual bus transport took over 8.5% of the total number of passengers using road transport services.Although the number of vehicles was not bigand there are a few routes, a relatively abundant of passengers use bus services. This shows that passengers tend to use bus services more and more. 16 17.5 18.6 19.7 20.7 109.4 106.3 105.9 105.1 14.8 16.5 17.5 18.7 19.9 111.5 106.1 106.9 106.4 92.5 94.3 94.1 94.9 96.1 0 20 40 60 80 100 120 2014/2013 2015/2014 2016/2015 2017/2016 2013 2014 2015 2016 2017 Vận chuyển hành khách địa phương (triệu HK) Vận chuyển hành khách đường bộ (triệu HK) Tỷ trọng vận chuyển đường bộ/vận chuyển địa phương Transport of local passengers (million passengers) Road passenger transportation (million passengers) Proportion of road transport / local transportation 10 3.3. EVALUATION OF EFFICIENCY OF BUS SERVICES IN THEVIEWPOINTS OF STATE MANAGEMENT AGENCIES, ENTERPRISES AND PASSENGERS 3.3.1. Evaluate the effeciency of bus services from the perspective of State management agencies 3.3.1.2. Evaluate the effeciency of bus services through distance and route overlapping coefficient Most of the major routes are on National Highway 1A such as routes 01, 05, 11, 12, 13, 06, 08, 09, 14, 07, 15, 16 with overlapping coefficient of over 43.33% in road length. Especially, overlapping coefficient accounts for 81.25% for two routes, Dong Ba - Phu Bai - Canh Duong and Dong Ba - Lang Co.Averagely,the coefficient of overlapping routes across the network is up to 50.53%. Moreover, the bus route network is still inadequate because most of the routes mainly focus on the two directions, the North (27.78%) and the South (44.44%) and the routes are on National Highway 1A.The average length of route is great.There is no transit stops and only 5 routes have the starting point at the South Bus Station. On the contrary, there are up to 10 routes with the samestarting point at Dong Ba Bus Station, 01 route with the starting point at the Northern Bus Station and 02 routes with same starting point in Phu Bai Industrial Zone. Table 3.9. Distance and overlapping coefficient of bus routes in Thua Thien Hue TT Route distance Route number Number of routes Network rate (%) Overlapping route Overlapping coefficient (%/km) 1 Less than 15 km 4 01 5,56 Bus station in the South –Bus station in the North 43,33 2 From 15 to below 30 km + 2, 3 02 11,11 + 5 01 5,56 Bus station in the North 65,0 3 From 30 to below 45 km + 1, 12, 13 03 16,66 Da Vien Bridge 50,0 + 6, 8, 9, 14 04 22,22 Dong Ba-Phu Bai 44,44 4 Over 45 km + 7, 15, 16 03 16,66 Dong Ba - Phu Bai - Canh Duong 81,25 + 10, 17 02 11,11 Dong Ba-Phu Bai 36,36 + 11 01 5,56 Dong Ba –Dien Truong 33,33 + 18 01 5,56 Total 18 100,0 50,53 (Source: Thua Thien Hue Provincial Department of Transport and author's calculations) 11 3.3.1.4. Assess the efficiency in reducing personal vehicles Table 3.11. Reduce the number of vehicles on the road in the period 2013-2017 (Unit: Turn) Year (1) Amount of passsenger using bus transportat ion (2) Hit the traffic on the road Bus (3=2/40n) Car (4=2/5n) Motorcycle (5=2/2n) Car- Bus(6=4-3) Motorcycl- Bus(7=5-3) 2013 768.246 19.206 153.649 384.123 134.443 364.916 2014 1.150.182 28.754 230.036 575.091 201.281 546.336 2015 1.397.277 34.931 279.455 698.638 244.523 663.706 2016 1.763.837 44.095 352.767 881.918 308.671 837.822 2017 1.862.409 46.560 372.481 931.204 325.921 884.644 Total 6.941.951 173.548 1.388.390 3.470.975 1.214.841 3.297.426 (Source: TTH Province’s Departmentof Transportation and author's calculation) Assuming an average of 40 passengers taking a bus at a time; 5 passengers going on a car and 2 passengers on a motorbike, we can identify how many motorbikes and cars whicha bus canreplace. The results showed that if using buses instead of personal cars, the number of turns decreased by 1,214,841; similarly, if using buses insteads of motorbikes, there will be 3,297,426 turns. Thereby, it can be said that using buses helps the State save the investment in road transport infrastructure, reduce traffic jams, decrease the risk of traffic accidents, save State administrative costs and reduce travel time caused bytraffic jams. 3.3.2. Evaluate bus services from the enterprises’ point of view using SFA, MCA and CBA methods 3.3.2.1. Assess the effeciency based on the background of assets and capital Table 3.19. Results of inputs for bus services in the period of 2013 - 2017 Year 2013 2014 2015 2016 2017 2014 /2013 (%) 2015 /2014 (%) 2016 /2015 (%) 2017 /2016 (%) Targets Unit Total revenue (trđ) 7.238 7.626 2714 14.012 16.457 - - - - Total cost (trđ) 3.671 1.936 4.377 17.936 15.468 - - - - Total capital (trđ) 5.718 6.168 15.166 15.764 16.923 - - - - Total labor (n) 183 177 225 264 269 - - - - Total profit (trđ) 3.567 5.690 -1.663 -3.924 9.89 - - - - Capital efficiency (V) 1,26 1,23 0,17 0,88 0,97 0,97 0,14 4,96 1,09 Cost performance (V) 1,97 3,93 0,62 0,78 1,06 1,99 0,15 1,25 1,36 Labor efficiency (%) 39,55 43,08 12,06 53,07 61,17 1,08 0,27 4,40 1,15 (Source: TTH Department of Transport and the author's calculation) 12 Table 3.19 shows that the efficiency of capital use decreased steadily over the years, specifically in 2013 it reached 1.26 rounds, up to 0.97 rounds in 2017, only 1.09% compared to 2016. For cost efficiency, in 2014 it was 3.93 rounds;in 2017, a decrease of 1.06 rounds an achievement of 1.36% compared to 2016. 2015 got the lowest cost efficiency, reaching 0.62 rounds. For labor efficiency, 2017 got the largest, reaching 61.17% and compared to 2016 an increase of 1.15%. For labor efficiency, it tend to be increasing proportion; specifically, 39.55% in 2013, 43.08% in 2014 and up to 1.08% compared to 2013.Similar to 2016, it reached53.07. % and61.17% in 2017. Compared to 2016, there is an increase by 1.15%. Table 3.20. ROE ratio of bus services in the period of 2013-2017 Year 2013 2014 2015 2016 2017 2014 /2013 (%) 2015 /2014 (%) 2016 /2015 (%) 2017 /2016 (%) Targets ROE ratio /1 VND of capital 0,03 0,02 0,01 0,01 0,01 0,89 0,51 1,12 0,94 ROE ratio/1 VND of cost 0.05 0.09 0.05 0.01 0.02 1.83 0.56 0.28 1.18 ROE ratio / 1 labor 4,62 4,10 18,65 4,97 4,39 0,88 4,54 0,26 0,88 (Source: TTHDepartment of Transport and the author's calculation) The ROE ratio with 1 VND of capital decreased. In 2013 it reached 0.03 times while in 2017 it decreased to 0.01 times, compared to 2016 an achievement of 0.94%. The ROE ratio with 1 VND of cost has shown a decrease.In 2013 it reached 0.05 times while in 2017 it decreased to 0.02 times.Compared to 2016 it only increased by 1.18%. The ROE ratio with 1 employee in 2013 increased 4.62 times while in 2017 it decreased to 4.39%. Compared to 2016 it reached 0.88%. Thus, the ROE ratio on 1 dong of capital and 1 dong of cost decreases, in which the decrease level of the ROE ratio of 1 dong of cost is greater than one of 1 dong of capital . It means thatthe cost growth is 1.5 times greater than the capital growth. 3.3.2.7. Evaluate efficiency based on trip costs - The average cost for a motorbike trip is VND 15,166. - The average cost for a car trip is VND 66,252. - The average cost for a bus trip is VND 14,560. 13 Thus, the cost for a bus trip is only 96.3% compared to cost of a motorbike trip and 21.98% compared to cost of car trip. Therefore, the cost of bus use is the cheapest. (Refered to Table 3.21). Table 3.21. Comparion among trip costs of motorbikes, cars and buses Targets Motorbike Car Bus Quota Average cost /trip Quota Average cost /trip Average cost /trip Registration fee License plate registration fee 5% car value =VND 1,500,000 400,000 1,284 1,027 10% car value =30,000,000 1,000,000 25,698 856 - - First registration fee 0 VND 0 VND 240,000/30 months 205 - Road maintenance fee VND 100,000/year VND 2,569 VND 1,560000/year 455 - Insurance 80.000/year 2,055 VND 520,700/year 13,381 - Fuel 2,25 littres /100 km 3,636 7 littres /100 km 11,313 - Tires Chain gear Cooling water Battery VND 450,000/10,000 km 250,000/20,000km 25,000/20,000km 300,000/20,000km 422 117 12 140 4.000.000/50.000km VND 0 1,000000/50,000km 2,000,000/60,000km 675 VND 0 70 750 - - - - Depreciation 10% fixed cost /year 3,854 10% fixed cost /year 12,849 - Total 15,116 66,252 14,560 (Source: Author’s analysis) 3.3.3.5. Accreditation of research hypotheses through SEM model * CFA analysis of Bus service efficiency There are 10 measurable factors in affirmative factor analysis (CFA) model: (1) Degree of empathy in service supply ; (2) Reliability in service supply ; (3) The level of demand satisfactionin service supply ; (4) Level of Guarantee in service supply ; (5) Tangibles in service supply; (6) Perceived quality; (7) Investment; (8) Subsidies; (9) Costs; (10) Efficiency, as shown in Figure 3.4. 14 Figure 3.4. Estimate the standardization of CFA according to the evaluation of managers and employees Figure 3.5. Estimate the standardization of SEM according to the evaluation of managers and employees (Source: Survey results in 2017) Table 3.43. Value of standardized SEM model of Bus Services Factor Estimates Relationship Variable Factor Estimates Relationship Variables Tangibles 0.75  Perceived Quality Subsidies 0.36  Efficiency Level of demand satisfaction 0.53  Perceived quality 0.54  Reliability 0.24  Costs 0.61  Level of sympathy 0.38  Investment 0.74  Level of guarantee 0.39  Efficiency 0.27 (Source: Survey results in 2017) * Factors affectingperceived quality of bus services Perceived quality= 0.54 + 0.75*Tangibles + 0.53*level of responsiveness + 0.24* Reliability + 0.38* Level of sympathy+ 0.39*Level of Guarantee - Tangibles affect the most to the perceived quality with the impact level of 0.75. It means that as the perceived quality increases by 1, the tangibles increase by 0.75. - Finally, the Reliability affects at the lowest level to the perceived qualitywith the impact level of 0.24. As the perceived quality increases by 1, the reliability increases by 0.24. * Factors affecting Bus services efficiency Bus service efficiency = 0.27 + 0.36* Subsidies + 0.61* Costs + 0.74* Investment + 0.54*Perceived quality + (0.75* Tangibles + 0.53* Level of responsiveness+ 0.24* Reliability + 0.38* Level of sympathy+ 0.39* Level of Guarantee) The Investment factor has the highest impact on the effeciency.It means that when the 15 efficiency of bus transport increases by 1, the Investmentincreases by 0.74. Finally, the Subsidies has the lowest impact on the efficiency.It means that the efficiency of bus services increases by 1, the Subsidies increases by 0.36. 3.3.3. Evaluate efficiency of bus services from passengers' perspective 3.2.3.6. Overall accreditation of SEM model of bus services from the perspective of passengers Figure 3.5. Estimated results of standardized SEM model on the efficiencyO&C in Thua Thien Hue through evaluating passengers (Source: Results of data processing in 2017) From the results of estimating the general normalized value of SEM analysis of perceivedquality, it is shown through the following equation: Perceived quality = 0.69 + 0.61*Realibility + 0.94*Level of sympathy + 0.44* Level of Responsiveness + 0.58* Tangibles + 0.11*Level of Guarantee - MCDC Level of sympathy impacts the most on perceivedquality (0.94). It means that when the quality of bus services increases by 1, the level of sympathy increases by 0.94. - Level of Guarantee has the lowestinfluence on the perceived quality (0.11). It means that the quality of bus services t increases by 1, level of Guarantee increases 0.11. * Factors affecting bus service efficiency Efficiency of bus services = 0.87 + 0.66* Subsidies + 0.79* Costs + 0.68*Perceived quality + (0.61* Reliability + 0.94* Level of sympathy + 0.44* Level of responsiveness + 0.58* Tangibles + 0.11* Level of Guarantee) Therefore, based on the passengers' evaluation, level of sympathy has the strongest impact, the perceived qualitythe second and Subsidies the third. Level of Guarantee has the lowest impact on bus services. 16 Table 3.38. The overall standardized value of the SEM model for bus services through passengers’ point of views. Factor Estimates Relationship Variable Factor Estimates Relationship Variable Tangibles 0.58  Perceived quality Subsidies 0.66  Efficiency Level of responsiveness 0.44  Perceived quality 0.68  Reliability 0.61  Costs 0.79  Level of sympathy 0.94  Efficiency 0.87 - Level of Guarantee 0.11  - - - (Source: Survey results in 2017) 17 CHAPTER 4 PRACTICAL IMPLICATIONS AND SUGGESTIONS 4.2. SOLUTIONS TO IMPROVE EFFICIENCY OF BUS SERVICES IN THUA THIEN HUE PROVINCE- 4.1.2. Solutions to improve bus services efficiency in Thua Thien Hue 4.1.2.1. Group of solutions to improve the efficiency of bus services from the perspective of State management agencies * Managing and investing in developing transport infrastructure; * Shortening the distance to the station and increasing accessibility to bus systems. * Adjusting and opening more bus routes; * Completing fare policies and supporting the rennovation of bus transportation. * Applying environmental standards for buses. 4.1.2.2. Group of solutions to improve the efficiency of bus services from the perspective of bus services: * Improving the efficiency of corporate financial mechanism; * Adjusting, selecting means of transport and routing capacity; * Applyingthe management system of smart bu