Mobilize investment capital for socioeconomic development of ethnic minorities and mountainous regions of Vietnam from 2010 to 2020

Mobilize investment capital for
socioeconomic development of
ethnic minorities and mountainous
regions of Vietnam from 2010 to
2020


Recognize the importance, Vietnamese Party and State have had many guidelines
and policies to invest into ethnic minority and mountainous regions. It has resulted
in many improvements in physical and spiritual life of minority and mountainous
peoples. The proportion of the poor has been reduced remarkably. Socio-economic
infrastructure has been strengthened. Education and training have gained lots of
achievements. Health care has been better and better. Cultural characters of peoples
have been preserved and improved. National defense, security and social order
have been guaranteed. The above achievements show the consistent policies and
intensive take-care of Vietnamese Party, State and the whole political system and
contribution of all people to the socio-economic development of ethnic minorities
and mountainous regions.
However, beside the said achievements, ethnic minorities and mountainous
regions still have many problems such as low level of socio-economic
development, high disparity in comparion to other regions, and higher rate of the
poor and nearly poor households than the overall average of the country. One of
the vital reasons of the above problems is lack of capital to develop, especially in
the Northern midland and mountainous regions. The problem is becoming a huge
abstract to socio-economic development of the region. This is not only my private
concern but also the general preoccupation of scientists and managers at all levels
from the Center to locals to exploit the available potentials of the region to serve
the industrialization and modernization of the country.
From these problems, in the study “Mobilize investment capital for socioeconomic development of ethnic minorities and mountainous regions of Vietnam
from 2010 to 2020”, I choose “Mobilize investment capital for socio-economic
development of Northern midland and mountainous regions and Central Highlands

of Vietnam from 2010 to 2020” because these are two most typical areas. Choosing
two regions to do PhD thesis is reasonable and necessary.


2. OVERVIEW OF THE STUDY
- In the world
Many scientists spent a lot of time in studying about capital, investment and
mobilization of investment capital and came to important conclusions. In the work
“The Wealth of Nations” (1776), Adam Smith affirmed: “Saving is the direct cause
of capital increase. Working makes product for saving. However, even a lot of
products are made, no saving means no capital increase”. According to C. Mac’s
opinion in the work “Capital”, saving is the rule of broadened reproduction. To
broaden reproduction, input factors need to be strengthened, that means capital
should be invested”. In a famous work of John Maynard Keynes, “The General
Theory of Employment, Interest and Money”, he improved that it is investment
that equals amount of income which is not transferred into expenditure. At the
same time, he also showed that saving is the surplus of income more than
expenditure.
In recent years, ethnic minority and mountainous have attracted much concern of
international organizations as the World Bank, UN Development Program, etc., to
investigate and invest in socio-economic development to reach the goal of poverty
reduction.
- In Vietnam: (1) scope of economy; (2) scope of ethnic minority and mountainous
areas. Studies on scope of economy focus on public investment, capital
mobilization for development investment and ODA and FDI mobilization. Those
on scope of ethnic minority and mountainous areas focus on summarizing the
implementation of investment policies for the regions, assistance poplicies for
development of economy, culture and society and poverty reduction, analyzing
current situation, shortcomings and reasons of the shortcomings, proposing
methods to mobilize capital for socio-economic development in ethnic minority

and mountainous areas. The studies approached and researched about capital and
other resources for socio-economic development in ethnic minority and
mountainous regions at various levels. From that, they suggested many new useful
study directions.
3. Objectives of the study
- Systematize a number of theoretical and practical issues on mobilization of
investment capital for socio-economic development, some issues on theories of
investment, forecasting capital needs, and some theories of regional development.


The study also investigates some experience in capital mobilization for investment
and development and regional development policies of several nations in the
region and in the world that can be applied into Vietnam.
- Analyze and evaluate the current situation of capital mobilization for socioeconomic development of the Northen midland and mountainous regions and
Central Highlands from 2001 to 2010, result of capital mobilization, development
trend of capital resources, impacts of investment capital on economic growth,
economic structure movement, budget, and import and export of the regions in
stage 2001-2010.
- Analyze to clarify relationships and factors (natural conditions, economy,
society, culture, etc.,) affacting to capital mobilization for socio-economic
development of the regions; the relationship between the result of capital
mobilization and subject using the capital.
- Propose solutions that are feasible and synchronous on investment policies to
mobilize the highest amount of investment capital for socio-economic development
of the Northen midland and mountainous areas and Central Highlands of Vietnam
upto 2020.
4. Object, scale and lcation of the study
- Objetc of the study: to mobilize investment capital for socio-economic
development of the Northen midland and mountainous areas and Central
Highlands of Vietnam upto 2020. It will show the most typical characters of

“Mobilization investment capital for socio-economic development of ethnic
minority and mountainous regions Vietnam from 2010 to 2020”.
- Scale of the study
+ Temporal scale: analyze and evaluate the real situation of capital mobilization of
the regions from 2001 to 2010; solutions to mobilize capital for the regions upto
2020.
+ Spatial scale: The study is implemented at 2 regions: the Northen midland
and mountainous region and Central Highlands. These are 2 typical regions for
ethnic minority and mountainous areas of Vietnam.
5. Study method


- Methodology: based on the scientific perspectives of Marxism – Leninism,
methodology of dialectical materialism and historical materialism, the views and
policies of Vietnamese Party and State, economic theories, socio-economic policies
and regional development theory, etc.
- Study method: (1) Information collection; (2) Comparision; (3) Group to
statistics; (4) Inheritance; (5) Expert; (6) Forecast.
6. Contributions of the thesis
- This is the first systematic study researching in-depth in: investment,
development investment, capital, capital mobilization for socio-economic
development; theory of investment and forecasts of socio-economic development
capital demand, regional development theory, problems of raising investment
capital for regional socio-economic development and regional problems and ethnic
minority and mountainous areas in Vietnam.
- The thesis analyzes and assesses the status of capital mobilization for
socio-economic development of the Northen midland and mountainous region and
Central Highlands in th period 2001 - 2010; analyzes and assesses achievements,
limitations, reasons of the limitations, lessons and the question of capital
mobilization for socio-economic development; and analyzes relationships and the

factors (natural conditions, socio-economic conditions, policies and mechanisms to
mobilize capital, etc.) that influence to result of capital mobilization from 2001 to
2010.
- The thesis provides more scientific basis to propose solutions of
investment capital mobilization to develop economy and society in the Northen
midland and mountainous area and Highland of Vietnam to 2020.
7. Structure of the thesis
Beside introduction, conclusion, references and appendixes, the thesis
includes 3 chapters:
Chapter 1: Theory and the fact of mobilization of regional socio-economic
development capital.
Chapter 2: The real situation of capital mobilization for socio-economic
development in the Northen midland and mountainous region and Central
Highlands.


Chapter 3: Solutions to mobilize investment capital for socio-economic
depvelopment of the Northen midland and mountainous region and Central
Highlands of Vietnam upto 2020.
CHAPTER 1
THEORY AND THE FACT OF MOBILIZATION OF REGIONAL SOCIOECONOMIC DEVELOPMENT CAPITAL
1.1. Theory of socio-economic development capital
- The thesis presented concept of investment and development investment.
The author specializes in researching development investment with the following
issues: (1) Characteristics of development investment; (2) Basic information of
development investment; (3) Investment capital and capital resource; (4) The role
of development investment with growth and development (impact on aggregate
supply and aggregate demand of economy, on economic growth, on economic
structure movement, on science and technology, on social improvement and on
environment and impact of economic growth and development on investment)

- Some theories on investment: investment multiplier, internal fund theory of
investment, Harrod-Domar model; All theories on investment which are applied
have concerning to socio-economic development investment capital. This is an
abundant issue. For this reason, the thesis chooses the Harrod – Domar model to
forcast the demand of development investment capital. It gives a foundation to
define total demand of capital for regional development and economy development
in a certain period. From that, the thesis finds down duties and builds solutions to
mobilize investment capital for the development of whole economy as well as each
region.
1.2. Theory on regional socio-economic development
- The thesis gives some concepts: region, regional economy, socio-economic
region, ethnic minority and mountainous region, regional socio-economic
development.
- Some theories concern to regional development: (1) Theory of regional; (2)
Theory of regional development stages; (3) Selection of the motivative field in
regional development. There are quite many hypotheses about regional growth.
However, in the framework of the thesis, the autor only mentions to the theories
that relate to resources and function as the foundation to build solutions to mobilize


regional development capital. The theories can be referred or applied. Regional
study is affected by the following factors: natural conditions (natural resources,
geographical position); investment capital; labor; science and technology;
cooperation (shows association ability of the region); socio-economic
infrastructure; and policies.
1.3. Theory on mobilization of regional socio-economic dvelopment capital
- The thesis gives some theories on mobilization of regional socio-economic
development capital. With different positions, different objects and different
characteristics, types of capital mobilization can be classified as follows: (1)
Classify according to the mobilization sources; (2) Classify according to scope of

mobilization sources; (3) Classify according to mobilization time; (4) Classify
according to mobilization forms.
- The indicators reflecting investment capital mobilization of socio-economic
development are reflected through the volume target, structure of capital
investment and efficiency of regional socio-economic development capital: for
investment projects, it must be considered from two angles, the investor and the
economy. With economic scope, industries, regionsl or locals, economic and social
effectiveness is assessed through criteria: economic performance, growth of total
GDP, the economic restructuring, budget increase, increase of foreign exchange
earnings or export turnover than investment capital having effectiveness in
researching period. Social performance: employment, poverty reduction, social and
cultural development, etc.
- The relationship between capital mobilization sources and capital users: the study
defines clearly that the relationship not only helps managers set forth resolutions to
increase effectiveness of capital using but also help policy makers give effective
methods to enhance capital mobilization for socio-economic development.
Investment capital for socio-economic development includes:
- Dometic capital: A part of total GDP is used for expenditure. The rest is saved. A
piece of the saved part is used to pay debt and backup. The other part is used for
socio-economic development. Savings in residential and non-state enterprises is
divided a part for business and production, a provision for bringing in bank credit
or financial intermediaries. Moreover, investment capital is also mobilized from
non-state enterprises and people’s contribution through public labor days.


+ Foreign capital: including the oficial development assistance and direct
investment into Vietnam (ODA and FDI).
- Factors affacting to the mobilization of regional socio-economic development
capital includes: natural, economic and social conditions, regional and international
integration, mechanisms and policies on regional development; role of gavement at

all levels from the center to local; and national defense and security.
1.4. Experience in capital mobilization for development of several nations
The thesis has shown experience in capital mobilization in Korea, China and
ASEAN. These are lessons for Vietnam to develop investment policies and
management methods and allocate socio-economic development investment
capital.
1.5. Experience in organizing regional apparatus and regional development policies
of some countries
The thesis has shown experience in organizing regional management apparatus and
regional development policies of several nations in the world. These are lessons for
Vietnam to organize regional apparatus and pay attention to natural conditions,
geographic position, development level and socio-economic factors when planning
regional development policies.
CHAPTER 2
THE REAL SITUATION OF CAPITAL MOBILIZATION FOR SOCIOECONOMIC DEVELOPMENT IN THE NORTHEN MIDLAND AND
MOUNTAINOUS REGION AND CENTRAL HIGHLANDS
2.1. Natural, socio-economic and defense characteristics have impacts on capital
mobilization at the Northen midland and mountainous area and Central Highlands
- The thesis has presented natural, socio-economic and defense characteristics
affacting to capital mobilization of the Northen midland and mountainous area and
Central Highlands with the following typicals: (1) This is a vast region with area of
94.862 km2 (account for 29% of whole nation area), special defense position,
abundant natural resources (forest, soil, water, mine), and difficult and dissected
terrain by block of mountains running according to northwest - southeast direction.
Hoang Lien Son ranges to 180 km long, 30 km wide, with a number of high peaks
from 2800 to 3000 m. It has very harsh climate: in winter, hoar frost and very low
temperature appear at, especially at high mountains. In summer, there are many


storms, whirlwinds, floods and flood tubes, hail, etc., causing landslides leading to

many difficulties for production and life; (2) About economy: Average economic
growth at all period 2001-2010 was 8.7 %; economic structure had a positive
change, agriculture rate decreased from 39.0 % in 2001 to 35.1 % in 2005 and 30.5
% in 2010, similar to industry and construction increased from 31.1 % to 32.1 %
and 33.0 %, services increased from 30.0 % to 32.8 % and 36,5 %; (3) About
society and culture: population is 11,053,545, accounting for 12.9 % of the national
population. In which, there are 6,034,224 people of ethnic minorities, making up
54.6 % of the region population. There are 49 peoples living together. The largest
is Tay, Thai, Nung, Muong, H'mong; culture and language of Tay, Nung, Thai,
Muong, Mong affect to the regional culture. Labor accounts for 49.5 % of the
population; untrained workers account for 80.5 %. Health care and education have
improvement of both quantity and quality. Material and spiritual life of the people
are increasingly improved.
- The thesis presented natural, socio-economic and national security characteristics
having impacts on capital mobilization of socio-economic development in the
Central Highlands with features as follows: (1) The Central Highlands is a plateau
with abundant natural resource. It has an important strategic position on national
security with an area of 54.659 km2 and natural tropical monsoon climate plateau,
is divided into two seasons: rainy season from May to October with humid and
cool climate and dry season from November to April with dry and cold climate.
The average temperature is about 19 - 200C. (2) About economy: economic growth
rate in 2001-2010 period was 8.6 %. The economic structure had positive changes;
agriculture's share decreased from 54.7 % in 2001 to 52.3 % in 2005 and 51.1 % in
2010, similar to industry and construction increased from 16.4 % to 19.0 % and
22.0 %; services increased from 28.9 % to 28.7 % and 26.9 %. (3) About society
and culture: population is 5,115,135, accounting for 5.95 % of the national
population. There are 1,805,226 ethnic people accounting for 35.3 % throughout
the region. There are 46 peoples living intertwinedly. The largest is Jarai, Ede and
Bana. Jarai, Ede and Bana culture and language affect to the regional culture;
population density is 98 people/ km2. Untrained workers account for 82.08 %,

which is a large obstacle to socio-economic development of the region. Health care
and education are paid interest to invest; people's life is gradually improved.
2.2. The real status of capital mobilization for socio-economic development in the
Northen midland and mountainous region and Central Highlands from 2001 to
2010


2.2.1. Policies relating to the mobilization of investment capital for the Northen
midland and mountainous region and Central Highlands
Vietnamese Party and State have priority concern for investment into ethnic
minority and mountainous regions through a variety of policies in all fields of
economics, politics, culture, society, security and defense. In the period 1999-2005,
there were 86 writtens of the Government, the Prime Minister and the ministries
and central agencies issued and implemented for the minorities and mountainous
regions. In the period from 2006 to 2012, investment policies for ethnic minority
and mountainous areas were presented in nearly 160 institutions with legal
documents including: 14 decrees of the Government, 40 decisions of the Prime
Minister; 27 documents on approving schemes and policies; 26 joint documents
between the ministries, ministerial-level agencies and 51 documents of ministries,
ministerial-level agencies. Besides, based on the actual situation, the locals built
and promulgate actively policies for the investment into minority and mountainous
regions.
Investment policies for ethnic minority and mountainous regions are changing
basically and nearer and nearer to the actual. It is from the policy of direct support
in major to both development investment and direct support. Location and objects
in policy system also have important changes, from “easy first, difficult later” to
priority to invest and support for the most difficult areas and the poorest districts in
the program fast and stable poverty reduction of 62 poor districts (Resolution 30a).
Nowadays, Vietnam has 85 poorest districts.
Continouing the first stage of Program 135, policies in the second stage from 2006

to 2010 focused on resolving the most difficult and imperative problems for ethnic
minority and mountainous regions to speed up the region, such as: Invest into
infrastructure of particularly difficult hamlets and villages (Program 135 stage II);
policy of supporting living land, production land, living house and household water
for ethnic minority community having poor life (Decision 134, Decision 1592),
policy of supporting in doing houses (Decision 167), policy of lending capital
(Decision 32 ans Decision 1342), policy of supporting to settle agriculture
(Decision 33 and Decision 1342), etc. Together with support policies for
development, there are plolicies promulgateenclosed with Decision 24, 25, 26 and
27/2008/QD-TTG ensuring combine socio-economic development with security
and defense of these regions, border regions, revolutionary base areas and safety
zones. The policies for some ethnic minorities such as Brau, Ro Mam, O Du, Si La,
Pu Peo, Sewer, Arrays, La Hu, Co Lao and the investment policies for agriculture


and rural development, education training, medical care for the people, culture,
sport, etc., create a relatively comprehensive policy system, covering the areas
around the economics, society, security and defense. The policies are a positive
factor to impact on regional development capital raising of minorities and
mountainous regions in general and the Northen midland and mountainous region
and Central Highlands in particular.
2.2.2. Result of capital mobilization for socio-economic development
2.2.2.1. Social investment capital for socio-economic development nationally and
regionaly
The statistics of social capital by region certain disparities between regions.
Central Highlands has lowest proportion of structural social capital in the whole
country. In period 2001-2010, total investment capital was 181.679 billion,
accounting for 4.2 %; similarly, next to the Northen midland and mountainous
regions with 369.159 billion, accounting for 8.5 % and the Mekong delta region
was 609.680, accounting for 14.1 %, North Central and South Central Coast was

911.778 equal to 21.0 %, the Red River delta was 1074836 equal to 24.7 %. 27.4%
was the South East with 1.190.007 billion. Areas with difficult socio-economic
conditions have lower propotion than those are more developed (the South East
region accounted for the highest percentage, 27.4 % in the 2001-2010 period, Red
River Delta accounted for 24.8 %, the Central Highlands, the Northen midland and
mountainous region had the lowest rate, respectively, 8.5 % and 4.2 %) .
The main causes of the above condition are poor infrastructure, difficult
transportation, far away markets, and low quality of human resources, less
attractive investment environment. These are the major causes making investors do
not invest much capital for socio-economic development of the Northen midland
and mountainous regions and Central Highlands.
2.2.2.2. Mobilize according to socio-economic development investment capital of
the Northen midland and mountainous areas and Central Highlands
- Mobilize according to socio-economic development investment capital of the
Northen midland and mountainous areas. Total investment capital for the period
2001-2010 is 369.159 billion, in which, 150.567 billion if from budget, accounted
for 43.3%, similar to the state credit is 46.509 billion and 11.9%, state-owned
capital is 18,500 billion and 6.4% and that of non-state sector is 313.236 billion
and 32.6%. FDI is 22,801 billion, accounted for 5.9%.


- Mobilize investment capital according to Central Highlands. Total investment
capital for the period 2001-2010 is 181.679 billion, in which, 57.039 billion if from
budget, accounted for 31.7%, similar to the state credit is 36.855 billion and
20.6%, state-owned capital is 16.838 billion and 7.7% and that of non-state sector
is 66.681 billion and 36.5%. FDI is 6.275 billion, accounted for 3.6%.
2.2.2.3. Capital mobilization for economic sectors
In the period from 2001 to 2010, total mobilized investment capital of the
Northen midland and mountainous region reached 369.159 billion VND, including
30.516 billion VND invested in forestry and aquatic production, accounting for

8.3%; 125.478 billion invested in industry and construction, accounting for 35%.
Trading and services was 213.165 billion and 57.7%. The Central Highlands
respectively was 181.679 billion VND; 47.590 billion and 26,2%; 64.792 billion
and 35,7%; 69.297 billion and 38,1%.
2.2.3. Impacts of investment capital to socio-economic development of he region
The thesis presents the impact of investment capital to economic growth, to
economy restructuring, to the budget revenues, to solution and creatation of new
jobs for workers, to export turnover, and to the implementation of poverty
reduction goals.
2.3. Overall assessment
2.3.1. Achievements
The results of raising capital have met the basic requirements of socio-economic
development and economic growth promotion (annual average growth rate of the
Northen midland and mountainous region is 8.7% and the Central Highlands is
8.6%), while contributing to restructure economy towards industrialization and
modernization, increase gradually the share of industry and construction, services,
reduce the share of agriculture, forestry, fishery, mining all potentials of the region.
Infrastructure (electricity, roads, schools, stations, irrigation, etc.,) has been
increasingly improved; the face of rural mountain areas have had a positive
change. The investment environment has been improved; economic sectors have
increasingly growed; non-state and private enterprises are proactive to invest in
production and trading, contributing to economic and social development of ethnic
minority and mountainous areas.
2.3.2. Limitations


The first, mechanisms and policies to mobilize investment capital still are
insufficient: we have issued a number of guidelines and policies, including specific
policies, but not strong enough to create an attractive investment environment to
attract investors at home and abroad.

The second, economy and society develop slowly. Interregional and internal
combination is not good.
The third, planning work: residential, urban, towns and townships, transportation,
water resources, mineral resources, mining, hydropower construction, airports,
ports, etc., still reveal many shortcomings.
The fourth, distribution of human resources and combination of programs and
projects is not rally good.
The fifth, organizational structure and staffs working in the field of investment
have man shortcomings.
The sixth, investment management work has been sleckened.
2.3.3. Causes of the limitations
- Objective reasons: (1) The regions have vast area, rugged and complexly
bisected terrain, severe weather , frequently affected by natural disasters, floods,
"double disaster" and Vietnam is considered as one of the five countries affected
most by global climate change. Annual losses are huge and put negative impact on
the life and production of people. After floods, many households have nothing left;
many traffic and irrigation works were destroyed. Every year, Vietnam has about
15-18 small and large storms and losses of 1.5 % of GDP, with almost 1,000 people
were killed. (2) Due to historical factors with low socio-economic starting point,
rag and backward infrastructures that cannot meet the requirements of
development. Quality and educational level of human resources are low. The
majority are agricultural and untrained workers, lack of skilled labor and technical
experts, good managers. This is a huge barrier to economic and social
development; (3) The complicated situation in the world of politics, religion,
ethnicity , climate change, economic crisis, etc., have impacted negatively on the
socio-economic development of minorities in general and the Northen ethic
minority and mountainous region and the Central Highlands in particular .
- Subjective reasons: (1) The coordination between ministries and agencies
from the central to local levels in advising organizations develop and implement

policies is inadequate; the civil service at all levels was heavy and inefficient.
Administrative procedure has improved but is still cumbersome; support measures,
investment incentives are not strong, clear, lack of transparency, promotion of
investment is weak, (2) The loose review, inspection and supervising of the
implementation of plans resulted in the discretion at the local level, the regional
ministries, occuring overlapping phenomena, disrupting regional and territorial
planning, wasting resource development; (3) A part of officials also thought people
are dependent on capital investment from the State, not actively stimulate and
promote the good of the local resources .
2.4. Lessons and the problems of investment capital mobilization at the regions
2.4.1. Experimental lessons of capital mobilization for regional socio-economic
development
Firstly, it is necessary to have participation of all political system and mobilize all
resources into development investment.
Secondly, create general community agreement.
Thirdly, assess properly the situation and determine the location, focuse investment
in key points - such as the poorest and the most difficult communes or districts.
Need to raise capital and invest in the most critical issues.
Forthly, steering and management work of central and local agencies.
Fifthly, practice indicates that we need to build key socio-economic areas and
satellite towns of the mountain areas.
Sixthly, enhance social criticism in all investment processes.
2.4.2. Raising problems
The first cut-off point is the insufficiency in infrastructure and human
resource quality.
The second cut-off point is the absorbability of investment capital.
Thirdly, the regions have important strategic position on economics, politics,
culture, security and defense.
Forthly, enhance the combination between enterprises, locals in the region and

between regions.


Fifthly, it is necessary to research to build key areas, important urban, key
economic regions with appropriate scale and specific policies for each region: The
Northen midland and mountainous region and the Central Highlands.
CHAPTER 3
SOLUTIONS TO MOBILIZE INVESTMENT CAPITAL FOR SOCIOECONOMIC DEPVELOPMENT OF THE NORTHEN MIDLAND AND
MOUNTAINOUS REGION AND CENTRAL HIGHLANDS OF VIETNAM
UPTO 2020
3.1. Opinions and targets of socio-economic development for the Northen midland
and mountainous region and the Central Highlands of Vietnam to 2020
To integrate into the country, the region is interested by the Party and State to
invest to exploit the available potentials of natural resources, socio-culture and
human. It sets out the development opportunities and challenges, the basic and
usually requirements to investment capital mobilization in Vietnam in general and
in the region in particular.
The task of socio-economic development of the Northen midland and mountainous
region and the Central Highlands is entering a period of new strategies in the
context of the world is changing very fast, complexly and unpredictably. Peace,
cooperation and development continue to be the common trend but ethnic
conflicts, religious, resources and territory struggling and terrorism may increase
with other global issues such as poverty, disease, climate change and natural
disasters. The hostile forces in-door and out-door have not lost the plot of peaceful
evolution, causing riots, toppled, using the guise of democracy, human rights,
ethnic, religious to combat revolution and prevent the path to the socialism of
Vietnam.
3.1.1. Opinions and targets of socio-economic development for the Northen
midland and mountainous region to 2020
Strive to maintain a growth rate higher than the general rate of economic

development of the country; markedly and uniform improvement of socioeconomic infrastructure system to better meet the requirements of economic
development, people's livelihood and ensuring national defense and security;
specific objectives for regional development, table 3.1 belows:


Table 3.1. Project to develop the Northen midland and mountainous region upto
2020
Target
Unit
2010 (original)
2015
2020
I. General target
1. GDP (ghh)
Billion VND
142.469
204.800
301.100
- Agricultural, forestry and aquatic products
””
43.453
55.300
65.800
- Industry – Construction
””
47.014
69.800
116.500
- Services
””

52.002


79.700
118.800
2. Increase speed in stage(1)
%
7,5
8,0
- Agricultural, forestry and aquatic products
4,5
4,0
- Industry – Construction
8,3
10,8
- Services
9,2
8,0
3. Economy structure
%
100
100,0
100,0
- Agricultural, forestry and aquatic product
%
30,5
27,0
21,9

- Industry – Construction
%
33,0
34,1
38,7
- Services
%
36,5
38,9
39,4
Source: The author calculates basing on [113], (PL 6.1).
Note: (1) Increase speed in the stages 2011-2015, 2016-2020
3.1.2. Opinions and target of socio-economic development in Central Highlands
upto 2020.
Try to develop society and economy comprehensively, make Highland become the
motivative region of the whole country step by step, increase people’s physical and
spiritual life continuously, protect ecological environment, and ensure national
defense.
The detailed targets are presented in Table 3.2 belows:
Table 3.2. Development project of Central Highlands to 2020
Target
Unit
2010 (original)
2015
2020
1. GDP (ghh)
Billion VND


87.344

127.900
193.800
- Agricultural, forestry and aquatic product
””
44.633
55.770
67.250
- Industry – Construction
””
19.216
37.350
67.830
- Services
””
23.496
34.780
58.720
2. Increase speed in stage(1)
%
7,9
8,7
- Agricultural, forestry and aquatic product
3,8
8,7


- Industry – Construction
14,3
12,7
- Services

9,4
9,8
3. Economy structure
%
100
100,0
100,0
- Agricultural, forestry and aquatic product
%
51,1
43,6
34,7
- Industry – Construction
%
22,0
29,2
35,0
- Services
%
26,9
27,2


30,3
Source: The author calculates basing on [110], (PL 6.2).
Note: (1) Increase speed in the stages 2011-2015, 2016-2020
3.2. Duty of mobilizing socio-economic development investment capital for
midland and mountainous region and Central Highlands of Vietnam upto 2020
Pursuant to opinions and development targets of the Northen midland and
mountainous region to forecast capital demand of the region:

Table 3.3. Prediction of capital demand for the Northen midland and mountainous
region from 2011 to 2020 according to economic sectors
Item
2011-2015
2016 - 2020
2011-2020
Total (Billion VND)
Rate (%)
Total (Billion VND)
Rate (%)
Total (Billion VND)
Rate (%)
Total investment capital
324.483
100
534.640
100
859.123
100


- Agricultural, forestry and aquatic product
37.265
11,5
44.460
8,3
81.725
9,8
- Industry – Construction
114.430

35,3
246.980
46,2
316.410
40,9
- Services
172.778
53,2
243.200
45,5
415.488
49,3
Source: The author calculates basing on (PL 6.1)
Table 3.4. Prediction of capital demand for Central Highlands region from 2011 to
2020 according to economic sectors
Item
2011-2015


2016 - 2020
2011-2020
Total (Billion VND)
Rate (%)
Total (Billion VND)
Total (Billion VND)
Rate (%)
Total investment capital
202.579
100
345.575

100
548.154
100
- Agricultural, forestry and aquatic product
32.085
15,8
49.580
15,2
81.665
15,1
- Industry – Construction
90.670
44,8
158.340


45,0
249.010
45,9
- Services
79.824
39,4
137.655
39,8
217.479
39,0
Source: The author calculates basing on (PL 6.2)
3.3. Solutions for socio-economic development capital mobilization of the Northen
midland and mountainous regions and the Central Highland of Vietnma to 2020
We need to have many goups of solutions with a lot of synchronous

mechanisms to ensure high practicability of solution groups:
3.3.1. Solution group of mobilization mechanisms and policies
- Develop a system of policies on investment: (1) Policy of investment guarantee;
(2) Policy of investment encouragement (sectors, locations, fields, capital sources,
etc.)
- Create a firm macoeconomic and stable development environment (maintain
stable growth economy, ensure a stable macroeconomic environment, stable
currency values, interest rates and maintain the reasonable exchange rate).
3.3.2. Solution group to construct an attractive investment environment
- Develop stable social and political environment: (1) Investment in socioeconomic development encloses with ensuring national security, (2) implement the
policy of ethnic solidarity.
- Build economic centers, industrial zones and urban system satisfying
development demand:


+ Develop economic and urban centers in the Northen midland and mountainous
regions: (1) Build sub-area (North-west, Northeast); (2) Development economic
centers on the corridor system; (3) Develop urban space.
+ Develop economic and urban centers in the Central Highlands: (1) Build subarea (North, Center and South of Central Highlands); (2) Develop urban space.
3.3.3. Solution group of renovating management and administration of government
at all level
- Strengthen the planning of socio-economic development “planning work must
take one step forward": Territorial planning (provincial, regional, inter-regional, the
entire economy); sector planning (each industry, overall economy and society,
residential, urban, land, transport, irrigation, agriculture and forestry production,
etc.).
- Reform administrative procedures in the direction of opened, transparent and
simplified "one door"; establish hot line to recept information relating to the
investment; local leaders work with investors and management board of industrial
zones to solve timely all difficulties within the implementation process of

investment.
- Strengthen investment promotion activities: (1) Increase investment promotion
scale; (2) Improve quality and efficiency of investment promotion work.
- Enhance cooperation, including cooperation between regions and between
localities in the region, between enterprises in all activities: training human
resources, production and business operations, etc., to form chain of links found
between the local development in the region, with each region to meet the
requirements of development cooperation and the assignment of the trend of
integration with the entire economy, the region and the world.
- Innovatate activities of state agencies on investment: (1) Strengthen the
organizational structure of the state agency for investment; (2) Strengthen social
criticism, (3) Strengthen the monitoring role of community about investment, (4)
clearly define personal responsibility, the role of head in investment management.
3.3.4. Solution group of human resource development
- Develop education and training, increase intellectual standards of the people,
train human resources according to the direction of increasing scale and quality of
general education and high education.