Chính sách phát triển thương mại miền núi – nghiên cứu tại một số tỉnh phía bắc việt nam tt tiếng anh

INTRODUCTION
1. Rationale of the thesis
The mountainous regions play an important role in socio- economic terms
as well as safety and defense terms. The Party and Government have deeply care
for these regions, with guidelines, policies to develop the economy of these
regions efficiently. On the base of trade development of mountainous regions
program approved by the Prime Minister, the guideline is “Developing trade of
mountainous regions in order to reduce the gap between regions; contribute
proactively to socio- economic development, increase the people’s income,
ensure the safety and defense in the mountainous regions” has contributed to
trade development of mountainous regions in recent years.
Although the Central and authorities of localities had preferential policies
for trade development of mountainous regions, there have been difficulties and
inefficiency in trade activities. Trade policies of mountainous regions have had
downsides in all stages like formulation, organization, implementation and
examination, supervision of trade policies, such as:
Firstly, although there have been theoretical and practical issues about trade
devlopment polices in area, region, most those policies are for urban areas, key
economic regions. Mountainous areas with geography, culture, custom, purchasing
level, which are all different from other regions and areas, so trade development
policies of these areas are not appropriate with characteristics in the process of
formualtion and implementaion policies.
Secondly, there have been downsides in the process of formualtion and
implementaion policies on trade development of mountainous regions, especially
in stages of implementation and examination, supervision. This can be seen
through the process of information supply, management tools, ability and skills,
interaction level with companies as well as business store has been low. Trade
development of mountainous regions policies have not make use of comparative
advantages of mountainous areas.
Thirdly, Trade development of mountainous regions policies have not met
the demand of business subjects and residents in mountainous areas. Because

mountainous areas have weak, inadequate trade infrastructure, craggy mountains,
limited investment source, it is not convenient for transportation as well as
connecting to politic, economic, trade center of the country; a lack and weakness
of communication system, electricty, water. Most residents are from ethnic
minorities, with a low density level of population, uneven distribution. Living
conditions of ethnic minorities have difficulties, with lower living standards


comapring to other areas, income per capita is really low, areas with the highest
level of poor households in the country.
Fourthly, activities of trade development of mountainous regions in
general and mountainous provinces in particular have not gained the goal of the
State and Trade development Plant in terms of the quantity of business stores,
product quality, trade infrastructure.
Fifthly, Trade development of mountainous regions policies have not led to
the sustainable development. Companies do not really focus on protecting the
environment, especially national forest resources generally and regional forest
resources, which have been diminishing with low level of cover. The amount of
forest losing have been increasing, not decreasing as people burn the forest for
cultivation.
With reasons above, PhD. Student decides to choose the subject of the
doctoral thesis as “Policy on trade development in mountainous regions –
Research in some provinces of Northern Vietnam”. The thesis is essential both
in theoretical and practical terms.
2. Literature overview
The author has generalized domestic and foreign research relating to the
thesis based on two contents: (1) works of research on trade policy, regional
economic development policy, trade infrastructure development policy, (2)
works of research on trade development of mountainous regions policy. On the
base of general research, the author has presented theoretical research

framework of the content of the policy on trade development of mountainous
regions reflecting 6 main policies on trade developement and there is a space in
science, which are:
Firstly, the definition of trade policy or trade development policy have
developed recently, but there has been no complete definition of policy on trade
development of mountainous regions. Therefore, it is necessary to have a
complete definition of policy on trade development of mountainous regions.
Secondly, there is no specific identification for the policy on trade
development in mountainous regions, research model of the policy on trade
development in mountainous regions in terms of the quality of content,
management, effects on the efficiency of policy goals and the development of
quality factors, the efficiency and value of mountainous regions.
Thirdly, research on trade development of mountainous regions policy
in terms of quality, efficiency have not been mentioned with specific criteria.
Fourthly, with policy on trade development of mountainous regions,
there have not research and head - on evaluation of the process of developing


the policy. Factors affecting the policy on trade development of mountainous
regions need to be clarified.
3. Mission, objective of the thesis
3..1. Objective of the thesis
The basic and thorough objective of the thesis is to propose solutions to
complete the policy on trade development of Vietnam’s mountainous regions by
2025 and orientation towards 2030.
3.2. Mission of the thesis
- To systemize and clarify the theoretical basis of the policy on trade
development in mountainous regions.
- To evaluate and clarify practical basis of the policy on trade
development in mountainous regions.

- To study the real situation of the policy on trade development in
mountainous provinces of Northern Vietnam in the connection with the
condition of trade development in mountainous regions.
- To propose solutions for completing the policy on trade development in
mountainous provinces of Northern Vietnam by 2025 and orientation towards
2030.
4. Object and scope of the thesis
4.1. Object of the thesis
The object of the thesis is theoretical and practical issues about the
policy on trade development in mountainous regions in the State management
agencies and local agencies.
4.2. Scope of the thesis
- As for spatial dimension: The thesis focuses on the real situation of
the policy on trade development in mountainous regions of Vietnam in general
and the real situation of the policy on trade development in mountainous
regions of 05 mountainous provinces in particular, which are: Hoa Binh, Lao
Cai, Lai Chau, Son La, Quang Ninh to use the research results for total
mountainous of the country.
- As for time dimension: A research on the policy on trade development in
mountainous regions from 2007 till now.
- As for content: The research is definitions the definition, content,
evaluation criteria and factors affecting to the policy on trade development in
mountainous regions. To evaluate the real situation, PhD. Student have focused
on analyzing 06 basic policies on trade development in mountainous regions,
research in mountainous provinces of Northern Vietnam, which are: Policy on
goods and service development, policy on business development, policy on


market development, policy on trade infrastructure development, policy on
trade development in boundary areas, policy on development of trade human

resource to evaluate the real situation of the policy on trade development in
mountainous regions from 1986 till now.
5. Research question
To achieve the research objectives, the thesis has brought out these
research questions:
Question 1: What is the definition of the policy on trade development in
mountainous regions of Vietnam?
Question 2: What is the content of the policy on trade development in
mountainous regions?
Question 3: What is the real situation of developing trade in
mountainous regions and the policy on trade development in mountainous
regions in recent years?
Question 4: How recent promulgated policies have facilitated and made
difficulties for the trade development in mountainous regions and the causes of
those advantages and limitations?
Question 5: What are necessary viewpoints, orientations and solutions to
complete the policy on trade development in mountainous regions of Vietnam
by 2025, orientation towards 2030?
6. Research method
Qualitative research method and investigation, examination and interview
method have been used in the thesis. Qualitative research was used to systemize
theoretical basis and the real situation of the policy on trade development in
mountainous regions of Vietnam. Investigation, examination and interview
method was used to evaluate the policy on trade development in mountainous
regions based on evaluation criteria.
7. Scientific achievements of thesis
- Theoretical achievements: The thesis has systemized and developed
issues about the policy on trade development in mountainous regions. The
thesis has clarified the intension of definitions of policies on trade development
in mountainous regions, the rule, goal, role and necessity of the policy on trade

development in mountainous regions, has developed research model, evaluation
criteria, evaluated factors affecting to the policy on trade development in
mountainous regions.
The thesis has analyzed and clarified foreign experiences of China and
Thailand on the formulation and implementation policy. Experiences of
countries are lessons for Vietnam to complete the policy on trade development


in mountainous regions in the coming time.
- Practical achievements: On the basis of an the policy on trade
development in mountainous regions, qualitative research method, investigation,
examination and interview method have been used in the thesis to analyze the
real situation of 06 basic policies on trade development in mountainous
regions, the real situation of policy of the Central. The thesis has been
implemented in 05 typical mountainous provinces of Northern Vietnam to
evaluate the policy on trade development in mountainous regions on the base of
evaluation criteria built in the theoretical issues of the thesis. The thesis has
used primary and secondary data to analyzing and evaluating comprehensively
and intensively the real situation of the policy on trade development in
mountainous regions. The thesis has included conclusions and achievements
by researching the real situation, breakthrough issues to complete policies on
trade development in mountainous regions in the coming time; the effect level
of the policy on trade development in mountainous regions on trade
development in mountainous regions; the satisfaction of the current policy on
trade development in mountainous regions. These are important practical
issues to propose solutions for completing the policy.
On the base of theoretical and practical issues, foreign experiences and
forecasts of development, development trend of trade development in
mountainous regions, the thesis has proposed systematically orientations,
opinions, objectives to complete the policy on trade development of

mountainous regions by 2025, orientations towards 2030. Therefore, the
thesis has presented groups of specific solutions based on 06 basic policies
on trade development of mountainous regions to complete the policy on trade
development in mountainous regions of Vietnam.
8. Structure of the thesis
Except for the Introduction, Conclusion, the thesis has 3 chapters, which are:
Chapter 1: Theoretical basis for the policy on trade development in
mountainous regions.
Chapter 2: The real situation of the policy on trade development in
mountainous regions – Research on the real situation in mountainous provinces
of Northern Vietnam.
Chapter 3: Solutions for the completion of the policy on trade
development in mountainous regions by 2025, orientations towards 2030.


Chapter 1
THEORETICAL BASIS FOR THE POLICY ON TRADE
DEVELOPMENT IN MOUNTAINOUS REGIONS
1.1. The basis of trade development of mountainous regions
1.1.1. Mountainous regions and characteristics of mountainous
The thesis has presented typical characteristics of mountainous regions
and differences of mountainous regions in terms of geography, resources,
agriculture, forestry, aquaculture, literacy, science and technology.
1.1.2. Trade of mountainous regions
The thesis has presented definitions of trade in academic terms, in
narrow meaning, according to Trade Law in 2005. On the base of the definition
of trade, PhD. Student has presented the definition of trade in mountainous
regions: “Trade in mountainous regions is a part of trade activities and aims at
making profits in mountainous regions, including of goods purchasing
activities, service supply, investment, trade promotion, trade manufacture,

auction, bid for goods and service. Besides, in mountainous regions with
boundaries, trade in mountainous regions includes other activities such as:
Official trade, border trade and purchasing activities of the people of the two
countries along with the border in order to make profits”.
1.1.3. Trade development of mountainous regions
The thesis has presented opinions about development on the base of the
definition of trade of mountainous regions, the thesis has presented the
definition of trade development of mountainous regions: “Trade development
of mountainous regions is a continuous expansion in terms of scale,
synchronization and structural improvement, increasing pace and the quality of
growth, the total circulation of retail sales and consumption service revenue of
mountainous regions. It has a reasonable and effective trade structure that
ensures stable, continuous and sustainable development, exploits the
comparative advantages of trade resources to promote sustainable socioeconomic development of mountainous regions. Regarding to mountainous
regions with borders, the trade development does not only aim at developing
the exchange and trading of products and goods within the province, between
provinces in the country and with foreign countries but it also increases trading
activities, exchange of goods of border residents, cross-border import and
export activities and trading activities in border markets. "


1.2. The policy on trade development in mountainous regions
1.2.1. The definition of policy on trade development in mountainous regions
1.2.1.1. Policy
The thesis has presented definitions of the policy and the approaching
methods of definitions of policy in terms of juridical science, classification of
the system of economic policies based on different criteria.
1.2.1.2. The trade policy of mountainous regions
The thesis has presented the definition of the trade policy by different
approaching methods in terms of theory, practice, broad meaning, narrow

meaning. Therefore, the definition of the policy on trade development in
mountainous regions:“ The policy on trade development in mountainous
regions is the system of guidelines, principles, regulations, appropriate tools
and measures that the State (central and local) selects to regulate trade
activities in mountainous regions in a certain period to encourage, affect to
trade activities in mountainous regions to achieve the goals and narrow the
gap between regions; to contribute positively to socio-economic development,
to raise people's incomes and ensure safety and defense in mountainous areas.”
1.2.1.3. The policy on trade development of mountainous regions
The thesis has been based on the definition of trade policy and trade
policy in mountainous regions to look out and analyze the policy on trade
development. Yet the definition needs to have basic contents:
- Who is the subject of the policy?
- Who is the object of the policy?
- What is the objective of the policy?
- How does the policy affect to its object to achieve its objectives?
From connotations of the policy on trade development of mountainous
regions, the thesis has presented the definition “the policy on trade development in
mountainous regions is the trade policy including the whole of guidelines,
principles, regulations, appropriate tools and measures that the State chooses to
support, encourage and promote trade development in mountainous regions to
achieve objectives in national socio- economic development strategy”.
1.2.2. The necessity and roles of the policy on trade development in
mountainous regions
1.2.2.1. The necessity of policy on trade development in mountainous regions
The mountainous regions of the country is a huge area, complex
geography, difficult transport, sparse population; various potentials, advantages
to develop economy. However, current socio- economic conditions of
mountainous regions, comparing to those of the whole country have limitations.

Therefore, the thesis has presented four reasons for the need of the policy on
trade development in mountainous regions of Vietnam.
1.2.2.2. Roles of the policy on trade development in mountainous regions
The policy has presented roles of the policy on trade development in
mountainous regions, which are: the policy on trade development in
mountainous regions is the part of socio- economic policy; is one of factors
composing regional socio- economic strategy affects the circulation of goods in
mountainous regions, other regions and for export; contributes to national
industrialization and modernization; boosts the shift of economic structure;
exploitation potentials and comparative advantage of each area.
1.2.3. Principles and objectives of the policy on trade development in
mountainous regions
1.2.3.1. Principles of the policy on trade development in mountainous regions
Principles of the policy on trade development in mountainous regions
are reviewing the policy on trade development in mountainous regions from
different aspects, identifying strengths and weaknesses of that policy for trade
development of mountainous regions.
1.2.3.2. Objectives of the policy on trade development in mountainous regions
Objectives of the policy on trade development in mountainous regions
depend on subjects enacting the policy who is the State in the Central or local
authority. The State promulgates general policy, the local authority specifies
policies to suitable for its locality, area.
1.2.4. Main policies on trade development in mountainous regions
The thesis has presented 06 policies on trade development of
mountainous regions including: The policy on goods and service development;
the policy on trader development; the policy on market development; the policy
on trade infrastructure development; the policy on border trade development;
the policy on trade human resource. The thesis has presented definitions,
objectives, content of each policy.

1.2.5. Criteria for evaluating the policy on trade development in mountainous
regions
Criteria are the norms, signs that serve as the basis for identifying,
classifying a phenomenon. Criteria for evaluating the completeness of policies
on trade development in mountainous regions are indicators and norms in order
to identify and assess the level of improvement of these policies as good or bad,
pass or fail. Determining criteria for evaluating the level of the policy on trade
development in mountainous regions is very important both in theory and
practice to improve the policy system of the State for trade development of
mountainous regions in the current time. In the content of the thesis, PhD.
Student has presented 5 criteria, including: criteria for appropriateness of


policy; Criteria on the validity of the policy; Criteria on the appropracy of the
policy; criteria of fairness of the policy; Criteria for transparency and stability.
1.3. Factors affecting to the policy on trade development of mountainous
regions
1.3.1. External factors
The thesis has presented internal factors affecting to the policy on trade
development in mountainous regions including: International context; Socioeconomic condition of mountainous areas; trade mechanism; science and
technology development.
1.3.2. Internal factors
The thesis has presented internal factors affecting to the policy on trade
development in mountainous regions including: The awareness, viewpoints and
capacity of policy makers and the implementation; the expenditure of
formulating and implementing the policy; factors relating to companies and
customers; the cooperation between mountainous provinces.
1.4. Facts of the policy on trade development in mountainous regions of
some countries and learned lessons for Vietnam
1.4.1. Facts of policy on trade development in

mountainous regions of countries
a) Facts of China
While researching on China’s experiences of the policy on trade
development in mountainous regions, the thesis has presented experiences of
the policy on trade infrastructure; sustainable development; goods and service
development in the direction of “ Special Economy”; development of human
resource; border trade development of China.
b) Facts of Thailand
The thesis has presented experiences of the policy on trade infrastructure;
goods and service development; Thailand market development.
1.4.2. Learned lessons for Vietnam
Through research on trade development policy in mountainous regions of
countries like China, Thailand, the author has gained lessons, which are: (1)
Extending autonomy for the governments of mountainous localities; (2)Focusing
on developing socio- economic infrastructure of mountainous region; (3)Specially
focusing on developing advantageous products of mountainous regions; (4)
Focusing on expanding and developing the mountainous market; (5) Focusing on
developing human resources for trade of mountainous regions; (6) Enhancing the
support policy on finance; (7) Creating jobs for people, especially ethnic
minorities.


Chapter 2
REAL SITUATION OF THE POLICY ON TRADE
DEVELOPMENT OF MOUNTAINOUS REGIONS – RESEARCH
ON REAL SITUATION IN SOME NORTHERN MOUNTAINOUS
PROVINCES
2.1. General real situation of trade development in some
Northern mountainous provinces
2.1.1. Socio- economic characteristics of

Northern
mountainous provinces
To develop the right development policy, which is appropriate with
Northern mountainous provinces, the first thing needed to understand is
characteristics of this area (natural condition, economic characteristic,
population, culture, society). It is the base for developing trade in mountainous
areas.
2.1.2. General situation of economic development in
some Northern mountainous provinces
The economic situation of some Northern mountainous provinces has
been better with significant changes, gained achievements. However,
comparing to the requirements and potentials, there have been difficulties and
weaknesses. The thesis has generalized the situation of economic development
of Northern mountainous provinces shown by basic economic criteria,
specifically: economic structure in basic industries; in industrial and
construction area; in agriculture area; in trade service area.
The thesis has presented main challenges which are: Most of Northern
mountainous provinces are poor provinces; industry has small scale; agriculture
is divided into household, backward technique are mostly used; the income and
lives of residents in Northern mountainous provinces are still low.
The reason of the above situation is unfavorable geographical condition,
weak investment in infrastructure, training of human resource; low literacy
indexes, agricultural and forestry techniques are generally backward, cultivation,
burning forest for cultivation, monoculture and extensive cultivation are still
common in highland communes.
2.1.3. Real situation of trade development of Northern mountainous
provinces
2.1.3.1. Real situation of the total sales of goods and service

The total retail sales of goods and the revenue of social consumption
service of Northern mountainous provinces have been growing sharply, GDP in
total and its structure have changed significantly. Types of services have
developed dramatically, especially business service in border provinces. The
market system has developed diversely, infrastructure have been upgraded;
mentally and cultural life have been improved; the face of mountainous rural
regions have changed. Economic and trade exchange have contributed to
promote culture and art exchange, service and tourism development.
Trade of State has implemented the supply of policy goods to ethnic
minorities. With more than 75% of commune groups having state-owned sales
points (including agents), over the past few years, state subsidies on some essential
commodities have contributed significantly to stabilize the market, improve lives
of ethnic minorities. Private trade has developed rapidly and increasingly taken a
high share in retail, contributing to the rich, lively market. Recent statistics show
that there are currently 1,859,218 non-agricultural individual businesses operating
in highland and mountainous provinces. Total retail sales of goods and services in
the highland and mountainous provinces in the past five years was over 280,000
billion VND per year (an average increase of 19.35% per year).
2.1.3.2. Real situation of export and import turnover
In recent years, the import and export activities of mountainous and
highland provinces, especially provinces having borders with China, Laos and
Cambodia, have been strongly increased in both forms, turnover and
commodities. Out of the total of 43 border gates(with 8 international border
gates, 19 national border gates and 16 non-quota border gates), more than 80%
of border gates are located in northern mountainous provinces, with 7 out of 8
are international border gates and 7/19 border gates are applied preferential
policies. The real situation of import and export turnover is shown in Table 2.3.
Table 2.3: Export and import turnover of trade goods and service
The country
Mountain regions

Proportion (%)
Mountainous regions
Proportion (%)
Areas including
mountainous regions
Proportion (%)

2013
58.453,8
3.098,1
5,3
2.805,8
4,8
5.436,2

2014
69.208,2
3.737,2
5,4
3.252,8
4,7
6.021,1

2015
84.717,3
3.896,9
4,6
3.642,8
4,3
7.116,3

9,3

8,7

8,4

(Unit: million USD)
2016
99.056
4.457,5
4,5
4.358,5
4,4
8.518,8
8,6

Source: The author analyzes from annual abstracts of statistics in 2013-2016
2.1.3.3. Real situation of trade infrastructure


Besides types of trade infrastructure, market is considered to be an
important parts of trade network in every areas, localities, especially
mountainous provinces. Although more than 60% of commune groups had
markets, yet in general in mountainous regions, market network is sparse with
small scale, poor facilities.
2.2. Analysis of the real situation of the policy on trade development of
mountainous regions in provinces of Northern Vietnam
2.2.1. Real situation of the policy on goods and service development
2.2.1.1. Policy of the Central

The thesis has presented the real situation of policies on goods and
service development in provinces of Northern Vietnam. Relating the circulation
of goods and service supply, Northern provinces have advantages. Relating
regulations of production and business; relating science and technology support
to develop the circulation of goods and service supply for mountainous areas.
2.2.1.2. Policy of localities
The thesis has presented the real situation of policies on goods and
service development in provinces, namely: Hoa Binh, Son La, Lai Chau in
terms of the total retail sales of goods and service, import and export turnover,
the circulation of commodities and service that have andvantages.
2.2.1.3. Results of implementing the policy on goods and service development
in Northern mountainous provinces
Based on the policy on goods and service development of the Central
and localities, the thesis has presented the results obtained from the
implementation of the policy on major commodities development of Northern
mountainous provinces. In fact, many products of northern mountainous
provinces have been expanded and penetrated more deeply in the domestic and
international markets. Northern mountainous provinces with products which are
mainly products from cultivation and products from animal husbandry. Products
from cultivation are mainly rice, cassava, fruit trees, tea, vegetables; Products
from animal husbandry are mainly cattle, poultry, seafood and products
processed from cattle and poultry. Product from cultivation has the most
important task for the food security of the whole region.
In 2011- 2017 period, total retail sales of goods and services in Northern
mountainous provinces increased by VND 68 trillion, from VND 46,866.3
billion in 2011 to VND115,635 , 8 billion in 2017, with an average annual
increase of 11,500 billion. Total retail sales of goods and services of
mountainous provinces in the North have had a relatively stable increase, the
2013-2014 period has the highest level of increase of nearly VND 14 trillion.
The 2015-2016 period has the lowest, with just over 10 trillion dong.

In 2011- 2017 period, export and service turnover of Northern
mountainous provinces increased by 22 million USD. In 2011- 2017 period,
from 7806, 9 million USD in 2011 to 10002, 68 million USD in 2017, with the
unstable increase through years. The total export and service turnover of
Northern mountainous provinces in general was unstable, with a sharp increase
in 2016 and 2017. In 2011- 2017 period, the total export and service turnover of
Northern mountainous provinces increased by 1300 million USD, from 4450,1
million USD in 2011 to 5761,71 million USD in 2017, with uneven increase in
every years, the highest level increase was in 2013 with the total import
turnover reached 8889,25 million USD.
2.2.2. Real situation of the policy on trader development
2.2.2.1. Policy of the Central
The thesis has presented the real situation of the policy on trader
development of the Central such as: Developing retail trade companies,
developing wholesale trade companies; developing stores; developing the State
trade; The People of Committee of trade; private trade and policies support
traders in terms of land, science and technology, finance.
2.2.2.2. Policy of localities
The thesis has presented the real situation of the policy on trader
development in Northern mountainous regions such as: Hoa Binh, Lai Chau,
Quang Ninh and pointed out clearly objectives of trader development in each
policy of each locality.
2.2.2.3. Results of implementing the policy on traders development in Northern
mountainous provinces
From the implementation of the policy on traders development of the
Central and localities, the thesis has presented the results of trader development in
northern mountainous provinces. The secondary data and the research results of
primary data show that the number of traders has doubled in northern mountainous

provinces in 2011-2017 period and has steadily increased over the years.
The current policy has shown the idea of encouraging traders from all
economic sectors to participate in trade activities, contributing to the process
of developing the economy of mountainous regions. Besides advances such as
the number of traders, the scale of operations has developed. However, the
overview of traders in mountainous regions as they are not yet strong and has
not had a positive and clear impact on the expansion of domestic and
international goods exchange, thus contributing to the economic restructure,
development of production, improvement of living standards of the people in
mountainous regions.
2.2.3. Real situation of the policy on market development
2.2.3.1. Policy of the Central


The policy has presented the real situation of the policy on market
development of the Central , with specific objectives such as: to complete
mechanism appropriate with market economy mechanism in line with republic
society; to develop mountainous market more and more broad, to proactively
join in fast development of domestic and foreign markets; to develop the
diversity of market support activities; to build information supply system, to
forecast the market for companies; to develop trade promotion activities in line
with aimed market development, key market and market for important sectors
of goods of mountainous market.
2.2.3.2. Policy of localities
The thesis has presented the real situation of the policy on market
development in Northern provinces such as: Son La, Lai Chau, Quang Ninh and
objectives of each province to develop its market.
2.2.3.3. Results of implementing the policy on market development in Northern
mountainous provinces
The thesis has presented the results of the policy on market development

of the Central and localities, as this policy has increased the volume of goods,
the supply for the market, some types of goods have strengths that increase
rapidly, prices of industrial crops accounts for 36.99% and fruit trees accounts
for 26.26%. The market of mountainous regions has changed fundamentally,
moving from the close, separated state to the state of free for circulation in
accordance with the law; transferring the purchase and sale of goods from the
mechanism of subsidy, heavy calculation "allocation, delivery" to buy and sell
under the market mechanism. Trade promotion activities have been effective,
the number of seminars together with trade fairs has been increasing. Trade
promotion activities has attracted companies and organizations of all domestic
and foreign economic sectors to participate.
2.2.4. The real situation of the policy on trade infrastructure development
2.2.4.1. Policy of the Central
The thesis has presented the real situation of policies on trade
infrastrucutre development of the Central with objectives to encourage
investment and the policy on supporting capital from the State Budget. Besides,
the State has had the policy on calling for investment capital from social
sources to develop trade infrastructure in mountainous regions.
2.2.4.2. Policy of localities
The thesis has presented the real situation of policies in Northern
provinces such as: Hoa Binh, Lai Chau, Quang Ninh on trade infrastructure
development with objectives to develop retail and wholesale infrastructure,
types of stores, goods warehouses that are appropriate with conditions of every
localities.


2.2.4.3. Results of implementing the policy on trade infrastructure development
in Northern mountainous provinces
Based on the policy on trade infrastructure development of the Central
and localities in Northern mountainous provinces, the thesis has presented the

results obtained from the policy on trade infrastructure development in
mountainous regions. From the secondary data and the research results of
primary data shows that the number of upgraded markets and new markets have
increased, trade centers and supermarkets have developed but not much, the
scale is small, professionalism, efficiency is not high, are not attracted the social
resources to invest in developing trade infrastructure. Therefore, it can be seen
that the Central and localities have policies to encourage and attract investment
in trade infrastructure but there is still limitations.
2.2.5. The real situation of the policy on the border trade development
2.2.5.1. Policy of the Central
The thesis has presented the real situation of the policy on the border trade
development with main objectives in terms of: opening and managing border
checkpoint, border trade goods; business objects; main preferential policies; the
quality of export and import goods; foreign currency management and payment
in border trade.
2.2.5.2. Policy of localities
The thesis has presented the real situation of the policy on the border
trade development in Northern provinces such as: Lai Chau, Lao Cai, Quang
Ninh with specific objectives, which are: to promote to build border economic
areas; to focus on build border markets, markets in border economic areas; to
allocate warehouses, service for goods import and export, entertainment and to
apply tax- suspension mechanism.
2.2.5.3. Results of implementing the policy on the development of border trade
in Northern mountainous provinces
From the the policy on the development of border trade of the Central
and localities, the thesis has presented achieved results of border trade between
Vietnam- China accounts for averagely about 38% in the total trade turnover of
Vietnam- China. The border of Vietnam and Lao has the total trade turnover at
border checkpoints in 2011-2016 period reached over 17,8 billion USD with the
pace of 12,6% per year. Therefore, the thesis has analyzed, evaluated border

trade in recent years, as it basically has maintained the average growth rate.
This is such a “leverage” to promote socio- economic development, safety and
defense, plays an important role in attracting investment in mountainous, border
areas. However, the management of border trade activities has had limitations
that has not been equivalent to the potentials.


2.2.6. The real situation of the policy on the development of trade human
resource
2.2.6.1. Policy of the Central
The thesis has presented the real situation of the policy on the
development of trade human resource of the Central with main objectives such
as: Focusing on developing and improving the quality, the efficiency of
education and training to improve the quality of trade human resource of
localities. Annually, the budget will be allocated to ensure the upgrading of
technical facilities and training capacity for universities such as Tay Bac
University, Thai Nguyen University, Hung Vuong University (Phu Tho) and
colleges and vocational training localities in mountainous regions, renovating
the training structure according to market demand; prioritizing the training of
on-the-spot cadres, ethnic minority cadres of localities, to implement a policy of
attracting talents and high-level technical workers in the trade industry to work
in mountainous provinces in the long run and at the same time speeding up the
training of on-the-spot trade human resources in line with the pace of trade
development of the mountainous regions.
2.2.6.2. Loal policy
The thesis has performed the real situation of the policy on the
development of trade human resource in Northern provinces such as: Hoa Binh,
Lao Cai, Quang Ninh with specific objectives which are: attracting and
facilitating trade companies and trained workers in the regional areas;
encouraging the development and the diversity of vocational trainings,

expanding vocational training by: recruitment, training and use effectively trade
management officers of the State, supporting proactively trade companies in
terms of training for the development of trade human resource.
2.2.6.3. Results of implementing the policy on border trade development in
Northern mountainous provinces
From the real situation of policies of the central and local levels on trade
human resource development, the thesis has presented results obtained from the
development of trade human resources including trade human resources for
Northern mountainous provinces, which have developed, the education,
vocational training, network of training localities have increased rapidly. In the
school year 2016 - 2017, the number of high school graduated students in all
provinces was high, with the rate of over 95%; the number of students enrolled


full-time program of nationwide universities and colleges has increased by an
average of 25% per year. Vocational training for workers has been concerned
and has developed. The rate of trained labor in 2017 of the whole region was
32.49% (reaching 25 - 30% of the target in the Resolution 37-NQ/TW), of
which 25% was workers learned at vocational training, increasing by 12%
compared to 2015. The number and income of labor in trade companies have
increased over the years. Therefore, the policy on the development of trade
human resources of the central and local has initially been effective.
2.3. Evaluation of the policy on trade development in
mountainous regions based on policy criteria
2.3.1. Appropriacy of the policy
Based on the real situation of the policy on trade development in
mountainous regions and secondary data and the research results of primary
data, the thesis has evaluated the majority of current policies on trade
development in mountainous regions are relatively appropriate. However, some
policies have not fully exploited the advantages of the mountainous areas.

2.3.2. Validity of the policy
The thesis has evaluated the effectiveness of the policy on trade
development in mountainous regions. In fact, most of the policies have high
effectiveness and many policies on trade development in mountainous regions
have been implemented, many policies have been developed and contributed to
initial trade promotion in mountainous regions though the pace was slow, with
little impact on implementation.
2.3.3. Efficiency of the policy
On the base of practical policies of the Central and provinces, results of
secondary data research, the efficiency level of the policy on trade development
in mountainous regions has been evaluated as not high, and policy objectives
have not been completed.
2.3.4. Fairness of the policy
On the base of secondary data and results of secondary data research
about the fairness of the policy, the thesis has evaluated the policy on trade
development in mountainous regions, then there have been different priorities
for different subjects, especially trade companies of the State, big trade
companies. Small companies and households have had difficulties while
approaching and applying the policy on trade development in mountainous
regions.
2.3.5. Transparency and stability of the policy
The thesis has presented foundation, analysis and evaluation of the
policy and the declaration of objectives of policies in documents that are wrong


and intransparent, unstable in terms of applying policies. The State authorities
have had limitations in declaring the process of promulgation and
implementation policies among the State, companies and consumers or
individuals, organizations in mountainous areas, as it was intransparent and
unstable.

2.4. Advantages, limitations and causes of limitations
2.4.1. Main advantages
The policy on trade development in mountainous regions has promoted
diverse trade activities in Northern mountainous regions, modern trade patterns
have developed together with traditional trade, which have attracted more
economic elements to join in, the living standard of the people of ethnic
minorities has been improved, the demand for consumption and service have
increased as a foundation for promoting turnover of goods and services in
mountainous areas.
2.4.2. Limitations and causes of limitations
2.4.2.1. Limitations
The scale of trade in mountainous regions is still small, the growth rate
of trade and the competitiveness level of mountainous provinces is still low;
trade in mountainous regions have not created a breakthrough for economic
development; trend forecasts, forecasts of worldwide and domestic conditions
have not been true.
Thinking of the policy on trade development in mountainous regions has
not been attached to the strategic vision of socio- economic development of the
area, a lack of regional planning; the policy on trade development in
mountainous regions has not been designed in combination with other policies
so it has been dispersed and not effective; the policy on trade development in
mountainous regions has not exploited well the opportunities and well-tackled
challenges from integration, heavy border exploitation; no regional products
and services, no clear regional trade infrastructure; there are no economic
management mechanisms and the pattern of regional trade management of the
policy on trade development in mountainous regions has not been in line with
the vision of socio- economic development strategy.
2.4.2.2. Causes of limitations
Based on achieved results, the policy on trade development in
mountainous regions need a focus of the State; there is a lack of legal

regulations; mountainous regions are poor regions with the small scale of
economy, GDP per capita is still low; the efficiency level of economic activities
is not high; the inability to self-balance state budget revenues and
expenditures); The economic potential is still limited, the level of economic
development, labor productivity, quality and efficiency of production and


business, material facilities are backward; The capacity for planning and
organizing trade policy implementation in mountainous regions has not changed
significantly.

Chapter 3
SOLUTIONS FOR COMPLETING THE POLICY ON TRADE
DEVELOPMENT IN MOUNTAINOUS REGIONS BY 2025,
ORIENTATION TOWARDS 2030
3.1. International and domestic context affecting the completion of the
policy on trade development in mountainous regions of Vietnam
3.1.1 Advantages
The thesis has presented advantages of international and domestic
context affecting the completion of the policy on trade development in
mountainous regions of Vietnam such as: the growth rate of economy has been
higher than previous ones; the stability of politics; progresses in the socioeconomic development of mountainous region.
3.1.2 Difficulties
The thesis has presented advantages of international and domestic
context affecting the policy on trade development in mountainous regions such
as: difficulties, challenges while joining in FTA; the low starting point of
mountainous regions; the weakness and deficiency of trade infrastructure in
mountainous regions; the average- quality of human resources; the qualification
skills of managers have not met the demand of new context.
3.2. Opinions, objective and orientation to complete the policy on trade

development in mountainous regions of Vietnam by 2025, orientation
towards 2030
3.2.1. Forecasts of the policy on trade development in mountainous regions
of Vietnam by 2025, orientation towards 2030
The thesis has presented forecasts of the speed of growth of goods and
service in mountainous areas; the development in terms of quality and quantity
of traders; The higher level of competitions in mountainous trade market,
supply and demand activities, market regulation will be better and more
modern; the structure of trade infrastructure will be more modern and civilized,
quality business patterns such as trade centers, supermarkets and self- help
stores, fairs- exhibitions, goods transaction centers have developed.


3.2.2. Opinion on completing the policy on trade development in
mountainous regions of Vietnam by 2025, orientation towards 2030
The policy on trade development in mountainous regions must attach
closely to opinions, guidelines, policies of the Party on socio- economic
development in mountainous regions; to the Master plan of socio- economic
development of the Northern midland and mountainous areas; to potential
conditions of mountainous areas and the trend, agreements of integration which
are united to the national trade policy and shows the typical characteristics of
mountainous regions.
3.2.3. Objectives of completing the policy on trade development in
mountainous regions of Vietnam by 2025, orientation towards 2030
3.2.3.1. General objective
The policy on trade development in mountainous regions aims at
developing trade in mountainous regions more modern, decreasing the gap
between regions; contributing to socio- economic development, increasing the
income of the people, ensuring safety and defense in mountainous regions.
3.2.3.2. Specific objective

To reach the annual growth rate of value of total retail goods and service
in mountainous regions by 2025 as 10-12 %. To develop products, goods with
brands as specialty, potential and strength of the mountainous regions to be sold
in markets, supermarkets, trade centers in the country and for export.
To develop human resources of trade management in the area then to
ensure 100% trade managers are trained for skills, profession to develop trade
in mountainous regions. The number of quality traders, companies from all
elements of economy joining in trade activities in mountainous regions
increases from 8-10% by 2025.
3.2.4. Orientation to complete the policy on trade development in
mountainous regions of Vietnam by 2025, orientations toward 2030
The thesis has presented the orientation to complete the policy on trade
development in mountainous regions with the focus on some policies, which
are: orientation to complete the policy on goods and service of industries like:
agriculture, forestry, aquaculture, goods for consumption; orientation to develop
traders and retailers, wholesale companies; orientation to urban market, rural
market, orientation to complete the policy on border trade development.
3.3. Basic solutions for complete the main policies on trade development in
mountainous regions of Vietnam by 2025, orientations toward 2030


3.3.1. General solutions
As for the Central: On the basis of the master plan for socio-economic
development of each region (the northern midland and mountainous areas, the
Central Highlands, the North Central and the South West), the land use
planning, development planning needs to have a plan to develop a master plan
of trade development in mountainous regions in 2020- 2025 period, orientation
towards 2030. It is also needed to check and eliminate overlapping policies that
are inconsistent with international commitments. At the same time, propaganda
and dissemination to companies in order to have a comprehensive awareness on

the opportunities and challenges of international integration.
As for the locality: On the basis of the planning of wholesale and retail
network; the planning of developing exhibitions; trade promotion centers;
warehouses; bonded warehouses of mountainous regions approved by the State
and urgently examine, evaluate, amend and supplement for the suitability for
current conditions.
3.3.2. Specific solutions
3.3.2.1. Solutions for completing the policy on goods and service development
The thesis has included solutions, which are: to develop the support
policy on the market information and trade promotion, geographical direction
of agricultural products having strengths, to increase the efficiency of forecasts
for the supply and demand, the price of goods and service, to improve
management capacity of goods flow as well as the demand of companies and
producers, especially farmers in terms of orienting production; to promote the
application of science and technology, especially biotechnology to the process
of goods flow; the strong shift of goods structure in association with bringing
into full play the advantages and strengths of each locality and the consumption
market; to adopt policies to support companies in developing circulation of new
products at levels equivalent to the annual State budget allocations for scientific
research; to strengthen the cooperation between mountainous provinces and
domestic and foreign scientific research institutions.
3.3.2.2. Solutions for completing the policy on trader development
It is necessary to review, amend and supply policies to encourage, attract
and facilitate traders to join in business activities in mountainous areas; to
develop mechanism, policy on encouraging, attracting traders in plains to join
in trade activities in mountainous regions such as business space, business
location to create favorable conditions for traders to build up trade centers,
warehouses, preservation and preliminary processing and processing products;

to focus on boosting the production development so as to shift the economic
structure of the mountainous regions towards commodity production; to
develop industries, trade and services for production activities in mountainous
areas, to create conditions for expanding the market capacity with increasingly
diversified demands; To shift the structure of labor from upland agriculture to
non-agricultural ones, to create on- spot jobs, to increase incomes and purchase
level of the people. That is the premise and the material basis for the
development of traders.
3.3.2.3. Solutions for completing the policy on market development
It is necessary to formulate and re- structure industries, producing fields
to have areas specialized in forest, agricultural goods production in large scale
for market supply and meeting the demand for on- spot production and
consumption as well as supplying for domestic market and producing activities;
to reorganize the system of the State trade companies in provinces in the
direction that the State trade companies play the key role in controlling the
market for a number of important commodities and materials such as petrol,
fertilizer, cement, steel, chemicals; to make good links between producers and
traders in the consumption of agricultural products and supplies of production;
to adjust, rearrange and upgrade traditional trade networks suitable for the
population's consumption; to strengthen the economic and trade cooperation
between the provinces of mountainous areas.
3.3.2.4. Solutions for completing the policy on trade infrastructure development
Referring to trade infrastructure, it is needed to improve the formulation
of trade infrastructure development in mountainous regions; to manage source
of investment land for trade infrastructure to meet the current demand for the
suitability for the increase of investment plans and the expansion of types of
future trade infrastructure in terms of scale; to promote the socialization of trade
infrastructure development, to contribute to call for and use efficiently sources
that are not in the Budget like social source; to encourage credit organizations
to join with companies or ensure the credit investment in the system of trade

infrastructure in the mountainous regions; to make an item list including trade
infrastructure in mountainous regions applied investment preferential policy.
3.3.2.5. Solutions for completing the policy on border trade development
The thesis has presented solutions for export of goods with advantages
of mountainous regions; it is necessary to classify types of border checkpoint
for the human, transportation or goods, import- export goods to rank the
management level among the Government, ministries, industries, and the
People Committees of border provinces; it is needed to improve the efficiency


of warehouses, yards, processing, packing, forwarding and transportation of
border areas; support services to carry out administrative procedures, support
the export of goods have strengths; To train and foster the development of the
State officers personnel and companies engaged in border trading activities in a
professional, quality and effective way.
3.3.2.6. Solutions for completing the policy on trade human resource
development
The thesis has presented solutions for encouraging, attracting
businessmen, managers and trade labor in terms of training and trade activities
in mountainous provinces of Northern Vietnam. The thesis has developed
mechanism, encouraged for the development of vocational training and
expanded training in appropriate patterns. It is necessary to rank and have
training plan suitable for the qualification and age of employees in terms of
retrain management personnel and employees in markets, supermarkets and
trade centers. It is needed to focus on profession training so that officer
personnel, technical workers, skilled employees that are able to use competently
means of technology and technique, especially those in modern trade center.
3.3.2.7. Other solutions
The thesis has presented other solutions including: Communication
promotion, policy propaganda of the State for businessmen, support for

training for improvement of the professional to enhance the awareness and the
policy obedience of businessmen in business activities to improve the efficiency
of the State management in trade, complete the organizing structure of the
authority responsible for trade management at all levels; Increase education and
training programs for trade managers of the State; Improving skills, capacity of
employees, officers while formulating and implementing the policy on trade
development.
3.4. Conditions for the implementation of solutions
3.4.1. As the State and related Ministries
The State and related Ministries should continue to complete, develop and
regulate the system of synchronous, sustainable, long lasted policies on trade
development in mountainous regions which are appropriate with the typical
characteristics of mountainous regions. The system of policies on trade
development in mountainous regions needs to be brought out quickly, timely
adequately, which relates to aspects such as the total goods retail and the service
revenue, export and import turnover, trade infrastructure in mountainous regions,
border trade, and trade in mountainous regions.
3.4.2. As trade companies


Trade companies should pay more focus on policies of the State; on
training, specialized skills improvement to meet the demand for company
development and international economic integration, including: company
management training, supply chain management, logistics center management
and the training of skilled, professional employees in trade business.
CONCLUSION
The policy on trade development in general and the policy on trade
development in mountainous regions in particular play an important role in
socio – economic development in the direction of industrialization,
modernization. In the context of the increasing integration, trade has had more

and more important position in the national economy. Joining in international
trade agreement not only brings significant chances for the trade of Vietnam to
develop, integrate into international economy but also requires solutions for
emergent problems which are limitations of the national economy. The policy
on trade development in mountainous regions is the important factor in the
promotion of agricultural and mountainous rural areas structure transfer; the
encouragement of developing goods production with the joint of economic
elements; the solution for employment, income and the material, spiritual life of
the people; ensuring safety and defense, enhancing foreign affairs with
neighboring countries in general and mountainous, boundary regions in
particular.
The thesis has generalized research relating to the policy on trade
development in mountainous regions, then identified the research direction of
the thesis. Besides, the thesis has systemized theoretical issues about the policy
on trade development in mountainous regions and presented six partial policies
to develop trade in mountainous regions. The thesis has also developed
evaluation criteria and factors affecting to the policy on trade development in
mountainous regions.
Moreover, the thesis has analyzed the real situation of the policy on trade
development in mountainous regions through typical research in Northern
provinces of Vietnam and evaluated the real situation of the policy on trade
development in mountainous regions of Vietnam. To gain the research goal, the
thesis has included forecasts for environmental and trade change in mountainous
regions in the coming time, proposed systematically orientations, opinions,
objectives to complete the policy on trade development in mountainous regions
by 2025 and orientation towards 2030. Therefore, specific groups of solutions
have been presented based on policies mainly for completing the policy on trade


development in mountainous regions of Vietnam.

With the above content, the thesis basically has answered research
questions and gained the research goal. The author hopes to receive
contribution opinions of scientists, managers, experts for the better thesis.