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MINISTRY OF PLANNING
MINISTRY OF EDUCATION
AND INVESTMENT
AND TRAINING
CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT

LE HONG GIANG

INNOVATING THE MODEL OF ECONOMIC ZONE DEVELOPMENT IN
THE QUANG NINH PROVINCE
DURING INTERNATIONAL ECONOMIC INTEGRATION

Major: Economic development
Code: 9 31 01 05

SUMMARY OF DOCTORAL THESIS

HANOI - 2019


The thesis is accomplished in
Central Institute for Economic Management

Supervisors:
1. Dr. Tran Kim Hao
2. Dr. Nguyen Trong Len

Reviewer 1: Assoc. Prof., Dr. Bui Tat Thang
Reviewer 2 Assoc. Prof., Dr. Dan Duc Hiep
Reviewer 3: Dr. Dang Duc Dam


The thesis will be reported in the Institute of Thesis meeting at the Central
Institute for Economic Management at the time ... .. ... day ... month ... year
2019

The thesis is available at:
- Library of Central Institute for Economic Management
- National Library, Hanoi


1

INTRODUCTION
1. The need of studying the topic
Economic zones have the same purpose to attract resources, to create growth
poles, where new institutions, mechanisms and policies are expected to create
breakthroughs. From the pilot model of policy mechanisms in Mong Cai
border gate area (1996), Quang Ninh has accelerated the development of the
economic zone model. However, economic zones in Quang Ninh in particular,
the country in general has not achieved the expected success.
In order for the economic zones of the Quang Ninh province to meet the local
socio-economic development objectives, it is necessary to have an appropriate
economic zone model. Therefore, the topic was selected by the doctoral
student as a doctoral thesis.
2. The purpose and meaning of the thesis research
The study of the thesis topic is to build a basic theoretical framework to
interpret the factors affecting the economic zone development model in a
province-level locality. Since then, giving directions, views and proposing
solutions to innovating the model of economic zone development in the Quang
Ninh province during international economic integration.
The thesis has new knowledge contributions: (1) Theoretical: Research on EZ

development model in a locality provincial level during international economic
integration. (2) Regarding the practice: Researching the reality of the process
of developing the model of EZ development in the Quang Ninh province
during international economic integration. Proposing a number of proposals,
proposing renovation of economic zone development model in the Quang Ninh
province during international economic integration.
3. Structure of the thesis
The main content consists of 4 chapters: CHAPTER 1: Overview of research
projects related to the thesis topic. CHAPTER 2: Rationale for renovation the
economic zone development model in a province-level locality during
international economic integration. CHAPTER 3: Research on the status of


2

economic zone development model in the Quang Ninh province. CHAPTER 4:
Innovation of economic zone development model in the Quang Ninh province
during international economic integration.
CHAPTER

1:

OVERVIEW

OF

RESEARCHES

ON


THE

DEVELOPMENT OF ECONOMIC ZONE
1.1. Overview of researches related to economic zone development model
1.1.1. Overview of studies published abroad
Jong Cheol Lee (2014), Challenges and experiences in building and
developing Incheon Free Economic Zone (Korea), [37], an overview analysis
of Incheon EZ; highlighting the natural characteristics, infrastructure, human
resources, finance, science and technology... Shenzhen University (2014),
Experience of successful development of Chinese special economic zone model
- Innovation in Shenzhen financial reform, [45], mainly referring to the
financial industry, explains Shenzhen's development. Farole, T. and G. Akinci,
World Bank (2011), Special Economic Zones: Progress, Emerging
Challenges, and Future Directions, [59] have raised issues of investment
attraction and job creation, give lessons learned from Honduras, America,
China, Singapore.... Wei Dat Chi (2014), Implementing a strategic
transformation of the economic development model from outward to open,
[12], analyzed the economic model as an institution to participate in
international assignment in the context of economic globalization.
1.1.2. Overview of published studies in Vietnam
Ministry of Industry and Trade (2013), Developing economic zone of border
gate in Vietnam, [4], Overview of the current status of border gate economic
zones and border trade ... Vo Dai Luoc (2010), Research on special economic
zones, [38] Research on development of Open economic zones in the world in
the context of international economic integration. Nguyen Xuan Thang (2014),
The issue of building special economic zones in the era of globalization, [51],
gave an overview of the issue of building special economic zones, analyzing
the core factors in economic development. sacrifice. Bui Tat Thang (2014),



3

The issue of building special economic zones, [45], Analyzing the key
characteristics of successful economic zones, mentioning the lessons learned
from the above special economic zones. gender; proposing economic zone
policy in Vietnam. Huynh The Du, Dinh Cong Khai, Huynh Trung Dung,
Hoang Van Thang, Nguyen Thi Hong Nhung (2017), From the economic zone
to develop and link the region: creating institutional Proposing development
orientations, models and methods to promote and solutions to develop
economic zones in the Quang Ninh province during international economic
integration.
1.1.3. Summarize the evaluation of unresolved issues (gaps) and some issues
that the thesis focuses on
Each topic, study, article has different approaches. But: (1) there is no
comprehensive research, system of EZ development in the Quang Ninh
province. (2) policy recommendations only stop raising qualitative views,
proposing and proposing common solutions. (3) much research is more
practical and practical than summarizing practice to build theoretical
framework or model design. (4) There is no research on the developing EZ
model for a province like Quang Ninh. (5) Evaluating the factors affecting the
economic zone model, there are no comprehensive assessments.
Since then, the thesis focus on: (1) Systematizing, interpreting and clarifying
theoretical and practical issues of the economic zone development model
during economic integration. Internationally, (2) Analyzing and assessing the
current situation of developing economic zones in the Quang Ninh province:
Vietnam's economic, social and external development.
1.2. Direction to solve research problems of the thesis
1.2.1. Objectives and research questions of the thesis topic
General research objectives: Development theoretical framework and
solutions to innovate the EZ development model in the Quang Ninh province

during international economic integration. Specific research objectives: (1)
The system and contribute to perfecting the theoretical basis of the economic
zone, the model of economic zone development during international economic


4

integration; (2) Assessing the status of the model of developing economic
zones in the Quang Ninh province; (3) Theoretical framework, viewpoints,
solutions to renovate the economic zone development models to improve the
efficiency of economic zones in the Quang Ninh province during international
economic integration; (4) Some recommendations.
Research questions: (1) What constitutes and impacts to the EZ development
model during international economic integration? (2) What is the role and
degree of influence of factors on the model of EZ development at a provincial
like Quang Ninh province? (3) Impact of current international economic
integration on economic zone development (4) What model is suitable for
innovation of the economic zone development model for Quang Ninh? (5)
What are the solutions and proposals needed for state agencies?
1.2.2. Object and scope of the thesis research topic
1.2.2.1. Object of research: Innovating new model of developing EZ in the
Quang Ninh province during the current international economic integration.
1.2.2.2. Scope of research: research location includes 04 economic zones of
the Quang Ninh province: Van Don, Mong Cai, Hai Ha (Bac Phong Sinh),
Binh Lieu (Hoanh Mo - Dong Van). Time to evaluate the process of economic
zone development from implementation to 2018, the focus of the last 5 years
(2013-2018); proposed orientation to 2030. Content limitation: lessons learned
at home and abroad; put in the overall political system and space
breakthroughs, [21]: mentioned issues of economic zone development
institutions, problems and challenges; policy proposal for Vietnam.

1.2.3. Approach and method of research
1.2.3.1. Approach: combination of progressive and breakthrough. A systematic
study of theoretical issues about economic zone development model to clarify
the theoretical framework; studying practical experiences at home and abroad,
synthesizing and evaluating the actual situation in the Quang Ninh province;
proposals based on theoretical and factual analysis.
1.2.3.2. Research methods: (1) Statistical methods: through collecting primary


5

documents, ... combining research at tables to gather and process data related
to the development of economic zones in the Quang Ninh province. (2)
Methods of actual investigation, survey and interview. (3) Expert method:
collect information, documents and receive comments from experts, scientists,
... (4) Methods of comparison, analysis and synthesis.
CHAPTER 2: THEORETICAL BACKGROUND ON INNOVATION
THE MODEL OF DEVELOPMENT ECONOMIC ZONE IN THE
LOCATION OF A PROVINCE LEVEL DURING INTERNATIONAL
ECONOMIC INTEGRATION
2.1. Economic zone and economic zone development model in a provincelevel locality during international economic integration
2.1.1. Economic zone and economic zone's role in socio-economic
development in a province level
2.1.1.1. Economic zone concept
In the thesis, "Economic Zone" is understood as an area with a separate
economic space, defined geographical boundaries, an investment and business
environment that is particularly favorable for investors, given construction and
development permits by the State, operated by a favorable legal framework,
open to international practices.
2.1.1.2. The meaning of the establishment of an economic zone: (1) As a basis

for innovation of macro policies. (2) Applying new models and motivations for
economic development. (3) Develop production, create products with high
quality and competitiveness; market expansion. (4) Creating jobs, promoting
training and improving the quality of human resources. (5) Exploiting
advantages to promote socio-economic development.
2.1.1.3. The role of the economic zone in socio-economic development in a
province-level locality: (1) Attract investment, especially foreign direct
investment; (2) Infrastructure development; (3) Support for a broader
economic reform strategy; (4) A "laboratory" for new policies and approaches;
(5) Relieve some of the pressure of population growth and employment needs.


6

2.1.1.4. General characteristics of the economic zone: (1) areas with separate
economic space, defined geographical boundaries, are allowed to build,
especially favorable investment and business environment (2) function into
functional areas suitable to the characteristics of each economic zone. (3)
favorable geographical position converges basic development factors. (4)
mobilizing resources for investment and production development, making an
important contribution to job creation, income generation and human resource
training. (5) investment and technical infrastructure development brings
positive effects to regional and national development. (6) effective means, one
of the factors of local economic restructuring.
2.1.1.5. Some initial selection criteria for proposing formation of an economic
zone: geostrategic location; convenient infrastructure; conditions for
developing resources; conditions or potential for infrastructure development.
2.1.2. Economic zone development model in a province level
2.1.2.1. Forms, frameworks for formation and development of economic zones
(1) According to the target approach, the EZ has 3 forms: EZ has a commercial

nature; EZ has industrial nature; EZ has a synthetic nature. (2) According to
the model of management and development of the economic zone classified as:
Special economic zone, bonded area, export processing zone, border economic
zone, coastal economic zone, open economic zone. (3) These types of
economic zones have in common: (i) About space: established on a special
basis of natural conditions, favorable geographical and economic location. (ii)
Regarding external economic development planning: EZs are divided into nontariff zones and tariff zones. (iii) In the field of investment: EZs allow multisector and multi-sector investment, but have a central objective. (iv)
Connectivity and diffusion: EZ affects socio-economic activities at the scale or
territory. (v) Uniformity, internal: planning, synchronous, balanced in the
overall reasonable of the locality and region. (vi) Pioneering, orientation:
where new institutions are piloted, growth poles.
2.1.2.3. Economic zone development model by territorial space: Straight line
model, Fan chest model, Spreading model.


7

2.1.2.3. Economic zone development model considered from the perspective of
management: (1) management of the state and local authorities for EZ; (2)
corporate governance; (3) private-state coordination management model.
2.1.3. Some theories related to economic zone development model
Economic efficiency by scale: The foundation of the line of economic theory,
indicating that the law of scale increases, the economic efficiency decreases efficiency decreases due to scale .. [47]. Economic efficiency gradually
increases with scale: It is the "focus on space" that has created the forms of
economic activities such as cities, industry clusters, industrial chains, EZs and
production centers, employment centers. New Trade Theory: together with the
theory of national competitive advantage (Michael Porter pioneered) research
analysis of "economies of scale", indicating "scale performance" can be
gradually increased by scale. The New Theory of Economic Geography by Paul
Krugman (USA - 1991): Economic concentration is a necessary condition to

create and promote economic efficiency with scale, which is the driving force
to decide the formation of space economic focus.
2.1.4. International economic integration and the requirements of reforming
economic zone development model in a province level
2.1.4.1. The concept of international economic integration
International economic integration is one of the forms of "international
integration". The most commonly understood international economic
integration is the integration of each nation's economy into regional and
global economic cooperation organizations ...
2.1.3.2. The inevitability of international economic integration
In the process of society, the rapid development of productive forces along
with the emergence of market economies has strongly promoted the process of
cooperation and cooperation among countries. International economic
integration has become a major trend of the world today.
2.1.3.3. The meaning of international economic integration
Aiming at forming a regional set to promote production, expanding markets
for products and services; to address key issues: tariff reduction, non-tariff
barriers; reduce restrictions on services; reduce international investment


8

obstacles; adjusting trade policies; cultural, educational, medical activities...
2.1.3.4. The nature of international economic integration
(1) the interwoven, interdependent and interdependent relationship between
economies, both the process of cooperation and development, and the
resolution of conflicts; (2) the process of eliminating trade and investment
barriers; (3) create new conditions for businesses to improve competitiveness;
(4) Facilitating the implementation of reforms, also a requirement for
innovation and improvement of economic institutions, (5) creating new factors

and conditions for development (6) facilitating internal and foreign; market
expansion, technology transfer and management experience.
2.1.3.5. Levels of international economic integration
(1) Preferential trade agreement; (2) Free trade area; (3) Customs Union; (4)
Common market (or single market); (5) Economic-monetary union.
2.2. Content and method of developing economic zone model in a province
level
2.2.1. Contents of developing economic zone model in a province level
How to build an EZ development model depends on the objectives developing
the EZ. The objectives: (1) Promote and exploit the potential, strengths and
resources of the locality; (2) Attract investment resources. (3) Factors of
stimulating, catalyzing, promoting local economic restructuring in the
direction of sustainability and integration; (4) Creating jobs, developing human
resources and improving people's lives; (5) Participate deeply in the integration
process, adapt to the trend of liberalization; promote the process of green
growth, green economy; (6) Associated with elements of the era, gainning
achievements of the industrial revolution.
2.2.2. Mode of building and innovating economic zone development model in
a province-level locality
Formulating and innovating the economic zone development models to meet
objective practical requirements. The two main methods of construction and
innovation are: (1) Building a new model to develop the economic zone to
create an outstanding development institution, (2) Convert and upgrade the
current model but must create new structures to create innovation. According


9

to the actual situation, the provincial level selects the method of innovating the
economic zone development model accordingly.

2.3. Factors affecting tectonic development and promoting economic zone
development in a province-level locality
Up to now, there has not been any study to fully evaluate the content of the
factors affecting the development of the EZ development model. Based on the
concepts and studies in the above sections of the thesis, specific impact factors
are identified: Institution; Leadership, direction; Organizing committee;
Natural condition; Develop and implement plans; Administrative reform; The
infrastructure;

Human

Resources;

Attracting

investment;

Economic

development; Culture and society; Science and technology; Environment;
International cooperation; Defence security.
2.4. International and domestic experience
2.4.1. Experience of some countries in the world
Summary of recent international studies and experiences shows that the
success of EZs is often associated with the following factors: (1) Geographical
location, strategic politics, Characteristic, special and favorable natural
conditions. (2) Determined to innovate, reform ideas, dare to phase, dare to
experiment. (3) Boldly piloting, just implementing, adding complementary
institutions and mechanisms. (4) Must have superior institutions, strong and
stable enough, given high autonomy. (5) There is a global competitive policy

mechanism. (6) Low production input costs and flexible employment
regulations. (7) Initial Government support for infrastructure development and
human resources; Close cooperation between the state and the private. (8)
Administrative apparatus is compact and efficient; Simple, transparent and
public administrative procedures. Timely solve challenges and difficulties. (9)
Identify the type and objectives of EZ development clearly and towards
specific sectors and strategic partners.
In addition to the successes, the unsuccessful factors of EZs in the world are:
(1) Policies and privileges in EZs are limited (2) lack of favorable conditions
for construction investors infrastructure (3) cumbersome and complicated
administrative procedures; Very high cost for infrastructure. (3) The model of


10

administrative organization is not neat and superior. (4) The Government is not
proactive in creating favorable conditions for investors. (5) Companies face
complicated regulations, high costs for infrastructure, labor restrictions.
2.4.2. Domestic experience in developing economic zones and lessons for
Quang Ninh province
2.4.2.1. Overview
Starting from the renovation process, our country has established and
developed economic zone models. So far, there are 16 coastal EZs nationwide,
28 border economic zones have been established:
- Planning and establishment of economic zones: (1) Border gate economic
zone: there are 28 economic zones in the whole country with a total area of
more than 660 thousand hectares in 21 out of 25 provinces in land border. (2)
Coastal Economic Zone: there are 16 EZs established, total area of land and
sea surface is nearly 815 thousand hectares.
- Regarding the results of the EZs until 2018: (1) Coastal Economic Zone:

attracting nearly 2,000 investment projects, including some big projects was
contribute positively to economic growth, export, increase state budget
revenue, and create jobs. (2) Border gate economic zone: an important role in
the

development

process,

attracting

investment,

expanding

markets,

stimulating production and increasing commodity competitiveness; expand
relations, strengthen friendship with neighboring countries.
2.4.2.2. About economic zone development model
Economic models of Vietnam aim to develop different sectors and fields but
are built on the principle of promoting advantages in scale, forming
concentrated production areas.
Regarding the development model according to the target, the EZs in our
country all determine the goal of maximizing the potential of the local,
creating the growth pole as a driving force for regional development. The EZ
development model based on industry based on multi-sectoral development,
focusing on industry and services. Regarding the management model of EZs:
from the central to local levels, in the direction of strengthening
decentralization


and

authorization,

branches

and

provincial

People's


11

Committees for the EZ Management Board (3 levels management model).
2.4.2.3. Lesson for Quang Ninh province
Successful lessons: EZs have contributed to innovation of investment and
business environment; attracting a large amount of capital invested in technical
and business infrastructure (from the private sector, FDI for nearly 90% of the
total investment of technical infrastructure, of which 3,48 billion USD of FDI);
promoting production development, forming a number of key industries;
contribute to socio-economic development.
The reason of success: (1) There is interest in leadership, support from the
State; the proactive and drastic action of the government; creatively apply
practical guidelines to and in accordance with the development worldwide
trend. (2) Planning and selecting suitable locations. (3) Know how to apply
successful experiences at home and abroad. (4) Actively improve investment
environment and investment promotion effectively; (5) Having attractive and

competitive policies for training and attracting human resources.
Limitations and weaknesses: (1) The EZs lack strategic planning, so they are
spread, divided, fragmented and slow to determine the priority order so many
areas have low efficiency. (2) Infrastructure is inadequate, not synchronized,
and does not meet the development requirements. (3) Not attracting strategic
investors in science and technology, finance and management skills. (4)
Human resources do not meet requirements of investors. (5) Investment
environment is not really attractive; cumbersome administrative procedures.
Reasons for not succeeding: (1) The basic conflict between development of
production relations has not been solved (2) Asynchronous innovation, new
focus on economic innovation, not focusing on administrative reform, soon
organizing apparatus. (3) Institution is not strong enough (no Law). (4) Policy
mechanisms to attract all resources that are not competitive at regional and
international levels. (5) The organizational structure model also overlaps (6)
Preferential policies and support of the State for EZs are also spread. (7) EZ is
established when it does not meet all necessary factors for development. (8)
Infrastructure and human resources are both weak and weak.


12

CHAPTER

3:

CURRENT

SITUATION

OF


ECONOMIC

DEVELOPMENT IN QUANG NINH PROVINCE
3.1. The Quang Ninh province conditions has important impacted on
economic zone development
3.1.1. Potential, advantages
Quang Ninh has a strategic location, is a great opportunity for comprehensive
development, capable of deep international integration; the only province has
both land and sea borders (120 km on land and 191 km on sea); The only
province has 4 cities. Many outstanding "unique" landscapes are opportunities
to develop different types of tourism and develop cultural and entertainment
industries. Rich mineral resources, especially coal, limestone, clay. People and
society of the Quang Ninh is a convergence, interference, unity in the diversity
of the Red River civilization.
3.1.2. Achievements and advantages
Economic growth is high: Implementing the restructuring of the economy
associated with the innovation of growth model to promote efficiency;
Restructuring industries in the direction of innovation, creativity, high-tech
application, environmentally friendly. To step up the restructuring of the
agricultural sector along the direction of applying high technologies;
Synchronous infrastructure development.
Institutional and administrative reform are directed drastically from province
to grassroots level;Investment and business environment improved; Focus on
deploying 7 strategic planning.
Culture and society have made progress; Social security is guaranteed. The
quality of education continues to change positively. Foreign affairs are


13


implemented synchronously and comprehensively, expanding.
3.1.3. Limited, weak
Economic development is not commensurate with outstanding potentials
(commercial services, tourism); Socio-economic infrastructure is not
synchronous, industrial and urban development is "hot" leaving environmental
consequences; science and technology are lacking, weak and limited; Lack of
human resources, especially high quality human resources. Cultural and social
sectors have many degrading and backward cultural institutions. The results of
poverty reduction have not been sustainable, the rate of poor households is
concentrated in remote areas.
Subjective causes: Effectiveness and efficiency of state management in some
areas are still limited. The process of reforming economic growth and
restructuring is slow. The policy of using talents and treatment is difficult.
Planning management in some localities is not good. Objective causes: lack of
resources to invest in infrastructure; prioritizing the State's resources which are
not commensurate with the tasks. Mechanisms and policies applied in EZs are
not competitive at regional and international levels.
3.1.4. Background of international economic integration
International context: Peace, cooperation, integration and development are still
major trends. Cooperation, competition, struggle and interdependence among
countries, especially among large countries are increasing. The rapid
development of science and technology, especially information, biotechnology,
new materials technology, ... Globalization on all aspects of life, culture,
politics,

socio-economy.

International


cooperation

in

economic

and

environmental protection is still the main trend. International integration of our
country is increasingly deepening, especially economic integration.
Domestic context: over 30 years of renovation, Vietnam has achieved
comprehensive achievements, but there are still problems in the fields of
economy, culture and society, which cannot be overcome shortly. Quang Ninh
is one of the industrial, tourist and service centers of the country, which has a


14

socio-economic development with diversified and high integration, so it is
greatly affected. Entrepreneurial team has considerable maturity...
3.1.5. Some legal bases related to economic zone in Quang Ninh province
(1) Resolution No. 54-NQ/TW dated September 14, 2005 of the Politburo on
socio-economic development and ensuring national defense and security in the
Red River Delta region by 2010 and orientation in 2020. (2) Conclusion No.
47-KL/TW dated 06/5/2009 of the Politburo on the results of 3 years of
implementing the Resolution of the Xth National Party Congress, Resolution
of the 12th Party Congress of Quang Ninh province and the guidelines and
solutions for development of Quang Ninh province till 2010, orientations to
2020. (3) Notice No. 108-TB/TW dated October 1, 2012 of the Politburo on
the Project "Rapid socio-economic development, lasting; firmly ensuring

national defense and security and piloting to build 02 special administrativeeconomic zone, especially Van Don and Mong Cai".
3.2. Practical development of economic zones in Quang Ninh province
3.2.1. Implementation of economic zone development models
Since 1996, the Government has piloted policy mechanisms at Mong Cai
border gate under Decision No. 675/QD-TTg dated September 18, 1996.
Quang Ninh continues to established: Van Don coastal EZ (Van Don district).
Border-gate economic zones: (1) Mong Cai (Mong Cai city); (2) Hoanh Mo Dong Van (Binh Lieu district); (3) Bac Phong Sinh (Hai Ha district).
Like the EZs in other localities, the models of EZ development in the Quang
Ninh province aim to develop different sectors and fields, but the competitive
advantage of the models is built on the principle of promote the advantages of
scale, forming concentrated production areas. Focus on advantage factors: (1)
synchronization of technical infrastructure, (2) geo-economic factors, (3)
favorable location for production development, service provision and attracting
investment. The management of EZs is organized to 03 levels.
In recent years, with the dynamism and initiative, Quang Ninh has built
modern infrastructure system, improving the business environment, improving


15

the quality of human resources. This is an important innovation process from a
simplified and multi-objective economic development model.
3.2.2. The situation of developing economic zones in Quang Ninh province
3.2.2.1. Developing and proposing mechanism policies to develop economic
zones in the Quang Ninh province
The Quang Ninh province actively researched development solutions, took the
lead in building investment calling policies. The mechanisms and policies are
adjusted and supplemented in accordance with the practical situation;
Specifically, Decision No. 2339/2013/QD-UBND dated September 6, 2013
promulgating policies to support and prioritize investment in IPs and EZs.

3.2.2.2. The situation of developing, adjusting and implementing development
plans in economic zones
Mong Cai Economic Zone: has basically completed the master planning: (1)
Socio-economic development master plan (2) General construction planning
(3) Planning of Vietnam border economic cooperation zone South - China. Hai
Ha EZ Planning, Hoanh Mo - Dong Van and Bac Phong Sinh EZs have been
issued and implemented. Van Don EZ Planning has been completed and
updated, adjusted: Decision 1856/QD-TTg 2018 dated 27/12/2018 Master Plan
of Van Don Economic Zone to 2030, vision to year 2050.
3.2.2.3. Situation of investment and development of infrastructure system
Based on the provincial socio-economic development plan of EZs associated
with the localities in the province, Quang Ninh is interested in proposing and
proactively allocating local budgets and accumulating extreme in attracting
and exploiting resources outside the budget for infrastructure systems.
State budget capital: including capital for socio-economic development
programs in regions; storm shelter program; tourism infrastructure; program
134; Program 135; program of strengthening and upgrading sea dike systems;
infrastructure of border gate economic zone; Government bond capital ...
Non-budget capital: Quang Ninh actively mobilizes other resources to focus
on infrastructure investment, initially meeting the requirements of production,


16

business, trade and service activities in the locality. Mong Cai industrial zone:
in the period of 2012 - 2017, concentrate resources to invest 327 works and
construction items with a total investment of VND 2,152,024 billion. Northern
Phong Sinh and Hoanh Mo - Dong Van economic zones: to achieve initial
results. Van Don EZ: 50 projects with a total investment of 131.392 million
USD and 12,950,093 billion VND, including an airport project with a total

investment of 6,759 billion VND.
3.2.2.4. Investment attraction in economic zones
By 2018, the border gate economic zones in Quang Ninh province have 93
investment projects (18 FDI projects and 75 domestic projects) still valid with
a total registered capital of 292.8 million USD and 9,594,896 billions dong.
Van Don coastal economic zone so far has 75 projects investing capital nonbudget with a total registered investment of over 9,800 billion VND.
3.2.2.5. Situation of production and business activities in economic zones
After more than 20 years from the implementation of Decision 675/TTg; So
far, trade and import-export activities have been very exciting. Mong Cai
economic zone: developing industries - handicrafts and services, with over
1,000 diversified businesses, over 5,250 business households. Bac Phong Sinh
economic zone: trade, import and export activities in the form of border trade.
Hoanh Mo - Dong Van export zone: import and export activities, Hoanh Mo
and Dong Van border gate markets with about 300 business households.
Import-export turnover has grown quite over the years. About budget revenue
increases steadily. The border gate economic zones are also a tourist attraction,
such as the average growth rate of tourists in the Mong Cai zone of 16.9% per
year; revenue from tourism increased by an average of 22% / year. The number
of employees working in the EZ increased rapidly. Regarding environmental
protection, enterprises are aware of complying with regulations on
environmental protection, collection and contracts of transporting and treating
ordinary solid waste and waste according to regulations.
3.2.3. General summary of some achievements, limitations and causes


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3.2.3.1. Achievements: (1) EZs have contributed to the renovation of the
investment and business environment of the Quang Ninh province. (2)
attracting a large amount of capital invested in technical infrastructure and

business production. (3) Economic zones help promote industrial production
development, forming a number of key industries. (4) Economic zones have an
important contribution to socio-economic development.
3.2.3.2. Existence and limitations: (1) Management mechanism is still
inadequate: The EZ Management Board is the focal point managing the EZ in
the locality, the district government manages the territory, by field. (2)
Investment incentives for EZs have been interested but not really attractive. (3)
The mobilization of infrastructure development resources of EZs is still
difficult. (4) Economic linkages in ineffective development: between
enterprises in the EZ and between EZs and outside local economies. (5) EZs
poses environmental challenges such as air, noise and waste.
3.2.3.3. Cause: (1) Economic planning is not closely linked with regional
planning. (2) Extensive investment, lack of synchronous technical and social
infrastructure. (3) Infrastructure investment progress is not satisfactory due to
small capital scale. (4) The decentralization and authorization for the
Management Board are incomplete and consistent. (5) Attracting investment in
production and business in EZs with many difficulties.
3.3. Evaluate factors affecting economic zone development in the Quang
Ninh province
3.3.1. Request for innovation
The economic model currently exists many limitations, facing the challenge of
international economic integration. Researching the new EZ model with
advantages, more attractive to investors, overcoming the shortcomings and
limitations of the current models is very necessary.
3.3.2. Assessing the impact level of factors related to the model of economic
zone development in the Quang Ninh province
There are many factors affecting the implementation of models of economic


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zone development in the Quang Ninh province. (1) Creating and developing
EZ model (2) Attracting investment resources, absorbing science and
technology, making full use of international labor division. (3) Promoting and
exploiting to the fullest potential, strengths and resources of the locality. (4)
Associated with elements of the era, taking the lead in the achievements of the
industrial revolution (5) Creating jobs, developing human resources and
improving people's lives. (6) Participate in integration, promote the process of
green growth, green economy, green production.
3.3.3. The impact of international economic integration on innovation of
economic zone development model in the Quang Ninh province
3.3.3.1. Positive impacts: Promoting economic development, Environmental
improvement, business investment; Developing human resources and scientific
and technological qualifications; Expanding markets and partners; Create jobs,
solve social problems well; Promote changes in mechanisms and policies;
Cultural exchange; Promote institutionalism; Promoting the national role;
Solving global common problems.
3.3.3.2. Negative impacts: on socio-economy; Unbalance and instability;
Increase the gap between rich and poor; Challenges to natural resource and
environmental use; Political stability; The attack of foreign culture; Security.
CHAPTER 4: INNOVATING DEVELOPMENT ECONOMIC ZONE
MODEL
IN
THE
QUANG
NINH
PROVINCE
DURING
INTERNATIONAL ECONOMIC INTEGRATION
4.1. Background forecast and affecting factors to the innovation of

economic zone development in the Quang Ninh province till 2030
The renovation of the economic zone development model has become a major
concern, considering this as a strong driving force to accelerate the process of
economic reform and integration; The increasingly important role of publicprivate partnership (PPP).
With many successes in socio-economic development, possessing potentials


19

and clear strengths; Quang Ninh is a locality with outstanding political
determination and many innovations in economic development models.
4.2. Select economic development model in Quang Ninh province in the
coming time
4.2.1. Model selection perspective
(1) Developing a model of EZ development with modern administration, a
streamlined, effective, efficient and convenient administrative apparatus;
superior preferential mechanisms and policies, international competition. (2)
Put in the master plan and regional and national development linkages.
Ensuring sustainable development with high open economy. (3) Building a
synchronous and modern infrastructure system. Attracting strong investment,
especially creative resources, advanced management methods. (4) attract, train
human resources. (5) Determined highly, energetically, creatively,
implemented and promptly adjusted to suit reality.
4.2.2. Objectives of building new economic zone development model
(1) Promoting and exploiting to the fullest potential, strengths and resources of
the locality. (2) Attract investment resources, absorb science and technology,
make full use of international labor division. (3) Creating and developing EZ
model is a factor of stimulating, catalyzing, promoting local economic
restructuring towards sustainability and integration. (4) Creating jobs,
developing human resources and improving people's lives. (5) Participate

deeply in the integration process, adapt to the trend of liberalization; promote
the process of green growth, green economy, green production. (6) Attaching
to the elements of the era, leading the acquisition of achievements of the
industrial revolution and technological advances.
4.2.3. Proposing a new model of economic zone development in the Quang
Ninh province
Building an economic zone to a new development model with modern
administration, streamlined and effective apparatus; preferential mechanisms
and policies; convenient administrative procedures; pilot application of private
governance model for economic zones. New development model: operating
under the modern market mechanism; extrovert, high openness.
In order to achieve the objectives of reforming the economic development


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model, it must be based on the following principles: (1) Developing people,
ensuring and improving people's lives for purposes. (2) Testing, innovating the
growth model, restructure the economy, developing green economy,
entertainment industry as a orientation. (3) Institutional reforms, mechanisms,
policies and flexible operating measures make breakthroughs. (4) Developing
infrastructure, synchronous administrative reform, developing high quality
human resources as a foundation. (5) Application, transfer and mastery of
science and technology, increase productivity and market orientation as a
driving force. (6) Developing culture, building ecological civilization, saving
natural resources and protecting the environment as a key. (7) Open the door cooperate to create creativity, get creative for sustainable development. (8)
development to contribute to maintaining defence security and vice versa.
4.2.4. How to promote elements of the new economic zone development
model in Quang Ninh province
4.2.4.1. Leadership direction, institutional building

(1) Leadership and direction: Establish provincial steering committee. Raising
awareness, directing research, reforming leadership methods and organizing
management and operating for the new model. (2) Develop a project on
organizational arrangement and EZ project. (3) Organizing a streamlined,
effective, multi-disciplinary and multi-disciplinary management system. Good
propaganda and advocacy work. Reforming administrative procedures in a
unified, simple, streamlined and publicized process.
4.2.4.2. Developing high quality human resources
(1) Promoting talent attraction; focusing on improving the quality of local
human resources, especially cadres and civil servants; fostering at home and
abroad; (2) Develop mechanisms to attract and use talents; Praise and reward
timely and worthy. Develop a project on training and developing human
resources of the EZ. Prioritize investment in universities and vocational
training in the province; Priority can be given to Van Don and Mong Cai by
roadmap. (3) Develop preferential policies and appropriate training industries
to attract employees. (4) Linking with leading domestic and foreign training
institutions. (5) Research on building "talent area" in EZ. (6) Interested in


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considering training and attraction funding.
4.2.4.3. Development of cultural and social fields
(1) Field of culture - sports: building, developing cultural identity, sustainable
spiritual foundation. Attract investment to build some great cultural and sports
institutions; promote the value of cultural heritage, scenic spots and traditional
festivals of the locality into branded tourism products; construction and
development of cultural industry - entertainment industry.
(2) Education and health sector: investing in high technology for education and
health from budget and non-state. Develop modern medical services and

international hospitals. Developing high quality education and building an
international multidisciplinary university and attracting famous universities,
research institutes around the world to open branches and sub-institutes in EZ.
(3) Regarding poverty reduction and employment: strive to reduce the number
of poor households, narrow the gap between rich and poor. Labor restructuring
from agricultural sector to non-agricultural sector. Implementing solutions to
increase mechanical population to serve economic development.
4.2.4.4. Developing science and technology and environmental protection
Develop a roadmap and plan for science and technology development. Focus
on application, transfer and mastering technology. Development and
application in electronic transactions; modern electronic government
development; promote deployment of online services. Development of
biotechnology, biodiversity protection; treatment of environmental pollution,
new materials technology, application of clean production technology,
environmentally friendly technology.
4.2.4.5. Developing synchronous infrastructure
Completing the planning and investment in developing a synchronous and
modern EZ infrastructure system in association with the general infrastructure
planning of Quang Ninh. Promote socialization to urgently invest and build
motivation projects. (1) Development of high-class tourism and entertainment
industry infrastructure; modern financial and banking services; high quality
health and education; implementing smart urban. (2) Focus on investment in
transport infrastructure; areas of the border, tourist wharves, tourist ports and


22

yachts. (3) Complete the national grid system. (4) Investing in construction of
some reservoirs, dams and rainwater tanks. (5) Building a financial-banking
center. (6) Connecting with international diversity, promoting the application

of information technology to the management, exploitation and operation of
economic and social infrastructure systems and the entire economy. (7)
Developing education and training infrastructure from pre-school to university
standards. (8) Building an international hospital; to form high-quality
convalescence and health care centers and modern equipment. (9) deploying
construction of resorts, sea-island eco-tourism; high-class hotel system;
international conference center; trade center.
4.2.4.6. Mobilize financial resources
For non-budget capital sources: Implementing total solutions to attract
investment resources, especially foreign investment resources. Diversify
investment forms (BOT, BTO, BT, PPP ...) in EZs. For the State budget
capital: the proposal is entitled to the accounting mechanism according to the
plan to reduce the rate of regulating the central budget (coal export tax and
import and export tax of the province). Mobilize resources from the successful
experience of EZs such as Shenzhen EZ and Dubai's FEZs.
4.2.4.7. Promote investment promotion
Investment promotion is focused, consistent with the objectives and structure
of the industry according to each stage of economic development: Building
investment promotion fund in the form of socialization. Focusing on links,
seeking partners and strategic investors: cooperating with partners from Japan,
Korea, Singapore, ... to jointly invest in building and developing EZs or
cooperating with other partners. big corporation.
4.2.4.8. Solutions on mechanisms and policies
(1) In terms of finance, currency and banking: financial, monetary and banking
mechanisms and policies ensure international incentives and competition. (2)
Regarding tax preferential policies: implementing the principle of reducing
before and after collection; reduce taxes and increase collection of fees and
charges. (3) Incentives for land and water surface rent: investment projects in
EZs are entitled to incentives for land rents and water surface rents in line with



23

the target of economic development, the province and the legal regulations. the
law. (4) Policies on land and housing: within the legal framework (not
exceeding 70 years). Attract businesses, large corporations to locate their
offices in the EZ. (5) Policies on training and developing human resources:
Prioritize the construction of vocational training schools, Develop preferential
mechanisms and policies to link with foreign institutions, implement training
high level professions according to international standards. (6) Immigration
policy and dispute resolution: building a convenient customs clearance system.
(7) Investment mechanism of state budget and planning work: budget to
support investment in infrastructure, (8) Mechanism of investment promotion
bonus: building Investment Promotion Fund managed by the EZ management
agency.
4.2.4.9. Ensuring national defense and security; foreign affairs expansion;
promote regional links and population management
(1) Ensuring national defense and security, closely combining defense and
security with economic development. (2) Expanding and improving the
effectiveness of external activities. (3) Promote regional links, link transport
infrastructure development. Constructing economic zones in the tourism and
entertainment industry chain. ecology, environment.
4.2.4.10. Renovating the political system and government organizations
Building a clean and strong party grassroots organization; arranging
streamlined and efficient apparatus; build and improve the quality of the team;
payroll streamlining: reduce district-level civil servants; reducing communelevel non-specialized officials; reduce the number of non-village and village
cadres; reducing commune-level civil servants.
4.3. Conditions for successful implementation of the new economic zone
development model in the Quang Ninh province
(1) Regarding the mechanism of socio-economic policies: Regulating policies

on taxes, finance, banking, land, investment, trade, housing, attracting human
resources, labor and wages ... with appropriate and favorable incentives. (2)
About the administrative apparatus: Specifying the functions and tasks of the
EZ and local authorities; to unify, not overlap. (3) Constructing essential


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