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MINISTRY OF
EDUCATION AND TRAINING

MINISTRY OF
INDUSTRY AND TRADE

VIETNAM INSTITUTE OF INDUSTRIAL AND TRADE
POLICY AND STRATEGY

-----------------------------

VU THI NU

SUSTAINABLE DEVELOPMENT OF
COMMERCE IN BINH DINH PROVINCE
Major: Commerce
Code: 62.34.01.21

SUMMARY OF DOCTORAL THESIS IN ECONOMICS


Hanoi, 2020
The work was completed in
Vietnam Institute of Industrial and Trade Policy And Strategy
Science suppervisor:
1. Assoc. Prof. Ha Thanh Viet.
2. Prof. Dang Dinh Dao

Reviewer 1:
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Reviewer 2:
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Reviewer 3:
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The thesis will be defended in front of the State Council for Thesis
Evaluation meeting at the Vietnam Institute of Industrial and Trade
Policy and Strategy (VIITPS) - Ministry of Industry and Trade, 46 Ngo


Quyen - Hanoi in ……. time ……… date ………. month ………. year
………….

The thesis can be found at:

Hanoi National Library
Library of VIITPS


1

INTRODUCTION

1. The urgency of the research topic
Binh Dinh province located in the South Central Coast region. It
is a province in the Central key economic region and considered as
the gateway of the Central Highlands provinces. Commerce plays
an important role as an integral part of the economy and as an
economic lever to promote economic development, greatly impacts
on
the
socio-economic
development,
helping
improving
management efficiency, improving provincial competitiveness,
accelerating the transformation of local economic growth models. In
integration and development, Sustainable Development of
Commerce (SDC) has a particularly important role for localities in
general and Binh Dinh province in particular.
However, the reality of SDC in Binh Dinh province still has many
limitations such as the growth rate of trade has not reached the set
target; The problem of transportation technology, storage
technology and warehousing system has not been paid enough
attention, resulting in environmental and social as well as growth of
the industry; The expansion of exports of a number of products
depleting natural resources, reducing biodiversity and increasing
environmental pollution; The situation of importing goods without
ensuring safety regulations is quite common; Violations of market
principles in commercial business such as smuggling, trade frauds,
counterfeit goods, poor quality goods and food safety failures are
frequent; The production and consumption of agricultural, forestry
and fishery products are not sustainable, the prices of agricultural

products are erratic, and the quality of some crops and livestock
products is still not competitive enough in the market, affecting the
development of the industry; The system of trading network
infrastructure has developed slowly, the promotion of domestic
market has not been renovated.
Failure in properly evaluating the situation and having specific
solutions will make the commerce develops unsustainably, greatly
affecting the economy, society and environment of Binh Dinh
Province. Moreover, the improvement and development of theories
on sustainable development of local play an important role in
sustainable economic development of localities and economic
regions. Therefore, the researching on topic “Sustainable
development of commerce in Binh Dinh province” is really
necessary, both supplement some theories in local sustainable
economic development and meet the actual needs in Binh Dinh.


2

2. New contributions of the thesis
The thesis complements and deepens the contents of
commercial sustainable development in sustainable economic
development of localities and economic regions.
The thesis confirms that commercial sustainable development
is essentially a process of sustainable development of local
commercial activities or greening commercial activities in the
province;
The thesis clarifies the creation of an environment for
sustainable development of commerce of the province through
basic factors such as policies, infrastructure, enterprises and

human resources.
The thesis proposes a number of specific views on SDC
through commercial and service activities in the area;
The thesis proposes a number of feasible solutions for
sustainable commercial development in Binh Dinh province in terms
of economy, society and environment.
3. The structure of the thesis
In addition to the introduction, conclusions and appendix, the
thesis includes 4 chapters, as follows:
Chapter 1. Overview of research and research directions on
sustainable development of commerce in the province
Chapter 2. Theoretical issues and practical experience on
sustainable development of commerce in the province
Chapter 3. Actual situation of sustainable development of
commerce in Binh Dinh province
Chapter 4. Orientations and solutions for sustainable
development of commerce in Binh Dinh province till 2025 and a
view to 2030.
_______________________________
CHAPTER 1. OVERVIEW OF RESEARCH AND RESEARCH
DIRECTIONS ON SUSTAINABLE DEVELOPMENT OF COMMERCE
IN THE PROVINCE
1.1. Overview of researches in the country and abroad
Through the process of researching researches in the country
and abroad, each research has a positive contribution at different
aspects.It can be seen that there are many studies on commercial
development, sustainable development in general, import and
export sustainable development and sustainable development in

3

various fields in the country and abroad. However, there are very
few researches on sustainable development of commerce in the
province, especially for coastal provinces like Binh Dinh. Binh Dinh
has a marine economy, close to international maritime routes and is
a province with great potential for trade development. In order to
develop trade sustainably and greening commercial activities, it is
necessary to have in-depth studies, suitable with the characteristics
of Binh Dinh province, and at the same time to approach the
perspective of sustainable development in terms of economy,
society and the environment. Therefore, the study of the topic
"Sustainable development of commerce in Binh Dinh province" is
consistent with reality, associated with 3 key points in sustainable
development, accommodate the requirements of innovation and
greening the commercial sector in Binh Dinh province in the new
development stage.
1.2. Research orientation of the thesis
1.2.1. Research objectives of the thesis
The overall objective of the thesis is to assess the current
situation and propose solutions to sustainable development of
commerce in Binh Dinh province.
To accomplish the above general objective, the specific objectives
of the topic are:
- Interpret theoretical and practical basis on sustainable
development of commerce in the province.
- Identify the basic factors affecting the sustainable
development of commerce in Binh Dinh province
- Analyze the current situation of sustainable development of
commerce in Binh Dinh province from 2010 to 2018 and the

problems raised.
- Assess opportunities, challenges, strengths and weaknesses in
sustainable development trade in Binh Dinh province and propose
perspectives,
orientations
and
solutions
for
sustainable
development in the province of Binh Dinh in the context of
integration and development.
1.2.2. Object and scope of the research
The research object of the thesis is theoretical and practical
issues on sustainable development of commerce in Binh Dinh
province.
Content scope: Research on commodity trade at the provincial
macro level including domestic and international trade of Binh Dinh


4

province.
Space scope: Scope of macro commerce research in Binh Dinh
province.
Time scope: Research the situation of sustainable
development of commerce in Binh Dinh province in the period of
2010-2018. Proposing solutions and recommendations for
sustainable development of commerce in Binh Dinh province until
2025, with a view to 2030.
1.2.3. Research methodologies

The thesis uses a combination of the following research
methodologies:
Qualitative methodology:The data collection method in
qualitative research is the observation method and the evaluation
method according to the general rule of development.
Quantitative methodology:The data collection method in
quantitative research is the method of combining the synthesis of
secondary data and the method of investigating practical survey of
sustainable development of commerce in Binh Dinh province.
Other methodologies : Statistical analysis method, descriptive
comparison method, ... to analyze and evaluate the research
contents on the basis of dialectical materialism methodology.
_______________________________
CHAPTER 2: THEORETICAL ISSUES AND PRACTICAL
EXPERIENCE ON SUSTAINABLE DEVELOPMENT OF COMMERCE
IN THE PROVINCE
2.1. Overview of sustainable development and sustainable
development of commerce
2.1.1. Concept of development and sustainable
development
2.1.1.1. The concept of development
Development is the increase in scale, speed and quality.
Economic development is understood as the process of increasing
in all aspects of the economy and is considered as a process of
change in both quantity and quality and is a strict combination of
the completing process of economic and social issues in each
country.
However, when the economic development of many countries
around the world has reached a decent level, people began to worry
about the negative effects of rapid development on the future of

5

human. Therefore, the issue of sustainable development was posed
and led to the appearance of the concept of "Sustainable
development".
2.1.1.2. Overview of sustainable development
There are many different approaches to the concept of
sustainable development, but the widely recognized and most cited
definition was of World Commission on Environment and
Development: Sustainable development is development that
satisfies the needs of the present but does not compromise the
ability of future generations to satisfy their needs.
From the perspective of the thesis research, the author
proposes a specific definition of "Sustainable Development", that is:
The development process with a strict, reasonable and harmonious
combination between 3 aspects of development, namely economic
development, social development and environmental protection in
order to meet the requirements of the present, but not causing
obstacles to meet the needs of future generations.
2.1.2. Sustainable development of commerce
Sustainable development of commerce in the province has
many different views, due to the perspective of approaching different
research issues of each author. The author proposes the concept of
SDC from the perspective of approaching SDC accordance to the
standpoint of sustainable development of the United Nations or
Agenda 21 as follows:“Sustainable development of commerce in the
province is a commercial development in which the commercial
activities in the province must ensure the harmony between the

three aspects of development that are economic, social and
environmental”.
2.2. Content of SCD in the province and the system of
evaluation criteria
2.2.1. Content of sustainable development of commerce in
the province
Firstly, commercial business activities in the province are able
to cope with and withstand high levels of abnormal phenomena
from the external environment and trade has high and stable
economic growth.
Secondly, commerce in the province has the ability to improve
the quality of life, give people the opportunity to access goods
distribution services, ensure social security and improve income
and increase perks of workers. Besides, commerce contributes to


6

ensuring the fairness among the classes in the regions.
Thirdly, commercial business activities in the province have
the ability to protect and improve the quality of the environment,
which means the commercial business activities can properly
exploit and use the resources in processing goods, limiting the
amount of waste (solid, liquid, gas ...) into the environment,
conserving biodiversity, limiting the factors that cause climate
change and ensuring energy security.
2.2.2. System of evaluation criteria for sustainable
development of commerce in the province
2.2.2.1. Group of criteria for assessing the level of sustainable
development of commerce in the economy

- Growth rate of total retail sales of consumer goods and
services
- Growth rate of import and export turnover
- Added value from commercial activities in the province
- Contribution of commerce in the GRDP of the local economy
2.2.2.2. Group of criteria for assessing the level of sustainable
development of commerce on society
- The number of employees attracted and the average income
of workers in the commerce industry in the province
- The level of pervasiveness and compliance with market rules
in commercial activities
- The level of satisfying the needs of customer in commercial
activities
2.2.2.3. Criteria for assessing the level sustainable development of
commerce about the environment
- Garbage from commercial activities and the amount of
commercial waste is collected and treated in the province
- Green logistics in commerce of the province


7

2.3. Factors affecting sustainable development of commerce
in the province
- Institutional environment, commercial development law
- Commercial infrastructure
- System of commercial enterprises
- Commercial market
- Commercial human resources
2.4. Local and international experience in sustainable

development of commerce and lessons learned for Binh
Dinh
2.4.1. Experience in sustainable development of commerce
of some localities in countries around the world
- Shanghai's(China) experience in sustainable development
of commerce
- Orchard Road’s (Singapore) experience in sustainable
development of commerce
- Bremen's
(Germany)
experience
in
sustainable
development of commerce
2.4.2. Experience in sustainable development of commerce
of localities in the country
- Ho Chi Minh City’s (HCMC) experience in sustainable
development of commerce


8

- Da Nang’s experience in sustainable development of
commerce
- Thua Thien Hue’s experience in sustainable development
of commerce
2.4.3. Lessons on sustainable development of commerce for
Binh Dinh province
- Diversify types of businesses with many different sizes,
increase in number and renovate in modes of operation;

- Modernize the commercial infrastructure, focus on the
construction and development of a modern commercial
infrastructure system;
- Connecting and developing transport infrastructure system
by road, rail, sea and air. Particularly, focusing on building and
developing Quy Nhon seaport system;
- Developing high quality human resources;
- It is necessary to have a long-term master plan and
synchronously implement the planning of developing sustainable
development of commerce.
- Completing local management institutions on sustainable
development of commerce;
- Diversifying export products and focusing on exporting
products are the strength of the province.
- Enhancing learning experience in sustainable development of
commerce of countries with developed commerce and logistics.
- Developing commercesustainably through the development
of circulation organization models suitable to each market.
CHAPTER3: ACTUAL SITUATION OF SUSTAINABLE
DEVELOPMENT OF COMMERCE IN BINH DINH PROVINCE
3.1. The natural and socio-economic characteristics of Binh
Dinh province affecting the commercial development
process in the area
3.1.1. Natural and socio-economic characteristics of Binh
Dinh province
Binh Dinh Province is located in the South Central Coast
region, toward the South of the Central Key Economic Region. Binh
Dinh is centrally located in international and inter-regional exchange
routes, the North-South and East-West routes in the Central region
and located in all four routes includingroads, railways across

Vietnam, domestic air routes and sea routes. Binh Dinh is close to
international maritime routes, which is a convenient coastal


9

gateway in the Central Highlands for countries in the Greater
Mekong Sub-region especially Laos, Cambodia and the northeastern
provinces of Thailand via Quy Nhon international seaport and
highway 19. Binh Dinh has a geographical position which creates
favorable conditions for economic development in general and
sustainable development of commerce in particular.
Binh Dinh has fulfilled most of its socio-economic development
plans. Social welfare is guaranteed, national defence and security
are strengthened, service industry continue to grow, people's jobs
and
incomes are improved, and lives are basically stabilized
creatingimportant premise for sustainable development of
commerce.
3.1.2. The process of commercial development in Binh Dinh
province
Through many historic milestones marking the turning point of
the sustainable development of commerce, commercial activities in
Binh Dinh are greening and developing in width and depth; the
quality of service for consumer has been increasingly focused. Total
retail sales of goods and social service revenue tend to increase
over the years, the average growth rate of total retail sales of goods
and service revenue reaches 25,4%/year. Besides, the average
export turnover increases by 40,1 million USD / year and the trade
balance of Binh Dinh is always in a trade surplus. The results of

trade activities are shown in Table 3.1.
Table 3.1.The commercial activities result of Binh Dinh in
the period of 2000 - 2018
Unit

200
0

2005

2010

Billions
VND

4.42
5

7.96
8

22.52
5

Exports of goods

Million USD

103,
9

Imports of goods

Million USD 74,9

Balance of trade

Million USD

214,
9
112,
1
102,
8

Total retail sales of
consumer goods and
services

29

427,2
161,7
265,5

2015 2018
46.9
22

65.0
88

702,
1
279,
9
422,
2

825,
6
375,
0
450,
6

Source: Statistical Yearbook of Binh Dinh Province in 2005, 2016,
2017 and 2018
3.2.
Analyze
the
current
situation
of
sustainable
development of commerce in Binh Dinh province in the


10

period of 2010-2018
3.2.1. Current situation of sustainable development of
commerce through promotion of business activities in Binh
Dinh province
3.2.1.1. Stability and development of total retail sales of consumer
goods and services over the years
Total retail sales of consumer goods and services in 2018 were
estimated at 65,088 billion VND, increased by 13.4% compared to
the previous year. Overall, the average annual growth rate in the
period of 2011-2015 reached 15.8%, decreasedby 7.3% compared
to the period of 2006-2010 and decreasedby 6.2% compared to the
set target (22%).
Considering the total retail sales of goods at current prices,
there is an upward trend over the years, the average growth rate in
the period of 2001-2005 reached 12,3%/year, 23,1%/year in the
period of 2006-2010 and 13,02%/year in the period of 2011-2015.
Thus, the total retail sales of goods tends to increase but the speed
of increase tends to decrease. In 2010, total retail sales of goods on
the market was VND 18595 billion and increased by 25,75% in
2011. But 5 years later, the growth rate tended to decrease and
reached about 38.395 billion VND in 2015. In 2018, total retail sales
of goods in the market was estimated at 53.335 billion VND.
3.2.1.2. Sustainable development of import and export activities
a. Export activities
The total export value of the province tends to increase over
the years. In 2010, the export turnover (E.T) was 427.2 million USD.
In 2011, the figure increased to 488 million USD and reached 573.8
million USD in 2012. In the following years, the growth rate tends to
decrease and the total export value of the province in 2017 reached

about 725 million USD. Although the total export turnover increased
over the years, the growth rate was not high and did not reach the
target. However, in 2018, import-export activities in the province
continued to grow and achieved the target, the total E.T was $825,6
million, reached 100% of the year plan and increased 13,9%
compared to that of 2017.
b. Import activities
The total value of imported goods in the province fluctuated
over the years. In 2018, the import turnover (I.T) of the whole
province was estimated at $361,6 million, increased about 13,4%
compared to that of 2017, reaching 113% of the anual plan.


11

Import turnover has a low and slow growth rate because the
production and processing activities of some products in enterprises
in the province show signs of slowing down and enterprises have a
change in demand for raw and alternative material sources.
c. Growth rate of total import and export turnover
Table 3.9. Trade balance and growth rate of export and
import in Binh Dinh
Year

Unit 2009

201
0

201

1

201
2

201
3

Export
Millio 346,
427,2 488,0 573,8 588,9
turnover n USD 2
Import
Millio 155,
161,7 154,5 190,9 176,9
turnover n USD 8
Trade
Millio 190,
265,5 333,5 382,9 412
balance n USD 4
The
growth
%
23,40 14,2317,58 2,63
rate of
E.T
The
growth
%
3,79 -4,45 23,56 -7,33

rate of
I.T

201
4

201
5

201 201 201
6
7
8

634,7 702,1 703,1724,7825,6
260,4 279,9 283 318,9375,0
374,3 422,2 420,1405,8450,6

7,78 10,62 0,14 3,07

47,20 7,49 1,11

13,9
2

12,6 17,5
9
9

Source: Statistical Yearbook of Binh Dinh Province in2013, 2015,

2016, 2017, 2018 and data process of author
In general, export turnover of many years did not hit the
targets, but there was a growth compared to the previous years,
and Binh Dinh's foreign trade always achieved a trade surplus in
2018 with trade surplus of about 450,6 million USD. This is a
highlight in the province's import and export activities.
3.2.1.3.Value-added (VA) in commerce of local goods
Table 3.10. Value added of commercial commodities at
current prices in Binh Dinh province
201
2011 2012 2013 2014 2015 2016 2017 2018
0
Billions 325
4594, 5258 5959, 5062 5619, 5848, 6597,
VA
2521
VND
1
5
,3
2
,6
5
6
7
VA
Billions
2073, 663, 700,
556, 229,
-730

749,1
growth
896,
VND
5
8
9
9
1
speed
6

Target

Unit


12

VA
growth
speed

%

82,2 14,4 13,3
11,0
4,08 12,8
22,4
15,0

5
5
3
0
5
5

Source: Statistical Yearbook of Binh Dinh Province in 2013, 2015,
2016, 2017, 2018 and data process of author
In the period of 2010- 2018, the added value of commercial
commodities in the province fluctuated with the lowest value was in
2011 at 2521 billion VND and the highest value was in 2018 with
6597,7 billion VND.
3.2.1.4.Contribution of commercial commodities in the Province's
GRDP
In the province's GRDP structure, the service sector still
accounted for the highest proportion, ranging from 37,3 to 41,1% of
the province's total GRDP in the period of 2010 – 2018. Commerce
of goods accounted for about 25 - 31% in the service sector, in
2011 only accounted for about 18%. The level of contribution of
commercial commodities in the province's GRDP unsteadily
changed during 2010-2018 with the lowest was in 2011, the highest
was in 2013, 2014 and the average annual contribution to GRDP of
the province is 10,1%.
3.2.2. Sustainable development of commerce through
addressing social issues
3.2.2.1. The total labor attraction level and average income of
workers in commerce industry in Binh Dinh province
The total labor in commercial enterprises in the province tends
to increase over the years. In 2017, the number of employees in the

commodity trading enterprises reached 13,877 labors. There was an
increase of 259 employees compared to 2016. In addition to the
number of employees in commercial enterprises, a large labor force
is employed in individual economic assets. The number of
employees in non-agricultural, forestry and fisheryindividual
assetsin commodity trading accounts for about 34-36% of the total
number of employees in non-agricultural, forestry and fishery
individual economic assets in the province and tend to fluctuate
instably over the years.
In addition, the average income of workers in enterprises and
in commodity trading enterprises in Binh Dinh province tend to
increase. The average income of workers in enterprises in Binh Dinh
generally increased from 30,9 million VND/employee in 2010 to
64,42 million VND/employee in 2017. Besides, the average income
of workers in commodity trading enterprises are also unstable,


13

standing at the point of 54,8 million VND in 2017
3.2.2.2. The level of pervasiveness and compliance with market
rules in commercial activities
a. The level of commercial pervasiveness
Firstly, the level ofcommercial pervasiveness is reflected in the
development in commercial business network, distribution system
to localities. Through the commercial distribution network system, it
is possible to see the level of distribution among regions is not
equal, consumers of some districts in Binh Dinh province, especially
mountainous areas such as Van Canh, An Lao and Vinh Thanh,
where the access to goods are much more difficult than in other

places.
Secondly, improving the level of satisfaction for consumers,
especially consumers in remoted areas through commercial
promotion activities in Binh Dinh province. Improving the level of
satisfaction for consumers is still relatively limited and uneven
across regions, especially remote areas. Consumers in remote areas
are less likely to have access to promotional activities and trade fair
activities, Vietnamese goods fair than consumers in the cities,
towns or hamlets. Besides, the number of commercial promotion
activities in the mountainous areas is quite small so the level of
commercial pervasiveness is not significant.
b. Compliance with market rules in commercial activities
The reality of compliance with market rules in commercial
activities in the area is still limited. The smuggle, trade fraud, fake
goods, poor quality goods and goods that do not ensure food safety
are quite complicated. In general, the total number of violations of
market rules in Binh Dinh province changed over the years, the
highest violation rate was in 2013 with over 96% of violations on
the total number of inspection cases. Although the number of
violations of market rules is on a downward trend, there are still
potential risks and complicated changes in terms of scale, feature
and scope.
3.2.2.3. The level of meeting customer needs in commercial
activities
The level of meeting customer needs in commercial activities
in Binh Dinh province is not high, most customers' satisfaction level
is quite average. This also reflects a part of unsustainable
development of commerce.

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3.2.3.
Sustainable
development
of
commerce
on
environment through greening commercial activities in Binh
Dinh province
3.2.3.1. Commercial waste and the amount of waste collected and
treated in the province
Situation of commercial waste collection and treatment
Impacts on the environment in trade activities in the province
are mainly from the transportation, circulation of goods and
activities of various types of commercial forms such as markets,
shops, supermarkets, wholesale centers, shopping centers, etc. In
particular, the impact of environmental pollution from commercial
forms, especially from the markes, is an urgent issue that needs to
be addressed. There are many temporary markets, toad markets
and many of them are degraded and the requirements on market
sanitation are not guaranteed. The volume of solid waste in
commerce is quite large and the treatment of solid waste such as
collecting, transporting, treating and recycling commercial activities
is still limited.
Management of commercial solid waste
The
inspection,
supervision
and

guidance
on
the
implementation of regulations and policies on the management of
solid waste in commerce have not been focused; The state
management system at fundamental levels is not sufficient in
number and management ability. Waste collection mainly uses
manual labor which is lack of adequate and long-term investment in
equipment for collecting, transporting, sorting and constructing
proper burial sites and waste treatment technology facilities.
Liquid waste and gas waste in commerce
The impacts on the environment ofcommercial activities in the
province are mainly from the transport and circulation of goods,
especially liquid wastes and fumes emitted from vehicles. There are
still a large number of obsolete vehicles with unsatisfactory exhaust
systems. They are a cause of increase in air pollution. In addition,
recent activities of river transport, sea transport and port operation
have increased sharply, causing the risk of pollution to coastal sea
water.
3.2.3.2. Green logistics in commerce in the province
External transport operations
Goods are transported in the province mainly via road, river
and sea. The volume of goods transported in the province over the
years has the tendency to increase from 9047 thousand tons in


15

2010 to 20035 thousand tons in 2018. Increasing the volume of
transport will lengthen the transport distance of vehicles and as a

result increase in fuel consumption and environmental pollution.
The phenomenon of air pollution in Binh Dinh province mainly in
urban intersections and some concentrated production areas and
traditional handicraft village.
Efficiency in transporting goods
In addition to studying the reduction of external transport
volumes, the efficient allocation of goods can make an important
contribution to reducing traffic congestion, environmental pollution
and saving costs. Currently, logistics services in Binh Dinh province in
general still contain many limitations. The fragmentation of small
orders leads to inefficiency in use of vehicles and increase in
economic costs as well as environmental costs. Besides, the service
quality of logistics enterprises is rather low and has many potential
drawbacks.
Reverse logistics
Recycle and reuse of solid waste in commercial activities in
Binh Dinh has been done in many different and spontaneous forms.
The collection of waste in every street has contributed to cleaning
up and protecting the environment. Processing inorganic waste can
make plastic beads continue to be created into useful products for
society. However, the process of recycling waste manually caused
environmental pollution as well as the affected the health of
workers who involved in the recycling process.
In addition, the reverse logistics line is formed due to the recall
of unsold products for upgrading, defective products to repair, used
products for dismantlement and reuse partially or entirely or for
reuse of packaging. In Binh Dinh province, this recovery activity has
not been focused. Most of the recalls of defective or expired
products are returned to the place of production by either the
trading units or the customers. Processing time for returned goods

is often long and costs a lot of shipping fee.
Besides, to assess the status of sustainable development in
Binh Dinh, the author conducted a review from thethe managers of
the provinceon the situation of sustainable commercial
development in three aspects (economic, social and environmental
issues). The results of the assessment were above average.
However, the evaluation score is relatively low. In addition, the
managers also gave a general assessment of the status of
commercial development in Binh Dinh. The results showed that only


16

about 16% of managers thought that Binh Dinh’s commerce was
sustainable developed, the rest (about 84%) of the managers
surveyed said that Binh Dinh trade was unsustainable developed.
According to the opinion of managers in Binh Dinh province, the
reality of unsustainable development of commerce in Binh Dinh is
due to 6 basic reasons.
3.3.
Assessment
of
factors
affecting
sustainable
development of commerce in Binh Dinh
3.3.1. Institutional and commercial development
environment
The Government as well as Binh Dinh have made many
documents aimed at directing, operating and supporting the

development of commerce. However, the implementation of
documents are still quite slow, lack of topicality and face many
difficulties in implementation. The planning of transportation
infrastructure for commerce is not synchronized and does not meet
the maximum needs of the market.
3.3.2. Commercial infrastructure
The growth rate of commercial infrastructure in Binh Dinh
province has relatively met the demand for trading, exchanging of
goods in line with the provincial socio-economic development level.
However, a number of nucleus commercial infrastructures associated
with the surrounding areas and facilitating economic development
and commerce in East-West economic corridor has not been invested.
Besides, the province's commercial infrastructure such as
warehousing system and market system still has many shortcomings,
means of transportation are outdated, the connection in transport
system is limited, making the sustainable development of commerce
in the province more difficult.
3.3.3. System of commercial enterprises
Firstly, the number of business entities in the field of
commerce of goods tends to increase over the years from 1112
businesses in 2010 to 1770 businesses in 2017. Of which wholesale
enterprises except for automobiles, motorcycles, motorbikes and
other motor vehicles accountedfor the largest proportion. In 2017
the figure accounted for about 64% of the total number of
enterprises operating in the field of commerce of goods.
In addition, the number of individual economic assets engaged
in commodity trading activities in the period of 2010-2018 tends to
go up. In 2017 there is a significant proportion of nearly 45% of the

17

total non-agricultural, forestry and fishery individual economic
assets in the whole province. In 2018, there are 44183 individual
economic assets, accounting for 44,87% of the total nonagricultural, forestry and fishery individual economic assetsin the
whole province.
Secondly, about the capacity of commercial enterprises,
especially in the capital size and net revenue of commodity
commercial enterprises in Binh Dinh province. Average business
capital of commercial businesses in Binh Dinh province tends to
increase over the years, except for 2014 the capital decreased
slightly compared to 2013. In addition, net sales of commodity
commercial enterprises also tend to increase, the average growth
rate in the period of 2010 - 2016 is an increase of about 6000 billion
VND per year. In 2017, the total net revenue of commodity
commercial enterprises in Binh Dinh province plummeted to VND
41.538 billion. On the other hand, the ratio of net revenue to
business capital of commercial enterprises in the province also
fluctuates over the years.
3.3.4. Commercial market in Binh Dinh province
Commercial business activities in Binh Dinh province are
relatively stable and maintain at a fairly high growth rate. However,
due to the volatility of the economy, the purchasing power of
domestic and foreign consumers is limited and unstable. Besides,
suppliers of manufactured goods have not followed the actual
demand or closely link between production and consumption,
especially in the field of agricultural products, leading to unstability
in price of goods. The situation of smuggling, fraud, counterfeit
goods, fake goods, poor quality goods, goods that do not ensure
hygiene and safety for human health and the environment are still

circulated on the market. Because the commercial market in the
area is unstable and limited, sustainable development of commerce
still have to face many difficulties.
3.3.5. Commercial human resources
The total number of employees in enterprises in Binh Dinh
province as well as the total number of employees in commodity
commercial enterprises in Binh Dinh province have the tendency to
increase over the years. As of 2017, the number of employees in
those enterprises reached 13.877 employees. On the other hand,
the proportion of labor in the commodity commercial enterprises
has not changed much over the years, ranging from about 9,45 –


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11,05% compared to the total labor force in the enterprises of the
province. In addition, the number of employees in non-agricultural,
forestry and fishery in individual economic assets in commodity
commercial activities accounts for about 34-37% of the total
number of employees in non-agricultural, forestry and fishery
individuals economic assets in the province and unstable over the
years. In 2018 the number of employees reached 57.393 people.
Furthermore, productivity of commercial labor in Binh Dinh province
is unstable, showing unsustainable development in commerce.
In addition, the factors affecting the sustainable development
of commerce in Binh Dinh province are assessed by managers as
being at average level.
3.4. General assessment on the reality of sustainable
development of commerce in Binh Dinh province
3.4.1. Results and achievements

Firstly, sustainable development of commerce in Binh Dinh has
obtained positive results, domestic commercial activities and
import-export activities have grown steadily over the years.
Secondly, in order to bring the commercial activities in the
province into market rule, the fight against smuggling, trade fraud,
counterfeit goods, poor quality goods and unsafeted food has been
strengthened in the local area.
Thirdly, in order to positively contribute to the local state budget
and GRDP of the province, the value added in local commerce in many
years has generally reached a higher state than some provinces in the
key economic region of the Central region.
Fourthly, the state management on commercial activities has
been built and implemented uniformly by state authorities in Binh
Dinh province.
Fifthly, in order to contribute to improving the efficiency of
commerce reducing logistics costs, the infrastructure of province
had several developments, step by step meeting the needs of
development in commercial activities.
Sixthly, the number of enterprises operating in commodity
commercial and the number of individual business in the
commercial activities tend to increase in terms of quantity and
business abiliity.
Finally, the number of employees who are attracted to work in
commodity commercial enterprises and the number of employees
working in non-agricultural, forestry and fishery individual economic


19

asstets in commodity trade tend to increase.

3.4.2. Limitations and reasons
Firstly, the commercial infrastructure and logistics is weak,
unconnected and developed synchronously. The reason is that the
local capital is limited and there has been no investment in a
number of commercial infrastructures as a nucleus to associate with
the surrounding areas.
Secondly, the institutional environment and the law on trade
development are still limited. The reason is that the implementation
documents are still quite slow, lack of topicality, there are still many
difficulties in the implementation and the planning of transport
infrastructure for the trade is not synchronized.
Thirdly, human resources specialized in commerce are lacking
and the working efficiency is not high. The reason is that the
commercially trained human resources are still quite limited and the
knowledge, soft skills, professional business skills as well as the
management ability of the current commercial human resources are
still limited.
Fourthly, commercial enterprises do not have the
cooperations, conections and efficiency in product supply chain in
commerce, there is still a situation of "every man for himself".
Fifthly, the growth rate of commerce, specifically the growth
rate of export turnover of goods as well as total retail sales of goods
and service revenue tend to decrease and have not reached the set
targets. In addition, the value added of commercial commodities in
Binh Dinh province and the level of contribution of commercial
commodities in the province's GRDP also fluctuated over the years.
The first reason is due to the unpredictable changes in market
and commercial promotion activities in the country and abroad
have not been paid much attention in Binh Dinh province. The
second reason is that most of Binh Dinh province's exports are at a

low value in the overall value chain. On the other hand, the
province's sea transport activities are not commensurate, logistics
services do not meet the requirements and the service fee is much
higher than that of neighboring local ports.
Sixthly, the development of commerce in terms of society is
not sustainable. Specifically, the average income of workers in the
commodity trading enterprises in Binh Dinh tends to be unstable
and is lowest among the provinces of the Central key economic
region. On the other hand, the level of meeting customers' needs
for goods trading activities in Binh Dinh province is not high. In


20

addition, violations of market principles such as smuggling, trade
fraud, counterfeit goods, poor quality goods and unsafe goodsare
frequent. The reason is that the balance between supply and
demand of goods is not really good and the stability is unsured.
Moreover, the fight against smuggling, trade fraud, counterfeit
goods, poor quality goods and unsafe goods are still inadequate.
Last but not least, waste from commercial activities has a
negative impact on the environment and the waste process is not
really effective. The first reason is that the volume of waste is quite
large and the waste processin commerce is still limited since
advanced and environmentally friendly technologies have not been
used. Secondly, the propaganda to raise awareness and
responsibility of the community about environment has not been
paid enough attention. Finally, there are no clear laws on waste
process or policies to encourage the use of environmentally friendly
energy in commercial activities.

_______________________________
CHAPTER 4: ORIENTATIONS AND SOLUTIONS FOR
SUSTAINABLE DEVELOPMENT OF COMMERCE IN BINH DINH
PROVINCE TILL 2025 AND A VIEW TO 2030.
4.1. Objectives, directions for socio-economic development
and requirements for sustainable development of commerce
of Binh Dinh Province until 2025 and a view to 2030
4.1.1. Forecast of international and domestic contexts
sustainable development of commerce in Binh Dinh province
4.1.1.1. International context
- The Comprehensive and Progressive Agreement for TransPacific Partnership comes into effect in conjunction with the EUVietnam Trade Agreement expected to be approved in 2019 and a
number of management and operating systems suitable with
integration trend has created a great driving force for economic
growth of Vietnam.
- Currently, Binh Dinh enterprises have not been greatly
affected by commercial and technical barriers or put a tax on antidumping duties from importing countries such as the United States,
South Korea and Turkey.
- Global growth, market size and demand for goods have been
reduced, the world’s market is potentially unstable and
unpredictable. Many importing countries will increase the protection


21

of domestic production, apply many trade barriers, making the
export of Binh Dinh difficult.
4.1.1.2. Domestic context
- The economy of the whole country is changing positively, but
it is forecasted that the economies of other countries still face many
difficulties, the market of goods consumption and the input costs of

production are not stable. Therefore, production and business
activities of domestic enterprises face many difficulties.
- In Binh Dinh province, businesses have been supported by
state management authorities to overcome difficulties but it is
forecasted that in the coming time, the commerce of Binh Dinh
province will still face many challenges and difficulties.
4.1.2.
Socio-economic
development
objectives
and
directions of Binh Dinh province till 2025 and view to 2030
4.1.2.1. The goals of socio-economic development of Binh Dinh
province
The overall objective of socio-economic development of Binh
Dinh province is having sustainable economic growth and
development, restructuring economic and labor; industrialize,
modernize urban areas and enhance the province's position in the
coastal areas of South Central, Central Highlands and Southeast
Asia. In addition, the common goal is to promote the strategic
position and potential of the marine economy, build an urban-rural
system in Binh Dinh province for sustainable development in the
socio-economic fields, improve quality of people's life, protect
environment, ensure thesecurity and national defense.
4.1.2.2. Orientation for socio-economic development of Binh Dinh
- Focus on developing industries and handicrafts, especially
industries that have advantages in raw materials sources in the
direction of increasing the proportion of refined goods.
- Focus on developing the agricultural sector in line with the
direction of manufacturing production for export.

- Focusing on developing the fishery industry to become a
strong industry of the province.
- Focusing on exporting products that are the strengths of Binh
Dinh and exports in the direction of increasing the proportion of
refined goods.
- Focus on developing the service and tourism industry.
- Constructing and developing transport infrastructure
synchronously.


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- Focusing on the matters of population, labor and job creation.
- Strengthening medical development.
- Paying attention about environmental protection.
4.1.3. Requirements for sustainable development of
commerce in Binh Dinh
- Strengthening connectivity and modernization of transport
infrastructure.
-Modernizing commercial infrastructure, paying attention to
building and developing a modern commercial infrastructure
system.
- Focusing on investment in logistics system and warehousing
system.
- Connecting goods distribution network
- Investing in waste from commercial activities processing
systems and taking measures to protect and improve the
environment during the commercial development process.
- Commercial enterprises in the province should have
cooperation, links with each other and operations must follow

market principles, prevent cheating in commercial activities.
- Developing human resources, especially high quality
commercial human resources.
4.2.
Objectives
and
orientations
for
sustainable
development of commerce in binh dinh province
4.2.1. The objective of sustainable development of
commerce in Binh Dinh
The overall objective of sustainable development of commerce
in Binh Dinh is to build and strongly develop commerce in the
orientation of modernization based on reasonably structure the
industry with the participation of all economic sectors, operating in
the competitive market environment which is managed and
regulated by the state. On that basis, enhancing the role of
commerce by increasing the value of contribution to the GRDP of
the province, attracting social labor, creating new jobs, linking
production with consumption, leading production oriented to market
demand and improve the livingquality of people. Besides,
environment must not be traded with the development of
commerce and should bedevelopedin an environmentally friendly
way.