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.
Trang 1MINISTRY 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
Trang 2The 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
Trang 3INTRODUCTION
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
Trang 4economic 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
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),
Trang 5The 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
Trang 6integration; (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
Trang 7documents, 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 level locality during international economic integration
province-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
Trang 82.1.1.4 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 non-tariff zones and tariff zones (iii) In the field of investment: EZs allow multi-sector 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
Trang 92.1.2.3 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
Trang 10obstacles; 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
Trang 11to 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
Trang 12administrative 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
Trang 13Committees 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