Therefore, in order to develop Vietnam's economy and society sustainably in theperiod of international integration, it is necessary to formulate strategies and solutions for trade-orient
Trang 1MINISTRY OF EDUCATION AND TRAINING
THUONG MAI UNIVERSITY
-Le Nguyen Dieu Anh
TRADE-ORIENTED SUSTAINABLE DEVELOPMENT IN THE CONTEXT OF INTERNATIONAL INTERGRATION IN VIETNAM
Major: Economic Management
Code: 934.04.10
Dessertation summary
Hanoi, 2020
Trang 2The desseration is completed at Thuong mai University
Supervisors:
1 Asso Prof Dr Ha Van Su
2 Asso Prof Dr Pham Thuy Hong
Reviewer 1: Asso Prof Phan To Uyen
Reviewer 2: Asso Prof Nguyen Thi Nguyet
Reviewer 3: Asso Prof Vu Thi Kim Oanh
The dessertation will be upholded in the University's Dessertation Evaluation Council
Meeting at the Thuong mai University
At…… time …… date ……… month ……… year ………….
The dissertation can be found at: National Library
Library of Thuong mai University
Trang 31 Rationales of the research
Globalization is becoming an objective trend of countries all over the world Participating
in globalization and international integration brings many benefits such as developing importand export, expanding markets, contributing to boosting production forces However, itsnegative impacts on almost aspects of the socio-economic life of nations are significant,especially for developing and underdeveloped countries International integration plays animportant role in promoting the export, especially raw materials and semi-processed goodsexport, which may lead to the exhaustion of natural resources and serious environmentaldamage Warnings about an unsustainable development are issuing a challenge to countrieswhich participate in international integration
Sustainable development is a stable economic development associated with ensuring socialsecurity and protecting the ecological environment, or sustainable development is the developingprocess of today's generation without harming to future generations In the process ofinternational integration, opening markets and strengthening integration with the goal of ensuringtrade-oriented sustainable development is an urgent issue which is attracting the attention of theState, organizations and all members of society It is necessary for countries to develop a trade-oriented sustainable development strategy consistent with their own strengths and advantages Atruly sustainable trade policy will also avoid excessive reliance on natural resources,commitment to high environmental standards in trade agreements, and the reduction on air andwater pollution
Relating to Vietnam, globalization and international integration have brought significantstrides to Vietnam's economy From a poor and food-poor country after the war in 1975,Vietnam has become one of the world's leading exporters such as rice and coffee In general,total export turnover of Vietnam in recent years was higher than the previous years; in 2019 itincreased 8.1% compared to 2018, reaching 263.45 billion USD and was the fourth consecutiveyear of trade surplus However, the impacts of international integration and trade liberalizationhave had a significant impact on economic sustainability, social equality, and a rapid increase inthe gap between the rich and the poor, ecological environment, and environmental pollution Themarine ecosystem is seriously affected, the mineral resources are in danger of being exhausted,and the area ofnatural forests is being degraded and lost at an unstable pace In the process ofinternational economic integration, trade has become a pioneer, with trade relations paving theway for official diplomatic relations between nations Trade development is the way to exploitthe potentials and strengths of the country, attract foreign investment, accelerate theindustrialization and modernization of the country, aiming at the goal of sustainabledevelopment Therefore, in order to develop Vietnam's economy and society sustainably in theperiod of international integration, it is necessary to formulate strategies and solutions for trade-oriented sustainable development in the context of international integration in Vietnamnowadays
In terms of theory, there have been studies on trade-oriented sustainable development ingeneral and for regions in particular However, there has been no research developing a complete
Trang 4theoretical framework, especially considering the impact of international integration,multidimensional impacts on trade in general, and the impact of unsustainability such aseconomic vulnerability, financial crisis, unemployment, widening the gap between the rich andthe poor, environmental pollution In-depth study of trade-oriented sustainable development inthe context of international integration is essential, which may contribute to develop theoreticaland practical management situations.
Therefore, the topic " Trade-oriented sustainable development in the context of international integration in Vietnam" is selected for the research; it has both theoretical and
practical implications
2 Literature reviews
The author has summarized the local and international studies related to the research topic
in the following groups
2.1.1 Sustainable development
First of all, the studies about sustainable development include: Our common future of
WCED (1987), “Beyond Economic Growth: An Introduction to Sustainable Development” of
Tatyana P Soubbotina (2004), Peter P Rogers, Kazi F Jalal và John A Boyd (2007), Dinh Van
An (2005) về "Perspective and reality of fast, high-quality and sustainable socio-economicdevelopment in Vietnam"; Le Xuan Dinh (2005), 'Sustainable development is a guarantee ofsocialist orientation of market economy in Vietnam', Ministry-level project "Sustainabledevelopment from concept to action" of author Ha Huy Thanh in 2009, Institute for EnvironmentResearch and Sustainable Development Report of the United Nations Industrial DevelopmentOrganization - UNIDO 2012, "Towards green growth from green industry development inVietnam"
2.1.2 Trade and trade-oriented sustainable development
The related studies include: Author John Asafu-Adjaye in 2004 with the work
"International trade and sustainable development in Sub-Saharan Africa"; UNEP report
"Sustainable Trade and Poverty Reduction: New Approaches to Intergrated Policy Making at the National Level" in 2006; Research by Chen Jiyong, Liu Wei and Hu Yi in 2006 on "Foreign trade, environmental protection and sustainable economic growth in China”; the research done
by Moustapha Kamal Gueye, Malena Sell, Janet Strachan 2009 on "Trade, climate change and
sustainable development: key issues for small states, least development countries and vulnerable economic"; and Author Paul Hawken (2013) in the book "The Ecology of Commerce".
2.1.3 Trade-oriented sustainable development in international context
a Trade-oriented sustainable development in international context
The group of authors Grant Hewison, Veena Jha and Maree Underhill (1997) published the
book "Trade, Environment and Sustainable Development: A South Asian Perspective"; The World Trade Organization (WTO) published the book "Trade, Development and the Environment" in 2000; Wiliam R Cline (2004) conducted a research on "Trade Policy and Global Poverty"; Zoltan Ban’s research in 2012 on "Sustainable Trade: Changing the Environment the Market
Operates in Through Standardized Global Trade Tariffs paperback"; and Paul Ekins’s study on
"Trade, Globalization and Sustainability Impact Assessment: A Critical Look at Methods and
Trang 5Outcomes" in 2012.
A number of studies of the Ministry of Industry and Trade, Ministry-level scientific
research projects such as "Main solutions to develop trade following the approach of sustainable
development in the context of Vietnam's international economic integration" by Ha Van Su in
2004; PhD thesis in economics on "Solutions to enhance state management of environmental
protection in order to develop Vietnam's trade in the context of international economic integration" by Doan Thi Thanh Huong in 2008, Commercial Research Institute; Economic
doctoral thesis on "Sustainable export in Vietnam in the process of international economic
integration" (2009) by Ho Trung Thanh, University of Economics, Vietnam National University,
Hanoi; Ha Thi Thanh Binh’s research in 2012 on "Protection of trade in the context of
international economic integration and the adjustment effect of Vietnamese law".
b Evaluation criteria on Trade-oriented sustainable development
The following studies and materials are related to the above-said topics: Thomas M Parrisand Robert W Kates (2003); United Nations (1996); 1995 United Nations Committee forSustainable Development (CSD); CGSDI Sustainable Development Goals (1999) Book (OECD,2011b); World Bank (WB, 2012); R Prescott Allen (2001), The World Conservation Union haspublished the Well Being index (WI)
In addition, Mathis Wackernagel (2003) has developed Ecological footprint;Environmental sustainability index of the World Economic Forum (2002); Decision No 432 /QD-TTg dated 12 April 2012 promulgating the monitoring and evaluation indicators forVietnam's sustainable development period 2011-2020; UNCTAD (2016) developed a set of tradeindicators to assess Efficient commercial price of the nation; The Economist Intelligence Unit(2016) developed the Asia Sustainable Trade Index
2.1.4 Elements affecting Trade-oriented sustainable development in globalization context
The studies of Kris MYLaw (2010), Liu Ligang (2001), Liu Bangcheng and Jiang Taiping(2000), Wu Yingyu (2003), Vittorio, Raffaella & Giuliano (1999), Yang Mei (2016), Research ofJianteng Xu, Yuyu Chen and Qingguo Bai (2016), Ho Trung Thanh (2009), Duong Thi Tinh(2015, Nguyen Thanh Hoai (2012)
In the content of this review, besides pointing out the scientific values (theoretical andpractical) inherited, the PhD student also identified the research gap of the thesis topic
3 Aims of the research
The dissertation studies the scientific basis (both theoretical and practical) to proposesolutions for trade-oriented sustainable development in Vietnam in the context of internationalintegration by 2025 and the following years
4 Objectives of the research
To achieve the objectives of the project, it is necessary to focus on the following tasks:
Firstly, systematize and build the basic principles of trade-oriented sustainable
development of countries such as: the essence and role of trade-oriented sustainabledevelopment; Contents and criteria for evaluating trade-oriented sustainable development in thecontext of international integration
Trang 6Secondly, analyze and assess the current situation of trade-oriented sustainable
development in the context of international integration in Vietnam, linking the relationshipbetween trade and environmental protection and trade with social issues
Thirdly, analyze and assess the status of trade-oriented sustainable development policies in
the context of international integration in Vietnam
Fourthly, analyze the impact of factors affecting trade-oriented sustainable development in
the context of international integration in Vietnam
Fifthly, explain the existing problems in the implementation of trade-oriented sustainable
development in our country when facing the challenges brought about by internationalintegration, pointing out the advantages and experience lessons, limitations and causes ofVietnam's trade-oriented sustainable development
Sixthly, give some appropriate perspectives, directions and solutions for the reality of the
research situation in the period of 1995-2019, with orientation to 2025 and the following yearsfor trade-oriented sustainable development in the context of international integration in Vietnamand in accordance with the orientation of the State
5 Subject(s) and scope of the research
5.1 Subject(s) of the research
The subject of the thesis is the theories and practices of trade-oriented sustainabledevelopment in the context of international integration in Vietnam
5.2 Scope of the study
In terms of content: The dissertation only focuses on trade development research based onsustainable approach associated with the results of trade development achieved in terms of bothdomestic and import-export trade; Only examines the comprehension of of trade-orientedsustainable development but focuses on factors due to the impact of international integration,especially international economic integration
Trade, in the broad sense of the WTO, includes both goods trading and services trading.However, services trading is a very broad sector (there are 12 sectors and 155 sub-sectors).Moreover, the dissertation is specialized in economic management, the trade approach is usuallygoods trading (including domestic trade and import-export trade), and related to the mode ofwholesale and retail, franchises and agents This will be consistent with Vietnam, with trademanagement of goods managed by the Ministry of Industry and Trade Therefore, the scope ofthe dissertation is Vietnam's goods trading, and it focuses on domestic trade and import-exporttrade
In terms of space: The dissertation mainly focuses on trade development in the context ofinternational integration, domestic and import-export goods trading, and focuses only ondevelopment issues associated with demand for sustainable development
In terms of time: The dissertation studies the current situation of Vietnam's trade-orientedsustainable development from 1995 to 2019 and proposes views and solutions by 2025 andfollowing years
6 Research methodology
Trang 7a Methods of analyzing and summarizing theory: This method is used to serve the study of
document overview, to build a theoretical basis for the dissertation topic By linking the aspects,parts, information relationships from the collected theories into a whole, it creates a completeand deep theoretical system of trade-oriented sustainable development
b Method of classifying and systematizing theory: This method is used in the study
overview, systematizing theory to build concept, content, evaluation criteria, views and policies
of the State on trade-oriented sustainable development
c Methods of collecting and processing data
- Qualitative research: This method is used in researching the comprehension of oriented sustainable development, policy evaluation, and trade-oriented sustainable developmentorientation of Vietnam Secondary data is collected from statistical inventory, reports of statemanagement agencies, organizations, enterprises, inheriting previous studies related to the topic
trade Quantitative research: This method is used in collecting, statistically describing data,testing models, estimating variables and assessing the impact of factors affecting trade-orientedsustainable development in Vietnam in the context of international integration under the ARDLmodel, on the basis of secondary data sources of the General Statistics Office, WB,Tradingeconomics,
d Method of totaling up and comparing: This method is used to summarize documents, collate
between stages, different areas; Using the system of tables and figures to show the scale andquality of trade-oriented sustainable development in Vietnam in the context of internationalintegration
7 Scientific and practical significance of the research topic
7.1 Theoretically
The research contributes to systematize and develop the theory of trade-orientedsustainable development; clarify the content and nature and the relationship between tradedevelopment, environmental protection and social issues
The research analyzes the impacts of globalization and international integration on oriented sustainable development; conditions to ensure trade-oriented sustainable development ininternational integration
trade-The research analyzes case studies of trade-oriented sustainable development from anumber of countries around the world; trade-oriented sustainable development indicators system.The research builds appropriate models which can apply to assess the impact of factorsaffecting trade-oriented sustainable development in Vietnam in the context of internationalintegration
Trang 8The research forecast trade-oriented sustainable development trends of Vietnam and itsimpacts on environment and society in the upcoming time.
The research proposes orienting solutions to Vietnam’s trade-oriented sustainabledevelopment in the context of international integration by 2025 and the following years
8 Research organization
The dissertation includes three chapters:
Chapter 1: Theoretical basis and practical experience on trade-oriented sustainabledevelopment in the context of international integration
Chapter 2: Analyzing and assessing the current situation of trade-oriented sustainabledevelopment in Vietnam in the context of international integration today
Chapter 3: Perspectives and key solutions to develop trade-oriented sustainabledevelopment in the context of Vietnam's international integration by 2025 and the followingyears
Chapter 1 THEORETICAL BASIS AND PRACTICAL EXPERIENCE OF TRADE ORIENTED SUSTAINABLE DEVELOPMENT IN THE CONTEXT OF
-INTERNATIONAL INTEGRATION
Trang 91.1 THE NATURE AND THE NECESSITY OF TRADE-ORIENTED SUSTAINABLEDEVELOPMENT IN THE CONTEXT OF INTERNATIONAL INTEGRATION OFCOUNTRIES NOWADAYS
1.1.1 Basic issues about development and sustainable development
Growth and development are two sides of social development and are closely related Ifeconomic growth only focuses on bringing economic benefits to a population group or an areabut does not bring economic benefits to the society, economic growth will increase the socialinequality Such growth methods are short-term, do not promote development and will beeliminated
The most widely used and accepted definition of sustainable development is WCED’s
(1987), sustainable development is the development that meets current needs, but does not
hinder the ability to meet the needs of future generations The goal of sustainable development is
to achieve material adequacy, spiritual and cultural wealth, civic equality and social consensus,harmony between human and nature
The three intersecting circle model is most commonly used to describe sustainabledevelopment (Barkemeyer, 2014) Sustainable development is the intersection of the middle -where three areas are unified Although there is a lot of debate about the sustainable developmentmodel, the three intersecting circle model is still accepted worldwide, it helps to conceptualizethe concept of sustainable development (Peeters, 2012) The circles represent the differencebetween sustainable development with specific policies and political issues, proposing a holisticand complementary concept for sustainable development
1.1.2 The nature of trade-oriented sustainable development
1.1.2.1 Definition and objective of trade-oriented sustainable development
a Commercial concept
Viewed from the perspective of social division of labor, trade is considered as anindependent economic sector of the economy Within the framework of this thesis, trade isapproached as goods trading and is viewed from an economic perspective The trade industryspecializes in organizing, circulating goods and providing services to society through purchasingand selling in order to make profits Trade developing, smooth circulation of goods manifests thehealthy and prosperous economy
b The concept of trade-oriented sustainable development
From the perspective of approaching trade development towards sustainable developmentgoals, the concept of trade-oriented sustainable development in this thesis is given as follow:
Trade-oriented sustainable development is the development that the results of trade development meet the requirements of sustainable development, which is manifested by the rapid and stable development of scale, reasonable structure and quality assurance for growth and poverty reduction and environmental protection.
Continuous trade growth, containing many risks when fluctuations appear due tounreasonable structure, causing macroeconomic instability; or export growth but mainly based
on natural resources, which leads to the exhaustion of natural resources, environmental pollution;
or export only benefits the group, causes social inequality it is not a trade-oriented sustainable
Trang 10development trade-oriented sustainable development must be export development whose resultsmeet the requirements of sustainability - macroeconomic stability, job creation, povertyreduction and environmental improvement
c Trade-oriented sustainable development goals
Firstly, developing trade scale towards sustainability Trade-oriented sustainable
development must maintain a fast, stable and long-term growth rate in terms of scale and speed
of domestic and international trade
Secondly, developing trade structure towards sustainability Ensuring quality of trade
based on sustainable of trade structure and production; improving the competitiveness of goods
in the international market, participating in the global value chain integrating successfully by-step into the regional and world economy
step-Thirdly, ensuring the quality of trade-oriented sustainable development Increasing the
added value of trade, increasing the proportion of high-tech goods, reducing the proportion ofraw products; strengthening capacity and efficiency to participate in global value chains Theresults of trade-oriented sustainable development contribute positively to the sustainabledevelopment of the economy, macroeconomic stability
1.1.3 The need for trade-oriented sustainable development in the context of international integration of countries today
Integration has become a major trend of the modern world, strongly affected international
relations and the life of each nation International integration is the process of linking and
cementing countries / territories together based on the sharing of interests, goals, values, resources, power and compliance with common rules within international institutions or organizations to create collective power to resolve common issues of common interest.
Economic integration is a very important foundation for the sustainable existence of integration
in other fields, especially political integration and in general, priority promoted by countries as alever for cooperation and development in the context of globalization
a The necessity of trade-oriented sustainable development in the context of international integration
Firstly, the process of trade development has made a big difference in the level of
economic, cultural and income development across regions, which results from the differences ininfrastructure and communication systems, information, transportation, investment capital, laborqualifications, leading to differences in market access capacity Since then, the gap between therich and the poor among social classes, between regions and each other become bigger
Secondly, in the context of international integration and globalization, the country wants to
take advantage of international investment flows, advanced technology flows, modern scienceand technology to develop the economy must actively and proactively open the economy,liberalize trade
Thirdly, the import of old and outdated equipment causes pollution of the ecological
environment Therefore, it is very necessary for countries to develop a trade-orientedsustainable development strategy in accordance with their strength and its national advantages inthe context of international integration
Trang 11b Issues raised for trade-oriented sustainable development in the context of international integration of countries today
- They must have full understanding of international integration and trade liberalization
- There must be a development strategy and appropriate steps in each period ofinternational integration
- There must be a strong and effective State apparatus to stabilize the political situation andmanage the economy to maintain the direction on the basis of ensuring the independence,autonomy and sovereignty of the nation, focus on the right role functions, create commonconditions, leverage and motivation
- The goal of successful international integration and ensuring the sustainable development
of the country must be based on the domestic strength as the main force, internalize the externalforces and enhance the national position
1.2 CONTENTS AND AFFECTING FACTORS TO TRADE-ORIENTED SUSTAINABLEDEVELOPMENT OF COUNTRIES IN THE CONTEXT OF INTERNATIONALINTEGRATION
1.2.1 Content and criteria reflecting the trade-oriented sustainable development of countries in the context of international integration
1.2.1.1 Basic content of trade-oriented sustainable development of countries in the context of international integration
a Developing trade scale towards sustainability
It is essential to expand the domestic market, strongly develop domestic trade, developgoods with competitive advantages, and build domestic goods brands; ensure the quantity andstructure of goods circulating smoothly throughout the country, especially the rural and remoteareas
It is essential to develop export and import activities, enhance the added value from tradeand export goods capacity into the global value chain; diversify import and export markets,diversify relationships, expand trade relations with countries around the world
b Developing trade structure towards sustainability
Shifting actively the export-oriented trade structure, this can contribute to create aneconomy with a reasonable economic structure, promoting the country’s comparative advantage,fitting with markets and international labor division
Shifting trade growth mainly from width to depth, using effectively scientific andtechnological achievements to improve labor productivity, improve the competitiveness ofcommodity products and improve the efficient use of investment capital
Developing long-term strategy on structure of exporting products
Changing goods circulation model towards cleaner and more environmental - friendlybasing on the economical use of non-renewable resources, minimize toxic waste and difficult todecompose waste
c Ensuring the quality of trade-oriented sustainable development
Increasing the added value of trade, increasing the proportion of high-tech goods, reducingthe proportion of raw products; strengthening capacity and efficiency to participate in global
Trang 12value chains The results of trade-oriented sustainable development contribute positively to thesustainable development of the economy, macroeconomic stability, associated with the rationaluse of natural resources, biodiversity conservation, and is linked to the goal of poverty reductionand social justice through jobs for workers and creation of high value-added jobs.
1.2.1.2 Criteria reflects trade-oriented sustainable development in the context of international integration
a Scale of trade-oriented sustainable development
Growth of gross retail sales of goods
Growth of gross retail
Gross retail sales of goods t n - Gross retail sales of goods t n-1
x 100% (2.1) Gross retail sales of goods t n
This index maintains a stable growth rate of total circulating goods in the research period
to ensure the sustainable development
Growth rate of goods export-import turnover
During the transition period, the current trade deficit must ensure a future surplus; goodsexport and import turnover tend to grow rapidly, continuously, stably and in combination withreasonable trade structure, showing a trade-oriented sustainable development
b Trade-oriented sustainable development structure
Export (Import) structure
by commodity group/SITC/
Export (Import) value by commodity group/ SITC/market
x 100 (2.4) Total Export (Import) value
c Trade-oriented sustainable development quality
Join the global value chain
For the goal of trade-oriented sustainable development, the trend of participating in theglobal value chain is the shift from participation in simple, low value-added production to oneswhich have higher added value like R&D, design, marketing, distribution
Developing trade in association with social goals
- Number of commercial workers in the country's total labor force
Proportion of commercial
Number of commercial workers
x 100 (2.8) Total national labor
- Commercial labor income over the average labor income of the whole country
The average income of a worker in the trade is the total amount of money and items value
of labor earned in the trade, averaged over a given period, reflecting the living standard of theemployee, the real business status of enterprises, is the basis for making trade policies
Trade development is associated with environmental protection
Trang 13Criteria for assessing the trade-oriented sustainable development in terms of environmentare the level of non-renewable resources exploitation and use, expressed through the ratio ofnon-renewable resources export to GDP (Antoni) 2005).
Ratio of Export non-renewable
trade-1.2.2 Factors affecting trade-oriented sustainable development
1.2.2.1 Group of factors relating to the economic development model
The economic growth model has a guiding role for economic development strategies ingeneral and trade development in particular at different stages Commercial laws, policies andinstitutions directly affect trade-oriented sustainable development, which requires each country
to develop a reasonable trade development strategy and suitable plan to the economy in thecontext of trade liberalization and international integration
1.2.2.2 Group of factors relating to globalization and trade liberalization
Urs Zollinger et al (2007) believed that globalization positively affects trade-orientedsustainable development
a Labor: UNCED (1992) stated that man is the center of all development; all development isdirected to the man In the context of globalization and international integration, fiercecompetition, the victory will belong to countries with high-quality labor, a favorable legalenvironment for investment, and a stable political-social environment
b Science and technology Sharon Beder (1994) argued that science and technology helpcontinuous economic growth in a finite world through finding new sources or providingalternatives, reusing resources effectively most
c Competitiveness of the business Liu Ligang (2001) argued that competitiveness is one of thefactors affecting trade-oriented sustainable development According to United Nations (2015),competition helps businesses improve efficiency, promote innovation, and improve productsquality
1.3 INTERNATIONAL EXPERIENCE AND LESSONS LEARNED FOR VIETNAM ONTRADE-ORIENTED SUSTAINABLE DEVELOPMENT
From the experiences of other countries on combining trade and environmental policies,some lessons for Vietnam can be drawn as follows:
Firstly, it is to preserve an open market economy model and regional and international
economic integration based on export growth of processed food and manufacturing industries onthe basis of promoting positive comparative advantages of the country
Secondly, it is to adjust the structure of the economic sector in the direction of
"shortening", moving from the structure of development of labor-intensive industries to thosewith high capital and advanced technology, which are capable of coping with the process ofregional and international economic integration