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THAI NGUYEN UNIVERSITY UNIVERSITY OF ECONOMICS AND BUSINESS ADMINISTRATION PHAM HOAI NAM MOBILIZING INVESTMENT CAPITAL TO DEVELOP SOCIO-ECONOMIC INFRASTRUCTURE IN THAI NGUYEN PROVINCE Major: ECONOMIC MANAGEMENT Code: 9.34.04.10 SUMMARY OF DOCTORAL DISSERTATION IN ECONOMICS THAI NGUYEN - 2022 THE THESIS IS COMPLETED AT UNIVERSITY OF ECONOMICS AND BUSINESS ADMINISTRATION Supervisors: Assoc.Prof.Dr Tran Dinh Tuan Assoc.Prof.Dr Do Thi Thuy Phuong Reviewer 1: Reviewer 2: Reviewer 3: The thesis will be defended at the Dissertation Council of University of Economics and Business Adminstration At: ……date month year 2022 The thesis can be found at: - National Library of Vietnam - TNU Digital Center - Thai Nguyen University - Library at Thai Nguyen University of Economics and Business Administration DOCUMENTS RELATED TO THE DOCTORAL DISSERTATION Pham Hoai Nam (2018), “Public-private partnership in infrastructure sector through case analysis of Korea and Chile”, Review of Finance, Term - April 2018 (678), Pages 91- 93 Pham Hoai Nam (2018), “Local government bonds, capital mobilization channel for investment and development of infrastructure in Thai Nguyen province”, Journal of Financial and Accounting Research, No 04 (177), Pages 61 - 63 Pham Hoai Nam, Do Thi Thuy Phuong (2020), “Using Explore Factor Analysis (EFA) Method to Assess the Effects Impact on Mobilization of Investment Capital for Socio-Economic Structure Development in Thai Nguyen Province, Vietnam”, International Journal of Business and Management, Volume Issue 9: 104 -113 Pham Hoai Nam, Do Thi Thuy Phuong (2020), “The Situation of Mobilizing Investment Capital Sources for Socio-economic Infrastructure Development in Thai Nguyen Province, Vietnam” International Journal of Business and Management, Volume Issue 10: 257-264 INTRODUCTION Regarding rationale of the Study Thai Nguyen province, with its position as the political, socio-economic center of the Northern midland and mountainous region, is the gateway for socioeconomic exchanges between the midland and mountainous region and the Northern Delta Thai Nguyen not only links with Hanoi and other provinces in the region, but also connects with seaports such as Hai Phong, Quang Ninh, border gates with China in the North, this is a great advantage of the province in order to develop regional socio-economics in general and the province in particular The Resolution of the 20th Thai Nguyen Provincial Party Congress identified synchronous infrastructure development as one of the strategic breakthroughs for the province's socio-economic development in the 2021-2030 period From 2015 to 2019, the socio-economic infrastructure investment capital in Thai Nguyen province reached VND 38,204.6 billion, 1.6 times higher than the period 2010 2014, the average growth rate reached 6.1% The scale of investment capital is increasing, the capital structure is increasingly diversified Many infrastructure projects on traffic, irrigation, renovating and upgrading the power system, communication infrastructure, culture and society, etc have been put into operation, contributing to socio-economic development of Thai Nguyen province However, the reality shows that the system of socio-economic infrastructure construction of Thai Nguyen province is not synchronized, the number of highquality construction is still small; Although the traffic network has been invested in renovation and upgrading, it has not yet met the requirements; multi-purpose infrastructure constructions are few, the investment efficiency is low due to lack of coordination in planning and management of traffic planning with irrigation, water supply and drainage, services, tourism training and education units are still lacking in quantity, weak in quality, not meeting teaching and learning requirements; medical facilities and the medical servic quality have not met the demands, etc Besides, the mobilization of investment capital for socio-economic development still has many shortcomings The total investment capital for socio-economic development in the period 2015 - 2019 has only met 52.2% of the investment capital demand, of which the government development investment capital has met 78.6%; development investment capital of private and residential areas met 41.2%; ODA (Official development assistance) capital meets 25.4% and has not yet mobilized FDI (Foreign Direct Investment) capital In the period of 2021 - 2025, the provincial socioeconomic development investment capital demand is 84,472.6 billion VND, but the ability to mobilize investment capital is about 52,631.9 billion VND, meeting 62.3% of the demand of infrastructure investment capital With the goal of turning Thai Nguyen province into a modern industrialized povince by 2030, a socio-economic center, is a growth pole with a spillover effect on the entire Northern midland and mountainous region, the study of solutions to "Mobilizing investment capital to develop socio-economic infrastructure in Thai Nguyen province" in order to increase the mobilization of investment capital for socio-economic development of Thai Nguyen province in the coming period is highly urgent and meaningful in both theory and reality, contributing to solving the difficult requirements that mentioned above Research objectives of the thesis The thesis is carried out to propose solutions to promote the mobilization of investment capital for socio-economic development in Thai Nguyen province, contributing to achieving the socio-economic development goals to 2025 and a vision to 2030 2.2 Specific objectives - Systematize and contribute to clarifying theoretical and practical issues on the mobilization of investment capital for socio-economic infrastructure development in Thai Nguyen province - Assess the current situation and point out the difficulties, obstacles and limitations in the activities of mobilization of investment capital for socioeconomic infrastructure development in Thai Nguyen province - Analyze factors affecting the mobilization of investment capital for socioeconomic infrastructure development in Thai Nguyen province - Propose solutions to increase the mobilization of investment capital for socio-economic infrastructure development in Thai Nguyen province in the coming period Research object and scope 3.1 Research objects The research object is the issues related to the mobilization of investment capital for socio-economic infrastructure development in Thai Nguyen province 3.2 Research scope + About space: Research was carried out in Thai Nguyen province + About time: Research and assess the current situation by collecting secondary information related to the mobilization of investment capital for socio-economic infrastructure development in Thai Nguyen province in the period of 2015 - 2019, compared with the period 2010 - 2014; the primary information is collected through the subject’s survey carried out in 2019 Solutions proposed for the period to 2025, vision to 2030 + About the content: - Assess the actual situation of the mobilization of investment capital for socio-economic infrastructure development, including determine the development goals; assess the plan implementation in the previous period; forecast demand and ability to balance investment capital; build up the investment plans of local capital mobilization; organize the implementation; inspect and supervise the mobilization of investment capital - Assess the mobilization of investment capital for socio-economic infrastructure development from the perspective of investment fields, including traffic system; irrigation system; system of power supply works; postal and telecommunications systems; water supply and wastewater and treatment systems; educational and training institutions; medical facilities; cultural and sports facilities - Assess the mobilization of investment capital for socio-economic infrastructure development from the perspective of mobilized capital sources, including: the development investment capital of government budget; the development capital sources of government enteprises; the government development investment credit capital; capital sources of private enterprises; capital sources from credit institutions of the private sector; capital contributed by the population; Government bonds; public - private cooperation; foreign investment capital - Analyze factors affecting the mobilization of investment capital for socioeconomic infrastructure development - Propose solutions to increase the mobilization of investment capital for socio-economic infrastructure development in Thai Nguyen province New contributions of the thesis • The thesis carried out a theoretical basis about mobilizing investment capital for socio-economic infrastructure development Specifically, the thesis has introduced the concept and clarifying the characteristics of socio economic infrastructure development at provincial level, the concept of the mobilization of investment capital for socio-economic infrastructure development and the content of capital mobilization for socio-economic infrastructure development investment at provincial level; relationship between development investment sources • The thesis is the first research work that multi-dimensionally analyzes the actual situation of mobilizing investment capital for socio-economic infrastructure development in Thai Nguyen province in many different aspects such as: Demand forecasting and the ability to balance investment capital; develop local capital mobilization and investment plans; mobilization policy, mobilization structure and degree of meeting the demand for investment capital; inspect and supervise the mobilization of investment capital • The thesis is the first research work using the examination factor analysis (EFA) method to determine the factors affecting the mobilization of investment capital for socio-economic infrastructure development in Thai Nguyen province The research results show that the impact level of these factors is different on the mobilization of investment capital for in socio-economic infrastructure development in Thai Nguyen province Specifically, the variable market size has the largest influence with beta coefficient of 0.635 and the variable of public service quality has the lowest influence with beta coefficient of 0.086 From there, the thesis proposed objectives, viewpoints and possible, suitable solutions to the specific conditions of Thai Nguyen province in order to mobilize investment capital for socio-economic infrastructure development in the coming time Thesis layout In addition to the introduction, conclusion, bibliography and appendices, the thesis is divided into main chapters as follows: Chapter 1: Overview of research works related to the thesis Chapter 2: Theoretical and practical basis for mobilizing investment capital for socio-economic infrastructure development Chapter 3: Research Methodology Chapter 4: Situation of mobilizing investment capital to develop socioeconomic infrastructure in Thai Nguyen province Chapter 5: Solutions to mobilize investment capital to develop socioeconomic infrastructure in Thai Nguyen province CHAPTER OVERVIEW OF RESEARCH WORKS RELATED TO THE THESIS 1.1 Overview of research works abroad In the world, there are many research works on infrastructure, mobilizing investment capital for infrastructure development Regarding the research content of the thesis, there are relevant works of Prud'homme (2004), Calderón and Servén (2004), UNCTAD (2013), Anjali Kumar et al (1997), Indira Rajaraman (2005), ESCAP (2016)… 1.2 Overview of domestic research works In the recent years, in Vietnam, there have been research works on infrastructure, mobilization of investment capital for socio-economic infrastructure development, referring to basic theoretical issues about infrastructure in general and socio-economic infrastructure development in particular in aspects such as: Concept, characteristics, classification, role Some studies have referred to the basic theoretical issues on mobilizing investment capital for socio-economic infrastructure development such as: Classification of capital mobilization, impact factors, content, mobilization methods, and assessment criteria Specifically, the research works of authors such as: Nguyen Duc Tuyen (2010), Nguyen Xuan Thanh (2010), CIEM (2010), Pham Thi Tuy (2009), Tran Minh Phuong (2012), Nguyen Ba An (2012), Dang Thi Ha (2013), Nguyen Xuan Cuong (2017), Nguyen Viet Dung (2016), Vu Duc Bao (2019), Luong Duc Tan (2020)… 1.3 Obtained results of the study works related to the thesis - The research on infrastructure development in general, socio-economic infrastructure in particular has basically just stopped at systematizing a number of theoretical issues about infrastructure development; policies, funding framework, achievements and weaknesses and inadequacies, thereby proposing solutions to develop infrastructure to ensure promoting sustainable development The studies have mentioned the basic theoretical issues about mobilizing capital for socio-economic infrastructure development such as: Classification of capital mobilization, impact factors, content, mobilization methods, and mobilization assessment criteria - Studies at each specific time, with different scales, methods and approaches have exploited the picture of the actual situation of capital mobilization for infrastructure development in general and socio-economic infrastructure in particular, associated with certain country or locality The research methods used in the above studies include: logical method; statistical methods, comparison, analysis and synthesis; descriptive methods and qualitative, quantitative analysis; professional methods; SWOT matrix method Especially, domestic research works have deeply analyzed and assessed the actual situation of mobilizing investment capital in specific infrastructure sectors such as roads, highways, medicine, economy, etc in some regions and localities from which to present the achieved results as well as limitations in this work As for mobilizing investment capital for socioeconomic infrastructure development in Thai Nguyen province, there are a number of authors who have only studied a specific type of capital source such as ODA, the government budget or a specific infrastructure sector such as rural infrastructure or road traffic 1.4 Gaps and problems that need further research of the thesis An overview of previous studies shows that there are still some unresearched issues that the thesis needs to consider and solve as follows: 1.4.1 About the theory The thesis needs to focus on clarifying the theoretical basis for the content of the research topic that previous studies have not fully implemented, including: the concept of socio-economic infrastructure development, investment capital for socio-economic infrastructure development, the mobilization of investment capital for socio-economic infrastructure development and the content of mobilizing investment capital for socioeconomic development at provincial level; relationship between development investment capital sources; explain the contents of mobilization of investment capital for socio-economic infrastructure development and assessment criteria; Studying the experience of mobilizing investment capital for socio-economic infrastructure development of some countries in the world and localities in Vietnam, thereby drawing lessons for Thai Nguyen province 1.4.2 About practice - For studies on mobilizing investment capital in general, due to the generalization, it is not possible to go into depth and analyze the contents and characteristics of each capital source For the studies referring to investment capital mobilization channels, due to focusing on a specific mobilization channel, there have been in-depth and specific analyzes of the research objects, but the studies only focus on a specific mobilization channel without mentioning other important mobilization channels These research works were carried out in localities and regions with different characteristics, at different time intervals, so the research object has changed, the proposed solutions in each research work also has different values - Currently, there is no research work in an updated and systematic way on mobilizing investment capital for socio-economic infrastructure development in Thai Nguyen province Therefore, there are still many open issues, such as how is the situation of mobilizing investment capital for socio-economic development in Thai Nguyen province? What are the shortcomings and limitations in the mobilization and use of investment capital for socioeconomic development of the province in recent years? What factors affect investment capital mobilization? What solutions to mobilize investment capital for socio-economic development in Thai Nguyen province in the coming time - There have been a number of works using exploratory analysis (EFA); Vector autoregression (VAR) model… to determine the factors affecting the mobilization of investment capital for socio-economic development in a number of specific countries or localities, but no works have been used the exploratory analysis (EFA) method yet to determine the factors affecting the mobilization of investment capital for socio-economic infrastructure development On the basis of absorbing the results of previous studies, the author has selected relevant variables that are most suitable for the socio-economic conditions of Thai Nguyen province to include in the research model - The author conducte an organizations and individuals investigation and survey of directly involved in the mobilization of investment capital for socioeconomic infrastructure development in Thai Nguyen province based on a standardized questionnaire The analysis results of the collected data will show a better overview of the research problem, assess the advantages and limitations in the implementation process, thereby completing the research gaps that have not been carried out yet Chapter THEORETICAL AND PRACTICAL BASIS ON MOBILIZING INVESTMENT CAPITAL FOR SOCIO-ECONOMIC INFRASTRUCTURE DEVELOPMENT 2.1 General theory of socio-economic infrastructure 2.1.1 Concept and characteristics of socio-economic infrastructure 2.1.1.1 The concept of socio-economic infrastructure The socio-economic infrastructure at the provincial level is the entire system of physical and technical systems formed according to a certain structure, directly serving production and circulation, ensuring the general conditions for human development, protection of natural resources and environment, and national defense and security within a province The socioeconomic infrastructure in the province includes the following main components: (i) economic infrastructure including: Traffic system, irrigation system, system of power supply works, postal and telecommunications systems; water supply, waste and wastewater treatment systems, ; (ii) social infrastructure including: Educational, medical, cultural, sports, scientific facilities 2.1.1.2 Characteristics of socio-economic infrastructure at provincial level 2.1.2 Classification of socio-economic infrastructure 2.1.2.1 Classification according to the management hierarchy 2.1.2.2 Classification by population area, territory 2.1.2.3 Classification according to socio-economic fields 2.1.2.4 Classification according to economic - technical quality standards 2.1.3 The role of socio-economic infrastructure 2.2 Investment capital to develop socio-economic infrastructure 2.2.1 The basic concepts 2.2.1.1 Development Investment Development investment is a fundamental part of investment, which is the activity using the current capital to create new physical and intellectual assets, new production capacity and maintenance of existing assets, in order to create more jobs and for development purposes Development investment is a direct investment method in which the investment process increases the value and production and service capacity of the assets Through this investment behavior, the production capacity and service capacity of the economy also increase 2.2.1.2 Investment capital to develop socio-economic infrastructure The investment capital for socio-economic infrastructure development: It is expressed in money of the entire value that society has spent in order to invest in building a new system of socio-economic infrastructure development; 10 2.4.3 Lessons learned to Thai Nguyen province Firstly, Thai Nguyen province needs to develop a mechanism to support and encourage enterprises to invest in infrastructure projects such as: Tax and fee support; allocating financial resources to counterpart PPP projects to ensure the project's financial feasibility; compensation and site clearance support; connecting investors and banks, credit institutions to provide enterprises with preferential credit programs with medium and long-term loan terms and reasonable lending interest rates Secondly, Thai Nguyen province needs to develop a plan for issuing local government bonds, determine capital mobilization limits, develop a plan for mobilizing and repaying interest and principal and a list of projects to be invested When the Government allows the issuance of local government bonds, it is necessary to link the primary offering market with the secondary trading market; at the same time, to ensure efficiency and reduce issuance costs, we should focus on underwriting and bidding methods via the stock exchange Thirdly, in order to attract and effectively use ODA capital, Thai Nguyen province needs to enlist the support of ministries and central agencies and existing relationships with some major donors such as Japan, Korea, World Bank, Asia Bank Also, remove bottlenecks in compensation, site clearance and resettlement, and create conditions for infrastructure construction on schedule; rationally allocate capital and speed up the disbursement of ODA capital Chapter RESEARCH METHODS 3.1 Research question 3.2 Thesis analysis framework 3.3 Approach method Systematic approaches, public-private sector approach, investment sector approach and investment type and participatory approach are used in the thesis 3.4 The method of data collection 3.4.1 Secondary data collection 3.4.2 Primary data collection 3.4.2.1 Expert interview The thesis conducted in-depth interviews with pre-prepared content The questions focused on issues related to the current situation and factors affecting the mobilization of investment capital for socio-economic infrastucture development in Thai Nguyen province To conduct the interview, the author carried out the following steps: 11 Step 1: Determine the interview content, list of experts, specific location and time for the interview Step 2: Design research questions about the current situation and factors affecting the mobilization of investment capital for socio-economic infrastucture development in Thai Nguyen province Step 3: A group of 10 experts is invited to discuss the content At the end of the discussion, the research team synthesizes opinions, compares and contrasts with previous studies to build a set of scales and questionnaires (the questionnaire is designed according to the structured Likert scale) 3.4.2.2 Enterprise survey Survey of 230 enterprises operating for 01 year or more are investing in Thai Nguyen province in fields and industries related to socio-economic infrastucture development 3.4.2.3 Staff and civil servant survey Survey of 60 officials and civil servants involved in planning and managing the mobilization of investment capital for socio-economic infrastucture development who have worked for year or more at the following agencies: Office of the Provincial People's Committee, Department of Planning and Investment, Department of Finance, Department of Transport, People's Committees of districts, cities and towns 3.5 Analytical methods The thesis uses comparative, descriptive statistics, time series analysis and exploratory factor analysis to analyze the data 3.6 System of assessement criteria for mobilizing investment capital to develop socio-economic infrastructure - The fluctuation of investment capital for socio-economic infrastucture development - Structure of capital mobilization for socio-economic infrastucture development - The level of meeting the investment capital needs for socio-economic infrastucture development Chapter SITUATION OF MOBILE CAPITAL FOR DEVELOPMENT INVESTMENT SOCIAL-ECONOMIC INFRASTRUCTURE THAI NGUYEN PROVINCE 4.1 Natural, economic and social characteristics of Thai Nguyen province 4.2 Current status of socio-economic infrastructure system in Thai Nguyen province 12 4.3 Actual situation of capital mobilization for socio-economic infrastructure investment and development in Thai Nguyen province 4.3.1 Objectives of socio-economic infrastructure development in Thai Nguyen province in the period of 2015 - 2019 4.3.2 Assess the implementation of the previous period's plan, forecast demand and the ability to balance development investment capital Based on the prime minister’s list of national projects about calling for foreign investment up to 2020; Urban development program of Thai Nguyen province in the period of 2018 - 2020, with a vision to 2035; General report on infrastructure development master plan of Thai Nguyen province and report on medium-term public investment plan of Thai Nguyen province for the period 2016 - 2020 of the Provincial People's Committee, investment capital needs for socio-economic infrastructure of Thai Nguyen province in the period of 2015 - 2019 is summarized in the following table: Table 4.1: Investment capital demand for socio-economic infrastructure development in Thai Nguyen province in the period of 2015 - 2019 No Criteria Allocation by capital source Development investment capital of the government budget and rnterprises The government development investment credit capital Investment capital of private enterprises and resident contributions Capital from credit institutions of the private sector ODA capital FDI capital II Allocation by infrastructure fields Traffic Irrigation Power supply Telecommunication Water supply, waste and wastewater treatment Medicine Culture Investment capital (billion VND) Percentag e (%) I 73.184,0 100 28.344,3 38,7 7.471,2 8.115,9 13.193,4 5.059,2 11.000 73.184,0 28.805,1 9.067,4 6.698,1 1.885,5 4.033,0 2.478,4 14.510,0 10,2 11,1 18,0 6,9 15,0 100 39,4 12,4 9,2 2,6 5,5 3,4 19,7 (Source: People's Committee of Thai Nguyen province and the author summarized) The demand for investment capital for socio-economic infrastructure development of Thai Nguyen province in the period 2015 - 2019 is VND 73,184.0 billion, of which domestic capital occupied 78.1%, foreign capital accounted for 21.9% Investment capital needs for each socio-economic infrastructure sector are as follows: Traffic is VND 28,805.1 billion (reaches 39.4%); irrigation is 9,067.4 billion VND (accounting for 12.4%); electricity supply is 6,698.1 billion VND (occupied 9.2%); telecommunications is 1,885.5 billion VND (2.6%); water supply and waste and wastewater treatment is 4,033.0 billion VND (5.5%); health care is 2,478.4 billion VND (3.4%); culture is 14,510.0 billion VND (19.7%); education is 5,706.6 billion VND (accounting for 7.8%) 13 4.3.3 Develop a plan to raise the development investment capital 4.3.4 Organize the implementation of mobilizing capital for development investment 4.4 Results of capital mobilization for investment of socio-economic infrastructure development in Thai Nguyen province by capital source The total investment capital for socio-economic infrastructure development in Thai Nguyen province in the period of 2015 - 2019 reached VND 38,204.6 billion, 1.6 times higher than the period of 2010 - 2014 The structure of investment capital for socio-economic infrastructure development has changed year by year, development investment capital of the government budget still plays the leading role when accounting for over 50%, but capital from private enterprises and the citizen contribution has improved significantly (in 2015 accounted for the ratio of 8.8%; in 2019 accounted for 9.7%) This capital source plays an increasingly important role in infrastructure investment, as one of the driving forces of the economy ODA capital and Government bonds account for 7.8% of the total investment capital for socioeconomic infrastructure development, prioritized to invest in transport, energy and urban projects, creating favorable conditions for linking localities Table 4.2: Investment capital for socio-economic infrastructure development in Thai Nguyen province Unit: Billion VND No I II Criteria Domestic capital Development investment capital of the government Development investment capital source of the government budget Development investment capital source of the government enterprises Government credit for development investment Development investment capital of private and citizen sector Capital source of private enterprises Capital source of citizen contributions Capital from credit institutions of the private sector Foreign capital ODA capital FDI capital Total Period 2015 - 2019 Period 2010 2014 Total 22.658,7 36.920,7 2015 6.406,8 2016 7.203,4 2017 6.915,7 2018 8.328,8 2019 8.066,0 14.543,6 28.149,8 4.875,2 5.508,4 5.507,9 6.331,9 5.926,4 8.081,1 19.423,9 2.877,7 3.472,1 4.333,7 4.451,9 4.288,5 3.712,0 6.198,8 1.409,6 1.084,9 945,3 1.336,9 1.422,1 2.750,5 2.527,1 587,9 951,4 228,9 543,1 215,8 8.115,1 8.770,9 1.531,6 1.695,0 1.407,8 1.996,9 2.139,6 1.900,4 2.269,3 408,4 417,7 338,0 515,6 589,6 1.906,5 1.288,7 171,8 281,8 289,4 325,9 219,8 4.308,2 5.212,9 1.166,5 1.166,5 1.283,8 1.283,8 195,3 195,3 323,9 323,9 303,7 303,7 158,6 158,6 302,3 302,3 23.825,2 38.204,5 6.602,1 7.527,3 7.219,4 8.487,4 8.368,3 951,4 995,5 780,4 1.155,4 1.330,2 (Source: People's Committee of Thai Nguyen province and the author's synthesis) The government budget's development investment capital still plays a key role in the socio-economic infrastructure system development investment, which shows the low efficiency of capital mobilization outside the government sector, the development of socio-economic infrastructure system depends on most of the investment by the government is a huge burden for the government 14 budget, especially attracting foreign direct investment capital, no infrastructure projects have been invested yet In the period of 2015 - 2019, in the field of transport irrigation, electricity supply, telecommunications, culture and education infrastructure, the development investment capital of government budget and development investment capital of government enterprises account for the largest proportion (occupied over 60%); For water supply and waste treatment, wastewater and healthcare systems, the development investment capital of private enterprises and the development investment credit capital of the private sector account for the largest proportion This also reflects the current reality in Thai Nguyen province when there are many projects of the private sector in these two fields being invested in construction such as: Song Cong waste treatment complex project; Hoa Lam Tan Thanh Hi-tech Environmental Treatment Plant project in Phu Binh district; Thai Nguyen International Hospital project; Yen Binh General Hospital project; POMIHOA general hospital project 4.4.1 Government development investment capital 4.4.2 Development investment capital of private and citizen sector 4.4.3 ODA capital 4.4.4 FDI capital 4.5 Results of mobilizing investment capital for socio-economic infrastructure development in Thai Nguyen province according to infrastructure field The structure of investment capital for socio-economic development according to infrastructure sector in the period 2015 - 2019 has seen positive changes, specifically shows in Table 4.4: Table 4.3: Development investment capital for socio-economic infrastructure in Thai Nguyen province according to infrastructure field No - Infrastructure field Traffic Ratio over the previous year Irrigation Ratio over the previous year Power supply Ratio over the previous year Telecommunication Ratio over the previous year Water supply Ratio over the previous year Medicine Ratio over the previous year Culture Ratio over the previous year Education Ratio over the previous year Period Period 2015 - 2019 2010 - 2014 (Billion VND) (Billion VND) Percentage Percentage Total Total 2015 2016 2017 2018 (%) (%) 11.473, 50,6 20.557,6 53,8 3.002,3 4.069,6 4.118,1 4.882,2 35,5 1,2 18,6 1.597,8 7,0 2.041,5 5,3 389,8 436,8 368,6 379,9 12,1 -15,6 3,1 3.070,6 13,5 4.607,3 12,1 1.180,2 834,6 645,0 995,1 -29,3 -22,7 54,3 944,5 4,2 1.625,6 4,3 241,7 286,6 308,9 329,5 18,6 7,8 6,6 1.812,8 8,0 2.695,7 7,1 660,3 539,8 587,3 460,5 -18,3 8,8 -21,6 1.081,4 4,8 1.639,0 4,3 376,0 370,9 138,7 296,9 -1,4 -62,6 114,2 962,9 4,2 1.812,5 4,7 260,5 370,6 374,8 423,9 42,3 1,1 13,1 1.721,1 7,6 3.225,3 8,4 491,3 618,5 678,0 719,2 25,9 9,6 6,1 2019 4.485,5 -8,1 466,4 22,8 952,5 -4,3 458,9 39,3 447,7 -2,8 456,5 53,7 382,7 -9,7 718,3 -0,1 (Source: People's Committee of Thai Nguyen province and the author's synthesis) 15 In recent years, Thai Nguyen province has chosen a breakthrough in the socio-economic infrastructure development as the construction of transport infrastructure, so the investment structure of the transport system accounts for the largest proportion, reaching 50.6% of the total investment capital in the period 2010 - 2014 and increased to 53.8% in the period 2015 - 2019 In the period of 2015 - 2019, investment capital for the power supply system; postal and telecommunications system; cultural facilities; medical facilities; education and training institutions increased by more than 50% compared to the 2010-2014 period, which proves that the scale of capital mobilization for these fields is expanding 4.5.1 Mobilizing investment capital to develop the traffic system 4.5.2 Mobilizing investment capital to develop irrigation systems 4.5.3 Mobilizing investment capital to develop the power supply system 4.5.4 Mobilizing investment capital to develop the postal and telecommunications system 4.5.5 Mobilizing investment capital to develop water supply, waste and wastewater treatment systems 4.5.6 Mobilizing investment capital to develop education and training institutions 4.5.7 Mobilizing investment capital to develop medical facilities 4.5.8 Mobilizing investment capital to develop cultural and sports facilities 4.6 Factors affecting the mobilization of investment capital to develop socio-economic infrastructure in Thai Nguyen province • Check the reliability of survey data Table 4.4: Reliability test of dependent variable Variable Scale Correlation Cronbach's Code Scale Mean Variance Adjusted Alpha Value Sum Ability to mobilize investment capital to develop socio-economic infrastructure: Cronbach’s Alpha = 765 HDNV1 8.55 2.616 693 634 HDNV2 8.54 2.930 567 707 HDNV3 8.61 3.078 485 751 HDNV4 8.59 3.142 520 732 (Source: Results from SPSS) The results of the dependent variable test show that the reliability of the scale is 0.765, and the correlation coefficients of the total variables are all greater than 0.4 and the Cronbach's Alpha value if the variable type is less than 0.765, this shows that there is a good correlation of observed variables in the model 16 The results of the independent variables test show that all variables have Cronbach's Alpha coefficients of the factors greater than 0.8 The correlation coefficient of the sum of the observed variables in each factor is greater than 0.6; at the same time, all values of the observed variables have Cronbach's Alpha coefficient if the variable type is smaller than the Cronbach's Alpha value of the total variable Thus, the observations in each independent variable included in the survey are completely reliable and will be used for analysis in the next steps • Factor analysis Table 4.5: KMO accreditation and Bartlett's Test KMO coefficient Bartlett's Test accreditation 786 Approximate Chi-squared Value Degree of Freedom Level of significance 3403.530 378 000 (Source: Results from SPSS) The results of factor analysis show that: KMO coefficient 0.786 > 0.6 shows that the factor analysis results are completely appropriate Bartlett's Test accreditation is 3403,530 with statistical significance level sig=0.000 0.5 and the Eigenvalues = 1.621 > value meets the statistical requirements Thus, this shows the appropriateness of the hypotheses from the theoretical research model mentioned earlier The results from the SPSS software show that the factor loading coefficients of the observed variables in each given factor are quite high (greater than 0.7), this once again confirms the observed variables have a great impact on the factor they represent The rotation matrix table when factor analysis shows that all independent variables given from the analysis have an influence on the ability to mobilize investment capital for socio-economic infrastructure development in Thai Nguyen province The results of the correlation analysis between the variables in the model show that, at the 1% and 5% significance levels, there is a strong correlation between the independent variables and the dependent variable Specifically, of the independent variables included in the estimate, there are independent variables that are strongly correlated with the dependent variable, only the TNTN variable does not show correlation with the dependent variable 17 Besides, the sig values (significance level) between the independent variables also show that there is no strong correlation between the variables, so multicollinearity does not occur • Regression analysis Table 4.6: Results of model’s suitability assessment Model Summary Correct Standard error DurbinR value Squared R of Watson value estimatimation value 789a 623 611 34316 1.809 a Independent variables: (Constant), DVC, QMTT, TTTC, DKTN, NNL, TNTN, CSDT b Dependent variables: HDNV (Source: SPSS analysis results) The regression results in the table above show that the multiple correlation coefficient R = 0.789 shows that there is a fairly close correlation between the independent variables and the dependent variable, the adjusted R coefficient is 0.611, which means that the variation of the independent variables and the dependent variables The independent variables included in this model explain 61.1% of the change in the dependent variable The Durbin-Watson coefficient in the analysis is 1.809, indicating that there is no autocorrelation between the independent variables included in the research model Table 4.7: Results of ANOVA accreditation Sum of Squared Differences Regression 43.257 ANOVAa Degrees Mean of Square Freedom 6.180 Test Significance Significance 52.477 000b Balance Total 26.142 222 118 69.399 229 a Dependent variables: HDNV b Independent variables: (Constant), DVC, QMTT, TTTC, DKTN, NNL, TNTN, CSDT (Source: SPSS analysis results) The results of ANOVA analysis show significance level Sig = 0.000 < 0.05, thus it can be concluded that the research model is appropriate 18 Table 4.8: Results of regression model Unnormalized coefficient Normalized coefficient Model Constant DKTN QMTT CSDT TTTC TNTN NNL DVC Multicollinearity T value B Standard Error -.041 121 523 152 090 -.027 092 069 211 029 035 032 031 031 029 033 Sig level Beta 176 644 216 123 -.037 144 085 -.195 4.249 15.027 4.696 2.890 -.860 3.164 2.060 846 000 000 000 004 391 002 041 Acceptability Variance magnification factor 987 923 799 935 934 815 986 1.013 1.083 1.251 1.069 1.070 1.228 1.014 a Dependent variables: HDNV (Source: SPSS analysis results) The VIF values of all factors are relatively small (less than 2), so multicollinearity does not occur Regression results from the above Coefficients table show that the significance level of the natural resource factor is 0.391 > 0.05, so this factor does not guarantee statistical significance Meanwhile, all other independent variables included in the analysis have significance level (sig) less than 0.05, so these independent variables are significant to explain the dependent variable Table 4.9: Regression model results when removing the variable TN Unnormalized coefficient Normalized coefficient Model B Constant -.110 DKTN 123 QMTT 516 CSDT 152 TTTC 090 NNL 093 DVC 069 Standard Error 195 028 034 032 031 029 033 Multicollinearity T value Sig level -.561 4.325 15.300 4.702 2.907 3.183 2.074 576 000 000 000 004 002 039 Beta 179 635 217 124 145 086 Variance Acceptability magnification factor 992 984 799 936 815 986 1.008 1.017 1.251 1.069 1.227 1.014 a Dependent variables: HDNV (Source: SPSS analysis results) 19 The rewritten equation is as follows: Ability to mobilize investment capital for socio-economic infrastructure development = 0.179 *Natural conditions + 0.635*Market size + 0.217 *Investment policy + 0.124*Financial market + 0.145*Human resources +0.086 * Quality of public services Compared with the results of previous studies, the above factors are somewhat similar to the research results of Dinh Phi Ho, Ngo Van Thien, Le Tuan Loc and Nguyen Thi Tuyet, Agnieszka and Stephen However, each study is conducted in different conditions and research subjects, so the research results and the influence of factors also have different impacts on the ability to mobilize investment capital to develop socio-economic infrastructure Therefore, there is a basis to confirm that the results of this study are reliable 4.7 General assessment of mobilizing investment capital to develop socioeconomic infrastructure in Thai Nguyen province 4.7.1 Obtained results Firstly, the mobilization of investment capital for the development of socioeconomic infrastructure has closely linked with the socio-economic development strategy that proposed by the Party Congress of Thai Nguyen province through the congresses Secondly, the scale of investment capital to develop socio-economic infrastructure is increasing day by day, the structure of investment capital is increasingly diversified Thirdly, the socio-economic infrastructure system of Thai Nguyen province has developed strongly in both breadth and depth, making an important contribution to socio-economic development, ensuring national defense, security, and environmental protection 4.7.2 Limitations and causes 4.7.2.1 Limitations Firstly, capital mobilization has made great efforts, but it has not yet met the demand for investment capital for socio-economic infrastructure development Second, investment management for projects to build socio-economic infrastructure using government capital still has many shortcomings Third, mobilizing capital from private enterprises to invest in socioeconomic infrastructure in the form of public-private partnership (PPP) is still limited Fourth, the internal resources have not been fully exploited, especially the issuance of local government bonds Fifth, the financial potential of the land has not been fully exploited Sixth, mobilizing and using ODA capital has many shortcomings 20 4.7.2.2 Causes Objective causes Firstly, the government policy and law system and the guidelines of the Government is still lacking in synchronization, stability and consistency, sometimes it is slow to institutionalize for implementation; Some policies through implementation revealed limitations and unreasonable but were slow to be amended and supplemented Secondly, the starting point and development level of Thai Nguyen province is still low, so the ability to allocate resources to meet the investment needs of socio-economic infrastructure is still limited Subjective causes Firstly, the activity of formulation, management and implementation of socio-economic development master plans, construction plannings, urban development master plans and sectoral master plans are still weak and inadequate, lack of systematic and long-term vision Second, government budget revenue has not yet met the demand for investment spending on socio-economic infrastructure systems, lacks binding sanctions to secure capital, and approval of investment projects does not rely on the ability to balance capital, lack of inspection and supervision as well as the situation of egalitarianism still occurs leading to scattered, scattered and inefficient investment Third, the qualifications and capacity of the contingent of staff and civil servants are not commensurate with the assigned functions and tasks Fourth, Thai Nguyen province has not yet had breakthrough mechanisms and policies associated with local realities to mobilize resources from the private sector, especially PPP projects Chapter SOLUTIONS TO MOBILIZE INVESTMENT CAPITAL FOR SOCIOECONOMIC INFRASTRUCTURE DEVELOPMENT IN THAI NGUYEN PROVINCE 5.1 The world and domestic economic context affects the socio-economic development of Thai Nguyen province 5.2 Viewpoints on mobilizing investment capital to develop socioeconomic infrastructure in Thai Nguyen province 5.3 Orientations and goals for socio-economic infrastructure development in Thai Nguyen province to 2025, vision to 2030 21 5.4 Demand and ability to mobilize investment capital to develop socioeconomic infrastructure in Thai Nguyen province by 2025 5.4.1 Capital needs Based on the urban development program of Thai Nguyen province in the period of 2018 - 2020, with a vision to 2035; General report on infrastructure development master plan of Thai Nguyen province to 2020, vision to 2030 and detailed report on expected medium-term public investment plan of Thai Nguyen province in the period of 2021 - 2025 of the Provincial People's Committee, investment capital needs for socioeconomic development of Thai Nguyen province in the period of 2021 2025 are summarized in the following table: Table 5.1: Investment capital needs for Socio-economic infrastructure development of Thai Nguyen province in the period of 2021 - 2025 No Criteria I Allocation by capital source Development investment capital source of the government budget Investment and development capital source of the government enterprises The government development investment credit capital Investment and development capital source of the private and the citizen ODA capital FDI capital Allocation by infrastructure field Traffic Irrigation Power supply Telecommunication Water supply, waste and wastewater treatment Medicine Culture Education II Investment (billions dong) 84.472,6 Rate (%) 100 25.321,5 30,0 7.512,8 8,9 5.563,6 6,6 28.243,4 33,4 6.792,5 11.038,8 84.472,6 40.679,3 10.510,3 6.969,0 6.386,9 5.282,2 3.721,8 5.975,2 4.947,9 8,0 13,1 100 48,2 12,4 8,3 7,6 6,3 4,4 7,1 5,9 (Source: People's Committee of Thai Nguyen province and author's synthesis) 22 The total demand for investment capital for the socio-economic infrastructure development in Thai Nguyen province in the period of 20212025 is 84,472.6 billion VND, of which the government development investment capital accounts for 45.5%; development investment capital of private and citizen accounts for 33.4% and foreign investment capital occupies 21.1% Investment capital needs for each field of socio-economic infrastructure in which: Transport accounts for 48.2%; irrigation accounted for 12.4%; electricity upgrade accounted for 8.3%; telecommunications accounts for 7.6%; water supply and waste and wastewater treatment accounted for 6.3%; health care accounts for 4.4%); culture accounted for 7.1%); education accounted for 5.9% 5.4.2 The ability estimation to raise investment capital According to the five-year socio-economic development plan from 2021 to 2025, the average economic growth rate of Thai Nguyen province is 7-8% per year; government budget revenues in the balance increase on average 8-10% per year For development investment capital of the government budget, it is expected that the total government budget revenue in the province will reach about 101,535 billion VND, of which domestic revenue is 82,970 billion VND, import and export revenue is 18,565 billion VND Total local budget expenditure is about 88,275 billion VND, of which investment in socioeconomic infrastructure is 23,625 billion VND, meeting 93.3% of investment capital demand from the government budget For the development investment capital of government enterprises, if in the period of 2021 - 2025, the growth rate is 0.2% per year, the investment capital will reach 7,167.1 billion VND - As for the government development investment credit capital, it is expected that this capital will reach 3,358.5 billion VND, meeting 60.4% of the investment capital demand - For development investment capital of the private and citizen, if the period 2021 - 2025 averages growth of 7%/year, the investment capital will reach VND 16,361.2 billion, meeting 57.9% of the investment capital requirements - For ODA capital, if the average growth rate is 11.5%/year, the investment capital will reach 2,120.1 billion VND, meeting 31.2% of the investment capital demand Thus, in the period of 2021 - 2025, the ability to mobilize investment capital to develop socio-economic infrastructure in Thai Nguyen province will reach about 52,631.9 billion VND, meeting 62.3% of infrastructure investment capital demand 23 5.5 Solutions to mobilize investment capital to develop socio-economic infrastructure in Thai Nguyen province 5.5.1 Total solutions - Expand the market size - Improve the quality of planning and development plans for socioeconomic infrastructure in Thai Nguyen province - Improve the capacity and qualifications of the contingent of cadres and civil servants and develop human resources - Improve the efficiency of government management of investment capital mobilization 5.5.2 Solutions to mobilize domestic investment capital - Strengthen the exploitation and management of local budget revenues - Improve investment efficiency from the government budget - Increase the mobilization of investment capital from the private sector, focusing on mobilizing capital in the form of public-private partnership - Issue local government bonds - Renovate mechanisms and policies to mobilize capital from land 5.5.3 Solutions to mobilize foreign investment capital - ODA capital - FDI capital 5.6 Recommendations CONCLUSION Through studying the topic "Mobilizing investment capital to develop socio-economic infrastructure in Thai Nguyen province" the thesis has achieved the following results: Firstly, the thesis completed a theoretical basis for mobilizing investment capital to develop socio-economic infrastructure Specifically, the thesis has introduced the concept of socio-economic infrastructure at the provincial level; clarify the characteristics of socio-economic infrastructure, the concept of investment capital for socio-economic infrastructure development, mobilization of investment capital for the socio-economic infrastructure development and the content of capital mobilization investment in the development of socio-economic infrastructure at the provincial level; the relationship among development investment sources 24 Secondly, from the practical experience of mobilizing investment capital for the socio-economic infrastructure development of several countries and localities in Vietnam, such as Ho Chi Minh City, Bac Ninh and Thanh Hoa province, then pull out some experiences for Thai Nguyen province Third, based on assessment and analysis of the actual situation of mobilizing investment capital for the socio-economic infrastructure development in Thai Nguyen province, it shows that the mobilization of investment capital has been closely linked with the socio-economic development strategy approved by the Thai Nguyen Provincial Party Committee through congresses; The scale of investment capital is increasing day by day, the capital structure is increasingly diversified However, besides the achieved results, the mobilization of investment capital still has limitations such as: Mobilizing capital from private enterprises in the form of publicprivate partnership (PPP) is still within the narrow range; not fully exploiting internal resources, especially issuing local government bonds; the financial potential of land has not been fully exploited; There are many shortcomings in mobilizing and using ODA capital Fourth, using the exploratory factor analysis method, the thesis has pointed out factors affecting the ability to mobilize investment capital for the socioeconomic infrastructure development in Thai Nguyen province, including natural conditions; market size; investment policy; financial markets; human Resources; public service quality These are a basis to help the province's policymakers grasp the factors affecting the mobilization of investment capital for the socio-economic infrastructure development in Thai Nguyen province, thereby gaining a mindset and new approach to solve the problems posed to the mobilization of investment capital for the socio-economic infrastructure development in Thai Nguyen province Fifth, based on the situation of mobilizing investment capital, the thesis proposed some solutions to effectively mobilize investment capital for the socio-economic infrastructure development such as: strengthening the exploitation and management of local budget revenues; improving investment efficiency from the government budget; increasing the mobilization of investment capital from the private sector, focusing on mobilizing capital in the form of public-private partnership Diversified capital mobilization solutions include the issuance of mechanisms and policies of the government and concretize those policies at the local level, specific solutions to mobilize each capital source, associated with the actual situation of Thai Nguyen province In addition, the author has proposed many solutions on institutional and administrative reform, including Improving the quality of planning; improving the capacity, qualifications and quality of the contingent of staff and civil servants and developing human resources