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MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY *** - MASTER THESIS CHINA’S SPECIAL ECONOMICS ZONES AND LESSONS FOR VIETNAM PHAM HOANG NGOC HUYEN Ha Noi - 2023 MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY *** - MASTER THESIS MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY *** - MASTER THESIS CHINA’S SPECIAL ECONOMICS ZONES AND LESSONS FOR VIETNAM MAJOR: INTERNATIONAL ECONOMICS Code: 8310106 PHAM HOANG NGOC HUYEN Supervisor: Dr Dinh Thi Thanh Binh Ha Noi - 2023 i ACKNOWLEDGEMENTS First of all, I would like to sincerely thank the attentive care and enthusiasm of the Board of Directors and teachers of Foreign Trade University, as well as some guest lecturers and especially the guidance of my dedicated instructor – Dr Dinh Thi Thanh Binh She gave me useful and neccessary advices to help me complete this thesis well All of them have created favorable conditions for me to complete my duties well during my time studying at the school Secondly, I would also like to thank all the teachers, friends, and library who have helped and shared experiences with each other during the past time Everyone is eager to help Through this thesis, I have not only gained a lot of experience but also have a research purpose to serve my work in the future However, because of my limited professional knowledge and my lack of practical experience, the content of the thesis cannot avoid shortcomings Once again, I would like to send my sincere and best thanks to teachers and friends! Thank you so much for your great support! ii DECLARATION I hereby declare that the thesis "China’s Special Economics Zones and lessons for Vietnam" is my own work and based on the research learned theory, practice survey and guidance from Dr Dinh Thi Thanh Binh The research results stated in the thesis are honest and have never been published in any research work All documents and references from previous studies are fully cited in accordance with regulations I take full responsibility for the truthfulness of the thesis Author Pham Hoang Ngoc Huyen iii TABLE OF CONTENT Error! Hyperlink reference not valid.ACKNOWLEDGEMENTS ii Error! Hyperlink reference not valid.DECLARATION iiii LIST OF FIGURES AND TABLES ii FIGURES ii TABLES ii INTRODUCTION .11 Error! Hyperlink reference not valid.1 The rationale of the study 11 Error! Hyperlink reference not valid.2 .Literature review 22 Error! Hyperlink reference not valid.3 Objective of the study 55 Error! Hyperlink reference not valid.4 Research scope 55 Error! Hyperlink reference not valid.5 .Methodology and data 66 Error! Hyperlink reference not valid.6 .The thesis’s structure 66 Error! Hyperlink reference not valid.- Chapter 2: The Special Economic Zone model of China 66 CHAPTER 1: OVERVIEW ON THE SPECIAL ECONOMIC ZONE IN THE WORLD .77 1.1 Overview of the Special Economic Zone 77 1.1.1 History of special economic zones in the world 77 1.1.2 Concept of Special Economic Zone 99 iv 1.1.3 Characteristics of the Special Economic Zone .1010 1.2 The role of the Special Economic Zone .1212 1.2.1 The role of the Special Economic Zone in the national economy 1212 1.2.2 The role of the Special Economic Zone in import and export activities 1414 1.3 Classification of the Special Economic Zone 1616 1.3.1 Free port and free trade zone 1616 Error! Hyperlink reference not valid.The most prevalent SEZ are freeports They can contain or overlap political and administrative units, comprising both rural and urban areas, as well as entire economic regions and populations They frequently include substantial transportation infrastructure, such ports and airports Additionally, freeports allow for on-site habitation and accommodate all forms of economic activities, such as tourism and retail sales They typically offer a wide range of rewards and incentives (Farole (2011); FIAS (2008); and UNIDO (2009)) 1616 Error! Hyperlink reference not valid.The oldest and most popular type of SEZ are free trade zones (FTZs), commonly referred to as free zones or commercial free zones In addition to providing trade-related services including warehousing, storage, distribution, sales, re-export, and exhibitions, they are often situated at or close to most ports of entry across the world They also frequently light processing tasks like packaging, labeling, quality checking, and sorting FTZs are relatively small regions that are typically physically separated from the main part of the port where they are located since they are outside the host country's customs territory and permit the importation of some products duty- and tax-free (Farole (2011); FIAS (2008); and UNIDO (2009)) 1616 1.3.2 Tax-free zone 1617 1.3.3 Export processing zone 1717 v 1.3.4 Technology industrial zone 1717 1.3.5 Free border zone and transit zone 1818 CHAPTER 2: THE SPECIAL ECONOMIC ZONE MODEL OF CHINA 2020 2.1 Overview of China's Special Economic Zone 2020 2.1.1 Formation context of the Special Economic Zone 2020 2.1.2 Development of the Special Economic Zone in China 2727 2.1.3 State management in the Special Economic Zone 4545 2.1.4 Preferential policies in the Special Economic Zone .4949 2.2 Activities in the Special Economic zone in China .5960 2.2.1 Investment activities in the Special Economic Zones 6060 2.2.2 Import and export activities in the Special Economic Zones 6262 2.2.3 Industrial activities in the Special Economic Zones .6465 2.2.4 Service activities in the Special Economic Zones 6666 2.3 Evaluation on the Special Economic Zone in China 7575 2.3.1 Success of Special Economic Zones .7575 2.3.2 Remaining problems 7878 CHAPTER PRECONDITIONS AND REALITY OF CONSTRUCTION AND DEVELOPMENT SPECIAL ECONOMIC ZONE IN VIETNAM 8080 3.1 Preconditions for the formation and development of economic zone models 8080 3.1.2 For economic zones 8080 3.1.3 For border economic zones 8181 3.1.4 For the high-tech park 8181 3.2 Current status of development of economic zone models in Vietnam 8181 vi 3.2.1 Achievements in the development of industrial parks and export processing zones .8181 3.2.2 Achievements in economic zone development 8383 3.2.3 Achievements in the development of border gate economic zones8383 3.2.4 Achievements in the development of high-tech zones 8484 3.3 Assess the development of economic models over time 8484 CHAPTER 4: RECOMMENDATIONS TO DEVELOP A SPECIAL ECONOMIC ZONE IN VIETNAM BASED ON EXPERIENCE OF CHINA 8787 4.1 Lessons from building the Special Economic Zones of China 8787 4.2 Some recommendations for Vietnam 9292 4.2.1 Strategy and vision for the development of the Special Economic Zone in Vietnam .9292 4.2.2 Recommendations at the State level 9494 4.2.3 Recommendation at the Enterprise level 9798 CONCLUSION 100100 LIST OF REFERENCES 101101 TABLE OF CONTENTS ACKNOWLEDGEMENTS ii DECLARATION iiii