Research objectives The main research objective of the topic is to systematize theoretical issues on private economic development and state management of private economy, analyze the cur
Trang 1MINISTRY OF EDUCATION AND TRAINING
VINH UNIVERSITY
NGUYEN THANH CUONG
PRIVATE ECONOMIC DEVELOPMENT
IN TAY NINH PROVINCE
SUMMARY OF DOCTORAL THESIS IN ECONOMICS
Major: Economic Management
Code: 9310110
NGHE AN, 2024
Trang 2Project completed at:
VINH UNIVERSITY
Scientific instructor:
1 Associate Professor, Dr Nguyen Thi Thu Cuc
2 Associate Professor, Dr Do Thi Phi Hoai
Thesis can be found at:
- National Library of Vietnam
- Nguyen Thuc Hao Library - Vinh University
Trang 3INTRODUCTION
1 Urgency of the topic
Tay Ninh province is located in the Southeast region , acting as a bridge between Ho Chi Minh City (HCMC) and the capital Phnom Penh , Cambodia Tay Ninh ranks 37th in the country in terms of population, 28th in terms of gross regional domestic product (GRDP) , 14th in terms of GRDP per capita, and 32nd in terms of GRDP growth rate The Southeast region (SE) is the region with the fastest economic growth rate and the highest per capita income in the country (TCTK, 2020), is the region with the largest GDP proportion among the economic regions of our country, leading the way in economic development, with the contribution of enterprises in the private economic sector
However, the development of Tay Ninh's private economy is still assessed to have many limitations, not reflecting the true potential and strengths of the province The speed of private economic development is slower than the expectations of the Party Committee and people of Tay Ninh province, slower than the average economic growth rate of the Southeast region, low competitiveness, low capitalization value, production value and low exchange of goods are the problems that the private economic sector is facing today Meanwhile, the province still has many resources and assets that have not been used effectively State management of private economic development in Tay Ninh province still has many weaknesses and shortcomings, and has not completely escaped the old management mechanism and mindset With the aim of building a scientific foundation for private economic development in Tay Ninh province, proposing solutions
to promote this process quickly and effectively, the author chose to carry out the topic
"Private economic development in Tay Ninh province" as a doctoral thesis
2 Research objectives and tasks
2.1 Research objectives
The main research objective of the topic is to systematize theoretical issues on private economic development and state management of private economy, analyze the current status of private economic development and state management of private economic development in Tay Ninh province, evaluate the successes, limitations and causes of limitations, thereby proposing solutions to promote private economic development in Tay Ninh province according to the socio-economic development strategy of the province
2.2 Research tasks
Based on the above research objectives, the thesis has the following research tasks:
- Systematize and synthesize published research works on private economic development, thereby discovering research gaps, thereby suggesting research directions
on private economic development in this topic
- Systematize theoretical and practical foundations on private economy, private economic development, and state management of private economy at provincial level
- Analyze the current status of private economic development and state management of private economic development in Tay Ninh province in recent times; on that basis, point out the achievements, limitations, and causes
- Proposing orientations and some solutions for private economic development in Tay Ninh province in the coming time
3 Research object and scope
3.1 Research object
The research object of the thesis is private economic development and state management of private economy
Trang 43.2 Scope of research
- Content scope limitation:
The scope of the research is to develop the private economy in Tay Ninh province from the state sector to aim at increasing the quantity, expanding the scale , improving the quality and contribution of the private economic sector to the socio-economic development of the province
Specifically, the thesis focuses on studying the current status of private economic development and state management of the private economy in Tay Ninh In which, the management subject is the provincial government, through a system of necessary tools
to perform its management functions such as: orientation tools, economic tools, monetary finance, legal tools, organizational tools, etc The thesis deeply analyzes state management of private economic development according to the management process: (1) building strategies, planning, plans; (2) organizing the implementation of planning strategies; (3) organizing the implementation of programs and projects; (4) administrative management of production and business activities; (5) organizing business promotion activities; and (6) inspection and supervision In which, the content
of private economic development includes: Increasing the number of private economic establishments; Expanding the scale of private economic establishment resources; Increasing the contribution of private economic establishments to socio-economic development; state management policies for the private economy
- Spatial scope: Within Tay Ninh province
- Time limit: Secondary data is collected in the period 2019 - 2023; Primary data
is collected in 2023; Proposed solutions until 2030 with a vision to 2045
2 What are the achievements and limitations in private economic development and state management of private economy in Tay Ninh province in recent times and what are the causes of those successes and limitations?
3 What orientations and solutions are needed to develop the private economy in Tay Ninh province in the coming time?
5 Research Approach and Methods
5.1 Research approach
The thesis approaches the research problem from the perspective of economic management The thesis uses both qualitative and quantitative research methods corresponding to specific research tasks Qualitative research methods used include methods of analysis and synthesis, induction and deduction economic organization approach; practical approach; quantitative approach
Systemic approach : Private economic development in Tay Ninh province must
be implemented synchronously in all its components; at the same time, it must be placed
in relation to the socio-economic development strategy of the province, the Southeast region as well as the whole country, ensuring the integrity and completeness of activities
to create resonance and overall strength of the system
Trang 5Sector and product approach : The economy of a province in general and of the private economy in particular is a combination of many sectors The natural - economic - social characteristics and comparative advantages of the province or private economy allow the development of a suitable sector and product structure
Approaching economic organization forms : Like the economy of a province or a country, the economy can also include different forms of economic organization such as individual business households, private enterprises, limited liability companies, and joint stock companies
Practical approach : Economic development and economic management practices are the origin, driving force, standard and purpose of the scientific research process of economic management
Quantitative approach : Through the questionnaire survey method with the main survey subjects being managers at organizations and enterprises in Tay Ninh province to evaluate the accuracy, suitability, reliability of the scale and verify the research model 5.2 Analytical framework
Figure 0-1Framework for analyzing private economic development in Tay Ninh province
Source: Author's suggestion
5 3 Research method
Research method is a system of specific means, tools, and methods used to collect and process information, creating a basis for making scientific assessments of the research problem (Phan Thị Mai Hương, 2013) The following groups of research methods are used
in conjunction during the research process:
5.2.1 Data collection methods
Desk research method
This method is used to collect secondary data such as scientific research works published related to the thesis at home and abroad; Sources of books, newspapers, magazines, scientific conference proceedings related to private economic development; Annual socio-economic report of Tay Ninh province for the period 2015-2022; Summary report of the Resolution on business development and support; Annual White Book of Vietnamese enterprises of the Ministry of Planning and Investment; Figures and articles on websites of ministries, branches and Tay Ninh province as well as the Southeast region
Các yếu tố môi trường vĩ mô, vi mô
- Môi trường pháp luật, cơ chế,
- Xây dựng chiến lược, quy hoạch, kế hoạch;
- Tổ chức triển khai thực hiện chiến lược quy hoạch;
- Tổ chức triển khai các chương trình đề án;
- Quản lý hành chính hoạt động SXKD;
- Tổ chức hoạt động xúc tiến kinh doanh;
- Kiểm tra , giám sát
Kết quả phát triển kinh tế tư nhân
- Số lượng, quy mô;
- Hiệu quả kinh tế;
- Hiệu quả xã hội
Trang 6Table 0-1Secondary data collection content
Theoretical and
practical basis for
private economic
development;
Relevant recent research results conducted
by research centers, agencies, organizations;
Contact individuals, agencies, units, and locations providing
authenticity of information by direct observation and cross-checking; Situation of private
Select, arrange, copy and record;
5.2.2.2 Expert method
Using the expert method are professional officials with practical experience in state management of the private economy in Tay Ninh and those with deep expertise, experience in business research and have research projects on business development Using the expert method through online interviews, via email about the content and factors affecting private economic development Through the results of summarizing existing works, researching theoretical foundations and learning about some practical events on private economic development in socio-economic development, the author builds an outline for interviews with experts and managers The questions in the interview outline are all open-ended questions, evoking issues, depending on the actual content of the interview to expand or narrow the discussion issues
5.2.2.3 Questionnaire survey method
The questionnaire survey method is used in the thesis to provide information on the status of the private economy, private economic development, state management of the private economy, and factors affecting the private economic development process in Tay Ninh province
5.2.2 Data processing and analysis methods
- Statistical disaggregation method: Classify data according to statistical disaggregation method: With different analysis goals, we divide data into 3 groups including enterprises mainly operating in Agriculture - Forestry; Industry and Construction; Trade and Services
- Descriptive statistics method: Using indicators such as arithmetic mean (A), standard deviation (SD) to analyze and reflect the current state of enterprise
Trang 7development in the private economic sector through the research time points
- Comparative statistical method: Compare the private economic development of Tay Ninh province over the years according to many criteria The comparative method is only applied to indicators and objects of comparison significance to discover the basic characteristics of groups of enterprises in the private economic sector, thereby seeing the advantages, disadvantages, difficulties, and advantages as a basis for proposing appropriate solutions to contribute to the development of the private economy in Tay Ninh province
- Quantitative analysis method: Based on the purpose and overview of research works, the study analyzed and selected 5 factors to test their impact on private economic development in Tay Ninh province, including: Legal environment, social awareness; Product consumption market; Capital, production and business premises; Management level, labor quality; Science and technology level The questionnaire for the survey includes
45 indicators Of which, there are 40 indicators of independent variables (5 factors selected
in the model) and 5 indicators of dependent variables (Private economic development)
The survey results are processed using Jamovi statistical processing software through the following steps:
First, assess the reliability of the scale with a Cronbach Alpha coefficient >=0.6 and a total item correlation coefficient >= 0.3
Second, test the value of the scale by EFA exploratory factor analysis in which the factor loading coefficient > 0.5 The factor extraction method used is the Varimax factor rotation method
Third, re-test the reliability of the scale with Cronbach Alpha coefficient after removing inappropriate indicators
Fourth, correlation coefficient analysis and multiple regression model
Regression equation:
Y = β 0 + β 1 *X 1 + β 2 *X 2 +β 3 *X 3 + β 4 *X 4 + β 5 *X 5
5.2.3 Research process
The research process of the topic includes the following steps:
6 New contributions of the thesis
6.1 Scientifically
The thesis has built a theoretical framework on factors affecting the development of the private economy, helping to understand the role of the private economy in the local economy
In which, the thesis contributes to synthesizing, systematizing and providing a number
of new urgent issues related to the theoretical basis of private economy, private economic development and state management of private economy The thesis has built a model of factors affecting private economic development By studying the case of Tay Ninh province, the thesis can contribute to the identification of emerging factors affecting the private economy such as management level, science and technology level, and market trends
Identify the
problem and
research objectives
Research Overview
Theoretical basis and theoretical framework
Design study Data Collection
Research data
analysis
Propose solution
Result research and reporting
Trang 86.2 In practice
The thesis provides empirical evidence on the current development status, factors affecting the development of the provincial private economy and state management of the private economy in Tay Ninh province during the research period From the results achieved in the analysis process, some policy recommendations for improvement at the national and local levels have been proposed The research results will be able to be reference materials for learners and researchers in the issue of private economic development and state management of the private economy in Tay Ninh province in particular and Vietnam in general
Chương 1 OVERVIEW OF RESEARCH SITUATION RELATED TO PRIVATE ECONOMIC DEVELOPMENT 1.1 Research related to private sector business development
1.1.1 Research on business development and the role of business
Research on business development theory and business characteristics
There are many different theoretical streams that explain the emergence and development of enterprises Popular research explaining the emergence and development of enterprises includes approaches from the behavioral and managerial perspective (Baumol, 1959; 1962; Williamson, 1967), from the perspective of modern industrial organization (Tirole, 1988), from the perspective of property rights (Williamson, 2002; 2009), and the research of Barney, (1991) and post-Barney studies
on the theory of the firm approached from the perspective of resource mobilization and use (Resource-based Theory of the Firm - RBF)
Research on the role of private sector enterprises Research on the role of private sector enterprises in the economy suggests that the private economy plays an important role and influence on society and the economy, is an important part of the development process, contributes and plays an important role in areas such as: growth, poverty reduction, job creation and improvement of living conditions, food security, efficient service provision, sustainable environment and tax contribution to the budget
1.1.2 Studies on the role of the state in management economy
Economics and economic development is a big topic, there are many domestic and foreign research works related to this issue, some typical works can be listed as follows:
Kalko (1990) analyzed the crises and restructurings of the world economy before 1990; analyzed in depth the role of the governments of some countries in planning and implementing strong economic reform policies to restructure sectors of the economy, overcoming some defects of the free market
Nguyen Hong Son's (2018) research has chosen the approach of pointing out the barriers that have prevented the private economy from truly playing its role over the past 30 years Studies on the private economy and state management of the private economy
1.2 General assessment of research situation and research orientation of the thesis 1.2.1 General assessment of research results
Research on private economic development has attracted the attention of many scientists Research works on private economic development are quite diverse and rich, according to many different aspects: for example, research on the role and importance of private economic development, research on theoretical issues raised when developing private economic development; research on enterprises in the private economic sector,
Trang 9research on policies and guidelines on private economic development, changes in perception of private economic development mostly agree on the following contents:
Firstly, research on enterprise development and the role of enterprises There are many theoretical lines explaining the birth and development of enterprises from many different approaches such as: behavior and management, modern industry organization, property rights, mobilization and use of resources Studies on the role of private economic enterprises in the economy argue that the private economy has an important role and influence on society and the economy, and is an important part in the development process
Second, studies on criteria for evaluating the development of private economic sector enterprises suggest that: private economic sector enterprise development can be specified based on the basic values of development such as changes in both quantity and quality of enterprises, and the expansion of business opportunities for enterprises Criteria reflecting the level of enterprise development include indicators reflecting the level of development and indicators assessing the role of the driving force for economic development
Third, studies related to state management of private economic development have proposed theories, tools and management methods to promote private economic development such as: theory of regional linkage effects, theory of new reforms, the role
of the state in supporting and encouraging private economic development, supporting the process of capital accumulation, expanding investment, promoting capital formation through private economic development, etc
Fourth, studies on factors affecting the development of the private economy have raised groups of subjective and objective factors Common subjective factors that affect the development of enterprises in the private economy are: the level and management style of enterprise leaders, business methods, resources and finance, characteristics of the enterprise, products and services, types of enterprises, strategies and characteristics of the organization, etc
1.2.2 Research Gap
(1) Studies have focused on explaining business development from many aspects such as mobilizing and using scarce resources, interests of participants, economic interests, financial interests, and business profits Studies have explained the development of economic sectors and value chains However, the theoretical basis and lessons learned on economic management, private economic development, and state management of private economy by provincial authorities in relation to influencing factors have not been fully explained
(2) Research works have pointed out the shortcomings that still exist in the process of implementing state management policies for the private economy However, most of them have not pointed out the factors affecting the effectiveness of implementing state management policies as well as the impacts on private economic development
(3) Determining the influencing factors (internal and external) and the level of influence on the development of the private economy with the characteristics of Tay Ninh has not been studied and discussed in depth in previous studies The thesis focuses
on identifying the influencing factors, thereby finding out the factors that hinder the implementation of the driving force role for the development of the province and the limitations in state management of the private economy of Tay Ninh
(4) The thesis will inherit knowledge related to the issue of developing private economic sector enterprises in the research process to highlight the specific issues of private economic sector enterprises in Tay Ninh Recommend policies and state management solutions suitable to the characteristics of private economic sector enterprises in Tay Ninh province in the new context
Trang 10Chương 2 THEORETICAL AND PRACTICAL BASIS
OF PRIVATE ECONOMIC DEVELOPMENT MANAGEMENT
2.1 Private economy
2.1.1 Concept of private economy
There are many different ways to understand the private economy From the above concepts and the approach to the Party's viewpoint on the private economy and the private economic sector, we can understand as follows: The private economy is an economic component based on private ownership of means of production, including individual, smallholder and private capitalist economies operating in the form of individual business households and other types of private enterprises The private economic sector is an area owned and operated by the private sector, operating and operating according to the constitution and the law
2.1.2 The nature of private economy
Private ownership is the premise for creating a private economy, while division of labor is one of the premises for the formation and development of goods and market economy, and is also the basis for forming national economic sectors through production specialization
2.1.3 Characteristics of private economy
- Enterprises in the private economic sector operate production and business for profit purposes
- The private economy is highly dynamic and flexible in production and business activities:
- The private economy has diverse scales and the ability to optimize the organization of production and business activities
- The private economy often invests in areas that require little capital and quick capital recovery such as trade and services
- The private economy is an important part of the economic structure, an objective necessity of market economic development
2.1.4 Types of private economy
In this study, 4 main types: Sole proprietorship, Private Enterprise, LLC, Joint Stock Company were considered
2.2 State management of private economic development
2.2.1 State management of economy
State economic management can be understood as the intentional impact of the subject carrying state power on the subjects and objects of management (economy), using certain tools and methods, making the subjects and objects operate according to the requirements of objective laws, in accordance with the orientation and goals of the State
2.2.2 State management of private economic development
State management of private economic development is an organized legal impact through a system of policies and measures to mobilize and effectively use resources and opportunities for private economic development State management of our country's private economy is implemented by law, policy, strategy, planning and other management tools, making private economic development one of the important driving forces of the economy
2.2.3 Subjects and contents of state management of private economic development 2.2.3.1 Subject of state management of private economic development
Trang 11The subject of state management of private economic development in the province is the responsibility of the Provincial People's Committee and the People's Committees of districts and cities under the province Specialized agencies under the Provincial People's Committee are relevant departments such as the Department of Planning and Investment, Department of Industry and Trade, Department of Finance and under the People's Committees of districts and cities under the province such as the Economic Department
2.2.3.2 Contents of state management of private economic development
Managing private sector development at the provincial level is an important part
of the economic management system of many countries Provincial levels often have specific roles and responsibilities in promoting and managing private sector activities Provincial levels are often responsible for managing private sector activities within their local areas This includes:
- Local Policy: Implement and adjust economic policies suitable to the characteristics of the province, to encourage the development of private enterprises
- Business Support: Providing business support services such as consulting, training, and financial support to promote the development of small and medium enterprises (SMEs)
- Calling for Investment: Organizing investment promotion activities, creating favorable conditions to attract investment projects to the province
2.3 Private economic development
2.3.1 private economic development
Private economic development is the development of economic components based
on private ownership in both quantity and quality to create fundamental changes in society, create momentum to promote economic development, solve employment, increase income for workers, and contribute to national political and social stability 2.3.2 The role of private economic development
Private economic development creates economic growth rate, promotes growth of gross domestic product (GDP), contributes to dynamic economic restructuring and makes an increasingly large contribution to the State budget: The private economic sector increases in quantity and affirms its position in the economy Previously, the private economy was not recognized, considered as an object of socialist revolution, must be reformed and eliminated The 6th Party Congress (December 1986) with the initiation of the renovation policy affirmed: our country's economy with a structure of many forms of ownership, many economic sectors exist long-term and equally develop together in the market economy
2.3.3 Content of private economic development
2.3.3.1 Quantitative growth
- Number and growth rate of private economic establishments
- Business structure of private economic sector
- Scale of capital, labor, facilities, technical equipment and machinery
2.3.3.2 Quality development
Enterprise development in qualitative terms is the increase in profitable enterprises in
an industry and the creation of quality jobs for the regional or national economy
Common criteria for qualitative assessment include: Revenue and profit, production value contributing to total product in the area
2.3.3.3 Increasing the contribution of the private economy to create development momentum
Trang 12Common criteria for evaluating the contribution of private economic sector enterprises to the role of driving force in the socio-economic development of the region include: Contribution of private economic sector enterprises to the GRDP of the region; Contribution to export turnover; Contribution to development investment capital; Contribution to job creation; Contribution to the state budget
2.4 Factors affecting private economic development
The private economy is influenced by many factors such as state policies, markets, investment capital, human resources, etc These factors affect the development of the private economy not individually but in a unified, closely systematic and closely related entity Therefore, it is necessary to carefully study the factors under certain conditions in order to have appropriate impacts to create reasonable correlations to promote the most effective development of the private economy under certain resource conditions
2.5 Experience in private economic development in some localities and lessons learned for Tay Ninh province
2.5.1 Experience of Hanoi city
2.5.2 Experience of Ho Chi Minh City
2.5.3 Experience of Binh Duong province
2.5.4 Lessons learned for private economic development in Tay Ninh province
Firstly, ensure stability, transparency and favorable investment environment among economic sectors
Second, build an equal and healthy business environment, creating favorable conditions for economic sectors to develop together
Third , the policy system to encourage local private economic development must
be flexible and attractive
Fourth, ensure effectiveness in state management of the private sector
Fifth, the province needs to have a policy of synchronous development, modernize infrastructure and pay attention to developing human resources and science and technology capacity for enterprises
Sixth , policies for the private economy must be appropriate to the specific circumstances of the country, locality and each stage of development of the private economy
Chương 3 CURRENT STATE OF PRIVATE ECONOMIC DEVELOPMENT AND STATE
MANAGEMENT OF PRIVATE ECONOMY IN TAY NINH
3.1 Overview of the socio-economic situation of Tay Ninh province
3.1.1 Overview of Tay Ninh province
Tay Ninh is a province in the Southeast region of Vietnam, with a natural area of 4,035.45 km 2 and a population of about 1,064,000 people Tay Ninh currently has 9 administrative units including Tay Ninh City, 02 towns, and 06 districts The economic - political - cultural center of the province is Tay Ninh City, 99 km northwest of Ho Chi Minh City on National Highway 22
3.1.2 Overview of the local economic situation
In the context of regional and international integration, implementing the Government's policy on promoting economic development according to Decision 2044/2010/QD-TTg of the Prime Minister on approving the Master Plan for Socio-Economic Development of Tay Ninh Province to 2020 (Government, 2010)
Trang 13Accordingly, the Provincial People's Committee has specified economic targets and one
of the important targets is to mobilize capital resources for economic development The Tay Ninh Provincial People's Committee has proactively directed sectors and localities
to focus on implementing tasks and solutions on socio-economic development and state budget estimates, determined to complete and exceed the annual plan Thanks to the good implementation of the COVID-19 Prevention and Control Program and the Socio-Economic Recovery and Development Program, the COVID-19 epidemic situation in the province has been well controlled, creating favorable momentum for socio-economic activities to recover and develop strongly
3.1.3 Advantages and disadvantages of natural conditions and socio-economic
conditions affecting private economic development in Tay Ninh province
3.1.3.1 Favorable
- Has rich natural resources and convenient transportation:
- Have policies to encourage domestic and foreign investment:
- Large population, abundant labor force:
- Infrastructure is gradually invested synchronously:
3.1.3.2 Hard
- World and domestic economy is unpredictable
- Private economic development in Tay Ninh province is still modest
- Labor quality in the province is still low
- Capital for production and business is still limited, product consumption market has not been expanded
- Slow to adapt to the development of science and technology of the 4.0 industrial revolution thanks to the internet of things, cyberspace, automation, robots
3.2 Current status of state management of private economic development in Tay Ninh province
First, administrative reform and investment environment Tay Ninh provincial government has made efforts to simplify administrative procedures, reduce time and costs for private enterprises in establishing and operating businesses
Second, financial support and investment incentives The provincial government has implemented preferential policies on tax, land, and financial support for private enterprises, especially those investing in priority areas such as processing industry , high-tech agriculture, and services
Third, infrastructure development Tay Ninh provincial government has continuously focused on investing in infrastructure development, especially industrial parks and industrial clusters to attract private enterprises This includes improving transportation, electricity supply, water supply and waste treatment
Fourth, strengthen management and supervision Improve the quality of state management of private enterprise operations, including the implementation of legal regulations and inspection and supervision of the implementation of financial and environmental obligations The provincial government also creates a mechanism to resolve complaints and disputes between private enterprises and state agencies to ensure the legitimate rights and interests of relevant parties
Fifth, training and human resource development State management entities on economic development in Tay Ninh province have increased training and skill development programs for businesses and workers to improve the competitiveness and