Policy to encourage investment and industrial development of thai binh province

1 INTRODUCTION 1. Research motivation Thai Binh is an agricultural province in the center of Northern Delta, the industrial proportion in the economic structure is low. To implement objectives of industrial development, Thai Binh government has established, issued a number of policies, including policies to encourage investment and industrial development of the province. The system of these policies has actually achieved certain results in the process of industrial development in Thai Binh province. However, policies for encouraging local investment currently reveals overlapping and inadequacies. Policies to encourage investment are composed of many unit policies, but previous studies did not indicate the degree of influence of each policy on development process of industry as well as analyze the level of influence of factors on policies, especially applying an approach from theoretical study for the areas and local. That was why the reseacher chose the topic "Policy to encourage investment and industrial development of Thai Binh province" for the dissertation. 2.Research objectives Firstly, forming the theoretical framework for the study of policies to encourage investment and industrial development in Thai Binh province. Identifying factors affecting policies, and then clarifying the subjects being influenced by these policies. Secondly, analyzing current situations of policies to encourage investment and industrial development of Thai Binh province in the period from 2006 to 2013, indicating strengths, limitations and shortcomings of these policies, conditions for successful implementation of policy solutions. Thirdly, proposing solutions that have a scientific basis in order to complete policies of encouraging investment and industrial development in Thai Binh province, being suitable to the context of international economic integration and reality of socio-economic development in Thai Binh province as well as in Vietnam. 2 To accomplish the research objectives, the dissertation focused on studying to answer the following research questions: Which basic unit policies belong to system of policies encouraging investment and local industrial development.? - What factors affect policies encouraging investment and local industrial development.? - What methods are used to assess the influence level of the unit policies of policies encouraging investment and local industrial development.? - How are current situations of industrial development in Thai Binh province? - What criteria are chosen to assess current situations of policies encouraging investment and local industrial development.? Strengths and weaknesses of these policies and causes of the weaknesses? - What solutions and recommendations are proposed to complete policies encouraging investment and local industrial development.? 3. Research subject and scope * Research subject: The dissertation focused on studying policies encouraging investment and local industrial development. * Research scope: - Regarding content: Policy encouraging investment and local industrial development is a complex system with many unit policies. Some policies such as tax policy, credit policy local authorities implement following the central regulations and there is little change when applying to reality. In this study, with the research scope of policies in local authorities (provincial policy), the dissertation will only focus on policies strongly devolved to local authorities with the 4 following basic policies: (1) incentive policies on land use; (2) policies supporting infrastructure; (3) policies promoting investment and supporting public services; (4) policies supporting human resources training. - Regarding space: the dissertation focused on policies encouraging investment in Thai Binh province to develop industry associated with the operation of both domestic and foreign enterprises. Researching 3 experiences of some countries in the region, some provinces in the country in order to draw experienced lessons for Thai Binh province. - Regarding time: the dissertation reviewed, assessed current situations of industrial development and policies encouraging investment and industrial development of Thai Binh province from 2006 to 2013; proposing sentiment, orientation and solutions to complete policies encouraging investment and industrial development in Thai Binh province upto 2020. 4. Research methods To fulfil the research objectives, the dissertation used qualitative and quantitative research methods, research framework was presented in Chapter 1. 5. Research implications Implications for academics, argument The dissertation supplemented and clarified the theoretical framework studying policies encouraging investment and provincal industrial development based on overview basis of research work in and out of the country on this issue that were: (1) Identify four basic unit policies belonging to policies encouraging investment and provincial industrial development including incentive policy of land use, policy supporting infrastructure, policy promoting investment and supporting public services, policy supporting human resources training. These are the key policies having a significant impact on local industrial development, as well as policies that provincial governments have the ability to manipulate and make specific decisions, being suitable to real conditions in the local. (2) Putting forward econometric model including four independent variables which are the aforementioned policies and the dependent variable is intending to continue expanding investment in the industry sectors of businesses. The dissertation tested dependent relationships and proved that intending to continue expanding investment in the industry sectors of businesses were affected by these 4 policies. Conclusions and recommendations from the research findings - Policies encouraging investment and industrial development in Thai Binh province are suitable to the actual situations and are important solutions 4 contributing to attract domestic and foreign investors in order to achieve the objective developing industry in Thai Binh province. - The level of relevance and effectiveness of each policy is quite different as assessed by businesses in the area, but generally low. - Econometric model showed the influence level of the 4 aforementioned policies to a decision to expand business and investment by enterprises in industry sectors in Thai Binh province. In which, policy supporting infrastructure had the most influence. - The dissertation proposed a system of solutions to complete policy encouraging investment and industrial development in Thai Binh province. 6. The dissertation structure: 4 chapters CHAPTER 1: OVERVIEW OF RESEARCH PROJECTS RELATED TO TOPICS AND RESEARCH METHODOLOGY 1.1 Overview of research projects related to topics 1.1.1 Research projects in the world 1.1.2 Research projects in Viet Nam 1.1.3 Conclusions from the research overview The studies focused on the process of analyzing the central policy, mostly looking for solutions to measures to encourage investment to improve the investment environment in Vietnam. However, there were not studies on policies encouraging investment and local industrial development in approach from theoretical research to apply to areas and localities. The studies did not give adequate factors affecting investment policies in localities as well as ways to assess the effectiveness and efficiency of policies at the provincial government level. There have been no researches on policies encouraging investment and industrial development at the level of provincial government policies towards research on the influence of each unit policy of policies encouraging investment and local industrial development, affected factors and solutions completing policies that are suitable to reality in the local, 5 developing advantageous industry sectors in the local to contribute to the process of restructuring local economic sectors. 1.2. Research methodology 1.2.1 Research framework 1.2.2 Research process 1.2.3 Data collection for research * Secondary data * Primary data (approaching real situations through survey questionnaire) The researcher conducted a survey of the subjects affected by policies, which are businesses investing in industry sectors in the province areas and survey management staff (entity planning and organization implementing policies). The survey aimed to approach better and be more realistic with the actual situations. * Sample: The dissertation used 2 forms of questionnaire to conduct the survey: Form 1: Surveying businesses investing in the industry sectors. There were total 300 questionnaires delivered; questionnaires collected 258. Form 2: Interviewing state management officials (entity planning and organization implementing policies). There were total 95 interview question sheets conducted; interview question sheets collected 91. * Data analysis Descriptive statistical method, summarizing method, economic analysis, comparing and researching method, analysis of the logical structure of the document collected, survey method, statistics, modeling and statistical test method. 6 CHAPTER 2: THEORETICAL BASIS AND EXPERIENCED LESSONS OF POLICY ENCOURAGING INVESTMENT AND LOCAL INDUSTRY DEVELOPMENT 2.1 Industry and criteria assessing local industry development 2.1.1 Industry and its role to local economic development 2.1.2 Criteria assessing local industry development 2.1.2.1 Production value and industry production index 2.1.2.2 Criteria of added value in industry development 2.1.2.3 Growth speed of industry sectors 2.1.2.4 Results and operating effectiveness of businesses in industry sectors 2.1.2.5 Industry structure and industry structure restructuring 2.1.2.6 Operating scope and scale, specializing skills and economic connection 2.2 Policies encouraging investment and local industry development 2.2.1 Concept of policies encouraging investment and local industry development "Policies encouraging investment and local industrial development are systems of perspectives, objectives, principles and actions that local governments use to facilitate to support businesses in the process of investing and develop local industry, contribute to develop local socio- economic development." 2.2.2 Objectives of Policies encouraging investment and local industry development 2.2.3 Principles performing objectives of policies encouraging investment and local industry development - Following policies and laws of the central government - Ensuring synchronization between unit policy when implementing objectives - Being suitable - Ensuring effectiveness and efficiency 7 2.2.4 Unit policies 2.2.4.1 Incentive policy on land use - Concept: Incentive policies on land use are solutions and tools for planning land use, conditions during land lease such as time of land lease, price of land lease so that businesses can approach land when carrying out projects. - The objective of incentive policies on land use: (1) Create conditions for businesses to have premises producing and doing business; (2) Reduce the cost of renting land for businesses. - The content of the policy: Incentives from local governments to businesses to support money for land lease, for time of land lease. 2.2.4.2 Policy supporting infrastructure - Concept: Policies supporting local infrastructure are the overall perspectives, principles, tools and solutions that local governments apply to ensure to supply adequately, effectively infrastructure services for the process of industrial development in particular, socio-economic development with strategy of each locality. - The objective of policies supporting infrastructure: Create favorable conditions for enterprises to quickly build the facilities to carry out production and business. - Content of policies supporting infrastructure: Support investment in essential construction such as traffic roads, coastal highways, high- speed roads, railways the system of internal roads in industrial zones; invest to upgrade wastewater treatment plants as well as other utility services such as electricity, water supply, communications in industrial zones. 2.2.4.3 Policies promoting investment and supporting public services - Concept of policies promoting investment: Policies promoting investment can be understood as the overall methods and activities to guide investors to approach the investment opportunity in a local area. - Objectives of the policy: policies promoting investment have a positive contribution to attracting investment capital, promoting local image and improving significantly the investment environment. The objective of the 8 policy: (1) Facilitate businesses to implement investment procedures; (2) Intensify information on investment activities for businesses. * Policies supporting public services - Concept: Policies supporting public services are understood as guidelines and solutions of local governments in supporting public services for businesses in the process of investing in a local. - Content: Businesses which invest in a local are received benefits from the public services supporting policy such as: free information on the mechanisms of policies of the province and government. The support may be counted for rate % of cost of recruitment advertisement in newspapers, on the radio. The provincial governments also facilitate during business registration license, implementation of investment procedures, investment registration 2.2.4.4 Policy supporting human resources training - Concept of policies support training of human resources policies to support human resources training are the overall perspectives, solutions and tools that local governments use to support businesses in the process of training labors, thereby improving the quality of human resources, adapted to the requirements of businesses. - Objective : To facilitate businesses to have human resources rapidly to meet the requirements of production and business. - The content of the policy: + Building and developing school system, vocational training centers following the local development plans. + Creating favorable conditions for employees who are provided knowledge, professional skills according to practical requirements of businesses. 2.2.5 Assessment of effectiveness and efficiency of policies encouraging investment and local intrustrial development a) Assessing effectiveness of policies Effectiveness of policies = Results / Objectives 9 Criteria of Effectiveness 1: Assessing results of policy is through some criteria: (1): Number of businsses investing in industry in the provincial areas; (2) Scale of investment capital in industry sectors in the provincial areas; (3) Contribution level to the state budget of businesses investing in industry sectors in the provincial areas; (4) Export turnover of key products in industry sectors. Criteria of Effectiveness 2: Comparing value of industrial production gained over the years compared with the target set. Criteria of Effectiveness 3: Demonstrating compliance of the policy entities when policies are issued and put into practice, which is evaluated through: (1) The level of convenience for businesses when registrating business; (2) The level of convenience for businesses when approaching policy information; (3) Satisfaction level of policy subjects with unit policy when policies are implemented. b) Assessing effectiency of policies Effecticiency of policies = Results / Inputs Criteria of efficiency 1: Supporting funds from the local governments to implement policies. Criteria of efficiency 2: Contribution level to the state budget of industrial enterprises. Criteria of efficiency 3: Evaluation of businesses about effectiency of each unit policy in policy encouraging investment and local industrial development. 2.2.6 Factors affecting policies encouraging investment and local industrial development 2.2.6.1 Factor group of natural environment, economy, society (policy background): (1) Natural conditions; (2) Socio-economic conditions 2.2.6.2 Factor group of policy entity: (1) Strategy for local intrustrial development; (2) Organ of planning, organizing to implement policies 2.2.6.3 Factor group of policy subject: (1) Potential of businesses; (2) Attitude and actions from people, businesses to policies 10 2.3 Experiences of policies encouraging investment and local industrial development 2.3.1 Experiences from foreign countries: Experiences from Maha Sorakham province in Northern East, Thailand; Experiences from Giang To province - China; Experiences from Taiwan 2.3.2 Experiences in Viet Nam - Experiences from Nam Dinh province 2.3.3 Experienced lessons for Thai Binh - Firstly, policies encouraging investment and local industrial development need to be suitable with local characteristics. - Secondly, there should be a unified perspective of incentives, encouraging strategic industry sectors in the industrial development strategy of the country in general and Thai Binh province in particular, from which there are suitable incentive methods, not contradicted. - Thirdly, ensuring unification between the central policies and policies of local governments. Policies encouraging investment and local industrial development cannot separate policies encouraging national investment. - Fourthly, policies encouraging investment should be suitable with local industrial development strategy and focus on creating jobs in local. - Fifthly, while implementing policies, requiring clear delegation and devolution, avoiding overlapping of functions and tasks. - Sixthly, policies encouraging investment and local industrial development have to attract participation not only from the state management agency but requiring participation of other subjects in all economic sectors. 11 CHAPTER 3: ANALYZING CURRENT SITUATIONS OF POLICIES ENCOURAGING INVESTMENT AND INDUSTRIAL DEVELOPMENT IN THAI BINH PROVINCE 3.1 Overview of national conditions, socio-economic conditions in Thai Binh province affecting policies encouraging investment and industrial development 3.2 Current situations of industrial development 3.3 Current situations of policies encouraging investment and industrial development in Thai Binh province 3.3.1 Current situations of incentive policy on land use 3.3.2 Current situations of policy supporting infrastructure 3.3.3 Current situations of policy promoting investment and supporting public services 3.3.4 Current situations of policy supporting human resources training 3.4 Assessment of effectiveness and efficiency of policies encouraging investment and industrial development in Thai Binh province 3.4.1 Effectiveness of policies - The performance results of targets for industrial production value in the period 2006- 2010 and the period 2011 -2013 were not achieved: the period 2006 -2010, the target set to growth rate of 27% while performance result was 25.2%, especially in the period 2011-2015: the target set to growth rate of industrial production value of 20% but in the period 2011-2013 was only 10.7%. Although the period was unfinished but with these results it is very difficult to achieve goals. - Convenience level of approaching policy information in provincial governments The survey result of 258 businesses assessed: 18.6% of the surveyed businesses assessing services provided information by the provincial governments to businesses at low level; 25.2% assessed at a medium level; 34.1% assessed at a good level and 22.1% assessed at very a good level. Average point was 3.6. 12 For state management officials, when surveying on this issue, average point was 3.31. Specifically, 27.5% of officials surveyed said that the services providing information by the provincial governments to busiensses were complete; 22 % assessed the information provided is clear and complete. - Satisfaction level of policy subjects with unit policies when implementing policies - Satisfaction of policy objects for the department policy when the policy is implemented When evaluating the satisfaction level of policy subjects with unit policies when they were implemented, the average point of businesses with the policies was only at low medium level. 3.4.2 Efficiency of policies - Supporting funds from the local governments to implement policies For supporting funds for promoting investment over the years had increased but at a low level. Specifically, an increase from 2,317 million VND in 2012 to 2,690 million VND in 2013 and 2,820 million VND in 2014. It proved that, Thai Binh provincial governments had investing plans in this activity but supporting level was limited. Regarding the financial support of the provincial governments to provide vocational training for workers, 35.7% of businesses surveyed rated that the supporting level was high; 53.5% rated at a moderate level. The average point was 3.21. For management officials, 29.7% rated at a high level; 14.3% rated supporting level at a very high level, but 33% rated supporting level at a low level. Therefore, it can be seen that, even the management officials who are directly involved in setting policies have contradicted assessments. Hence, there should be more careful and practical studies, so policies become a more effective tool to help local governments when implementing goals. - Assessment of businesses about efficiency of each unit policy of policies encouraging investment and local industrial development (1) Efficiency of incentive policy on land use According to the survey results, 22.5% of business rated that support from 13 the authorities for ground clearance is very inefficient; 34.1% said that it was not efficient; 19% rated that it was at a moderate level. Meanwhile, the percentage of efficiency assessment was only 16.7%; 7.8% said that it was very effective (mean 2.53) (2) Efficiency of policy supporting infrastructure - Assessment of businesses about efficiency of policy supporting infrastructure: The survey results of 258 businesses on efficiency of policy supporting infrastructure: 48.8% of surveyed rated that the policy had low efficiency; 42.6% of businsses rated at a moderate level; only 7.8% rated that the policy was efficient and 0.8% rated that the policy was very effective. The mean of assessment was below medium, only 2.6. (3) Efficiency of policy promoting investment and supporting public services The survey results of 258 businesses on the efficiency of policy promoting investment: 3.1% of businesses surveyed rated that the policy was inefficient; 37.6% of businesses surveyed rated that the policy had low efficiency; 21.7% rated at a moderate level; 25.2% rated that it was efficient and 12.4% rated that it was very efficient. Mean of assessment was 3.06. The survey results of officials were similar with mean of 3.11. Where 23.15% of officials surveyed rated that the supporting policy was efficient; 15.4% said that it was very efficient. - Assessment about efficiency of policy supporting public services The survey results of both subjects were quite similar about efficiency of policy supporting public services and were also at an over medium level. Specifically, businesses’ side, 49.2% of businesses surveyed rated that the supporting policy was efficient; 11.2% rated that it was very efficient. Mean was 3.41. Management officials’ side, mean was 3.49. (4) Efficiency of policy supporting human resources training - Assessing efficiency of the financial support from the provincial governments to provide vocational training for workers. The survey results of 258 businesses on efficiency of policy promoting 14 investment: 5.8% of businesses surveyed rated that the policy was inefficient; 50.4% of businesses surveyed rated that the polity had low efficiency; 30.2% rated at a moderate level; 12.4% rated it was efficient and only 1.2% rated that it was very efficient. Mean was 2.53. 3.5 Analyzing effect of policy encouraging investment and industrial development in Thai Binh province on intending to expand investment in production and business of businesses through the survey data Regression model: Y = 0,139 X1+ 0,143 X2 + 0,109X3 + 0,094X4 + 1,957 Where: Y: Intend to expand investment in production and business of businesses; X1: Incentive policy on land use; X2: Policy supporting infrastructure; X3: Policy supporting human resources training; X4: policy promoting investment and supporting public services 3.6 Achievements, limitations of policies and causes 3.6.1 Achievements of policies and causes 3.6.2 Limitations of policies and causes * Incentive policy on land use - For planning work: Efficiency of planning work was not high, the percentage of land area retrieved compared to the planning area was not high, and the percentage of retrieving land in the planning area was low. - For ground clearance work: In the context of the policy, it only mentioned support from local governments about funds for compensation and ground clearance and did not mention the role of local governments to resolutely implement the ground clearance following the schedule leading to many projects delayed due to not being able to implement ground clearance by many different causes, not only from funding problems. Thus, although it was incentive policy on land use, but businesses did not approach land expected to be rent. + The policy stipulated the approval procedure or granted investment certificates, but did not mention the content after licensing. When there were changes in policies, there were not financial regulations on transitions between the policy of previous stage and the policy of later period leading 15 to problems of businesses not being resolved promptly. * Policies supporting infrastructure - In policy supporting infrastructure only the content of supporting technical infrastructure was mentioned, but the content of supporting social infrastructure was not mentioned. - About supporting funds: Supporting funds from the authorities in Thai Binh province to build infrastructure remained low, at different levels and lack of synchronization. * Policy promoting investment and supporting public services + Content of activities promoting investment was lacked and ineffective. There were a number of expensive investment promotions but the information for investors was still very sketchy. The projects called for new investment only gave information about sectors, total investment capital very general. While there were a lot of specific information that investors needed did not have. Information of investment promotion did not reflect things that local areas needed and show what investors wanted. + Funds organizing activities of investment promotion was still very limited. Most of promoting activities were organized by sponsored funds, or combined with other activities, but there was not an expenditure source only for investment promotion. - Policy supporting public services + For investment management: The policy was a bit tight but the procedures for investment were inconsistent, time to resolve procedures was long. + For resolving investment procedures: Businesses were not aware of procedure process so the file was not enough and legal then it had to be corrected and supplemented; opinions from some units were not cared enough; coordination among agencies was loosen and slow. Administrative reform had changes but some bureaus and local areas implemented slowly, which did not meet the requirements, create conditions, encourage and attract investment projects. For business registration: Licensing business registration online was not done as infrastructure, information technology facilities at the Bureau did 16 not meet the requirements Credit guarantee was not established for small and medium-sized enterprises as stipulated in Decree No. 90/2001/ ND-CP of the Government. Implementing interest subsidy for capital loans to businesses was not very big because they did not meet the procedures. * Policy supporting human resources training + Support mechanisms were still scattered and not focused on key points so there was lack of capital to carry out encouraging investment. Policy regulations on vocational training for labors were not done well. Training of human resources was not put in right place for policies encouraging investment. Policy training human resources was confused and passive, there was no synchronization with other unit policies in the system of encouraging investment. Support funds for businesses was only mentioned in the content of new policies when carrying out vocational training for employees but there was no specific orientation for these businesses about vocational training to encourage local investment. * Causes of limitations - Policies were not really adapted to the international environment movements as well as the domestic environment, especially in the investment environment of the Red River Delta. - Financial resources of Thai Binh province to policy implementation remains limited. - Strategy for developing industry sectors of Thai Binh province did not really clarify the local strengths. - Identifying and selecting policy issues were limited. - There was lack of participation from subjects affected by policies, so it did not really meet the practical requirements. - Not really focusing on assessing policy options that were given in the process of setting up policies. - There was no clear delegation and devolution when organizing and implementing policies. - Communication to policies was not done well. 17 CHAPTER 4: SENTIMENTS AND SOLUTIONS TO COMPLETE POLICIES ENCOURAGING INVESTMENT AND INDUSTRIAL DEVELOPMENT IN THAI BINH PROVINCE 4.1 Orientation of developing industry in Thai Binh province to 2020 4.2 Orientation of attracting investment and industrial developming in Thai Binh province to 2020 - Content of policies has to identify important sectors and fields, needing to encourage strategic and long term investment. - Setting up policies encouraging investment highly feasibly, defining clearly incentive fund sources, mechanisms, specifications, beneficiaries, resolving bodies, procedures , implementation of financial regulations (transitional regulations) - Attracting selectively, focusing on projects using high technology, clean technology and being able to create competitive products; projects producing exports; projects developing supporting industry; projects likely participating in global value chains, contributing big budget. The general trend is not increasing outsourcing projects, pure assembly, paying attention to attracting creative industrial projects. On the other hand, paying attention to projects using many employees, overcoming jobs in remote and switching areas with idle employees. 4.3 Sentiments completing policies encouraging investment and industrial development in Thai Binh province 4.4 Solutions completing policies encouraging investment and industrial development in Thai Binh province 4.4.1 Completing incentive policy on land use - Firstly, land policy must stem from planning - Secondly, the process of compensation and ground clearance needs changing, eliminating difficulties for businesses. - Thirdly, reducing time approaching land - Fourthly, developing land management staff team - Fifthly, paying more attention to communication 18 4.4.2 Completing policy supporting infrastructure Implementing incentive mechanisms, encouraging investment in building houses for employees, developing social services for specialists and employees. - Having appropriate policies to support enterprises to invest in building houses for workers in industrial zones, besides free land use policies, it is essential to have policy supporting investment capital in housing infrastructure to workers. 4.4.3 Completing policy promoting investment and supporting public services * Policy promoting investment: - Strengthening propaganda and broadcasting Thai Binh image in order to attract investment. Strengthen state management work, investment promotion must be closely linked to the management of foreign investment, so support to investors is unified throughout all three stages of prepararing projects, licensing and implementing activities. Good investment promotion will attract more investment projects, which creates precursors for investment management and on the contrary, good investment management is also an effective method, least expensive to campaign investment promotion. * Policy supporting public services - Continuing to promote administrative reform, improving accountability, quality of advising, guiding and resolving procedures for investors, in which completing one-door mechanisms in Authoriy for Planning and Investment. Further strengthening work of verifying license of investment certificates as well as inspecting and monitoring investment activities. - Completing the process, simplifying investment procedures. Policies in the province should gradually shift from "incentive cash" to "post- incentives" to encourage businesses that have produced and done business to continue to expand more investment. 4.4.4 Completing policy supporting human resources training - Applying policy supporting businesses to train human resources, through 19 business support of expenditure to train and retrain workers. - Needing to specify policies supporting human resources training. Policies support human resources training not only refer to the level of support funds for businesses in the process of training human resources. In this policy, it is necessary to pay attention to advising, supporting employees while looking for jobs after apprenticeship. 4.5 Conditions implementing solutions (1) The central should continue to complete macroeconomic policies on investment, encourage investment in industry sectors (2) Strengthen coordination and cooperation with other local areas in the Red River Delta region; (3) Enhance quality of planning and developing industrial sectors; (4) Improve efficiency of planning and organizing policy implementation; (5) Improve the transparency of policies; (6) Strengthen propaganda for policies. 20 CONCLUSIONS The dissertation title Policy encouraging investment and industrial development in Thai Binh province did some of the following contents: The dissertation clarified the literature review and formed the theoretical framework of policies encouraging investment and industrial development in Thai Binh province. The dissertation identified four basic unit policies, highly decentralized by the Central to the provincial governments: Incentive policy on land use; Policy supporting infrastructure; policy promoting investment and supporting public services; policy supporting human resources training. Supplementing and clarifying concepts, objectives and principles of implementing policy objectives with the provincial government level approach method. Identify factors affecting policies including factors of policy context, factors of policy entities, factors of policy subjects. The dissertation assessed current situations of industrial development in Thai Binh province, current situations of policies encouraging investment, determined criteria to assess the effectiveness and efficiency of policies, thereby determining the level of influence of policies encouraging investment to the process of industrial development in Thai Binh province in the period from 2006 to 2013. The dissertation clearly showed strengths, limitations and shortcomings of the policies: (1) Some policy issues were overlapping and conflicting, many unsuitble points with reality in the local areas, (2) Support mechanisms were still scattered, lack of focus, (3) Lack of financial regulations in management work and policy implementation; (4) Lack of financial regulations shifting among the policy periods; (5) Building policy was not derived from planning; (6) Lack of coordination among the units in the process of organizing and implementing policies. The dissertation proved the influence of policies encouraging investment on the process of industrial development in Thai Binh province; the influence level of each unit policy of policies encouraging investment and industrial development in Thai Binh province on intending to continue expansing investment of businesses and assessed the importance of these policies. The dissertation proposed scientific solutions to complete policies [...]... encouraging investment and industrial development in Thai Binh province, including: solution group to complete incentive policy on land use, solution group to complete policy supporting infrastructure, solution group to complete polity promoting investment and supporting public services, solution group to complete policy supporting human resources training The dissertation proposed conditions to be able to. .. basis of being suitable with other local areas in the country Specifically: (1) The central continued to complete macroeconomic policies on investing, encouraging investment of the industrial sectors; (2) Strengthen coordination and cooperation with other local regions in the Delta region Red River; (3) Enhance quality of the planning work and industrial development; (4) Improve efficiency of planning and. .. Improve efficiency of planning and organizing policy implementation; (5) Improve the transparency of the policies; (6) Strengthen propaganda for policies The research findings of the dissertation was the reference for further studies on investment attraction activities, the state management policy to encourage investment in industrial sectors and promote movements of economic structuring . encouraging investment and industrial development of Thai Binh province from 2006 to 2013; proposing sentiment, orientation and solutions to complete policies encouraging investment and industrial development. Orientation of attracting investment and industrial developming in Thai Binh province to 2020 - Content of policies has to identify important sectors and fields, needing to encourage strategic and. industrial development in Thai Binh province; the influence level of each unit policy of policies encouraging investment and industrial development in Thai Binh province on intending to continue