Building industrial zones solution to economic development in rural and mountainous locations of Dong Nai province

1 2 3 4 Firstly, I’d like to express my great thankfulness to all directors, professors, tutors, and coordinators of the MMVB program. And to Dr. Tran Thanh Xuan, who has devotedly counselled me to finish this thesis. And also to all organizations and individuals enthusiastically help me during my course and especially in my time to fulfil the thesis. Although I have already made my all efforts, the thesis may still have some shortcoming. I do hope to get advices from the Examiners’ Board, from professors and from all classmates,…in order to well better my thesis. Finally, I’d like to wish healthy, happy and successful to all of you. Ho Chi Minh, Feb. 2007 Nguyeãn Ñöùc Trí 5 1. Research rationale 1 2. Research Aim, Object, and Scope 2 3. Research Methods 3 4. Contributions 3 5. Basic concepts 3 6. Research Structure 5 6 1.1.1 Role of Industrial Zones, Export Processing Zones in the Process of International Economic Integration and International Labor Arrangement 6 1.1.2 Viewpoints of Vietnamese Communist Party and State on developing and managing Industrial Zones, and Export Processing Zones 9 11 1.2.1 Socio-economic Development requires the balance, and harmony between Cities and Rural Areas 11 1.2.2 Specific characteristics of Dong Nai Province and Economic Development Model in rural areas 12 1.2.3 Objective factors for Industrial Zones Development in rural mountainous districts of Dong Nai Province 13 16 2.1.1 Dong Nai’s Overview 16 2.1.2 Planning and developing Industrial Zones in Dong Nai 17 31 6 2.2.1 Development situation of Industrial Zones in rural mountainous areas 31 2.2.2 Review of Achievements, Shortcomings and Causes 38 2.2.2.1 Achievements 38 2.2.2.2 Shortcomings need to be improved 43 46 3.1.1 Focal Industrial Zones Development is indispensable trend in the process of industrialization and modernization 46 3.1.2 Criteria for orientation of Industrial Zone Development 46 48 3.2.1 Orientation of Industrial Zones Development in Dong Nai Province to the year 2010 48 3.2.2 Plan and development of Industrial Zones to 2010 49 3.2.3 Forecast of Labor Demand in Industrial Zones in Dong Nai Province 51 52 3.3.1 Solutions to plan, site clearance, compensation and finding out the capital for infrastructure investment 52 3.3.2 Link the enterprises in the Industrial Zones with local materials – the solution of Industry-Agriculture-Forestry-Fishery 53 3.3.3 Environment Protection Solution 54 3.3.4 Solution to train and enhance human resources quality in rural mountainous districts 56 3.3.5 Solutions to social issues in the process of Industrial Zones Development 58 59 A NNEXES 7 - Vietnam has been, in recent years, continuously in its process of “Industrialization and Modernization” in which agricultural modernization in rural areas is the issue attracting remarkably the concerns of the Government. This was emphasized again in the Document of Tenth Vietnamese Communist Party Congress: “Our policy is to further speed up industrialization and modernization of rural agriculture, solves synchronously problems related to agriculture, rural areas, and farmers. We have to develop agriculture comprehensively, and transform effectively the agricultural structure and rural economy in the direction of making more and more added value. This development must be suitable for processing industry and market; ”. - Dong Nai belongs to the focal economic region of the South-East Vietnam. Dong Nai, together with Ho Chi Minh City, Binh Duong, and Ba Ria- Vung Tau made up the “motive force” implementing the process of industrialization and modernization in the South Vietnam and nationwide in general. For this reason, developing, and transforming the economic structure in the direction of increasing the portion of industry and service as well as developing in comprehension and balance between cities and rural areas are urgent missions of the Province. - In reality, economic development in Dong Nai is not synchronous. The gap of living standard and infrastructure between cities and rural mountainous areas is quite wide. Dong Nai also has the largest potential of agricultural land compared with other provinces in the South-East Vietnam. Therefore, developing Industrial Zones in rural mountainous areas is the effective solution to make 8 balanced development in the areas; this is the way to further promote economic potential as well as exploit effectively the local resources. - Based on the Central Party’s Solution, Chairman of Dong Nai Province People’s Committee issued Decision No. 4832/QÑ.CT.UBT dated December 30, 2002 on establishing Center for Developing Rural Mountainous Industrial Zones under Dong Nai Industrial Zones Authority (DIZA). The major mission of this center is to develop infrastructure and attract investment to rural industrial zones among which Industrial Zones of Xuan Loc, Tan Phu, Dinh Quan are very first examples. - The purpose of developing industrial zones in rural mountainous districts is to transform economic structure, further promote the industrialization through infrastructure development, investment attraction, especially foreign investments. From this process, we enhance the effectiveness of land use, generate more stable employment for local laborer, transform local economic structure in the direction of increasing the labor portion in industry and service. - In addition, the research will contribute to the effective and sustainable development of these Industrial Zones. - Development of industrial zones in rural mountainous areas of Dong Nai to attain the planned goal of Economic, Political and Social mission. 9 - The research scope is the industrial zones areas of Dong Nai Province, especially industrial zones already approved by the Government. This proposed solution is available to 2010, vision to 2020. - Methods used in the research are to make statistic, analyze, compare, summarize; evaluate the reality from some programs, projects related to the research; as well as inherit the available documents. - First of all, I make statistic data, map out the plans, analyze and evaluate the real figures. From this result, I conclude and suggest necessary solutions. - Supplement backgrounds on development of industrial zones in rural mountainous districts. - Assess the current status of planning, and development typical mountainous industrial zones. - Suggest the necessary proposals to the sustainable development of industrial zones based in rural mountainous areas of Dong Nai Province. - During this research, some terms should be fully understood as follows: (IZ) are focal industrial areas established according to the Decision of the Central Government with the definite borders. These IZs, without inhabitants, provide supporting services for production (Regulated in Decree No.192-CP of Central Government dated December 25,1994). 10 refers to the people living in a certain geographical or administrative area, having civil administration relationship in that area, receiving benefit directly from service provided by the Central Government. refers to a certain group of people living in a definite locality (hamlet, village ), where the economic condition, language, culture are similar. When we mention Community, we refer to the inhabitant relationship. The inhabitant and Community are unseparated. According to Constitution 1992 of Vietnam: The Socialist Republic of Vietnam is a State of the people, by the people, and for the people. All State power belongs to the people and is based on an alliance between the working class, the peasantry, and the intelligentsia. Nature of Vietnamese State is for the people, consider serving people the highest goal; The State manages the national economy by means of laws. The local governments have the mission of guiding and organizing the Law implementation in their localities . “Environment consists of natural and artificial material elements, which have the close relation, surround human being, influence on living condition, production, existence, and development of human being and nature” (Law on Environment Protection) “Any economy guarantees the growth and social reproduction. These indicated in comparison of the two different periods and calculation in percentage” “Economic development is economic growth with the assuarance of goal, balance and effectiveness” [...]...Preface Chapter 1 Backgrounds on Industrial Zones Development in general, and Industrial Zones development in rural mountainous Districts of Dong Nai province Chapter 2 Present status of Industrial Zones development in rural mountainous districts of Dong Nai province in recent years Chapter 3 Solution to Industrial Zones development in rural mountainous Districts Conclusion 11 - At any countries,... made use of For this current status, the province has to map out the economy development to develop the economy in rural areas In some chosen solutions, Building and developing Industrial Zones in rural areas is a proper one - Dong Nai is in the focal economic region of the South Vietnam, one of the leading provinces in terms of foreign investment attraction to Industrial Zones However, the investment... homeland” In addition to the development of industry and service, the spiritual and physical living standard of the rural people will be improved and that the gap between cities and rural areas will be narrowed down, too - Industrial development in rural areas does not reduce capacity of agricultural production On the contrary, it brings industrialization to there, thanks to industrial development to. .. institutionalizing of policy, issuing and implementing of regulatory documents related to Industrial Zones and Export Processing Zones have been seriously applied The State’s agencies step by step institutionalize the sound leadership of the Party on development of Industrial Zones and Export Processing Zones, issue the regulatory documents, set up the legal framework for the development of Industrial Zones and Export... Processing Zones based in Provinces or Centrally-administered Cities, the Central Government, in addition to Ministries, Central agencies and Provincial People’s Committee, decided to set up Industrial Zones Authorities at 16 provincial level They are 32 Authorities managing directly industrial zones within the territory of a certain province, implementing the mechanism of “onestop, on site” - Developing... establishing lager industrial clusters and open economic zones (Communist Party of Vietnam: Document of National Congress IX) - In recent years, Industrial Zones and Export Processing Zones have indicated their roles of being strong industrial forces, contributed more and more in the process of socio -economic development of the country That has proved the sound leadership of the Party in economic development. .. provinces 24 - Investment attraction to Industrial Zones in Dong Nai, especially foreign investment, has stably increased in recent years In the first half of 2004, due to the issuing of amended Law on Value Added Tax and Law on Income Tax of Enterprise, and the abrogating some favor for foreign enterprise, the foreign investment has decreased in some localities However, in Dong Nai province, investment... comprehensively and in a sustainable manner the economy in the process of industrialization, and modernization is the way to attain planned socio -economic goals, improve spiritual and physical living standard of Vietnamese People Vietnam is now striving to speed up the urbanization, developing rural areas, narrowing the gap of living standard between cities and rural areas because in the socio -economic development, ... So in order to develop an economy in both creating high added value and effectively using resources, the development of Industrial Zones in rural mountainous areas of the Province is the strategy of attracting less benefit 31 projects to the rural mountainous areas Firstly, the projects will create jobs for local inhabitants and solve the matter of unemployment there; secondly, stabilize the provincial... using machine instead of human power; applying technological achievements, advanced management, medicine, breeding animal, fertilizer, intensifying cultivation, and increasing productivity On the other hand, because Industrial Zones developed only on the solid land background where the land does not meet the standard for agricultural production and industrial plant, the development of industrial zones . on Industrial Zones Development in general, and Industrial Zones development in rural mountainous Districts of Dong Nai province. Chapter 2. Present status of Industrial Zones development in. characteristics of Dong Nai Province and Economic Development Model in rural areas 12 1.2.3 Objective factors for Industrial Zones Development in rural mountainous districts of Dong Nai Province 13. Plan and development of Industrial Zones to 2010 49 3.2.3 Forecast of Labor Demand in Industrial Zones in Dong Nai Province 51 52 3.3.1 Solutions to plan, site clearance, compensation and finding