Mobilizing financial resources for investment in socio economic infrastructure inmongcai international border gate city

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY NguyEn viEt dUng THIS THESIS HAS BEEN COMPLETED AT NATIONAL ECONOMICS UNIVERSITY Supervisor 1: Assoc.Prof.Dr Le Hung Son Supervisor 2: Dr Cao Thi Y Nhi Reviewer 1: Assoc.Prof.Dr Nguyen Huu Anh Mobilizing financial resources for investment in socio-economic Reviewer 2: Assoc.Prof.Dr Nguyen Hong Thai infrastructure in Mong Cai international border gate city Reviewer 3: Dr Pham Phan Dung Major: Finance - Banking Major code: 62340201 The thesis will be defended at University Assessment Council, National Economics University at 2016 The thesis will be found in: - The National Library HA nOi, 2016 - The Library of National Economics University INTRODUCTION promote the best advantages on the basis of the maximum use of resources from all domestic and abroad economic sectors to develop The study and proposal mechanisms, policies and measures for mobilizing resources to build Mong Cai become an international border gate city is considered as a very necessary and urgent task.Approaching the problem from the national interest with the general vision, comprehensive and long-term to determine the direction, goals, measures, mechanisms and financial policy formidable strategic in nature, looking out the key stage, breakthrough to concentrate investment and development resources; which, it should prioritize the financial resources for the construction of important infrastructure projects, creating the foundation developed city At the same time, recognizing that, Mong Cai City will join the northern border city (Lao Cai, Cao Bang, Lang Son) quickly upgrade, rapid development to overcome the lag quickly, tend to become the difference in "class" than the city across the border, leading to many restrictions, loss of development cooperation, not only individually but also locally in the whole country According to the development trend, the pattern that Mong Cai should be pointed to is a modern international border, which is competitive in a position to partner with the city opposite side of China as well as many other cities in the region In the near future, it needs enough resources to invest in building a number of key infrastructure projects to create a breakthrough development in order to exploit the potential and advantages for socio-economic development of the city With the potential, advantages, opportunities, challenges and the development orientation of Mong Cai, I find that there are many different resources needed to build Mong Cai become a modern administrative economic unit Mobilizing financial resources plays a very important role for the implementation and concretization of the objectives set out Therefore, I decide to choose the thesis title "Mobilizing financial resources for investment in socioeconomic infrastructure in Mong Cai international border gate city" The purposes of the thesis - Study theoreotical and practical basis of mobilizing financial resource for socioeconomic infrastructure investment of local governments (provincial) - Analyze of the impact of specific factors that have an impact on financial resource mobilization of the border gate cities in general and Mong Cai international border gate city in particular Analyze and evaluate the current status of investment in socio-economic infrastructure and current status of mobilizing financial resource in Mong Cai city - Forecast demand for capital to invest in socio-economic infrastructure in Mong Cai from 2015 to 2020 - Recommend and propose effective measures to mobilize financial resources for socioeconomic infrastructure investment in Mong Cai city The research scope: - Content: The scope of the study is defined as the mobilizing financial resources for socio-economic infrastructureinvestment However, the main content of the thesis will focus on financial resource mobilization undertaken by local governments for investment in socioeconomic infrastructure projects associated with particularities border gate cities The necessity of the thesis Mong Cai is an important geopolitical and geoeconomic place with a strategic position in the development of economy, politics, national defense, security and foreign affairs With 72 kilometer long border and international border gates on land and sea, Mong Cai is a intersection converging two corridors one economic development belt Gulf coast - one of the economic exchange gate between Vietnam - ASEAN with China, which has the largest and the most dynamic economy in the world China also has a large market with rapid growth and pervasiveness power After more than 25 years of normalized relations with China, thanks to taking the absolute advantage of the geographical location and the particular concern of the Central Government and Quang Ninh province through the implementation of several pilot mechanisms and specific financial policy at gate areas to create investment resources for developing economic and social infrastructure, Mong Cai has achieved rapid development from an agricultural district to outdated marketing town and now a city borders, with the rapid pace of development in comparison with other towns and cities in Quang Ninh and Chinese localities which has the border with Mong Cai However, the specific mechanisms and financial policies of Mong Cai is only performed over a period of years (from 1995 to 2003) Investment resources for socio - economic infrastructure are not commensurate with the potential advantages and it is decreasing sharply due to changes in the border trade policy, immigration, exports and imports at the border area of Vietnam with China After China put down the drilling platform in the South China Sea in 2014, the activities of socio-economic development in Mong Cai are unstable and this reveals many difficulties and challenges, such as: weak competitiveness ,bad production capacity because of the lack of development conditions, small population size; transportation infrastructure, parking and gate, commercial centers, tourism, services, financial deficit, weak; high quality human resources have not met the requirements of development The policy mechanisms and institutions, the current management has not attracted the resources to make a breakthrough development, especially infrastructure and manpower Meanwhile, Dongxing, Guangxi Zhuang Autonomous Region of Guangxi Province in China, which have lower starting point than Mong Cai, are growing rapidly thank to the pilot implementation of key development Dongxing" done by the state of The people Republic of China It is the pedal and breakthrough for China's development, entering the ASEAN market; It also gives Dongxing mechanisms, special preferential policies, such as investment, tax incentives, priority investment resources from the central budget The development policy of China Dongxing has created opportunities for Mong Cai city to develope rapidly, especially in the field has many advantages such as trade services, transport, tourism; Mong Cai has put back into the world facing new challenges and the level of competition more fierce, demanding Mong Cai must quickly develop to become a city partner status on par with cities in China In the situation, recognizing that, in order to avoid left behind by cities in the coastal economic corridor Tonkin Gulf and the cities on the other side of the border, Mong Cai should - Space: The research is done in Mong Cai city - Time: The data and the status of mobilizing financial resources from 2000 to 2015 in Mong Cai city, Quang Ninh Province Using data from 1996 to analyze, compare and compare The research objects and methodology 4.1 The research objects The research obiects of the thesis are defined as financial resources and other forms of mobilizing financial resources for socio-economic infrastructure investmentin border cities under province 4.2 The research methodology Based on the theoretical basis of the history of economic theories and related theories such as theory of economic growth, public finance theory and based on the methodology of dialectics and historical materialism, this thesis is done by using following methods: - The combined analysis, combining the results of the analysis to the qualitative and quantitative interpretation and conclusions to research issues - Statistics descriptive and qualitative analysis: collecting and comparing time series data for the mobilization, trade, tourism, GRDP, to see the changes between the moment - Quantitative analysis: approach by VAR econometric model (Model vector autoregression) Quantitative models are made by the accreditation necessary to assess the impact, the ability of the factors affecting the characteristics of the city gate, the border to mobilize financial resources Secondly, this thesis analyses the impact of multiple factors affecting the specific characteristic of the border in general and, in particular, the city of Mong Cai international border gate The factors affecting financial resource mobilization are mainly trade activities with other world sea ports; export and tourism; cross-border payments; economic policy and external border-country relations 6.2 New practical contributions - The results of the research can be applied immediately on the mobilization of resources in the city of Mong Cai - The thesis proposes a number of measures to help local authorities and stakeholders to consider and make decisions on cooperation and implementation of methods to mobilize financial resources for investment in economic infrastructure socio city Mong Cai international border gate - Works will be useful reference for anyone interested in the mobilization of financial resources at the local particularities of the border, the border gates; and more research on border trade activities and payments between Vietnam dong and the yuan at the border Structure of the thesis Apart from the introduction, the conclusion, the list of references and 17 appendices, the thesis consists of chapters The research questions - How will specific factors affect mobilizing financial resources for socio-economic infrastructure investment of the border gate city? - What are the relationship between investing in socio-economic infrastructure and import and export, tourism, cross-border payment activities? - What are the limitations in mobilizing financial resources for socio- economic infrastructure investmentin Mong Cai city? - Which solutions and channel of financial resource mobilization will fit Mong Cai city which has specific characteristics and depend on the economic policies of China? New contributions of the thesis 6.1 New contributions on academics and theory Firstly, based on the findings of specific characteristics that are present at the border gate city, this thesis approaches the issue of mobilizing financial resources towards investment in social and economic infrastructures that are in favour of local particularities In addition to traditional public sector resources, this thesis argues and analyses in detail the mobilization of financial resources from the private sector and abroad The comments that are being raised regarding the duality of this resource mobilization is the basis for the thesis analysis, which is made explicit through the local case of Mong Cai international border gate city CHAPTER OVERVIEW OF THE RESEARCH SITUATION 1.1 Generalresearches on mobilizing financial resources Most researchers focused on mobilizing the State financial resources that can be used to raise funds for the economy, such as capital mobilization channels through the state budget, the issuance of bonds, ODA mobilization and rearrangement of state enterprises, attracting deposits through the banking system, much of this research study to mobilize financial resources from multiple channels in general, different sources The advantage of this approach allows us to have a general view of mobilizing investment capital for social development However, due to the general mentioned, it does not have the conditions going into the analysis of the problem, the different perspectives of each mobilization channel, each different financial resources 1.2 Reseaches on channelsof financial resources mobilization So far, there is plenty of researches on the mobilizing financial resources that focus on some channels to mobilize financial resources such as: channel to attract savings in the bank, through the stock market, bond issuance votes, mobilization of financial resources in the form of public-private partnership, The advantage of those researches is that they focused on a channel to mobilize financial resources so they can have a deep analysis some specific aspects of that channel Apart from the reseaches on mobilizing financial resources from the public sector, public-private partnership PPP, some researches focused on mobilizing financial resources from the private sector These studies have investigated overal different channels to raise funds, focusing on: (1) study on mobilizing private financial resources for a specific goal, such as the development of education, health, etc ; (2) study overall channels of mobilizing financial resources from the private financial sectors for the economic development goals of the society With local provincial and especially in specific areas anonymous pilot, there is not a plenty of researches on test solutions, mobilizing mechanisms 1.3 Experience of some countries and cities in Vietnam in the field of mobilizing financial resources for socio-economic infrastructure investment and the lessons drawn from it 1.3.1 The experience of some countries in mobilizing financial resources infrastructure investment development Japan: diversified investment resources, efficient exploitation of domestic financial resources; develop policies to encourage private sector participation in the project - Loans and financial investment through bond issues at all levels; Established corporations user charging, release the bonds that link; Establish separate accounts for projects invested by central revenues from users and through its own taxes Korea: identified the key role of government investment in infrastructure; developed mechanisms and policies to encourage all economic sectors to invest in social and economic infrastructure; bond market development Indonesia: improved policy, legal and institutional order to attract investment in infrastructure development Singapore: promoted privatization in building socio-economic infrastructure; enhanced the development plan zones economic export experience, knowledge, planning and building sustainable infrastructure to become a successful business areas and profitability Shanghai (in China): developed stock market and bond market, through the tool; borrowing from the international financial institutions; lease and land swap; Contract mining right transfer activities; development of capital markets; Cooperation between the public and private sector The experience of the city of Dongxing (China) applied a special mechanism on finance, tax and special support from the central budget and Guangxi; Priority attract private resources; established national company specializing in infrastructure investments in pilot areas United Arab Emirates, the difference in attracting resources through the successful application of these mechanisms, specific policies such as modern institutions, is a large decentralized; tax incentives, Imex, freely convertible foreign currency, assets, 1.3.2 The experience of some provinces and citiesin Vietnamin mobilizing financial resources for investing in socio-economic infrastructure Da Nang: exploit and efficient use of financial resources of land for economic development - society, including measures such as removing bottlenecks in compensation, clearance; planning the overall mobilization of resources for development investment; improve the efficiency of planning, urban management, administrative reform Ho Chi Minh City, succeeded in attracting FDI through measures such as innovation in the selection of investors; innovative ways of investment promotion; Create land bank is ready to attract investment; good management plans; Investment socialized public service sectors and economic infrastructure services 1.3.3 The lessons drawn from other countries and localities in Vietnamin mobilizing financial resources for socio-economic infrastructureinvestment - Formulation and planning management must take one step forward - Efficient use of land funds to create financial resources from the earth - Use good mobilization channel from private capital, promote market government bonds and corporate bonds - To carry out specific financial mechanism, focusing on a number of economic areas, a group of infrastructure projects to encourage motivation to invest in infrastructure projects - There are administrative institution - the modern economy with streamlined bureaucracy, effective; simple administrative procedures, fast and transparent 1.4 Research gap of the thesis Research on mobilizing financial resources for socio-economic infrastructure investment done by local government under province with the specific features on border, border trade and tourism of a city which has the border with China CHAPTER THEORETICAL BASIS OF MOBILIZING FINANCIAL RESOURCES FOR SOCIO-ECONOMIC INFRASTRUCTURE INVESTMENT 2.1 Financial resources for socio-economic infrastructure investmentin localities 2.1.1 An overview of the socio-economic infrastructure and socio-economic infrastructure investment in localities 2.1.1.1 The concept of socio-economic infrastructure Socio-economic infrastructure is understood as the whole material conditions, technique, operation mechanism, social institutions equipped with the physical elements and the environment to serve the production activity and human life 2.1.1.2 The concept of socio-economic infrastructure investment Investment in socio-economic infrastructure is a basic content ofdevelopmentinvestment It is the process of using the existing resources in order to carry out activities to maintain, upgrade, expansion or creation of infrastructure facilities to meet the social and economic objectives of growth and development social economy of each country or locality 2.1.1.3 Classification of socio-economic infrastructure Classification of infrastructure: based on specific characters; socio-economic sector and and economic sector The infrastructurehas many features such as high systematics, forwardness and modernity Amount of money invested in infrastructure projects is often very big and the time is long 2.1.1.4 The role of socio-economic infrastructure for the socio-economic development Socio-economic infrastructure plays an important role for the socio-economic development of a country, created the impetus for the development If the infrastructure develops in a synchronous and modern way, it will promote sustainable economic growth, improving the efficiency of the economy and make a contribution on solving social problems 7 2.1.2 Financial resources for socio-economic infrastructure investmentin localities 2.1.2.1 The concept and characteristics Financial resources for socio-economic development is understood as the source of currency (or assets can be quickly converted to cash) in the economy that can be mobilized to form the monetary funds for socio-economic development goals of the country Financial resources is the financial ability that one can exploit and use to fulfill certain purposes Characteristics of financial resources: always associated with ownership relations; diversity in terms of size, the form of existence; dispersive; sensitive to interest rates and return on investment 2.1.2.2 Classification of financial resources 2.1.2.2.1 Domestic financial resources Domestic financial resources consists of financial resources from the public sector and financial resources from the private sector 2.1.2.2.2 Oversea financial resources Official Development Assistance (ODA); Foreign Direct Investment (FDI); Funds from non-governmental organizations (NGOs); Personal funds from foreigners 2.1.2.3 The role of financial resources for investing in socio-economic infrastructure Formation of capital for investment, production capacity of enterprises and the economy, stimulate investment and promote the process of economic restructuring, improve the quality of growth; paving the capacity and level of science and technology 2.2 Mobilizing financial resources for socio-economic infrastructure investment in localities 2.2.1 The concept of financial resources mobilization Mobilization of financial resources is a process done through policies and measures and the form in which the state, socio-economic organizations and economic actors make and apply to transfer financial resources from potential form of monetary funds used for targeted socioeconomic development 2.2.2 Forms of mobilization 2.2.2.1 State financial resources mobilization The state uses its power to focus a part of the total national income on cash funds of state focus Also, as the demand of the state capital increase, the budget revenues can not meet the demand, the state also uses the tools of investment capital mobilization such as: issuance of government bonds, local government bonds, construction bonds the country, state treasury bonds, Official Development Assistance(ODA) 2.2.2.2 Mobilizing financial resources from a combination of resources from the public sector and resources from the private sector (public-private partnership - PPP) 2.2.2.3 Mobilizing financial resources from the private sector 2.3 Factors that affect financial resources mobilization for investing in socio-economic infrastructure in locality Economic factors; resources; social and economic infrastructure; Political factors, guidelines, policies and laws Institutional, policy Economy MOBILIZATION OF FINANCIAL RESOURCES Natural resources Infrastructure Diagram 2.1: Factors affecting mobilization of financial resources 2.4 Quantitative analysis using econometric model to forecast the factors affecting financial resources mobilization Time series analysis was conducted to see whether past observation value (delay variation) affect the present value of the variable or not? And which variable is influenced by that variable, an analysis of two-way relation VAR model (Vector autoregressive model) is applied to the string statistics over time to find out the relationship between these factors interact economy's macro economy fact, the influence spread between these elements together Var model is general for Xt and Yt with the following format: ௣ ௣ ଵ ௣ ଵ ௣ ଵ ଵ ܺ௧ =∝ + ෍ ߚ௜ ܺ௧ି௜ + ෍ ߛ௜ ܻ௧ି௜ + ‫ݑ‬ଵ௧ ܻ௧ = ߲ + ෍ ߜ௜ ܻ௧ି௜ + ෍ ߠ௜ ܺ௧ି௜ + ‫ݑ‬ଶ௧ p is the latency of each variable Xt and Yt, u1tand u2t is interference vector which means zero in average and variance σ ^ unchanged (white noise) 9 10 CHAPTER THE REALITY OF MOBILIZING FINANCIAL RESOURCES FOR SOCIO-ECONOMIC INFRASTRUCTURE INVESTMENT IN MONG CAI CITY Investment in the infrastructure of commune, ward boundaries and islands and other agricultural communes was unconcerned due to the lack of resources for investment, the majority of which were inter-village roads and local villages Investment funds for socio-economic infrastructure has been still limited 3.3 The reality of mobilizing financial resources for the investment in socio-economic infrastructure in Mong Cai City from 1996 to 2014 3.3.1 Mobilization of resources from the State budget for infrastructure investment a Mobilizing financial resources from the budget through taxes, fees and charges Being able to balance its local budgets, besides the collection of land use fees, Mong Cai City also seeks for other sources of increasing budget revenues and revenues from the closing balance of the domestic budget for infrastructure investment However, revenues from real estate in Mong Cai City is a negligible number which is unsustainable due to its dependence on the borders, not to mention that the specific characteristics not exist any longer; therefore these revenues meet only a small part of the needs of developing the socioeconomic infrastructure in Mong Cai City b Mobilizing financial resources from real estate and contributed revenues c Mobilizing financial resources from the State budget (budget from the central, provinces and cities) to invest in infrastructure construction: additional financial resources available from the central and provincial budget for the infrastructure works are calculated according to the grading criteria whose additional levels are merely low and not commensurate with the potential and advantages of the city Therefore, none of motivation to attract other resources is created d Credit mobilization of Mong Cai City’s authorities Loans through the issuance of local authority’s bonds Loans from the existing budget of the State Treasury and from the commercial bank Mobilization and use of Official Development Assistance loans (ODA) in Mong Cai.3.3.2 Mobilization of financial resources through the Public Private Partnership model (PPP) A number of pilot projects, successfully implemented in the area, opened up new channels for raising capital for the investment in the city’s socio-economic infrastructure projects It is necessary that Mong Cai City should continue to apply the PPP model in several fields and projects that might be carried out by private investors such as commercial infrastructure, tourism and education 3.3.3 Mobilization of financial resources from the private sector 3.3.3.1 Mobilization of financial resources through the system of credit institutions Financial resources from the local people in fact prove itself to be a comparatively good source; a large amount of capital resources (residential savings and deposits of enterprises) has not been used efficiently, causing surplus capital Due to the poor and inefficient management of the State on business households who exchange money and cross border payment, loss of revenues to the budget happened consequently 3.1 Socio-economic characteristics and some specific policies and mechanisms facilitating the development of Mong Cai City 3.1.1 Some basic information about the socio-economic characteristics of Mong Cai City Geographic condition: Mong Cai - an international border gate city which is located in northeastern of Quang Ninh province, on the border with Dongxing City of China, sharing both land borders and maritime boundaries with China It has a population of about 105,000 people Economic condition: (1) the average growth rate of Gross Regional Domestic Product (GRDP) from 2000 to 2014 was over 17.5%; (2) the continuous growth of budget income has increased by an average of 15% per year; (3) the value of imported and exported goods at the Mong Cai border gates during the period from 2010 to 2014 reached $4 billion/year in average; GRDP Per capital income in 2014 reached $3,051 3.1.2 Some specific Vietnam’s policies and mechanisms facilitating the development of Mong Cai City From 1996 to 2001, Mong Cai piloted a special mechanism under decision No 666/TTg dated 14/9/1996 of the Government (the central budget invested in Mong Cai border gate every year is not below 50% of the yearly total budget revenues spent in infrastructure) From 2001 to 2008, Mong Cai piloted some specific policies under decision No 53/2001/QD-TTg dated 19/4/2001 and received Government's investment in the infrastructure, preferential loans, incentives on trade, tourism, real estate, and tax From 2008 to date, investment resources are applied according to the Budget Law enacted in 2003 3.1.3 Some impacts of the change on the border and tourism trade policies of Dongxing City (China) 3.2 The reality of the socio-economic investment in infrastructure in Mong Cai City 3.2.1 Current infrastructure situation of some major sectors Infrastructure at the border gate area; Transportation infrastructure, road and inland waterway; Post and telecommunication infrastructure, and communications, etc 3.2.2 Limitations of socio-economic infrastructure in Mong Cai City The quality of construction planning in general and of urban development planning is not good enough, resulting to poor forecasting, and unsynchronized planning coordination Investment in the development of transport infrastructure does not keep up with the pace of urbanization Urban infrastructure and infrastructure at the border gate investment gate have not been synchronized, but regularly overloaded and not yet met the requirements of development Investment in the social infrastructure is not integrated, its efficiency is not high and still does not meet the requirements of attracting quality human resources from other localities 11 12 3.3.3.2 Mobilization of financial resources from the sectors which get funds from ForeignDirect Investment (FDI) to invest in the socio-economic infrastructure There are 23 active FDI projects with the amount of invested FDI capital reached almost 500 million USD, one of which invested in infrastructure sector The number of successfully implemented FDI projects at Mong Cai City was scattered, showing the need to study more feasible mechanisms to attract more financial resources of FDI into Mong Cai City 3.3.4 Analysis of the relationship between financial resource mobilization and some specific factors (geography, export-import, and tourism, etc.) a The contribution of Total Factor Productivity (TFP) to the socio-economic infrastructure investment According to the results of regression analysis by SPSS software using Ordinary least square (OLS), the relationship between GRDP with capital (V) and labor (L) of the city of Mong Cai is shown as follows: Gj = 0,268*Vj + 0,016*Lj + uj (*) From 2000 to 2015, GRDP rises in Mong Cai City is mainly due to the increase in capital (89.53%), increase in labour contributed to 5.78%; Total Factor Productivity (TFP) contributing to the economic growth constituted 4.69% In another way, Mong Cai City has not yet exploited its good comparative advantage in terms of geographical position so as to mobilize financial resources for investment in development of Mong Cai in general and for its socio-economic infrastructure investment in particular, especially in the areas of prioritized infrastructure which are considered the driving forces of the infrastructure development such as trade, import and export, and tourism infrastructure b Analysis of the relationship between import and export, tourism, cross border payments and investment According to the author, strengthening the investment activities could benefit enormously the tourism, trade and cross border payment and import and export of Mong Cai City In order to test the above hypotheses, the author used VAR model for the time series from 2000 to 2014 in a bid to analyze the relationship between the mobilization of resources for socio-economic infrastructure investment and activities in trade, import and export of local tourism of Mong Cai City The results showed that the import and export, cross border payment and tourism activities increased 1.049% 1.76% and% 0.7016 respectively, whereas the total capital investment in the whole society of the previous year increased 1% Hence, it can be affirmed that the relationship between the socio-economic infrastructure investment and activities of import-export, cross border payment and tourism at Mong Cai City is comparatively close The development in import-export activities and tourism attracts private capital in infrastructure This is the primary basis for the motivation and goal of mobilizing private capital for socio-economic infrastructure to support the economic growth of Mong Cai City in the coming time c Analysis of mobilizing social resources for the development of Mong Cai City The structure and tendency to attract financial resources at Mong Cai City have been witnessing a big change in recent years Financial resources from the public sector tends to decrease, whereas the financial resources from the private sector and FDI tends to increase in the total investment of the whole Wsociety Stepping into the shoes of the State regulators, it is necessary for Mong Cai City to implement specific policies, mechanism and appropriate solutions solutions to widen the external investment capital for investment and development 3.4 General evaluation on the mobilization of financial resources to investment in socioeconomic infrastructure in Mong Cai City 3.4.1 Achievements Financial resources mobilized have been growing continuously, the next year’s is higher than the previous year’s; the proportion of financial resources investment from the public sector tends to decline Mong Cai City authority mobilized financial resources from different sources A source of experienced officers is formed and trained to approach the new mobilization channels Initial success in mobilizing financial resources for private investment in infrastructure Socialized education, health and other public services initially obtained good results, helping to alleviate the burden of budget and to meet the diverse needs of society 3.4.2 Limitations The state budget resources still occupy the dominant role in infrastructure investment, meanwhile the financial resources from the private sector have not been effectively deployed; an imbalance still exists between the mobilized financial resource and the mediumterm investment plan; the growth rate of investment resources is still low, the mobilized resources have not yet met the needs of investing and developing the socioeconomic infrastructure Financial resources from real estate has not yet been mobilized and completely used for infrastructure investment The attraction of financial resources from the private sector to invest in socioeconomic infrastructure has been still limited, good resources in the society has not yet been exploited Methods of financial resources mobilization have not really been varied; tools to mobilize financial resources have not been used and promoted effectively The effectiveness of investor selection, appraisal, and attraction has not yet been practical, and investment environment is still unfavorable 3.4.3 The causes of those limitations Subjective causes The work of establishment, management and implementation of the master plan for socio-economic development, construction planning, and urban development planning is unsteady Mong Cai City authority has not yet built up its budget plan, mobilization plan and medium-term resource utilization plan 13 14 There is no leading agency responsible for attracting financial resources for investment and investment promotion therefore both internal and external investment projects are unprofitable Objective causes Lack of specific incentives to motivate the development, particularly incentives of finance, immovables and human resources The system of local credit institutions has not varied; financial markets have not developed Mong Cai City’s development remained dependent on its economy due to China’s frequent changes at policies on cross-border management, trade and immigration That is why Mong Cai City still has not gained the confidence and trust from investors Synchronizing the investment in urban infrastructure system: Transportation infrastructure; Electricity and Water supply infrastructure; Trade infrastructure; Information infrastructure; Education and training infrastructure; Health and Medical infrastructure; Culture, sport and tourism development infrastructure 4.2.4 Mong Cai City’s SWOT analysis on the financial resources mobilization to invest in the socio-economic infrastructure Strengths (S) Strengths of geographical location: Mong Cai City enjoys a strategic location for the development of commercial activities, near Guangxi City with the potential market with over 75 million inhabitants and the GDP reaches nearly 470 billion US dollars Mong Cai City is a favoured area where natural, tourism and human factors combine Mong Cai city is also getting a special attention from the Politburo and the Government as it is becoming a piloted economic and administrative unit with special preferential policies for creating favourable conditions to attract more investors Weaknesses (W) Mong Cai City’s growth is quite slower comparing to other economic areas; The transportation infrastructure is still limited; Lack of human resources in terms of both quantity and quality Mong Cai City is affected and dependent on China The administrative procedures reform still slow; its mechanism and policies of preferential investment have not really attractive; the competitiveness is still limited Opportunities (O) To exploit the Chinese potential market Important plans need to be approved by the Government to attract investors, especially FDI investors and private investors in infrastructure projects Joining TPP, AEC and RCEP helps to create markets for production, distribution, consumption; and the opportunity to raise capital from other countries in the group Has opportunities to attract resources for investment outside the budget for projects of socio-economic infrastructure Threats (T) The instability on the border trade policy of China and the pressure from them on the internationalization of Chinese yuan renminbi (CNY) in payments between Vietnam and China will impact the border trade activities, banking and service investment in Mong Cai City, causing difficulties in controlling the flow of capital investment and the cash flow denominated in CNY Policies and mechanisms are inconsistent and not strong enough Difficulties in attracting FDI (apart from Chinese enterprises); The underdevelopment and lack of ability to compete with the city of Dongxing (China) Staffs and employees are not qualified enough to keep up with the development 4.2.5 The need for investment capital of Mong Cai City by 2020 CHAPTER SOLUTIONS FOR MOBILIZING FINANCIAL RESOURCES TO INVEST IN SOCIO-ECONOMIC INFRASTRUCTURE IN MONG CAI INTERNATIONAL BORDER GATE 4.1 Forecasts about the global, regional and local economic context 4.1.1 Global context - The Chinese economy's rapid and continuous growth may affect the economy of Vietnam in general and of Mong Cai City in particular - Vietnam joined the free trade agreement (RCEP, TPP, AEC) - Sustainable development and clean energy are receiving a lot of critical attention from many countries - The need for public-private partnership (PPP) cooperation is becoming overwhelming - The political relationship between Vietnam and China 4.1.2 Local context Vietnam’s macro-economic outlook: Vietnam is one of the fastest growing economies in Asia Red River Delta and Northern economic focal region outlook: these areas are enjoying a potential growth with synchronous infrastructure system, creating favorable conditions for investment attraction 4.2 The orientation of socio-economic development of Mong Cai City 4.2.1 Perspectives and objectives development of Mong Cai City The 2020 targets: The GRDP growth rate from 2015 to 2020 will be about 17.7 to 20% per year on average; GRDP per Capital income by 2020 will be about 10,000 USD per person 4.2.2 Orientation of the functional area development Attracting investment resources for development of Tariff-free zone, Tariff zone, Mong Cai border economic cooperation zone, and Industrial Center 4.2.3 The development of socio-economic infrastructure by 2030 15 16 The author has made predictions and estimates of capital investment need for the city of Mong Cai from 2016 to 2020 Based on the prediction model: G * b * J = VJ + c * LJ + uj - The base platforms In order to create forecasts results with high reliability, the author gave out some scenarios to illustrate the situation of Mong Cai City’s as follows: Scenario 1: The forecast based on the (past) growth model over the years Scenario 2: The forecast based on the model of target growth Scenario 3: The forecast based on the model of expected growth Scenario 4: The forecast based on the economic depression scenario (2013) Scenario 5: Forecast based on the economic depression scenario (revised in 2014) - Forecast results based on each scenario Table 4.3 Summary of the need for capital investment from 2015 to 2020 according to mentioned scenarios 4.2.6 Different points of view on mobilizing financial resources for investment in the socioeconomic infrastructure in Mong Cai City - Diversify channels of financial resource mobilization to attract all domestic and overseas economic sectors to invest in the socio-economic infrastructure development - Mobilizing financial resources from the private sector is the top priority in comparison with other economic sectors; the private investment will be prioritized through public-private partnership model (PPP) - Make a good use of Mong Cai City’s advantages from commercial activities, export, tourism, cross-border trade, etc to mobilize financial resources - Do research and propose special mechanisms for a number of areas related to taxation, trade, import and export, etc and mechanisms for some fundamental infrastructure projects - Improve the efficiency of financial resource mobilization which is associated with to improve the efficiency of using these resources, at the same time to minimize losses and waste of resources - Strengthen activities to support the development of local tourism, trade, export and import in order to attract private investment resources for socio-economic infrastructure 4.3 SolutionS formobilization offinancial resources for investment in socio-economic infrastructure in Mong Cai City, Quang Ninh Province 4.3.1 Solutions for plan management and implementation - Develop implementation plans to administer the plans approved by the Prime Minister which are associated with the medium-term socio-economic development project and the medium-term public investment project within years - Present detailed plans, dividing functional areas and resettlement areas for land clearance - Check and adjust the planning sectors, industries and main products; and resettlement areas for land clearance - Develop investment programs and prioritized projects in accordance with each kind of fund - Develop plans and mechanisms to mobilize medium-term investment 4.3.2 Solutions for financial resources mobilization from the public sector to invest in the social economy 4.3.2.1 Mobilization of financial resources from the state budget which focuses on allocating capital investment in socio-economic infrastructure projects Solution 1: Improving mechanisms of budget allocation towards decentralization and expansion of autonomy for budget levels - To adjust the decentralized local budgets to increase the autonomy and creativity in exploiting revenues and operating expenditures at the city level - It is suggested by Quang Ninh Province that Mong Cai should apply a special mechanism towards the direction of decentralization, and to adjust the ratio of revenues to regulate 100% of which for local budgets or for targeted investment in Mong Cai City Total actual investment (billion) No Year Minimum (of Scenario 5) Average (of Scenario 1) Maximum (of Scenario 1) 2015 2016 2017 2018 2019 2020 19.841,8 22.166,0 22.999,7 23.959,9 25.053,6 26.289,4 21.027,4 23.697,5 26.722,7 30.154,3 32.889,5 36.044,4 23.834,0 30.091,6 37.672,9 46.859,6 57.994,0 71.491,4 This poses the task for managers with the goal of mobilizing financial resources to ensure the socio-economic objectives which are: (1) To limit the pressure on resources from the State budget, keeping it below 10% of the total annual investment capital (2) To create favorable conditions for credit policies to boost the investment in the nonstate sector (keeping it at about 40% of the total capital) (3) To continue expanding policies to attract FDI in an effort to ensure the majority of demand for capital from 2015 to 2020 (approaching over 50% of the total capital) With an ideal capital structure for the period from 2015 to 2020 is 10%; 40% and 50% (respectively of the State budget, non-state budget and FDI), administrators can completely accurately identify each specific fund in each stage and each economic context according to above scenarios Expectations of the city is to mobilize sufficient resources for the investment development, focusing on resource investments in the field of socio-economic infrastructure In order to achieve that, the city must determine the views, goals and measures to mobilize financial resources, especially the extra-budgetary resources and FDI, in a practical and efficient way 17 18 (including domestic revenues and import-export revenues) during 10 years so that the city’s financial resources can invested in key infrastructure of the border gate areas Solution 2: Implementing solutions to increase the timely correct type of revenue, grow revenue and avoid revenue loss - To control tightly the budget revenues - To strengthen the inspection and supervision of tax declaration and payment - To fight against smuggling, commercial fraud and transfer pricing; to enhance debt treatment and recovery of outstanding loans - To eliminate the way of thinking which is to save the revenue budget for the following year - To arrange the business units; to sell state-owned assets which are for leased to focus financial resources on the State budget Solution 3: Exploiting effectively the value real estate bank to focus the financial resources from the immovables to the local budget - To control the land prices better; to promote planned land acquisition, create a land bank for auction; to encourage investors to apply the form of paying once for all - To organize the bidding of mining rights of land use projects - To suggest mechanisms to encourage the accumulation and concentration of land in some areas suitable for large production to set the stage for large production, commodity production and the formation of concentrated production areas - To narrow down the number of people allocated who not collect land fees, to gradually shift the public service units with financial autonomy into leasing land - To exploit financial resources from state-owned land; creating conditions to attract projects according to PPP model - To exploit financial resources from transportation infrastructure and customs clearance points at the border gates Solution 4: Promoting the work of planning to utilize the advantages of geographical location from which to attract projects investing in socio-economic development so as to increase revenues for local budgets Solution 5: Equitizing and divesting the state budget in state-owned enterprises managed by the City; to establish the State-owned financial investment company at Mong Cai economic border gate zone; to hold auction for mining rights 4.3.2.2 Creating investment resources through developing projects of issuing local authority’s bonds and loans from the existing budget of the State Treasury To build up the project of issuing local authority’s bonds for the period from 2016 to 2020 which is associated with the Public investment plan of Mong Cai City Proposals are sent to the Government and the Ministry of Finance to allow Quang Ninh Provincial People's Committee to freely issue its to local bonds with the duration from to years with certain credit limit, including the debt limit of Mong Cai City 4.3.2.3 ODA mobilization on effective saving perspectives To develop and propose realistic and sound plans to potential ODA funding organizations To develop projects asking for investment for each project plan which is associated with the medium-term public investment, including the size of the projects which need support, project objectives, outcomes and socio-economic benefits of the projects To request the support from Quang Ninh province in order to get access to national and international ODA funding organizations in the order of priority 4.3.2.4 Enhancing the efficiency of State management of infrastructure investment It is necessary to well manage the preparation, adjustment and implementation of the plans It is necessary to improve the mechanism of investment decentralization It is necessary to well implement the advocacy, building consensus in today’s interconnected society 4.3.2.5 Solutions to improve the management and efficiency of use of financial resources To streamline the staffing resource of the local units; to restructure the business units with appropriate autonomy, to enhance their capacity management and operational efficiency To save regularly the expenditure and to spare financial resources for investment: to predict accurately the impacts on budget revenues; to develop the budget estimation in accordance with the priorities which links to the outputs; to be flexible in the budget management; to ensure the financial security and the balance of revenues and expenditures; to reduce the number of public assets sellers and buyers Investment should focus on its main purposes 4.3.3 Solutions for financial resources mobilization from the private sector, focusing on resource mobilization in the model of public private partnership (PPP) 4.3.3.1 Improving the investment and business environment To improve the quality of public services To reform administrative procedures, making them more transparent and simpler to reduce the cost and time of business; to boost up the convenience at the border gate; to use "once stopped, once checked” method at Mong Cai international border gate To publicize the business processes and the work processing time in each department; to shorten the evaluation and licensing time in each unit; handle all of the administrative procedures at the Public Administrative Center To review the taxes, fees and other unofficial expenses, the cost of joining the market to create the confidence for investors To enhance public service discipline among civil servants and public employees To renovate communication at work and dialogues to support the business 4.3.3.2 Raising capital from credit institutions; maximizing the role of commercial banks in addressing difficulties with business enterprises To implement quarterly programs between banks and business associations to help enterprises get access to the capital 19 20 To ask the State Bank of Vietnam to invite the foreign commercial banks to open branches at Mong Cai City To promote the propaganda and information programs about investment projects of highly effective which strategic investors have invested in Quang Ninh province, Mong Cai City to attract investors To work out with the real estate bank and or financial streets to invite domestic and foreign banks to open branches or offices To work with leaders of some prestigious commercial banks which are of a large scale to support the implementation of the development policy of Mong Cai and to attract investment To request the State Bank of Vietnam to increase the quota of annual credit growth of the commercial banks and the Vietnam Development Bank across the area of Quang Ninh province to overcome the problem of local capital surplus To request Vietnam Social Policy Bank and the Vietnam Development Bank to increase the sources of capital and total loan limit for households in the areas of agriculture, forestry, and fishery To effectively manage the cross-border trade payment operation in Mong Cai City: Strongly recommend that the State Bank of Vietnam should improve the crossborder payment regulations, and the payment of trade between the Vietnam-China border 4.3.3.3 Attracting resources from overseas Vietnamese community To issue incentives mechanism, creating ideal conditions to ttract investment and source of remittances from overseas Vietnamese To broadcast propaganda on the means of mass media about raising awareness of the role overseas Vietnamese; leading focal agencies will be in charge of the propaganda; to combine plans among sectors to propagandize on the preferential policy and guidelines of attracting investment in Mong Cai City To build up plans: to mobilize sources of remittances; to mobilize investment capital; to act as brokers, introducing about projects To develop formal remittance channels through the financial and banking systems to replace the illegal remittance transferring channels and informal cross-border channels 4.3.3.4 Wide spreading the private-public partnership model (PPP); socializing the investment in social, health, education infrastructure - To review, categorize and evaluate project portfolios, the approved works among plans and projects invested and managed by the State to transfer them to the involved private enterprises - To complete legal procedures: the leading focal agency will take care of implementing the PPP projects in Mong Cai City; to decentralize authority to give decision on the implementation of PPP projects between industries and local departments - To build up information and propaganda programs about investing in PPP to give explanation on the selection process for investors, the effects of the projects, the interests of the parties involved in PPP projects, such as: (i) the interests of the State, (ii) employees, (iii) people who use the service, (iv) the investors (v) the affected person from the project - To equitize a number of business units; a number of the State’s properties are for rent to supply the services business and to serve the implementation mechanism of the business units operating as public enterprises A number of areas and prioritized projects are in need of private investors: healthcare, education, consulting, design, Logistics, environmental services, in particular: The infrastructure: PPP projects need to invest in roads, ports, warehouses, border gate, commodities exporting point, etc To encourage the private-public cooperation projects, to modernize the traffic management systems and network traffic Healthcare: To equitize some hospitals or to apply the model of PPP in the management and exploitation of the Medical Center, General Hospital; to attract private investors to build the International Hospital of Mong Cai City Education: To change the method of business units management which are schools, centers of cultures and information for the private sector Environment: the public utility services such as waste collection, transportation and disposal Water supply: To attract private investors to upgrade, expand domestic water supply plants and waste water treatment systems Social housing: To construct and develop housing, especially social houses, relocated houses, houses for workers in industrial zones and staff dorms Urban lighting: it is private investors who are in charge of the management, operation and maintenance of the public lighting systems 4.3.3.5 Promoting the socialized resources from organizations and residents joining the program of new rural and urban embellishment To use the mass media to publicly advocate on supporting policies and mechanisms on the new rural development To promote the role of the people involved in the new rural embellishment To issue supporting mechanisms to mobilize sources of socialization from the people involved in the new rural embellishment To organize training programs and courses for civil officials to improve their expertise on managing infrastructure investment projects, and production development projects To publicize the process of using contributed capital and the supported resources from the State; to publicize the list investment projects To classify areas potential for economic development to build various social contributions rate accordingly 4.3.4 Renovation of investment promotion activities; attraction of foreign investments FDI to build socio-economic infrastructure To create an overall industry system which is ready to go into action as: infrastructure systems to serve potential investors; information and communication capacity; to ensure adequate and stable water and electricity supplies 21 22 To establish some focal agencies to attract investment and development to ensure that the quality of the investments will be in accordance with what is committed and deployed To select foreign investors on the basis of effective implementation of a number of solutions as follows: creating a friendly environment for business and a civilized and modern society; adjusting the selection criteria for FDI investors in the infrastructure sectors; innovating the investment promotion; creating a clean land fund; closely combining the planning of socioeconomic development with urban development 4.3.5 Solutions to the institutional reform and administration To recommend the Government should allow Mong Cai City to implement a pilot new management model with the economic administrative institution applied for a specific special administration level such as the free economic border gate zone and a number of specific pilot policies and mechanisms which are capable of competing in the field of investment, currency, banking, tax, customs, immigration, and commerce, etc Commercial investment areas have some of the following principles: • The opening level is higher than other provinces’ and inland cities’ • The economic institutions are closer to the economic institutions of the international urban and special economic zones • The economic management is simpler and has less interference on running the business • Being able to enjoy a certain incentives comparing to some inlands • Being given the greater rights in deciding a number of tasks on management 4.3.6 Solutions for limiting the risks in mobilizing financial resources whenever there is any change in policy from China To strengthen the diplomacy relationship with Dongxin City To build up plans to diversify trading portfolios To build up image and pledge to ensure the trust and confidence from investors To speed up the construction of infrastructure projects whose vital connections 4.4 Recommendations To the National Assembly: to allow Mong Cai city to become a pilot economic administrative units especially in the direction of becoming a free economic border gate zone and at the same time apply some specific policy mechanisms in the field of investment, monetary, tax, customs, import-export, and trade To the Government: to supplement an additional capital from the central budget to the city budget at the rate equivalent to 100% of revenues from annual immigration fees and export taxes at Mong Cai City to invest in fundamental infrastructure projects; this mechanism will be taking into effect in 10-year period (from 2016 to 2025) Recommendations which the Government submits to the National Assembly: supplement additional content on the budget revenues and expenditures for the special economic administrative unit; Mong Cai City are empowered to apply some pilot mechanisms of tax incentives, budget revenues and expenditures, finance, investment (authority equivalent to the authority of the President of the People’s Committee of Quang Ninh province) To Quang Ninh province: to consider and submit to the Government the plan of establishing the financial investment State company of Mong Cai Economic Zone – so as to raise funds for building significant socio-economic infrastructure of the city To Quang Ninh province and the Ministry of Finance: to allow Mong Cai local authority to issue bonds for the period from 2016 to 2020 in association with its investment plans of Mong Cai City and Quang Ninh province To Quang Ninh province and the Government: to consider and allow Mong Cai City to give foreign investors the right to transfer and lease real estate and receive capital contributions directly from households and individuals as domestic investors as well as to ensure the use of land for the right purpose, the right planning and investment projects must be approved CONCLUSION Mobilization of financial resources and investment in infrastructure are vast areas which has particularly important implications to the socio-economic development of each country and of each locality Investment in socio-economic development is the basis for ensuring the social and economic development, as they are fundamental elements of any production and business processes, apart from workers However, in most countries, financial resources for investment and development are always scarce and hardly to fully meet the demand for investment In particular, if based solely on the limited State budget sources, it is hard to ensure the financial resources for investment and development Vietnam is implementing the economic restructuring, including the restructuring of public investment, the public debt accounts for a large proportion of GDP Funds from the central budget are allocated to localities for investment in socio-economic infrastructure projects under the target program and according to the descending order of priorities Financial resources from the budget is a priority for key infrastructure projects and the areas of special difficulties Therefore, the remaining localities including Mong Cai city had better actively seek and mobilize resources to accomplish the goals and tasks of socio-economic development Financial resources from the public sector as well as financial resources outside the budget need to be mobilized, managed and used effectively In the context of limited State financial resources, financial resources from outside have many limitations and consequences, the mobilization of financial resources from the private sector is the best solution to all countries pursuing the multi-sector economy This is an important and relatively abundant financial resources which needs to be exploited in the future for additional resources for the public sector For the analysis and interpretation of the content related to the mobilization of financial resources; thereby setting out some solutions to improve the financial resource mobilization, the thesis has used a combination of qualitative and quantitative analysis with the content of four chapters In Chapter 1, the thesis has focused on researching and reviewing the situation related to the subject of the thesis, drawing lessons from what had been mentioned thoroughly in previous studies, both the advantages and disadvantages and at the same time, addressing constraints which those studies had encountered Chapter refers to the theoretical issues of 23 24 financial resources and investment in socio-economic infrastructure In Chapter 3, the thesis focuses on analyzing the current situation of financial resource mobilization for investment in socio-economic infrastructure in Mong Cai City relying on mobilization channels Based on the analysis of the achievements, problems and its cause, in Chapter 4, the thesis propose several viewpoints, orientations and measures to mobilize financial resources from investment socioeconomic infrastructure in Mong Cai city, a province sensitive to fluctuations related to the economic and political mechanisms and policies between Vietnam and China (the change in the trade policy in 2012 and the South China Sea 2014 event are outstanding examples) Several solutions have been launched on the viewpoints of state management agencies, including: (1) Group of solutions for planning and institutional reform; (2) Group of measures to mobilize financial resources from the public sector; mobilize financial resources from the private sector and the mobilization solutions from FDI to invest in social and economic infrastructure The solutions involve setting up and managing the implementation of the planned group of solutions to mobilize resources from the public sector (real estate, taxes, etc.), the private sector, and FDI Reasons for these solutions are: good planning makes a good project, then attract potential and better investors Solutions on institutional reform towards enforcing Mong Cai City to become an economic administrative unit in particular, whose streamlined and decentralized management system with greater competence; thereby enhancing its competitiveness in attracting resources For solutions to mobilize financial resources from the state sector, the author suggested that Mong Cai City shall retain all revenues from import and export activities in the locality during 10 years (or the revenue invested by the Government in the period of 10 years is not less than the revenue from import and export operations in the province) to generate resources for investment in socio-economic infrastructure; this is not new, however, some solutions had been piloted and successfully applied in Mong Cai from 1996 to 2002 The 2003 budget law was enacted, these mechanisms are no longer effective; solution to the issuance of local government bonds and the establishment of the State financial economic border gate zone at Mong Cai For solutions to mobilize resources from the private sector and FDI including solutions to improve the investment environment to promote the private sector development, macroeconomic stability, finance and banking system development, creating equality between the public sector and the non-state sector to attract the participation of private investment in infrastructure projects such as socioeconomic transportation sector, water supply, education, and health care, etc Ensuring abundant resources for investment is a prerequisite for success in the socioeconomic and development The sufficient condition would be to use these funds effectively Improving the efficiency of financial resource mobilization will contribute to ensure the capital for growth and development, contributing to improve people's living standards, jobs and social security Besides the mentioned issues related to the mobilization of financial resources, the thesis has not analyzed the issues which are related to the financial resource mobilization channel through cross-border payments operations of commercial banks, households business between Vietnam dong exchange and Chinese yuan renminbi (CNY), as well as the impact of the exchange rate between CNY and VND for attracting investment resources in the Mong Cai City and other provinces bordering China (a particular financial product born in Mong Cai province, has now been replicated in other areas in the country) This issue is beyond the scope of the thesis, but also a very important role in the mobilization and management of resources Due to the limited scope, the thesis has not focused on analyzing this matter The thesis can also be improved if more data and more quantitative surveys are implement Due to the limited research condition, the author has not reached these objectives which are expected to be implemented in the future studies LIST OF PHD CANDIDATE’S PAPERS Nguyen Viet Dung (2014),Financial solutions for building infrastructure in Mong Cai City, Economy and Forecast Review, No21,Nov 2014 ISBN 08667120 Nguyen Viet Dung (2014),Public Private Partnership - Financial solution for the of infrastructure construction in Mongcai economic zone, The summary record of National Scientific Conference "Providing capital for economic development in Vietnam in the current period", KX01/11-15, ISBN: 978-604-927876-1, Dec 2014 Nguyen Viet Dung (2015), Exploitation financial resources for frastructure development, Research on Finance and Accounting, No 11 (148)/2015, Dec 2015 [...]... mobilization for investment in socio- economic infrastructure in Mong Cai City relying on mobilization channels Based on the analysis of the achievements, problems and its cause, in Chapter 4, the thesis propose several viewpoints, orientations and measures to mobilize financial resources from investment socioeconomic infrastructure in Mong Cai city, a province sensitive to fluctuations related to the economic. .. investment In particular, if based solely on the limited State budget sources, it is hard to ensure the financial resources for investment and development Vietnam is implementing the economic restructuring, including the restructuring of public investment, the public debt accounts for a large proportion of GDP Funds from the central budget are allocated to localities for investment in socio- economic infrastructure. .. interference on running the business • Being able to enjoy a certain incentives comparing to some inlands • Being given the greater rights in deciding a number of tasks on management 4.3.6 Solutions for limiting the risks in mobilizing financial resources whenever there is any change in policy from China To strengthen the diplomacy relationship with Dongxin City To build up plans to diversify trading... according to the descending order of priorities Financial resources from the budget is a priority for key infrastructure projects and the areas of special difficulties Therefore, the remaining localities including Mong Cai city had better actively seek and mobilize resources to accomplish the goals and tasks of socio- economic development Financial resources from the public sector as well as financial resources. .. Cai Economic Zone – so as to raise funds for building significant socio- economic infrastructure of the city To Quang Ninh province and the Ministry of Finance: to allow Mong Cai local authority to issue bonds for the period from 2016 to 2020 in association with its investment plans of Mong Cai City and Quang Ninh province To Quang Ninh province and the Government: to consider and allow Mong Cai City. .. the socio- economic development of each country and of each locality Investment in socio- economic development is the basis for ensuring the social and economic development, as they are fundamental elements of any production and business processes, apart from workers However, in most countries, financial resources for investment and development are always scarce and hardly to fully meet the demand for investment. .. Renovation of investment promotion activities; attraction of foreign investments FDI to build socio- economic infrastructure To create an overall industry system which is ready to go into action as: infrastructure systems to serve potential investors; information and communication capacity; to ensure adequate and stable water and electricity supplies 21 22 To establish some focal agencies to attract investment. .. are capable of competing in the field of investment, currency, banking, tax, customs, immigration, and commerce, etc Commercial investment areas have some of the following principles: • The opening level is higher than other provinces’ and inland cities’ • The economic institutions are closer to the economic institutions of the international urban and special economic zones • The economic management... VND for attracting investment resources in the Mong Cai City and other provinces bordering China (a particular financial product born in Mong Cai province, has now been replicated in other areas in the country) This issue is beyond the scope of the thesis, but also a very important role in the mobilization and management of resources Due to the limited scope, the thesis has not focused on analyzing... quality of the investments will be in accordance with what is committed and deployed To select foreign investors on the basis of effective implementation of a number of solutions as follows: creating a friendly environment for business and a civilized and modern society; adjusting the selection criteria for FDI investors in the infrastructure sectors; innovating the investment promotion; creating a clean