Developing industry and trade in Da Nang city

The research linked trade policy (TP) and industrial policy (IP) in the management of state (administration) of developing and coordinating policy implementation - About space: Researching the industrial and commercial development in Da Nang, however, it is related to considering the factors to make effort in scope of Central- highland Area, East-West Economic Corridor as well as over the country - About time: Evaluating the status of industrial and commercial development in Da Nang City in period of 2001- 2012, proposing orientation and solutions for development to 2020 - About field to research: Goods Industry and Trade Research Methods of Dissertation - Using document analysis method to collect information about theoretical basis, previous research, legal policies of the State and Da Nang City about Industry and Trade; actual situation of Industry and trade development of Da Nang City; experience about Industry and Trade Development of some provinces/cities in domestic and abroad - Method of modeling , collecting, systematizing and generalizing to analyze and evaluate the actual situation of industry and trade development of Da Nang City, making the comparison and contrast a number of indicators about industry and trade development of Da Nang with some provinces and cities, with the central- Highland area as well as over the country - Method of conducting Survey with research objects (enterprises in industrial and commercial sector, consumers) to analyze and evaluate the status of mechanisms and policies for Industry and trade development of Da Nang City - Professional method used in evaluating the factors that have influence, opportunities and challenges, building views, orientating and proposing solutions for industry and trade development of Da Nang City in the period to 2020 CHAPTER OVERVIEW OF RESEARCH ON INDUSTRY AND TRADE DEVELOPMENT IN PROVINCE/CITY 1.1 Research status in abroad The role of Industry and Trade activities in socio- economic development of the country has been confirmed in much research (Armand Dayan, HEC, 1973, 2001, 2005) The development of Industry and Trade is driven by many different factors: Production conditions, transportation, management technology, laws and regulations of the state, services providers and especially market conditions (M Benoun, 1993, 2006) Most of the researches in this field focus on the relationship between manufacturers and distributors (Didier Ferrier, 1997); legal prospect and its impact on Industry and Trade activities (Combe, Karin, 2000); fluctuations in the distribution form (R Mairicourt, 1999); role of the modern distribution in economic development (Noronha Vaz, 1997) In general, the research is conducted by depth analysis and verifying separate relations of each factor for the Industry and Trade development on the national level or scope of enterprise Theory “Development Pole” assumes that the points having fast and powerful growth or development have more advantages compared to the whole region, often gather some industries serve as "locomotives" which pull, make effects to spread for the development of the whole region (Francois Perroux, 1950) The problem for regional development planning based on the principle analysis of the development advantages and growth poles in the area (Jacques Raoul Boudeville, 1966).Space Link in regional development (John Friedmann 1966) With the research approach about input- output, the backward linkages and forward linkages concepts are used to research the sector and inter-branch relations (Hirschman, 1958).The theory of comparativeness advantage determining the benefits of trade by demonstrating that exchange, with the specialization that it creates, will bring benefits for all the people talking to each other (David Ricardo, 1817) The determinant factors of national competitiveness advantage: The production factors; demand conditions; supporting industries (SI) and relevant sector; company strategy, structure and domestic competition (Michael E.Porter, 1990).Research on rationale for Industry Policy (Chang, Ha - Joon, 1994) The policy issues of international trade and commodity (Bijit Bora, Peter J.Lloyd, Mari Pangestu, 2000).Industry Policy with meaning of the purposeful intervention, consistent with the international principles and practices of government (Lluis Navarro, 2003) Research on the success of Industry Policy of Singapore (K.Ali Akkemik, 2009) 1.2 Research status in Vietnam The followings are a number of significant researches: Associate Professor Dr Pham Vu Luan (2001), some basic theoretical issues of administration of Trade in our country in the current period, the State- level topic Institute of Central Economic Management (2002), Strengthening coordination between state administration agencies for service Sector Dr Phung Tan Viet (2003), Innovation activities of agencies at the local administration of Trade at Locality in period to 2010, ministerial-level topic Le Huu Doc (2003) , Da Nang City Industry - Situation and Solutions for Development, economic doctoral dissertation Tran Van Thang (2004), State’s Administration of Trade in current stage in our country, economic doctoral dissertation Nguyen Van Thuong, Kenichi Ohno (2005), Completing Industry Development Strategy and Technology in Vietnam Peter Naray (Team Leader), David Luff (legal professionals), Paul Baker (economic expert) (2007), Evaluating support needs relating to trade in 2007 Nguyen Manh Hoang (2008), Completing content of State’s administration of goods trade in Hanoi to 2020, PhD Economic Thesis Associate professor, Dr Le The Gioi(2009), Some solutions to develop supported industries in the area of Da Nang City, ministeriallevel topic People's Committee of Da Nang City (2009), Development and Planning of wholesale and retail network in the city to 2020, planning and development of service sector in Da Nang City to 2020, planning and development of industry of Da Nang City to 2020, People’s Committee of Da Nang City (2010), Planning of overall socio-economic development of Da Nang City to 2020 Dr Do Ngoc My (Head of topic) Dr Ho Ky Minh, Master Tran Thi Hoa (2010) and colleagues, Developing Trade in Da Nang City to 2020, city –level topic Nguyen Ngoc Dung (2011), Developing Industrial Zones uniformly over Hanoi Economic doctoral dissertation Phan Thi Thu Hien (2012) , Linking trade policy and industry policy in the context of international economic integration, economic doctoral dissertation However, above research only mention particular angles that dissertation is interested in; there is the research mentioning industry and trade activity in general and briefly, there is the one focusing on one specific angle, specific for each business line, for one task of Industry and trade Until now, there has not had any research about Industry and trade development in Da Nang city in the inter-regional relations and over the country CHAPTER SOME MAJOR SCIENTIFIC BASIS ON INDUSTRY AND TRADE DEVELOPMENT IN THE PROVINCE / CITY 2.1 The position, role and necessity of industry and trade development 2.1.1 Indentifying some definitions relating to the development, industry and trade development of the province/city 2.1.1.1 Development and sustainable development Sustainable development (SD) is a development process that has a tight, logical and harmonious combination among three sides of development These are: economic development, social justice and environmental protection 2.1.1.2 Industry and Trade Development Industry development represents the change process of the industry at this stage compared with earlier stages and often achieves higher levels of both quantity and quality Trade Development is constantly expanding in size, and synchronization and completion of structure, increasing the pace and quality of trade growth, creating elements to ensure the sustainable development of trade activities, promoting socio-economic development of the province /city and country 2.1.2 Role of Industry and Trade in socio-economic development of the province/city and country Firstly, Industry and trade are the integral part of the economic structure of the province / city and have a large proportion of that structure Secondly, trade is the bridge between production and consumption Thirdly, the industry and trade development is decisive factor to make the process of industrialization - modernization of the entire national economy 2.1.3 Role of Industry and Trade in socio-economic development of the province/city In the development of socio-economic of the province/city, Industry and trade play important role which is shown on the following key aspects: contribution to GDP growth, market expansion, creating jobs and income for residents and serving consumers as well as ensuring social security 2.1.4 The objective necessity of Industry and Trade development in the province/ city Firstly, due to the location and role of Industry and trade is considered as the leading industry, accounting for a large share of GDP and economic structure of the country Secondly, due to the requirements of industrialization - modernization of the province/city which requires the Industry and trade development to fulfill the mission of our country in 2020 that Vietnam will become an industrial country Thirdly, due to the requirements of international economic integration 2.2 Some theories about industry and trade development in the province/city 2.2.1 Theory “Development pole” and its application on industry development of the province/city Theory “Development Pole” (Francois Perroux, 1950) can be applied to the study and proposing solutions to form development pole as the focused territories in industry and trade development of a province/city This is entirely consistent with the Provincial/City limited resources such as capital, technology, high- quality human resources, market, etc of poor and developing countries which in need of appealing investment capital 2.2.2 Theory about development advantages, competitive advantages and its application on the industry and trade development of the province / city Economic Geography Advantage Theory Economic Geography is the science studying geographical features affecting the process of economic development of a region consisting of many different countries, a country, a region, a sub-region or a city Applying the economic geography theory on the industry and trade development strategy planning of the province/city to identify, assess the economic- geography advantages of the province/ city in developing industry and trade Theory of national competitive advantages of Michael Porter (1990) According to Michael Porter, there are four elements of a nation in forming diamond model: The production factors; demand conditions; supported technology sector and related industries ; company strategy , structure and domestic competition He argues that companies in a nation will be successful in the field that the elements of this diamond shape are favorable This theory can be applied to the study and proposing solutions to create competiveness advantages in Industry and trade development of a province/city, for example; the city’s government can make the strong impact on the elements of this diamond model to improve and upgrade the competitiveness advantages of industry and trade sector; supporting for industry and trade, improve trade and manufacturing technology and related conditions Theory of Competitiveness advantages of Cities and region By factors in “diamond shape” Michael Porter has explained the reason why the city or region can develop Industry sector better than other places Applying this theory into Industry and Trade Development of a province/city under the direction: City’s Government needs to have mechanism to create the particular production element (having supported industries development assistance, training labors with high quality and investing on Industry and trade infrastructure) From presenting briefly some theories as above, we can get conclusion as follows: Firstly, to have a rapid growth, we need to select the area , region or locality to be growth pole and the rapid growth of the pole will push and pull the overall growth Secondly, to become the economic center of the region or the Industry and trade center of the country, it is necessary to strengthen and enhance the role of government, local government with opener and ready mechanisms and policies Thirdly, basing on the competitiveness advantages due to economic geography factors, stable political environment and high ranking business environment, we can choose one industry sector or trade field which has development advantages to become the industry and trade center of the region and country Fourthly, it is necessary to build and develop companies with good business strategies, highly competitiveness, attractiveness and large expansion Fifthly, highquality human resource is critical factor, which ensure conditions for development to become the center of Industry and trade Sixthly, it is needed to show the central role of the motivation city, creating attractiveness and expansion, engaging other localities in the region to co-develop 2.3 Content, evaluation criteria and the factors affecting the industry and trade development in the province /city 2.3.1 Main Content of Industry and Trade Development in the Province/ city Content of Industry Development: 1) Industrial Growth: The value of industrial production and development index of industrial production value; quantity, yield of Industrial products and quantity of Labor s working in Industrial Sector; growth in the quantity and scale of industrial production bases, industrial zones, high-tech industrial zones, export processing zones and industrial clusters (ICs); 2) The quality of industrial growth: Contribution of total factor productivity (TFP) has to be high; growth to ensure enhanced economic efficiency and competitiveness of the economy, along with environmentally sustainable development Content of Trade Development: 1) Domestic Trade Development: Establishing and developing infrastructure for industrial goods development; specialized developing trade activities; engaging environmental protection to Trade development; diversifying the types of Trade activities and trade modernization; Trading activities to make contribution on orientation; creation and development of human resources for commercial sector; developing the link of tradeeconomic; 2) Import Export Development: Developing market, business partners, goods sources, direct distribution system of commodity of province/ city in overseas markets, promoting the trade and circulation channels of imported goods 2.3.2 Evaluating Criteria of the Industry and Trade Development in the province / City Scale and growth speed Evaluating criteria: 1)Industry: Industrial production value; proportion of industrial production value in the province / city in the region and the country; added value of industry sector; number of Labors working in Industry Sector; number of industrial enterprises and scale of industrial enterprises; 2) Trade: Total retail sales of goods and services revenue and total wholesale; proportion of total retail sale of goods and services revenue of the province / city in comparison with the region and the country; Added value of industry sector; number of labors working in Commercial sector; number of commercial enterprises and scale of commercial enterprises; total import and export turn-over of goods in the province/city; developing 4) Ratio of trained labors of trading sector is low (equal to 29.2%), lower than it of industrial sector (equal to 55%) and the average rate of the country (equal to 40%) in 2012 5) Efficiency of using capital of trading sector: ICOR coefficient is quite high (over 5) from 2005 to 2012 (excepted for 2008) reflecting the low investment efficiency (ICOR: 3.46 in 2001 and 5.96 in 2012) 6) Competition capacity of trading companies, products and import-export goods of Da Nang is low 7) Structure of total retail sales and service revenue and wholesale trade: transferring from the total wholesales to total retail sales, reflecting roles of distribution centers Wholesale trade in Da Nang has been decreasing day by day 8) Trading structure of the province/ city: Proportion of retail sales through morden distribution system is lower than that of the whole country (22% compared with 25% in 2011) Proportion of transactions implemeneted through e-commerce has been increasing 15 9) Average clearance time of import-export goods through Da Nang port is shortened by implementing electronic customs 100% 3.2.3 Analyzing conditions to ensure the sustainable development of industry and trade Market development: Domestic market of Da Nang has developed quite rapidly Export market of Da Nang has expanded to 106 countries and territories over the world Import market has been more and more developed Import goods contains machineries, producing equipment and material for export goods The synchronization and modernization degree of industrial and commercial infrastructure systems Da Nang province: Industrial and Commercial infrastructure of Da Nang has basically met the basic needs of investors and companies Industrial and Commercial connection with the outside of Da Nang by transportation systems, logistics network and investment support services is evaluated to be quite good by enterprise community Quality and effect of Industrial and Commercial policies in Da Nang: 1) Institutional environment: Da Nang city has issued many policies to institutionalize the Government’s regulations and mobilize any source for investment and development of Industry and Trade Provincial Competition ability (PCI): Da Nang is on the top However, in the past two years, PCI has downgraded, many criteria were dropped; 2) State Management of Industry and Trade has been enhanced, but effect and efficiency remained low Link of Trade Policy and Industry Policy in State’s Management in coordinating the establishing and implementing policy: There is no consultant department in coordinating the establishing and implementing trading and industrial policies; assignment of responsibilities and coordination between State’s Management departments in implementing industrial and commercial policies has remained many existence and inadequacies; the review and adjustment of policies are not uniformed and efficient Protecting ecological environment: Da Nang has paid attention to sustainable development by implementing many programs, researches and improving environment resulting in the title of “Environmental City” of the world in 2012 16 3.3 General evaluation of the status of socio-economic, industrial and commercial development in Da Nang in 2001- 2012 3.3.1 Evaluating the real situation of socio-economic development of Da Nang Firstly, economic growth of the city is quite high but unsustainable Growth pattern still remains in the breadth, not focus on developing the depth Secondly, Da Nang has not demonstrated its central role in the region Thirdly, dissemination and attraction the neighbor provinces and Central Highlands provinces to develop industry and trade are still limited Fourthly, general picture of economic structure has not created sectors, subsectors economic facilities with leading roles to promote development of different sectors and subsectors Fifthly, structure of industrial and commercial sectors have not permitted establishing branches to support in manufacture and distribution 3.3.2 Evaluating the real situation of Industrial and Commercial development of Da Nang a The main achievements and reasons The main achievements For industry: Firstly, Industrial sectors have developed rapidly to contribute in trading development Secondly, Industry has significant contributed in GDP of the city Thirdly, structure of processing industry has transferred positively, high-tech industry has moved strongly in the structure of processing industry Fourthly, economic components participating in industrial activities have transferred from State Economy to Non-State Economy Fifthly, quality of industrial development has more and more enhanced Sixthly, Industry contributed in solving works and reducing unemployment rate for the people of the city and labors from other locations For trade: Firstly, Da Nang is a market with high power consumption and strong development Secondly, Da Nang partially confirmed its central role of the region Thirdly, structure of goods has transferred positively both in domestic market and import-export markets Fourthly, economic components have transferred to diversity and to be suitable with transferring direction of the whole country Fifthly, the number of trading companies has increased year by year and accounted for a large proportion in comparison with those of the 17 city and the whole country Sixthly, proportion of e-commercial transaction has been increasing and clearance time of import-export goods has been reduced Seventhly, Da Nang partially confirmed its position, and role of central distribution of the region Reasons for achievements: (i) Da Nang has its advantages and potentials to develop industry& trade and distribution services attached by developing tourism and services; (ii) Da Nang has a favorable geographical position, quite complete and modern infrastructure; (iii) An attractive investment environment, The State Management of Industry and Trade has been more and more strengthened; (iv) linkage mechanism and cooperation between Da Nang and provinces / cities in the area, region, country and in the world have been increased b Limitations and causes Limitations For Industry: Firstly, Industry rapidly developed but still remained in breadth Secondly, contribution proportion of growth value of Industrial sectors in GDP of the city tended to reduce in 20062012 Thirdly, capital using efficiency is still low; investment capital for industry is still not suitable with growth position of a region Fourthly, competition capacity of industrial products is low Fifthly, growth rate of processing is very low even processing industry accounts for a large proportion Sixthly, technology level of industrial sectors is only remaining in low- middle level Seventhly, most of industrial companies in the city are small and middle size companies with small scope and low competition capacity For trade: Firstly, Trade has slowly developed with growth pattern remaining in breadth, not developing in the depth Secondly, average growth rate of total retail sales and service revenue is more than wholesale trade Thirdly, role of trading sector in economic growth of the city is reduced Fourthly, growth quality is low Fifthly, capital using efficiency is low Sixthly, structure of modern trading sector can be rapidly applied but unsustainable Seventhly, most of trading companies in the city are small and middle size companies with small scope and low competition capacity Eighthly, competition capacity of exported goods is very low Ninthly, role of export in GDP of the city has been decreasing Tenthly, links among members of distribution system is loose, role of distribution center in Da Nang has been reducing 18 Cause of limitations: (i) Da Nang has not exploited its potentials and advantages effectively, especially its favorable geographical position and potentials to be a developed pole of an economic area (ii) State’s mechanism for Da Nang is not strong enough to implement its role for a priority economic area; (iii) Support policy system is quite modern but lacks of synchronization; (iv) Links in developing industry and trade have not yet developed a comment strategy, establishing and implementing of policies have not uniformed and efficient; (v) Lacks of qualified labors, limited financial capacity CHAPTER DIRECTIONS AND SOLUTIONS TO DEVELOP INDUSTRY AND TRADE IN DA NANG CITY 4.1 Situation and opportunities, challenges for industrial and trading development in Da Nang city 4.1.1 Situation and expectation (directions of the global economy, direction of Viet Nam’s economy, potentials to develop the priority economic area of the Central Region, directions to develop industry and trade of Da Nang city represented in the main copy of the thesis) 4.1.2 Analyzing strength points, weakness, opportunities and challenges of industrial and commercial sectors of Da Nang in the next time Strength: Potentials to develop the area: quite complete and modern industrial and commercial infrastructure; investment and trading environment; the highlight points in fields: IT, mechatronicautomation, energy; the city issued the basic planning; easy to approach to capital sources with 50 branches of commercial banks and financial organizations; the leading qualified labors in the region; prior to industrial and commercial development resources expressing through many detail policies of the State and city; consumer hobbies tends to use modern distributing services leading to larger volume of market Weakness: Growth rate GDP of trading sector tends to decrease or increase slower than GDP of the city; lackage of senior personel in industrial and trading sectors, undeveloped support policies; low technology coefficient of industrial branches; research activities 19 remaining in mid-scale; weak links between university and production and market; undeveloped logistics services, low export quality, high trading expenses Opportunities: Viet Nam became official member of WTO; new position of urban type I, 1000ha planned high-tech area with many prior investment policies; scheme to establish international level university; strong development of global trade, post-crisis economy to create opportunities; resident and urban areas along with coastline bringing a large number of qualified, skilled and high income labors Challenges: International trade tends to reduce competition advances based on exploiting cheap resources and labors to transfer to products manufactured by capital and technologies; Viet Nam commits to terminate export support activities under scheme of WTO; stiff competition of investment capital and manpower in the post crisis period; having only some FDI projects on developing production and transferring technology; It will be difficult for Da Nang to attract manpower and Da Nang must base on its manpower; Commitment of open distribution activities will lead to harsh competition among foreign and domestic distributors 4.2 Viewpoints, targets, directions to develop industry and trade in Da Nang city 4.2.1 Viewpoint of industrial and commercial development Firstly, industrial and commercial development must contribute to implement the targets of socio-economic development of Da Nang city Secondly, industrial and commercial development must be quick and sustainable to bring Da Nang to be an attractive city Thirdly, development must base on between industries and trade in the relation with development strategies of the country, and planning of priority economic area in the Central Region and economic integration Fourthly, industrial and commercial development will promote and attract every potential manpower of economic components Fifthly, industrial and commercial development based on promoting, exploiting advantages of the sectors and local locations effectively 4.2.2 Targets to develop industry and trade To 2010, Industry and trade continued being the important sectors of economy, having great contribution in socio-economic development 20 of the city, bringing Da Nang to become one of the modern and sustainable developing urban in the region and in the country 1)For Industry: Industrial development in 2011-2015: 12.2%/year; 2016-2020: 12.3%/year Industrial production value in 2015 will reach to 27,000 billion dong, average growth rate in 2011-2015: 13.24%/year Industrial production value in 2020 will reach to 48,000 billion dong, average growth rate in 2011-2015: 12.2%/ year 2)For Trade: Commercial development in 2011-2015: 12.2%/year; 2016-2020: 14.1%/year Commercial value in 2015 will reach to 2,518 billion dong and 4,865 billion dong in 2020 Total retail sales and service revenue will achieve 56,120 billion dong in 2015 and average growth rate in 2011- 2015 will be 17.5%/year, and 123,200 billion dong and 17%/year in 2016- 2020 Export value in 2015 will be 3.37 billion USD in 2015 and 7.7 billion USD in 2020, average growth rate equals to 19%- 20%/ year in 2011-2015 and 18%-19% in 20162020 4.2.3 Direction to develop Industry and Trade 4.2.3.1 Directions to develop industry: Prior to develop high-tech industry and branches and products with high added value; promoting exploiting and manufacturing seafood serving export; transfer industrial structure to diversify products; building high-tech industrial area to attract and develop high-tech industrial sectors; completing support policies and develop industrial zones, linking the development of IPs and ICs and the development of urban systems and services 4.2.3.2 Directions to develop trade: Developing Da Nang to be an agent, trading center in the Central Region and Central Highlands to promote expoet, developing modern trading methods 4.3 Main solutions to develop Industry and Trade of Da Nang city 4.3.1 Basic solution group 4.3 Main solutions to develop Industry and Trade of Da Nang city 4.3.1 Basic solution group 1) Completing commercial environment institution: (i) Completing trading environment: Firstly, reducing expense and time to implement the state’s regulations Secondly, promoting administrative capacity of the city Thirdly, executing public and transparent implementation (ii) Enhancing State Management about Industry and Trade: First is 21 completing legal framework of industry and trade Second is enhancing quality of oriented activities to develop industry and trade Third is creating conditions for development of industry and trade; the fourth is enhancing efficiency of market management activities 2) Developing modern and uniform industrial and commercial infrastructure Industrial infrastructure: Firstly, improving, investing, upgrading the current IPs and ICs; accelerating development schedule of Hightech IPs and IT IPs Secondly, issuing and implementing the regulations of safety and environment sanitary during construction period in IPs Thirdly, upgrading power supply and power network, maintaining and improving and building water supply system Commercial infrastructure :Firstly, developing modern commercial business types according to urban planning to meet the diversified demands of populations and tourists Secondly, improving, upgrading and modernizing types of traditional business 3) Developing manpower of industrial and commercial sectors: Firstly, implementing survey to collect information of labor needs of enterprises Secondly, developing Da Nang city to be the training center of human resource in the Central- Highland region Thirdly, linking with the international education facilities to organize qualified training courses Fourthly, supporting to train sales administrators in enterprises Fifthly, completing policies to attract, develop and keep talented persons 4) Enhancing competition capacity of enterprise: Firstly, enhancing capital approach ability of enterprises Secondly, supporting the market information, finding partners, promoting business and investment Thirdly, supporting enterprises to train labors Fourthly, promoting the bridge role of Career Association Fifthly, enhancing abilities to approach land and other priority policies Sixthly, assigning resources for enterprises acting in spearhead industrial sector and important commercial sectors Seventhly, encouraging and supporting enterprises in investing in researches and development activities Finally, renewing the sustainable development pattern of enterprises 5) Restructuring industrial and commercial sectors and transferring growth patterns: Firstly, enhancing growth quality of industrial and commercial sectors Secondly, enhancing planning quality, combining strategies with planning and plans to develop 22 production and distribution system Thirdly, concentrating resources to establish sub branches, production facilities, for example high-tech product manufacture Fourthly, implementing the economic restricting process together with the transfer of territory structure, enterprise economic structure, capital structure, labor structure, market structure and economic institutional structure Fifthly, implementing industrial structure (or commercial structure) patterns to increase capital using efficiency, environment protection and improvement Sixthly, continuing completing institution 4.3.2 Breakthrough solution group 1) Developing to become a high-tech industrial pole 2) Researching to establish Free Shopping Center 3) Building International Shopping town 4) Developing to make Da Nang become a transshipment terminal, business transaction center in Central Region and Central Highlands 4.3.3 Group of other solutions 1) Developing support policies: Da Nang should focus on electronics, manufacturing and assembling type of computers, IT and telecommunication equipment, electric, thermoelectric cooling, civil electric and specialized equipment 2) Developing goods export: Enhancing growth value in exported goods and establishing Export Credit Insurance Organizations 3) Strengthening links of region’s development: Enhancing building a link among Industry- Trade- Services- Tourism- Support policies in the whole area (including locations having East- West economic border) that Da Nang play the central role to support the development of socio-economy based on promoting the strengths of each locations 4) Enhancing links between trading policies and industrial policies: Firstly, establishing consultant department in cooperating to issue and implement trading policies and industrial policies Secondly, assigning responsibilities and cooperating departments to implement linking trading policies and industrial policies Thirdly, establishing review, adjusting and evaluating mechanism to consider science features and feasibilities of linking trading policies and industrial policies 23 4.4 Some recommendations to develop industry and trade in Da Nang city Recommendations of Free Shopping Center in Da Nang; completing legal frame, creating fair business environment; building urban organizing pattern and particular financial mechanism; enhancing inspection, and control markets; Enhancing market administrative quality, supporting small- middle size enterprises CONCLUSION Industrial and commercial development plays an important role in socio-economic development of Da Nang city The contents represented in this Thesis concluded theoretical issues, experiences to develop industry and trade in and out of the country, analyzed the status of industrial and commercial development in directions of sustainable growth and development linking to development of the Central- Highland Region, the whole country and East-West economic corridor Since, giving the solutions to bring Da Nang city to be the center of Industry and Trade in the region and our country With these methodologies to solve these issues based on the scientific basis of the industrial and commercial development, the thesis has some new features: 1) For theory: Firstly, on the theoretical approach of sustainable development, advantages of competition and development pole, the thesis determined theoretical basis, features, structure and content of the industrial and commercial development in the city; Secondly, the thesis defined criteria to evaluate industrial and commercial development of one province/city in the situation of integration, including: criteria of growth scope and speed.; criteria of growth quality and development level; criteria of assured conditions for sustain development Thirdly, the Thesis researched experiences of industrial and commercial development in some provinces with the relative features in order that Da Nang can apply these useful experiences such as: Da Nang should issue and implement mechanisms and policies to develop IPs and ICs, select the directions to develop technology and high tech; building free shopping center, enhancing competition capacity for the enterprises; building shopping street with global scale; building distribution centers for the local and global; establishing export credit insurance; enhancing quality of human resource; restoring and modernizing traditional distribution 24 types and applying modernizing distribution types, linking commercial policies and industrial policies 2) For real situation: Firstly, the Thesis analyzed, evaluated the industrial and commercial development of Da Nang scientifically and objectively in the period from 2001 to now according to criteria and targets together with comparing with the Central Highland Regions Thereby, drawing experiences as well as pointing out limitations and causes to give solutions to exploit opportunities, potentials and advantages to overcome challenges, limitations and to develop Industry and Trade in the future Secondly, the Thesis confirmed growth pattern of Industry and Trade of Da Nang in the past time remaining in the breadth and unsustainable So, the thesis defined that to have sustainable development of Industry and Trade needs transferring its patterns and restricting its structure to ensure growth quality, enhance efficiency and competition capacity Thirdly, the Thesis defined opinions, directions and uniform recommendations (basis solution group, breakthrough solution group and other solution group), in order to develop Da Nang’s Industry and Trade rapidly and sustainably, promoting growth pole’s role of priority economic area in Central – Highland areas Industrial and commercial development in Da Nang is a big matter with many approaching directions With the issues given in the Thesis, the thesis want to clarify the theoretical and practical issues to develop Industry and Trade rapidly and sustainably, contributing to the economic development of the city, bringing Da Nang to become one of the modern and developed industrial and commercial centers in the region and in the country However, for the limitations of capacity and data approach, the thesis has not researched all contents of linking commercial policies and industrial policies: Strategy to develop industry in the trade liberalization and international economic integration and links of commercial and industrial policies This is also the research direction in the future Fellow looks forward to receiving feedback and assistance of professionals, managers and scientists to continue studying and complete this research [...]... but effect and efficiency remained low Link of Trade Policy and Industry Policy in State’s Management in coordinating the establishing and implementing policy: There is no consultant department in coordinating the establishing and implementing trading and industrial policies; assignment of responsibilities and coordination between State’s Management departments in implementing industrial and commercial... promoting, exploiting advantages of the sectors and local locations effectively 4.2.2 Targets to develop industry and trade To 2010, Industry and trade continued being the important sectors of economy, having great contribution in socio-economic development 20 of the city, bringing Da Nang to become one of the modern and sustainable developing urban in the region and in the country 1)For Industry: Industrial... recommendations to develop industry and trade in Da Nang city Recommendations of Free Shopping Center in Da Nang; completing legal frame, creating fair business environment; building urban organizing pattern and particular financial mechanism; enhancing inspection, and control markets; Enhancing market administrative quality, supporting small- middle size enterprises CONCLUSION Industrial and commercial... completing legal framework of industry and trade Second is enhancing quality of oriented activities to develop industry and trade Third is creating conditions for development of industry and trade; the fourth is enhancing efficiency of market management activities 2) Developing modern and uniform industrial and commercial infrastructure Industrial infrastructure: Firstly, improving, investing, upgrading... zones, linking the development of IPs and ICs and the development of urban systems and services 4.2.3.2 Directions to develop trade: Developing Da Nang to be an agent, trading center in the Central Region and Central Highlands to promote expoet, developing modern trading methods 4.3 Main solutions to develop Industry and Trade of Da Nang city 4.3.1 Basic solution group 4.3 Main solutions to develop Industry. .. growth pattern of Industry and Trade of Da Nang in the past time remaining in the breadth and unsustainable So, the thesis defined that to have sustainable development of Industry and Trade needs transferring its patterns and restricting its structure to ensure growth quality, enhance efficiency and competition capacity Thirdly, the Thesis defined opinions, directions and uniform recommendations (basis... DEVELOP INDUSTRY AND TRADE IN DA NANG CITY 4.1 Situation and opportunities, challenges for industrial and trading development in Da Nang city 4.1.1 Situation and expectation (directions of the global economy, direction of Viet Nam’s economy, potentials to develop the priority economic area of the Central Region, directions to develop industry and trade of Da Nang city represented in the main copy of... Quality and Development Level Evaluating criteria: 1) Industry: Contribution of TFP in Industry Growth; Proportion of Added value of Industry Sector in comparison with Industrial production Value; Proportion of trained labors in Industry Sector; productivity of labors in Industry Sector; industry investment performance; competitiveness of industrial enterprises and industrial products of the province / city; ... Firstly, establishing consultant department in cooperating to issue and implement trading policies and industrial policies Secondly, assigning responsibilities and cooperating departments to implement linking trading policies and industrial policies Thirdly, establishing review, adjusting and evaluating mechanism to consider science features and feasibilities of linking trading policies and industrial policies... foreign and domestic distributors 4.2 Viewpoints, targets, directions to develop industry and trade in Da Nang city 4.2.1 Viewpoint of industrial and commercial development Firstly, industrial and commercial development must contribute to implement the targets of socio-economic development of Da Nang city Secondly, industrial and commercial development must be quick and sustainable to bring Da Nang to