Đòn bẩy kinh tế nhà nước đối với khu công nghiệp ở việt namn tóm tắt tiếng anh

HO CHI MINH NATIONAL ACADEMY OF POLICTICS VU NGOC THANH ECONOMIC INCENTIVES OF THE STATE FOR INDUSTRIAL ZONE IN VIETNAM SUMMARY OF DOCTORAL THESIS Study field: Political Economy Code: 62 31 01 02 HANOI – 2018 THE THESIS WAS COMPLETED AT HO CHI MINH NATIONAL ACADEMY OF POLICTICS Supervisor(s): Assoc Prof., Dr Pham Quoc Trung Reviewer 1: Reviewer 2: Reviewer 3: This thesis shall be defended in front of the thesis Committee at Academy level at Ho Chi Minh National Academy of Politics At hour date month year 20 The thesis can be found at: The National Library and The Library of Ho Chi Minh National Academy of Politics INTRODUCTION The necessity of the thesis There have been 325 industrial zones (IZ) constructed in Vietnam for the last 25 years, and these IZs have significantly contributed to the local economy in terms of the economic and social development IZs gradually showed their important roles in Vietnam Economy and Industry on aspects of scale, capacity and production level, and kept the core role on improving the country competitive ability and increasing GDP In addition to these achievements, the IZ development progress shows a number of emerging issues such as how to fully operate 220 IZs of 325 ones available? How to mobilize investment into the remaining of 105 IZs in the progress of land clearance? How to construct the complete systems of waste treatment and environmental protection for all IZs? That is because, so far, there have been 189 IZs installed and operated their own fully central system of waste treatment and environmental protection These are questionable for the governance of IZs in the coming years? The governance of a Socialist-oriented Market Economy integrating deeply and widespreadly into the world economy, requires the sound policies and economic incentives In fact, the economic policies of the Government become increasingly important and suitable with operating rules, international standards, bilateral and multilateral commitments in the management of the economy in general and the management of IZs in particular Therefore, the PhD candidate selected the topic “The economic incentive of the State for industrial zone in Vietnam” as the PhD study subject in the field of the political economy as the necessity, the practical, and theoretical signification Research purposes and research tasks 2.1 Research purposes Systemization and clarification of practical and theoretical issues of economic incentives of the State in the present practical condition to analyze and appraise the practice of the State’s economic incentive performance for IZs, to propose directions and solutions to the State’s economic incentive performance for IZs in Vietnam to year 2025 2.2 Research tasks + Systemizing and clarifying some practical and theoretical issues of the State’s economic incentive performance + Clarifying some existing problems of IZs related to the State’s economic incentive performance in the period 2011 - 2016 in Vietnam + Analysing and appraising the practice of the State’s economic incentive performance for IZ + Proposing directions and solutions to the State’s economic incentive performance for IZs in Vietnam to year 2025 To implement the above tasks, the thesis focuses on clarifying the following things: 1/ What are economic incentives of the State? What are the similarities and the differences between the economic incentive and the State’s economic policy? 2/ What is the practical picture of the State’s economic incentive performance for IZs in Vietnam in the period 2011 – 2016? What are the achievements, limitations, and issues of performing the State’s economic incentives to year 2025? 3/ what are the directions and solutions to the State’s economic incentive performance for IZs in Vietnam to year 2025? Research subjects and research scope 3.1 Research subjects Based on the topic of “Economic incentives of the State for industrial zones in Vietnam”, the thesis focuses on the issue of economic incentives implemented by the State for IZs – means to study the issue that economic policies are used by the State to be incentive tools for IZs in the process of the State’s management functions in order to increase the investment attractiveness and to promote the IZs development Based on that economic incentives mentioned in the research scope of the thesis are commonly used economic policies that belong to the fields of finance; currency – credit; trade; foreign currency management; land, natural resources, water surface and infrastructure; income, living house, job training, environment, energy, 3.2 Research scope To be suitable with the research subject and the topic requirements, the thesis focuses on studying economic incentives being enforced by the State for IZs + Temporally, the thesis approaches to the research subjects from the enforcement of the Decree no 29/2008/NĐ-CP on date 14/3/2008 of the Government of Vietnam about IZ, Export processing zone, and Economic park to the present time As the research into directions and the solutions proposal of the State’s economic incentive performance for IZs, the time will be limited to year 2025 + Spatially, the thesis focuses on clarifying economic incentives implemented by the State in the whole country of Vietnam + In terms of information, the thesis uses the secondary data officially published by the State’s organizations; the official national/international organizations such as ADB, IMF, WB, Theoretical basis and research methodologies 4.1 Theoretical basis The thesis research is based on the methodology of Marxism – Leninism, the theories of market economics, institutional economics, sustainable development economics, and the systems of the Party’s views and theories on the State’s roles and functions into the field of industrial development management in Vietnam Especially, for the incentive function of economic policies, the thesis prefers to the approach that the State is the economic subject which has got the establishing function 4.2 Research methodologies The thesis uses the methods consistent with the political economy research, such as: statistics, scientific abstraction, combination of analysis and synthesis, logic and history, of which the thesis prefers to the practical research method including the practice of IZs development; the practice of the State’s economic incentive performance for IZs The new contributions of the thesis Systemizing the scientific basis of implementing the State’s economic incentives for IZ; developing the economic incentive concept of the State; clarifying the role of the State’s economic incentives for IZ and the factors affecting the State’s economic incentive performance for IZ; summarizing the useful experiences and withdrawing the valuable lessons leant for Viet Nam To complement a newly scientific approach based on the political economy for the research into economic incentive for IZ Systemizing the existing economic incentives in period 2011 - 2016; specifying achieved results, limits and issues emerged from the present status of the State’s economic incentive performance at present Clearly recognizing effects of the international and country context on the State’s economic incentive performance for IZ Determining point of view and orientation of the State’s economic incentive performance for IZ in Viet Nam to year 2025 Studying the synchronous solutions to the State’s economic incentive performance for IZ in Viet Nam to year 2025, of which the solution of combining variously economic policies including new policies, to establish a set of economic incentives synchronous, homogeneous is Structure of the thesis Apart from the introduction, conclusions and references, the thesis contents chapters, 12 sections Chapter OVERVIEW OF RESEARCH SITUATION RELATING TO THE THESIS 1.1 RESEARCHES IN FOREIGN COUNTRIES The collection, analysis and appraisal of the research reports published by foreign person(s) and organization(s) related to the thesis topic show the research of economic incentive issue including: the financial incentives of taxes, fees, rents, direct subsidies from the State budget; the credit incentives of capital, lending interest, lending time; the incentives of income, salary, labor training, and housing for people working in IZs; the incentive of foreign currencies; the incentives of trade were studied by some organizations and persons, and they achieved the certain results such as the mention of almost economic incentives, of which the most was the financial and credit incentives; The majority of these studies illustrated the important role, the necessity, of economic incentives, especially the financial incentives based on exemption, and reduction, of taxes and fees; some researches went further as considered the impacts and efficiency of the financial incentives increasing the investment attraction to IZs or the certain industry or place However, the overall and comprehensive research of the State’s economic incentives for IZs in order to appraise the certain level of successes, limitations and causes of the limitations, as well to know the scope and level of impact, efficiency and effectiveness of the State’s economic incentives for IZs, up to date, this issue was just done partially but not fully implemented 1.2 RESEARCHES IN VIETNAM The data collection for implementing the thesis contents shows that almost the research reports related to the thesis topic focused on the proposals that the State performs some economic incentives which are the policies of exemption and/or reduction of taxes, fees and rents; direct subsidies from the State budget; credit capital supports (lending interest and level); supports and priorities of land use, water surface, infrastructures, and public services supply; supports of purchasing machines, equipments and inputs as well as outputs market development through trade promotion, foreign exchange use; supports of workers training and full-skill-workerforce development working in IZ, as well as other policies to achieve the objective of increasing investment attraction to IZ, but not clearly explained the scientific basis of those proposals, also not analyzed and forecasted the impacts as well as results, efficiencies of performing those economic incentives in the research case In addition, there are not any research related to the topic that the State performs its economic incentives in general and for IZs in particular, especially in terms of the field directly related to the thesis topic This is the one of big difficulties and limits related to this section, therefore partly affecting the task of synthesizing, analyzing and appraising the theoretical development and the practical experience of the State’s economic incentive performance in Vietnam 1.3 RESEARCH GAP AND NECESSARILY FURTHER STUDIED ISSUES Based on the findings and conclusions withdrawn form the researches in Vietnam and foreign countries on the topic of economic incentives of the State for IZs, it is said that the research of economic incentives of the State for IZ, up to now, still has got the following “gaps”: Firstly, the IZ development was appeared in the context of widely and deeply international integration, many international commitments and consistent obligations required to be compliance, the economy depends much on the outside world; the fourth industrial revolution and wireless technology with internet have been strongly developing more than ever in human history; the new macro-economic management tools appeared, to make the economy management and operations of the State have become much more complex, what shall the issue of the State’s economic incentive performance for IZ be? in the above complexly changing development context is the existed gap and the significantly important issue which needs to research and fill up Secondly, the role, impact, efficiency, effectiveness, affecting factors, achievement, limit, of the incentives in terms of finance, credit, trade, land use, resource, environment, labor, infrastructure, public services, of the State for IZ withdrawn from the practice in the last recent years in the context of economic development and widely and deeply international integration of Vietnam to the year of 2025 Thirdly, the combination of variously economic incentives (tax, fee, rent, direct support of the Stat budget; lending capital level, supported interest, lending and supported time period; foreign exchange rate and supports of foreign currency purchase, and profit and capital transference to home/foreign country; labor training, regulations of minimum salary levels, housing and social services for workers; infrastructural services and other supports into the field of policy performance in order to achieve the efficiency of investment attraction into IZ Fourthly, up to today, the research of economic incentives of the State for IZ in Vietnam mainly focused on the issue of seeking and proposing solutions for treating a certainly specific problem in practice, but there was not any full and comprehensive research which has studied systematically in order to contribute to the reduction of the research gap into the research field of economic incentives of the State for IZ, based on that to find directions and solutions of the State’s economic incentive performance for IZ to year 2025 The thesis focuses on the research of the following issues: Firstly, establishing basically theoretic framework of the State’s economic incentive performance for IZ in the context and conditions of the IZ practical development in Vietnam; Secondly, to study the practice of economic incentive performance for IZ in some countries and to withdraw lessons learned for Vietnam; Thirdly, appraising and clarifying the achievements, limits and causes of the limits, of the progress of performing the State’s economic incentives for IZ in Vietnam; Fourthly, finding out directions and solutions for performing the State’s economic incentives for IZ in Vietnam in year 2025 These are the four issues which have not been studied, also is the research problem or “gap” in the theory of the State’s economic incentives for IZ in Vietnam that need the continuation of additional researches These issues are related to the thesis topic, therefore, will be analysed, appraised and explained into the following chapters Chapter SCIENTIFIC BASIS OF ECONOMIC INCENTIVE PERFORMANCE OF THE STATE 2.1 SOME THEORETICAL ISSUES OF ECONOMIC INCENTIVE OF THE STATE FOR INDUSTRIAL ZONE 2.1.1 Overview of industrial zone 2.1.1.1 Concept of industrial zone Based on the thesis scope, the IZ concept is defined as the area of producing industrial products and performing services of industrial production, which has got the specifically geographic bound, established by the regulations of conditions, progresses, and procedures 2.1.1.2 Some basic characteristics of industrial zone In Vietnam, an IZ has got some the following characteristics: Only the government or the Prime Minister just has the decisive power of IZ establishment and the establishment must follow the legal regulations in terms of conditions, progresses, and procedures; An IZ has got the specifically geographic bound and location, means an IZ must has got the full information of establishment document such as name, square, date of the establishment, functions and other basic details; and a concentrating place of enterprises producing industrial products and performing services of industrial production or processing the export products and performing services of export processing and export performance (the case: an IZ is an specially processing zone); An enterprise operates in an IZ, called an IZ enterprise, inherited the privately supporting policies on many aspects according to the legal regulations for IZ enterprises, and differs from enterprises not in IZs All enterprise types are without distinction; In an IZ, maybe there is a living area This is the characteristics appeared since 2008, up to now, so a big change of IZ characteristics, to be suitable with the new context and the requirement of IZs sustainable development 2.1.1.3 Role of industrial zone IZ plays the important role on the country development, shown at the following basic contents: Absorbing investments from different sources to meet the economic growth and socio-economic development; Contributing to improve levels of technology capacity, management capacity, human source; Contributing to develop and complete the technical infrastructure; Contributing to enhance the competitive capacities of enterprises and the country; Efficiently controlling and treating wastes to protect environment; Contributing to use land resource efficiently 2.1.2 Commonly economic policies and tools of the State 2.1.2.1 Financial policy and tools Financial policy is the economic policy that this policy’s main content is about the State’s revenue and expenditure (in Vietnam it is the State’s budget revenue and spending) and called budget revenue and spending Tools that help to make financial policies in terms of budget revenue are taxes, fees, rents, , and budget spending is the State’s expenditure 2.1.2.2 Monetary policy and tools The main content of monetary policy is the operation of the Central Bank in terms of management, controlling monetary supply and interest, managing circulated money quantity in the economy through tools such as monetary supply level, interest, open market operation, and the rate of reserve requirement In the field of monetary management, for regarding to the operation of credit capital supply, interest and borrowing level are two basic tools of capital lending policy 2.1.2.3 Foreign exhange policy and The State can select to implement one of three policies on foreign exchange rate management as follows: the fixed foreign exchange rate policy; the floating foreign exchange rate policy; and the flexible foreign exchange rate policy This policy can strongly affect to export, import and investment activities, therefore, to GDP growth, production, consumption, job and other aspects of the economy The important tool of foreign exchange management policy is the foreign exchange rate 2.1.2.4 International trade policy and tools International trade policy is the economic policy designed and performed by the State in the international trade field and which for controlling and managing import and export activities Beside the known tools such as taxes, fees, the State budget spending of the financial policy, other tools such as quota are used to establish the international trade policy of the State 2.1.2.5 Salary, income, house, training policies Salary policy for labors is performed by the State to aim protecting the labor benefit in terms on income, social benefits and to prevent from exploiting labors through too low salary payment that is not equal to labor’s losses in terms of time and energy The minimum wage is the economic tool performed by the State to establish the national wage policy in each concern time period, suitable with the socio-economic development 2.1.3 The economic incentive of the State for industrial zone 2.1.3.1 Concept of the economic incentive of the State for industrial zone In the thesis, the concept of economic incentive of the State for industrial zone in Viet Nam is defined as the State’s economic policy of encourage, support such as exemption, reduction, return, or delay, of taxes, fees, rents of land, resources, water surface, energy and infrastructure service use; supports in terms of credit capital borrowing, trade promotion, market development, labor training, social housing support to workers, environmental protection, foreign currency use, profit and capital transference to other country; and other economic encourages, supports of the State to increase investments attraction into industrial zone Types of economic incentives: incentives of finance; credit; trade; foreign currency; income – housing – labor training; and land, resources, water surface, energy and infrastructure 2.1.3.2 Role of economic incentives of the State for industrial zone The economic incentives performed by the State for IZ have six roles as follows: management tools of the State for IZ; Instruments for increasing investment attraction into IZ; Economic growth promotion, additional job creation, the State budget increase and enterprises development support; Environmental protection enhancement; Factor to increase efficiency and effectiveness of energy and resources uses; And improvement of policy making capacity, and policy performance, of the government 11 implement; (3) The quality of workers working in IZs; (4) Incomes, houses and social infrastructure providing public services for workers working in IZs; (5) the issue of pollution prevention and environmental protection To solve these existed inadequacies, the State needs to have synchronous/comprehensive solutions, of which the solution of economic incentives combined with other policies and incentives is essential 3.2 ACTUAL SITUATION OF ECONOMIC INCENTIVE PERFORMANCE OF THE STATE FOR INDUSTRIAL ZONES 3.2.1 Economic incentive of finance 3.2.1.1 Incentives of tax, fee, and rent - The incentives of enterprise income tax and personal income tax are the State’s policies of exemption, reduction, return of these two tax types At present, there have 17 incentive types of enterprise income tax and 01 incentive type of personal income tax that achieve the largest number of 48 incentive types of tax - The incentives of tax, and land and water surface rents are the State’s policies of exemption, reduction, return and delay of tax, and land and water surface rents At present, the State have been implementing 10 economic incentive types of tax, and land and water surface rents in practice, of which, 05 economic incentive types are the State’s exemption policies of land and water surface rents; the one type of tax exemption of non-agricultural land use; the one type of 05 percentage reduction of land use rent; three remained types were the encouraging and supporting policies of land use rent, tax of land or infrasture uses - The incentive of natural resources: are the State’s exemption, reduction and return policies of natural resources tax performed in some cases At present, in practice, only have two economic incentives of natural resources tax been performed by the State Natural resources include the land resource exploited at the location on the land area allowed - The incentives of value added tax (VAT): are the State’s exemption, reduction and return policies of VAT At present, in practice, the State regulated to apply the VAT rate of 10 % for goods and services except the particularly regulated case; and very few VAT incentives existed, only two types of deduct and preferential VAT tax; and very limited application scale - The incentives of special consumption tax: at present, in practice, only two types of economic incentives of special consumption tax that promulgated and performed by the State, including: the one type was the reduction policy of special consumption tax with the supporting rate that is 12 not higher than 30% of the tax value payment; and the remained type is the policy of returning the tax value paid - The incentives of import and export taxes: The State’s exemption, reduction and return policies of import, export taxes At present, in practice, the State performed 08 incentive types of import and export taxes to attract more investment of enterprises into IZs in Viet Nam, of which, only one economic incentive of tax return; three economic incentives of exemption, and two economic incentives of reduction, of import tax; one economic incentive of exemption, and another economic incentive of reduction, of export tax; the remained economic incentives are of preferential taxes of import and export in each specific case Economic incentives of exemption, reduction, return or preferential policies of import and export taxes have been performed by the State for each specific area, objects, for example import goods are equipments, vehicles, machineries, technologies to create the fixed assets of export product producing projects; environmental protection projects; development research projects of energy saving technology or equipments - Economic incentives of fees: are exemption, reduction policies of fees for specifically contributory fee payers At present, economic incentives of fees are performed limitation in the country 3.3.1.2 Incentives of the State budget These are economic policies of the State budget’s spending, performed by the State at present to support IZ development Specifically, 08 economic incentives performed to support the aspects of IZ development, such as the construction of completely technical infrastructure in and out of an IZ fence; the support of business and production base movement into an IZ; the support of projects in preferential fields for example energy, environmental protection, waste water treatment, land approach, development research, and equipment, technology renew or improvement of enterprises in IZ with the support maximum of 100 billion VND 3.3.2 Economic incentive of credit capital 3.2.2.1 Economic incentive of credit The State promulgated and performed economic incentives of credit to support enterprise to make investment projects into IZ, especially infrastructure development projects in and out of an IZ fence in areas of difficultly socioeconomic condition or specially difficult condition Preferential, supporting specific contents include: the supporting maximum for each project equals 70 % of the total investment capital (not including available capital); the capital lending term is not more than 12 years; 13 particularly, for the projects of group A, the capital lending term is the maximum of 15 years 3.2.2.2 Economic incentive of preferential capital for environmental protection and energy saving Economic incentives of preferential capital are the State’s policies of preferential capital lending from special funds such as Viet Nam Environmental Protection Fund, local environmental protection funds and other credit organizations For investment projects of energy saving product production, production line, production capacity expansion based on energy saving technology, the State performed some particularly economic incentives of variously preferential capital sources, in specific, enterprise was lent capital from the Development Bank, the Preferential Fund of Technology and Scientific Development, the National Fund of Technology Renew, the Environmental Protection Fund and the National Program of Advanced Technology, the National Program of Energy Saving and Efficient Use 3.2.2.3 Economic incentive of preferential capital for housing construction to workers in industrial zone For the lending level: i) Regards to house building for lease only, the maximum lending level equals 80% of the total project investment capital or the borrowing proposal and not exceeds 80% the mortgaged asset value of the loan; ii) Regards to social house build for rent, purchase, the maximum lending level equals 70% of the total project investment capital or the borrowing proposal and not exceeds 70% the mortgaged asset value of the loan For the lending term: i) Regards to house build for lease only, the minimum lending term is 15 years and the maximum term does not exceed 20 years from the date of the first capital loan disbursement; ii) Regards to house build for buying rent, the minimum lending term is 10 years and the maximum term does not exceed 15 years from the date of the first capital loan disbursement; iii) Regards to house build for selling, the minimum lending term is 05 years and the maximum term does not exceed 10 years from the date of the first capital loan disbursement of the project For the interest of preferential loan: i) The preferential lending interest of the Social Policy Bank was decided by the Prime Minister in each term; ii) The preferential lending interest of credit organizations was decided and published by the State Bank of Viet Nam based on to assure the principle that does not exceed 50% of the average lending interest of banks on market at the same term 14 3.3.3 Economic incentive of trade These incentives are the State’s economic policies of encourages, supports in the field of trade, such as the policies of supporting market development, information provision; supporting research and development At present, 04 groups of economic incentives of trade are performed by the State, but various at the aspects of the State’s preferential policies for enterprises to invest into IZ in terms of buying, selling, price subsidy to some products, goods and services 3.3.4 Economic incentive of housing, job training and social infrastructure for worker At present, 08 the State’s economic incentives of housing, job training and social infrastructure for worker are the preferential, supporting policies of finance (exemption, reduction of some taxes, rents, the State budget supports, ), preferential credit capital (interest, limit, and lending term), land, site plan, infrastructure, deducting the cost of worker’s house and social works construction to the production cost of enterprises and other policies that are performed by the State 3.3 ASSESSMENTS OF THE PROGRESS OF THE STATE’S ECONOMIC INCENTIVE PERFORMANCE FOR INDUSTRIAL ZONE IN VIET NAM IN PERIOD 2011 – 2016 3.3.1 Achieved results The first, the set of the State’s economic incentives for IZ was the relatively large quantity scale; various at the preferential and supporting levels in the research period of the thesis Specifically, as follows: there were 42 economic incentives of taxes, fees and rents; 06 types of the State budget spending; economic incentives of the preferential capital; 04 economic incentives of trade; 08 economic incentives of social house, job training and social infrastructure for workers The preferential, supporting levels were various and copious, such as 04 year tax exemption, 50% reduction of the enterprise income tax of several incomes for the period of the next years; 50% reduction of the personal income tax for workers involving both Vietnamese and foreigners who work in IZ; returning duty paid in case of temporary import goods to re-export; imported materials to produce, process export goods; import tax exemption of goods used to create fixed assets; materials and components to implement the investment project or to process export goods; export tax exemption of good used to produce import goods The second, the type of the State’s economic incentives for IZ was relatively various: exemption, or reduction, or return, of taxes, fees, rents; reduction of lending capital interest; increase of lending capital limit; to 15 extend the debt payment period of loan; to extend the period of grace; direct or indirect support from the State budget; account some of non direct business-production costs into the enterprise’s total operation cost; to allow an enterprise to account the business loss from this year to the next year into its tax payment income; support the lending capital interest for enterprise in a specific period The third, the performance and impact area of the State’s economic incentive set was relatively wide: the financial area; the credit – monetary area; the trade area; the use area of land, natural resources, infrastructure in, and out, of IZ; waste discharge management and environmental protection; energy saving and efficient use; social house and beneficiary works management; job training and creation for workers The fourth, the economic incentives of finance were used very popular and many more than others: 48 various types of financial incentives including the incentives of taxes, fees, rents and the State budget spending in comparison with the incentive quantity of credit or trade (04 types) or 08 types of social house, job training and social infrastructure for workers The firth, the State’s economic incentives in the pass time created the new direction of operation and management of IZs in Viet Nam 3.3.2 Limitations and reasons Beside the results achieved, the State’s economic incentives set for IZ in the pass time also showed some limits, as follows: The first, no distinction among the local areas in designing, promulgating, and performing the set of, economic policies in general and, economic incentives in particular in the pass time was inadequate and did not meet the practical requirement The second, the efficiency and effectiveness of the State’s economic incentives set were not achieved as expected – reflected by the present picture of IZ development with existing problems that presented in Subsection 3.1 of this chapter, in which the largest problem is how to fill the whole available IZs quickly in order to minimize the social loss The third, the quality of the existing policies was still low and did not meet the practical requirement of IZ development The fourth, the State’s economic incentives set available for IZ deflected to abuse the financial tools The firth, the advantages of other economic incentives were not fully exploited in the progress of designing and promulgating a synchronous set of the State’s economic incentives for IZ Lack of the economic incentives of foreign currency, especially in the context of globalization and international integration that are happening as much strongly as nowadays 16 or the quantity of economic incentives of fees, value added tax or natural resources use tax is very limited The sixth, no new tool beside the conventionally economic tools are used The seventh, so far, the monitoring and evaluation of arranging and performing the State’s economic incentives for IZ have been neglected and/or not been realized periodically and frequently The eighth, the full, synchronous and updated IZ database has not been established to serve the State management of IZ and other socioeconomic activities related to IZ 3.3.3 Issues asked for the State’s economic incentive performance for industrial zone in the next time In the new context of development, the requirement of IZ development in the next time in Viet Nam, the following issues are asked for the State’s economic incentive performance for industrial zone: The first, the economic incentive, in performing combination with other policy tools of the State, must meet the requirement of efficiently solving the problem of fully filling 220 operating IZs, along with 105 IZs that are in the progress of, land clearance, and infrastructure construction This is the urgent and the long-term issue, also and necessary to the State’s economic incentive performance for industrial zone development in the next time The second, the feasibility, the completeness, the comprehensiveness, the stableness and sustainability of the State’s economic incentives set for IZ must be considered the research doing to obtain the full assessments objectively in order to assure the economic incentives set can operate as the requirement of promulgating The third, the issue of effectiveness and efficiency of the State’s economic incentives set for IZ in terms of the financial, economic and social aspects must be more considered to assure that the existed limits and problems in the pass time can be solved comprehensively Therefore, in the next time, the State’s economic incentive performance for IZ needs to be analysed and appraised fully, objectively, scientifically and comprehensively on all aspects The fourth, the research of applying the newly economic tools, beside the inheritance and efficient exploitation of conventionally economic tools, the addition of the State’s newly economic incentives for IZ is needed and plays the specially important role in the new context of development – the deep and wide integration of Viet Nam into the World; the increase of 17 connection, exchange and the dependence of Viet Nam Economy and partner economies becomes higher with every passing day The firth, the issue of controlling, monitoring, appraising and summarizing lessons leant from the implementation also are required to be paid attentions to acquire the performing situation of the economic incentives set in practice, to help the State makes efficient interventions towards the expected objective of the economic incentives set Chapter ECONOMIC INCENTIVE PERFORMANCE OF THE STATE FOR INDUSTRIAL ZONE IN VIET NAM TO YEAR 2025 4.1 THE CONTEXT OF ECONOMIC INCENTIVE PERFORMANCE OF THE STATE FOR INDUSTRIAL ZONE IN VIET NAM TO YEAR 2025 4.1.1 International context Science and technology develop faster in the 4th Industry Revolution The information technology continues to develop strongly, to foster the leap development in many fields, to bring back the both opportunity and challenge to every notions The world economy continuously meets many difficulties, challenges and unpredicted changes The Asia Pacific area involving The ASEAN continues to be the smart development center that has got the more important with every passing day position of the ecogeography and politic strategy on the world At the same time, this is also the strategically compete area between the large countries, therefore hiding many unstable factors Nations participate the more profound with ever passing day in the production net and the global value chain The world price change, the unstableness of finance, currency and public debt issue continues to cause negative effects to the world economy Surely, the world context in the next time shall make the appearance of certain conveniences and challenges 4.1.1.1 Advantages The world economy has been changing significantly, profoundly and comprehensively on the aspects of economic institution, technology level and product structure Science and technology really came in the 4th Industry Revolution The trend of development and global linkages with many various types and the newly linking term in each field and each region shall appear These global trends will bring large opportunities for Viet Nam, and firstly, the globalization shall bring the opportunity of increasing the internationally economic cooperation to make activities of investment capital attraction, goods and technology trading,…etc more 18 active That long-term and strategic effect shall bring into play Viet Nam’s role in internationally and regionally economic organizations, to support the development cooperation 4.1.1.2 Challenges On the world, the unstableness is still existing, wars continuously happen in some areas, conflictions of religion, politic, economic benefit are waiting for breaking out; the world economy, although re-grew, but still meets many difficulties and lacked the stableness Market, price are unstable, continuously appeared changes unpredicted exactly 4.1.2 National context In Vietnam, the position and power, and the general power have been increased, the international prestige of the country has been improved, creating the important preconditions for performing the socioeconomic missions to achieve the determined objectives The country’s economy has been gradually escaped from the downturn and regaining the growth momentum, but still facing with many difficulties and challenges The stability of the economy is not steady; the public debt has grown fast, the bad debt has been decreased gradually, but still at high level, the productivity, the quality, the efficiency, and the competitive capacity of the economy are still low The national context included both the convenient and difficult factors, at the same time many new issues appeared 4.1.2.1 Advantages The institution of the market economy is more perfect with every passing day and enters into living, the base and also the motivation of socioeconomic development The modification and addition of the economic law promulgated, the writing of guide legal documents to the law implementation, mechanisms and policies aiming to establish the legal corridor and framework which check with the global playground of socioeconomic activities had been performed The progress of the country’s economy re-structure, which has been performed, generated the new vitality of the economy The result obtaining implementation of solutions for restricting negative effects of the financial crisis and economic depression The politic stableness and the continuously economic growth have achieved for many recently passed years as well as the widely and deeply international integration of economics day by day 4.1.2.2 Difficulties The first, to become a country which has got the developed industry, beside it has got many industrial products with the high rate of capital and technology, compete capability on the world market, the export products 19 structure has to move from the high labor rate to the high ratio of capital and technology The second, a country, considered as a developed industry country, must have moving steps from the capital import to the capital export, at least according to the net capital export criterion, it means maybe that country still imports capital but mainly exports capital To achieve that, Viet Nam must have many domestic companies strong enough to its investment in foreign countries and the annual investment flow is bigger than, or equal to, the FDI flow to Viet Nam The third, the issues faced by the State management of IZ in the new context are that the State management of IZ and the performance of economic incentives became much more complex than those in the previous period, therefore, the issues of management and the role of economic incentives have to research carefully on aspects of quantity, purpose, role, objective, level, timing and time as well as some other issues before choosing and performing policies in practice 4.2 ORIENTATION OF THE STATE’S ECONOMIC INCENTIVE PERFORMANCE FOR INDUSTRIAL ZONE IN VIET NAM TO YEAR 2025 4.2.1 Point of view of the State’s economic incentive performance for industrial zone to year 2025 Firstly, necessarily, to comply with view’s points, and directions, of Viet Nam Communist Party and State on establishing the synchronized set of the State’s economic policies to serve the Socialist Oriented Market Economy in Viet Nam This helps the performance of the State’s economic incentives set for industrial zone not been deflected and deviated from the lead, the governance, of the Party and the State on establishing the method and the level of the State’s intervention with policy tools to business and production activities, such as the activities of, IZ construction and development, organizing business and production in IZ in Viet Nam in the next time Secondly, the State’s economic incentive performance for industrial zone must meet the requirement and does not violate commitments of the international integration of Viet Nam signed with foreign countries in the bilateral and multilateral agreements effective in the next time Thirdly, the State’s economic incentive performance for industrial zone needs to base on the orientation of the economy’s growth model with the matters of creating the convenient business environment; promoting industrialization and modernization; accelerating industries restructure progress; promoting renovation, improving operational efficiency of 20 enterprises, to boost the country soon become, basically, a modern directed industry country as the objective which was planned in the 12th Congress of Viet Nam Communist Party (2016) Fourthly, the State’s economic incentive performance for industrial zone must the objective practice Studying, fully appraising every real factor are the basic base to create the precondition of the location to attract the investment into IZ This is the important base to promulgate the economic incentives which are the most suitable with condition of the location which has got IZ, IZ management and governance, and increasing investment attraction, especially FDI, into IZ Fifthly, the State’s economic incentive performance for industrial zone must assure the basic requirements of, maximally exploiting new modern tools, assuring the synchronization and the consistency in performing combination, of incentives together and, between incentives and other management policies of the State for IZ; focusing on the practical follow-up, giving prominence to the feasibility in performance arrangement, the effectiveness of the State management; the objective determination of achieving the highest efficiency in terms of finance, economics and sociality is the highest requirement of policy 4.2.2 Orientation of the State’s economic incentive performance for industrial zone to year 2025 The first, firstly to start from the practice necessarily, on the basis of preconditions to create the advantage, attraction for to attract investment into IZ in the location which has got IZ; to have to be based on the natural condition and the situation of socioeconomic development in the location which has got IZ, because of the impossibleness to synchronize the set of the State’s economic incentive performance for industrial zone in all 06 socioeconomic areas due to the natural condition, the potential and the socioeconomic development are various and inhomogeneous The second, to start from and to base on each issue or each issue group existing need to be solved efficiently, and to assure the principle of the highest practice follow-up The third, to follow the orientation of the maximum strong-point exploitation, and the minimum weak-point limitation, of each economic tool, concurrently have to assure the conflict situation, and/or the kill, of the positive effect of other economic incentives in the operation; assure the highest quality of the set of economic incentives and have to follow the stable and sustainable orientation in operation; and have to assure the active control of the State, especially risk in the governing progress of policy operation 21 The fourth, have to follow the orientation of minimizing the State’s direct support for investment attraction to develop IZ through the State budget spending to aim minimizing the negative effect to the State budget deficit and the high public debt of the country at present The fifth, have to follow the orientation of maximally transferring the active right in the research, proposal of the State’s economic incentives set to the local government that has got IZ, based on the national framework of economic policies on investment attraction into IZ; transfer the highest right of performance to the local government in terms of implementation arrangement, control, monitoring and evaluation, of the operation of the State’s economic incentives set for IZ 4.3 SOLUTION OF THE STATE’S ECONOMIC INCENTIVE PERFORMANCE FOR INDUSTRIAL ZONE IN VIET NAM TO YEAR 2025 4.3.1 Solution of performing the law of industry and perfecting the management institution of industrial zone To assure the sustainable development of IZs in Viet Nam, the State needs to the research and to perform the law of industry in the soonest time, because of doing as so to create a set of management policies, of which they include economic incentives for IZ in Viet Nam From today to the year 2025, to go abreast with completing the law industry, to base on the existing problems due to no law of industry as analysed above, the immediately performed necessary solution shall be that the State needs to adjust the present IZ management institution soon, to solve the problems, limits and weaknesses of the operation of the IZ State management, especially the problem of overlapping function, mission, and inadequate power, of the various state bureaus 4.3.2 Solution of enhancing the monitoring and evaluation system of the State’s economic incentive performance for industrial zone At present, the issue of monitoring and evaluating the operation of the State’s economic policies for IZ is not fully taken into consideration The annual monitoring and evaluation of the practical operation situation of performed economic policies is not arranged and realized effectively Therefore the relevant authorities/agencies have not known about the overall picture of the consistent, feasible, effects, effectiveness and efficient levels as well the other existing problems of the State’s economic incentive performance for IZ in practice The solution is that the enhancement of the controlling, monitoring and evaluating system of the State’s management policies for IZ needs to be mentioned and performed immediately to aim solving the existing problems and limits 22 4.3.3 Solution of strengthening and correcting the national information and data system of industrial zone Strengthening the national system of IZ information because it has not met the present requirement of the State’s practical management of IZ The problem of lacking information, database has been negatively affecting the activity of researching to promulgate and arranging to perform, the policies in general and the State’s economic incentive in particular, for IZ in the country at present This shows that the need of soon strengthening the national system of IZ information and data Well performing this issue shall facilitate the activity of re-checking, and assessing, of the operation of the State’s economic incentives set for IZ in the next time, based on that the State shall make its adjustments of the economic incentive performance for IZ to improve the efficiency of the economic incentive set for IZ 4.3.4 Solution of enhancing capacity for staffs preforming the State’s economic incentive performance for industrial zone As presented in the part of factors effecting to the State’s economic incentive performance for industrial zone, the staffs implementing the task of arranging the policies performance in general, economic incentives in particular, of the State for IZ directly affect the practical results achieved and the proposed objective, therefore, once is the set of the State’s economic incentives for IZ promulgated and performed, it needs to focus on teaching specialty, and training professional skills to build the capacity of the staffs implementing policies, making policies go into the living practice, concurrently, they directly receive feedbacks from enterprises related to the performed policy in general, of which they include economic incentives 4.3.5 Solution of strengthening research and seeking new tool for designing the State’s economic incentives set for industrial zone The research, and the promulgation, of the State’s economic policy in general and economic incentive in particular for IZ, on one hand, need to use the conventionally basic economic tools of the policies of finance, money, trade, land and natural resources, wage and some others, and an other hand, need to research the maximum use, and role promotion, as well strong-points, of some new tools, of which the tools of stocks (shares, bonds,…) and the stock market role must be paid attention enough in the research and design of economic policies and economic incentives of the State for IZ, especially in terms of the capital attraction on the stock market for new projects or projects of expanding the factory scale, or of upgrading the capacity, an enterprise can be supported by the suitable type of the 23 State, to allow an enterprise issues its bond or share to attract the capital on the stock market This is the explicit, public and efficient way of the investment capital attraction from various sources in the society for enterprise, concurrently, helps to reduce the burden for the State budget because of the obligated support in some specific cases and the pressure derived from increasing the debit balance of the State’s preferential capital sources for enterprises, to keep the preferential capital for other projects 4.3.6 Solution of improving the feasibility, synchronization, consistency and flexibility of the State’s economic incentives set for industrial zone The design of economic incentives in this case must base on the assuredness that local factors such as the natural condition, geographic position, the present situation of socioeconomic development, potential, strong-point, as well as weak-point, limit, and development demand were carefully examined, to ensure the practical follow-up and feasibility of economic incentives performed in the next time In fact, in the past period, various economic incentives were implemented by the State, this shows the diversification of the economic incentives set However, the economic incentives performance in practice was not synchronized and discontinuous, not achieved the expected result Therefore, the determined requirement of the State’s economic incentives for IZ from today to the year 2025 shall acquire the highest level of feasibility, synchronizing, consistency, and flexibility of the State’s economic incentives set for IZ CONCLUSION The State’s economic incentive, typically the State’s economic incentive performance, is the new approach to the impact of the State’s policy tools in the regulation of the economy in general, and management of industrial zone in particular So few research reports of this topic were published up to date Therefore, this studies faced with many difficulties Even though, many issues and points of view should have been continuously researched and discussed With my own capability, effort, and the restrictive conditions allowed, the doctoral presented the basic issues of this topic, as follow: + The overview of industrial zone and issues appeared in the existing and developing process, challenges and requirements for the State management; building and issuing conception, role and effecting factors of the State’s economic incentive performance for industrial zone; 24 generalizing the overall of the practice and withdrawing lessons learned for Viet Nam + The thesis generalized and synthesized the main and prominent points of the present IZ development situation of Viet Nam, in which the existed problems of the present picture of industrial zones related to the State’s economic incentive were emerged; synthesized and cleared the present situation of the all economic incentives of the State; clearly analysed and evaluated the results achieved, limits, and mentioned issues for the State’s economic incentive for IZ in Viet Nam to the year 2025 Based on the analysis of the development context related to IZ in the next time, of which the conveniences and difficulties in the domestic, as well the conveniences and challenges out of the country, the thesis studied to determine some points of view, orientations, and proposed solutions of the State’s economic incentive performance for IZ from today to year 2025 in Viet Nam Besides, the thesis develops the theoretic basis, added the newly scientific approach from the view of politic economics for studying the State’s economic incentive for IZ to strengthen the activation, and the State’s effectiveness in the IZ management field, to contribute to the theory and to actualize the establishing function of the State in the development strategy of the Socialist Oriented Market Economy Proposed the solutions of performing the combined various economic incentives, of which they included the newly economic tools – stocks (share, bond), to create the newly economic incentives of the State for IZ in the next time In addition, the thesis studied and proposed many solutions of performing the economic incentives of the State for IZ from today to the year 2025, of which the solutions of, executing the law on IZ, finalizing the legal regulation system, establishing the consistently legislative framework for the State management operation of IZ, improving the institutional arrangements of industrial zone in short-term, establishing the national policy framework related to the State’s economic incentive performance for IZ, to create the preconditions of gradually forming a newly institutional environment in the correlation between the State and market are./ LIST OF RESEARCHES PUBLISHED BY THE AUTHOR RELATED TO THE THESIS Vu Ngoc Thanh (2014), The industrial developement over the last 10 years and some policy advices, ISSN: 1859-4565, Vol (3-2014), p 22-29 Vu Ngoc Thanh (2014), Some problems of the industrial zone development in Vietnam at the present and solutions, Economy and Management Review, ISSN: 1859-4565, Vol 10 (6-2014), p 46-49 Vu Ngoc Thanh (2015), The view of Vietnam Comunist Party on the industrial development in Vietnam, Economy and Management Review, ISSN: 1859-4565, Vol 15 (7-2015), p 15-18 Vu Ngoc Thanh (2017), The new points of view on the industrial development according to the Documment of the 12th National Congress of Vietnam Comunist Party, Economy and Management Review, ISSN: 1859-4565, Vol 21 (3-2017), p 17-21 Vu Ngoc Thanh (2017), Financial incentives of the State for industrial zones in Vietnam and some issues, Vietnam Trade and Industry Review, ISSN: 0866-7756, Vol 11 (10-2017), p 110-115 ... RELATED TO THE THESIS Vu Ngoc Thanh (2014), The industrial developement over the last 10 years and some policy advices, ISSN: 1859-4565, Vol (3-2014), p 22-29 Vu Ngoc Thanh (2014), Some problems of... Vu Ngoc Thanh (2015), The view of Vietnam Comunist Party on the industrial development in Vietnam, Economy and Management Review, ISSN: 1859-4565, Vol 15 (7-2015), p 15-18 Vu Ngoc Thanh (2017),... Comunist Party, Economy and Management Review, ISSN: 1859-4565, Vol 21 (3-2017), p 17-21 Vu Ngoc Thanh (2017), Financial incentives of the State for industrial zones in Vietnam and some issues, Vietnam