Phát huy lợi thế cạnh tranh thúc đẩy phát triển kinh tế thành phố đà nẵng đến năm 2030 tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING VIETNAM UNIVERSITY OF COMMERCE - LE BACH GIANG PROMOTING COMPETITIVE ADVANTAGE FOR ECONOMIC DEVELOPMENT IN DA NANG CITY TO 2030 Specialization major: Economic Management Code: 62.34.04.10 Doctoral Thesis Research Proposal on Economics Ha Noi, 2019 This research is conducted in Vietnam University of Commerce Supervisors: ASSOC PROF PHD HA VAN SU ASSOC PROF PHD NGUYEN TIEN DUNG Debation 1:………………………………………… ………………………………………… Debation 2:………………………………………… ………………………………………… Debation 3:………………………………………… ………………………………………… This thesis shall be under defense before the Thesis Examination Board at the university level, at the location: ……………………… …… ……………………………………………… At………, date… month ……year…… This thesis is available in: The National Library The Library of Vietnam University of Commerce INTRODUCTION Necessity of the research Each nation or locality has its own potentials, strengths, comparative advantages and competitive advantages that can be used to formulate and develop sectors, industries which high VAT products and competitive advantage to boost the prosperity and benefits for people, enterprises Promoting comparative advantage and competitive advantage to develop rapidly, effectively and sustainably is an objective and urgent matter Particularly, the promotion of competitive advantage for the economic growth of Da Nang City needs to be further studied, for: Theoretically: So far, the competitive advantage has been mentioned in the view of business mainly There have been few research that have been carried out in the proper manner on the territorial scale The Socio-economy development Planning Project mentioned in the Law on Planning 2017 only suggested about the study on comparative advantage among provinces, yet mentioned about competitive advantage of provinces What is provincial competitive advantage? What is the intention of promoting provincial competitive advantage? How to evaluate the efficiency of a locality at province level?, etc remain unclear Hence, the author would like to theoretically unravel the above issues Practically, Da Nang is among the few provinces that have the most rapid development in Vietnam In the course of developing, Da Nang is considered having more potential, superior strengths over other coastal provinces in central Vietnam How these strengths have been promoted and whether it is effective or not, though, have not been under appropriate research In the coming time, it is urgent that those strengths, advantages are promoted appropriately to make this city the real “the city worth living the most in Vietnam” in the context of globalization, the influence of the 4.0 industrial revolution and the economic integration With that context considered, the author has chosen the topic “Promoting Competitive Advantage, Economic Development in Da Nang City to 2030” as his Economic Management doctoral thesis topic Thereby contributing to clarifying theoretical issues, providing a practical scientific basis for Da Nang city, as well as planning policies to promote competitive advantages for the more efficient and sustainable economic development An overview of related studies 2.1 An overview of previous studies that are related to competitive advantage 2.1.1 Competitive advantage Typical studies on this issue include: Competitive advantage , M E The Competitive Advantage: Creating and Sustaining Superior Performance NY: Free Press, 1985 (Republished with a new introduction, 1998.); OECD Report (2008) – The OECD Investment Committee; Brault (2005) Competition law policy and practice of the French Republic; Medalla (2005), Competition Policy in East Asia; Nga, D.T (2012) Research on Competitive Advantage of Coffee Products on the Economic Organizations in Dak Lak; Nguyen Xuan Hiep's Ph.D thesis (2011) also assesses the competitive advantage of an industry (supermarket) in a locality (Ho Chi Minh City); Tran Si Cuong (2007) in the research paper Discussing competitive advantages; The doctoral dissertations of Nguyen Van Hoi (2016), Nguyen Van Thuy 2015), Tran Thi Anh Thu (2012) have all initially studied and clarified the theoretical issues of competitive advantages and competitiveness These studies have been carried out on a specific field, product, stage Their contribution to the theorization, clarification of the issues in current conditions are huge but not enough for the making of creative competitive advantage strategy for a specific locality 2.1.2 National competitive advantage Typical studies on this issue include: Porter (1990) argued that Competitive advantage is divided into many levels Porter has outlined the competitive advantage at the national level that can be applied to the regional, state and city levels, which means it is feasible to expand the concepts and research tools from the national level to the smaller level of the geographical area This theory has also expanded in the form of connection of larger countries and geographic regions The Report on competitive policy of nations in OECD (1992); P.Krugman (1994); Theory of comparative advantage of D.Ricardo; H-O1 model explains international trade; Tran Van Tung (2004) in the book of Economic Competition; Nguyen Thi Tue Anh (2011), journal on competitiveness The above studies have shown that the world's leading scientists see the same problem from different perspectives This is very normal for scholars and social science issues, suggesting that even controversial arguments are good for the development of science 2.1.3 Competitive advantage at the provincial level The typical studies on this issue include: M.Porter (1990) has mentioned the argument in his book, The Competitive Advantage of Nations, that a national competitive advantage can the same and apply it to regional, state and city levels; R.M.Smit in the study of the city of Rotterdam; Kotler, P., Jatusripitak, S., & Maesincee, S (1997) The Marketing of Nations: A Strategic Approach to Building National Wealth Free Press.; Vu Thanh Tu Anh (2008) in the Regional Development Policy in Vietnam; Thesis of Dr Nguyen The Vinh (2016) "Promoting comparative advantages to promote socio-economic development in Vinh Phuc"; Hoang Ngoc Phong (2016) in regional economic institution works in Vietnam; Tran Van Minh (2010) in the study Lesson on promoting competitive advantage in Da Nang city; Da Nang City Party Committee (2018) in the Proceedings of the Conference on Construction and Development of Da Nang City in the period of industrialization and modernization of the country; Provincial capacity index of Vietnam Chamber of Commerce and Industry 2.2 Overview of promoting competitive advantage for economic development Typical studies on this issue include: P.Koter (1985) in Marketing of Nations; J Robinson and D.Acemoglu (2013) in Why Why Nations Fail; M.Porter (1998) in the national competitive advantage; W.Easterly (2001) in the book "The search for etiology increases"; Vu Thanh Tu Anh (2005), in economic decentralization work in Vietnam from an institutional perspective; Nguyen Thi Tue Anh (2011) studied the factors that constitute competitive advantages; Some other studies mention policies in general such as policies to attract foreign investment, industrial park development policies, or the effectiveness of public administration; Da Nang City People's Committee (2018) in the report of Da Nang socio-economic development master plan to 2035; Department of Culture, Sports and Tourism of Da Nang City (2011) in the topic of scientific research on solutions to develop tourism human resources in the period of 2011-2015, with a vision to 2020; The Department of Science and Technology of Da Nang City (2012) in the scientific research project to identify knowledge workers is a factor that needs to be promoted in the process of economic development In the current economic development curricula, also mention the resources and motivation for economic growth But all that must be expressed firstly in terms of national policy, even the role of the national head That is more important than resources or countries with abundant resources 2.3 An overview of evaluation on competitive advantage promotion The typical studies on this issue are as follows: D.Acemoglu and J Robinson (2012) in the work of why nations fail; J.E.Stiglitz and S.Yusuf (1999) in the work of Investigating into East Asian countries' miracles; The National Report 2035, Ministry of Planning and Investment (2016) It can be seen that promoting competitive advantage will bring efficiency to many aspects of social life, especially, economic aspect A stable economy facilitates all aspects like society, environment, social equality ensuring the balance, efficient and harmonious development of that economy 2.4 The scientific values inherited and gaps that need to be filled by further studies 2.4.1 The inherited scientific values Competitive advantage in industry/product field has been studied and developed not only by domestic scholars but also internationally That helps explain how long countries have existed and how competitive they are, how the criteria measurement differs in some countries that are more prosperous compared to that of the others The theoretical issues of competitive advantage of specific industries can also be considered to be complete after being agreed widely in the scientific community Other theories about marketing, corporate governance also analyze in detail the competitive advantages of businesses, competitors, the methods of attack - defense against competitors, or, competitive strategies Therefore, the author is of the opinion that there is no need to further study the competitive advantage of the industry, products or the national competitiveness Provincial competitive advantages were initially formed based on analysis of comparative advantages of regions and provinces and analysis of national competitive advantages From those angles, the analysis was fairly intensive, with scientific arguments to meet a part leading to the analysis of provincial competitive advantage Policies aimed at promoting such advantages depending on specific situations but have diversified and met the scientific basis for promoting competitive advantage 2.4.2 The need of further studies The above review shows that there are some issues that are still being argued, some of which have not been thoroughly studied In the scope of this thesis, the author proposes some issues that have not been studied to facilitate further studies and to apply in practice as follows: Firstly, it has been theoretically and practically proven that the existence of national/state-provincial-city competitive advantage is objective However, the method of measuring and promoting those competitive advantages in order to support the economic development through the expression of policies and measures in socioeconomic achievements, specific researches and solutions have not been thoroughly studied Secondly, from the second factor above, there has been no research of building and proposing a set of evaluation indicators to determine the provincial competitive advantage as a premise to propose and develop policies to promote competitive advantage in the local context with those advantages Thirdly, competitive advantage has the traits of changeability and potential It may be a competitive advantage today but not anymore tomorrow It is necessary that the cycle and life cycle of competitive advantage in each stage be studied in detail (predictive nature) to be able to timely grasp competitive advantages at each specific stage and propose appropriate policies, creating sustainable and rapid economic development Fourthly, to promote the competitive advantage, it is necessary to build a synchronous and appropriate policy system, which must be a legal framework and a clear mechanism to build a dynamic system of enterprises and emerging industries for developed provinces/cities Subject, objectives and study missions * Subjects - Theories and practice of promoting competitive advantage to stimulate economic development of Da Nang and neighboring provinces such as Thua Thien Hue, Quang Nam and Quang Ngai in recent years * Objectives and study missions - Objectives: + The objective of the project is to systematize and build a theoretical scientific basis related to competitive advantages and promote the competitive advantages of the provincial level; clarify the current status of competitive advantages and promote competitive advantages to promote economic development in Da Nang city; thereby proposing orientations and solutions to promote competitive advantages for more efficient and sustainable economic development in this city to 2030 - Study missions: - Systematizing the basic theory of competitive advantages, promoting competitive advantages, factors affecting the promotion of competitive advantages and evaluating the effectiveness of promoting competitive advantages for economic development of provincial level in Vietnam - Studying and analyzing experiences to promote competitive advantages of some provinces in the country and internationally On that ground, gaining the practical experience for Da Nang to promote its competitive advantages to promote local economic development at the provincial level - Analyzing and determining competitive advantages and assessing the situation of promoting competitive advantages for economic development of Da Nang city in the period of 2010-2017 Identify the achievements - Point out strengths, shortcomings - Point out weaknesses and find out where the root of the problems are found in this situation - Orienting and proposing solutions to promote competitive advantages to promote economic development of Da Nang to adapt to the economic development policies of the Party and the State, with an international integration environment; The trend of market development and the current situation of Da Nang City's resources in the direction of higher efficiency, more sustainable in the period from 2020 to 2030 Scope of the thesis research * In terms of timing: Studying the current state of competitive advantage of Da Nang City in the period of 2010-2018; At the same time, proposing views, orientations and solutions to promote competitive advantages for economic development to 2030 * In terms of placement: Da Nang city In the process of studying this city's competitive advantage, when necessary, PhD student will expand to study some other localities such as Thua Thien Hue, Quang Nam and Quang Ngai to make comparison * In terms of contents: In terms of content: Do research both theoretically and practically on the current status and future of competitive advantage promotion for economic development in Da Nang City Determine the competitive advantage and place it in relation to comparative advantage; evaluate the effectiveness of Da Nang's competitive advantages; propose orientations and solutions to promote competitive advantages for more efficient and sustainable economic development to 2030 The terms of provincial level used in the thesis are understood in accordance with the provisions of Vietnamese law, ie provinces and cities directly under the central government are classified into provincial administrative units Provincial cities are not classified as provincial The central city of Da Nang should be considered a provincial level Research questions Based on the overview analysis as well as the studied issues, the thesis focuses on answering research questions as follows: - What are the nature of the criteria to evaluate the competitive advantages of provincial level? - The basic principles of promoting competitive advantage for economic development of provincial level - The basic competitive advantages of Danang city and the real situation of policies to promote competitive advantages for economic development of Da Nang city in the recent time - Orientations and solutions to promote competitive advantages for economic development of Danang City in the coming time Research methodology 6.1 Approaching method The author approached the research topic in the following main directions: Approaching from theory to practice; systematic approach; inter-regional interdisciplinary approach; approach according to the principle of cause – consequence 6.2 Data collection and processing To complete the research, the research student used the following main methods: 6.2.1 Secondary data collecting and processing method * Secondary data collecting method: Collected from multiple sources, including scientific topics, journals, books, statistical data, reports from state management agencies, results of surveys of other studies related to the competitive advantage and competitiveness of Da Nang city and neighboring provinces; and web portals of the Government, Ministry of Planning and Investment, and General Statistics Office; classified, read, selected, inherited research results of the works available from secondary data sources * Secondary data processing method: These data were verified by qualitative methods on accuracy, suitability and topicality After that, the research student compared and checked for consistency; the data must reflect analytical content with high accuracy and be clearly cited The search data was classified, organized into event sections, and selectively typed into sections related to the research topic; data files were stored in many folders of the computer The data was processed by document storage software, summarized in tables, graphs and drawings to serve as a basis for descriptive statistics, comparison, analysis and evaluation of the current situation of promoting the competitive advantage of Da Nang city Experience in promoting competitive advantages of some domestic and foreign provinces 6.2.2 Primary data collecting and processing method Primary data were collected through in-depth interview methods and questionnaire surveys The research student conducted expert interviews through face-to-face interviews to exploit information directly and in a highly practical manner * Primary data collecting method - In-depth interview with experts: + Subjects: Managers from department vice manager upwards of departments of tourism, natural resources and environment, investment and planning, investment promotion and support center, socio-economic development magazines from Hue, Quang Nam, Quang Ngai provinces and Da Nang city, as these provinces compete fiercely with Da Nang city in seaports, airports, shipping, logistics, tourism and FDI and talent attraction + Implementation method: The research student selected 20 experts and interviews directly at the expert's work place or indirectly via post + Contents: The research student interviewed scientists to clarify the issue of competitive advantage and promoting competitive advantages and conditions for promoting competitive advantages in a provincial level The content focuses on exploiting the following information: ++ Questions related to factors that constitute a competitive advantage for economic development of a provincial locality ++ Questions on assessing the level of competitive advantage of Da Nang city compared to neighboring provinces ++ Questions related to key industries and fields that Da Nang city can develop in the coming time with the available advantages ++ Questions related to basic management policies to promote the development of the above industries and fields + Time: April to June 2018 - Questionnaire survey: + Subjects: Interviewees include employees of provincial departments (because they are responsible for researching comparative advantages, competitive advantages, identifying key areas, building key products, and developing policies to promote comparative advantages, etc.) At the same time, the research student selected businesses and people for interviews to get more opinions about the reality of competitive advantage, to find out what businesses and people benefit from production and business development by taking advantage of the competitive advantages in Hue, Quang Nam and Quang Ngai provinces and Da Nang city + Implementation method: The research student contacted the survey subjects to confirm information, send and receive questionnaire via email and post + Contents: * The research student interviewed employees of Departments to clarify the current competitive advantage, the current status of policies issued by the Da Nang city government and the current situation of promoting competitive advantages in Da Nang city At the same time, the research student referred to the criteria to evaluate the competitive advantage and effectiveness of the provincial policies to promote the competitive advantage * The research student interviewed businesses and people to better understand the degree of right and wrong policies of promoting Da Nang city government's competitive advantage At the same time, the research student learned more about properly determining the competitive advantage of Da Nang city The questions were divided into groups: ++ Questions related to sociological factors: Occupation, workplace, etc ++ Questions related to the evaluation of signs to determine the local competitive advantage ++ Questions related to key products and sectors could fit into the province's advantages - Time: April to June 2018 - Results: The total number of questionnaires sent to the survey subjects was 300 and collected 265, of which 255 were valid, accounting for 85% (Valid questionnaires are ones with all questions answered) * Primary data processing method - In-depth interview with experts: All contents were meticulously and completely recorded, processed and analyzed according to qualitative and quantitative methods The results were collected per sets of views for each advantage and the signs of such advantage At the same time, individual thoughts to suggest policies to promote the province's economic development were also collected - Questionnaire survey: in primary data collection and processing, the research student used statistical and coding methods on Excel software to get quantified data 6.3 Specific research methods - System analysis method, SWOT analysis method, comparison method, grading method, statistical analysis method, GIS method, method of using tables, graphs and drawings New contributions - In terms of academics and reasoning: The thesis clarifies the basic theoretical issues of competitive advantages, promoting competitive advantages, factors affecting the promotion of competitive advantages and efficiency evaluation of promoting the 10 - Advantage: to be more advantageous than someone else in some certain aspects, the advantage means having beneficial factors or conditions that are more beneficial than other people’s and other parties Therefore, when it comes to the formation of advantage, there need to be comparative subject(s) which are one or more criteria constituting an advantage According to the Wikipedia dictionary, competitive advantage means owning unique values that can be used to "seize opportunities" to make a profitable business When it comes to competitive advantage, it is about the advantage that a business, a country already has and can achieve, compared to its competitors Competitive advantage is a concept that is both micro (for business, product) and macro (at the national level) [24], [25] According to the PhD student: "The provincial competitive advantage is the superiority of a province, city under the central government (over) another central subordinate city, province in competition for trade, investment, technology, tourists and mobilize talented people to develop the economy and thus promote good competitive advantage will bring higher development efficiency Thereby helping the provincial units to form a number of key areas and products for economic development to be more efficient and more sustainable 1.1.1.2 Factors that constitute the competitive advantage at the provincial level According to M Porter, a country has the following factors that determine its competitive advantage and that is also applicable for a province These factors are both the basis of forming a competitive advantage and the inclusion factors for the existence and development of a province's competitive advantage: Input production factors and the ability to connect with neighboring localities; Corporate strategy, Province’s internal structure and competition; Demand conditions in province and neighboring localities; Supporting and related industries Two more variables, objective events and the government, can affect a province's system in very important ways, and they are indispensable for the completion of this theory The government uses its \instruments as tangible hands to intervene in all factors if it is deemed necessary and at the same time to distort or facilitate advantageous industries 1.1.1.3 Criteria for evaluating provincial localities’ competitive advantage In order to determine the factors that constitute the local competitive advantage at the provincial level, it is necessary to base on the theoretical framework of the factors that make up the advantage and use the scale-grading method to determine the level of competitive advantage Based on the constituent elements of advantages, it is possible to identify some of the provincial competitive advantages that may exist, including: Criteria for the evaluation of provincial level competitive advantage 11 No Criteria At the provincial level Dominan Less t Advantag Advantageou Unadvantageou advantag e s s e Geoeconomic location Infrastructure Natural and humanity resources Economic potential Human resource Science and technology potential Authority Source: Compiled by the Researcher By identifying the provincial competitive advantages through measuring and evaluating those competitive advantages, then promoting it to form highly competitive industries in the province, thereby, bringing a competitive advantage for the industry in particular and for the province in general Industries focus on the sectors influenced by the provincial competitive advantages The indicators of provincial competitive advantage promotion Competing with other provinces Factors Industry Agriculture, Competitive Forestry and industries fishery Tourism, services Dominant advantage Highlight advantage Little or no advantage No advantage or less advantageous than other subjects 2… 2… 2… Source: Compiled by the Researcher In order to evaluate provincial competitive advantage, it is necessary to set scales to measure the identified indicators The measurement shall be made on the basis of the above indicators, depending on the evaluation criteria 12 Factors of provincial competitive advantage and development orientation Các yếu tố lợi Role in the Development orientations Advantageous factors development Trade assurance; access to trade 1- Geoecomic location Important, decisive markets Ensure the efficient operation – Infrastructure Important, decisive Benefit investors, tourists and citizen Ensure the ability to develop a 3- Natural and humanity number of industries, especially Supportive resources tourism, services and industry Ensure the capital source and core 4- Economic potential Supportive enterprises Attracting mass production and hi5- Human resource Decisive tech industries Application of science and 6- Technical and science technology in production and Decisive potential administration Ensure a legal environment Institutions 7- Authority The dynamics and enthusiasm of Decisive leaders Source: Compiled by the researcher 1.1.2 The role of competitive advantage in promoting local economic development at the provincial level - Create a basis to develop key economic sectors - Establishing economic development links with other localities - Contributing to improving socio-economic efficiency in using local resources 1.2 Promoting competitive advantages for promoting local economic development at the provincial level 1.2.1 The subjects of promoting competitive advantages of the provincial level - Local governments of the provincial level: - Enterprises present in the area - Besides the two subjects mentioned above, the people have the responsibility to respond and support the policy of promoting competitive advantages 1.2.2 Methods and principles to promote provincial competitive advantages for promoting economic development at the provincial level 1.2.2.1 Methods of determining local competitive advantages at provincial level 13 In the doctoral thesis, research student combines the marking method with the comparison method 1.2.2.2 Principles to promote provincial competitive advantage - Firstly, the promotion must comply with directions, policies and national economic development policies strategies - Secondly, promoting competitive advantages must come from effective requirements, fully and accurately identification of all current conditions that a locality may have (taking into account both current and future factors) - Thirdly, promoting competitive advantages must comply with market principles and international economic integration 1.2.3 The implication and content of promoting competitive advantages to improve economic development of the provincial level 1.2.3.1 The implication of the comparative advantage promotion First of all, research student will clarify the nature of promoting competitive advantages for economic development of the provincial level According to the research student, the basic meaning of promoting the competitive advantages is turning the competitive advantages into factors that are conducive to rapid economic development, with superior efficiency compared to other localities being competitors in trade, investment attraction, talent attraction In other words, the competitive advantages will be defined clearly and then promoted their values to develop economic more effectively and sustainably 1.2.3.2 The content of promoting comparative advantages at the provincial level The promotion of competitive advantage has the following main contents: - Establishing development planning on the basis of accurate evaluation of comparative advantages to form a competitive advantage to promote economic development (development planning policy) - Establishing policies to encourage investment to create competitive advantages 1.2.4 Affecting factors and conditions of promoting competitive advantages to promote local economic development at the provincial level 1.2.4.1 Factors affect promoting competitive advantages a) External factors of a provincial level locality b) Internal factors of a provincial level locality 1.2.4.2 Conditions necessary for promoting competitive advantages a) The government has local governance capacity b) On the basis of understanding the competitive advantages, the government have to know how to promote the competitive advantages c) The government should have a business development plan and attract 14 strategic investors to take advantage of the competitive advantages for business production development towards increasing profits 1.2.5 Indicators reflect economic development and the role of competitive advantage in promoting economic development at the provincial level - Economic growth - Economic restructuring - GRDP per capita - Effective use of investment capital (ICOR coefficient) - The increase in labor productivity 1.3 Practical experience from national, international cases in promoting the competitive advantage to promote Da Nang economic development at the provincial level 1.3.1 Domestical and international experience The thesis focuses on studying experiences of some domestic and international provinces which have similar advantages with Da Nang such as Binh Duong, Bac Ninh, Emilia - Romagna region (Italy), Shanghai City (China) The main experiences considered include: developing, structural shifting from inefficient agricultural land areas to industrial zones, mechanisms and policies "Warmly welcome" to call for investment and encouragement of high quality human resource 1.3.2 Practical experience that can be useful for the case of Da Nang City From the study of the above cases, some lessons can be drawn for promoting better competitive advantages for economic development of Da Nang City Particularly: Must clearly determine what the competitive advantage of the city is; it is necessary to build a strong enough government, which is both knowledgeable, visionary, capable of detecting and having solutions to promote the competitive advantage in a wise, appropriate and timely manner; develop the infrastructure to meet development needs; Facilitating Human resource to turn competitive advantage into practical economic value Chapter CURRENT SITUATION OF COMPETITIVE ADVANTAGE AND PROMOTION OF COMPETITIVE ADVANTAGE FOR ECONOMIC DEVELOPMENT OF DANANG CITY TODAY 2.1 Current situation of socio-economic development of Da Nang City 2.1.1 Overview of natural, economic and social conditions of Da Nang City 2.1.2 Current situation of economic growth and development of Da Nang City From major policies and guidelines to develop industries and fields, the achieved results of promoting competitive advantage for economic development are as follows: Current situation of economic development of Da Nang in the period 15 of 2000-2018 Items GRDP growth rate/year GRDP/person, price 2010 Labor productivity, price 2010 VAT/ production value, price 2010 Tourism revenue in GRDP Openness of the economy Proportion of high-tech sector in GRDP Average increase/ year, % Unit 2000 2010 2018 % Million Vnd Million Vnd 9,88 8,7 7,86 6,1 35,3 55,7 25,7 77,2 108,0 % 3.560 48,5 47,7 % % 2,1 15,6 3,4 40,6 6,1 33,9 - % 6,7 19,3 24,2 - Source: Compiled from [11] 2.1.3 Issues for promoting competitive advantages for economic growth and development of Da Nang City - About local governance capacity and policy - About the development of branches and fields: For trade and services; industry, agriculture, fisheries; development of infrastructure system 2.2 Current situation of competitive advantages for economic development of Da Nang City 2.2.1 Current situation of competitive advantages of Da Nang city From the above analysis, generalize the competitive advantages of Da Nang city: Summarize the situation of competitive advantages and promote competitive advantages Competitive advantages Promotion of competitive advantages - Attract tourists, especially international tourists Special service on travel - Contribute to GRDP - Services have strongly developed - Attract large and high-tech projects from Economic geographic location both foreign and major economic groups of Vietnam Infrastructure - Develop logistic and sea transport Human Resources - Train at undergraduate and postgraduate degrees 16 Institutions, running the provincial economy - Vocational training - Investment environment - Business environment Source: compiled by graduate student 2.2.2 The impact of competitive advantages on the economic development of Da Nang City The above competitive advantages have contributed to promoting the economic development of Da Nang City in the past period, it has become a model for economic development for other localities Like Vietnam's economy, however, the development potential of Da Nang is considered to be very promising but to be able to achieve more rapid and sustainable growth, it is necessary to improve some fields, promote competitive advantages (1) For tourism and service development Trade is a field with a fast and comprehensive development step, initially taking on the role of a center for wholesale distribution for provinces and cities in the Central and Central Highlands Business network is evenly and widely distributed A number of shopping centers and supermarkets were formed, the market system was re-planned and newly built to meet the increasing shopping needs of the people, such as such as Hoa Cuong wholesale market, Dong Da market, Hoa Khanh market, Tuy Loan market … The service sector accounts for 60.6% of the GRDP structure of Da Nang City, taking more than 64.1% of workers working in the economy In the past 20 years, the GRDP growth rate of the service sector has averaged 9.76% per year, of which the period of 2006-2010, we recorded the sector's breakthrough with an average growth rate of 14.9%/year, the period of 2001 - 2005 and 2011 - 2015 had a lower growth rate, the order was 8.9%/year and 7.4%/year respectively For the tourism industry, it is identified as a key economic sector of Da Nang City with a fairly rapid development, both in terms of development targets and complete infrastructure investment From 205 thousand turns in 1997, it became over 4.3 million tourists in 2016, the periods of 2001 - 2005 and 2006 - 2010 had the average increase of tourists from 13-15%/year then in the period of 2011-2015, it was over 20%/year In 2016 alone, the overall contribution of tourism to GRDP Da Nang reached 23.72% (16,544 billion VND), 1.7 times higher than the proportion of corresponding contributions in the national economic structure (14 % of GDP), times higher than other provinces with developed tourism sector such as Quang Ninh (10.9%), Ha Noi (10%) However, the total expenditure of tourists is low - only about 0.9 million VND/person/day for domestic tourists and 1.5 million VND/person/day for international tourists, the main services are room rental, food and travel, services such as sightseeing, shopping and entertainment have low contribution value Besides, the city tourism activities in recent years also face the situation of insecurity, due to 17 the impact of immigration process and some unhealthy business establishments Another noteworthy service sector in Da Nang is the warehouse transport service industry, one of the main branches of logistics activities, with the productivity in 2016 reaching over 180 million VND/labor, nearly 2.5 times higher than the productivity level achieved in the 2006-2010 period with a total volume of rotated goods calculated for port operations, an average increase of 12.1% per year in the period of 2011-2015 (in which container goods increase by an average of 20%/year in the same period), if calculating export turnover, Da Nang city is ranked No in the central key economic region and No in the Central (after Thanh Hoa) At present, the sector's value contributes about 7.7% of the city's GRDP structure and will tend to increase when the first-class logistics center of the central key economic region is located in Da Nang built and completed (2) For industry It is one of the key industries of the city and always has high production value every year In which, processing industry accounts for a high proportion (over 90%) of the whole industry's production value Industry is also a pioneer in the process of arrangement and equitization Therefore, the state-owned industry managed by the locality has gradually reduced both in size and structure in production value, which is a new point and dare to innovate in Da Nang The processing industry has changed in the direction of reducing the proportion of food and beverage processing industry; wood and forest product processing; footwear industry and non-metallic mineral products industry Chemical and plastic rubber sub-sectors increased and decreased unevenly The sub-sectors tend to increase the proportion in the structure of industrial production value is the garment industry, mechanical - metallurgical industry and production of electric-electronic machinery and equipment The proportion of subsectors for producing beds, wardrobes, tables, chairs (wood products for export) and other industries (children's toys, luxury candles ) tend to increase gradually (3) For investment attraction In the past years, FDI enterprises have contributed 11.83% of the total value of the city economy, the industrial production value of FDI sector accounted for 2025% of the total industrial production value, export proportion accounts for more than 50% of the total export value of the City To date, the city has more than 44,000 employees working in FDI enterprises FDI enterprises have really contributed to changing the appearance of Da Nang City Da Nang continues to prioritize attracting FDI capital into information technology, high-tech industry and supporting industries, high-quality service industries, especially trade, tourism, logistics, health and education, high-tech agricultural applications The city is interested in investing by multinational corporations, investors with big brands and financial capability and advanced technology from Japan, Korea, 18 United States, Australia, EU (Germany, English, French, Italian) and ASEAN countries (Singapore, Malaysia, Thailand); small and medium-sized enterprises in the field of high-tech industry, high-tech supporting industries and information technology of Japan, Korea, Germany, the UK and the United States Da Nang has been investing in completing the infrastructure system, striving to build a favorable and open business investment environment, outstanding investment support policies to welcome a new wave of investment The main highlight is the City's focus on improving the infrastructure of the High-Tech Park and speeding up the construction of the Information Technology Park to serve as a foundation to attract investors to "smoke-free industries" These are also two key industrial parks located in the direction of Da Nang's selective investment attraction (4) For promoting human resources The city government has also focused on improving the quality of the local workforce through supporting policies of vocational training to attract universities, colleges and vocational schools, in Da Nang province, there are 25 universities and colleges; 19 vocational schools, 59 vocational training centers carrying out the training majors in the fields of science, technology, information technology, architecture, economics, business administration, foreign languages Da Nang is also place where many scientific research organizations and more than 40 scientific and technological organizations belonging to universities and enterprises are present in the locality (5) For promotion of state management Da Nang City continuously tops the administrative reform index (PAR Index), provincial competitiveness index (PCI Index), public administration governance index (PAPI Index), index of readiness for IT application (ICT Index) When selecting localities to expand business, investors often consider many factors including business opportunities, geographical location, infrastructure, market size, cost, quality of labor, in which the quality of local administration is one of the key factors 2.3 CURRENT SITUATION OF PROMOTING COMPETITIVE ADVANTAGE FOR ECONOMIC DEVELOPMENT OF DANANG CITY 2.3.1 Current situation of awareness of competitive advantages of Da Nang City Awareness of the city's competitive advantages must originate from policies to direct the promotion of these advantages into socio-economic development achievements - In terms of concretizing laws and policies of the state - About awareness of businesses - About awareness of visitors and people 2.3.2 Policies to promote competitive advantages for economic 19 development of Da Nang city (1) Economic policies First of all, we must mention investment policy - Resolution No 33-NQ/TW dated 16 October 2003 of the Politburo on building and developing Da Nang City in the period of national industrialization and modernization; conclusion No 75/KL-TW dated 12 November 2013 of the Party Central Committee on continuing to promote the implementation of Politburo's Resolution No 33NQ/TW on building and developing the Da Nang City in the period of industrialization and modernization of the country, Resolution No 43-NQ/TW of the Politburo dated 24 January 2019 on the construction and development of Da Nang City to 2030, vision of 2045 Effectively implement the Government's Resolution No 19/NQ-CP dated 12 March 2015 on the implementation of key solutions to continue improving the business investment environment to improve national competitiveness in 2016- 2017 in the city and Resolution No 35/NQ-CP dated 16 May 2016 on enterprise support and development by 2020 Implement the commitment to simplify 30 administrative procedures at departments, agencies and sectors, in which, focus on IT application, shorten, eliminate unnecessary administrative procedures or parallely handle to shorten the processing time, especially in the fields of investment, land, construction, environment, tax, customs, etc to create maximum favorable conditions for enterprises in production and business activities Policy to attract foreign direct investment, prioritize the attraction of investment capital in the field of information technology, biotechnology, automation and mechatronics, new materials technology, fields on the list of investment attraction in high-tech parks; environmentally friendly industries, supporting industries in the field of mechanical engineering, high quality service industries, especially trade, tourism, logistics, health and education Focus on attracting investment in key markets and partners such as multinational corporations from Japan, Korea, the United States, Europe (Germany, England, and France) and ASEAN countries, etc Implement well the state management regulations for investment promotion activities Policy on education and health sector to improve the quality of human resources in accordance with Decision No 11/2016/QD-UBND on regulating a number of policies to encourage socialization of activities in the field of education, vocational training, health, culture, sports, environment, judicial expertise; PPP investment and infrastructure in accordance with Decision No 18/2016/QD-UBND on Investment Regulations in the form of public-private partnerships (PPP) and strengthening bidding for land use projects in accordance with the Decision No 3926/QD-UBND on promulgating some contents guiding the selection of investors to implement investment projects using land to mobilize resources in society 20 (2) Human resource development policies The city implements the policy of promoting the development of high quality human resources, especially science and technology personnel and managers; developing human resources for the non-state sector, especially the team of entrepreneurs; developing vocational training and attaching training results to the needs of enterprises in terms of quantity, quality and industry structure, qualifications Implement Project 922 working at administrative agencies, policies are also eased As before, the city did not allow students to go to the doctoral level when there was no need, even though they were granted scholarships Da Nang City's Party Committee then allowed unnecessary branches to go to school (3) Infrastructure development policies One of the clearest evidences in promoting the city's competitive advantage is the development of a synchronous and modern infrastructure system such as a policy of "changing land for infrastructure; policies of upgrading and developing Da Nang international airport; The policy of developing Tien Sa Port is a national general seaport with a huge amount of cargo (4) Tourism development policies - Tourism development policies aim at a common goal of building Da Nang into a regional and international tourism city, a "green", attractive, safe, clean, friendly, and civilized tourist destination Da Nang tourism development really becomes a key economic sector of the city, it contributes positively to economic growth, create more jobs for society and spread to many other economic sectors to develop together - Da Nang City aims to become the leading tourism center for ocean liner tourism, sea resort tourism, public tourism (MICE), golf tourism, tourism combined with high quality medical examination and treatment, cultural tourism and marine cuisine of the country and region; develop specific and attractive tourism products in accordance with market demand and local cultural identities; tourism products and services, river travel, eco-tourism and shopping tourism (5) Policies to build and develop leadership teams Da Nang City has innovative management measures, it demonstrates the role of the head, although in some aspects, it can be considered "breaking the fence" But the measures that Da Nang has been applying are aimed at a model of urban government, it manages in a unified manner throughout the City, focuses on advisory agencies and administrative agencies together, the supervisory body is the People's Council who has worked with its high responsibility for ensuring the rights of the people and the business community Or policies to attract talents of Da Nang by granting land, apartment buildings, bonuses, opportunities are bringing high efficiency compared to some other cities 2.4 General assessment of current situation of promoting the 21 competitive advantage for economic growth in Da Nang city 2.4.1 Successes 2.4.2 Limitations 2.4.3 Causes of limitations Chapter VIEWPOINTS, ORIENTATIONS AND SOLUTIONS TO PROMOTE COMPETITIVE ADVANTAGES FOR ECONOMIC DEVELOPMENT OF DA NANG CITY TO 2030 3.1 Viewpoints and orientations to promote competitive advantages for economic development in Da Nang City to 2030 3.1.1 Forecast of economic development context of Da Nang City to 2030 *International context *National context 3.1.2 Viewpoints and orientations to promote competitive advantages for economic development of Da Nang City to 2030 a) Viewpoints on promoting competitive advantages b) To determine the competitive advantages for economic development to 2030 c) Objectives of promoting competitive advantages to promote economic development - General development objectives - Detail objectives 3.1.3 Orienting to promote competitive advantages for economic development of Da Nang city to 2030 - Orienting to promote competitive advantages for industrial development - Orienting to promote competitive advantages for services development - Orienting to promote competitive advantages for agricultural development 3.2 Solution to promote competitive advantages for economic development of Da Nang City to 2030 3.2.1 General solution 3.2.1.1 Determine the competitive advantages of Danang in the coming time 3.2.1.2 Improve development management effectiveness 3.2.2 Specific solution 3.2.2.1 Da Nang government develops, promulgates and organizes uncompromising implementation of the strategy to promote competitive advantages 3.2.2.2 Attract and train high-quality human resources to promote competitive advantage for economic development 3.3 Some recommendations 22 3.3.1 Propose to the Government and ministries, departments and central branches 3.3.2 Propose to localities 3.2.2.3 Raising capital for investment and development to promote the competitive advantages CONCLUSION AND IMPLICATIONS FOR FURTHER RESEARCH Conclusion Identifying the competitive advantages and promoting the competitive advantages for social-economic development of a provincial locality or a nation are the urgent requirement in the context of the strong industrial revolution 4.0 Identifying the competitive advantages and promoting the competitive advantages for social-economic development of Da Nang city are based on firm theoretical and practical bases, and feasible It is necessary to have a long-term, comprehensive and consistent orientation for the development of Da Nang city to 2030, based on the promotion of the current competitive advantages of Da Nang city Resolution 43 of the Politburo stated that: The goal to 2030 is to develop Da Nang city to become one of the major socio-economic centers of the country and Southeast Asia, the center of commerce, finance, information technology, supporting industries, international marine cities, etc., the core of the urban chain and the growth pole of the Central and Central Highlands key economic region Stemming from the requirements of practice, the thesis "promoting competitive advantage for economic development of Da Nang City to 2030" partly solved the above urgent requirements This is a necessary research orientation that is theoretically and practically significant for the socio-economic development of Da Nang city in the future The thesis has focused on research and achieved some results as follows: The thesis systematized theoretical issues of competitive advantage and promote competitive advantage, identifies the factors that influence the promotion of the competitive advantages and constituent elements of provincial competitive advantages for promotion The thesis analyzed, evaluated and fully reflected the current situation of key contents related to the competitive advantages, the promotion of the competitive advantages, and the deployment of government management policies of Da Nang city government; thereby evaluating the successes and limitations of state management for the promotion of the competitive advantages The thesis proposed overall solutions and specific solutions for the effective and sustainable promotion of the competitive advantages to develop key economic sectors of Da Nang city to 2030 The thesis has partly satisfied the requirements of promoting the competitive advantage of Da Nang city However, the thesis cannot avoid certain shortcomings or some research issues in the thesis need to continue to research and complete 23 Implications for further research It is necessary to develop a city development plan for at least 50 years In the study of development planning, it is necessary to review the competitive advantages to 2030 and 2050 to make accurate decisions on the promotion of the competitive advantages to promote the economic development in the context of the change in international relations and the world market, the continuous industrial revolution 4.0, globalization change as well as change in international cooperation Provinces in the Central Coast region need to have a plan to link and coordinate with each other for the promotion of the competitive advantages to develop together effectively without overlapping or detrimental to the development process of each locality With the successes and limitations of the thesis, the research student desires to receive the sharing and sympathy of scientists, readers and looks forward to receiving contributions so that the research student may complete the thesis mentioned above ***** LIST OF PUBLISHED SCIENTIFIC WORKS OF THE AUTHOR RELATED TO THE THESIS'S CONTENT Le Bach Giang (2018), "Promoting the competitive advantage of Da Nang City in the near future", Journal of Economics and Forecasting in September 2018 Le Bach Giang (2018), "Some solutions to promote the competitive advantage of Da Nang City", Journal of trade science, University of Commerce in October 2018) Le Bach Giang (2018), "Developing criteria for determining the provincial competitive advantage in Vietnam", Industry and Trade Magazine in October 2018 Le Bach Giang (2016), "Solutions to improve competitiveness in information service provision of Vietnamese telecommunications companies", Industry and Trade Magazine in June 2016 ... of the city of Rotterdam; Kotler, P., Jatusripitak, S., & Maesincee, S (1997) The Marketing of Nations: A Strategic Approach to Building National Wealth Free Press.; Vu Thanh Tu Anh (2008) in the... "The search for etiology increases"; Vu Thanh Tu Anh (2005), in economic decentralization work in Vietnam from an institutional perspective; Nguyen Thi Tue Anh (2011) studied the factors that constitute... TO 2030 3.1 Viewpoints and orientations to promote competitive advantages for economic development in Da Nang City to 2030 3.1.1 Forecast of economic development context of Da Nang City to 2030