The thesis aims to build a theoretical and practical basis for mountainous trade development policy in the North Central region in the period of 2010 - 2017. Since then, propose solutions to complete the trade development policy in mountainous areas. North Central region period 2019 - 2025 and orientation to 2030
Trang 11. Rationale of the thesis
North Central Region includes of 6 provinces, which are: Thanh Hoa, Nghe An,
Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue. This region not only locates next to the Northern key economic zone and the Central key economic zone but also
on both the North – South arterial road transport and rail transport, with long and narrow area, its East side borders with sea, its Wesst side borders with Laos
Policies on trade development in mountainous areas of the State as well as local authorities in the North Central mountainous provinces has not made use of all potentials, advantages such as: cleft sedge, cement, rubber of Thanh Hoa, tea, orange
of Vinh City, sugar, ordianry rice, wood, handicraft of Nghe An; Ore, iron and steel, confection of Ha Tinh; fertilizer, resin, rubber of Quang Binh, pepper, coffee of Quang Tri; textiles, handicraft of Thua Thien Hue.
Policies have not encouraged the development comprehensively in terms of the North Central trade infrastructure. In fact, in the North Central mountainous area, there are many local markets, whereas there are not many other kinds of retail business such as supermarket, trade center, retail stores series, limitedline store to achieve the goal of Project on planning of trade development in the North Central provinces.
Due to that fact, it is necessary to present scientific basis to formulate the policy
on trade development for the North Central mountainous area. Evaluating, finding causes of the current situation of trade development policy for this mountainous area helps to propose solutions and recommendations to adjust and maximize the efficiency of policies on trade development in the North Central mountainous area as well as the value of national mountainous areas Therefore, PhD candidate has decided to choose and study the subject “The policy on trade development for the
North Central mountainous area” The subject has practical meaning in both
theretical basis and practical basis.
2. Objective and mission of the thesis
* Objective of the thesis
The thesis aims to build a theoretical and practical basis for mountainous trade development policy in the North Central region in the period of 2010 2017. Since then, propose solutions to complete the trade development policy in mountainous areas. North Central region period 2019 2025 and orientation to 2030
* Mission of the thesis
Trang 2 To systemize and develop theoretical basis related to trade development policy for mountainous area.
To analyse and evaluate the real situation of trade development policies for the North Central mountainous area; to find out progress, limitations and causes.
To propose solutions, recommendations to complete trade development policy for the North Central mountainous area in the coming time.
3. Object and scope of research
Object of the thesis : The research object of the thesis is the trade development
policy in mountainous areas of the North Central region, including objectives, content, implementation status, results of the policy of mountainous trade development in the BTB region
Scope of the thesis:
+ As for spatial dimension: The mountainous region of the 6 provinces of Bac
Trung Bo province based on the summary and statistics of the thesis according to the Decision 964/QDTTg 2015 of the Prime Minister in 2015 and the geographical position, the North Central region has 40 mountainous district
+ As for time dimension: the thesis aims at researching the real situation of
the policy trade development for the North Central mountainous area in 2010 2017 period, proposing solutions and recommendations for policy on trade development in mountainous areas by 2025 and orientaitons towards 2030
+ As for content: The thesis studies theoretical and practical issues on trade
development policies in mountainous areas in the North Central region, focusing mainly on the content of 8 policies
Trang 3 Interview method: Interviewees are: (1) Managers of Domestic Market Department, Import Export Department; (2) Managers of 6 North Central provinces; (3) Specialists of Universities and Institutes.
* Secondary data collection method: Data source includes documents related to
research area which were published through books, journals, scientific conferences, research reports by scientists, institutes, universities, annual reports of Ministry of Industry and Trade, Ministry of Planning and Investment, Ministry of Finance, Association of Enterprises, 6 Departments of Industry and Trade, Department of Planning and Investment, annual abstracts of statistics of 6 North Central mountainous provinces.
4.2. Data processing method
Method of analysis, comparison: Comparison in analysis is contrasting criteria,
economic phenomena which were evaluated that have same content, characteristic to identify the trend, level of fluctuation of criteria.
Method of point: This method is applied to measure the evaluation of effect of
trade development in mountainous area to enterprises in the North Central mountainous area. Distance scale was used, specifically the Likert scale 3 – 5 point, based on specific criteria.
5. Achievements of the thesis
The thesis has codified a number of theories about mountainous trade development, policies, trade policies, trade development policies. Thereby creating a theoretical framework on mountainous trade development policy
The dissertation analyzes the current situation of mountainous trade development policies from 2007 up to now, assesses the achievements, limitations and shortcomings and the causes of successes and limitations, to improve the trade policy of mountainous areas in the North Central region, establishing a practical basis for proposals to improve solutions up to 2025
Chapter 1 THEORETICAL BASIS ON THE POLICY ON TRADE DEVELOPMENT IN
MOUNTAINOUS AREAS 1.1. Trade development in mountainous areas
1.1.1. Definitions and characteristics of trade development in mountainous areas
1.1.1.1. Definitions and classification of trade
Trade is the synthesis of the phenomena, activities and economic relations
Trang 4associated and arising with the exchange of goods and services for the purpose of profit In particular, commercial activities include: goods trading, service provision, investment, trade promotion and other lucrative activities.
Trade is the synthesis of the phenomena, activities and economic relations associated and arising with the exchange of goods and services for the purpose of profit. In particular, trade activities include: goods sale and purchase, service provision, investment, trade promotion and other lucrative activities.
1.1.1.2. Definition and characteristics of trade in mountainous areas
Definition of mountainous areas
From the definition of trade, we can give the definition of trade in mountainous areas based on the scope of trading activities Trade in mountainous areas is understood to be a synthesis of trading activities, including: goods sale and purchase, service provision, investment, trade promotion and other lucrative activities in mountainous areas for profit purposes.
1.1.1.3. Definition of trade development in mountainous areas
Trade development in mountainous areas is a process of expanding the scale, accelerating the growth rate in combination with enhancing the efficiency and quality of trading activities in the region to be appropriate with the socioeconomic conditions of localities in mountainous areas in a specific period of time.
1.1.2. Approach method and content of trade development in mountainous areas
1.1.2.1. Approach method of trade development in mountainous areas
There are basic approach methods of trade development in mountainous areas
such as:
Approaching trade development in mountainous areas in the width: the scale of the growth of total transport of goods and service; the scale and speed of import export turnover; the volume of mountainous market; the quantity and scale of enterprises in mountainous market; mountainous infrastructure
Approaching trade development in mountainous areas in the depth: the improvement in productivity; the quality and value added in association with trading activities in mountainous areas; shift in mountainous trading structure.
Approaching trade development in mountainous areas in both the width and depth: The quality of the growth of trade in mountainous areas; the efficiency of mountainous trading sources.
Trang 5In the developing process of trade in mountainous areas, the scale and quality of trade growth in mountainous areas is a fundamental content of that development. The contents are: The growth of total transport of retail sale in mountainous areas; Number and size of business subjects in mountainous areas; Import and export turnover of goods and services in mountainous areas; improving the quality of growth
of trade in mountainous areas; creating more jobs and raising incomes and human resources in mountainous areas
1.1.3. Role of trade development in mountainous areas
Firstly, trade development in mountainous areas not only plays an important role
in economic development generally but also the factor to boost growth and economic development in mountainous areas.
Types of policy documents in Vietnam recently: Decree, Resolution, Decision, Directive / Official Letter, Circular.
In this thesis, the author has approached trade policy in line with the viewpoint
of the State manager Le Danh Vinh (2005): “Trade policy is the system of viewpoints, standards, institutions, solutions, means used by the State for effect in order to adjust domestic and international trading activities and achieve socio economic development objective in each specific period. Basically, Trade policy is a part of the State economic policy, it has closeknit connection with national socio economic development”.
1.2.1.2. Definition and classification of the policy on trade development in mountainous areas
Trang 6The policy on trade development in mountainous areas is the part of National trade program including the whole of guidelines, mechanism, plans, solutions of the State and Government as the base for environment construction for trading activities
in mountainous areas to develop in both the width and depth in a specific period of time.
b) Classification of the policy on trade development in mountainous areas
On the base of the formulation of the policy, the policy on trade development in mountainous areas can be classified into policies:
Policy on commodity development: Forbidden business commodity; Conditional business commodity; Free business commodity.
Policy on market development: development of urban market in mountainous areas, rural markets in mountainous areas; border markets; preferential markets and non preferential markets.
Policy on the development of business subjects in the market: development of FDI enterprises; domestic enterprises; small and medium sized enterprises.
1.2.2. Objectives, principle and role of the policy on trade development in mountainous areas
1.2.2.1. Objectives of the policy on trade development in mountainous areas
Objectives of the policy on trade development in mountainous areas is the ending, expected result achieved in a specific period thanks for solving by policies in commodities, services exchange areas.
Objectives of the policy on trade development in mountainous areas have many types depending on time, which are long term objectives, short term objectives and medium term objectives; depending on effect scale which are general objectives and partial objectives
1.2.2.2 The principles and process of implementing the policy on trade development in mountainous areas
Main principles:
+ Policy on trade development in mountainous areas must be appropriate with the Guideline, viewpoints of the Party and Government about socio economic development.
+ Policy on trade development in mountainous areas must be appropriate with national law, customs and routines of international trade
Trang 7+ Policy on trade development in mountainous areas must be scientific, systematic and synchronous.
+ Policy on trade development in mountainous areas must be transparent, united, stable and feasible
The process of implementing the policy on trade development in mountainous areas: Policy formulation and promulgation; the process of implementing the policy
on trade development in mountainous areas; results of implementing the policy on trade development in mountainous areas; the completion of policy on trade development in mountainous areas
1.2.2.3. Subject and object of the policy on trade development in mountainous areas
The subjects of the policy on trade development in the North Central mountainous area includes the Central management and local authorities of 6 provinces in the North Central region.
The object of the policy on trade development in the North Central mountainous area is mainly trade enterprises and business individuals in the North Central provinces.
1.2.2.4. Role of the policy on trade development in mountainous areas
Orientation, guiding and creating a new synchronization in business environment.
Controlling, boosting economy, widening the scale of goods exchange and boosting market competitiveness.
1.2.3.2. Policy on the development of business commodity
The policy on the development of business commodity are guidelines, programs that the State establishes, all aims at subject which are commodities and producers in the mountainous areas. That can be regulations of standard of commodities, programs with the aim of mountainous market stability.
1.2.3.3. Policy on market development
Trang 8The policy on market development in mountainous areas is the whole of viewpoints, solutions and tools that the state and local government use to assist enterprise in finding partners, markets for products and services of enterprises.
1.2.3.4. Policy on support for trade promotion
Policy on support for trade promotion is the overall viewpoints, solutions and tools used by the State and local authorities to assist enterprises in finding partners, market for products and services of enterprises operating in the mountainous areas
1.2.3.5. Policy on the development of trade infrastructure
The policies not only focus on building traditional markets and other traditional retail models, but also focus on modern retail models such as shopping centers, retail chains, convenience stores, supermarkets, trade centers in mountainous areas
1.2.3.6. Policy on the development of trade service system
Trade services actively support the trade development generally and trade in mountainous areas particularly. The trade service system includes financial service, logistics service, integrated and specific distribution points in mountainous areas
1.2.3.7. Policy on the development of trade human resources
Policy on supporting for human resources is the whole views, solutions and tools that the State and local authorities use to support enterprises in the training and developing process of human resources.
1.2.3.8. Policy on the development of border trade
Policy on the development of border gates; policy on taxsuspension area
Besides, the State and localities need to increase examination, control activities tightly the illegal transport border trading commodities in the mountainous areas.
1.2.4. Criteria of evaluation of the policy on trade development in mountainous areas
1.2.4.1. The efficiency of the policy
The efficiency of the policy on trade development in mountainous areas shows the level of effect of the policy, changes or maintain the real situation based on the want of the State or local authorities The efficiency of the policy on trade development in mountainous areas shows the right identification of objectives and result assessment comparing to the objectives.
1.2.4.2. Criteria on the possibility of the policy
The possibility of the policy to trade development in mountainous areas can be seen through: the level of identification of the policy; price reduction to approach and
Trang 91.2.4.3. Criteria on the equality of the policy
Trade policy in mountainus areas affects trade enterprises and business subjects
in the mountainous areas. Therefore, the evaluation of the level of equality of the policy on trade development in mountainous areas can show the level of effect of policy to trade enterprises. This aims at objectives of the policy that have been implemented or not through the qualiative and positivition approach
1.2.4.4. The unification of the policy
The unfiication among parts of the policy and between a policy and policy system will affect to the result and efficiency of the policy. The policy is hard to implement if policy mechanism has no unification, clarity or the promulgated policy
is not in line with other policies. Therefore, it is necessary to constrast all parts of a policy and a policy to the policy system
1.3. Factors affecting to the policy on trade developent in mountainous areas
1.3.1. Factors related to regional and international economic integration
The process of liberalization trade have been widened on a regional and global scale, that has a profound impact on all economic, political, social and environmental sectors Countries in the world are attempting to integrate into the international trading system to take advantage of opportunities for economic development in general and trade in particular
1.3.2. Trade institution
To develop trade in mountainous areas, the first and above all condition is that the State’s agencies at all levels must establish institution including legal system, policy on trade development in mountainous areas, mechanisms and regulations, the capacity of management, of institution, which is shown by the capacity of construction and implementation policy to achieve objectives
1.3.3. Factors related to natural condition
Natural condition affects significantly to all sectors including trade, which are: geographical location, natural resources, weather, climate.
1.3.4 Factors related to trade human resources
Human resources in the mountainous areas is an important factor in the trade
Trang 10development of mountainous areas Every development is determined by human being. Human being proposes policies and it is human being implementing policies
1.3.5. Factors related to infrastructure
Infrastructure affects directly to the trade development in mountainous areas, is the trading basis of to develop localities, the important base affecting to enterprises’ activities, the quality and price of products
1.3.6. Factors related to the level of technology
The level of science and technology is so important to maintain the growth rate
of trade in mountainous areas. In mountainous localities, science and technology development is focused as it not only boosts the industrialization modernization process but also plays a key role in the development of producing goods and environment protection.
1.3.7. Factors related to formulation, promulgation and implementation of the policy
The State's guidelines and policies in general, the formulation is done by the ministries, branches and central agencies, but the implementation and reconcretization are done by local authorities. Therefore, the localities’ capacity and the implementing agencies will have a great impact on the effectiveness of the policy. If the local organization is well organized, active, flexible and creative, the policy will support the right beneficiaries, ensure timely completion and high efficiency
1.3.8. Factors related to trade enterprises
Trade enterprises is the subject being affected and also the subject joining in policy implementation and directly gaining profits from the policy
Chapter 2THE REAL SITUATION OF THE POLICY ON TRADE DEVELOPMENT IN
THE NORTH CENTRAL MOUNTAINOUS AREA 1.1 Overview of the real situation of trade development in the North Central mountainous area
1.1.1. Overview of the real situation of economic development in the North Central region
The North Central region is the northern part of Central Vietnam, with the area from the Tam Diep mountains to the northern Hai Van pass, borders with the
Trang 11Northern Midlands and Mountains, and the Red River Delta to the north , borders with Laos to the west, borders with the South Central Coast to the south and borders with the East Sea to the East The North Central region is one of eight socioeconomic regions assigned by the Government to formulate a master plan on socioeconomic development. The North Central region is considered to be an importantly strategic, political, economic, social, defense and security area It has strategic significance and important advantages in expanding economic exchanges with countries in the region and in the world.
2.1.2. Real situation of the growth of the total rotation of retail sale and service in the North Central mountainous area in 2011 2017 period
The rate of rotation of all goods and services in the North Central mountainous area have increased stably in recent years.
Table 2.2. Total amount of retail sale based on current price of the North
Central mountainous area Total
Trang 12till 2016, reaching over 8.28 million per capita each year. Therefore, it can be seen that the value as well as the growth of retail sale of trade in the North Central mountainous area have increased every year, contributed to the increase in source of goods of localities in the North Central mountainous area in order to meet the demand of consumption and business in the area.
2.1.3. Real situation of the quantity and scale of trade in the North Central mountainous area
Since 2010 till now, the number of enterprises have been increased in the North Central mountainous area. However, the contribution of each economic factor have clear difference. Trade factors having the State capital have slowly changed into the form of owner
Trang 132.1.4. Real situation of the growth of import export turnover of the North Central mountainous area
2.1.4.1. Real situation of export activities of the North Central mountainous area
In recent years, export development have contributed significantly to the revolution of the North Central region. Export has become one of main motivations of economic growth, socio economic stability of the region, source of jobs, income increase and hunger eradication and poverty reduction. Export activities of the North Central mountainous area tended to increase from 1651.6 million USD in 2011 to 4251.1 million USD in 2017
Comparing to the growth rate of the whole country, the average growth rate of the North Central mountainous area in 20112017 period was17.4% However, the growth rate of export of the North Central region have not been stable and tended to decrease from 19.8% in 2011 to 11.3% in 2017. In 20112013 period, the growth rate of export increased from 19.8% to 23.7% in 2013. This is the high growth rate comparing
to other regions of the country
2.1.4.2. Real situation of export activities in the North Central mountainous area
Overall, the growth rate of export turnover of the North Central region in 2011
2017 period was not stable, whereas the main export type of the North Central region is direct export ( accounting for 96,4%), the quantity of imports accounted for only 3.6%. However, the value of import turnover of the province in the North Central mountainous area only reached 0.31% averagely in the period
Main export markets of the North Central region have been more and more diverse. Asia is the main import market of the North Central region, especially China, Taiwan, Korea, Japan. However, the real value of import turnover in 20112017 period was not really stable, brought risks in developing process of trade of each province in the North Central region when the markets of these countries have economic instability.2.2. Real situation of the policy on trade development for the North Central mountainous area
2.2.1. Real situation of the policy on subject development
a) The State
To ensure for all business subjects generally and subjects in the North Central mountainous area particularly, in recent years, the State has promulgated legal system