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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
1 INTRODUCTION 1. 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 To achieve objective above, the thesis completes these missions: 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 4. Research method 4.1. Data collection method * Primary data collection method Questionnaire investigation: The survey was conducted from January 1, 2018 to April 2018 For trade enterprises, the number of sent questionnaire was 320, resulting in 301 votes, after processing (cleaning up data), there were 290 valid votes for analysis. For individual business households, the number of sent questionnaire was 220, there were 195 valid votes. For state management agencies, the number of outgoing questionnaire was 130 and collected was 120 valid votes. Survey data was made to ask 8 policy contents 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, Departments of Industry and Trade, Department of Planning and Investment, annual abstracts of statistics of 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 associated 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. 1.1.2.2. Content of trade development in mountainous areas In 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. Secondly, trade development in mountainous areas is the vital factor to link mountainous provincial economy with Vietnam’s economy and neighboring countries’ economy. Thirdly, trade development in mountainous areas contributes to ensure the macro economy of the province particularly and mountainous area generally. 1.2. Policy on trade development in mountainous areas 1.2.1. Classification of definitions of the policy on trade development in mountainous areas 1.2.1.1. Definitions of policy and trade policy Policy is one of the most useful tools of the State in economic management and is understood as the whole viewpoints, ideologies, objectives and basic means of the subjects affects to objects in order to gain objectives. 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 a) Definition of the policy on trade development in mountainous areas The 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 + 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. Role of examination 1.2.3. Content of the policy on trade development in mountainous areas 1.2.3.1. Policy on the development of business subject The policy on the development of business subject (traders) is policies to encourage, facilitate for domestic and foreign traders to make use of opportunities and concessionary given by the State and local authorities so that traders can have successful and effective business in the mountainous areas. 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 The 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 implement the policy; increasing the profit that society and enterprises can gain, the awareness of enterprises about the necessary possibility of the State management; the level of pleasure of policy subjects with the Government and officers; the general assessment of the possibility of the policy. 1.2.4.3. 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 10 development 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 re concretization 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 2 THE 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 10 12 till 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 Table 2.4: The number of trade enterprises and business households in the North Central region 2012 Unit: Thousand of enterprises and households 2014 2015 2016 2016/2012 2013 +/ % NCR 139 156 182 193 201 6.5 47,22 Thanh Hoa 33 37 44 47 51 1.8 54,33 Nghe An 37 41 50 54 56 1.8 49,41 Ha Tinh 13 16 20 23 24 1.1 82,66 Quang Binh 17 20 21 22 22 0.5 32,63 Quang Tri 14 13 15 17 19 0.7 62,65 Thua Thien Hue 25 27 30 29 31 0.5 19,1 Source : Bui Khac Bang (2016) Trade enterprises have become an important part of Vietnam’s economy. With a large number, trade enterprises have contributed significantly to the total income of the country, created jobs, attracted domestic and foreign capitals for business activities and solved social issues. Specifically, according to data, trade enterprises in the North Central mountainous area have created jobs for 330.591 employees, 12 13 equivalent with 24.47% of employees in the North Central region in total. 2.1.4. 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 13 14 related to trader development such as: The 2005 Civil Law, the 2005 Commercial Law, the 2005 Investment Law, the 2005 Maritime Law, the 2005 Civil Aviation Law, the 2005 Competition Law Credit, the 2005 Environment protection law, Law on Credit organization, Law on Protection of Consumer Rights 2011. These laws, together with the guiding documents, have contributed to the development of a regulation on the development of traders. However, the 2005 Commercial Law is still the most important basis for ministries and localities to develop a policy system to develop traders suitable for their conditions However, in order to develop trade in mountainous areas in general and trade in the north central region in particular, Decision No 964 / QDTTg of the Prime Minister on 30/06/2015 on the trade development program in mountainous, remote areas and islands in 2015 2020 period is the actual really important document. Policy on the development of traders in the North Central mountainous area is also based on this document b) North Central provinces The speed of the developing process of trade in the North Central mountainous area in 20102016 period have been fast. This can be seen through the number of trade enterprises as well as individual households increasing from 13.9 thousand subjects in 2012, till 2016, the number was 20.1 thousand business subjects The average number of subjects in 20122016 period was 17.42 thousand. Every year, the number of subjects in the North Central region have increased by 1.55 thousand averagely in 20122016 period Through the table above, the average number of trade enterprises in the North Central mountainous area in 20102016 period was 8329 enterprises. Every year, the number of trade enterprises have increased by nearly 1000 Policy on subject development of Thanh Hoa: To develop business subjects, Thanh Hoa has promulgated a business development plan of Thanh Hoa by 2020. The plan has identified by 2020, there will have been at least 20,000 enterprises, reaching 56 enterprises / ten thousand people; The enterprise sector will contribute over 65% of the provincial GDP, accounting for about 60% of total social investment; There will be over 200 enterprises engaged in export activities, the registered number of new established enterprises is about 200,000 Policy on subject development of Nghe An 14 15 By 2017, Nghe An has more than 9,900 enterprises in operation, accounting for 61.5% of the total 15,000 established enterprises. In terms of type, Nghe An has 32.61% is shareholding companies; 40.8% is limited liability companies; 26.59% is private enterprises. According to Department of Statistics of Nghe An, registered enterprises doing business in the delta account for 74.8%, in mountainous area the number accounts for 25.2%. The majority of registered enterprises have small and micro scale (98%) One of the most important policies of Nghe An related to the trade development in mountainous areas is Decision 89/2009 / QDUBND on 15/09/2009 on approving Trade Development plan of Nghe An by 2020 Policy on subject development of Ha Tinh: Ha Tinh province has nearly 6,000 enterprises, more than 1,300 People’s Committees and more than 3,000 cooperative groups by 2017. This area has many potential, advantages to develop into enterprises. From 2011 up to now, Ha Tinh has promulgated and enforced policies to develop business subjects to support a part for enterprises, People’s Committees that have been facing difficulties in capital and land, market information. Decision No 15/2013 / QDUBND on 27 August 2013 of the People's Committee of Ha Tinh on policy to support the development of rural trade in association with new rural construction in the province Policy on subject development of Quang Binh: To develop business subjects in provinces, especially mountainous areas, Quang Binh has promulgated many policies such as: Decision No 1333 / QDCT on 11/06/2012 on approval of the Trade Development Plan of Quang Binh by 2020 in order to encourage subjects to join in trade development of Quang Binh mountainous area Decision No 2046 / QDUBND on 4/8/2011 of Quang Binh People's Committee on approving the adjustment of the outline and cost estimation of Trade Development Plan of Quang Binh by 2020 Policy on subject development of Quang Tri: The policy on subject development for trade development of Quang Tri’s mountainous area is based on the following decisions: Decision No. 20/2013 / QD UBND on Trade Development Plan of Quang Tri by 2020 and orientations for the following years, on July 18, 2013, encouraging factors to participate in the trade development in mountainous areas, including: Stateowned trade and trade of other economic sectors; small business households 15 16 Policy on subject development of Thua Thien Hue To develop subjects doing business in the area, Thua Thien Hue has promulgated Decision No 1975/ QD UBND on August 24, 2006 of People’s Committee of Thua Thien Hue on approving the outline of adjusting Trade development planning of Thua Thien Hue by 2020; Decision No 682/ QD UB on March 12, 2003 of Thua Thien Hue People’s Committee on approving Trade development planning of Thua Thien Hue in 20012010 period; Decision No. 740/ QD UBND on April 8, 2009 on approving adjustment of Trade development planning of Thua Thien Hue by 2010 and orientation towards 2020 2.2.2. Real situation of the development policy on business commodity a) The State: Decision No 2441 / QDTTg on 31 December 2010 of the Prime Minister approving the National Product Development Program by 2020; Decision No. 2204 / QDTTg on December 06, 2010 of the Prime Minister approving the suppport program on development of intellectual property in 2011 2015 period to support enterprises having business in the North Central mountainous area while registering for protection, geographical indications and origin for specialty in the North Central mountainous area b) North Central provinces To the North Central mountainous area, products which are the speciality of provinces such as: Cleft sedge, cement, rubber of Thanh Hoa, Tea, Orange of Vinh, sugar, ordinary 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; textile, handicraft of Thua Thien Hue. Based on the table above, it can be seen that the North Central provinces have advatages in terms of wood, rubber, tea, ore export, and each province has its own specific export commodity such as Ha Tinh steel, Thanh Hoa cleft sedge, Quang Tro pepper, all have joined in international market and contributed to improve the export turnover of the North Central provinces in 20112017 period. 2.2.3. Real situation of the policy on market development a) The State: j Policy on market development for the North Central mountainous area is based on the objectives and organizational, implementation forms in policies such as Decision No 1114 / QDTTg on approving the master plan for socio economic 16 17 development of the North Central region and the Central Coast by 2020 by the Prime Minister of Vietnam on July 9, 2013; Decision No 964 / QDTTg of the Prime Minister on 30/06/2015 on Trade Development Program for mountainous, remote areas and island in 2015 2020 period has identified the development of domestic market, the import and export markets and the border trade area are very important not only for mountainous provinces generally but also for the North Central mountainous provinces. b) North Central provinces The orientation of development of domestic market such as: in the North Central mountainous provinces, the North Central market; other markets or import export markets as well as in the border market are clearly identified by the North Central provinces in the Trade Development Program 2.2.4. Real situation of the policy on support for trade promotion a) The State: Decision No. 72/2010 / QDTTg on November 15, 2010 of the Prime Minister on the Regulation on the Construction, Management and Implementation of the National Trade Promotion Program. In the North Central mountainous area, trade promotion activities are built on the basis of orientations for export development; domestic market; and trade in mountainous areas, border trade, in line with the socioeconomic development strategy in every period of the North Central mountainous area and of each North Central province b) North Central provinces There have been 3 supports for trade promotion programs in the North Central mountainous area In fact, in 20112017 period, Ministry of Industry and Trade organized many exhibitions, fairs and advertisements for the North Central mountainous area by Domestic Market Department and previous Mountainous Market Department. Besides, Ministry of Industry and Trade have cooperated with Trade Promotion Center of the North Central provinces to organize fairs attracting hundreds of enterprises in the North Central mountainous area and other areas, FDI enterprises, Laos’ enterprises to introduce, advertise special products in many sectors of many localities in the North Central mountainous areas Results of survey on trade enterprises in the North Central mountainous areas: Table 2.13: Evaluation of policy on supporting trade promotion of the North Central mountainous area based on the views of enterprises 17 18 Average Point point Standard Deviation (Mean) Level of Evaluatio Number feeling n views (turns) 4 & 5 3 point 1 & 2 point (%) point (%) (%) The diversity, regularity of trade promotion 290 program of local authorities The level of which enterprises receive information and regularity that enterprises participate 290 in trade promotion programs of local authorities The ability of enterprises to approach new customers, new partners 290 when participating in trade promotion programs of local authorities 34,5 40,3 19,3 55,2 57,6 80,7 10,3 3,24 (Average ) 0,626 2,1 3,41 (Average ) 0,589 3,21 (Average ) 0,439 Source: Results from SPSS 20 software In 2011 2017 period, the North Central provinces have implemented many 18 19 trade promotion programs to create opportunities to expand the consumption market as well as business cooperation opportunities for enterprises in provinces 2.2.5. Real situation of the development policy on trade infrastructure a) The State Other documents related to the development of trade infrastructure such as the Government's Decree No. 02/2003 / NDCP of January 14, 2003 on development and management of markets; Decree No 114/2009 / NDCP of December 23, 2009, amending and supplementing a number of articles of the Government's Decree No. 02/2003 / NDCP of January 14, 2003 on development and management of markets b) North Central provinces In 2011 2017 period, thanks for the support of the State and the effort of local authorities, trade infrastructure of the North Central region have had improvement, which can be seen like the increase in the number of markets, supermarkets, retail stores, trade centers in the area, specifically in the North Central mountainous area Markets: The number of markets tends to increase and decrease based on period of the North Central region. In 2011 2015 period, the number of markets in the North Central region increased from 1336 ones in 2011 to 1421 ones in 2015. However, in 2015 2016 period, there was a sharp decrease, from 1421 to 1376 ones 2.2.6. Real situation of the development policy on trade service system a) The State The State has promulgated many policies to develop the system of trade services such as logistics services, credit services, to develop trade service system in all country generally and the North Central mountainous areas particularly. b) North Central provinces According to statistics, the North Central region has more than 1,618 enterprises operating in the field of logistics (transportation, warehousing, postal and delivery services) In the North Central provinces, at the end of 2017, the number of enterprises having a good growth rate was 10.5% as an average in 20112017 period Table 2.18: Evaluation of development policy on trade service for the North Central provinces based on the views of enterprises Level of Evaluatio Number feeling n views Factors (turns) Average Point Standard Deviation point (Mean) 4 & 5 3 1 & 2 point point point (%) (%) (%) 19 20 The diversity of local credit sources that enterprises can 290 access The ability of approach local credit sources in 290 localities The equality in policy on 290 credit support of localities 24,1 75,9 19,3 69,3 11,4 6,6 64,5 28,9 3,37 (Averag e) 3,08 (Averag e) 2,78 (Averag e) 0,705 0,549 0,553 Source : Results from SPSS 20 software Overall, enterprises evaluated the diversity of local source of credit quite good. Although this criterion was at average level, but average point is close to the good level (3.37/5.0). Thanks for the network of Agribank agencies in many localities with many programs, preferential policies to borrow capital for enterprises, especially SME (accounting for 98% of total enterprises). 2.2.7. Real situation of the development policy on trade human resources a) The State: With the development of trade human resources in the North Central region, it can be seen from Decision No. 1114 / QDTTg of the Government approving the master plan for socioeconomic development of the North Central and Central Coast by 2020. b) North Central provinces Human resources training: The North Central region identifies prioritized areas for training such as mechanical engineering, textile, footwear, electronic devices, telecommunication and information technology, software technology, numeric data, supporting industries for high technology development, products from new technology, processing and export of agricultural, forest and aquaculture products and handicraft. Table 2.21: Evaluation of development policy on trade human resources of the North Central provinces based on the views of trade enterprises Level of feeling Evaluation views (turns) Point Average point (Mean) 20 Standard Deviation 21 Source: Results from SPSS 20 software It can be seen that the criterion of quantity and quality of training facilities of human resources in the North Central region is evaluated quite good by enterprises (101/290 enterprises). However, there is a few number of enterprises evaluated at 5 point in the Likert scale 5 point, therefore, the average score of this criterion is only 3.27 / 5.0 2.2.8. Real situation of the policy on the development of border trade The Government have promulgated Decree No. 14/2018 / NDCP specifying the border trade activities of traders and buying and selling goods of border residents. In 2015, the Border Trade Agreement between Vietnam and Lao PDR was signed. In 2016, the Ministry of Industry and Trade has issued Circular 08/2016 / TTBCT guiding the implementation of a number of articles of the Border Trade Agreement between Vietnam and Laos 2.3.3. General evaluation 2.3.3.1. Achievements Policies on trade development in mountainous areas have improved the rate of trade growth in the North Central mountainous area as relatively high in 2011 2017 period. Policies on trade development in mountainous areas have contributed to upgrade the value –added of trade in mountainous area as relatively stable and higher than other economic sectors in the North Central area. 2.3.3.2. Limitations Policy on trade development for the North Central mountainous area has not facilitated at its best for trade development. The rate of trade growth in the North Central mountainous area is still low. Trade growth in the North Central mountainous area is mainly focused on width development, not depth development. Many policies on trade development have contributed to the increase in natural resources depletion, biological diversity reduction and environment pollution, namely Formosa case in Ky Anh, Ha Tinh. 2.3.4.3. Causes of limitations The North Central mountainous area with small economic scale, economic efficiency is not high, geographical conditions are difficult Trade infrastructure in the North Central mountainous area has not met the requirements of trade development. The staff and qualifications of business officers have not met the 21 22 requirements. Chapter 3 SOLUTIONS FOR THE COMPLETION OF THE POLICY ON TRADE DEVELOPMENT FOR THE NORTH CENTRAL MOUNTAINOUS AREA BY 2025 AND ORIENTATION TOWARDS 2030 3.1. Domestic and international context affecting to trade development in the North Central mountainous area 3.1.1. Domestic context Forecasts about results of national trade have created both huge positive and negative effects to trade activities of the North Central mountainous provinces. 3.1.2. International context affecting to trade development of the North Central mountainous area The North Central region is an area not only adjacent to the North West mountainous area, the North Central Delta, the South Central Coast, but also a border area close to Laos. Trade activities usually occur not only through the system of border gates such as Cau Treo Ha Tinh or Lao Bao Quang Tri but also through small scale activities 3.2. Viewpoints and orientation of policy on trade development for the North Central mountainous area by 2025, orientation towards 2030 3.2.1. Viewpoints of completing policy on trade development for the North Central mountainous area Firstly, policies on trade development for the North Central mountainous area need to widen the scale of trade and quality, efficiency and trade structure improvement Secondly, policies on trade development for the North Central mountainous area is the motility for business subjects making use of advantages of the area for socio economic development. Thirdly, policy must ensure to reduce the negative effects of trade activities to environment, connecting trade development in the North Central mountainous area with biological environment protection. 3.2.2 Orientation, policy on trade development in the North Central mountainous areas by 2025, orientation towards 2030 Making use of all potentials, advantages to develop trade in the North Central 22 23 provinces, elevating the diversity, quality of main products for producing and consumption. Orientations of products should improve productivity through test and new breed application, intensive farming for higher quantity and quality, improving the value of advantageous products of the North Central mountainous area through deep processing. Besides, it is needed to focus on developing trade business facilities in the North Central mountainous area, network of markets, especially rural, remote market. Developing trade center, supermarkets, trade warehouse and logistics service center that are appropriate with general development planning of each province. 3.3. Solutions for completion of policy on trade development in the North Central mountainous area 3.3.1. Solutions for completion of policy on development of business subject The State and localities need to encourage the development of private trade types, especially households in the North Central mountainous area in the direction of efficiency, sustainability and stability in the coming time. In areas where there are no conditions of People’s Committee as ones in area II, area III, it can be implemented development policy on units of joined sale and purchase, or units of joined purchase and private sale or services units to support each other in producing, business and support for life in the North Central mountainous area. 3.3.2. Solutions for completing policy on business commodity development The State should encourage producing facilities and enterprises to formulate strategy on production for proper plans, investment orientations and risks avoidance; Products must be of high quality, ensure hygiene and food safety, in accordance with tastes of customers. The State should encourage smallscale producing and business facilities, especially individual households need to change their mind and producing practices to concentrating production along the direction of mechanization with larger scale production, technological innovation; focuses on building and developing the brand. 3.3.3. Completion of the policy on market development + The State and enterprises proactively and actively builds, implements trade promotion activities such as participating in fairs, exhibitions, research on market, popularizing market information, opening and enhancing information gate to supply information on import policy and characteristics of market for enterprises. 23 24 + Ministry of Industry and Trade and People’s Committee of the North Central provinces must have assessment in terms of market scale, the level of people income, the demand for goods, service that enterprises have been expanding while joining in that market With new markets, the State needs to analyse precisely so that enterprises can have specific orientations with each commodity and specific market. 3.3.4. Completion of the policy on support for trade promotion Authorities that are in charge of trade promotion need to organize fairs, exhibitions, advertisements, corporate with long lasted cooperators in international market to advertise brand as well as geographical instruction of products from the North Central mountainous areas in different means of media. Brand media, building geographical instruction of products from the North Central mountainous areas in domestic and international markets. The State should have specific policy to build geographical instruction of products such as Vinh Orange, cleft sedge, Quang Tri pepper, Ly Son garlic 3.3.5. Solutions for completion of the policy on trade infrastructure development Building and developing a synchronous trade infrastructure is one of the breakthroughs to improve quality, efficiency and competitiveness, infrastructure development planning in the direction of developing trade infrastructure in association with goods supply chain connecting to the region and the world It is necessary to invest in the construction of market, especially the expansion of local markets, roads, solid drainage systems, upgrading communication systems, power systems to support for efficient business 3.3.6 Development of human resources of trade in mountainous areas Encouragment to attract domestic and foreign business executives into trade industry. For the development of trade enterprises in the market, it is necessary to take measures to improve the capacity of managers to gradually enhance the competitiveness of trade enterprises Funding for the organization of classes to improve knowledge and management skills, business consulting programs, brand development for private trade enterprises 3.3.7. Completion of the policy on border trade development for the North Central region The State not only keeps developing policy and leagl system in terms of trade development but also cares trade service development (market, store, mart, 24 25 warrehouse, delivery home service, payment service) at the border gate with Laos. Activities in mountainous markets, markets in border and remote areas of ethnic minorities and in islands and training to improve skills for authorities in terms of developing extremely difficult areas in the North Central region 3.3.8. Completion of other policies Trade infrastructure development is based on implementing strongly the socialization activity in investment on trade infrastructure development, in which Public – Private partner (PPP) as the key factor The developement and management of value chain, supply chain for 4.0 Revolution on the base of establishing particaipation mechanism of managers, enterprises, researchers; ensuring the equalilty and profits of every stage in chain; solving limitations that prevent the establishement and development of the value chain. 3.3.9. Solutions for state management agencies to improve trade development policies in mountainous areas in the North Central region 3.3.9.1. Solution for the Central State Firstly, building and promulgating support policies must be derived from practice, serving the requirements of practice, solving urgent requirements of practice Secondly, it is necessary to develop a coordination mechanism and a joint action program of implementing agencies. In the policy guidelines documents need to be assigned 3.3.9.2. Solution for local authorities in the North Central provinces First, raising awareness and the role of trade development policy for socio economic development of the North Central provinces and the whole country Secondly, it is necessary to complete the trade development strategy of the North Central provinces 3.4. Some recommendations for commercial enterprises Commercial enterprises in the North Central mountainous region need to form and enhance the role of trade enterprises associations in the process of linking to form commodity supply chains, ensuring durable competitiveness strong for members Positive, sensitive in grasping information, updating policies and guidelines regularly to ensure the correct, adequate and timely implementation of policies promulgated, ensuring the rights of enterprises and ensuring proper implementation corporate responsibility for the economy 25 26 CONCLUSION Policy on trade development for mountainous areas plays an important role in socio economic development in the North Central region , as well as the process of industrialization, modernization of the North Central region The policy also contributes to GDP of the North Central region; pushes other economic sectors’ development, the shift in economic structure, the rise in national budget, hunger eradication and poverty reduction, market’s improvement; meets all goods demand of market, especially essential commodities, policy commodities for remote area, ethnic minorities with difficult condition. Theeoretical basis: The thesis has generalized, systematized definitions related to trade development in mountainous areas and to policy. Therefore, PhD candidate has briefly presented the complete definition of policy on trade development for mountainous areas of an area, including 8 internal parts: policy on the development of business subject, policy on commoditiy and service development, policy on market development, policy on the development of trade infrastructure, policy on the develoopment of business service, policy on trade promotion, policy on the development of trade human resources, policy on border trade. Practical basis: The thesis has systematized the real situation of trade development in the North Central mountainous area based on potentials, comparative advantage of the area. The thesis has analyzed and evaluated the real situation of policy on trade development for the North Central mountainous areas in 2011 2017 period Although trade policy for mountainous areas have helped North Central provinces exploit effectively advantages of the area, locality. However, there have been dificluties and challenges in the process of promulgation and implementation policy on trade development in the North Cetral mountainous area Based on research results above, the thesis has proposed solutions to complete the policy on trade development for North Central mountainous area by 2025 and orientation towards 2030. Moreover, the thesis has also proposed recommendations to complete the policy on trade development for the North Central mountainous area. 26 ... Definition and classification of the policy on trade development in mountainous areas a) Definition of the policy on trade development in mountainous areas The policy on trade development in mountainous areas is the part of National... 2.3.3.2. Limitations Policy on trade development for the North Central mountainous area has not facilitated at its best for trade development. The rate of trade growth in the North Central mountainous area is still low. Trade growth in the North Central mountainous ... THE 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