Hanoi is the central city in the north. The development of the city is not separated from the surrounding areas but must be closely linked with its large surroundings to promote the central role of the capital city. The author has proposed principles to link Hanoi and its surrounding areas, proposing strategic link orientations to develop economy and proposing some ways (value chain and interdisciplinary economic clusters) to realize economic links between Hanoi and its surrounding areas.
JOURNAL OF SCIENCE OF HNUE Social Sci., 2016, Vol 61, No 12, pp 150-160 This paper is available online at http://stdb.hnue.edu.vn DOI: 10.18173/2354-1067.2016-0116 HANOI IN ECONOMIC LINKING SURROUNDING AREAS FROM THE PERSPECTIVE OF STATE MANAGEMENT Ngo Thuy Quynh Faculty of Urban and Rural State Management, National Academy of Public Administration Abstract Hanoi is the central city in the north The development of the city is not separated from the surrounding areas but must be closely linked with its large surroundings to promote the central role of the capital city The author has proposed principles to link Hanoi and its surrounding areas, proposing strategic link orientations to develop economy and proposing some ways (value chain and interdisciplinary economic clusters) to realize economic links between Hanoi and its surrounding areas Hanoi government and businesses of the city and surrounding provinces have a decisive role for economic link and promote economic integration for rapid, efficient and sustainable economic development Keywords: Area surrounding, value chain, multi-industry linking group, efficiency, sustainability, government Introduction In recent years, managers and policy-makers of Hanoi government are keen to strengthen partnerships between Hanoi and localities in the Red River Delta These relationships are in order to boost strong growth for the whole region as well as for Hanoi itself Usually, the partnershipsare discussed with the scope of the Northern Key Economic zone or the Red River Delta or within the Hanoi Metropolitan Area of, but it seems to have undesirable real results Why are there suchproblems? And what can be done to resolve the problems? Area surroundings arebig and complex problems In this article, to contribute to clarify the above questions, the author would like to present some of the issues of area linking between Hanoi and other localities in Hanoi Capital Region in order to provide additional information to those who are interested in Received date: 1/7/2016 Published date: 25/10/2016 Contact: Ngo Thuy Quynh, e-mail: ngothuyquynhapd@gmail.com 150 Hanoi in economic linking surrounding areas from the perspective of state management 2.1 Content Research and Documentation Resolution of the XI Party National Congress specified, Vietnam needed to well develop urban systems, especiallywell promoting major metropolitan areas to boost economic development of the country Also, major metropolitan areas should be linked to surrounding urban areas in order to be developed urban areas The scholar, Ngo Doan Vinh, the author ofStrategic Research and Socio-Economic Master Planning Developmentin Vietnam emphasized urban development at a strategic level and for that, the central urbans playing important rolesin the economic development of the country Urbans areattracted both fromregions where are rich for natural materials, labor resourcesand surrounding areas by the impact from the supply of machinery, technology, consumer goods, and moved off base industry and services as well as providing investment capital to the surrounding areas for production and business development Sandrine Barreiro, an expert of French Institute of Urban Management (IAU), in the presentation on French Urban Planning at the scientific conference in Hanoi in October 2014,clearly mentioned about the Paris urbans and the key role of Paris With the huge accumulation of capital, innovation capacity, superior service, Paris became central urban, closely associated with capital urban areas in the interaction of science technologies and economy development Ngo Thuy Quynh, the author of Economic TerritoryOrganization, specified the economic territorial organization of national urban systems and confirmed the role of central urban areas This scholarcompared urban areas in Vinh Phuc province in close relationship with Hanoi – with the role as a central urban area in the northof Vietnam The scholar V.ISyrkin (2001), "Usingthe Strategy Economic Growth Pole to Boost Regional Development" pulished by the Journal No.91 of the Institute of Social Sciences Information (ISSI),mentioned the positive role of economic growth poles (as urban areas) to the regional development on the basis of links between central urban areas and surrounding areas In the Scientific Research of "60th Anniversary of Hanoi Liberation: Achievements, opportunities –challenges and development", an article written by Ngo Doan Vinh and Ngo Thuy Quynh mentioned economic links between Hanoi and localities in Hanoi Capital Region It’s Hanoi government that collaborated with local governments to develop policies and build transportation networks, water supply, waste treatment Hanoi businesses in economic cooperation withlocal businesses surrounding areas to produce high-quality and competitiveproducts 2.2 The theoretical basis development of regional economic links 2.2.1 Perception and conception of regional economic links 151 Ngo Thuy Quynh Regional links are one of the key solutions to the economic development of all associated participants to bring greater economic efficiency forthe sustainable development process Regional links include two aspects: non-economic and economicregional links Non-economic regional links are links between the local authorities in a region or in different regions in the field of policy development orinter-municipal technical infrastructure development Economic regional links are links between businesses to develop economy Economic regional links appear and developto bring about economic benefits for all parties and participants actively link on the basis of business development During the development process, especially in the context of globalization, it is impossible without economic links that are often led bycentral governments and the global economic groups The value chains and multi-industry economic clusters act as the principal method for economic integration 2.2.2 Principles of economic links The economic links between Hanoi and surrounding areas should be based on the following basic principles: (1) Following market principles to implement economic links between Hanoi and localities The author said that the economic links between Hanoi and other localities are decided by the market and not by any subjective factors It is not due to administrative orders or political decisions Economic links are just for economic interests only Participants in economic links must be satisfied about economic benefits according to contribution rate That means the more contributions the more economic benefits However, the author would like to emphasize that the economic benefits brought by the economic links must firstlysecure businesses themselves - who played a major role in the economic links because no economic benefitsmean noeconomic links Economic benefits from the association must be given tobusinesses and local people Thanks to it, increasing the likelihood of state budget for local governments (that meant bringing economic benefits to the local authorities) (2) Subjects of the economic links must be clearly defined and they should actively participate in At the regional economic link aspect, participating in the process of linking includesthe state management agencies (local governments) and local businesses Local governmentsclosely associatewith each other to adopt policies, technical infrastructure system development (transportation networks, power transmission systems, telecommunication systems, water supply, hazardous waste disposal ) and jointly organize and witness enterprises together signing the contracts to form production value chain or production - consumption value chain Hanoi government and local authorities should not have the situation,which is only separated by a road that compensation rates for different clearance are too big; or one side of the road is an industrial area of province A and the other is an industrial zone of province B Or provinces separated by about 20-30 km are a coastal seaport as in the Central area Local authorities complying wellthe role in economic links will create trust 152 Hanoi in economic linking surrounding areas from the perspective of state management Figure Participants in regional economic links and a solid guarantee for a successful association State agencies create economic link orientationand establish policies supporting the economic integration effectively Therefore,what local governments need to to promote the economic integration? In fact, local governments have primary responsibilitiesas the following: - Developingthe overall project on economic link orientation between their local and other localities in the major economic regions In the process of building this project,businesses must be involved from the beginning until final decision on economic integration Who organized this? At first, it was the state authorities and then enterprises To get the general economic link orientation, an inter-provincial meeting should be held to discuss and decide on this matter Then, a local government along with some core businessesshould be the host to organize this meeting - Local authorities issued and implemented policies encouraging economic linkages between their local businesses and other provinces’ businesses Meanwhile, especially to facilitate and shorten the duration of administrative procedures, prepare the site and fund vocational training,credit supportingpolicies, and even support credit interest to link specified general oriented economy In the process of developing and issuing policies to encourage economic links, local governments should cooperate with each other closely to avoid disunity or disagreement - Organizing inter-governmental conferences and core businesses to unify economic linkage orientation, discuss what needs to be done to promote economic links between localities - Local governments monitor, summarize, and draw lessons in economic links between localities with high sense of responsibility and great political will - Entities directly associated economic regions areenterprises Local authorities not directly perform economic links This cannot be mistaken Hanoi enterprises directly linked to other local enterprises Enterprises decide the economic links by themselves but not by bodies of state administration or the management of gevernments Businesses 153 Ngo Thuy Quynh actively link together to generate more commodity products with higher quality and thereby enhance their competitiveness, gain more profits Thus, discussing economic integration cannot be absent of representatives of related businesses; the authorities must be supportivefor businesses to gain more business profits through economic integration; create a platform for enterprises to implement effectively economic link In order to support development and effective economic links, businesses need to implement the following: - Analysis of product life cycle that enterprises are supposed to develop - Analysis of production value chain, technology market and related products - Analysis of risks and effects of economic integration in minimizing risk - Analysis of impact of reducingindependence and increasing dependence by implementing economic links and institutional solutions 2.3 Discussion and proposals on economic regional links for Hanoi To link Hanoi capital region effectively in practice, the author would like to propose some basic points about the coordination and the link below: 2.3.1 Hanoi should coordinate with surrounding areas to make some importantthings a) Policy development coordination - Developing compensation policy for site clearance to avoid conflict between Hanoianand provinces’ people - Together developing waste disposal programs and support industrial zones - Together developing collaborative research programs and implementation b) Coordinativelydeveloping a legal frameworks for economic integration On the basis of the overall master planning of socio-economicdevelopment of the Red River Delta and surrounding provincesuntil 2020, local governments should consider, analyze and build up the economic linkprojectfor the appropriate time In this project, it is necessary to specify which field of link locality needs to cooperate and with which province At the same time, enterprises in provincesshould propose linking orientations to local authorities So, provinces will synthesize and establishoverall linking orientation of their localities In case if Hanoi only proposes orientation of their economic links with other localities, persuasion will be limited That means the economic link is from one side and thus it will have negative effectson economic link decisionsof Hanoi To determine the economic link content correctly, Hanoi should review the development methods and plans for long-term spatial organization as well as development orientations of alarge area and other provinces c) Coordinativelydetermining economic link space This is the next important issue after having identified the legal basis Practice shows that Hanoi is very spreading andappealing to surrounding territories This attration depends on the locations of surrounding territories and potential advantages of those 154 Hanoi in economic linking surrounding areas from the perspective of state management territories The author would like to give some particular examples to demonstrate this point of view Over the past few years, investors from HCM provide capital for Hanoi to build hotels, restaurants; and investors from Hanoi provide capital to invest in resorts, hotels, restaurants in Phu Quoc, Ho Chi Minh, Mui Ne, Nha Trang, Da Nang Near space, corresponding to the first belt; including space from Hanoi to Bac Ninh, Hai Duong, Vinh Yen, Hoa Binh, Phu Ly, Hung Yen The next space, Haiphong, Nam Dinh, Ninh Binh, Hoa Binh, Viet Tri, Thai Nguyen (even Tuyen Quang, Thanh Hoa, Lang Son, Halong ) From theoretical analysis and practical consideration, potential strength analysis, comparative advantages of Hanoi and development requirements of the major economic regions, the author said that if Hanoi is considered to be the key area, this areawill be aclose linking space with around 40-50 km radius (first belt, in 2013 with a population of about 5.8 million excluding Hanoi); further spread about 40-50 km, with about 100 km radius from Hanoi, is the next linking space (second belt, with a population of about 14 million people in 2013 excluding Hanoi); 100 km apart are wide linking space (third belt, in 2013, with a population of about 29 million people from Thanh Hoa) It can be defined as the space between Hanoi and the remaining territory The economic integration should also be considered in two belts, each belt has a radius of about 40-50 km Figure Hanoi map in economic region link space 155 Ngo Thuy Quynh 2.4 Region economic links and economic spaces The economic link between Hanoi and surrounding localities within the near space (first belt) should be considered with specific instructions as follows: (a) Links in the area of training: There are long history universitieswhich are capable of training much better than other places, so localities along with Hanoi make plans in cooperation to bring greater efficiency Local authorities should coordinate with the Ministry of Education and Training in order to find the best plan for cooperation, avoid waste and limitinadequate output The fields of economics, politics, philosophy, sophisticated technology, high-quality medicine should be given to Hanoi universities The intensive training fields of agriculture, forestry, fisheries,andnursing should be givento local universities In some areas, the local universities should be branches of Hanoi universities (b) Links in the field of health care: hospitals should not be mostly located in Hanoi Projects should be made to move specialized hospitals or departments to localities Localities in collaboration with the Ministry of Health build general plans Technological and scientific research institutes and leading hospitals should be left in Hanoi The hospitals of tumors, endocrine, should be moved to localities to reduce the load for Hanoi and also to reduce the risk of contamination for the Capital The eye, obstetrics, dermatology hospitals should have campuses in provinces (c) Links in industrial sector: This is an important field The author suggests that, satellite industry areas for Hanoi should be formed For example, Vinh Phuc Industrial area focuses computers and accessories, optical devices and components and automotive assembly Bac Ninh industrial area may be concentrated area for manufacturing machinery, audio-visual equipment, equipment for medical, food and beverage Hai Duong industrial area is concentrated area of agricultural engineering and automobile assembly Hung Yen industrial areais for manufacturing machinery and equipment for construction, power generation, apparel to create an appropriate industrial space across the major economic regions To achieve industrial link ideas, necessarily adhere to the following basic principles: - Hanoi acts as the core for the development of support industries of surrounding areas Hanoi should form a supporting industrial parks undertakingsupporting functions for the whole northern region, not just within the Red River Delta To that, Hanoi needs to determine output products of supporting industries in the surrounding areas.Anyway, the output productsof supporting industry should be equipment, spare parts, accessories, materials, circuits for electronic products To get suchoutput products, Hanoi should have manufacturing technology, new materials, high-grade steel, alternative materials To have manufacturing technology or electronic devices, Vietnam may import technology, semiconductor equipment and automation equipment Other materials, in our country in general and in the Red River Delta in particular, are rapidly developed and manufactured such as high-grade steel, new materials, alternative materials and manufacturing technology By presenting such issues to define the content of economic links in the industrial sector between Hanoi and surrounding areas 156 Hanoi in economic linking surrounding areas from the perspective of state management - Base on the theory of the production- science value chain for electronics industry, computers, machinery and mechanical engineering equipment for agriculture, construction, transport Hanoi plays a key role in patents, trial production and final productconsumption, and for businesses in this areaparticipating global value chain and global distribution network The Red River Delta region will have about 75-80 industrial zones after 2020 and have huge demand forassociating with Hanoi Hanoi should form a industrial zones to undertake research function for technical and technology improvement for industrial plants operating in localities (d) Links in the field of tourism and commerce: In this case,linking space should be expanded, Hanoi must be a large commercial center with big commercial groupsto operator wholesale and retail system of the whole region Supermarkets, trade centers at the regional andinternational level as Metro, Big C, FiviMart or Hapro play key roles Each trade group forms supply and distribution chain in the local area At the same time, Hanoi acts as central function of tourist routes to the local destinations such as Nam Dinh, Thai Binh, Ninh Binh, Hai Phong, Vinh Phuc, Bac Ninh, Hung Yen, Thai Nguyen and further toThanh Hoa, Viet Tri, Tuyen Quang, Lang Son, Cao Bang, Ha Giang the trade groups and tourism enterprises in Hanoi will serve as the core (e) Economic links in the field of safe food production: safe and high quality local foods will be providedfor Hanoi (tomatoes,cherries, cucumbers, squashes, cauliflowers, kohlrabis, broccoli, meat, eggs, fruits, seafood ) In the near future, the number of tourists to Hanoi will be very large, in 2020, it is expected that the number of tourists coming to Hanoi can be over 14-15 million passengers a year Only an average of 4-day stay, such tourists will have huge demand for vegetables, meat, eggs, fresh fruit juice, seafood (about 14- 15 thousand tons of vegetables, thousand tons meat, thousand tons of fruit, 5-6 thousand eggs, thousands of tons of seafood ) Localities can establish high-tech agricultural zones to provide vegetables, meat, eggs, fish, soft drinks, fruits and ornamental plants for Hanoi Hanoi is responsible for organizing technological areas for harvest, storage, processing and consumption, primarily consumed in hotels as well as supermarkets and markets system 2.5 Establishing interdisciplinary linking clusters (Cluster) and production value chains towards modernization to develop Hanoi in regional links To develop economic links between Hanoi and surrounding areas, necessarily formingscience-production chains and Clusters with the aim of creating "playground" for businesses - Creative industrial Cluster developmentin which Hanoi is the central urban (Figure 3): There are a number of scientific research institutes, universities, high-tech zones in Hanoi They will be the invention and research core for this Cluster (multi-sectoral linkclusters) Hanoi’ssurrounding localities will develop enterprises applying inventions from the central urban The localities, which depend on its advantages andpotential, coordinate with Hanoi to matter as well as the potential land and labor of other localities are 157 Ngo Thuy Quynh promoted effectively Following that way will avoid overlapdevelopment andduplication Every year or every months, a conference of disseminating scientific research results for localities and businesses should be held Encouraging businesses to associate with scientific research institutions and universities of Hanoi to carry out scientific research for production Cluster forms developmentboth attracts scientists to enterprises and rapidly promotesresearch findings of institutes in Hanoi, and contributes to reduce the condensity for Hanoi Figure Creative Industry Cluster in economic regional links - Development of production - science value chains in agriculture, forestry and fisheries: In the field of agriculture, forestry and fisheries should thrive this way Firstly, the value chains of production should be agreedon (figure 4) Developing chain of growing, processing and consumption of vegetables, pork, fish, dairy, eggs and poultry Hanoi government should support enterprises in its area on being responsible for carrying out scientific research for breeding, production, processing technology, and product sales Localities develop farms, in-house farms or plant, livestock, and poultry enterprises, aquaculture enterprises associating with processing system under VietGAP standards and ensure nationalfood safety The scientific research institutes in Hanoi in accordance with local scientific research institutes deploy breeding and cultivation, harvesting and processing Supermarkets and trade centers in Hanoi sign contracts with the farms, in-house farm, and local businesses (with the presence of the Hanoi government and local administration) - Developing scientific- production value chains in industry and service sectors (see Figure 4): In which, computer manufacturing, automobile manufacturing, machinery and equipment manufacturing for agriculture sector (planting machines, harvesters, storage 158 Hanoi in economic linking surrounding areas from the perspective of state management and processing technology); production of cultural industryproducts; large scale supply system in commercial - service sectors as well as medical care These areas are needed to link between Hanoi and other localities in the Red River Delta Figure Agricultural production value chain in economic regional link Theoretically, each cluster and each manufacturing - scientific value chain should have an advisory council The council is responsible for collaborating enterprises in the cluster and in the chain; protect the rights of the cluster and the chain’smembers; solve the problems arising in the internal cluster or chain and organize cooperation with enterprises outside the cluster and chain Hanoi businessesneed to be the core and call forcluster or chain formation;after the clusters or chains are set up, these enterprises manage to establish the management council to ensure all activities of the clusters or chainsto have good results Hanoi authorities, after consulting with businesses in its area, need to hold a meeting conference to exchange business with other provinces’ enterprises to propagate and persuade them to join and participate in Clustersand value chains At that conference, Hanoi government should make policiesto support and create conditions for cluster and chain formation, as well as benefits for businesses from other locations if they join the cluster and chain At the same time, the government should guide to build up membership agreement of cluster and chain and establish operational regulations of the cluster and the chain Conclusion (1) Economic link between Hanoi and the surrounding areas have a theoretical and practical basis In economic links of the capital region, Hanoi plays a role of central urban Economic interests are the driving force of economic integration Economic link is not administrative orsubjective decision,it requires greater economic profitability towards 159 Ngo Thuy Quynh enterprises (2) Economic link between Hanoi enterprises andother local businesses in the metropolitan capital city will strongly develop in the fields of industry, trade, tourism, scientific research, training and healthcareservices on the basis of the scientificproduction value chain formation and interdisciplinary clusters The economic link between Hanoi enterprises and other local businesses in the metropolitan capital must be held and actively promote (3) Local authorities and businesses are entities having an important role in the process of economic development and integration; actively develop coordinative and linking plans Local governments have roles of creatingeconomic link for collaborative businesses REFERENCES [1] Resolution of the XI Party National Congress, Vietnam National Politics Publisher, 2011 [2] Ngo Doan Vinh, 2003 Strategic Research and Socio-Economic Master Planning Development in Vietnam Vietnam National Politics Publisher [3] Sandrine Barreiro, October 2014 Head of Master Planning Unit,French Institute of Urban Management (IAU) French Urban Planning, Scientific conference in Hanoi [4] Ngo Thuy Quynh, 2010 Economic Territory Organization Vietnam National Politics Publisher [5] V.I Syrkin, 2001 Using the Strategy Economic Growth Pole to Boost Regional Development The Institute of Social Sciences Information (ISSI), Journal No.91 [6] Ngo Doan Vinh–Ngo Thuy Quynh, Hanoi and regional economic link, Scientific Research of "60th Anniversary of Hanoi Liberation: Achievements, opportunities –challenges and development [7] Hanoi People’s Committee, Scientific Research of "60th Anniversary of Hanoi Liberation: Achievements, opportunities –challenges and development 160 ... manufacturing technology By presenting such issues to define the content of economic links in the industrial sector between Hanoi and surrounding areas 156 Hanoi in economic linking surrounding areas from. .. surrounding territories This attration depends on the locations of surrounding territories and potential advantages of those 154 Hanoi in economic linking surrounding areas from the perspective of state. .. sector (planting machines, harvesters, storage 158 Hanoi in economic linking surrounding areas from the perspective of state management and processing technology); production of cultural industryproducts;