Summary of finance banking doctoral thesis: investment capital for marine economic development in the south central region

MINISTRY OF EDUCATION STATE BANK OF VIETNAM AND TRAINING THE BANKING ACADEMY NGUYEN LE NGUYEN DUNG INVESTMENT CAPITAL FOR MARINE ECONOMIC DEVELOPMENT IN THE SOUTH CENTRAL REGION DOCTORAL THESIS IN ECONOMICS HA NOI – 2020 THIS THESIS IS COMPLETED AT THE BANKING ACADEMY OF VIETNAM Scientific instructors: People's Teacher/Assoc.Prof.Dr TO NGOC HUNG Dr TONG THIEN PHUOC INVESTMENT CAPITAL FOR MARINE ECONOMIC DEVELOPMENT IN THE SOUTH CENTRAL REGION Examiner 1: Examiner 2: Examiner 3: The thesis is defended at the Thesis Council at the academy level held at hour date month .year 2020 at the Banking Academy The thesis is available at: - Library of the Banking Academy - National Library of Vietnam INTRODUCTION Urgency of the thesis topic To implement the marine economic development plan of Vietnam to 2030, with a vision to 2045 stated in Resolution No 36-NQ / TW dated October 22, 2018 of the eighth session of the 12th Party Central Committee, it is necessary to achieve synchronous development of 28 coastal provinces, including the South Central region That requires each locality to fully develop infrastructure such as roads, seaports, airports, restaurants, hotels, and high-quality human resources to meet the requirements for development There are high demands for developments from many factors, of which investment capital is an indispensable factor Therefore, the South Central region needs to have a complete solution from the outset by practically mobilizing capital from many different sources, including state budget capital, domestic and foreign capital It is necessary to utilize the great source of capital among people and businesses from many different economic sectors In addition, there should be measures to use capital effectively, thus creating a long-term vision to solve the capital issue to meet the needs of marine economic development In order for the marine economy (ME) in the South Central region to develop in accordance with the objectives and orientations, finding solutions to solve practical problems and continuing to increase investment capital for the marine economy is an important current issue Therefore, the author chooses the following topic "Investment capital for marine economic development in the South Central region" for the doctoral thesis with the aim of satisfactorily solving the capital problems to bring into play the potential of marine economy for development in the South Central region Literature review 2.1 Domestic studies There are quite many studies related to the research topic, however they were done long ago and there are many differences in guidelines and policies Therefore, they are no longer appropriate Within the scope of the topic, the author only refers to new works with similarities of the research scope Firstly, economic doctoral theses Regarding the issue of investment capital and raising investment capital for economic development of Vietnam in an area or a locality, implemented in recent times such as: Cao Tan Huy (2019), Nguyen Hong Ha (2015), Doan Vinh Tuong (2008), Bui Ba Khiem (2012), Do Thi Ha Thuong (2016), Ngo Van Thien (2017) Secondly, articles published in newspapers, magazines, scientific yearbooks Articles published in magazines, conference proceedings including: Nguyen Xuan Thien (2015), Ngo Tran Xuat (2017), Nguyen Hiep (2017), Le Thi Thanh Thuy (2013), Huynh Van Dang (2017), Doan Vinh Tuong (2014), Can Van Luc (2014), Nguyen Van Binh (2017) 2.2 International studies In the world, there are quite a lot of researches in the field of marine economy, typically the studies of Xu Zhibin (2003); Nazery Khalid (2011); Luara Eadie, Caroline Hoisington (2011) The studies all focus on analyzing and assessing the reality of marine economic development in countries around the world They mainly give a number of solutions towards sustainable development for marine economic activities, attracting investment in marine economic industries of the countries and of the world The above results provide useful suggestions and orientations for the author in the thesis writing process The author selectively inherits these results in the research process On that basis, the author completes the theoretical basis and adds important contents that have not been mentioned in the above works 2.3 Research gap and research questions 2.3.1 Research gap Firstly, there are a number of studies of the issue of investment capital for economic development in general and mobilizing investment capital for marine economic development in particular from different perspectives such as the study on mobilization investment capital for socio-economic development of Da Nang city by Vo Duy Khuong and the study to mobilie the non-state budget capital of Dang Thi Ha These studies mainly present capital mobilization channels for socio-economic development in general without examining the mechanisms and policies on investment capital for marine economic development Some other studies analyze investment capital for marine economic development such as investment capital for marine economic development in Khanh Hoa province by Doan Vinh Tuong and in Thanh Hoa province of Do Thi Ha Thuong; they not specifically focus on the South Central region Therefore, the study of "Investment capital for marine economic development in the South Central region" towards approaching domestic and international capital sources for marine economic development in the South Central region will have both theoretical and practical significance in the current period for this area Secondly, the theoretical and practical research results of the previous works mentioned above are valuable documents for review and application to the thesis topic at certain levels However, the thesis's content, scope, time and space are different from those of previous works The thesis approaches the issue of investment capital by each mobilization channel corresponding to each investment capital source for marine economic development in the South Central region In addition, the thesis limits the scope of practical research from 2015 to 2019 and proposes solutions for investment capital for marine economic development in the South Central region in the coming time Thus, it can be confirmed that the proposed research student dissertation does not coincide with the previous studies in terms of content, scope, time and space 2.3.2 Research question What is investment capital for marine economic development? What are capital components? What are characteristics of capital sources? What are factors that affect investment capital for marine economic development? What is the reality of the investment capital source for marine economic development in the South Central provinces in the period 2015 - 2019? What are the achievements, limitations and the causes for such limitations? What are required solutions on investment capital for marine economic development in the South Central region in the coming time? What are proposals to the Government and relevant ministries? These questions will be answered on a scientific basis with actual data on the reality of investment capital for marine economic development in the South Central provinces Research objective 3.1 Overall objective Based on the proposed theoretical basis, the thesis analyzes the current situation and from that proposes solutions for investment capital for marine economic development in the South Central region in the coming time 3.2 Specific objectives - Systematizing the theoretical basis of investment capital for marine economic development, including marine economy and marine economic development, investment capital for marine economic development; factors affecting investment capital for marine economic development; experiences in investment capital for marine economic development of some countries in the world and lessons for Vietnam - Studying and evaluating the reality of investment in marine economic development in South Central provinces in the period 2015 - 2019; assessing achievements, limitations and causes of limitations - Proposing solutions for investment in marine economic development in the South Central region in the coming time, and at the same time giving recommendations to the Government, agencies and industries Research object and scope 4.1 Research object The thesis focuses on investment capital sources for marine economic development 4.2 Research scope + Research period: from 2015 to 2019 + Research space: the thesis focuses on researching investment capital for marine economic development in the South Central region Research methodology With the focus on investment capital for marine economic development in the South Central region, the thesis uses a combination of qualitative research methods and quantitative research as follows: 5.1 Qualitative research + Data synthesis method + Data analysis method 5.2 Quantitative research - The thesis uses the survey method through questions related to the research issue - The thesis collects research data with survey questionnaires - The thesis presents preliminary assessment of the reliability and value of the scale by Cronbach's Alpha reliability coefficient, thereby eliminating unreliable observed variables The thesis also applies Exploratory Factor Analysis (EFA) through SPSS 22.0 processing software, thereby restructuring the remaining observed variables into the appropriate factors (measurement components) as the basis for the modification of the research model and research hypotheses, the content analysis and further testing - The thesis uses the multiple linear regression analysis to test the factors affecting investment capital for marine economic development in the South Central region, thereby calculating the significance of each factor New contributions of the thesis The thesis has theoretical as well as practical contributions + Firstly, most of the previous studies on investment capital for variable economic development mainly focus on qualitative research; very few authors use quantitative analysis models + Secondly, with rich and reliable sources of documents, the thesis has proven and helped to clarify the reality of investment capital and the need for investment capital for economic development of the South Central region during 2015 - 2019 + Thirdly, based on the reality of investment capital for the economic development of the South Central region through secondary data sources, combined with results of the survey and results of quantifying the factors affecting investment capital for the economic development of the South Central region, the thesis has drawn objective conclusions about the achieved results and especially detected many limitations and the causes of limitations in investment capital for marine economic development in the South Central region + Fourthly, the author has proposed a system of solutions and recommendations to increase investment capital for economic development in the South Central region in the coming years The proposed solutions given are based on scientific bases, of synchronous nature, suitable with reality and feasible The author hopes to contribute to help relevant agencies in completing policies on investment capital for marine economic development in the South Central region Structure of the thesis In addition to the introduction, conclusion, references, list of tables, figures, thesis has three chapters: Chapter 1: Marine economy and investment capital for the marine economy Theoretical issues Chapter 2: Reality of investment capital for marine economic development in the South Central region Chapter 3: Solution of investment capital for marine economic development in the South Central region CHAPTER MARINE ECONOMY AND INVESTMENT CAPITAL FOR MARINE ECONOMIC DEVELOPMENT - THEORETICAL ISSUES 1.1 OVERVIEW OF MARINE ECONOMY 1.1.1 The concept of marine economy From reviewing analyses, the author concludes that“ Up to now, there is no consensus on the concept of marine economy However, introduced concepts on domestic and foreign marine economy still generally consider marine economy as marine-related activities In accordance with Vietnamese law and international practice, within this thesis, the author states the concept of marine economy as follows: Marine economy means all economic activities that take place at sea and economic activities directly related to sea exploitation (activities that not take place at sea but are due to marine factors or directly serve marine economy activities on the coastal mainland); it includes the following fields - Fishery sector, including: fishing, aquaculture, seafood processing - Maritime economy, including: sea transportation, seaport services, ship building and repair - Sea and island tourism; rescue and security operations; - Mineral exploitation and processing technologies such as oil extraction and refining as well as other minerals, salt production 1.1.2 Marine economic sectors 1.1.2.1 Fishery 1.1.2.3 Sea tourism 1.1.2.4 Petroleum industry 1.1.2.5 Salt production 1.1.2.6 Development, research, application and transfer of science and technology in marine economic exploitation and development 1.1.3 Characteristic of marine economy Marine economy has the following main characteristics: Firstly, production activities are always associated with the exploitation of marine resources Secondly, the organization of production is dependent on natural conditions, the life cycle of the organism, and marine location Third, marine economy sectors are highly risky 1.1.4 Role of marine economy in economic development Firstly, marine economy contributes to making the fishery sector one of the key economic sectors Secondly, marine economy helps tourism thrive Thirdly, marine economy contributes to industrial development Fourthly, marine economy contributes to ensuring national security, defense and maintaining independence 1.2 INVESTMENT CAPITAL FOR MARIEN ECONOMIC DEVELOPMENT 1.2.1 The concept of investment capital for marine economy 1.2.1.1 Investment capital 1.2.1.2 Investment for development 1.2.1.3 Investment capital for marine economic development 1.2.2 Sources of investment capital for marine economic development 12.2.1 Domestic investment capital a/ Investment capital from the state budget b/ State credit capital c/ Bank credit capital d/ Capital investment from businesses and the people 1.2.2.2 International investment capital a/ Official Development Assistance (ODA) capital b/ Foreign Direct Investment (FDI) 1.2.3 The role of investment capital for marine economic development Firstly, investment capital in the marine economy will help change the economic structure towards maximizing the strengths of each region Secondly, investment capital in the marine economy contributes to human resource training, capability improvement of the workforce in the marine economic industry Thirdly, investment capital in the marine economy will affect marine economic development , laying the foundation for solid economic development Fourthly, investment capital in marine economic development affects the growth of other economic sectors 1.2.4 Factors affecting investment capital for marine economic development 1.2.4.1 Subjective factors a/ Material facilities, infrastructure, and public services b/ Capability of entities engaging in the marine economy c/ Quality of the human resource 1.2.4.1 Objective factors a/ Macroeconomic environment b/ Natural environment 1.2.5 Criteria for evaluating investment capital for marine economic development 1.2.5.1 Scale of investment capital mobilization for each marine economic sector 1.2.5.2 Ratio of realized investment capital compared to requirements and plans 1.2.5.3 Investment capital growth 1.2.5.5 Investment capital structure 1.3 EXPERIENCE OF INVESTMENT CAPITAL IN MARINE ECONOMIC DEVELOPMENT OF SOME COUNTRIES IN THE WORLD AND LESSONS FOR VIETNAM 1.3.1.1 Experience from China 1.3.1.2 Experience from Singapore 1.3.1.3 Experience from Malaysia 1.3.2 Experience lessons of investment capital for marine economic development in Vietnam Vietnam needs to learn from experiences of predecessors and selectively inherit useful lessons about investment capital for marine economic development Some key contents to be focused on are: - Policy planning needs coordination and consensus among the Government, businesses and people to reach specific goals Direct support policies for each target group should be issued based on data that lists specific objects having access to policies from localities - Focus should be given on promulgating preferential policies to encourage domestic and foreign investment for each specific sector It is necessary to have appropriate solutions in implementing policies for economic entities in order to ensure their access to policies For example, credit policies for investment in the development of the fisher sector should clearly state the content of ships that are newly built or upgraded in a specific category for each group of subjects that have access to policies on financial incentives and credit support - In addition, development support policies for each sector are also considered necessary, including: upgrading infrastructure and information technology; focusing on developing human resources for marine economy; reforming the public service system to attract investment capital 11 b/ Investment capital from the State credit for marine economic development In performing the tasks assigned by the Government and the Prime Minister, the Vietnam Development Bank (VDB) of the South Central region has been lending investment projects, contributing to strengthening technical facilities, economic development and restructuring towards industrialization and modernization and creating a driving force for the development of key industries or sectors under the Government's policy such as electricity, cement, shipbuilding and shipping, railway carriage building, chemicals, and processing industry (agricultural and fishery processing projects) Table 2.8 Vietnam Development Bank’s lending for marine economy in the South Central region during 2015-2019 Unit: Billion VND, percentage (%) No Target 2015 2016 16/15 2017 (%) 17/16 2018 18/17 (%) 2019 19/18 (%) I Fishery sector 1.845 1.989 7,8 2.284 14,8 2.416 5,7 2.573 II Maritime economy 4.655 4.878 4,7 5.160 5,7 5.650 9,4 6.226 10,2 Total 6.500 6.867 5,6 7.444 8,4 8.066 8,4 8.799 6,5 9,1 (Source: Authors' compilation from reports of Vietnam Development Banks in provinces of the South Central region) In the period 2015–2019, VDB in the South Central region had a steady increase in loan for the seafood processing sector over the years: 2015 - VND 1,845 billion in 2015; 2016 - an increased of 7.8%; 2017 an increase of VND 295 billion, or 14.8% compared to 2016; 2018 - an increase of 8.4% By 2019, loan for seafood processing reached 2,773 billion VND, an increase of 6.5% compared to 2018 c/ Investment capital from bank credit for marine economic development Bank lending in the marine economy is receiving increasing attention On one hand, bank credit focuses on implementing policies of the Party and State towards marine economic development On the other hand, bank credit effectively serves the needs of loans for production and business activities of economic organizations and individuals operating in the fisheries sector, hotel business, tourism, and shipping, ship and seaport building The system of commercial banks in the South Central region over the years has disbursed capital for marine economy industries with increasing numbers over the years, contributing to capital support for marine economy entities For marine economy entities, bank loans mainly finance working capital In the long term, however, bank credit will act 12 as a leading initial capital to attract other capital sources for marine economic development 6000 5000 4000 Fishery sector 3000 Sea tourism Maritime sector 2000 1000 2015 2016 2017 2018 2019 Figure 2.2 Lending of commercial banks for marine economy during 2015-2019 (Source: Synthesized data from the State Bank of the provinces in the region and author's calculations) d/ Investment capital of businesess and the people for marine economic development To attract investment capital into marine economy, over the past years, local governments in the South Central Region have had open policies and policies to create favorable conditions for businesses and people to invest capital in marine economy In thoroughly grasping and implementing the tasks and solutions of the Government's Resolution No 35 / NQ-CP dated May 16, 2016 and based on the actual situation of each locality, the provinces also increasingly encourage all classes of people to attract local investors and investors across all sectors, especially marine economic sectors Table 2.10 Number of newly established enterprises and total registered capital Unit:Billion VND, percentage (%) Criteria 2015 2016 2017 2018 2019 No of established 1.760 2.344 2.608 3.072 3.758 enterprises Total registered 12.230 16.642,4 19.560 24.576 25.052 capital Enterprises in ME 440 565 621 752 821 Total registered capital of enterprises 3.015 4.112,6 4.820,3 6.012,5 6.974 in marine economy (Source: Information portal of the Ministry of Planning - Investmen and compilation of the author) 13 2.2.2.2 International investment capital a/ FDI capital In recent years, localities in the South Central region have stepped up the reform of administrative procedures, continued to direct branches and levels to solve difficulties and problems to create the most favorable investment and business environment for exploiting internal resources and attracting maximum external resources for development so that the South Central region will become a reliable and attractive destination for the investors Many local governments have organized many programs and conferences to promote investment; many representatives of central ministries, domestic and foreign economic delegations attended such conferences This helps to strengthen the promotion, introduction activities and to take advantage of the support from the central ministries to add the most favorable mechanisms to attract investors At the same time, this aims to build projects on economic development, industries and special economic zones with advantages in natural resources and infrastructure Table 2.11 Results of FDI mobilization for marine economy South Central Region during 2015 - 2019 Unit: million USD Da Quang Quang Binh Khanh Phu Binh Ninh Locality Nang Nam Ngai Dinh Hoa Yen Thuan Thuan No of project 775 218 68 87 113 47 147 52 5.534,9 6.126,5 1.844,7 802,5 4.298,5 1.989,4 3.730,3 1.710,8 1.346,3 1.415,8 450,6 206,7 1.004,8 Total FDI capital FDI capital for ME 498,2 912,6 327,5 (Source: Information portal of the Ministry of Planning - Investment and compilation of the author) 2.2.3 Summary of investment capital sources for marine economic development Through the above analysis, we can see that, in recent years, the South Central region has implemented mechanisms and policies to allocate and mobilize domestic and foreign capital for investment in marine economic development of the region which provides a relatively large source of capital for investment in the marine economic development of the region The reality of investment capital for the marine economic development the South Central region is summarized in the following table: 14 Table 2.12 Synthesis of investment capital for the marine economic development province in the South Central region in the period of 2015 - 2019 No Target Investment capital scale Unit 1b State credit Billion VND 1c Bank credit Billion VND 1d Enterprises, 2a Capital Capital from from state credit 2c Capital from bank credit 2d Enterprises, people’s capital 6.500 2019 Capital growth 7.444 8.066 8.799 3.015 4.112.6 4.820,3 6.012,5 6.974 % 100 100 100 100 100 % 49,9 51,0 48,8 46,6 44,9 % 18,9 16,0 16,1 15,5 15,3 % 22,2 23,3 24,7 26,3 28,1 % 8,7 9,6 10,4 11,5 11,7 24,8 8,2 12,4 10,6 % rate 6.867 7.646,6 9.986,3 11.480,2 13.734,7 16.177,5 Billion VND state budget 2b 2018 17.150,7 21.852,6 22.585,4 24.298,9 25.916 Billion VND Capital ratio 2017 34.312.3 42.818,5 46.329,9 52.112,1 57.633,5 State budget 2016 Billion VND 1a people’s credit 2015 - (Source: The autor’s compilation) 2.3 ANALYSIS OF FACTORS AFFECTING INVESTMENT CAPITAL FOR MARINE ECONOMIC DEVELOPMENT THE SOUTH CENTRAL REGION 2.3.1 Theoretical basis of the research issue 3.1.1 Some research models in the world 2.3.1.2 Some domestic research models 2.3.1.3 Proposed research model 2.3.1.4 Research hypothesis 2.3.1.5 Building of measurement scales for variables 2.3.2 Research design 15 3.2.1 Research process a/ Qualitative research b/ Quantitative research 3.2.2 Research data and information collection method 2.3.3 Quantitative research results 3.3.1 Descriptive statistics 2.3.3.2 Exploratory factor analysis on the influence level of factors a/ Identifying factors b/ Testing the model c/ Applying Exploratory factor analysis 2.3.3.3 Regression analysis 2.3.4 Discussion of research results Research results in the quantitative section show that there are factors positively impacting investment capital for marine economic development the South Central region, as the research hypothesis sets forth To determine the influence level of factors VM, TN, CS, NL, CL on VD, coefficient β is used as the basis The greater the absolute value β of the factor, the higher the influence on the investment capital and vice versa Quantitative research results are consistent with qualitative research results, ranked in order of importance from to 5, including: - Factor of material facilities, infrastructure, and public services (CS): This is the factor that has the most impact on investment capital for marine economic development in the South Central region A value of β equals 0.303 (β> 0) means that good facilities, infrastructure, and public services will provide good support for marine economic development, which in turn will have a positive impact on investment capital for marine economic development South Central This result is also consistent with qualitative research results Therefore, in order to increase investment capital for marine economic development, the government must invest in key material facilities and infrastructure such as roads, electricity and water systems leading to industrial zones and coastal resorts … and improve existing public services which are the foundations to attract investment - The capacity of marine economy entities (NL): This is the second most important factor affecting investment capital for marine economic development ( after CS) with β value = 0.291 Qualitative research also shows that entities with strong capital capacity; low capital cost, high-tech facilities and equipment, and high-quality workforce positively influence investment capital in marine economic development This is also consistent with the results 16 of quantitative research - Macro factors (VM): This is the factor that has the third most influencing on investment capital for marine economic development in South Central Vietnam (β = 0.226) In the qualitative research, all businesses think that this is a social issue; attracting investment capital for marine economic development is the responsibility of the government, society and the people In order to attract this capital, the government must have synchronous policies for legal support (quick administrative procedures; open policies, policies ), investment capital sources (long-term capital from the state budget, encouraging commercial banks to lend marine economic development…), macroeconomic stability (GDP growth, inflation rate control ) Therefore, in order to increase investment capital for marine economic development, the government plays a particularly important role in the expansion and development of this capital - Quality of human resources (CL): Quantitative research results show that this is the fourth most important factor affecting investment capital for marine economic development (β = 0.191) The coefficient β> shows that the more experience in production, stable income people have and the longer residence period, the more investment capital for marine economic development can be attracted The results of this study are also consistent with preliminary research results when enterprises think they are interested in the area with people of working age, production experience, high income - Natural factors (TN): This factor has positive impact on investment capital for the South Central marine economic development (coefficient β = 0.156> 0), consistent with qualitative research (rich marine potential, good climate conditions are the primary drivers of marine economy performance) Since the coefficient β is the smallest relative to the coefficient β of other factors, this is the factor influencing investment capital for marine economic development but is of less interest to investors than other factors listed above This is also quite reasonable because natural conditions are an objective factor; people can only forecast and prevent natural disasters 2.4 GENERAL ASSESSMENT OF THE REALITY OF MARINE ECONOMIC DEVELOPMENT IN THE SOUTH CENTRAL REGION 2.4.1 Achieved results Firstly, investment capital marine economic development is diversified Second, the proportion of non-budget investment capital marine economic development is increasingly high Third, investment capital has been attracted into many different industries and sectors of the marine economy 17 2.4.2 Limitations and causes a/ Limitations Firstly, the scale of domestic investment capital is still low compared to demand For state budget capital For development investment capital of the government For bank credit capital For capital from businesses and the people Secondly, FDI capital is not high compared to other regions and is not compatible with the region’s potential b/ Causes  Subjective causes * For state budget capital The implementation of the decentralized state management contents of localities over the past time has still been limited; the quality and efficiency are not high and the and there is a lack of synchrony The planning of investment policies is not consistent, leading to cases when adjustment must be made in the process of implementing investment projects, There are even cases where the objectives of the project must be changed, causing losses for the state budget and negatively affecting the results and efficiency of investment * For bank credit capital Low accessibility to bank credit * For investment capital sources of businesses - There are few investment promotion programs which have not been able to showcase the role and contribution of marine economy As a result, investment in marine economy industries is limited and not compatible with local advantages - The investment incentive policies of the region have not really come into practice in the implementation process - Although the allocation of capital is consistent with the orientation and planning, many businesses lack support, guidance and favorable conditions in production, business and investment * For foreign investment capital - Firstly, the investment promotion and marketing activities are not really effective; many foreign investors want to invest in Vietnam but have not yet been able to access a lot of necessary information Good projects have not been prepared during promotion activities 18 to attract investors There is no proactiveness in attracting investors - Some investors encounter difficulty in investment registration procedures which cost time and expenses - Infrastructure is weak and not developed synchronously Therefore, the infrastructure does not offer many advantages for industrial development and hinders the promotion of internal resources and attracting external forces, especially for foreign investment projects  Objective causes * For the government’s investment credit - Because the government’s investment credit is from the state budget, the use of these capital sources must comply with very strict regulations of law related to many different fields (construction investment, bidding, auditing financial statements ) - The authority to deal with risks of the VDB is limited, so the handling of investment capital risks has encountered many problems over the past few years It is because the measures that banks have applied many times not radically solve risks that arise or has no significant effect in supporting businesses with loans to overcome financial difficulties * For bank credit The majority of marine economic entities not have access to this source of capital due to inadequacies in the process of getting loans at banks such as collateral regulations, loan conditions Besides, commercial banks are not interested in lending to marine economic sectors - For loans mortgaged by fishing vessels, banks have difficulty in seizing and liquidating assets Moreover, when a fishing vessel buys insurance when a risk occurs, it also involves many agencies certifying and proving the risk so it is easy to be denied compensation for insurance - For working capital loans for fishing, the fishing industry depends heavily on the weather; the fish resources get increasingly depleted; the fishermen's income are unstable; capital investment is potentially highly risky; banks are difficult to control cash flow of customers because fishermen go fishing far away from the area - The fluctuation of gasoline price makes input costs higher, but the output price is forced down by traders, so the efficiency from fishing is always in a state of instability - The above reasons cause commercial banks not to take initiative in lending to this field, ... Systematizing the theoretical basis of investment capital for marine economic development, including marine economy and marine economic development, investment capital for marine economic development; ... Reality of investment capital for marine economic development in the South Central region Chapter 3: Solution of investment capital for marine economic development in the South Central region. .. and foreign capital for investment in marine economic development of the region which provides a relatively large source of capital for investment in the marine economic development of the region