Tóm tắt Luận án Mobilizing financial resources for investment in socio-economic infrastructure in Mong Cai international border gate city

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY
NguyEn viEt dUng Mobilizing financial resources for investment in socio-economic infrastructure in Mong Cai international border gate city Major: Finance - Banking Major code: 62340201 HA nOi, 2016 THIS THESIS HAS BEEN COMPLETED AT NATIONAL ECONOMICS UNIVERSITY Supervisor 1: Assoc.Prof.Dr. Le Hung Son Supervisor 2: Dr. Cao Thi Y Nhi Reviewer 1: Assoc.Prof.Dr. Nguyen Huu Anh Reviewer 2: Assoc.Prof.Dr. Nguyen Hong Thai Reviewer 3: Dr. Pham Phan Dung The thesis will be defended at University Assessment Council, National Economics University at.............................. 2016 The thesis will be found in: - The National Library - The Library of National Economics University 1 INTRODUCTION 1. The necessity of the thesis Mong Cai is an important geopolitical and geoeconomic place with a strategic position in the development of economy, politics, national defense, security and foreign affairs. With 72 kilometer long border and international border gates on land and sea, Mong Cai is a intersection converging two corridors one economic development belt Gulf coast - one of the economic exchange gate between Vietnam - ASEAN with China, which has the largest and the most dynamic economy in the world. China also has a large market with rapid growth and pervasiveness power. After more than 25 years of normalized relations with China, thanks to taking the absolute advantage of the geographical location and the particular concern of the Central Government and Quang Ninh province through the implementation of several pilot mechanisms and specific financial policy at gate areas to create investment resources for developing economic and social infrastructure, Mong Cai has achieved rapid development from an agricultural district to outdated marketing town and now a city borders, with the rapid pace of development in comparison with other towns and cities in Quang Ninh and Chinese localities which has the border with Mong Cai. However, the specific mechanisms and financial policies of Mong Cai is only performed over a period of 8 years (from 1995 to 2003). Investment resources for socio - economic infrastructure are not commensurate with the potential advantages and it is decreasing sharply due to changes in the border trade policy, immigration, exports and imports at the border area of Vietnam with China. After China put down the drilling platform in the South China Sea in 2014, the activities of socio-economic development in Mong Cai are unstable and this reveals many difficulties and challenges, such as: weak competitiveness ,bad production capacity because of the lack of development conditions, small population size; transportation infrastructure, parking and gate, commercial centers, tourism, services, financial deficit, weak; high quality human resources have not met the requirements of development. The policy mechanisms and institutions, the current management has not attracted the resources to make a breakthrough development, especially infrastructure and manpower. Meanwhile, Dongxing, Guangxi Zhuang Autonomous Region of Guangxi Province in China, which have lower starting point than Mong Cai, are growing rapidly thank to the pilot implementation of key development Dongxing" done by the state of The people Republic of China. It is the pedal and breakthrough for China's development, entering the ASEAN market; It also gives Dongxing mechanisms, special preferential policies, such as investment, tax incentives, priority investment resources from the central budget. The development policy of China Dongxing has created opportunities for Mong Cai city to develope rapidly, especially in the field has many advantages such as trade services, transport, tourism; Mong Cai has put back into the world facing new challenges and the level of competition more fierce, demanding Mong Cai must quickly develop to become a city partner status on par with cities in China. In the situation, recognizing that, in order to avoid left behind by cities in the coastal economic corridor Tonkin Gulf and the cities on the other side of the border, Mong Cai should 2 promote the best advantages on the basis of the maximum use of resources from all domestic and abroad economic sectors to develop. The study and proposal mechanisms, policies and measures for mobilizing resources to build Mong Cai become an international border gate city is considered as a very necessary and urgent task.Approaching the problem from the national interest with the general vision, comprehensive and long-term to determine the direction, goals, measures, mechanisms and financial policy formidable strategic in nature, looking out the key stage, breakthrough to concentrate investment and development resources; which, it should prioritize the financial resources for the construction of important infrastructure projects, creating the foundation developed city. At the same time, recognizing that, Mong Cai City will join the northern border city (Lao Cai, Cao Bang, Lang Son) quickly upgrade, rapid development to overcome the lag quickly, tend to become the difference in "class" than the city across the border, leading to many restrictions, loss of development cooperation, not only individually but also locally in the whole country. According to the development trend, the pattern that Mong Cai should be pointed to is a modern international border, which is competitive in a position to partner with the city opposite side of China as well as many other cities in the region. In the near future, it needs enough resources to invest in building a number of key infrastructure projects to create a breakthrough development in order to exploit the potential and advantages for socio-economic development of the city. With the potential, advantages, opportunities, challenges and the development orientation of Mong Cai, I find that there are many different resources needed to build Mong Cai become a modern administrative economic unit. Mobilizing financial resources plays a very important role for the implementation and concretization of the objectives set out. Therefore, I decide to choose the thesis title "Mobilizing financial resources for investment in socio- economic infrastructure in Mong Cai international border gate city". 2. The purposes of the thesis - Study theoreotical and practical basis of mobilizing financial resource for socio- economic infrastructure investment of local governments (provincial). - Analyze of the impact of specific factors that have an impact on financial resource mobilization of the border gate cities in general and Mong Cai international border gate city in particular. Analyze and evaluate the current status of investment in socio-economic infrastructure and current status of mobilizing financial resource in Mong Cai city. - Forecast demand for capital to invest in socio-economic infrastructure in Mong Cai from 2015 to 2020. - Recommend and propose effective measures to mobilize financial resources for socio- economic infrastructure investment in Mong Cai city. 3. The research scope: - Content: The scope of the study is defined as the mobilizing financial resources for socio-economic infrastructureinvestment. However, the main content of the thesis will focus on financial resource mobilization undertaken by local governments for investment in socio- economic infrastructure projects associated with particularities border gate cities. 3 - Space: The research is done in Mong Cai city. - Time: The data and the status of mobilizing financial resources from 2000 to 2015 in Mong Cai city, Quang Ninh Province. Using data from 1996 to analyze, compare and compare. 4. The research objects and methodology 4.1. The research objects The research obiects of the thesis are defined as financial resources and other forms of mobilizing financial resources for socio-economic infrastructure investmentin border cities under province. 4.2. The research methodology Based on the theoretical basis of the history of economic theories and related theories such as theory of economic growth, public finance theory and based on the methodology of dialectics and historical materialism, this thesis is done by using following methods: - The combined analysis, combining the results of the analysis to the qualitative and quantitative interpretation and conclusions to research issues. - Statistics descriptive and qualitative analysis: collecting and comparing time series data for the mobilization, trade, tourism, GRDP, ... to see the changes between the moment. - Quantitative analysis: approach by VAR econometric model (Model vector autoregression). Quantitative models are made by the accreditation necessary to assess the impact, the ability of the factors affecting the characteristics of the city gate, the border to mobilize financial resources. 5. The research questions - How will specific factors affect mobilizing financial resources for socio-economic infrastructure investment of the border gate city? - What are the relationship between investing in socio-economic infrastructure and import and export, tourism, cross-border payment activities? - What are the limitations in mobilizing financial resources for socio- economic infrastructure investmentin Mong Cai city? - Which solutions and channel of financial resource mobilization will fit Mong Cai city which has specific characteristics and depend on the economic policies of China? 6. New contributions of the thesis 6.1. New contributions on academics and theory Firstly, based on the findings of specific characteristics that are present at the border gate city, this thesis approaches the issue of mobilizing financial resources towards investment in social and economic infrastructures that are in favour of local particularities. In addition to traditional public sector resources, this thesis argues and analyses in detail the mobilization of financial resources from the private sector and abroad. The comments that are being raised regarding the duality of this resource mobilization is the basis for the thesis analysis, which is made explicit through the local case of Mong Cai international border gate city. 4 Secondly, this thesis analyses the impact of multiple factors affecting the specific characteristic of the border in general and, in particular, the city of Mong Cai international border gate. The factors affecting financial resource mobilization are mainly trade activities with other world sea ports; export and tourism; cross-border payments; economic policy and external border-country relations. 6.2. New practical contributions - The results of the research can be applied immediately on the mobilization of resources in the city of Mong Cai. - The thesis proposes a number of measures to help local authorities and stakeholders to consider and make decisions on cooperation and implementation of methods to mobilize financial resources for investment in economic infrastructure socio city Mong Cai international border gate. - Works will be useful reference for anyone interested in the mobilization of financial resources at the local particularities of the border, the border gates; and more research on border trade activities and payments between Vietnam dong and the yuan at the border. 7. Structure of the thesis Apart from the introduction, the conclusion, the list of references and 17 appendices, the thesis consists of 4 chapters. CHAPTER 1 OVERVIEW OF THE RESEARCH SITUATION 1.1. Generalresearches on mobilizing financial resources Most researchers focused on mobilizing the State financial resources that can be used to raise funds for the economy, such as capital mobilization channels through the state budget, the issuance of bonds, ODA mobilization and rearrangement of state enterprises, attracting deposits through the banking system,... much of this research study to mobilize financial resources from multiple channels in general, different sources. The advantage of this approach allows us to have a general view of mobilizing investment capital for social development. However, due to the general mentioned, it does not have the conditions going into the analysis of the problem, the different perspectives of each mobilization channel, each different financial resources... 1.2. Reseaches on channelsof financial resources mobilization So far, there is plenty of researches on the mobilizing financial resources that focus on some channels to mobilize financial resources such as: channel to attract savings in the bank, through the stock market, bond issuance votes, mobilization of financial resources in the form of public-private partnership,... The advantage of those researches is that they focused on a channel to mobilize financial resources so they can have a deep analysis some specific aspects of that channel. Apart from the reseaches on mobilizing financial resources from the public sector, public-private partnership PPP, some researches focused on mobilizing financial resources from the private sector. These studies have investigated overal different channels to raise funds, focusing on: (1) study on mobilizing private financial resources for a specific goal, such as the 5 development of education, health, etc...; (2) study overall channels of mobilizing financial resources from the private financial sectors for the economic development goals of the society. With local provincial and especially in specific areas anonymous pilot, there is not a plenty of researches on test solutions, mobilizing mechanisms. 1.3. Experience of some countries and cities in Vietnam in the field of mobilizing financial resources for socio-economic infrastructure investment and the lessons drawn from it 1.3.1. The experience of some countries in mobilizing financial resources infrastructure investment development Japan: diversified investment resources, efficient exploitation of domestic financial resources; develop policies to encourage private sector participation in the project. - Loans and financial investment through bond issues at all levels; Established corporations user charging, release the bonds that link; Establish separate accounts for projects invested by central revenues from users and through its own taxes. Korea: identified the key role of government investment in infrastructure; developed mechanisms and policies to encourage all economic sectors to invest in social and economic infrastructure; bond market development. Indonesia: improved policy, legal and institutional order to attract investment in infrastructure development. Singapore: promoted privatization in building socio-economic infrastructure; enhanced the development plan zones economic export experience, knowledge, planning and building sustainable infrastructure to become a successful business areas and profitability. Shanghai (in China): developed stock market and bond market, through the tool; borrowing from the international financial institutions; lease and land swap; Contract mining right transfer activities; development of capital markets; Cooperation between the public and private sector. The experience of the city of Dongxing (China) applied a special mechanism on finance, tax and special support from the central budget and Guangxi; Priority attract private resources; established national company specializing in infrastructure investments in pilot areas. United Arab Emirates, the difference in attracting resources through the successful application of these mechanisms, specific policies such as modern institutions, is a large decentralized; tax incentives, Imex, freely convertible foreign currency, assets, ... 1.3.2. The experience of some provinces and citiesin Vietnamin mobilizing financial resources for investing in socio-economic infrastructure Da Nang: exploit and efficient use of financial resources of land for economic development - society, including measures such as removing bottlenecks in compensation, clearance; planning the overall mobilization of resources for development investment; improve the efficiency of planning, urban management, administrative reform. Ho Chi Minh City, succeeded in attracting FDI through measures such as innovation in the selection of investors; innovative ways of investment promotion; Create land bank is ready to attract investment; good management plans; Investment socialized public service sectors and economic infrastructure services. 6 1.3.3. The lessons drawn from other countries and localities in Vietnamin mobilizing financial resources for socio-economic infrastructureinvestment - Formulation and planning management must take one step forward. - Efficient use of land funds to create financial resources from the earth. - Use good mobilization channel from private capital, promote market government bonds and corporate bonds. - To carry out specific financial mechanism, focusing on a number of economic areas, a group of infrastructure projects to encourage motivation to invest in infrastructure projects. - There are administrative institution - the modern economy with streamlined bureaucracy, effective; simple administrative procedures, fast and transparent. 1.4. Research gap of the thesis Research on mobilizing financial resources for socio-economic infrastructure investment done by local government under province with the specific features on border, border trade and tourism of a city which has the border with China. CHAPTER 2 THEORETICAL BASIS OF MOBILIZING FINANCIAL RESOURCES FOR SOCIO-ECONOMIC INFRASTRUCTURE INVESTMENT 2.1. Financial resources for socio-economic infrastructure investmentin localities 2.1.1. An overview of the socio-economic infrastructure and socio-economic infrastructure investment in localities 2.1.1.1. The concept of socio-economic infrastructure Socio-economic infrastructure is understood as the whole material conditions, technique, operation mechanism, social institutions equipped with the physical elements and the environment to serve the production activity and human life. 2.1.1.2. The concept of socio-economic infrastructure investment Investment in socio-economic infrastructure is a basic content ofdevelopmentinvestment. It is the process of using the existing resources in order to carry out activities to maintain, upgrade, expansion or creation of infrastructure facilities to meet the social and economic objectives of growth and development social economy of each country or locality. 2.1.1.3. Classification of socio-economic infrastructure Classification of infrastructure: based on specific characters; socio-economic sector and and economic sector. The infrastructurehas many features such as high systematics, forwardness and modernity. Amount of money invested in infrastructure projects is often very big and the time is long. 2.1.1.4. The role of socio-economic infrastructure for the socio-economic development Socio-economic infrastructure plays an important role for the socio-economic development of a country, created the impetus for the development. If the infrastructure develops in a synchronous and modern way, it will promote sustainable economic growth, improving the efficiency of the economy and make a contribution on solving social problems. 7 2.1.2. Financial resources for socio-economic infrastructure investmentin localities 2.1.2.1. The concept and characteristics Financial resources for socio-economic develo