Luận văn Solutions for industrial zones development in the central key economic region

Thirdly, solutions for industrial zones development have been reviewed, researched and developed for each specific case in localities but there is a lack of a global overview for a key economic region due to the lack of analysis data and current situation comparison. The study of the current situation of development of industrial zones in the Central key economic region in the thesis has only a comparison with other domestic key economic regions, but will also provide a clearer picture of the current level of industrial development between areas of Vietnam, thereby orienting more appropriate solutions for the development of industrial zones in the Central key economic region. Stemming from the aforementioned issues, the postgraduate realized that it was a research gap that the international and domestic researchers had not done before, especially in the Central key economic region. Therefor, this is an opportunity for me to continuously study systematically and generally the situation of building and developing industrial zones, factors affecting the development of industrial zones in the Central key economic region. On that basis, proposing solutions to develop industrial zones in the Central key economic region in linking regional, local and nationwide. CHAPTER 2 THEORETICAL AND PRACTICAL BASIS OF INDUSTRIAL PARK DEVELOPMENT 2.1. Overview of industrial zone 2.1.1. Definition, characteristics and classifications 2.1.1.1. Deffiniion of industrial zone and industrial zone development - An industrial zone is a place where enterprises produce and trade industrial goods and services in a given territorial space, which is established in accordance with the laws of each country with the general conditions for infrastructure linkage, development mechanisms and policies. - Industrial zone development is a process of increasing both in terms of area size, investors or enterprises produce and trade industrial goods and services, and efficiency in the operation of industrial parks in accordance with the change of society, science and technology and strategies for economic and industrial development of each country in each period. Whereby: - Development of industrial zone by quantity (width) for an industrial zone is the expansion of the area in adjacent or adjacent boundaries, which is able to connect and use technical infrastructure with pre-formed industrial zones and it is also the attraction of more investors, etc. For a locality or a territory, development of industrial zone is the increase in the number of industrial parks, the area of industrial zones, investors in industrial zones. It is also the synchronization of activities in the industrial zome and the linkage of industrial zones to form cluster. - Development of industrial zone according to quality (depth) is the improvement of the efficiency of each industrial park associated with in-depth investment on the basis of improving, synchronizing, modernizing current technical and material facilities, developing human resources, investing and upgrading the management apparatus, management methods of enterprises, etc. - Industrial zone development according to the system: Today the traditional industries no longer reflect the actual business. The boundaries between traditional industries are erased by the dynamics of businesses and the fragmentation and merger of markets. Products tend to integrate technologies from many manufacturing industries and the demands are almost met by a variety of products [19]. Similarly, the independence between enterprises in industrial zones or between industrial zones in a region is only relative and it is needed to consider the movement and development of enterprises in a tightly linked network system as an industrial ecosystem. Thereby, it can be seen from the perspective of a locality or a territory, the development of industrial zones is also reflected in the structure (systematic) in each industrial zone and the relationship between industrial zones in the area; The first stage is to develop in width, until the process of industrial park development reaches a certain level, the industrial zones will gradually shift to depth development and form a reasonable structure, industrial clusters and business ecosystem among the industrial zones of the Region. 2.1.2. The role of the industrial zone 2.1.3. Economic theories related to industrial zone development 2.2. Developing industrial zones in the key economic region 2.2.1. Overview of key economic region 2.2.2. Contents and criteria for evaluating the development of industrial zones in the key economic region 2.2.3. The role of industrial zone development in the key economic region 2.2.4. Factors affecting industrial zone development 2.3. Experiences in industrial zone development and lessons for the Central key economic region 2.3.1. International and domestic experiences 2.3.2. Reference lesson for the Central key economic region CHAPTER 3 FEATURES OF RESEARCH AREA AND RESEARCH METHODS 3.1. The Central key economic region 3.1.1. Natural conditions of the Central key economic region 3.1.2. Potential, strengths and limitations of the Central key economic region 3.1.3. Socio-economic characteristics of the Central key economic region 3.2. Research Methods 3.2.1. Methods of collecting data information 3.2.1.1. Secondary data - Using the desk-based method to collect, classify, copy, research guidelines and policies of the Party and the State; reports, statistical documents of the Ministries, central agencies and branches, mainly of the Department of Management of Economic Zones (Ministry of Planning and Investment); Statistical yearbooks and reports of the Management Boards of industrial zones in provinces and cities in the Central key economic region, etc; published results of forums, conferences and seminars related to the theory and experience of industrial zone development in some countries and localities in the country, reports of provincial competitiveness index (PCI). The data is used from official sources, publicized and guaranteed to be reliable. 3.2.1.2. Primary data - Survey method: Used by distributing questionnaires directly and via personal email to managers working at the Management Board of Industrial Zones and Export Processing Zones; Department of Planning and Investment, Department of Industry and Trade and Investment Promotion Centers of provinces and cities in the region and Management Board of each industrial zone or enterprise investing in industrial zone infrastructure in the Central key economic region. The content of questionnaire is asking for evaluation of factors affecting the industrial zones development in the Central key economic region, the contribution of industrial zones to economic growth, the spillover effects of industrial parks with the innovation of science and technology, internal structure movement of local economic regions; linkage and cooperation between enterprises in industrial zones, policies on training and remuneration for employees of enterprises operating in industrial zones in the Central key economic region, proposing solutions to promote the industrial zones development of the Central key economic zone. - Expert method: Used by exchanging and discussing with 10 policy makers, economists and scientists. The content of discussion related to the criteria for overall assessment of industrial zone development in the Central key economic region, the current development status, opportunities and challenges for the development of industrial zones, proposing solutions to promote the development of industrial zones in the Central key economic region. In particular, the author also discussed with experts on econometric models and variables in the model used to evaluate the development of industrial zones. Suggestions for the author to use the variables representing the development of the industrial zones - the dependent variable is the industrial zones value of the industrial park per 1% filled and the dependent variables. 2.2.2. Methods of analysis To analyze the factors affecting the development of industrial zones, this study will be based on the model (1). Production function Q = A.X1β1X2β2.Xnβn (1) In which: Q is the dependent variable - output of production; A is a variable representing production technology; X is the independent variable - input to production; β: The contribution ratio of the factors. This model will be converted to logarithmic form and specific independent variables associated with the region's characteristics for analysis. CHAPTER 4 ASSESSMENT RESULTS OF THE CURRENT SITUATION OF INDUSTRIAL ZONES DEVELOPMENT IN THE CENTRAL KEY ECONOMIC REGION 4.1. The current situation of industrial zones development in the Central key economic region in quantity 4.1.1. Scale and operational status of industrial zones in the Region By the end of December 2018, the Central key economic region had 19 industrial zones that were approved by the Prime Minister and are currently implementing projects (an increase of 1 area compared to 2013), accounting for 5.8% of the number of nationwide licensing industrial zones. The industrial zones have a natural land area of 4,317 hectares (an increase of 234.1 hectares compared to 2013), an area of industrial land that can be rented for 2,966 hectares (an increase of 119 hectares compared to 2013) and has been leased (including industrial zones under construction but had a land lease project of 1,798 hectares (an increase of 333 hectares compared to 2013); compared to the whole country, corresponding to 4.5%; 4.5% and 5.03%. The scale of diversified industrial zones, average area of 1 industrial zone is nearly 227.2 hectares, lower than the national average level of the whole country (the area of industrial park area of the whole country is nearly 293 hectares). Of the 19 established industrial zones, 14 have been put into operation with a total natural area of 2,708 ha, the area of rentable land is 1,937 ha, of which the leased land area is 1,562, 7 hectares, fulfilling rate of about 80.7%. 4.1.2. The current situation of attracting investment By the end of 2018, the industrial zones in the Central key economic region have attracted 928 investment projects, including 725 domestic and 203 foreign-invested projects. The total registered investment capital in the industrial zones in the Region in 2018 reached 95,865 billion VND (equivalent to 4,244 million USD), of which the domestic registered investment capital was 45,800 billion VND and the registered FDI investment capital was 50,065 billion VND. (equivalent to 2,153.8 million USD). The average rate of registered investment capital per investment project decreased again, from 116.3 billion dong per project in 2013 to 103.3 billion dong per project in 2018, especially the average registered FDI investment capital on a FDI project plummeted, from 369 billion VND per project in 2013 to 246.6 billion VND per project. Regarding the rate of disbursement of investment capital in industrial zones in the Central key economic region, it was very high in 2018, reaching 73.0% (up 35.7% compared to 2013 (37.3%)), compared to the average of the whole country (68.5%), the Nothern key economic region (69.4%) and the Southern key economic region (36.1%). For each locality in the region, the rate of disbursement of capital invested in Da Nang industrial parks reached 87.9%, Quang Ngai reached 79.5%, Thua Thien Hue reached 70.5%, Binh Dinh reached 66.8%. Quang Nam is very low, only 41.9%. 4.1.3. Contribution of industrial zones to local economic growth In 2018, industrial production value of enterprises in industrial zones reached over VND 94,466 billion; 20.5% of the total industrial production value of the Region; export value reached 1,880 million USD, accounting for over 39.4% of the export value of localities in the Region; contributed over 8081 billion VND to local budgets, accounting for 7.1% balance budget revenues of localities in the Region. 4.2. The current situation of industrial zones development in the Central key economic region in terms of quality 4.2.1. Science and technology development The total average investment capital registered on the projects of the industrial zones in the Central key economic region in 2018 was only VND 103.3 billion per project (decresing VND 13 billion per project compared to 2013), compared to the country's average projected investment rate is VND 246.1 billion per project (an increase of VND 51.7 billion per project compared to 2013). The investment rate for FDI projects in the Central key economic region is only 246.6 billion VND per project (a decrease of 122.4 billion VND per project compared to 2013), while the investment rate for the country's FDI projects at the same time were 365.4 billion VND per project (an increase of 54.8 billion VND per project compared to 2013). 4.2.2. Labor productivity and efficiency of land use in industrial zones Labor productivity per month according to the production value of industrial parks in the Central key economic region has increased and decreased over the years, the lowest was only VND 41 million per person in 2015 and the highest was VND 50.8 million in 2018, an increase of 19.8 million VND per person compared to 2015, but by 2017 only reached 45.9 million VND per person, down 0.5 million VND per person compared to 2016. 4.2.3. Restructuring local economy 4.3. The current situation of industrial zones development in the Central key economic region in terms of the system 4.4. Situation of the factors affecting the development of industrial zones in the Central key economic region 4.4.1. Qualitative analysis 4.4.2. Quantitative analysis 4.5. Overall assessment of the status of development of industrial zones in the Central key economic region 4.5.1. Achievements 4.5.2. Limitations 4.5.3. The cause of the restrictions CHAPTER 5 SOLUTION ORIENTATION FOR INDUSTRIAL ZONES DEVELOPMENT IN THE CENTRAL KEY ECONOMIC REGION 5.1. The international and domestic context affecting the industrial zones development in the Central key economic region 5.1.1. International context 5.1.2. Domestic context 5.1.3. Background of the Central key economic region 5.2. Solutions for industrial zones development in the Central key economic region until 2025 5.2.1. Group of solutions to promote economic efficiency, system efficiency of industrial zones 5.2.1.1. To complete planning of industrial zones based on cooperation and linkage - Purpose of the solution: (i) Shaping strengths, identifying key industries, establishing linkages orientations in developing priority industries which are suitable for industrial zones in provinces and cities in the Region, avoiding duplication and unreasonable investment in the same industrial zone and between industrial zones with close geographical distance; (ii) improving the linkage by sector and by territory of industrial zones, overcoming the spread and duplication of industrial zones among the provinces and cities in the region at present, regulating the need of achievements racing of local areas and the real industrial development needs of the market; (iii) Increasing the size of industrial parks and investment efficiency through considering the expansion of industrial parks accompanied with solutions to improve the quality of projects, technologies, handling of inefficient industrial zones and reshaping a clean land bank with a high degree of concentration for suitable industries. - Content of the solution: + Prioritizing the allocation of investment capital sources and directing the speeding up the implementation of a number of key projects in the region, especially the construction of highways and coastal roads connecting localities in the region; forming the logistics service supply chain, etc. - Research organizations: (1) Project on reviewing, comprehensively evaluating the potential of large-scale industrial development (by sub-sectors or by products with large markets), the situation of implementing the planning of industrial parks to propose the adjustment or building planning of the regional industrial zone system on the basis of initially forming inter-industry clusters within the region, including industrial clusters, connecting infrastructures to ensure the favorable and effective development of enterprises in industrial zones, in order to enhance the linkages by sectors and territories of industrial parks, overcome the spreading and duplication in the arrangement of industrial parks among provinces and cities in the Region as now; (2) Project on building Chu Lai - Dung Quat area to become a national key supporting industrial zone in order to create spillover and provide supporting industrial products for industries of the whole Central key economic region and of the country. In addition, it is necessary to select to plan 1 or 2 industrial parks for supporting industries and 1 logistics industrial park. 5.2.1.2. Policies for labor development and vocational training, development of vocational training institutions in association with industrial park development needs - Purpose of the solution: (i) Promote the development of both quantity and quality of human resources in industrial zones; (ii) Promote linkages between training institutions, enterprises and state management agencies; (iii) Develop clear and transparent policies in attracting and training human resources in industrial areas. - Content of the solution: + Developing both the quantity and quality of human resources in industrial zones. + Develop policies to support large-scale enterprises in industrial parks to take on the role of on-the-job training as the model of Truong Hai Group in Chu Lai Open Economic Zone in Quang Nam to create the availability of skilled labor and high quality management. + Implement linkage development of human resources and the general labor market; well implement labor forecasting work for industrial zones in each region in relation to the whole region. + Priority is given to attracting highly qualified technical labor force. 5.2.2. Group of solutions to promote the competitiveness and investment attraction of industrial zones 5.2.2.1. Construct synchronously technical and social infrastructure in areas where industrial zones are built - Purpose of the solution: (i) Synchronously develop technical infrastructure inside and outside the industrial zones, meeting the demand and increasing investment capacity; (ii) Strengthen the connection between industrial zones and the regional development centers; (iii) Promote the advantages of geographic location and sea advantages of the Region. Content of the solution: + Strengthening connected traffic; focus on developing infrastructure inside and outside the fence of the industrial zones with the following main contents: (i) Each locality should continue to actively mobilize local resources and socialize to invest in infrastructure development of local industrial parks. Regarding Central capital, provinces and cities need to formulate investment and development plans for technical and social infrastructure development in the provinces and cities in general and the areas with industrial zones in particular. On that basis, the Central Key Economic Region Council, under the direction of the Key Economic Region Steering Committee, will synthesize and arrange the projects according to the priority order to propose to the Government for investment vis-à-vis locality did not run the project himself, in order to create the connection between the important connecting works among the industrial zones; and efficient use of state investment capital. 5.2.2.2. Enhancing investment promotion activities in industrial zones - Purpose of the solution: (i) To overcome fragmentation and smallness in attracting investment of industrial zones; (ii) Make an impression and image to attract investment suitable for each province and city in the region; (iii) Concentrating resources, proactively facilitating investment promotion and investment attraction programs at regional level. Content of the solution: + Select industrial parks with the most advantages in attracting investment, with relatively complete technical and social infrastructure; have clean land fund to attract investment, etc. + Continue to study and formulate industrial parks with reasonable sizes; industrial zone development in association with supporting industry development creating production link network and forming value chain. + To formulate incentive mechanisms and policies to attract investment, develop uniform investment promotion programs and plans among provinces and cities in the Region; The key priority for a number of strategic investors in the industries is the comparative advantage of industrial zones in the Region. 5.2.3. Group of solutions for organizing, managing and implementing supporting policies for industrial zones 5.2.3.1. Improve the efficiency of state management for industrial zones - Purpose of the solution: (i) Improve the mechanism and mode of industrial zone management; (ii) Raise the awareness of state agencies about the role and position of industrial zones in the process of industrialization and modernization of the country; (iii) Enhancing competitiveness in attracting investment. - Content of the solution: + Proposing the Prime Minister to permit the establishment of the Central Steering Committee for the development of economic zones and industrial zones in order to support and solve difficults in the process of operating of economic zones and industrial zones + Improve the mechanism and mode of industrial zone management in the direction of strengthening the "one-door, on-site" mechanism; continue to renovate the state management of industrial parks, especially the management and support of the implementation of projects after licensing in combination with the completion of legal documents related to industrial parks to attract investment in industrial parks. 5.2.3.2. Strictly control environmental issues - Purpose of the solution: (i) Reduce the negative impacts in the operation of industrial zones; (ii) Reduce conflicts between the economic regions of the Central region. - Content of the solution: + Improve the environmental management capacity of relevant state management agencies, fully equipped with necessary equipment and means; Strengthen the inspection and enforcement of environmental laws implementation in the industrial parks associated with resolving violations resolutely. At the same time, consider adjusting the sanctions to ensure deterrence to violations of environmental laws. New investment projects in industrial zones must complete the waste treatment facilities that are allowed to operate. Once 50% of the area has been rented, a centralized wastewater treatment plant must be built. + Promote cooperation in solving common environmental problems and protecting the environment. PART III: CONCLUSIONS AND RECOMMENDATIONS 1. Conclusion Rapid and strong development of industrial zones is the desired goal not only from the local government with the industrial park but also by the enterprises in the industrial park. For industrial zones in the Central key economic region, which were formed quite slowly after the country's renewal period, bringing particular difficulties and advantages associated with geographical characteristics and socio - economic development process of the Region. With the objectives and tasks set for the topic "Solutions for developing industrial parks in the Central key economic region", the thesis has achieved the following important results: (1) Add new perspectives on research on industrial zone development. When viewing businesses in industrial zones as well as industrial zones within a certain spatial extent as elements of a business ecosystem, it will show the development sequences from the quality of industrial parks. and current status of industrial zones to focus on appropriate solutions corresponding to the development stage. (2) Determine the current development situation of industrial zones in the Central key economic region. These are industrial zones in the Region, though strongly developing in quantity but not in high quality and systematic. Even if viewed in relation to other key economic regions, the development of the number of industrial parks of the provinces and cities in the Region is still small scale, not yet fully accumulated for higher level of development, still in the turbulent period without sufficient conditions to organize themselves, forming a development order to co-evolve, resulting in not promoting the strength of cooperation of businesses. (3) Through qualitative and quantitative analysis of factors affecting the development of industrial parks in the C