Sustainable development of commerce in Binh Đinh province

ported goods in the province fluctuated over the years. In 2018, the import turnover (I.T) of the whole province was estimated at $361,6 million, increased about 13,4% compared to that of 2017, reaching 113% of the anual plan. Import turnover has a low and slow growth rate because the production and processing activities of some products in enterprises in the province show signs of slowing down and enterprises have a change in demand for raw and alternative material sources. c. Growth rate of total import and export turnover Table 3.9. Trade balance and growth rate of export and import in Binh Dinh Year Unit 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Export turnover Million USD 346,2 427,2 488,0 573,8 588,9 634,7 702,1 703,1 724,7 825,6 Import turnover Million USD 155,8 161,7 154,5 190,9 176,9 260,4 279,9 283 318,9 375,0 Trade balance Million USD 190,4 265,5 333,5 382,9 412 374,3 422,2 420,1 405,8 450,6 The growth rate of E.T % 23,40 14,23 17,58 2,63 7,78 10,62 0,14 3,07 13,92 The growth rate of I.T % 3,79 -4,45 23,56 -7,33 47,20 7,49 1,11 12,69 17,59 Source: Statistical Yearbook of Binh Dinh Province in2013, 2015, 2016, 2017, 2018 and data process of author In general, export turnover of many years did not hit the targets, but there was a growth compared to the previous years, and Binh Dinh's foreign trade always achieved a trade surplus in 2018 with trade surplus of about 450,6 million USD. This is a highlight in the province's import and export activities. 3.2.1.3.Value-added (VA) in commerce of local goods Table 3.10. Value added of commercial commodities at current prices in Binh Dinh province Target Unit 2010 2011 2012 2013 2014 2015 2016 2017 2018 VA Billions VND 3251 2521 4594,5 5258,3 5959,2 5062,6 5619,5 5848,6 6597,7 VA growth speed Billions VND -730 2073,5 663,8 700,9 -896,6 556,9 229,1 749,1 VA growth speed % -22,45 82,25 14,45 13,33 -15,05 11,00 4,08 12,8 Source: Statistical Yearbook of Binh Dinh Province in 2013, 2015, 2016, 2017, 2018 and data process of author In the period of 2010- 2018, the added value of commercial commodities in the province fluctuated with the lowest value was in 2011 at 2521 billion VND and the highest value was in 2018 with 6597,7 billion VND. 3.2.1.4.Contribution of commercial commodities in the Province's GRDP In the province's GRDP structure, the service sector still accounted for the highest proportion, ranging from 37,3 to 41,1% of the province's total GRDP in the period of 2010 – 2018. Commerce of goods accounted for about 25 - 31% in the service sector, in 2011 only accounted for about 18%. The level of contribution of commercial commodities in the province's GRDP unsteadily changed during 2010-2018 with the lowest was in 2011, the highest was in 2013, 2014 and the average annual contribution to GRDP of the province is 10,1%. 3.2.2. Sustainable development of commerce through addressing social issues 3.2.2.1. The total labor attraction level and average income of workers in commerce industry in Binh Dinh province The total labor in commercial enterprises in the province tends to increase over the years. In 2017, the number of employees in the commodity trading enterprises reached 13,877 labors. There was an increase of 259 employees compared to 2016. In addition to the number of employees in commercial enterprises, a large labor force is employed in individual economic assets. The number of employees in non-agricultural, forestry and fisheryindividual assetsin commodity trading accounts for about 34-36% of the total number of employees in non-agricultural, forestry and fishery individual economic assets in the province and tend to fluctuate instably over the years. In addition, the average income of workers in enterprises and in commodity trading enterprises in Binh Dinh province tend to increase. The average income of workers in enterprises in Binh Dinh generally increased from 30,9 million VND/employee in 2010 to 64,42 million VND/employee in 2017. Besides, the average income of workers in commodity trading enterprises are also unstable, standing at the point of 54,8 million VND in 2017 3.2.2.2. The level of pervasiveness and compliance with market rules in commercial activities a. The level of commercial pervasiveness Firstly, the level ofcommercial pervasiveness is reflected in the development in commercial business network, distribution system to localities. Through the commercial distribution network system, it is possible to see the level of distribution among regions is not equal, consumers of some districts in Binh Dinh province, especially mountainous areas such as Van Canh, An Lao and Vinh Thanh, where the access to goods are much more difficult than in other places. Secondly, improving the level of satisfaction for consumers, especially consumers in remoted areas through commercial promotion activities in Binh Dinh province. Improving the level of satisfaction for consumers is still relatively limited and uneven across regions, especially remote areas. Consumers in remote areas are less likely to have access to promotional activities and trade fair activities, Vietnamese goods fair than consumers in the cities, towns or hamlets. Besides, the number of commercial promotion activities in the mountainous areas is quite small so the level of commercial pervasiveness is not significant. b. Compliance with market rules in commercial activities The reality of compliance with market rules in commercial activities in the area is still limited. The smuggle, trade fraud, fake goods, poor quality goods and goods that do not ensure food safety are quite complicated. In general, the total number of violations of market rules in Binh Dinh province changed over the years, the highest violation rate was in 2013 with over 96% of violations on the total number of inspection cases. Although the number of violations of market rules is on a downward trend, there are still potential risks and complicated changes in terms of scale, feature and scope. 3.2.2.3. The level of meeting customer needs in commercial activities The level of meeting customer needs in commercial activities in Binh Dinh province is not high, most customers' satisfaction level is quite average. This also reflects a part of unsustainable development of commerce. 3.2.3. Sustainable development of commerce on environment through greening commercial activities in Binh Dinh province 3.2.3.1. Commercial waste and the amount of waste collected and treated in the province Situation of commercial waste collection and treatment Impacts on the environment in trade activities in the province are mainly from the transportation, circulation of goods and activities of various types of commercial forms such as markets, shops, supermarkets, wholesale centers, shopping centers, etc. In particular, the impact of environmental pollution from commercial forms, especially from the markes, is an urgent issue that needs to be addressed. There are many temporary markets, toad markets and many of them are degraded and the requirements on market sanitation are not guaranteed. The volume of solid waste in commerce is quite large and the treatment of solid waste such as collecting, transporting, treating and recycling commercial activities is still limited. Management of commercial solid waste The inspection, supervision and guidance on the implementation of regulations and policies on the management of solid waste in commerce have not been focused; The state management system at fundamental levels is not sufficient in number and management ability. Waste collection mainly uses manual labor which is lack of adequate and long-term investment in equipment for collecting, transporting, sorting and constructing proper burial sites and waste treatment technology facilities. Liquid waste and gas waste in commerce The impacts on the environment ofcommercial activities in the province are mainly from the transport and circulation of goods, especially liquid wastes and fumes emitted from vehicles. There are still a large number of obsolete vehicles with unsatisfactory exhaust systems. They are a cause of increase in air pollution. In addition, recent activities of river transport, sea transport and port operation have increased sharply, causing the risk of pollution to coastal sea water. 3.2.3.2. Green logistics in commerce in the province External transport operations Goods are transported in the province mainly via road, river and sea. The volume of goods transported in the province over the years has the tendency to increase from 9047 thousand tons in 2010 to 20035 thousand tons in 2018. Increasing the volume of transport will lengthen the transport distance of vehicles and as a result increase in fuel consumption and environmental pollution. The phenomenon of air pollution in Binh Dinh province mainly in urban intersections and some concentrated production areas and traditional handicraft village. Efficiency in transporting goods In addition to studying the reduction of external transport volumes, the efficient allocation of goods can make an important contribution to reducing traffic congestion, environmental pollution and saving costs. Currently, logistics services in Binh Dinh province in general still contain many limitations. The fragmentation of small orders leads to inefficiency in use of vehicles and increase in economic costs as well as environmental costs. Besides, the service quality of logistics enterprises is rather low and has many potential drawbacks. Reverse logistics Recycle and reuse of solid waste in commercial activities in Binh Dinh has been done in many different and spontaneous forms. The collection of waste in every street has contributed to cleaning up and protecting the environment. Processing inorganic waste can make plastic beads continue to be created into useful products for society. However, the process of recycling waste manually caused environmental pollution as well as the affected the health of workers who involved in the recycling process. In addition, the reverse logistics line is formed due to the recall of unsold products for upgrading, defective products to repair, used products for dismantlement and reuse partially or entirely or for reuse of packaging. In Binh Dinh province, this recovery activity has not been focused. Most of the recalls of defective or expired products are returned to the place of production by either the trading units or the customers. Processing time for returned goods is often long and costs a lot of shipping fee. Besides, to assess the status of sustainable development in Binh Dinh, the author conducted a review from thethe managers of the provinceon the situation of sustainable commercial development in three aspects (economic, social and environmental issues). The results of the assessment were above average. However, the evaluation score is relatively low. In addition, the managers also gave a general assessment of the status of commercial development in Binh Dinh. The results showed that only about 16% of managers thought that Binh Dinh’s commerce was sustainable developed, the rest (about 84%) of the managers surveyed said that Binh Dinh trade was unsustainable developed. According to the opinion of managers in Binh Dinh province, the reality of unsustainable development of commerce in Binh Dinh is due to 6 basic reasons.  3.3. Assessment of factors affecting sustainable development of commerce in Binh Dinh 3.3.1. Institutional and commercial development environment The Government as well as Binh Dinh have made many documents aimed at directing, operating and supporting the development of commerce. However, the implementation of documents are still quite slow, lack of topicality and face many difficulties in implementation. The planning of transportation infrastructure for commerce is not synchronized and does not meet the maximum needs of the market. 3.3.2. Commercial infrastructure The growth rate of commercial infrastructure in Binh Dinh province has relatively met the demand for trading, exchanging of goods in line with the provincial socio-economic development level. However, a number of nucleus commercial infrastructures associated with the surrounding areas and facilitating economic development and commerce in East-West economic corridor has not been invested. Besides, the province's commercial infrastructure such as warehousing system and market system still has many shortcomings, means of transportation are outdated, the connection in transport system is limited, making the sustainable development of commerce in the province more difficult. 3.3.3. System of commercial enterprises Firstly, the number of business entities in the field of commerce of goods tends to increase over the years from 1112 businesses in 2010 to 1770 businesses in 2017. Of which wholesale enterprises except for automobiles, motorcycles, motorbikes and other motor vehicles accountedfor the largest proportion. In 2017 the figure accounted for about 64% of the total number of enterprises operating in the field of commerce of goods. In addition, the number of individual economic assets engaged in commodity trading activities in the period of 2010-2018 tends to go up. In 2017 there is a significant proportion of nearly 45% of the total non-agricultural, forestry and fishery individual economic assets in the whole province. In 2018, there are 44183 individual economic assets, accounting for 44,87% of the total non-agricultural, forestry and fishery individual economic assetsin the whole province. Secondly, about the capacity of commercial enterprises, especially in the capital size and net revenue of commodity commercial enterprises in Binh Dinh province. Average business capital of commercial businesses in Binh Dinh province tends to increase over the years, except for 2014 the capital decreased slightly compared to 2013. In addition, net sales of commodity commercial enterprises also tend to increase, the average growth rate in the period of 2010 - 2016 is an increase of about 6000 billion VND per year. In 2017, the total net revenue of commodity commercial enterprises in Binh Dinh province plummeted to VND 41.538 billion. On the other hand, the ratio of net revenue to business capital of commercial enterprises in the province also fluctuates over the years. 3.3.4. Commercial market in Binh Dinh province Commercial business activities in Binh Dinh province are relatively stable and maintain at a fairly high growth rate. However, due to the volatility of the economy, the purchasing power of domestic and foreign consumers is limited and unstable. Besides, suppliers of manufactured goods have not followed the actual demand or closely link between production and consumption, especially in the field of agricultural products, leading to unstability in price of goods. The situation of smuggling, fraud, counterfeit goods, fake goods, poor quality goods, goods that do not ensure hygiene and safety for human health and the environment are still circulated on the market. Because the commercial market in the area is unstable and limited, sustainable development of commerce still have to face many difficulties. 3.3.5. Commercial human resources The total number of employees in enterprises in Binh Dinh province as well as the total number of employees in commodity commercial enterprises in Binh Dinh province have the tendency to increase over the years. As of 2017, the number of employees in those enterprises reached 13.877 employees. On the other hand, the proportion of labor in the commodity commercial enterprises has not changed much over the years, ranging from about 9,45 – 11,05% compared to the total labor force in the enterprises of the province. In addition, the number of employees in non-agricultural, forestry and fishery in individual economic assets in commodity commercial activities accounts for about 34-37% of the total number of employees in non-agricultural, forestry and fishery individuals economic assets in the province and unstable over the years. In 2018 the number of employees reached 57.393 people. Furthermore, productivity of commercial labor in Binh Dinh province is unstable, showing unsustainable development in commerce. In addition, the factors affecting the sustainable development of commerce in Binh Dinh province are assessed by managers as being at average level. 3.4. General assessment on the reality of sustainable development of commerce in Binh Dinh province 3.4.1. Results and achievements Firstly, sustainable development of commerce in Binh Dinh has obtained positive results, domestic commercial activities and import-export activities have grown steadily over the years. Secondly, in order to bring the commercial activities in the province into market rule, the fight against smuggling, trade fraud, counterfeit goods, poor quality goods and unsafeted food has been strengthened in the local area. Thirdly, in order to positively contribute to the local state budget and GRDP of the province, the value added in local commerce in many years has generally reached a higher state than some provinces in the key economic region of the Central region. Fourthly, the state management on commercial activities has been built and implemented uniformly by state authorities in Binh Dinh province. Fifthly, in order to contribute to improving the efficiency of commerce reducing logistics costs, the infrastructure of province had several developments, step by step meeting the needs of development in commercial activities. Sixthly, the number of enterprises operating in commodity commercial and the number of individual business in the commercial activities tend to increase in terms of quantity and business abiliity. Finally, the number of employees who are attracted to work in commodity commercial enterprises and the number of employees working in non-agricultural, forestry and fishery individual economic asstets in commodity trade tend to increase. 3.4.2. Limitations and reasons Firstly, the commercial infrastructure and logistics is weak, unconnected and developed synchronously. The reason is that the local capital is limited and there has been no investment in a number of commercial infrastructures as a nucleus to associate with the surrounding areas. Secondly, the institutional environment and the law on trade development are still limited. The reason is that the implementation documents are still quite slow, lack of topicality, there are still many difficulties in the implementation and the planning of transport infrastructure for the trade is not synchronized. Thirdly, human resources specialized in commerce are lacking and the working efficiency is not high. The reason is that the commercially trained human resources are still quite limited and the knowledge, soft skills, professional business skills as well as the management ability of the current commercial human resources are still limited. Fourthly, commercial enterprises do not have the cooperations, conections and efficiency in product supply chain in commerce, there is still a situation of "every man for himself". Fifthly, the growth rate of commerce, specifically the growth rate of export turnover of goods as well as total retail sales of goods and service revenue tend to decrease and have not reached the set targets. In addition, the value added of commercial commodities in Binh Dinh province and the level of contribution of commercial commodities in the province's GRDP also fluctuated over the years. The first reason is due to the unpredictable changes in market and commercial promotion activities in the country and abroad have not been paid much attention in Binh Dinh province. The second reason is that most of Binh Dinh province's exports are at a low value in the overall value chain. On the other hand, the province's sea transport activities are not commensurate, logistics services do not meet the requirements and the service fee is much higher than that of neighboring local ports. Sixthly, the development of commerce in terms of society is not sustainable. Specifically, the average income of workers in the commodity trading enterprises in Binh Dinh tends to be unstable and is lowest among the provinces of the Central key economic region. On the other hand, the level of meeting customers' needs for goods trading activities in Binh Dinh province is not high. In addition, violations of market principles such as smuggling, trade fraud, counterfeit goods, poor quality goods and unsafe goodsare frequent. The reason is that the balance between supply and demand of goods is not really good and the stability is unsured. Moreover, the fight against smuggling, trade fraud, counterfeit goods, poor quality goods and unsafe goods are still inadequate. Last but not least, waste from commercial activities has a negative impact on the environment and the waste process is not really effective. The first reason is that the volume of waste is quite large and the waste processin commerce is still limited since advanced and environmentally friendly technologies have not been used. Secondly, the propaganda to raise awareness and responsibility of the community about environment has not been paid enough attention. Finally, there are no clear laws on waste process or policies to encourage the use of environmentally friendly energy in commercial activities. _______________________________ CHAPTER 4: ORIENTATIONS AND SOLUTIONS FOR SUSTAINABLE DEVELOPMENT OF COMMERCE IN BINH DINH PROVINCE TILL 2025 AND A VIEW TO 2030. 4.1. Objectives, directions for socio-economic development and requirements for sustainable development of commerce of Binh Dinh Province until 2025 and a view to 2030 4.1.1. Forecast of international and domestic contexts sustainable development of commerce in Binh Dinh province 4.1.1.1. International context - The Comprehensive and Progressive Agreement for Trans-Pacific Partnership comes into effect in conjunction with the EU-Vietnam Trade Agreement expected to be approved in 2019 and a number of management and operating systems suitable with integration trend has created a great driving force for economic growth of Vietnam. - Currently, Binh Dinh enterprises have not been greatly affected by commercial and technical barriers or put a tax on anti-dumping duties from importing countries such as the United States, South Korea and Turkey. - Global growth, market size and demand for goods have been reduced, the world’s market is potentially unstable and unpredictable. Many importing countries will increase the protection of domestic production, apply many trade barriers, making the export of Binh Dinh difficult. 4.1.1.2. Domestic context - The economy of the whole country is changing positively, but it is forecasted that the economies of other countries still face many difficulties, the market of goods consumption and the input costs of production are not stable. Therefore, production and business activities of domestic enterprises face many difficulties. - In Binh Dinh province, businesses have been supported by state management authorities to overcome difficulties but it is forecasted that in the coming time, the commerce of Binh Dinh province will still face many challenges and difficulties. 4.1.2. Socio-economic development objectives and directions of Binh Dinh province till 2025 and view to 2030 4.1.2.1. The goals of socio-economic development of Binh Dinh province The overall objective of socio-economic development of Binh Dinh province is having sustainable economic growth and development, restructuring economic and labor; industrialize, modernize urban areas and enhance the province's position in the coastal areas of South Central, Central Highlands and Southeast Asia. In addition, the common goal is to promote the strategic position and potential of the marine economy, build an urban-rural system in Binh Dinh province for sustainable development in the socio-economic fields, improve quality of people's life, protect environment, ensure thesecurity and national defense. 4.1.2.2. Orientation for socio-economic development of Binh Dinh - Focus on developing industries and handicrafts, especially industries that have advantages in raw materials sources in the direction of increasing the proportion of refined goods. - Focus on developing the agricultural sector in line with the direction of manufacturing production for export. - Focusing on developing the fishery industry to become a strong industry of the province. - Focusing on exporting products that are the strengths of Binh Dinh and exports in the direction of increasing the proportion of refined goods. - Focus on developing the service and tourism industry. - Constructi