MINISTRY OF PLANNING MINISTRY OF EDUCATION AND INVESTMENT AND TRAINING CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT LE HONG GIANG INNOVATING THE MODEL OF ECONOMIC ZONE DEVELOPMENT IN THE QUANG NINH PROVINCE DURING INTERNATIONAL ECONOMIC INTEGRATION Major: Economic development Code: 31 01 05 SUMMARY OF DOCTORAL THESIS HANOI - 2019 The thesis is accomplished in Central Institute for Economic Management Supervisors: Dr Tran Kim Hao Dr Nguyen Trong Len Reviewer 1: Assoc Prof., Dr Bui Tat Thang Reviewer Assoc Prof., Dr Dan Duc Hiep Reviewer 3: Dr Dang Duc Dam The thesis will be reported in the Institute of Thesis meeting at the Central Institute for Economic Management at the time day month year 2019 The thesis is available at: - Library of Central Institute for Economic Management - National Library, Hanoi INTRODUCTION The need of studying the topic Economic zones have the same purpose to attract resources, to create growth poles, where new institutions, mechanisms and policies are expected to create breakthroughs From the pilot model of policy mechanisms in Mong Cai border gate area (1996), Quang Ninh has accelerated the development of the economic zone model However, economic zones in Quang Ninh in particular, the country in general has not achieved the expected success In order for the economic zones of the Quang Ninh province to meet the local socio-economic development objectives, it is necessary to have an appropriate economic zone model Therefore, the topic was selected by the doctoral student as a doctoral thesis The purpose and meaning of the thesis research The study of the thesis topic is to build a basic theoretical framework to interpret the factors affecting the economic zone development model in a province-level locality Since then, giving directions, views and proposing solutions to innovating the model of economic zone development in the Quang Ninh province during international economic integration The thesis has new knowledge contributions: (1) Theoretical: Research on EZ development model in a locality provincial level during international economic integration (2) Regarding the practice: Researching the reality of the process of developing the model of EZ development in the Quang Ninh province during international economic integration Proposing a number of proposals, proposing renovation of economic zone development model in the Quang Ninh province during international economic integration Structure of the thesis The main content consists of chapters: CHAPTER 1: Overview of research projects related to the thesis topic CHAPTER 2: Rationale for renovation the economic zone development model in a province-level locality during international economic integration CHAPTER 3: Research on the status of economic zone development model in the Quang Ninh province CHAPTER 4: Innovation of economic zone development model in the Quang Ninh province during international economic integration CHAPTER 1: OVERVIEW OF RESEARCHES ON THE DEVELOPMENT OF ECONOMIC ZONE 1.1 Overview of researches related to economic zone development model 1.1.1 Overview of studies published abroad Jong Cheol Lee (2014), Challenges and experiences in building and developing Incheon Free Economic Zone (Korea), [37], an overview analysis of Incheon EZ; highlighting the natural characteristics, infrastructure, human resources, finance, science and technology Shenzhen University (2014), Experience of successful development of Chinese special economic zone model - Innovation in Shenzhen financial reform, [45], mainly referring to the financial industry, explains Shenzhen's development Farole, T and G Akinci, World Bank (2011), Special Economic Zones: Progress, Emerging Challenges, and Future Directions, [59] have raised issues of investment attraction and job creation, give lessons learned from Honduras, America, China, Singapore Wei Dat Chi (2014), Implementing a strategic transformation of the economic development model from outward to open, [12], analyzed the economic model as an institution to participate in international assignment in the context of economic globalization 1.1.2 Overview of published studies in Vietnam Ministry of Industry and Trade (2013), Developing economic zone of border gate in Vietnam, [4], Overview of the current status of border gate economic zones and border trade Vo Dai Luoc (2010), Research on special economic zones, [38] Research on development of Open economic zones in the world in the context of international economic integration Nguyen Xuan Thang (2014), The issue of building special economic zones in the era of globalization, [51], gave an overview of the issue of building special economic zones, analyzing the core factors in economic development sacrifice Bui Tat Thang (2014), The issue of building special economic zones, [45], Analyzing the key characteristics of successful economic zones, mentioning the lessons learned from the above special economic zones gender; proposing economic zone policy in Vietnam Huynh The Du, Dinh Cong Khai, Huynh Trung Dung, Hoang Van Thang, Nguyen Thi Hong Nhung (2017), From the economic zone to develop and link the region: creating institutional Proposing development orientations, models and methods to promote and solutions to develop economic zones in the Quang Ninh province during international economic integration 1.1.3 Summarize the evaluation of unresolved issues (gaps) and some issues that the thesis focuses on Each topic, study, article has different approaches But: (1) there is no comprehensive research, system of EZ development in the Quang Ninh province (2) policy recommendations only stop raising qualitative views, proposing and proposing common solutions (3) much research is more practical and practical than summarizing practice to build theoretical framework or model design (4) There is no research on the developing EZ model for a province like Quang Ninh (5) Evaluating the factors affecting the economic zone model, there are no comprehensive assessments Since then, the thesis focus on: (1) Systematizing, interpreting and clarifying theoretical and practical issues of the economic zone development model during economic integration Internationally, (2) Analyzing and assessing the current situation of developing economic zones in the Quang Ninh province: Vietnam's economic, social and external development 1.2 Direction to solve research problems of the thesis 1.2.1 Objectives and research questions of the thesis topic General research objectives: Development theoretical framework and solutions to innovate the EZ development model in the Quang Ninh province during international economic integration Specific research objectives: (1) The system and contribute to perfecting the theoretical basis of the economic zone, the model of economic zone development during international economic integration; (2) Assessing the status of the model of developing economic zones in the Quang Ninh province; (3) Theoretical framework, viewpoints, solutions to renovate the economic zone development models to improve the efficiency of economic zones in the Quang Ninh province during international economic integration; (4) Some recommendations Research questions: (1) What constitutes and impacts to the EZ development model during international economic integration? (2) What is the role and degree of influence of factors on the model of EZ development at a provincial like Quang Ninh province? (3) Impact of current international economic integration on economic zone development (4) What model is suitable for innovation of the economic zone development model for Quang Ninh? (5) What are the solutions and proposals needed for state agencies? 1.2.2 Object and scope of the thesis research topic 1.2.2.1 Object of research: Innovating new model of developing EZ in the Quang Ninh province during the current international economic integration 1.2.2.2 Scope of research: research location includes 04 economic zones of the Quang Ninh province: Van Don, Mong Cai, Hai Ha (Bac Phong Sinh), Binh Lieu (Hoanh Mo - Dong Van) Time to evaluate the process of economic zone development from implementation to 2018, the focus of the last years (2013-2018); proposed orientation to 2030 Content limitation: lessons learned at home and abroad; put in the overall political system and space breakthroughs, [21]: mentioned issues of economic zone development institutions, problems and challenges; policy proposal for Vietnam 1.2.3 Approach and method of research 1.2.3.1 Approach: combination of progressive and breakthrough A systematic study of theoretical issues about economic zone development model to clarify the theoretical framework; studying practical experiences at home and abroad, synthesizing and evaluating the actual situation in the Quang Ninh province; proposals based on theoretical and factual analysis 1.2.3.2 Research methods: (1) Statistical methods: through collecting primary documents, combining research at tables to gather and process data related to the development of economic zones in the Quang Ninh province (2) Methods of actual investigation, survey and interview (3) Expert method: collect information, documents and receive comments from experts, scientists, (4) Methods of comparison, analysis and synthesis CHAPTER 2: THEORETICAL BACKGROUND ON INNOVATION THE MODEL OF DEVELOPMENT ECONOMIC ZONE IN THE LOCATION OF A PROVINCE LEVEL DURING INTERNATIONAL ECONOMIC INTEGRATION 2.1 Economic zone and economic zone development model in a provincelevel locality during international economic integration 2.1.1 Economic zone and economic zone's role in socio-economic development in a province level 2.1.1.1 Economic zone concept In the thesis, "Economic Zone" is understood as an area with a separate economic space, defined geographical boundaries, an investment and business environment that is particularly favorable for investors, given construction and development permits by the State, operated by a favorable legal framework, open to international practices 2.1.1.2 The meaning of the establishment of an economic zone: (1) As a basis for innovation of macro policies (2) Applying new models and motivations for economic development (3) Develop production, create products with high quality and competitiveness; market expansion (4) Creating jobs, promoting training and improving the quality of human resources (5) Exploiting advantages to promote socio-economic development 2.1.1.3 The role of the economic zone in socio-economic development in a province-level locality: (1) Attract investment, especially foreign direct investment; (2) Infrastructure development; (3) Support for a broader economic reform strategy; (4) A "laboratory" for new policies and approaches; (5) Relieve some of the pressure of population growth and employment needs 2.1.1.4 General characteristics of the economic zone: (1) areas with separate economic space, defined geographical boundaries, are allowed to build, especially favorable investment and business environment (2) function into functional areas suitable to the characteristics of each economic zone (3) favorable geographical position converges basic development factors (4) mobilizing resources for investment and production development, making an important contribution to job creation, income generation and human resource training (5) investment and technical infrastructure development brings positive effects to regional and national development (6) effective means, one of the factors of local economic restructuring 2.1.1.5 Some initial selection criteria for proposing formation of an economic zone: geostrategic location; convenient infrastructure; conditions for developing resources; conditions or potential for infrastructure development 2.1.2 Economic zone development model in a province level 2.1.2.1 Forms, frameworks for formation and development of economic zones (1) According to the target approach, the EZ has forms: EZ has a commercial nature; EZ has industrial nature; EZ has a synthetic nature (2) According to the model of management and development of the economic zone classified as: Special economic zone, bonded area, export processing zone, border economic zone, coastal economic zone, open economic zone (3) These types of economic zones have in common: (i) About space: established on a special basis of natural conditions, favorable geographical and economic location (ii) Regarding external economic development planning: EZs are divided into nontariff zones and tariff zones (iii) In the field of investment: EZs allow multisector and multi-sector investment, but have a central objective (iv) Connectivity and diffusion: EZ affects socio-economic activities at the scale or territory (v) Uniformity, internal: planning, synchronous, balanced in the overall reasonable of the locality and region (vi) Pioneering, orientation: where new institutions are piloted, growth poles 2.1.2.3 Economic zone development model by territorial space: Straight line model, Fan chest model, Spreading model 2.1.2.3 Economic zone development model considered from the perspective of management: (1) management of the state and local authorities for EZ; (2) corporate governance; (3) private-state coordination management model 2.1.3 Some theories related to economic zone development model Economic efficiency by scale: The foundation of the line of economic theory, indicating that the law of scale increases, the economic efficiency decreases efficiency decreases due to scale [47] Economic efficiency gradually increases with scale: It is the "focus on space" that has created the forms of economic activities such as cities, industry clusters, industrial chains, EZs and production centers, employment centers New Trade Theory: together with the theory of national competitive advantage (Michael Porter pioneered) research analysis of "economies of scale", indicating "scale performance" can be gradually increased by scale The New Theory of Economic Geography by Paul Krugman (USA - 1991): Economic concentration is a necessary condition to create and promote economic efficiency with scale, which is the driving force to decide the formation of space economic focus 2.1.4 International economic integration and the requirements of reforming economic zone development model in a province level 2.1.4.1 The concept of international economic integration International economic integration is one of the forms of "international integration" The most commonly understood international economic integration is the integration of each nation's economy into regional and global economic cooperation organizations 2.1.3.2 The inevitability of international economic integration In the process of society, the rapid development of productive forces along with the emergence of market economies has strongly promoted the process of cooperation and cooperation among countries International economic integration has become a major trend of the world today 2.1.3.3 The meaning of international economic integration Aiming at forming a regional set to promote production, expanding markets for products and services; to address key issues: tariff reduction, non-tariff barriers; reduce restrictions on services; reduce international investment obstacles; adjusting trade policies; cultural, educational, medical activities 2.1.3.4 The nature of international economic integration (1) the interwoven, interdependent and interdependent relationship between economies, both the process of cooperation and development, and the resolution of conflicts; (2) the process of eliminating trade and investment barriers; (3) create new conditions for businesses to improve competitiveness; (4) Facilitating the implementation of reforms, also a requirement for innovation and improvement of economic institutions, (5) creating new factors and conditions for development (6) facilitating internal and foreign; market expansion, technology transfer and management experience 2.1.3.5 Levels of international economic integration (1) Preferential trade agreement; (2) Free trade area; (3) Customs Union; (4) Common market (or single market); (5) Economic-monetary union 2.2 Content and method of developing economic zone model in a province level 2.2.1 Contents of developing economic zone model in a province level How to build an EZ development model depends on the objectives developing the EZ The objectives: (1) Promote and exploit the potential, strengths and resources of the locality; (2) Attract investment resources (3) Factors of stimulating, catalyzing, promoting local economic restructuring in the direction of sustainability and integration; (4) Creating jobs, developing human resources and improving people's lives; (5) Participate deeply in the integration process, adapt to the trend of liberalization; promote the process of green growth, green economy; (6) Associated with elements of the era, gainning achievements of the industrial revolution 2.2.2 Mode of building and innovating economic zone development model in a province-level locality Formulating and innovating the economic zone development models to meet objective practical requirements The two main methods of construction and innovation are: (1) Building a new model to develop the economic zone to create an outstanding development institution, (2) Convert and upgrade the current model but must create new structures to create innovation According 11 Committees for the EZ Management Board (3 levels management model) 2.4.2.3 Lesson for Quang Ninh province Successful lessons: EZs have contributed to innovation of investment and business environment; attracting a large amount of capital invested in technical and business infrastructure (from the private sector, FDI for nearly 90% of the total investment of technical infrastructure, of which 3,48 billion USD of FDI); promoting production development, forming a number of key industries; contribute to socio-economic development The reason of success: (1) There is interest in leadership, support from the State; the proactive and drastic action of the government; creatively apply practical guidelines to and in accordance with the development worldwide trend (2) Planning and selecting suitable locations (3) Know how to apply successful experiences at home and abroad (4) Actively improve investment environment and investment promotion effectively; (5) Having attractive and competitive policies for training and attracting human resources Limitations and weaknesses: (1) The EZs lack strategic planning, so they are spread, divided, fragmented and slow to determine the priority order so many areas have low efficiency (2) Infrastructure is inadequate, not synchronized, and does not meet the development requirements (3) Not attracting strategic investors in science and technology, finance and management skills (4) Human resources not meet requirements of investors (5) Investment environment is not really attractive; cumbersome administrative procedures Reasons for not succeeding: (1) The basic conflict between development of production relations has not been solved (2) Asynchronous innovation, new focus on economic innovation, not focusing on administrative reform, soon organizing apparatus (3) Institution is not strong enough (no Law) (4) Policy mechanisms to attract all resources that are not competitive at regional and international levels (5) The organizational structure model also overlaps (6) Preferential policies and support of the State for EZs are also spread (7) EZ is established when it does not meet all necessary factors for development (8) Infrastructure and human resources are both weak and weak 12 CHAPTER 3: CURRENT SITUATION OF ECONOMIC DEVELOPMENT IN QUANG NINH PROVINCE 3.1 The Quang Ninh province conditions has important impacted on economic zone development 3.1.1 Potential, advantages Quang Ninh has a strategic location, is a great opportunity for comprehensive development, capable of deep international integration; the only province has both land and sea borders (120 km on land and 191 km on sea); The only province has cities Many outstanding "unique" landscapes are opportunities to develop different types of tourism and develop cultural and entertainment industries Rich mineral resources, especially coal, limestone, clay People and society of the Quang Ninh is a convergence, interference, unity in the diversity of the Red River civilization 3.1.2 Achievements and advantages Economic growth is high: Implementing the restructuring of the economy associated with the innovation of growth model to promote efficiency; Restructuring industries in the direction of innovation, creativity, high-tech application, environmentally friendly To step up the restructuring of the agricultural sector along the direction of applying high technologies; Synchronous infrastructure development Institutional and administrative reform are directed drastically from province to grassroots level;Investment and business environment improved; Focus on deploying strategic planning Culture and society have made progress; Social security is guaranteed The quality of education continues to change positively Foreign affairs are 13 implemented synchronously and comprehensively, expanding 3.1.3 Limited, weak Economic development is not commensurate with outstanding potentials (commercial services, tourism); Socio-economic infrastructure is not synchronous, industrial and urban development is "hot" leaving environmental consequences; science and technology are lacking, weak and limited; Lack of human resources, especially high quality human resources Cultural and social sectors have many degrading and backward cultural institutions The results of poverty reduction have not been sustainable, the rate of poor households is concentrated in remote areas Subjective causes: Effectiveness and efficiency of state management in some areas are still limited The process of reforming economic growth and restructuring is slow The policy of using talents and treatment is difficult Planning management in some localities is not good Objective causes: lack of resources to invest in infrastructure; prioritizing the State's resources which are not commensurate with the tasks Mechanisms and policies applied in EZs are not competitive at regional and international levels 3.1.4 Background of international economic integration International context: Peace, cooperation, integration and development are still major trends Cooperation, competition, struggle and interdependence among countries, especially among large countries are increasing The rapid development of science and technology, especially information, biotechnology, new materials technology, Globalization on all aspects of life, culture, politics, socio-economy International cooperation in economic and environmental protection is still the main trend International integration of our country is increasingly deepening, especially economic integration Domestic context: over 30 years of renovation, Vietnam has achieved comprehensive achievements, but there are still problems in the fields of economy, culture and society, which cannot be overcome shortly Quang Ninh is one of the industrial, tourist and service centers of the country, which has a 14 socio-economic development with diversified and high integration, so it is greatly affected Entrepreneurial team has considerable maturity 3.1.5 Some legal bases related to economic zone in Quang Ninh province (1) Resolution No 54-NQ/TW dated September 14, 2005 of the Politburo on socio-economic development and ensuring national defense and security in the Red River Delta region by 2010 and orientation in 2020 (2) Conclusion No 47-KL/TW dated 06/5/2009 of the Politburo on the results of years of implementing the Resolution of the Xth National Party Congress, Resolution of the 12th Party Congress of Quang Ninh province and the guidelines and solutions for development of Quang Ninh province till 2010, orientations to 2020 (3) Notice No 108-TB/TW dated October 1, 2012 of the Politburo on the Project "Rapid socio-economic development, lasting; firmly ensuring national defense and security and piloting to build 02 special administrativeeconomic zone, especially Van Don and Mong Cai" 3.2 Practical development of economic zones in Quang Ninh province 3.2.1 Implementation of economic zone development models Since 1996, the Government has piloted policy mechanisms at Mong Cai border gate under Decision No 675/QD-TTg dated September 18, 1996 Quang Ninh continues to established: Van Don coastal EZ (Van Don district) Border-gate economic zones: (1) Mong Cai (Mong Cai city); (2) Hoanh Mo Dong Van (Binh Lieu district); (3) Bac Phong Sinh (Hai Ha district) Like the EZs in other localities, the models of EZ development in the Quang Ninh province aim to develop different sectors and fields, but the competitive advantage of the models is built on the principle of promote the advantages of scale, forming concentrated production areas Focus on advantage factors: (1) synchronization of technical infrastructure, (2) geo-economic factors, (3) favorable location for production development, service provision and attracting investment The management of EZs is organized to 03 levels In recent years, with the dynamism and initiative, Quang Ninh has built modern infrastructure system, improving the business environment, improving 15 the quality of human resources This is an important innovation process from a simplified and multi-objective economic development model 3.2.2 The situation of developing economic zones in Quang Ninh province 3.2.2.1 Developing and proposing mechanism policies to develop economic zones in the Quang Ninh province The Quang Ninh province actively researched development solutions, took the lead in building investment calling policies The mechanisms and policies are adjusted and supplemented in accordance with the practical situation; Specifically, Decision No 2339/2013/QD-UBND dated September 6, 2013 promulgating policies to support and prioritize investment in IPs and EZs 3.2.2.2 The situation of developing, adjusting and implementing development plans in economic zones Mong Cai Economic Zone: has basically completed the master planning: (1) Socio-economic development master plan (2) General construction planning (3) Planning of Vietnam border economic cooperation zone South - China Hai Ha EZ Planning, Hoanh Mo - Dong Van and Bac Phong Sinh EZs have been issued and implemented Van Don EZ Planning has been completed and updated, adjusted: Decision 1856/QD-TTg 2018 dated 27/12/2018 Master Plan of Van Don Economic Zone to 2030, vision to year 2050 3.2.2.3 Situation of investment and development of infrastructure system Based on the provincial socio-economic development plan of EZs associated with the localities in the province, Quang Ninh is interested in proposing and proactively allocating local budgets and accumulating extreme in attracting and exploiting resources outside the budget for infrastructure systems State budget capital: including capital for socio-economic development programs in regions; storm shelter program; tourism infrastructure; program 134; Program 135; program of strengthening and upgrading sea dike systems; infrastructure of border gate economic zone; Government bond capital Non-budget capital: Quang Ninh actively mobilizes other resources to focus on infrastructure investment, initially meeting the requirements of production, 16 business, trade and service activities in the locality Mong Cai industrial zone: in the period of 2012 - 2017, concentrate resources to invest 327 works and construction items with a total investment of VND 2,152,024 billion Northern Phong Sinh and Hoanh Mo - Dong Van economic zones: to achieve initial results Van Don EZ: 50 projects with a total investment of 131.392 million USD and 12,950,093 billion VND, including an airport project with a total investment of 6,759 billion VND 3.2.2.4 Investment attraction in economic zones By 2018, the border gate economic zones in Quang Ninh province have 93 investment projects (18 FDI projects and 75 domestic projects) still valid with a total registered capital of 292.8 million USD and 9,594,896 billions dong Van Don coastal economic zone so far has 75 projects investing capital nonbudget with a total registered investment of over 9,800 billion VND 3.2.2.5 Situation of production and business activities in economic zones After more than 20 years from the implementation of Decision 675/TTg; So far, trade and import-export activities have been very exciting Mong Cai economic zone: developing industries - handicrafts and services, with over 1,000 diversified businesses, over 5,250 business households Bac Phong Sinh economic zone: trade, import and export activities in the form of border trade Hoanh Mo - Dong Van export zone: import and export activities, Hoanh Mo and Dong Van border gate markets with about 300 business households Import-export turnover has grown quite over the years About budget revenue increases steadily The border gate economic zones are also a tourist attraction, such as the average growth rate of tourists in the Mong Cai zone of 16.9% per year; revenue from tourism increased by an average of 22% / year The number of employees working in the EZ increased rapidly Regarding environmental protection, enterprises are aware of complying with regulations on environmental protection, collection and contracts of transporting and treating ordinary solid waste and waste according to regulations 3.2.3 General summary of some achievements, limitations and causes 17 3.2.3.1 Achievements: (1) EZs have contributed to the renovation of the investment and business environment of the Quang Ninh province (2) attracting a large amount of capital invested in technical infrastructure and business production (3) Economic zones help promote industrial production development, forming a number of key industries (4) Economic zones have an important contribution to socio-economic development 3.2.3.2 Existence and limitations: (1) Management mechanism is still inadequate: The EZ Management Board is the focal point managing the EZ in the locality, the district government manages the territory, by field (2) Investment incentives for EZs have been interested but not really attractive (3) The mobilization of infrastructure development resources of EZs is still difficult (4) Economic linkages in ineffective development: between enterprises in the EZ and between EZs and outside local economies (5) EZs poses environmental challenges such as air, noise and waste 3.2.3.3 Cause: (1) Economic planning is not closely linked with regional planning (2) Extensive investment, lack of synchronous technical and social infrastructure (3) Infrastructure investment progress is not satisfactory due to small capital scale (4) The decentralization and authorization for the Management Board are incomplete and consistent (5) Attracting investment in production and business in EZs with many difficulties 3.3 Evaluate factors affecting economic zone development in the Quang Ninh province 3.3.1 Request for innovation The economic model currently exists many limitations, facing the challenge of international economic integration Researching the new EZ model with advantages, more attractive to investors, overcoming the shortcomings and limitations of the current models is very necessary 3.3.2 Assessing the impact level of factors related to the model of economic zone development in the Quang Ninh province There are many factors affecting the implementation of models of economic 18 zone development in the Quang Ninh province (1) Creating and developing EZ model (2) Attracting investment resources, absorbing science and technology, making full use of international labor division (3) Promoting and exploiting to the fullest potential, strengths and resources of the locality (4) Associated with elements of the era, taking the lead in the achievements of the industrial revolution (5) Creating jobs, developing human resources and improving people's lives (6) Participate in integration, promote the process of green growth, green economy, green production 3.3.3 The impact of international economic integration on innovation of economic zone development model in the Quang Ninh province 3.3.3.1 Positive impacts: Promoting economic development, Environmental improvement, business investment; Developing human resources and scientific and technological qualifications; Expanding markets and partners; Create jobs, solve social problems well; Promote changes in mechanisms and policies; Cultural exchange; Promote institutionalism; Promoting the national role; Solving global common problems 3.3.3.2 Negative impacts: on socio-economy; Unbalance and instability; Increase the gap between rich and poor; Challenges to natural resource and environmental use; Political stability; The attack of foreign culture; Security CHAPTER 4: INNOVATING DEVELOPMENT ECONOMIC ZONE MODEL IN THE QUANG NINH PROVINCE DURING INTERNATIONAL ECONOMIC INTEGRATION 4.1 Background forecast and affecting factors to the innovation of economic zone development in the Quang Ninh province till 2030 The renovation of the economic zone development model has become a major concern, considering this as a strong driving force to accelerate the process of economic reform and integration; The increasingly important role of publicprivate partnership (PPP) With many successes in socio-economic development, possessing potentials 19 and clear strengths; Quang Ninh is a locality with outstanding political determination and many innovations in economic development models 4.2 Select economic development model in Quang Ninh province in the coming time 4.2.1 Model selection perspective (1) Developing a model of EZ development with modern administration, a streamlined, effective, efficient and convenient administrative apparatus; superior preferential mechanisms and policies, international competition (2) Put in the master plan and regional and national development linkages Ensuring sustainable development with high open economy (3) Building a synchronous and modern infrastructure system Attracting strong investment, especially creative resources, advanced management methods (4) attract, train human resources (5) Determined highly, energetically, creatively, implemented and promptly adjusted to suit reality 4.2.2 Objectives of building new economic zone development model (1) Promoting and exploiting to the fullest potential, strengths and resources of the locality (2) Attract investment resources, absorb science and technology, make full use of international labor division (3) Creating and developing EZ model is a factor of stimulating, catalyzing, promoting local economic restructuring towards sustainability and integration (4) Creating jobs, developing human resources and improving people's lives (5) Participate deeply in the integration process, adapt to the trend of liberalization; promote the process of green growth, green economy, green production (6) Attaching to the elements of the era, leading the acquisition of achievements of the industrial revolution and technological advances 4.2.3 Proposing a new model of economic zone development in the Quang Ninh province Building an economic zone to a new development model with modern administration, streamlined and effective apparatus; preferential mechanisms and policies; convenient administrative procedures; pilot application of private governance model for economic zones New development model: operating under the modern market mechanism; extrovert, high openness In order to achieve the objectives of reforming the economic development 20 model, it must be based on the following principles: (1) Developing people, ensuring and improving people's lives for purposes (2) Testing, innovating the growth model, restructure the economy, developing green economy, entertainment industry as a orientation (3) Institutional reforms, mechanisms, policies and flexible operating measures make breakthroughs (4) Developing infrastructure, synchronous administrative reform, developing high quality human resources as a foundation (5) Application, transfer and mastery of science and technology, increase productivity and market orientation as a driving force (6) Developing culture, building ecological civilization, saving natural resources and protecting the environment as a key (7) Open the door cooperate to create creativity, get creative for sustainable development (8) development to contribute to maintaining defence security and vice versa 4.2.4 How to promote elements of the new economic zone development model in Quang Ninh province 4.2.4.1 Leadership direction, institutional building (1) Leadership and direction: Establish provincial steering committee Raising awareness, directing research, reforming leadership methods and organizing management and operating for the new model (2) Develop a project on organizational arrangement and EZ project (3) Organizing a streamlined, effective, multi-disciplinary and multi-disciplinary management system Good propaganda and advocacy work Reforming administrative procedures in a unified, simple, streamlined and publicized process 4.2.4.2 Developing high quality human resources (1) Promoting talent attraction; focusing on improving the quality of local human resources, especially cadres and civil servants; fostering at home and abroad; (2) Develop mechanisms to attract and use talents; Praise and reward timely and worthy Develop a project on training and developing human resources of the EZ Prioritize investment in universities and vocational training in the province; Priority can be given to Van Don and Mong Cai by roadmap (3) Develop preferential policies and appropriate training industries to attract employees (4) Linking with leading domestic and foreign training institutions (5) Research on building "talent area" in EZ (6) Interested in 21 considering training and attraction funding 4.2.4.3 Development of cultural and social fields (1) Field of culture - sports: building, developing cultural identity, sustainable spiritual foundation Attract investment to build some great cultural and sports institutions; promote the value of cultural heritage, scenic spots and traditional festivals of the locality into branded tourism products; construction and development of cultural industry - entertainment industry (2) Education and health sector: investing in high technology for education and health from budget and non-state Develop modern medical services and international hospitals Developing high quality education and building an international multidisciplinary university and attracting famous universities, research institutes around the world to open branches and sub-institutes in EZ (3) Regarding poverty reduction and employment: strive to reduce the number of poor households, narrow the gap between rich and poor Labor restructuring from agricultural sector to non-agricultural sector Implementing solutions to increase mechanical population to serve economic development 4.2.4.4 Developing science and technology and environmental protection Develop a roadmap and plan for science and technology development Focus on application, transfer and mastering technology Development and application in electronic transactions; modern electronic government development; promote deployment of online services Development of biotechnology, biodiversity protection; treatment of environmental pollution, new materials technology, application of clean production technology, environmentally friendly technology 4.2.4.5 Developing synchronous infrastructure Completing the planning and investment in developing a synchronous and modern EZ infrastructure system in association with the general infrastructure planning of Quang Ninh Promote socialization to urgently invest and build motivation projects (1) Development of high-class tourism and entertainment industry infrastructure; modern financial and banking services; high quality health and education; implementing smart urban (2) Focus on investment in transport infrastructure; areas of the border, tourist wharves, tourist ports and 22 yachts (3) Complete the national grid system (4) Investing in construction of some reservoirs, dams and rainwater tanks (5) Building a financial-banking center (6) Connecting with international diversity, promoting the application of information technology to the management, exploitation and operation of economic and social infrastructure systems and the entire economy (7) Developing education and training infrastructure from pre-school to university standards (8) Building an international hospital; to form high-quality convalescence and health care centers and modern equipment (9) deploying construction of resorts, sea-island eco-tourism; high-class hotel system; international conference center; trade center 4.2.4.6 Mobilize financial resources For non-budget capital sources: Implementing total solutions to attract investment resources, especially foreign investment resources Diversify investment forms (BOT, BTO, BT, PPP ) in EZs For the State budget capital: the proposal is entitled to the accounting mechanism according to the plan to reduce the rate of regulating the central budget (coal export tax and import and export tax of the province) Mobilize resources from the successful experience of EZs such as Shenzhen EZ and Dubai's FEZs 4.2.4.7 Promote investment promotion Investment promotion is focused, consistent with the objectives and structure of the industry according to each stage of economic development: Building investment promotion fund in the form of socialization Focusing on links, seeking partners and strategic investors: cooperating with partners from Japan, Korea, Singapore, to jointly invest in building and developing EZs or cooperating with other partners big corporation 4.2.4.8 Solutions on mechanisms and policies (1) In terms of finance, currency and banking: financial, monetary and banking mechanisms and policies ensure international incentives and competition (2) Regarding tax preferential policies: implementing the principle of reducing before and after collection; reduce taxes and increase collection of fees and charges (3) Incentives for land and water surface rent: investment projects in EZs are entitled to incentives for land rents and water surface rents in line with 23 the target of economic development, the province and the legal regulations the law (4) Policies on land and housing: within the legal framework (not exceeding 70 years) Attract businesses, large corporations to locate their offices in the EZ (5) Policies on training and developing human resources: Prioritize the construction of vocational training schools, Develop preferential mechanisms and policies to link with foreign institutions, implement training high level professions according to international standards (6) Immigration policy and dispute resolution: building a convenient customs clearance system (7) Investment mechanism of state budget and planning work: budget to support investment in infrastructure, (8) Mechanism of investment promotion bonus: building Investment Promotion Fund managed by the EZ management agency 4.2.4.9 Ensuring national defense and security; foreign affairs expansion; promote regional links and population management (1) Ensuring national defense and security, closely combining defense and security with economic development (2) Expanding and improving the effectiveness of external activities (3) Promote regional links, link transport infrastructure development Constructing economic zones in the tourism and entertainment industry chain ecology, environment 4.2.4.10 Renovating the political system and government organizations Building a clean and strong party grassroots organization; arranging streamlined and efficient apparatus; build and improve the quality of the team; payroll streamlining: reduce district-level civil servants; reducing communelevel non-specialized officials; reduce the number of non-village and village cadres; reducing commune-level civil servants 4.3 Conditions for successful implementation of the new economic zone development model in the Quang Ninh province (1) Regarding the mechanism of socio-economic policies: Regulating policies on taxes, finance, banking, land, investment, trade, housing, attracting human resources, labor and wages with appropriate and favorable incentives (2) About the administrative apparatus: Specifying the functions and tasks of the EZ and local authorities; to unify, not overlap (3) Constructing essential 24 infrastructure system: Completing planning and investing in developing synchronous and modern EZ infrastructure system in association with general infrastructure planning of Quang Ninh Identify a list of essential infrastructure projects to focus investment 4.4 Some specific recommendations to the state agencies (1) Develop and complete planning, conditionally need to hire foreign consultants to implement (2) Research and propose to issue specific mechanisms and policies (3) Strengthen the Steering Committee of Quang Ninh province on the construction of EZs (4) Develop a plan and balance the investment support capital for the technical infrastructure of the EZ in accordance with the law on investment and state budget (5) Solving the problems of the process of promoting the new economic zone development model (6) Considering to focus on researching and renovating the economic model in the Quang Ninh province in two directions: moving Van Don EZ into a SEZ, developing Mong Cai - Hai Ha EZ in the direction of a combination of economic structure CEZ or EZ across borders CONCLUSION The implementation of EZ models in the Quang Ninh province has set an objective requirement to have profound innovations The thesis has the following results: (1) Systemize theoretical basis for economic zone development model in international economic integration (2) Researching the theory of economic development, experience in building and developing economic zones in the world and in the country; propose and evaluate key factors that have an important impact on EZ development model (3) Analyze and assess the status of the development of economic zones in Quang Ninh province (4) Proposing development orientations, models and methods to promote and solutions to develop economic zones in Quang Ninh province in international economic integration (5) Some proposals and recommendations 25 THE PUBLICATION BY AUTHOR Le Hong Giang (2011), Local economic development associated with enterprise development, Economy and Forecast Journal, (496), (pp 43 44) Le Hong Giang (2011), Current cluster development policy in Vietnam, Economic management Journal pp 36 - 40 Le Hong Giang (2017), Promoting the role of enterprises and educational and training institutions in human resource development in EZs in the integration process, Vietnam integration Journal pp 93 - 95 Le Hong Giang (2017), Successful experience of economic zones in the world and suggestive to Vietnam, Economics and Forecast Journal, (17), pp 56 - 58 Member of provincial-level scientific project "Solutions to improve the effectiveness of management and use of official development assistance projects (ODA) in Quang Ninh province", Quang Ninh province, to complete pre-acceptance tests quite on June 4, 2003 Member of provincial scientific project "Study and propose some solutions to continue to innovate, develop, improve the efficiency of collective economy", Quang Ninh province, complete acceptance test of excellent grade on June 04, 2010 ... ECONOMIC DEVELOPMENT IN QUANG NINH PROVINCE 3.1 The Quang Ninh province conditions has important impacted on economic zone development 3.1.1 Potential, advantages Quang Ninh has a strategic location,... developing economic zones in Quang Ninh province 3.2.2.1 Developing and proposing mechanism policies to develop economic zones in the Quang Ninh province The Quang Ninh province actively researched... the Quang Ninh province There are many factors affecting the implementation of models of economic 18 zone development in the Quang Ninh province (1) Creating and developing EZ model (2) Attracting