Tóm tắt Luận án Investment capital for socio-economic development of Phu Quoc island

Nội dung tài liệu: Tóm tắt Luận án Investment capital for socio-economic development of Phu Quoc island

1. MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY NGO VAN THIEN INVESTMENT CAPITAL FOR SOCIO-ECONOMIC DEVELOPMENT OF PHU QUOC ISLAND SUMMARY OF DOCTORAL THESIS Major: Finance - Banking Code: 62.34.02.01 Academic advisor: Assoc. Prof. Dr. Le Thi Tuyet Hoa HO CHI MINH CITY - 2017
2. 1 CHAPTER 1: INTRODUCTION 1.1. The urgency of the research topic Phu Quoc, an island district of Kien Giang province in the Southwest of Viet Nam, is considered as the center of the Southeast Asia. The master plan for accelerat- ing socio-economic development in Phu Quoc island to 2020 aims to develop the isl- and district into a special administrative-economic zone by 2020. It is believed that investment capital plays a vital role in accelerating economic development. In order to ensure the achievement of the aim of the master plan for Phu Quoc island, efficient solutions to increasing investment capital are required. The researcher, thus, is interested in conducting this study on “Investment capital for so- cio-economic development of Phu Quoc island”. 1.2. Research goal/ research objective This study investigates solutions to increasing investment capital in accelerating socio-economic development in Phu Quoc island in the future. 1.3. Research questions: This study aims to explore the answers to the following research questions: 1) What is the current situation of investment capital in accelerating socio- economic development in Phu Quoc island? 2) What is the impact of investment capital on socio-economic development in Phu Quoc island? 3) What are factors influencing the attraction of investment capital in accelerat- ing socio-economic development in Phu Quoc island? 4) What is the trend of the factors influencing the attraction of investment capi- tal in Phu Quoc island? And what is the impact of the factors influencing the attrac- tion of investment capital in Phu Quoc island? 5) What are solutions to increasing investment capital in accelerating socio- economic development in Phu Quoc island in the future? 1.4. Research subject and scope - Subject of the study: Investment capital in accelerating socio-economic de- velopment in Phu Quoc island - Scope of the study: the research focuses on investment capital in accelerating socio-economic development in Phu Quoc island in the period of 2011- 2016, include mobilizing investment capital and investment capital utilization 1.5. Research method - Data collection method: both primary data and secondary data were col- lected and analyzed through the SPSS 16.0 software. The secondary data was from 2011 to 2016 while the primary data was from 01/ 10/ 2016 to 31/12/2016. - Research method: a mixed-method was employed in this study on Invest- ment capital in accelerating socio-economic development in Phu Quoc island, which could provide the researcher with a great opportunity to gain a more insightful look
3. 2 into the research topic under investigation when combining quantitative and qualita- tive methods of data collection and analysis including synthesis, analysis, compari- son, inheritance, expert method, and quantitative method with the combination of ex- ploration analysis and multivariate regression analysis. 1.6. Previous related studies In the world, a great number of researchers have conducted studies on in- vestment capital in accelerating socio-economic development as Robert Solow (1956), Michael Regan (2016), Lin Xiong (2010), Dunning (1977), Kinda (2010), Vidya Bhushan Rawat, Mamidi Bharath Bhushan, Sujatha Surepally (2011). Numerous related studies were also conducted in Vietnamese context by Nguyen Van Hung (2009), Nguyen Van Binh (2017), Nguyen Van Dung (2014), Nguyen Hong Ha (2015), Bui Manh Cuong (2012), Mai Van Nam (2008), Le Vinh Danh (2004), Phan Thanh Mao (2003), Nguyen Dau (2005), Nguyen Thi Giang (2010), Dinh Van Phuong (1999). Results of the literature review on previous related studies indicate that re- searches on investment capital in accelerating socio-economic development in Phu Quoc, which is becoming the first special economic-administrative zone of Viet Nam by 2020, have been limited. New points of the research are as follows: (1) The study has a combination of qualitative and quantitative research method with a particular scale of Phu Quoc isl- and; (2) With abundant and authentic materials, the status and impact of investment capital on socio-economic development of Phu Quoc Island in the period 2011-2016 has been clarified; (3) Detecting factors that affect socio-economic development; (4) Proposing measures to increase investment capital for socioeconomic develop- ment of Phu Quoc island in the coming time. 1.7. The significance of the study - Theoretical contributions: results of this present study could contribute more insights into literature on the topic under investigation, investment capital in accelerating socio-economic development. - Practical contributions: results of this present study could also raise the local authorities’ awareness of the significance of investment capital and of efficient solutions to increasing investment capital in accelerating socio-economic develop- ment in potential areas, especially in Phu Quoc island. 1.8. The organization of the study Chapter 1: Introduction Chapter 2: Theoretical framework on Investment capital in Accelerating So- cio-economic Development Chapter 3: Current situation of investment capital in accelerating socio- economic development in Phu Quoc island
4. 3 Chapter 4: The analysis of factors affecting the attraction of investment capi- tal in Phu Quoc island Chapter 5: Conclusions and solutions to boosting investment capital for so- cio-economic development in Phu Quoc island 1.9. Research process In order to achieve the research objectives, from the theoretical framework and previous researches, the author has proposed the appropriate research method, then analysis of the situation, Assess the impact of investment capital on socio- economic development, identifying factors affecting on the attraction of investment capital to Phu Quoc Island, from which draws the successes, limitations and causes as the basis for proposing solutions to increase investment capital for socio- economic development in Phu Quoc Island.
5. 4 CHAPTER 2: THEORETICAL FRAMEWORK ON INVESMENT CAPITAL FOR SOCIO-ECONOMIC DEVELOPMENT 2.1. Investment and development investment Investment could be defined as the current consumption savings as a portion of the social wealth which is utilized in a new process of social production to make more wealth for the society in the future. It is believed that investment is the key to economic growth. Tinh (2009) proposed that development investment is investing assets and labor force, in which investors spend their savings on activities with the intention of mak- ing future profit or more assets for themselves and the social economy. 2.2. Investment capital 2.2.1. Concept Investment capital could be considered as all expenses utilized to increase or maintain assets in a specific period of time. 2.2.2. Investment capital sources Investment capital sources include state investment capital, private sector in- vestment capital and foreign investment capital. 2.2.3. Mobilizing investment capital  Concept of mobilizing investment capital According to Kham (2001), mobilizing investment capital could be seen as a process of determining and searching for financial sources for investment activities. In order to carry out any investment activities, questions of capital including amount of required capital, sources of that amount of capital, the potentiality of the capital sources, ability of participating of each source and how to take advantage of the in- vestment capital must be handled appropriately.  Indicators of level of investment capital mobilization The level of investment capital mobilization is frequently calculated based on the following indicators: total mobilization, the ratio of the mobilized investment cap- ital to the expected investment capital, capital growth rate, the proportion of imple- mented investment capital to the investment capital of the whole country and of the other regions, and investment capital structure.  Factors affecting the mobilization of investment capital for socio- economic development Attracting investment capital to a country or a locality could be influenced by the following factors: (1) For state capital, which is often influenced by local eco- nomic planning, budget revenues, central interest, state enterprise development poli- cies; (2) Non-state capital is often influenced by factors such asinfrastructure, invest-
6. 5 ment policies, living environment, natural resources, local trade promotion and mar- keting, human resources, credit support and input cost. 2.2.4. The efficiency of investment capital The coefficient ICOR, which reflects the relationship between investment capi- tal and economic growth (Harrod-Domar model), was employed in order to examin- ing the efficiency of the utilization of investment capital. Investment Capital efficiency is influenced by factors such as natural condi- tions; economic policy; factors of politics, culture, historical society, customs; and investor capacity factors. 2.3. Socio-economic development and the role of investment capital in accelerating socio-economic development 2.3.1. Socio-economic development Huan (2006) defined socio-economic development as a process of economic in- crement in all aspects over a specific period of time. Socio-economic development encompasses economic growth including the in- crease in volume of output, and progress in economic structure and the society. 2.3.2. The role of investment capital in accelerating socio-economic devel- opment Investment capital plays the following significant roles in accelerating socio- economic development: - First, investment capital accelerates economic growth. - Second, investment capital accelerates applying science and technology in or- der to boost labor productivity, product quality and competitiveness of the economy. - Third, investment capital boosts the efficiency of the utilization of absolute and comparative advantages of a economy to shift the economic structure in the di- rection of modernization. - Fourth, investment capital facilitates the process of solving social problems. 2.3.3. Indicators of socio-economic development In order to assess the level of socio-economic development, three main clusters of indicators are employed: (1) economic growth indicators, (2) economic structural indicators and (3) social development indicators. 2.4. Special economic zone and role for socio-economic development Dobrogonov and Farole (2012), ‘Special economic zone’ (SEZ) to cover all forms of a geographically demarcated area within a country, which functions with different administrative, regulatory and fiscal regimes to the rest of the country. Under the criteria of the United Nations Development Program (UNDP), the Special Economic Zones are divided into three main categories: Free Trade Zones (FTZ), Export Processing Zones (EPZ) and Multi-purpose zones (MPZ). According to Ge (1999), the creation of special economic zones has the follow- ing benefits: creating jobs for workers, increasing exports and diversifying products
7. 6 of the economy, increase foreign exchange, increase local budget revenue, stimulate businesses outside the economic zone to develop and receive advanced technology from abroad. 2.5. Experience in enhancing investment capital for socio-economic devel- opment Considering experience in enhancing investment capital mobilization in several countries and provinces, some precious experience for enhancing investment capital in Phu Quoc island could be concluded below: - Establishing a unique mechanism - Applying models of public-private partnerships (PPPs) - Intensifying administrative reforms - Developing vocational training - Promulgating more preferential tax policies - Appreciating investors Conclusion of chapter 2 A detailed theoretical background of investment capital for socio-economic de- velopment was presented in chapter 2, which is considered as the significant frame- work for the subsequent chapters.
8. 7 CHAPTER 3: CURRENT SITUATION OF INVESTMENT CAPITAL FOR SOCIO-ECONOMIC DEVELOPMENT IN PHU QUOC 3.1. Analyzing the natural and socio-economic conditions of Phu Quoc isl- and Phu Quoc is naturally gifted with priceless assets including mountains, forests, and seas, which facilitates its development of the sea-island tourism, eco-tourism ans resort tourism as one of the top brands in the region and the world. The social econ- omy of Phu Quoc island has been recently flourished with high economic growth rate, the highest per capita income of Viet Nam, and the significant improvement on educational level of its citizens. 3.2. Current situation of investment capital mobilization for socio- economic development in Phu Quoc island 3.2.1. Investment capital mobilization policies in Phu Quoc Island The government and local authorities have promulgated a number of policies to increase the effectiveness of mobilizing investment capital in Phu Quoc island in- cluding the establishment of the developmental plan until 2030, the establishment of Phu Quoc Economic Zone Management Board aiming to solve several urgent mis- sions in the locality and manage some special mechanisms such as preferential me- chanisms accelerating socio-economic development in Phu Quoc. However, some other preferential mechanisms on taxation, land-rent, and special business types (e.g. casino ) has not been innovated. 3.2.2. Situation of the number of investment enterprises and registered projects 3.2.2.1. The number of investment enterprises According to data from the Department of Planning and Investment of Kien Giang province, the number of investment enterprises in Phu Quoc have rapidly increased every year with the average increase of 6.9% per year. Non-state-owned enterprises have made up the fastest increase in investment capital, accounting for the most pro- portion of 99% of the average increase in the total number of investment enterprises in Phu Quoc island. 3.2.2.2. The number of registered projects Thanks to its great potential for attracting investment capital, Phu Quoc at- tracted a total investment capital of 215.194 billion, which was mainly invested in tourism promotion; and 193 investment projects were approved in the period from 2011 to 2016. 3.2.3. The scale of investment capital mobilization in Phu Quoc Island Total investment capital in Phu Quoc from 2011 to 2016 had an average an- nual growth rate of 41.2% and accounted for an average proportion of 44.2% of the total investment capital of the province. The total mobilized investment capital
9. 8 reached 117% of the plan of capital mobilization in Phu Quoc in the period of 2011- 2016. It is obvious that two significant sources of the total investment capital of the whole society are state investment capital and non-state investment capital. The pro- portion of investment capital mobilized from foreign and other sources is insignifi- cant. Table 3.4. Total investment in Phu Quoc period 2011-2016 Unit: billions VND Year Content 2011 2012 2013 2014 2015 2016 Kien Giang investment capital 20.150 24.407 28.289 33.438 40.517 46.850 Mobilization plan 4.000 4.800 5.700 6.912 10.000 15.000 Phu Quoc island investment capital 3.697 3.178 3.456 7.435 15.933 20.720 - Compared with Kien Giang (%) 18,3 13,0 12,2 22,2 39,3 44,2 - Compared with mobilization plan (%) 92,4 66,2 60 107,6 159,3 138,2 - Capital growth rate(%) 8,4 -14 8,7 115,1 114 30 (Source: Kien Giang Statistical Office) 3.2.4. The structure of investment capital mobilization of Phu Quoc Island From 2011 to 2016, a contrast between state investment capital sector and non-state investment capital sector in the structure of investment capital of Phu Quoc island was observed. The proportion of state investment capital sector decreased from 71.2% in 2011 to 13.4% in 2016 while that of non-state investment sector increased from 28.5% in 2011 to 86.06% in 2016. 3.2.4.1. Structure of investment capital from state sector - Investment capital sources Although state investment capital increased in the period from 2011 to 2016, its proportion significantly decreased in comparison to the proportion of investment capital mobilized from private sector. It is transparent that Phu Quoc is currently be- ing planned to develop into an economic zone which is expected to become a special economic zone by 2020. Administratively, Phu Quoc is, however, currently still an island district of Kien Giang province. Therefore, state-owned investment capital in Phu Quoc island remains under the control of the provincial administration of Kien Giang. - Management levels Considering the management levels of investment capital, investment capital from state budget tends to gradually decrease in the period from 2011 to 2016. Local budgets, in contrast, gradually increase in the same period of time. 3.2.4.2. Structure of investment capital from non-state sector
10. 9 According to results of data analysis, investment capital from non-state sector has steadily increased each year with an average annual growth rate of 76.2%. The proportion of the total investment capital from non-state sector made up 28.4 % in 2011 and grew up to 86.12% in 2016 in comparison to the total investment capital of the whole society. In terms of non-state capital structure, investment capital from both enterprises and residential sector has rapidly increased; investment capital from enterprises increased faster than that from the residential sector. 3.2.4.3. Structure of foreign investment capital In general, foreign investment capital in Phu Quoc has been at really low proportion. Statistically, there have been only 3 registered foreign enterprises accounting for 0.46% of the total investment capital in 2016. 3.2.4.4. Structure of investment capital from other sources Statistically, the total investment capital from other sources such as socialization capital and residents’ funds for expenditure for public works like improving rural roads and other social welfare projects was 9 billion, accounting for about 0.04% of total investment in 2016. 3.3. The situation of the utilization of investment capital for socio-economic development in Phu Quoc island 3.3.1. Structure of the utilization of investment capital in Phu Quoc Island Services and some other outperformed sectors has been supposed to have ex- tremely great growth rates of all. In 2016, the investment capital increased by 8 times in comparison to the investment capital in 2011, accounting for 85.5% of the total investment. In terms of structure of investment capital in services and other sectors, the total investment capital of Phu Quoc island portioning in food and accommoda- tion services, real estate businesses, transport services, and entertainment was 54.96%, 9%, 6% and 4% respectively. It could be concluded that the majority of mo- bilized capital in Phu Quoc was invested in tourism. Table 3.9. Structure of investment capital in Phu Quoc period 2011-2016 Unit: billions VND Year Content 2011 2012 2013 2014 2015 2016 Total 3.697 3.178 3.456 7.435 15.933 20.720 1. Agriculture -Forestry -Se afood 97 145 158 170 364 518 2. Industry - Construction 814 1.079 1.271 974 1.977 2.493 3. Services and other sectors 2.786 1.954 2.027 6.291 13.592 17.709 Capital structure(%) 100 100 100 100 100 100 1. Agriculture -Forestry -Se afood (%) 2,6 4,5 4,5 2,3 2,3 2,5