Border economic zone and its impact on the development of the Northeast region

1a. Line model 1b. Intersecting fan model

rolling

1c. Fan model intersecting at the blades 1d. Diffusion model

1.3. Model of a border economic zone:

This model is based on the economic development needs of each country, the ability to communicate with third countries through transportation systems such as roads, airports, ports, waterways; based on favorable natural conditions, countries will arrange pairs of international, national and local border gates.

This model is based on a number of principles such as: facilitating the control of vehicles, people and goods passing through, in which there needs to be coordinated support for public utilities such as electricity, water, lighting, trees, environment. In addition, there needs to be good service for the accommodation of people as well as goods and transit vehicles,... There are two specific models as follows:

- Symmetrical model: is a model built according to the development orientation of each side and national agreement, each side builds an independent border economic zone, competitive development, so it has symmetry, each side has the same infrastructure, so they have similar layout points in terms of structure including: residential area, commercial area, production area, entertainment area, administrative area.

Diagram 2: Diagram of the symmetrical border gate economic zone model

Production area

Control gates

Administrative area

Commercial area and

service

Maybe you are interested!

Median

Production area

Control gates

Administrative area

Commercial area and

service

Special model: this is a two-phase association model, creating a special territory, the two parties can agree by a treaty, accordingly indicating a reasonable, fenced, uninhabited territory. The difference in principle of the model is the formation of an infrastructure business company that leases all utilities in the area according to the list of business lines. This model has the advantage of best exploiting the infrastructure and has the ability to attract international investment. However, the mechanism for defining the responsibilities and benefits of each party needs to be clearly defined.

Diagram 3: Diagram of special border economic zone

Production area (joint venture company investing in development and trading of infrastructure)

floor rental)

Control gates

Administrative area

Commercial and service area

dividing line

Production area (joint venture investment development and

business down

Control gates

Administrative area

Commercial and service area

floor rental)

2. Institutional model.

2.1. General principles:

- Respect international law, national and regional agreements on the basis of ensuring peace, prosperity and mutual benefit.

- Environmental protection and sustainable development.

- Proactively inform each other to cooperate and resolve problems with goodwill based on respect for traditions, customs and cultural identity of each nation.

- Create the best conditions for businesses, investors and people to do business.

- Decentralize the resolution of frequently arising issues to regional authorities according to the principle of symmetry.

There should be regular exchange of information between countries sharing borders on the development of mechanisms and policies for each country's border economic zones, in order to coordinate and implement appropriate adjustments. The contents that the parties are interested in are:

- Survey the actual resources in the conventional area such as natural conditions, socio-economics, culture, ethnicity and customs, advantages and limitations.

- Issues on general policy mechanisms such as guidelines, policies, legal documents, agreements, and institutional models in border gate areas.

- Specific policies on import and export activities, tariffs and customs procedures, immigration and exit procedures for people and vehicles; documents regulating foreign investment in this area, as well as measures to ensure security, order and environmental protection measures for the development of border economic zones.

- The proposed agreement documents to be discussed and the cooperation hierarchy. The joint investment projects and the list of directly participating partners.

2.2. Intersection of incentive policies

Border economic zones belong to administrative areas down to the grassroots level (villages, residential groups) and are decentralized by the Central Government to encourage development more than other areas, but are not separate administrative areas like special economic zones, so border economic zones are policy intersection areas.

2.3. One-stop shop applies to decentralized management:

One of the issues that people are interested in and worried about is the problem of entering and exiting the economic zone at the border gate and immigration. There needs to be transparency in work and unity among service units regarding the issue of fee collection.

Border economic zones have many different forms and levels of management, but all follow the one-stop principle for investment and trade activities.

- Independent border gates, formed according to international treaties ratified by the host government and assigned to the customs sector for management, have their own regulations.

- Free trade zones including provincial or national free industrial zones, this area has no population, imported goods are exempt from tax, the conversion of goods such as changing brands, packaging, assembly, etc. is not subject to customs supervision and when re-exporting or importing, books must be kept under customs supervision and taxes must be paid.

Provincial border economic zones, including the above-mentioned free trade zones, have residents and have their own investment and trade privileges. In favorable areas with airports and ports, special economic zones can be formed with large territories and separate administrative institutions.

3. Model of an unpopulated border economic zone.

Each country has four border gates. The trend of trade liberalization, goods, in the agreed list are free to enter the zone, only charge fees and the other side is exempt from import tax. Only control goods exported from the zone to the domestic market, this depends on the policy of each country.

Charge fees according to the listed list for goods entering the zone from within the country and entering the zone from the other side.

Regulations on types of goods produced and traded in the zone are exempt from customs control, not subject to any taxes but must pay land and service taxes at higher rates than domestic rates, subject to taxes when exported from the zone to the domestic market; declare and pay fees when exported to the other side.

There is only one tax gate and three toll gates. The fee is collected once, including the fee for using public facilities in the area without paying such as daily parking, public restrooms for individuals, security and order... and is exempt from taxes and fees when bringing personal goods back to the country and when leaving the country.

Diagram 4: Diagram of the unpopulated border economic zone.


Check		Free
control		tax
enter		enter,
mouth		list
enter internal		declare
		Recommendation
Enter the order		encourage
by just		export
fade		mouth,
pay fees		declare,

Border economic zone


Recommendation
encourage	Enter the order
export	by just
mouth,	fade
list	pay fee
declare,	fee
Free	Import control enter internal
tax
enter,
list
declare
submit

Border economic zone

Road

stool

way

III. The role and position of border economic zones

Border gate economic zones (BGEs) in Vietnam were established in line with the Party and State's viewpoint of innovation, opening up, and integrating into the world economy in recent years. The first BGE in Vietnam was Mong Cai BGE, established on September 18, 1996 under Decision 675/TTg of the Prime Minister. In recent years, the operation of BGEs has played a very important role in the economic development of the province, the region with BGEs in particular, and the whole country in general. For countries with underdeveloped commodity economies like Vietnam, the development of BGEs will expand the market size, enhance the exchange of goods, stimulate production and increase the competitiveness of commodity products. In addition, the development of BGEs will create a new economic restructuring in a positive direction, increasing the proportion of industry and services, reducing the proportion of agriculture in the total GDP. With significant contributions to socio-economic development in recent times, the economic zones have increasingly affirmed their role and position.

1. For the development of the national economy

Border economic zones are formed with the aim of promoting the advantages of border economic-trade relations, attracting channels of goods, investment, trade, services and tourism from all over the country and from abroad to the domestic market through preferential policies at border economic zones. This attraction has made industries and localities in the country, depending on the scale and attractiveness of preferential policies, shift production and circulation of goods accordingly. In addition, when the border economic zone model is well promoted, it will create the circulation of goods between domestic and foreign countries to exploit the large market of your country. Moreover, in the fields of industry, services and tourism, there are also similar requirements, it is necessary to expand relations.

international cooperation to quickly integrate with countries in the region and the world. This is even more meaningful for a slow-growing commodity economy, with a small market, low purchasing power, and low immediate competitiveness of the economy like Vietnam.

The establishment of border economic zones has enriched the diversification of special economic zones such as industrial zones, export processing zones, and open economic zones built in our country during the recent renovation period. And the establishment of border economic zones has also created an economic development model to arouse and promote the potential border economic zones of localities with special conditions of having border gates.

The economic zone has a strong investment attraction not only for domestic investors but also for foreign investors. To expand production and business, economic growth to implement the Government's regional development plan. In addition, the economic zone actively contributes to economic restructuring, creating a new, modern infrastructure system with long-term value in the locality. On the other hand, the economic zone also contributes to increasing revenue for the local budget, reducing dependence and expectation on the State budget. Moreover, it also contributes to the State budget at the border gate with large revenue, thereby increasing the rate of investment accumulation for the future, while improving the lives of people in border areas through increased investment in infrastructure of the economic zone, improving the intellectual level of people in border areas through exposure to economic activities and markets, thereby spreading to people in border areas in more distant areas.

In addition, the development of the SEZs has strongly promoted the economic exchange between Vietnam and other countries in the region and the world. It acts as a bridge connecting Vietnam's economy with the world economy, aiming to accelerate the economic integration process, contributing significantly to the implementation of the development viewpoint for the period 2001-2002 that our Party proposed in the 9th National Congress of Delegates: "Linking

Border economic zone and its impact on the development of the Northeast region - 2

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