Land Access Support Policy

Domestic, or in other words, determining the comparative advantage of craft village products in both domestic and foreign markets.

District unit

Number of craft villages	Number of households in the craft village	Number of households doing handicrafts labour	Rate (%)	Number of people in the villages profession	Number of workers	Production value of craft villages in 2005 (price) 1994, million VND)	In which: GTSX of craft main	Rate (%)
Tu Son	18	15,311	7,742	50.5	63,355	14,871	1,398,237	1,023,131	73.2
Yen Phong	16	6,538	2,866	43.8	30,274	7,970	1,009,756	1,009,756	100
Gia Binh	8	4,417	1,572	34.5	18,114	3,526	138,458	138,458	100
Luong Tai	6	2,641	554	21.2	11,191	1,509	95,240	77,227	81.0
Thuan Thanh	5	2,350	734	31.2	1,685	1,685	1,685	13,200	78.3
Que Vo	5	1,899	711	37.4	8,179	1.425	28,821	9,546	33.1
Tien Du	4	2,180	1,580	72.5	9.311	5,529	59,955	46,110	76.9
Add	62	35,336	15,759	44.5	142,199	36,515	2,743,667	2,317,428	84.5

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Table 2.5. Summary of activities in craft villages, 2005

Source: Department of Industry and Trade of Bac Ninh province

Craft village products have comparative advantages due to higher labor productivity than other provinces in the region, experience, skills, and diverse and unique product designs. The comparative advantages of these products contain both traditional and innovative elements, upgrading traditional comparative advantages (See Table 2.6).

Unit: million VND

Target

Bac Ninh	Hung Yen	Hai Duong	Eternal happiness
Labor productivity	15.5	13.6	12.3	8.9

Table 2.6. Average labor productivity of private sector industry in some provinces in 2002 (production value/labor calculated at 1994 prices)

Source: [11], [15], [14], [16].

Wooden handicraft products, steel and paper are the main products, and these are also the industry groups with a large proportion in the total industrial production value.

in the area as well as in the total value of products of the same industry of the whole country. (See Table 2.7).

Unit: %

Product

Compared with industrial production outside Bac Ninh		Compared with the national industrial production outside the country
1996	Year 2001	1996	Year 2001
Wood	27.7	21.0	3.5	8.3
Paper	11.1	11.2	4.0	6.1
Steel	11.9	30.0	8.5	27.1
Non-governmental industry	100	100	0.8	2.2

Table 2.7. Comparison of craft village products in 2001 (calculated at 1994 prices) Source: Bac Ninh Statistical Office

The data shows that only 3 types of wood, paper and steel products have increased from 50.7% (in 1996) to 62.2% (in 2001) of the total value of non-state industrial production in Bac Ninh province, and at the same time have a very high rate compared to the general share of the value of non-state industrial production in Bac Ninh province and compared to the value of non-state industrial production in the whole country. This shows that the above-mentioned key craft products have comparative advantages and have been focused on promoting. In addition, the province has focused on developing new industries in rural areas such as wood production, embroidery (Bac Ninh city, Gia Binh, Luong Tai); modernizing the technology of wood, paper, steel and bronze casting craft villages. This is the decisive factor in the growth rate of the industry in the period 1997-2003 and therefore determines the high growth rate of industrial production value in Bac Ninh province in this period.

In recent years, the restoration of traditional craft villages, the development of new craft villages, the development of rural industry, especially the processing industry associated with raw material areas, has been focused on investment. To promote the strengths of traditional craft villages, the province has planned, invested in the construction and formation of small industrial clusters in traditional craft villages. The development of industrial clusters in craft villages is consistent with the objective laws of the process of industrial and handicraft development in rural areas. Its effectiveness not only solves difficulties in production space, overcomes environmental pollution of enterprises, but also meets the requirements of rural urbanization, facilitating the expansion of goods exchange. In addition, service forms such as trade,

Credit, agricultural technology, transportation, information, culture, entertainment, etc. are also widely developed in many rural areas of Bac Ninh.

Up to now, the province has planned and built 25 small and medium-sized industrial parks and craft village industrial clusters with a total area of 654.1 hectares (of which 18 industrial parks and clusters have invested and put into operation production facilities, 7 industrial parks and clusters have been planned and are preparing for investment). The total registered capital is 2,067 billion VND and 3 million USD, of which 1,617.1 billion VND has been invested, reaching 78.23% of the registered capital and attracting 14,694 workers to work in industrial parks and clusters. Regarding investment efficiency, in 2005 alone, the industrial production value in craft villages, industrial zones and clusters reached 2,260.65 billion VND, accounting for 55.37% of the non-state industrial production value and 33.9% of the total industrial production value in the area, contributing 60.2 billion VND to the state budget, accounting for 65% of the total revenue from the non-state enterprise sector.

The activities of craft village industrial parks and clusters in Bac Ninh have initially shown their effectiveness, with production and business developing, creating jobs and increasing income for workers. From the results of implementing the policy of building and developing craft villages and craft village industrial parks and clusters, the following main features can be identified:

- Building and developing small and medium-sized industrial parks, industrial clusters and craft village parks is a new model in Bac Ninh (a leading locality in planning and building small and medium-sized industrial parks, industrial clusters and also the first province in implementing planning and building industrial parks and clusters associated with planning and building urban, residential, commercial and service areas). The model both promotes the advantages of craft villages in terms of traditional occupations, skills and experience, and stimulates capital from internal resources into production and business, creating a significant breakthrough in product volume.

- Facilities with production space will have the conditions to invest in new technology, change product designs to achieve high quality, suitable for the market. Enterprises in Phong Khe paper industrial cluster previously only produced toilet paper, napkins, low-grade packaging from domestically purchased waste materials, now many enterprises have invested with a total investment capital of 40 to 50 billion VND to produce printing paper, cultural paper from imported pulp materials. Enterprises in Dong Quang wood handicraft industrial cluster have the conditions to invest in equipment for wood treatment before processing, increasing the commercial value of goods, serving exports. Enterprises of Viet Thai electrostatic painting company, HANAKA electrical equipment factory

Dong Quang Industrial Park has invested in synchronous technological equipment, creating products that are increasingly prestigious in the market.

- Production in craft villages and craft village industrial parks has contributed to economic growth, increased local budget revenue, initially improved environmental pollution, created conditions to improve the effectiveness of state management in the field of production and business, and combated commercial fraud. At the same time, it has contributed to shifting a part of low-income agricultural labor to develop higher-income occupations, creating more jobs for rural laborers. The structure of rural production is changing in a positive direction.

(3)- Policy to adjust the industrial development structure

In implementing the local industrial development policy, the management agencies of Bac Ninh province always focus on adjusting the industry structure to modernize technology, develop effective production sectors and impact the local socio-economic development.

In the period 1997 - 2002, the industrial structure of Bac Ninh had nearly 30 main product types focusing on 7 industry groups: Agricultural processing, tobacco products, textiles, wood products, metal production, metal products (excluding machinery and equipment production), construction materials, paper. Analysis of the growth of key product groups in relation to production nationwide is shown in Table 2.8.

Thus, most of the key product groups have an average growth rate that is superior to the general growth rate of the processing industry and the production scale is also superior to the general share of the entire Bac Ninh industry compared to the whole country, especially wood products, metal production, construction materials, and paper. Here is a very noteworthy point: the products with a superior share of the non-state sector (mainly due to the contribution of craft villages) are wood products, metal production, and paper; of the foreign investment sector is construction materials production (increasing mainly due to float glass products); while the state enterprise sector only has tobacco products with an outstanding share, but the growth rate in the recent period is very low (-29.9% compared to the general growth rate of the industry). That shows that the competitiveness of non-state and foreign investment products in the province is higher than that of state-owned enterprises. The following will analyze the investment and production situation to promote comparative advantages in each of the main industry groups mentioned above:

Unit: %

STT

Product Group	Average growth rate 1997-2007		Percentage compared to the whole country (2001)
Product Group	Speed increase	Compared to increase General Manager	Percentage	Compared to the ratio common (1.4)
1	Agricultural processing	75.0	+ 36.8	0.3	- 1.1
2	Cigarette	8.3	- 29.9	3.0	+ 1.6
3	Textile	26.1	- 12.1	0.5	- 0.9
4	Wood products	39.5	+ 1.3	5.2	+ 3.8
5	Metal production	80.7	+ 42.5	5.0	+ 3.6
6	Metal products	38.4	+ 0.2	2.1	+ 0.7
7	Construction materials	61.5	+ 23.3	5.3	+ 3.9
8	Paper	40.6	+ 2.4	2.9	+ 1.5
9	Industrial production value manufacturing industry	38.2	0	1.4	0

Table 2.8. Average growth rate of key products of Bac Ninh (According to 1994 prices) Source: [11]

In 2001, the province proposed preferential mechanisms and investment incentives to attract new, high-tech industries, but the results of the industry structure only really changed in early 2003. The appearance of high-tech industries only appeared in the province with a number of factories producing machinery, electronic and communication equipment, and optical precision medical instruments. The proportion of high-tech industries increased from 2.2% (in 2003) to 3.8% (2007). Industries with the participation of industrial park factories and foreign investment capital all increased rapidly in the period 2003-2007, such as the production of chemicals, chemical products, rubber, plastics, machinery, and electronic equipment. In addition, industries producing regional products in traditional craft villages still maintained a steady growth rate such as: paper production, wood processing and wood products, and metal production. Industries with slower growth rates are: tobacco production, textiles, and construction materials (See Table 2.9).

STT

Industry Group	Average growth rate 2003-2007 (%)
1	Food and beverage production	25.7
2	Paper production	27.6
3	Chemical products	33.4
4	Rubber and plastic products	321.1
5	Metal production	33.4
6	Electronics, communications, precision	41.2
7	Wood processing	25.1
	Overall growth	24.8

Table 2.9. Product groups with growth rates higher than the average of the industry in the period 2003 - 2007 (At 1994 prices).

Source: Bac Ninh Statistical Office

The above results show that the impact of investment policies on developing industrial parks and craft villages has promoted the adjustment of industrial structure towards modernization, creating strong changes among industry groups that had not changed significantly before 2003.

2.2.2.2. Land access support policy

The Land Law has facilitated businesses to access land through investment in industrial parks and industrial clusters. The planning and land use plans for industrial park development are closely related to the infrastructure system, investment capital flow forecast, socio-economic development orientation; industrial development orientations and policies and production and business results of industrial parks.

According to Article 20 of the Land Law, industrial zones include concentrated industrial zones, export processing zones, industrial clusters and economic zones, with the same purpose of using land for non-agricultural production and business. In Decision No. 1208/QD-TTg dated November 6, 2003 on approving the adjustment of land use planning of Bac Ninh province to 2010, the Prime Minister allowed Bac Ninh province in the period 2000 - 2010 to transfer 6,124.19 hectares of land for specialized purposes and residential land. Of which: specialized land is 5,149.64 hectares and urban land is 974.55 hectares.

Based on the approved decision and land use demand in the period of 2001 - 2005, the People's Committee of Bac Ninh province has developed a land use plan for the period of 2001 - 2005 and has been approved by the Prime Minister in Decision No. 1214/QD - TTg dated November 7, 2003. The province has allocated land to economic organizations for business investment, construction of infrastructure for organizations, households and individuals to lease land for 1,135.02 hectares, reaching 84.25% of the plan, meeting the land use demand for industrial development of the province such as: Tien Son Industrial Park has recovered 291 hectares for 62 organizations to lease land; Que Vo Industrial Park and adjacent areas have recovered 314.39 hectares, cleared 185.98 hectares, 33 organizations have been granted investment licenses. Dai Dong - Hoan Son Industrial Park has leased land to 25 organizations with an area of 155.78 hectares, and the Information Technology Industrial Park has leased land to 54.53 hectares. Regarding the industrial clusters of craft villages and multi-crafts according to the approved planning, there are 39 zones with an area of 715 hectares. Up to now, the Provincial People's Committee has issued a decision approving the detailed planning for 17 zones with an area of 290.32 hectares. 280.56 hectares have been reclaimed, leased to 184 organizations and 503 households for production and business. In which: Chau Khe craft village industrial cluster 22.78ha, Ma Ong industrial cluster 4.8ha, Lo Sung industrial cluster 9.7ha, Dong Quang craft village industrial cluster 12.62ha, Tan Hong - Dong Quang industrial cluster 12.00ha, Tam Son high-tech craft village industrial cluster 13.3ha, Phu Lam industrial cluster 11.72ha, Phong Khe industrial cluster 12.6ha, Vo Cuong industrial cluster 6.8ha, Khac Niem industrial cluster 56.28ha, Phuong Lieu - Nhan Hoa industrial cluster 13.63ha, Xuan Lam - Thuan Thanh industrial cluster 17.14ha, Quang Bo craft village industrial cluster 9.6ha, Dai Bai craft village industrial cluster 5.5ha and other separate leased lands.

Bac Ninh province has early had a suitable land use plan to promote industrial development through the following forms: industrial parks, industrial clusters and land allocation to individual enterprises. The land use plan of Bac Ninh province until 2010 has been adjusted and approved by the Government in Resolution 09/2006/ND-CP dated May 26, 2006. The total land area planned for industrial parks is 5,347 hectares, by the end of 2007 it was 2,067.3 hectares; the remaining area to be implemented in the 3 years 2008 - 2010 is 3,279.7 hectares. The planned land for construction of industrial parks is 1,290.4 hectares, by 2007 681.1 hectares were implemented, and the area implemented in the 3 years 2008-2010 was 734.5 hectares. The land granted separately to production and business enterprises in the planning area increased by 512 hectares, the area implemented in 2001-2007 was 383 hectares, the area used in the 3 years 2008-2010 was 129.4 hectares (See Table 2.10).

Land use form	By 2010 (ha)	Used until 2007		2008-2010
Land use form	By 2010 (ha)	Acreage (ha)	Proportion (%)	Acreage (ha)	Proportion (%)
1	Industrial Park	5347	2067.3	38.6	3279.7	61.4
2	Industrial cluster	1290.4	681.1	52.8	734.5	47.2
3	Use separately	511.7	382.3	74.7	129.4	25.3
	Total	7149.1	3130.7	43.8	4143.6	64.2

Table 2.10. Structure of industrial production land in Bac Ninh province by 2010

Source: Department of Natural Resources and Environment

Thus, by 2007, industrial park land used accounted for 66% of the total industrial development land; industrial cluster land accounted for 21.9% and land used separately, outside the industrial park and cluster accounted for 12.1%. With the land use planning that has been developed by the province, it ensures enough land fund to attract investment and develop industry to meet the set goals. The province has reasonably regulated land rental prices for infrastructure construction and business and land rental prices in industrial parks, thus attracting investors to produce and rent premises.

However, facilitating access to land still reveals many disadvantages:

- Although land access policies have been reformed to increase support for small and medium enterprises, they have not yet met the requirements of enterprises. The time and cost of land procedures are still too long, greatly affecting the investment and production implementation process of enterprises.

- The State has preferential policies on land use fees and land rent for building industrial park infrastructure, while enterprises investing in industrial parks still have to rent premises at high prices, which is one of the barriers to the development of small and medium enterprises, affecting the efficiency of land use in industrial parks and the production and business efficiency of enterprises.

- The planning of CNNs has not been considered in sync with urban development, residential areas, technical infrastructure, and social infrastructure, so it has not ensured sustainable development.

- The process of land acquisition, compensation, and resettlement to clear the ground for industrial park construction has not been synchronized, causing problems in solving the lives, jobs, and using local labor, leading to difficulties in the lives of a part of the people whose land has been acquired. From there, many difficulties arise in the subsequent land acquisition process.

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