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Solutions to attract and use investment capital to develop Vietnamese cinema by 2010 - 13



- Documentary film "Dien Bien Memories"

313


- Feature films:


+ "The Country Stands Up" Theme about Hero Nup

1.911

+ "Hanoi in winter 1946" Theme about Uncle Ho

3,263

+ "The Fatherland of the Noon Rooster" Topic about Ton Duc Thang

2,527

+ "Dong Loc T-junction" Theme about 10 Dong Loc girls

2,165

+ “Dien Bien Phu in the Air” About 12 Days and Nights in Hanoi

7,150


INVESTMENT FROM LOCAL BUDGET

11,500



TOTAL (INVESTMENT FROM CENTRAL & LOCAL)

126,297


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Solutions to attract and use investment capital to develop Vietnamese cinema by 2010 - 13

Source: Statistical Yearbook of the Ministry of Culture, Sports and Tourism and the Department of Cinema

The target program to strengthen and develop Vietnamese Cinema in the period 1995-2000 initially achieved results in certain aspects through the evaluation of the results of using investment budget capital through data in table (2.10) as follows:

+ The set goals are in line with reality and urgent requirements to promptly consolidate and develop the Film industry during this period.

+ Investment in pre-production equipment for film production companies has partly changed film production techniques according to new technology;

+ Advanced training for a number of film artists. The training has helped the film crew initially approach new film production technology in the world, improving their professional capacity.

+ Many cinemas in the national cinema system have been renovated and upgraded, equipped with modern 35mm or 300-inch film projectors, or built new cinemas in newly established provinces that do not have cinemas.

+ Restore mobile film teams nationwide by providing mobile film equipment and dubbing ethnic languages ​​in films to serve ethnic minorities in mountainous areas, remote areas, and former revolutionary bases to improve cultural life and propagate policies to the people.

+ Produce a number of major films about leaders, historical and traditional films with high ideological and artistic values ​​to promptly propagate and serve the mission during the country's major anniversaries...

However, the current situation of using budget capital for investment in program objectives through the above data and situation still shows certain limitations:

+ Investment capital for film development is not large, there is only one source of capital which is the state budget, including capital from local sources; of which 90% is capital from the Central Government, local capital only accounts for 10% of total investment, so the level of investment capital is very limited, not meeting the requirements of concentrated investment for development.

+ The investment period lasts for 5 years, the investment is dispersed and spread out "indiscriminately" because many film establishments in the country and 61 (now 64) provinces and cities must balance capital according to the criterion "all must benefit from the budget".

+ Many goals are set but investment for the goals is not synchronized: The proportion of capital investment for equipment is the largest (81.5%), but training people to use the equipment and investment for film production is very small (3.4% training; 15.1% production of 6 films in 5 years).

+ The investment capital for film production equipment also lacks synchronization, specifically: Investment in pre-production equipment is high (85.4% of capital for film production companies) but not synchronous with capital investment in post-production (14.6% of capital for Technical Center for sound, film editing and film printing). As a result, pre-production stages such as film scripts, filming, and dubbing have been significantly improved. We have better and more attractive film scripts, films produced during this period have higher quality filming and images than before. However, the post-production stage is not invested properly, so the final result is that the overall quality of the film has not been improved.

+ Investment in equipment, construction, and renovation of large theaters is not balanced with the number of films produced and imported. On the other hand, films serving political tasks are sometimes dry and unattractive, attracting few audiences to the theater, not achieving economic efficiency and leading to low social efficiency. Cinema facilities are rarely renovated, modernized, and outdated projection equipment cannot keep up with the people's needs and tastes. Capital investment in equipment and theater renovation is too low, so up to 330 cinemas have almost completely closed, only Hanoi and Ho Chi Minh City still have a few theaters operating sparsely. The remaining theaters either closed or converted to other purposes such as hotels and restaurants or sold to cover debts and pay salaries. Over 1,100 mobile projection teams serving rural, mountainous, island, remote and isolated areas were dissolved....

+ During this period, a part of new technological equipment was invested for pre-production film production, but training of people to exploit and use it was not focused on, so the unexploited equipment became outdated and did not promote the effectiveness of the investment.

+ Capital is insufficient compared to the need for investment and development, but the investment focus has not been determined on the technology for producing feature films, video equipment is only auxiliary, leading to unfocused investment; Video equipment invested in theaters does not attract audiences to theaters, equipment becomes outdated quickly and breaks down unusable. Many other reasons also lead to the investment and use of capital for film development in the period 1995-2000 not achieving the set goals and not promoting the efficiency of capital use.

b/ Current status of using budget investment capital for the "Cinema Development Goals under the National Culture Program" period 2001 - 2005.

The investment capital for the cinema target program in the period 1995-2000 has not been as expected for many reasons, however, it has prevented serious decline and degradation in the entire industry. The following period 2001-2005 was redirected to develop investment according to the goals and projects of modernizing film production, dissemination, film storage and training of staff in the national cultural program.

Table (2.11): TARGET INVESTMENT CAPITAL IN CINEMA UNDER THE NATIONAL PROGRAM ON CULTURE IN THE PERIOD 2001 - 2005

Unit: Million VND



INVESTMENT OBJECTIVES

AMOUNT

PROPORTION

I

TOTAL INVESTMENT

132,200

100%


Film production and film archiving

In there:

- Investing in film production equipment for pre-production

- Investing in film storage and preservation equipment

71,917


59,131

12,786

54.4%


Popular movies

In there:

- Stereo sound movie projector for theater

- 35mm mobile film projector

- 100 Inches Video Projector

- 2 sets of ethnic dubbing equipment

- Modern dubbing and dubbing equipment for video tapes and discs, 2 sets

- Investment in technology transfer training center

49,575

37.5%


14,500


9,623


10,752


700


7,000


7,000



Advanced training in using modern technology

in film production, storage and dissemination

10,708

8.1%



In there:

- Overseas training in sound engineering, film printing, filming, management staff...

- Domestic training on the use of modern cinema equipment

big, stereoscopic sound, 3D animation graphics...


8,462


2,246


II

INVESTMENT IN POST-PROCESSING EQUIPMENT INNOVATION PROJECT

CENTER OF FILM TECHNOLOGY

49,300



TOTAL (I + II)

181,500


Source: Statistical Yearbook of the Ministry of Culture, Sports and Tourism and the Department of Cinema


Continuing to implement the cinema development goals under the national cultural program for the 2001-2005 period has achieved results in certain aspects through evaluating the results of using investment budget capital through data in table (2.11) as follows:

+ The set targets are in line with practical requirements, continued investment aims to synchronize, exploit and promote investment capital in the period 1995-2000. The imbalance in the use of investment capital in post-production compared to pre-production in the previous period has been gradually overcome by a fairly large and systematic post-production investment project implemented at the Cinema Technical Center. Investment capital used in pre-production is still given due importance in this period, therefore many Vietnamese cinema works in the period 2001-2005 have improved technical quality compared to the previous period.

+ Investment in film production and storage has fundamentally changed the equipment according to modern film production technology of countries in the region and countries with developed cinema in the world. The film archive has conditions for safe preservation and convenient exploitation of films, meeting the requirements for international film storage and exchange.

+ Equip cinemas and dubbing facilities with stereoscopic sound with modern video disc and tape duplication machines, expand and improve the quality of film market operations, create conditions for recovering film production capital and royalties; bring films to serve and contribute to improving the cultural life of ethnic minorities, mountainous areas, islands, remote areas, and former resistance bases.

+ Domestic and foreign training initially improves the professional qualifications of managers and technical staff in using modern film projection equipment, filming techniques, and technical skills.

Sound engineering, film printing techniques, film art designers... expanding the ability to provide services and cooperate in filmmaking with foreign countries.

+ Because the central government's investment policy for the target program is in the right direction and has initially achieved results, local leaders have paid attention to creating favorable conditions to support capital for repairing and upgrading cinemas, supporting the purchase of modern stereoscopic film projectors, and supporting equipment for mobile film screening activities.

2.3.1.5. Current status of using non-budgetary investment capital


Non-budgetary investment capital includes self-funded investment capital of state-owned film studios, private film studios, capital of other domestic investors and foreign investment capital. This investment capital currently accounts for a very small proportion of total investment capital but is becoming increasingly important. When implementing the policy of socializing film activities, this capital proportion will increase rapidly due to incentives to mobilize social resources to invest in film. Non-budgetary capital is focused on film production but mainly produces entertainment feature films, which are temporary in nature.

Foreign resources are very limited, mainly due to domestic film production facilities providing production services to foreign countries. Recently, some foreign film distributors have invested in renovating small-scale theaters (Democratic Cinema, larger ones include Megastar Cinema in Hanoi; in particular, Japanese ODA capital has invested in the National Cinema Center in Hanoi with 01 stereoscopic sound film projector.

2.3.1.6. General assessment of the current status of capital use for film development investment in recent times

Through detailed analysis of the perspectives of capital investment for film development in the period 1995-2005, the following main conclusions can be drawn:

+ Looking at the overall situation over the past time, the use of investment capital has begun to meet the requirements of modernization and development of the industry in the market economy. The initial use of capital has created conditions for cinema to access advanced technology, modern film production techniques, supporting artistic creativity to create a number of high-standard films, film works reflecting multi-faceted, multi-dimensional contemporary social life... Being aware that economic efficiency must be associated with social efficiency in investment. The structure of film products in this period has been developed and innovated.

Products, rich content, entertaining, attracting viewers, increasing the ability to recover investment capital for production.

+ However, the obvious limitations in the process of capital use are: the use of investment capital is still scattered, showing that it is spread out over too many goals; lack of synchronization between pre-production and post-production stages of film production; investment in equipment is not associated with training and technical transfer, only focusing on investment in technology but not on investment in creative artistic elements; lack of focused, decisive investment with a breakthrough nature; not paying attention to and creating an attractive investment environment to increase the attraction of non-budgetary investment capital to reduce the burden of budget investment but still heavily relying on the subsidy ideology mainly relying on the state.

+ The proportion of investment capital used is still unbalanced in all stages of Cinema activities. Investment in innovation of new film production equipment only focuses on pre-production equipment such as film cameras, film lights and auxiliary equipment, without paying attention to investment in post-production equipment and other sound and visual effects equipment, so there has not been much change in improving film quality.

+ Investment has been made in building, renovating theaters and innovating movie projection equipment in the theater system nationwide, but the investment is not focused on completing each project. The concept of "benefiting" is thoroughly implemented in the central capital distribution, so it must be evenly distributed "fairly and equally", but it has not been effective and this situation has lasted for many years.

+ Investing capital in film production also has the nature of solving support policies to survive, maintain the artist team and prevent "sliding" for the industry, so production costs focus less on artistic factors but solve salary payments and cumbersome administrative apparatus and organizational apparatus that have existed since the subsidy period.

+ The cost of funding the production of a feature film is very low, not covering the cost of creative elements such as special effects, props, costumes, and makeup in historical and war films, leading to the film being unrealistic, unattractive to the audience, and the film's distribution and distribution cannot recover the capital. For example, in the following table:

Table (2.12): INVESTMENT COSTS IN PRODUCING A FEATURE FILM FOR FOREIGN FILM AND VIETNAMESE FILM

Unit: Million USD


STT

MOVIE NAME

UNIT

PRODUCTION WATER

EXPORT

PRODUCTION COSTS

MOVIE EXPORT

1

Titanic

The movie

America

200 million USD

2

Pirates of the Caribbean

nt

America

207 million USD

3

Kinhkong

nt

America

203 million USD

4

Crouching Tiger, Hidden Dragon

nt

China

30 million USD

5

Infinity

nt

China

35 million USD

6

Golden Armor

nt

China

45 million USD

7

Nguyen Ai Quoc in Hong Kong

nt

Collaboration film

01 million USD

8

Memories of Dien Bien

nt

Vietnam

0.90 million USD

9

Liberation of Saigon

nt

Vietnam

0.84 million USD

10

Ha Dong silk shirt

nt

Vietnam

0.40 million USD

11

Pao's Story

nt

Vietnam

0.20 million USD

12

Average feature film funding

nt

Vietnam

0.08 million USD

Source: Statistics of the Cinema Department


+ Not much attention has been paid to the human factor in investing in film development while film training is very elaborate and costly. Long-term training investment is limited, training objectives in investment programs are low, and are scattered over a long period of time, so efficiency is low.

+ The use of investment capital from sources other than the budget has not been exploited and valued, thus showing obvious weaknesses in this field. Private investors and private film studios are still very few, and investment is still tentative and reserved; State film studios have not yet formed the habit of investing their own capital in production and having to recover their capital. Large foreign investors have not yet appeared, but only invest on a small scale in the film industry. This is mainly because we have not had the necessary preparation for the transformation of cinema to operate according to market mechanisms, and have not created an environment and trust for domestic and foreign private investors for the country's cinema.

+ The idea that movies are purely ideological products and public goods does not pay attention to the creative elements of artists to enhance the attractiveness of movies.

Vietnam aims at audiences and revenue. Our country's cinema products are very uncompetitive in the market, films lack authenticity and appeal; the staff and artists of the industry still have the mindset of waiting for support from the state, lacking dynamism and creativity. All of these problems have created major barriers in the use of non-budgetary investment capital for this field.

2.3.2. Assessing the impact of attracting and using investment capital on the development of Vietnamese cinema in recent times

From the analysis of the current situation of attracting and using investment capital for Cinema development in recent times, we can draw the combined impacts of both of these issues on Vietnamese Cinema activities in the period 1995-2005 in the form of the following main conclusions:

2.3.2.1. Benefits from the results of the investment process in film development


a/ Create an increase in the scale of operations of the entire industry as well as each film production unit

The scale of capital for film production and distribution has recently increased, including fixed assets, equity, and revenue for the entire industry. This can be seen in the following chart:

Table (2.13): CAPITAL SCALE AND REVENUE OF FILM PRODUCTION FACILITIES

Unit: Million VND


STT

UNIT NAME

FIXED ASSETS

EQUITY

REVENUE

1

Vietnam Feature Film Studio





Year 2001

11,934

15,648

4,998


Year 2002

16,119

19,316

8,460


2003

19,870

23,991

15,122


2004

21,388

26,607

17,289

2

Feature Film Studio I





Year 2001

2,630

4.163

11,458


Year 2002

2,933

4,597

8,699


2003

2,570

4,638

14,828


2004

1,975

4,689

15,877

3

Liberation Film Studio




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