The Impact of Road Transport Network on Socio-Economic Development

b. Road traffic network

The road traffic network is a collection of roads, transport routes, works on the transport routes, other works including: roads, stopping places, parking places on roads, traffic lights, signs, road markings, markers, barriers, traffic islands, median strips, kilometer posts, walls, embankments, drainage systems, vehicle load inspection stations, toll stations and other road traffic networks and auxiliary equipment.[12] serving the movement of people and means of transport.

Roads throughout the country are a continuous network, forming a system managed by the state without distinction of capital sources. Roads are classified as public goods with tolls to meet the travel needs of citizens and society, directly implemented by the state or implemented by enterprises at the request of the state (through contracts or assigned tasks).

The road system needs to be managed in a unified manner because: it is considered a non-pure public good that only satisfies one of two public properties: (i) non-excludability in consumption; (ii) non-rivalry and non-excludability[21].

The road network has the following characteristics:

Firstly, the activities of the transport sector take place in a very large spatial scale. However, everywhere a transport network is needed for that activity, so the road transport network in general is built in a very large spatial scale and must be combined with many other infrastructure functions.

Second: The road traffic network directly affects all production and living processes. Most activities require a road traffic network to transport raw materials, transport human resources and distribute products to the market. The road traffic network is the premise for the development of socio-economic sectors in each locality, each region and the entire territory of a country. Therefore, in order to develop the economy and society, it is necessary to prioritize investment in developing the road traffic network one step ahead as a way to pave the way for other activities.

other industries develop. This is also an experience drawn from practical lessons of socio-economic development in Vietnam and around the world.

Third: The road traffic network requires large space and land. Normally, the land fund for the general transport system has increased by nearly 2% in the past time, in urban areas it accounts for 16-26% of the total urban construction land fund. The road traffic network aims at the common interests of society, however, the investment and operation process requires a long time. A road takes several years to build, and the operation period is about 15-20 years, which is longer than the business cycle of other industries. Due to this characteristic, the road traffic network sector often encounters many uncertain factors and is often beyond the self-regulation capacity of private investors, easily causing risks, so it is necessary to have State intervention. This characteristic also requires each country to have a stable mechanism in the field of investment and exploitation of the road traffic network to encourage social components to participate in this field.

Fourth: The road traffic network is related to most technical infrastructure systems such as: power supply system, water supply and drainage system and public lighting system... This is very important for the order of investment coordination in exploiting technical infrastructure works.

Fifth: The road traffic network serves the production process but does not create specific products but only indirectly creates social products, which are only the movement of goods and passengers in space and over time.

1.1.1.2. Classification of road traffic network

There are several different ways to classify roads, such as: (i) classification by management level; (ii) classification by hardware and software; (iii) classification by investment capital source.

a. Classification by management level

Roads are divided into national highway systems, provincial roads, district roads, commune roads, and specialized roads [17]. Specialized roads are special routes connecting to industrial, military, forestry zones, etc.

The arterial routes serving the whole country are included in the national highway group. The routes serving regional and local traffic are considered as provincial roads, district roads, commune roads, urban roads and special-use roads. The classification results also clearly state the agencies responsible for the construction and maintenance of the routes (see Table 1.1).

Table 1.1 Road classification by management level

Classify

Define

Agency

owner

Highway

The main routes on the national road network have a particularly important role in serving the socio-economic development and security and defense of the region and the country, including:

Routes connecting the capital Hanoi to centrally-run cities and administrative centers of provinces;

Routes connecting administrative centers of 3 or more provinces or centrally run cities (hereinafter referred to as provincial level);

Routes connecting international seaports to border gates

international and other major gateways.

Vietnam Road Administration

(Ministry of Transport)

Provincial road

Axial routes within 1 to 2 provinces, including routes connecting the provincial administrative center with district administrative centers or with administrative centers of neighboring provinces; routes connecting national highways with districts.

District administrative center.

Department of Transport (People's Committee)

conscious)

County Road

Roads connecting district administrative centers with commune administrative centers, commune clusters or neighboring district administrative centers; roads connecting provincial roads with other provinces.

commune administrative center or commune cluster center.

(People's Committee)

district)

Commune road

Roads connecting commune administrative centers with villages,

hamlet or connecting communes together

(Commune People's Committee)

Urban road

Routes within urban administrative boundaries

Department of Transportation

Transport (UBND)

Dedicated road

use

Routes used exclusively for transportation and circulation activities of one or several agencies, businesses, or/and individuals.

core

(investor)

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Source: Vietnam Road Administration

+ The national highway system (symbolized as national highway) is the main road axis of the national road traffic network with particularly important functions serving the economic, political, cultural, social, and national security and defense interests of the country.

+ The provincial road system (symbolized as DT) is the main roads within a province or centrally-run city, including roads connecting the city or administrative center of the province to the administrative center of the district and main roads connecting the administrative center of the province with the administrative centers of neighboring provinces.

+ The district road system (symbolized as DH) is the roads connecting from the district administrative center to the administrative center of the commune or cluster of communes of the district and the roads connecting the district administrative center to the administrative centers of neighboring districts.

+ The commune road system (symbol is DX) is the road connecting from the commune administrative center to villages, hamlets or roads connecting communes to each other to serve public transport within the commune.

+ Urban road system (symbol is DĐT) is the road located in the inner city, inner town within the administrative boundaries of the city, town, or township.

+ The dedicated road system (symbol is DCD) is an internal road or a road dedicated to serving the transportation and travel needs of one or more agencies, businesses, and individuals [11].

b. Classification by hardware and software

+ Hardware includes bridges, roads, ferry terminals and auxiliary equipment such as traffic safety, drainage systems, rest stops, parking lots, toll stations, vehicle weighing stations, lighting systems, signal systems, traffic signs, traffic inspection and other traffic control equipment.

+ Software is the entire system of policies, operating mechanisms, and social security environment associated with road traffic, ensuring that traffic activities proceed smoothly.

c. Classification by investment capital source

In Vietnam, in the past, only the type of road with investment capital from the State budget was popular, represented by the Ministry of Transport (General Department of Roads).

Vietnam) management [44]. Currently, in the trend of socializing public service provision activities, the monopoly of State-owned enterprises has decreased and 4 forms of roads have appeared that many countries in the world are implementing, namely:

+ Roads invested with State budget capital, including the following four main types: (i) roads invested with State budget capital; (ii) roads invested with capital originating from the State budget, such as: toll revenue left for the unit, non-refundable aid, support money contributed by organizations and individuals, etc.; (iii) roads invested with borrowed capital and the State budget repays the debt, regardless of whether the State budget must repay the entire debt (including principal and interest) or the State budget only repays the principal, and the interest on the loan is paid with toll revenue (including capital borrowed by the State budget or by the investor); (iv) other roads managed by the State, such as: roads invested for business purposes, after the end of the business period, transferred to the State for management; roads invested in the form of build-transfer-BT (the State pays capital to the investing organization or individual and the investing organization or individual transfers the road to the State for management); Road construction in the form of exchanging land for road works (the State allocates land and organizations and individuals allocate road works), etc.

+ Roads invested by the State with borrowed capital and collecting capital recovery fees: are roads for which the State allows investors (state road management agencies) to borrow capital for investment, then collect fees to repay the loan capital according to the investment project approved by the competent state agency (except for roads invested with borrowed capital for business purposes). The fee collection level for roads invested by the State with borrowed capital and collecting capital recovery fees is applied according to the fee collection level for roads invested with state budget capital. In case the fee collection level is applied according to the fee collection level for roads invested with state budget capital that does not ensure capital recovery according to the approved investment project, the investor must submit a written request to the Ministry of Finance for national highways; the People's Council (PC) at the provincial level for local roads to decide on a specific appropriate fee collection level, but not exceeding twice the fee collection level for roads invested with state budget capital.

+ Roads invested with joint venture capital, including: (i) roads invested with joint venture capital between the State budget and capital of other partners; (ii) roads invested in part by the State (part of the entire toll road section), part

The remaining roads are invested by other partners. In this case, the joint venture parties must agree to assess the actual value of the road portion invested by each party, to determine the capital contribution of each joint venture party. The toll rate for roads invested by joint venture capital is considered the road service fee including value added tax (VAT), not exceeding twice the toll rate for roads invested by state budget capital.

+ Roads invested for self-business: invested and exploited by organizations and individuals after being permitted by State management agencies. The toll rate for roads invested for business (including BOT and other types of business) is the road service fee including VAT, specifically regulated by the Ministry of Finance (for national highways) or the Provincial People's Council (for local roads), in accordance with the road level and the length of the toll road according to the approved investment project and the investor's proposal, but not exceeding twice the toll rate for roads invested with State budget capital. The amount collected from road tolls invested for business is the business revenue of the unit. Road toll collection units are obliged to declare and pay VAT and corporate income tax, and perform business results accounting in accordance with the provisions of law. At the end of the business period according to the contract or according to the decision of the competent state agency, the investor must transfer this road to the State for management and the toll collection unit must collect, pay, manage and use road fees according to the regulations for roads invested with the above-mentioned State budget capital.

1.1.2. Impact of road traffic network on socio-economic development

1.1.2.1. Socio-economic development

Socio-economic development is a change in quantity (scale), quality, progressive transformation in the socio-economic structure and socio-economic status of the system.

According to French economists: Socio-economic development is a process in which a society achieves satisfaction of basic human needs. Basic needs such as: food, housing, clothing, education, health care.

The World Bank (WB) in 1991 gave the following definition: Socio-economic development is the sustainable growth in living standards (food, housing, clothing, education, health care, environmental protection).[36]

According to Todaro: Socio-economic development is understood as a multifaceted process involving changes in structure, attitudes and institutions as well as promoting economic growth, reducing inequality and eliminating poverty.

Socio-economic development is a category related to: income improvement; radical changes in administrative-social reform; fundamental changes in the international socio-economic system. Thus, development considers comprehensively:

 Growth in GDP, GNP, GDP per capita (growth is an increase in income).

 There are changes in the economic structure: including the sectoral structure: the proportion of agriculture decreases, industry and services increase; regional structure: urban population increases and rural population decreases; and the labor force in industry and services increases.

 Import-export structure (X + M) / GDP

 Savings and investment rates increase

 There are social changes (human welfare): cultural level, average life expectancy, level of equitable distribution of income (GINI coefficient), human development index.

Socio-economic development affects the transport network. There have been a number of domestic and foreign studies on this issue (the author mentioned in the overview of the studies) showing that the more socio-economic development, the more demand and resources for development in many areas of socio-economic development, especially infrastructure for general development, including the road transport network. Resources: finance, human resources will be invested more in the road transport network. This is one direction of impact in the relationship between socio-economic development and the road transport network, and the other direction is the impact of the network.

The impact of road transport network on socio-economic development will be the focus of the thesis. In principle, the results and effectiveness of socio-economic development of the region are not only created by the development of the road transport network but also by the development of the river, sea and railway transport networks and many other factors such as industry structure, development investment, state management, economic institutions, etc. Therefore, when studying the quantitative impact of the road transport network on socio-economic development, the author will fix other factors. This will help answer the question of why the development of the transport network needs to be one step ahead and why the development of the transport network cannot be based only on immediate requirements but must be based on long-term requirements.

1.1.2.2. Concept and classification of impacts

Transport systems in general and road transport networks in particular in many countries often account for the largest share of public investment. The development and global competitiveness of a region or a country is influenced by the quantity and quality of transport infrastructure in general and road transport networks in particular, as such infrastructure provides mobility and accessibility for people, goods and services and thus plays an important role in socio-economic activities.[45] The new millennium is characterized by a continuous growth in the travel needs of the community and road management agencies are always trying to provide the desired service levels in a cost-effective manner and within the available resources. Therefore, the need for road transport network impact studies is really necessary in making transport decisions. Such impacts may relate to socio-economic development (increased national income, increased employment), environmental and ecological impacts (e.g. air, water, or noise pollution), community effects, and changes in land use); and technical impacts (e.g. changes in vehicle and equipment conditions, sensitivity and durability, mobility and accessibility, safety)... Impact study models are used

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