Export of agricultural products and investment incentives for export processing projects. Most investment projects in this period are still mainly import substitution. Some enterprises produce export goods but the consumption market is unstable. Bac Giang province has not yet developed an investment program to produce key export products, so in 2010, the value of locally produced goods exported only accounted for 18.3% of the total export turnover in the area. In fact, there is a conflict that export goods are exempted from tax, so they do not contribute to the provincial budget, while the province needs to increase revenue.
2.3.2.5. The impact of investment projects using state budget capital is not much on improving product competitiveness.
In recent years, investment projects using state budget capital in the province have contributed to improving production capacity and product competitiveness through technological modernization for manufacturing, construction, garment, fertilizer, craft village enterprises... but have not yet met the requirements in the integration process, some areas have changed more slowly than the whole country. Therefore, in the province, the type of products with insignificant competitiveness, mainly based on traditional industries such as handicrafts that are competitive in the Taiwanese and Chinese markets, have not penetrated the European and American markets, steel products are only competitive in the short term and in the immediate future, some agricultural products are exportable but the output is still too small... the rest are mostly products with conditional competitiveness and no competitiveness: many products still depend on state protection (fertilizer, paper...); There are products whose selling price is accepted on the market at only 80% of the production cost, such as tunnel bricks and mechanical products manufactured by the factory... but they are not consumed significantly on the market, production has stopped; alkaline materials have just been invested in production, but other units in the corporation have not used them because of their high cost and lower quality than imported products; the competitiveness of agricultural products is lower than that of other localities in the country, such as rice, peanuts, soybeans...
For some projects of agricultural processing factories with partial state capital investment, the capital recovery from these projects is not high, specifically the capital recovery period is often longer than the time in the approved project, for example, the fruit tree and forestry tree seedling station project has passed the capital recovery period for nearly 2 years and has not yet compensated for costs, the profit is 50% lower than expected. The investment projects using the state budget recovered through traffic toll collection in Bac Giang province have not been implemented recently, they are only in the project implementation phase.
2.3.2.6. The limited impact of investment projects using state budget capital on economic development in disadvantaged areas
In Bac Giang province, there are currently 7 districts out of 10 districts and towns in difficult areas, accounting for 81.5% of the area and 67.6% of the province's population. The goal set in the province's development investment is to reduce the gap in living standards of people between regions. In recent years, the attraction of investment capital to difficult districts has been insignificant, while the investment capital of the State budget has not been adequately allocated to this area. With the policy of supporting a percentage of the total investment capital of the project based on the acceptance of completed construction volume to invest in rural infrastructure (rural traffic, canals, schools), the remaining part is contributed by the people, making high-income areas receive more support than difficult areas. At the same time, capital sources attracted from outside are mainly concentrated in craft village areas of Viet Yen district, Bac Giang town and the bordering areas of Bac Giang town of Lang Giang and Yen Dung districts, the impact of economic investment in difficult areas is still limited.
The average investment capital for projects from the State budget in the period 2006-2010 accounted for 15.45% of the province's GDP. That means that if there is a correct policy on investing in projects in these resources, it will have a positive impact on the development of industries, sectors and economic regions. However, the allocation of State budget capital is still scattered, without a clear mechanism to centralize and allocate resources appropriately to key projects and sectors. The average State budget capital is only 8,136 billion VND/project, the total investment of an average project is 11,563 billion VND.
VND/ 1 project. Obviously, most of the projects are small and thus will not have a really significant impact on economic development per project.
Research on some cases shows that the investment efficiency of projects using state budget capital affects social equity, specifically: in this content, the study selects some typical state budget investment projects according to investment objects (investment projects in rural areas of 03 districts Yen Dung, Viet Yen and Luc Ngan) which are projects implemented in the period 2006-2010. Statistics of data at different times to conduct analysis and thereby assess the impact of these projects on social equity in Bac Giang province. Specifically: Nam Yen Dung irrigation project, Quang Bieu - Dong Tien pumping station project, Cau Son - Cam Son irrigation system project. These projects bring benefits to three communities in three districts Yen Dung, Viet Yen, Luc Ngan from project implementation.
- Applying the Gini coefficient: When studying the impact assessment of investment projects using state budget capital in Bac Giang province through the change in income of the social community in the community benefiting from the project. The Gini coefficient was calculated based on the data on income before and after the project, self-declared by the people through their activities. The research results in the Nam Yen Dung irrigation project, Quang Bieu - Dong Tien pumping station project and Cau Son - Cam Son irrigation system project show that:
+ The absolute income of the community groups benefiting from the above projects all increased, reflecting the positive impact of the above projects on the cultivation area of farmers in the region. These projects brought direct benefits in terms of providing irrigation water for areas that before the project had no water for cultivation, increasing intercropping, increasing the productivity of people in the project-benefiting areas.
+ The income Gini coefficient of all three beneficiary communities decreased after the impact of the projects. This reflects the improvement in income distribution among the community's population groups through the benefit of the population group.
poor, this group of people is improved because they own land before the project without water for cultivation when the project has this area has been exploited and used. Table 2.7 shows the change of Gini coefficient in all three projects above in three districts of Yen Dung, Viet Yen and Luc Ngan in Bac Giang province.
Table 2.7: Gini coefficient fluctuations in three beneficiary communities
Content
Gini coefficient | ||
Before there was project | After having project | |
Nam Yen Dung irrigation project | 0.728 | 0.536 |
Quang Bieu – Dong Tien Pumping Station Project | 0.635 | 0.608 |
Cau Son – Cam Son irrigation system project | 0.587 | 0.516 |
Maybe you are interested!
-
Management of investment projects using state budget capital in Ha Giang province - 2 -
Perfecting Mechanisms and Policies for Construction Investment Projects from the State Budget in Vietnam's Transport Sector -
Domestic Research on Project Investment Management Using State Budget Capital. -
Preventing and Combating Violations of the Law in Basic Construction Investment with State Budget Capital Needs to Thoroughly Understand the Viewpoint of Mobilizing the Combined Strength of -
Key Solutions for Innovation in Infrastructure Investment to Serve Agricultural Production Development from State Budget Capital
Source:Calculation based on survey form
The results in Table 2.7 are consistent with the community's assessment through people's participation of the project's impacts and the community's perception of the improvement in income of the low-income population of the community. Using the income Gini measure to assess the project's impact on equity by comparing before and after the project proved to be a fairly accurate tool to reflect the change in income distribution in small communities in Bac Giang province.
+ Apply the coefficient of difference between the richest and poorest groups: Based on the income survey data before and after the project, classified by income group, conducted an income assessment with the participation of people in the community benefiting from the above project, the coefficient of difference between the richest and poorest groups
The poverty line is the ratio between the top 20% of households and the bottom 20% of households. The variation of this coefficient is shown in Table 2.8.
Table 2.8: Variation in the gap ratio between the richest and poorest groups in three communities
Content
Rich group difference coefficient the richest and poorest groups | ||
Before there was project | After having project | |
Nam Yen Dung irrigation project | 9.56 | 9.13 |
Quang Bieu – Dong Tien Pumping Station Project | 7.56 | 7.21 |
Cau Son – Cam Son irrigation system project | 6.87 | 6.65 |
Source:Calculation based on survey form
The results show that the coefficient of difference between the two groups decreased in all three beneficiary communities after the project facilities were put into operation. This means that the growth of total income of the bottom 20% of households (denominator) was faster than the growth of total income of the top 20% of households (numerator). This result is completely consistent with the improvement in social equity reflected in the Gini coefficient mentioned above.
Through the above evaluation results, it can be seen that the investment project using state budget capital has impacted social equity but not highly, specifically showing that the Gini coefficients, as well as the ratio between the poor and rich groups in difficult areas in the province has narrowed and changed very slowly in a positive direction.
2.3.2.7. The impact of some investment projects using state budget capital on the environment is not good.
The survey results of environmental impacts of investment projects using state budget capital in the industrial sector in Bac Giang province show that: there is no
Which projects have a positive impact on the environment; 15% of projects have a very negative impact on the living environment and natural environment; 33% of projects have a negative impact but not significantly acceptable; 52% of projects have a normal impact. According to the Department of Natural Resources and Environment of the province, during the process of implementing investment and operating the project, 57% of investors have not fully implemented environmental protection regulations; 42% of investors are assessed as implementing quite fully; only 1% are assessed as implementing very fully.
The overall assessment of the Department of Natural Resources and Environment shows that: In general, all stages and related issues (investment preparation, investment implementation, exploitation, operation) of investment projects using state budget capital in Bac Giang province only meet the target and requirements for sustainable development at 3.0 points (5-point scale: 1 point is the lowest level and 5 points is the highest level). This score shows that the level of meeting the requirements for sustainable development of industrial projects in the province is only at an average level. However, the Department of Natural Resources and Environment believes that current regulations on inspection and handling of violations in environmental protection and preservation are not suitable for practical requirements and are not very effective. This proves that the assessment and inspection have not really followed the requirements of practice, partly due to poor inspection equipment, partly due to non-standard and non-synchronous inspection regulations; The penalties are not strict enough, not deterrent and not very effective.
2.3.3. Causes of limitations
Looking back at the implementation of investment projects using state budget capital in recent years in Bac Giang province, we see emerging problems such as: Long-term investment, slow project implementation, low disbursement capacity compared to requirements, prolonged payment and settlement, slow project implementation leading to low investment efficiency. Some construction projects have not received much consensus from the people. This problem is due to the lack of project information or incomplete information for the people, due to conflicts between different interest groups, but there are also projects that are not really feasible and not necessarily convincing in terms of overall efficiency not only in the economy but also in the environment and society.
The reasons for the above work leading to the project's ineffectiveness in some specific areas are presented below.
2.3.3.1. Objective causes
a. The policies and regimes on project management are not complete, consistent and reasonable.
Currently, the law regulating investment projects using state capital has a wide scope of regulation, legal regulations are issued in many documents such as: State Budget Law, Investment Law, Construction Law, Bidding Law, Law on Practicing Thrift and Combating Wastefulness... In addition, they are also regulated in many decrees and circulars issued by the Government and ministries. Many legal documents in this field have been amended and supplemented many times. To regulate state spending, there are a series of laws, ordinances and decrees, but in reality, there is still no clarity in the management of national assets, assets formed from purchasing and investing with state money. Moreover, it is also unclear who manages and who manages whom in state procurement. In fact, national assets, including newly invested assets, national assets passed down from many generations, are being managed in a decentralized manner and many assets have been exploited to serve personal interests or interest groups. However, handling of wrongful purchases and fraudulent behavior is not strict, and misused funds have never been recovered.
- In recent years, the implementation of investment projects using state budget capital has been carried out in a context where: The State's policies and regimes on basic construction have been issued slowly, insufficiently, and inconsistently, limiting implementation at the sectoral level... The Construction Law was issued in 2003, the Implementation Decree (16/ND-CP) was issued in 2005 and then recently amended (112/ND-CP)... There are amended contents that were not clarified in previous documents (for example, 16/ND-CP clearly stipulates the time for project appraisal, including the time for technical design appraisal, and also clearly states the required time for competent agencies to appraise technical design. Now, 112/ND-CP has been amended to reduce the time for technical design appraisal but does not mention the time for project appraisal...). A very important point that 112/ND-CP has changed is that the cases where project adjustment is allowed no longer have state elements.
change policies, salary unit prices... but do not guide how to calculate the estimated price slippage. This will be very difficult for the submission and approval of the total investment of the project. The inconsistencies between the Construction Law, Bidding Law, Enterprise Law... are also obstacles to the construction and operation of the province's investment management system.
- Investment activities using State capital are also subject to the regulation of many different documents, but they are not comprehensive, overlapping and contradictory, causing many difficulties in application and implementation. For example, the regulations on State capital are not unified, there is an overlap between the Investment Law and the Bidding Law. Clause 1, Article 4 of the Bidding Law defines: State capital includes State budget capital, State-guaranteed credit capital, State development investment credit capital, State enterprise development investment capital and other capital managed by the State. Clause 10, Article 3 of the Investment Law defines: State capital is development investment capital from the State budget, State-guaranteed credit capital, State development investment credit capital and other State investment capital... Such regulations have led to inadequacies. For example, investment projects using State capital but without construction works are implemented according to the Regulations on investment and construction management issued under Government decrees; Investment projects involving construction are implemented according to the Construction Law. In reality, there are investment projects that have a part of construction and a part of equipment procurement, which are regulated by the Construction Law. Meanwhile, the Law and the Decree have many different contents, leading to difficulties in application.
b. Lack of close coordination between management agencies and investment project implementation
The coordination between departments and agencies in Bac Giang province in managing project implementation in the province is not good at some stages of projects in the project preparation stage such as project submission and approval, approval of total cost estimate design. At this stage, the coordination between the focal points in appraisal between departments such as the Department of Planning and Investment, Department of Finance, Department of Construction and departments and agencies directly related to appraisal of investment projects in the field of management, however, the coordination has not been