more labor, investment in research and development, etc., thereby expanding and improving production capacity, improving the quality of goods and services. For developing countries, low income and savings lead to a lack of financial resources for investment, thereby reducing growth rates. Low growth leads to low savings, creating a vicious cycle of poverty. To escape this vicious cycle, there must be strong breakthroughs in mobilizing financial resources for investment, creating a 'push' for growth.
Second, mobilized financial resources will stimulate investment, which is also a part of aggregate demand. According to World Bank data, investment accounts for 24% to 28% of the aggregate demand structure of all countries in the world. Increased investment increases aggregate demand, thereby promoting growth. For aggregate demand, the impact of investment is short-term. Increased investment increases aggregate demand, thereby creating stimulus to increase aggregate supply. Increased aggregate supply leads to increased income and accumulation, increasing aggregate demand. This is the upward spiral of growth. The relationship between investment and aggregate demand is shown in Figure 2.1. When investment capital increases, aggregate demand shifts from D to D', increasing output from Qo to Q1 and increasing prices from Po to P1. Investment in production will then shift the aggregate supply curve from S to S', increasing output from Q1 to Q2 and reducing prices from P1 to P2.
Figure 2.1: Relationship between investment and growth through supply and demand analysis
On the basis of improving production capacity and aggregate demand, financial resources for development investment contribute to increasing economic growth rate. Research results of economists show that to maintain the growth rate at an average level, the investment rate must reach from 15% to 25% compared to national income, depending on the ICOR coefficient of each country. If the ICOR remains unchanged, GDP growth depends entirely on the investment rate. Experience of other countries shows that the ICOR index depends strongly on the economic structure and efficiency in industries, regions as well as on the effectiveness of economic policy in general.
Third, mobilized financial resources will allow the formation of investment capital for industries and services with high scientific and technological content, thereby promoting the process of economic restructuring, improving the quality of growth, an important factor ensuring sustainable socio-economic development. Reality shows that the inevitable path to rapid and sustainable growth at the desired speed is to increase investment to create rapid development in areas with high scientific content, creating great added value. Thus, investment policies have a decisive orientation in the process of economic restructuring in countries to achieve rapid and sustainable growth of the entire economy. Investment also helps to resolve development imbalances between regions, lift underdeveloped regions out of poverty, maximize comparative advantages in terms of resources, geographical location, and economy of regions with the potential for faster development, and act as a springboard to promote other regions to develop together, thereby contributing to solving issues of equity and social security.
Fourth, mobilized financial resources will create favorable conditions to help improve scientific and technological capacity and level.
Fifth, mobilized financial resources will allow for funding to be available for investment in education, health care, job creation, environmental protection and other development contents, which means improving the quality of growth. In other words, development investment contributes to improving the quality of life of the people and ensuring social security.
ensure sustainable growth, for people. This will also have an impact on growth.
Thus, it can be seen that financial resources play an important role in the growth and development of the socio-economy in both quality and quantity. It is a necessary condition for growth. The sufficient condition is to use resources effectively and economically.
2.2. Mobilizing financial resources to invest in socio-economic infrastructure in
local
2.2.1. Concept of financial resource mobilization
Financial resource mobilization is a process carried out through policies, measures and forms that the State, social organizations and economic entities propose and apply to convert financial resources from potential form into monetary funds used for socio-economic development goals.
To have investment capital, there must be a source of formation, a place where the capital is generated for use. Clearly identifying the source of capital, measures, mobilization channels and mobilization tools plays a decisive role in the formation of socio-economic infrastructure projects. Mobilizing financial resources from different sources to the place where those resources are used must be done through different mobilization channels.
The term financial resources is sometimes used interchangeably or confused with the concept of capital in many studies. However, financial resources should only be used in the sense of capital when the money is mobilized for use in business investment.
2.2.2. Forms of mobilizing financial resources
Mobilizing financial resources helps investors (the state) have funds to pay for investments in the construction of infrastructure projects that will be formed in the future. To form assets, it is necessary to have the necessary investment financial resources; investors often use sources such as bonds, loans, equity capital, and subsidies. In addition, to have revenue to pay for investment capital, maintenance and operating costs of infrastructure projects, investors often focus on mobilizing from sources such as taxes, tolls, tickets, etc.
facilities and other charges. For most governments, raising resources for an infrastructure project is calculated either through tax revenues or through consumers. Developers often face the challenge of generating future revenue streams large enough to pay for the capital invested in creating the infrastructure asset.
Asset
The investment capital required to build...
Tax
Bridge fee
road
Revenue sources to pay for infrastructure projects.
Ticket
Fee
Bonds
Borrowing capital
Financial resources Capital resources
Equity
Subsidy,...
Figure 2.2: Relationship between financial resources – Infrastructure assets – capital resources
Source: Author's own compilation
Channels for mobilizing financial resources to invest in socio-economic infrastructure.
The main mobilization channel is the means, the bridge between capital and investment capital, including the following channels: state capital mobilization channel, mobilization channel of intermediary financial institutions, capital mobilization channel of enterprises, financial resource mobilization channel of the population. Or we can classify the channel of mobilizing public financial resources, the channel of mobilizing private financial resources and the channel of mobilizing financial resources combining the public and private sectors, also known as public-private partnership - PPP.
Table 2.1: Tools for mobilizing financial resources for infrastructure projects
Tools
Describe | Advantages/Benefits | Adverse | |
Project debt is only guaranteed | Low impact on | The main disadvantage is | |
Project funding | project revenue guarantee project instead of balance sheet or income statement | balance sheet Opportunity for cooperation (PPP) | The lender must have ability to demonstrate that they have sufficient cash flow to |
as usual | Risk reduction | installment payment | |
Business and sublet | One party sells its assets to another party (usually a bank) and then this party leases them back. | Low impact on balance sheet Tax benefits | Transfer of property ownership Rental price may increase based on coefficient |
With or without assets | Ensure in | If you do not pay the debt | |
guarantee; Yes - provide for | case of non-payment | on time, able | |
banking a form | debt is owed | ability to confiscate assets | |
guarantee in case | Use assets to | product | |
Borrow | overdue debt; commonly used applicable to funds/capital | allow for multiple cash flow over investment | |
large initial investment | into business | ||
Allow investment | |||
larger amounts | |||
every time | |||
Buy bonds with | Diverse portfolio | Foreign currency fluctuations | |
foreign currency to finance projects in | Can be used in | dynamic | |
Bonds | a specific country | possible cases | Only suitable for |
on the markets | foreign exchange risk | a few cases | |
other school | because risks are often hidden | ||
museums in countries | |||
have assets | |||
Long-term investment bonds | Tax benefits | Fixed price & term | |
Bonds | issued by the entities | Long term investment | throughout the cycle |
infrastructure | non-bank financial institution (IDF) to | Can create | bond life; possible |
floor | financing infrastructure projects | more stable revenue | costly if needed to be re-installed |
State level | for investors | fundraising |
Maybe you are interested!
-
The Relationship Between Investment and Growth Through Supply and Demand Analysis -
Identify Rating Levels and Rating Scales
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of the islanders. Therefore, this indicator will be divided into two sub-indicators:
a1. Natural tourism attractiveness a2. Cultural tourism attractiveness
b. Tourist capacity
The two island communes in Quan Lan have different capacities to receive tourists. Minh Chau Commune is home to many standard hotels and resorts, attracting high-income domestic and international tourists. Meanwhile, Quan Lan Commune has many motels mainly built and operated by local people, so the scale and quality are not high, and will be suitable for ordinary tourists such as students.
c. Time of exploitation of Quan Lan Island Commune:
Quan Lan tourism is seasonal due to weather and climate conditions and festivals only take place on certain days of the year, specifically in spring. In Quan Lan commune, the period from April to June and from September to November is considered the best time to visit Quan Lan because the cultural tourism activities are mainly associated with festivals taking place during this time.
Minh Chau island commune:
Tourism exploitation time is all year round, because this is a place with a number of tourist attractions with diverse ecosystems such as Bai Tu Long National Park Research Center, Tram forest, Turtle Laying Beach, so besides coming to the beach for tourism and vacation in the summer, Minh Chau will attract research groups to come for tourism combined with research at other times of the year.
d. Sustainability
The sustainability of ecotourism sites in Quan Lan and Minh Chau communes depends on the sensitivity of the ecosystems to climate changes.
landscape. In general, these tourist destinations have a fairly high level of sustainability, because they are natural ecosystems, planned and protected. However, if a large number of tourists gather at certain times, it can exceed the carrying capacity and affect the sustainability of the environment (polluted beaches, damaged trees, animals moving away from their habitats, etc.), then the sustainability of the above ecosystems (natural ecosystems, human ecosystems) will also be affected and become less sustainable.
e. Location and accessibility
Both island communes have ports to take tourists to visit from Van Don wharf:
- Quan Lan – Van Don traffic route:
Phuc Thinh – Viet Anh high-speed boat and Quang Minh high-speed boat, depart at 8am and 2pm from Van Don to Quan Lan, and at 7am and 1pm from Quan Lan to Van Don. There are also wooden boats departing at 7am and 1pm.
- Van Don - Minh Chau traffic route:
Chung Huong high-speed train, Minh Chau train, morning 7:30 and afternoon 13:30 from Van Don to Minh Chau, morning 6:30 and afternoon 13:00 from Minh Chau to Van Don.
f. Infrastructure
Despite receiving investment attention, the issue of infrastructure and technical facilities for tourism on Quan Lan Island is still an issue that needs to be resolved because it has a direct impact on the implementation of ecotourism activities. The minimum conditions for serving tourists such as accommodation, electricity, water, communication, especially medical services, and security work need to be given top priority. Ecotourism spots in Minh Chau commune are assessed to have better infrastructure and technical facilities for tourism because there are quite complete and synchronous conditions for serving tourists, meeting many needs of domestic and foreign tourists.
3.2.1.4. Determine assessment levels and assessment scales
Corresponding to the levels of each criterion, the index is the score of those levels in the order of 4, 3, 2, 1 decreasing according to the standard of each level: very attractive (4), attractive (3), average (2), less attractive (1).
3.2.1.5. Determining the coefficients of the criteria
For the assessment of DLST in the two communes of Quan Lan and Minh Chau islands, the students added evaluation coefficients to show the importance of the criteria and indicators as follows:
Coefficient 3 with criteria: Attractiveness, Exploitation time. These are the 2 most important criteria for attracting tourists to tourism in general and eco-tourism in particular, so they have the highest coefficient.
Coefficient 2 with criteria: Capacity, Infrastructure, Location and accessibility . Because the assessment area is an island commune of Van Don district, the above criteria are selected by the author with appropriate coefficients at the average level.
Coefficient 1 with criteria: Sustainability. Quan Lan has natural and human-made ecotourism sites, with high biodiversity and little impact from local human factors. Most of the ecotourism sites are still wild, so they are highly sustainable.
3.2.1.6. Results of DLST assessment on Quan Lan island
a. Assessment of the potential for natural tourism development
For Minh Chau commune:
+ Natural tourism attractiveness is determined to be very attractive (4 points) and the most important coefficient (coefficient 3), so the score of the Attractiveness criterion is 4 x 3 = 12.
+ Capacity is determined as average (2 points) and the coefficient is quite important (coefficient 2), then the score of Capacity criterion is 2 x 2 = 4.
+ Exploitation time is long (4 points), the most important coefficient (coefficient 3) so the score of the Exploitation time criterion is 4 x 3 = 12.
+ Sustainability is determined as sustainable (4 points), the important coefficient is the average coefficient (coefficient 1), so the score of the Sustainability criterion is 4 x 1 = 4 points
+ Location and accessibility are determined to be quite favorable (2 points), the coefficient is quite important (coefficient 2), the criterion score is 2 x 2 = 4 points.
+ Infrastructure is assessed as good (3 points), the coefficient is quite important (coefficient 2), then the score of the Infrastructure criterion is 3 x 2 = 6 points.
The total score for evaluating DLST in Minh Chau commune according to 6 evaluation criteria is determined as: 12 + 4 + 12 + 4 + 4 + 6 = 42 points
Similar assessment for Quan Lan commune, we have the following table:
Table 3.3: Assessment of the potential for natural ecotourism development in Quan Lan and Minh Chau communes
Attractiveness of self-tourismof course
Capacity
Mining time
Sustainability
Location and accessibility
Infrastructure
Result
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
CommuneMinh Chau
12
12
4
8
12
12
4
4
4
8
6
8
42/52
Quan CommuneLan
6
12
6
8
9
12
4
4
4
8
4
8
33/52
b. Assessment of the potential for humanistic tourism development
For Quan Lan commune:
+ The attractiveness of human tourism is determined to be very attractive (4 points) and the most important coefficient (coefficient 3), so the score of the Attractiveness criterion is 4 x 3 = 12.
+ Capacity is determined to be large (3 points) and the coefficient is quite important (coefficient 2), then the score of the Capacity criterion is 3 x 2 = 6.
+ Mining time is average (3 points), the most important coefficient (coefficient 3) so the score of the Mining time criterion is 3 x 3 = 9.
+ Sustainability is determined as sustainable (4 points), the important coefficient is the average coefficient (coefficient 1), so the score of the Sustainability criterion is 4 x 1 = 4 points.
+ Location and accessibility are determined to be quite favorable (2 points), the coefficient is quite important (coefficient 2), the criterion score is 2 x 2 = 4 points.
+ Infrastructure is rated as average (2 points), the coefficient is quite important (coefficient 2), then the score of the Infrastructure criterion is 2 x 2 = 4 points.
The total score for evaluating DLST in Quan Lan commune according to 6 evaluation criteria is determined as: 12 + 6 + 6 + 4 + 4 + 4 = 36 points.
Similar assessment with Minh Chau commune we have the following table:
Table 3.4: Assessment of the potential for developing humanistic eco-tourism in Quan Lan and Minh Chau communes
Attractiveness of human tourismliterature
Capacity
Mining time
Sustainability
Location and accessibility
Infrastructure
Result
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Quan CommuneLan
12
12
6
8
9
12
4
4
4
8
4
8
39/52
Minh CommuneChau
6
12
4
8
12
12
4
4
4
8
6
8
36/52
Basically, both Minh Chau and Quan Lan localities have quite favorable conditions for developing ecotourism. However, Quan Lan commune has more advantages to develop ecotourism in a humanistic direction, because this is an area with many famous historical relics such as Quan Lan Communal House, Quan Lan Pagoda, Temple worshiping the hero Tran Khanh Du, ... along with local festivals held annually such as the wind praying ceremony (March 15), Quan Lan festival (June 10-19); due to its location near the port and long exploitation time, the beaches in Quan Lan commune (especially Quan Lan beach) are no longer hygienic and clean to ensure the needs of tourists coming to relax and swim; this is also an area with many beautiful landscapes such as Got Beo wind pass, Ong Phong head, Voi Voi cave, but the ability to access these places is still very limited (dirt hill road, lots of gravel and rocks), especially during rainy and windy times; In addition, other natural resources such as mangrove forests and sea worms have not been really exploited for tourism purposes and ecotourism development. On the contrary, Minh Chau commune has more advantages in developing ecotourism in the direction of natural tourism, this is an area with diverse ecosystems such as at Rua De Beach, Bai Tu Long National Park Conservation Center...; Minh Chau beach is highly appreciated for its natural beauty and cleanliness, ranked in the top ten most beautiful beaches in Vietnam; Minh Chau commune is also home to Tram forest with a large area and a purity of up to 90%, suitable for building bridges through the forest (a very effective type of natural ecotourism currently applied by many countries) for tourists to sightsee, as well as for the purpose of studying and researching.
Figure 3.1: Thenmala Forest Bridge (India) Source: https://www.thenmalaecotourism.com/(August 21, 2019)
3.2.2. Using SWOT matrix to evaluate Quan Lan island tourism
General assessment of current tourism activities of Quan Lan island is shown through the following SWOT matrix:
Table 3.5: SWOT matrix evaluating tourism activities on Quan Lan island
Internal agent
Strengths- There is a lot of potential for tourism development, especially natural ecotourism and humanistic ecotourism.- The unskilled labor force is relatively abundant.- resource environmentunpolluted, still
Weaknesses- Poorly developed infrastructure, especially traffic routes to tourist destinations on the island.- The team of professional staff is still weak.- Tourism products in general
quite wild, originalintact
general and DLST in particularalone is monotonous.
External agents
Opportunity- Tourism is a key industry in the socio-economic development strategy of the province and Van Don economic zone.- Quan Lan was selected as a pilot area for eco-tourism development within the framework of the green growth project between Quang Ninh province and the Japanese organization JICA.- The flow of tourists and especially ecotourism in the world tends toincreasing
Challenge- Weather and climate change abnormally.- Competition in tourism products is increasingly fierce, especially with other localities in the province such as Ha Long, Mong Cai...- Awareness of tourists, especially domestic tourists, about ecotourism and nature conservation is not high.
Through summary analysis using SWOT matrix we see that:
To exploit strengths and take advantage of opportunities, it is necessary to:
- Diversify products and service types (build more tourism routes aimed at specific needs of tourists: experiential tourism immersed in nature, spiritual cultural tourism...)
- Effective exploitation of resources and differentiated products (natural resources and human resources)
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Stakeholders in Relationship with Investment Capital in Defense Economic Zones -
Solutions to Mobilize Investment Resources for Tourism Human Resource Development -
Investment Resources for Occupational Safety and Health
Tools
Describe | Advantages/Benefits | Adverse | |
Often demanding on efficiency | |||
Short-term unsecured loans | Support loan needs | Guaranteed | |
Love | (not more than 270 days) usually | short term | by organizations that have |
vote | with high interest | credit rating | |
High | |||
Loan or equity capital | Interest may apply | May be accompanied | |
from national reserves and | below market | political goals | |
Investment fund | used for the purposes | Opportunity to attract | |
nation | investment purpose for the benefit of | funds from funds | |
nation | investment of countries | ||
other family | |||
A financial instrument | Allow access | If not paid | |
is made up of both borrowed and equity capital. | faster funding | debt, credit institution | |
Medium capital | equity | Help banks and | will confiscate the property |
space | other organizations have | products of equivalent value | |
can provide products | loan equivalent | ||
variety of products | |||
Lending banks | Cost of capital | Demand for price creation | |
especially to support organizations | usually low | certain value for society | |
Development Bank | meet development needs | Organizations with rankings low or no credit rating | society or economy |
rank can still be continued | |||
access to this source of capital |
Source: Author's synthesis.
Both the public and private sectors need to use debt instruments to raise capital for infrastructure projects such as: project finance, business and leaseback, asset-based lending, commercial structured finance, infrastructure bonds, intermediary capital, development banks, etc.
According to Table 2.1, from the perspective of ownership structure, the mobilization of financial resources to invest in infrastructure projects formed from public or private financial resources, the level of State control will also change over time or the life cycle of the project. The State owns and controls the entire infrastructure project until the complete privatization of the projects.
2.2.2.1. Mobilizing State financial resources
The State uses its power to concentrate a part of the total national income into centralized state monetary funds such as: State budget fund, non-state budget state financial fund as a source to carry out socio-economic development tasks on a national scale (insurance fund, road maintenance fund, etc.). Sources for forming centralized state monetary funds include: Revenue from production, business, circulation, distribution of domestic goods and services; revenue from loans, aid from the Government, non-governmental organizations, foreign individuals; revenue from leasing, selling state assets. In addition, when the state's demand for investment capital increases, budget revenue sources cannot meet the demand, the State also uses other investment capital mobilization tools such as: issuing government bonds, local government bonds, national construction bonds, state treasury bonds.
Mobilizing state financial resources holds a leading position in the system of mobilization channels serving the country's socio-economic development. Through the legal system and financial instruments, the state mobilization channel has the ability to influence, adjust, and control the scale and scope of operations of other mobilization channels in the economy.
Governments of countries as well as local authorities always give top priority to state budget capital for investment in socio-economic infrastructure development. Basic construction investment expenditure is a large expenditure of the state budget, an inevitable requirement to ensure socio-economic development of each country. First of all, development investment expenditure from the state budget aims to create technical facilities, production capacity to serve and reserve necessary goods and materials of the economy. At the same time, development investment expenditure from the state budget also has the meaning of seed capital to attract domestic capital sources and
Foreign investment in development according to the State's orientation in each period. The scale and proportion of State budget expenditure for development investment in each period depends on the State's socio-economic development policies and guidelines and the capacity of State budget capital. In general, countries always give State budget priority to development investment expenditure, especially developing countries with poor infrastructure. However, the structure of State budget development investment expenditure is not stable between socio-economic development periods. The order and proportion of State budget development investment expenditure priorities in each socio-economic field often change greatly between periods.
Government bond capital source: Government bonds (TPCP) are issued for the purpose of investing in socio-economic development under the expenditure tasks of the central budget. This is an additional source of capital, supporting the annual infrastructure development investment of the state in addition to investment capital sources from the state budget, with a highly concentrated nature to support socio-economic infrastructure development according to the socio-economic development goals and strategies in each period.
State credit capital: Bank credit is an important capital mobilization channel for public investment. However, because investment in economic and social infrastructure requires a large amount of capital but capital recovery is slow or impossible, very few commercial banks directly invest capital to build economic and social infrastructure, but this capital is mainly concentrated in the Development Bank, a financial institution 100% owned by the Government and operating not for profit.
Official Development Assistance (ODA) capital: In developing countries, ODA is one of the important capital sources of the State, used for priority goals in socio-economic development. One of the focuses of ODA capital use is to invest in socio-economic infrastructure development. Based on investment capital needs and development orientations by sector, field and territory set out in socio-economic development strategies and plans, governments of countries set out strategic orientations, policies and priority areas for ODA capital use for each period. Priority areas for attracting and using ODA include: agricultural and rural development (including agriculture, irrigation, forestry, aquaculture combined with hunger eradication and poverty reduction); construction of modern economic infrastructure; construction of social infrastructure (healthcare, education and training,