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REPUBLIC OF THE PHILIPPINES
BULACAN STATE UNIVERSITY
DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION DISSERTATION
DEVELOPM...
ii
ACKNOWLEDGEMENTS
Firstly I would like to thank the Institute Academy of Accounting and Business
Management (IABM) manag...
iii
ABSTRACT
In over the last three decades, the industrialization and urbanization have developed
rapidly making East Asi...
iv
suburban areas of Bangkok shall contribute 53% of urban citizen increases of this city
and, similarly, the rate for Jak...
v
TABLE OF CONTENTS
Chapter Content Page
ACKNOWLEDGEMENTS ii
ABSTRACT iii
TABLE OF CONTENTS iv
LIST OF ABBREVIATIONS vii
L...
vi
3 METHODS OF RESEARCH AND TECHNIQUES OF
STUDIES
3.1. Research Methods 54
3.2. Research Design 55
3.3. Population and Sa...
vii
LIST OF ABBREVIATIONS
- A&M (ACQUISITION AND MERGER )
- ADB (ASIAN DEVELOPMENT BANKS)
- AFTA (ASEAN FREE TRADE AREA)
-...
viii
- TNCS (TRANSNATIONAL CORPORATIONS)
- UNDP (UNITED NATIONS DEVELOPMENT PROGRAMME)
- USD (UNITED STATE DOLLAR)
- VAT (...
ix
LIST OF TABLE
Table 3.1. Characteristic of Ethnographic, Phenomenological, Elite and
Focus group interviewing
58
Table ...
x
Table
4.10.
Traffic development strategy 180
Table
4.11.
Human resource development orientations 186
Table
4.12.
Summary...
xi
LIST OF FIGURES
Figure 2.1 Silicon Valley - U.S 36
figure 2.2. Phu my hung downtown 42
Figure 2.3. International Financ...
xii
Figure 4.13 Sustainable growth strategy 147
Figure 4.14 Belt Road HoChiMinh City 171
Figure 4.15 TAN DUC integrated wi...
CHAPTER 1
THE PROBLEMS AND ITS BACKGROUND
1.1 Introduction
After many decades of developing industrial zones, export proce...
2
In macro aspect, there is currently a huge gap between the roles and functions of
industrial zones and the requirements ...
3
- Propose solutions and orientations to attract and increase the effectiveness of
investment in industrial zones;
- From...
4
5. What directions may be adopted to manage the growth and development of industrial
industries toward a sustainable dev...
5
- Firstly, regarding the evaluation of Industrial City, due to time limitation, the research
only focuses on Tan Duc Urb...
6
CHAPTER 2
THEORETICAL FRAMEWORK
2.1 Relevant Theories
The Concept of Government
Williamson (1996; 2003), who agrees with...
7
decision-making’ (Pennington 2000, p.3). Ostrom (1986), who draws
conclusions from Buchanan (1962) and Buchanan and Tull...
8
Dunleavy’s (1991) model, provides evidence to support public choice theory. His findings
suggest that bureaucrats have i...
9
considerations of status or patronage; (5) that strict rules exist on the basis of which
bureaucrats make their decision...
10
conceived as (a) delay, indecisiveness, any action that contributes to inactivity, (b) strict
routine and paper work le...
11
In explaining government bureaucracy, Williamson (2000) puts it that“…(it) remains a
poorly understood condition…” (p.6...
12
different way. They argue that every government department has a different role to play in the
administrative system. E...
13
Definition of Industrial Cluster
The notion of integrated centralized industrial development (agglomeration) by many
in...
14
the cluster); and (ii) horizontal integration (focus on similar input conditions (resources)
among enterprises in the c...
15
 Making companies aware of information, technologies, and vendors, through
which increasing production and product qua...
16
modern production facilities for purposes of exchanging, cooperating and trading in
relation to high-knowledge products...
17
related while green and functional areas are inappropriate; 1st generation Business Park is
desert during the day and n...
18
follow the principles of general planning and construct the infrastructure of a new small
urban area (which is consider...
19
To achieve a business effective development and satisfy the needs of sustainable
development, successful Business Parks...
20
- With a system of beautiful landscape surrounding modern structures, a Business Park
will create a totally new impress...
21
- A Business Park provides high quality landscape and working environment for the
region on the principles of protectin...
22
stadiums, fitness centers.... there are also jogging roads, walking pavements and
playground. Exclusive hotels are also...
23
Business Parks, parking lots become a space complex and helps in reducing building
coverage ratio.
Structures in this a...
24
Production plants have 1-2 storey and are large- and very large-scale buildings.
Some may be ranked as high-rise buildi...
25
This zone consists of structures to provide and maintain engineering aspects of the whole
Business Park: water station,...
26
the cooperation in managing issues, environment and natural resources. Through closely
cooperative activities, the comm...
27
- Minimizing the use of resources, especially non-recyclable ones; Encouraging the use
of recyclable materials; Restric...
28
- Achieving higher economic performance due to cost-sharing with common services,
such as: waste management, human reso...
29
- Ensuring ecological equilibrium: The establishment and development of EIZs (from
selecting location, planning, constr...
30
and recycling EIZs are strategic selections for industrialization process in such
developing countries as Vietnam.
2.2....
31
- Main recycling enterprises: collect, process and distribute by-products from waste
materials.
- Manufacturing firms: ...
32
agricultural industrial zones are 50ha small-scale zones, the development of these zones
needs to be under a master pla...
33
future. Certainly, these objectives are different in different societies (over time and space),
however, they share com...
34
country, industrial zones were established that promoted local economy toward
industrialization and shifted economic st...
35
and urbanization process. Weaknesses are: vertical connection among central
government, ministries, departments and loc...
36
 In the process of suburban industrialization and urbanization, investment flows
usually result in the change from agr...
37
Silicon Valley Scientific Research
It can be said that the concept of Business Park was originated in 1950s when Stanfo...
38
2.3.1. 2. Kalundborg Industrial Park (Denmark)
Kalundborg Industrial Park is considered as the first typical example of...
39
During 15 years (1982-1997), energy consumption in this Park was reduced by 19,000
tons oil, 30,000 tons coal, 600,000 ...
40
Basic components of Riverside Industrial Park is McNeil wood-based thermal power
plant, Living Machine waste water trea...
41
- Balancing equilibrium and impact on growth.
- Promoting and using finance effectively.
- Protecting and preserving na...
42
2.3.2. THE DEVELOPMENT OF URBAN INDUSTRIAL ZONES IN VIETNAM.
2.3.2. 1. Phu My Hung urban industrial zone
Location
This ...
43
Scale
Phu My Hung Corporation is permitted to exploit and develop a 5 urban zone cluster
(750 ha) creating a internatio...
44
for circulation of goods from road and sea ways. Reserved area for public structure is 14
ha.
Investor
Phu My Hung Urba...
45
crossing the swamp, and modern civil power, water supply and environment treatment
system, 150 ha of infrastructure for...
46
Let's have a brief of typical structures of the Center Zone
See Figure 2.3. International Finance and Trade Center
Inte...
47
ecological structure apartments and housing zones Garden Plaza I, Garden Plaza II,
Garden Court I and Garden Court II, ...
48
Garden Apartment Building, walking street, shopping mall on 2nd floor of the residential
area, Wonderland Park and a ri...
49
2.3.2.2. My Phuoc Urban Industrial Zone, Binh Duong Province
Overview
My Phuoc Urban Industrial Zone was founded on Jun...
50
Site: My Phuoc Urban Industrial Zone locates at a favorable site: 40km away from Ho
Chi Minh City; 42km away from Tan S...
51
Traffic : National Road 13 connects key traffic routes of the whole country. A bus route
from Ho Chi Minh City to the t...
52
to establish housing area for this development. To do that, considering following
variables:
(1) change of enterprises ...
53
54
CHAPTER 3
METHDOS OF RESEARCH AND TECHNIQUES OF STUDY
3.1 Research Methods
According to Denzin and Lincoln (2005), huma...
55
and visual data. The use of eclectic approach, applying more than one method, especially in
social research, is accepta...
56
The researcher focuses on interviewing enterprises in the industrial zones of Tan Duc,
Hai Son and Hanh Phuc. In additi...
57
methods” in the social and behavioural sciences and as “the mainstay of the ethnographic
enterprise”. It entails a syst...
58
between them. It is also important to note that different types of research may need to
concentrate on different types ...
59
normally interviewed repeatedly, perhaps with different
individuals composing the group. The advantage of this method i...
60
This procedure evaluates the data for their informational adequacy, credibility, usefulness
and centrality. Here, Marsh...
61
(d) a map depicting the physical layout of the setting; and
(e) a demographic table describing personal or demographic ...
62
CHAPTER 4
METHODS OF RESEARCHA ND TECHNIQUES OF STUDY
4.1 CURRENT SITUATION OF SUSTAINABLE DEVELOPMENT IN TAN DUC
URBAN...
63
In Socio-economic development consulting for 5 year period 2011-2015 conference
held by the Ministry of Planning  Inves...
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
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Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
Development of an industrial city model in vietnam   ph.d dissertation
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In over the last three decades, the industrialization and urbanization have developed rapidly making East Asia become the most dynamic area in the map of global economy. In this process, the accumulation of capital and knowledge, on one hand, has resulted in the appearance of highly centralized industrial cities such as Tokyo, Seoul, Shanghai, Bangkok, Manila, Kuala Lumpur, or Jakarta, and, on the other hand, the shifting of investment and industrial activities from these centers to surrounding areas creating a viral effect promoting the establishment of industrial satellite centers. The lesson learned from East Asian countries has shown the importance of this relation with respect to the position of local and national industrialization trend of viral or centralized nature. From the experience of East Asian countries, valuable lesson can be implied for Vietnam in general and its Key Economic Regions in particular.

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Development of an industrial city model in vietnam ph.d dissertation

  1. 1. REPUBLIC OF THE PHILIPPINES BULACAN STATE UNIVERSITY DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION DISSERTATION DEVELOPMENT OF AN INDUSTRIAL CITY THE TANDUC URBAN INDUSTRIAL ZONE MODEL: Transforming Industrial City to Industrial Zone in Vietnam Submitted by Nguyen Tuan Minh ID: BCC 12250 - March Year 2013 -
  2. 2. ii ACKNOWLEDGEMENTS Firstly I would like to thank the Institute Academy of Accounting and Business Management (IABM) management team, Dr. Tran Van Rung- President, Ms Nguyen Thi Thu Thuy -International Cooperation Center, the professoriate, all of whom provided me with tremendous support and assistance. I am extremely thankful for the enormous effort and learning experience. I would like to thanks Dr. Andy Ng who helps me improving new idea about Industrial City controlling and management . And I would like to thank my chairwomen – Madam Yen Dang who has idea to bring new city from US to Viet nam . I would like to thank all interviewers, all expert, staff and seniors of Government, all my colleague, TANTAO, TANDUC, PHUONGNAM, TASERCO…all people I have met to complete my dissertation I would like to express with my heart full of gratitude members of my small family, wife,son and daughter, special to two sisters - Ms. Minh Tam, Ms. Minh Phuong and my mother with their love of me, agreed to share the difficulties of time, finance as well as assisting me in all aspects during the implementation of this dissertation. Nguyen Tuan Minh
  3. 3. iii ABSTRACT In over the last three decades, the industrialization and urbanization have developed rapidly making East Asia become the most dynamic area in the map of global economy. In this process, the accumulation of capital and knowledge, on one hand, has resulted in the appearance of highly centralized industrial cities such as Tokyo, Seoul, Shanghai, Bangkok, Manila, Kuala Lumpur, or Jakarta, and, on the other hand, the shifting of investment and industrial activities from these centers to surrounding areas creating a viral effect promoting the establishment of industrial satellite centers. The lesson learned from East Asian countries has shown the importance of this relation with respect to the position of local and national industrialization trend of viral or centralized nature. From the experience of East Asian countries, valuable lesson can be implied for Vietnam in general and its Key Economic Regions in particular. VIRAL INDUSTRIALIZATION IN THE EAST ASIA Within only a decade, 90% of industrial production activities in Hong Kong shifted to Guangzhou Province setting up an industrial belt and establishing a number of satellite cities known as the industrial zone of Zhu Jiang River Delta. In the 80s and 90s, industries of Taiwan crossed the strait into the Mainland and rapidly turned Xiamen City of Fijian Province into an industrial center becoming an incentive for growth of Eastern offshore belt zones. These trends in China also happened in other East Asian cities such as Tokyo, Seoul, Shanghai, Bangkok, Manila, or Jakarta.... It is forecast that in the next 25 years, Asia surrounding zones will see an increase of 200 million urban citizens, 40% of the increase of urban citizens in the whole region. Estimatedly, in the next 20 years,
  4. 4. iv suburban areas of Bangkok shall contribute 53% of urban citizen increases of this city and, similarly, the rate for Jakarta will be 70%1 . Urbanization is growing strongly in Asia both in the past and in the futureChâuÁ MỹLaTinh- Caribe BắcMỹ ChâuPhi 0 5 10 15 20 25 30 35 40 Số lượng các thành phố trên 5 triệu dân (1975-2000-2015) 1975 2000 2015 Source: UN. World Urbanization Prospects: The 2001 Revision. The fact in East Asia has indicated that suburban areas with the advantages of lowest cost of labor and largest of land compared to urban cities will easily become the selected destination for domestic and international investors. So, there will be two flows of foreign investment and investment from urban cities to suburban areas resulting in a viral industrialization, promoting the shifting of economic structure of these regions toward industry-focus. It should be started with attracting capital, shifting industrial structure, setting up industrial cluster, moving people, developing supporting services for industrial zones, and changing small towns into satellite cities.
  5. 5. v TABLE OF CONTENTS Chapter Content Page ACKNOWLEDGEMENTS ii ABSTRACT iii TABLE OF CONTENTS iv LIST OF ABBREVIATIONS vii LIST OF TABLE ix LIST OF FIGURES xii 1. THE PROBLEMS AND ITS BACKGROUND 1.1 Research introduction 1 1.2 Problem statement 2 1.3. Objectives of the Research 4 1.4. Significant of the Research 4 1.5 Scope and Delimitation 4 2. THEORETICAL FRAMEWORK 2.1 Relevant Theories 6 2.2. Review of Related Literatures 12 2.3. Review of Related Studies 36 2.4. Conceptual Framework 51
  6. 6. vi 3 METHODS OF RESEARCH AND TECHNIQUES OF STUDIES 3.1. Research Methods 54 3.2. Research Design 55 3.3. Population and Samples 55 3.4. Research Instruments 56 3.5. Data Collection 56 3.6. Data Analysis and Statistical Treatment 57 4 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 62 5 SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1. Summary 200 5.2. Conclusion 201 5.3. Recommendations 204 BIBLIOGRAPHIES 210 APPENDIX
  7. 7. vii LIST OF ABBREVIATIONS - A&M (ACQUISITION AND MERGER ) - ADB (ASIAN DEVELOPMENT BANKS) - AFTA (ASEAN FREE TRADE AREA) - APEC (ASIA-PACIFIC ECONOMIC COOPERATION) - ASEAN (ASSOCIATION OF SOUTHEAST ASIAN NATIONS) - ASEM (ASIA-EUROPE MEETING) - BY BOT (BUILD OPERATION AND TRANSFER) - EU (EUROPEAN UNION) - FDI (FOREIGN DIRECT INVESTMENT) - FPI (FOREIGN PORTFOLIO INVESTMENT) - GDP (GROSS DOMESTIC PRODUCT) - ICOR (INCREMENTAL CAPITAL - OUTPUT RATE) - IMF (INTERNATIONAL MONETARY FUND) - IT (INFORMATION TECHNOLOGY) - K & L (CAPITA & LABOR) - ODA (OFFICIAL DEVELOPMENT ASSISTANCE) - PPP (PURCHASING POWER PARITY) - PVC (POLYVINYL CLORUA) - R&D (RESEARCH AND DEVELOPMENT)
  8. 8. viii - TNCS (TRANSNATIONAL CORPORATIONS) - UNDP (UNITED NATIONS DEVELOPMENT PROGRAMME) - USD (UNITED STATE DOLLAR) - VAT (VALUE ADDED TAX) - VND (VIETNAM DONG) - WB, (WORLD BANKS) - WCED (WORLD COMMITTEE FOR ENVIRONMENT DEVELOPMENT) - WTO (WORLD TRADE ORGANIZATION) - UMRT ( URBANT MASS RAPID TRAFFIC ) - BRT ( BUS RAPID TRAFFIC ) - LRT ( LIGHT RAPID TRAFFIC ) - IP ( INDUSTRIAL PARK ) - HTP ( HIGH TECHNOLOGY PARK ) - EIZ (ECOLOGICAL INDUSTRIAL ZONE)
  9. 9. ix LIST OF TABLE Table 3.1. Characteristic of Ethnographic, Phenomenological, Elite and Focus group interviewing 58 Table 4.1. Development of managements 79 Table 4.2. SWOT Analysis 82 Table 4.3. Comparing Tan Duc Vs Related Industrial Park 85 Table 4.4. Price and occupation Ratio 90 Table 4.5 Performance to state 101 Box 4.1 VTEC is a Japanese company 109 Box 4.2. An interview with FOSRAL consulting firm 111 Box 4.3 Quyen Auto Interview 116 Box 4.4. An interview with FOSRAL consulting firm regarding the possibility to develop auxiliary industry in Tan Duc 119 Box 4.5. An interview with Nguyen Thanh Phong (Master) - Director of Southern Consulting Firm 136 Table 4.6. Development of industrial sectors strategy 154 Table 4.7. Services- trading-tourist development Strategy 158 Table 4.8. Social Development strategy 162 Table 4.9. Environment development strategy 168
  10. 10. x Table 4.10. Traffic development strategy 180 Table 4.11. Human resource development orientations 186 Table 4.12. Summary of investment promotion orientations 191 Table 5.1. List of projects recommendation 197
  11. 11. xi LIST OF FIGURES Figure 2.1 Silicon Valley - U.S 36 figure 2.2. Phu my hung downtown 42 Figure 2.3. International Finance and Trade Center 46 Figure 2.4. My Phuoc Industrial Urban Zone 49 Figure 2.5. Conceptual Framework from Industrial Park to Industrial City 53 Figure 4.1. CPI Viet nam year 2012 62 Figure 4.2 Vietnam trade deflect 63 Figure 4.3 Economics indicate year 2011-2016- Resource : ADB 64 Figure 4.4 Long an location 67 Figure 4.5. Allocation Industrial Park in DUCHOA District 69 Figure 4.6 Income growth rate in Duchoa 70 Figure 4.7. Rentals of some industrial Park in Duc hoa District 71 Figure 4.8. Company financial Highlights 2007-2011 73 Figure 4.9. Company structure 75 Figure 4.10 Tan Duc Master Plan 78 Figure 4.11 Business Model 80 Figure 4.12 Projects in TAN DUC Industrial Park 89
  12. 12. xii Figure 4.13 Sustainable growth strategy 147 Figure 4.14 Belt Road HoChiMinh City 171 Figure 4.15 TAN DUC integrated with BRT 173 Figure 5.1. Industrial City Model 195
  13. 13. CHAPTER 1 THE PROBLEMS AND ITS BACKGROUND 1.1 Introduction After many decades of developing industrial zones, export processing zones, and hi-tech zones ("industrial zones") in various models that are being applied by many countries (especially the slower developing ones) in the world, the gap between the rich and the developed countries has narrowed. This has created the incentive for integration process to occur as an effective means of mobilizing domestic and foreign resources thereby promoting economic growth. As a slowly developing country, Vietnam is also under such a development route and trend. After 25 years of opening the economy with many positive achievements and successes of the economy, the impression of establishing and developing industrial zones is very clear. Today there are 260 industrial zones in the country with 3 Key Economic Regions in the North, Middle, and South, attracting over 8,500 projects, total capital of 70 billion USD (FDI: 40%), creating over 1.6 million jobs and contributing over 30% of GDP of the whole country, contribution of 20,000 billion VND per annual to government budget, etc. A new generation of laborers is coming from industrial zones and becomes valuable assets to assure the success of industrialization and modernization process in integration context. However, there are still many problems, especially from Vietnam's joining in WTO, these problems have become more severe and significant.
  14. 14. 2 In macro aspect, there is currently a huge gap between the roles and functions of industrial zones and the requirements of industrialization and modernization process and shifting of economic structure. Competitiveness, integration and interaction among industrial zones together with the coordination and support of local provinces to promote advantages and grow have also shown problems and limitations. In meantime Vietnam still lacks a strategic vision in development planning, policy planning and macro-administration, etc. The consequences of such problems and limitations have caused industrial zone development strategy scattered, segmented, and lack of focus on key sectors in each region, resulting in spreading development, wasteful and ineffective investments in developing industrial zones. Such a situation weakens competitiveness of the economy, unreasonable use and allocation of resources, land in particular, unattractive investment climate, and under-developed inner capacities of the economy. Serious environmental pollution, lack of high-quality human resource, low competitiveness, etc. are the consequences of such a weak vision and management ability. 1.2 Statement of Problem Purposes: - To clarify theoretical background and practice of the development of sustainable urban industrial zones in Vietnam in general and Tan Duc Industry - Residence - Service Park in particular. Tasks: - Systematize the theories of urban industrial zone development;
  15. 15. 3 - Propose solutions and orientations to attract and increase the effectiveness of investment in industrial zones; - From changing the quantity of enterprises, change the quality, shift from simply industrial zone model to phase 2 - modern industrial zone with full services, commercial activities, and recreation facilities as the foundation to develop a firm and sustainable business park model; - Coordinate to the development of other industrial zones to make the pre-condition for developing an Industrial City. Research Question The general problem of the study is How may an industrial city be developed for the industrial zone in Long An Vietnam? The following are the specific problems: 1. How may the local economy be developed through the promotion of industrialization and modernization of industry sectors? 2. How may control and management of urbanization be sustained in an effective manner? 3. What measures may be adopted to strengthen the environment control and management in order to preserve and maintain environmental quality and landscape of industrial zones? 4. How may the technical infrastructure and socio economic facilities to external services be strengthened?
  16. 16. 4 5. What directions may be adopted to manage the growth and development of industrial industries toward a sustainable development? 1.3. Objectives of the Research The model of Tan Duc is Industrial - Residence - Service - "Business Park", a typical urban industrial model in the South of Vietnam, to assess the attributes of an industrial zone, the relation among human resource, environment and industry, to create a green and fresh space for people to work and relax in. The research is also intended to find the factors of success and limitations of this Business Model in constructing, developing and operating the projects. 1.4. Significant of the Research Completing theoretical background and practice of developing an industrial zone in a province in a Mekong River Delta in particular and in Vietnam in general; Clarifying current situation and limitations of investment activities in industrial zones in Long An; Proposing solutions to improve the effectiveness of developing industrial zones in Long An; Changing the model of industrial zone into the model of industrial city. 1.5. Scope and Delimitation In spite of its contributions as mentioned above, this research still contains certain limitations.
  17. 17. 5 - Firstly, regarding the evaluation of Industrial City, due to time limitation, the research only focuses on Tan Duc Urban Industrial Zone and cannot reflect a majority of beneficiaries in TAN DUC. - Secondly, the research focuses only on researching each component in the most general manner. There are possibly other factors that must be considered in developing an industrial city. - Thirdly, as analyzed above, developing an industrial city depends largely on economic cycle and health condition of investors. In the context of global and Vietnamese economies still having many difficulties, the applicability of this topic in developing industrial cities is very challenging. - Fourthly, this is just a topic of academic scientific research. It is just a measurement instrument showing relationships and initial, general evaluation of beneficiaries' opinion toward the development of an industrial city.
  18. 18. 6 CHAPTER 2 THEORETICAL FRAMEWORK 2.1 Relevant Theories The Concept of Government Williamson (1996; 2003), who agrees with John R. Commons that transaction costs are the basic unit of analysis in explaining economy, emphasises the importance of relating economic performance to governance structure. Williamson (1999), emphasises the importance of understanding public bureaucracy in the analysis. This indicates that the concept of government deserves much attention. For that reason, this sub-section will review the concept of government. The discussion is divided into three topics: (a) Definitions of government; (b) Functions of government and motives underlying government actions; and (c) Government and bureaucracy. Definitions of Government In the Encyclopædia Britannica, ‘government’ is defined as ‘the political system by which a nation or community is administered and regulated’3 . Rose (1976) defines the basic functions of government as foreign policy, weapons, justice, police and revenue. For Brynard (1995), government functions as a vehicle for political leaders in power to discharge their responsibilities or to enforce their legitimate powers, and is an extension of the political structure of the nation state. James Buchanan, Gordon Tullock and Mancur Olson, who all subscribe to public choice theory, define government as ‘modes of analysis of collective choice and democratic
  19. 19. 7 decision-making’ (Pennington 2000, p.3). Ostrom (1986), who draws conclusions from Buchanan (1962) and Buchanan and Tullock (1985), suggests that a democratic government’s decisions reflect the will of the electorate. In other words, government decisions are the collective choice of the electorate (Pennington, 2000) or, as Buchanan and Tullock (1962) put it: “collective action is nothing more than, ‘the actions of individuals when they choose to accomplish purposes collectively rather than individually’. Institutions such as the state, therefore, are ‘nothing more than the set of process, the machine, which allow collective action to take place…” (quoted in Pennington [2000, p.3]). Functions of Government and Motives Underlying Government Actions Those associated with public choice theory, such as Olson (1965), Buchanan and Tullock (1962), believe that government is a medium for individuals to accomplish their purposes collectively. Olson (1965) defines organisations as “…groups of individuals with common interest… ”(p.1). He understands organisational behaviour as “…groups act to serve their interests presumably is based upon the assumption that the individuals in groups act out of self-interest… ”(Ibid). Thus, public choice theorists assume that bureaucratic actors (i.e. politicians and government officials) are self-interested agents. Based on this theory, where desire for power is politicians’ main incentive, government officials continually strive for budget appropriations (Pennington, 2000). Stoker (1991) argues that budget appropriation is not the only factor that motivates bureaucrats. He suggests that government officials are also mission-orientated with a desire to serve the public. Purely self-interested bureaucrats, on the other hand might concentrate on individual career advancement or workload reduction. Pennington (2000), whose case study focussed on British government departments involved in spatial planning by applying public choice theory and adapting
  20. 20. 8 Dunleavy’s (1991) model, provides evidence to support public choice theory. His findings suggest that bureaucrats have interests of their own. They tend to seek various forms of satisfaction, both material and non-material, including mission accomplishment. Government and Bureaucracy Before further discussion, it will be beneficial to consider the general concept of bureaucracy. Albrow (1970) and Warwick (1974) suggest that it is difficult to give one definition which encompasses the overall meaning of bureaucracy. Warwick (1974) summarises Albrow’ (1970) findings as, “After examining a vast amount of writings in the social and political sciences where the term was used, he concludes that there is ‘no element common to them all which could form part of a useful definition” (p.1). In his ‘Dictionary of Politics’, Robertson (1984) explains that Max Weber (Maximilian Carl Emil Weber 1864 - 1920) was the first to emphasise the theory of bureaucracy in modern society. Most subsequent research on and theories about bureaucracy have discussed Weber’s theory of bureaucracy, which is based on basic organizational principles. Robertson suggests further: “The most important (principles) are: (1) that office-holders in an institution are placed in a clear hierarchy representing a chain of command; (2) that they are salaried officials whose only reward comes from the salary and not directly from their office;(3) that their authority stems entirely from their role and not from some private status, and that the authority exists only in, and as far as it is needed to carry out, that role;(4) that appointments to bureaucratic positions are determined by tests of professional skill and competence and not for
  21. 21. 9 considerations of status or patronage; (5) that strict rules exist on the basis of which bureaucrats make their decisions, so that personal discretion is minimised; and (6) that such institutions collect and collate detailed records and operate on the basis of technical expertise (Robertson, 1984, p.44, emphasis added). Warwick (1974) tries to distil the meaning of bureaucracy from various opinions and suggests that the term: (a) is used to capture the notion of a social structure which confronts most members of an organisation and possibly prevents them from feeling able to be any more than subordinates, without any real control over the social processes that are going on within the organisation; (b) evokes the process whereby members have their position and degree of subordinacy defined, their jobs categorised, separated and changed, and the manner in which they relate to other members of the organisation regulated; (c) points directly to the nexus of control in an organisation, the members who make the decisions and are responsible for initiating activity, and the source of moves to retain centralised power and rigid rules. Bureaucracy in this third sense is fundamentally supported and sanctioned by a legal structure (with its apparatus of law enforcement) which is an element of the wider society in which the organisation is placed. Bureaucracy as such may, however, to some extent be able to control this legal structure, and use it as a means of negotiating with subordinated about changes in the process. A discussion of bureaucracy is incomplete without explaining what is colloquially called ‘red tape’. ‘Red tape’ is a fuzzy concept which has different meaning for different people. Its French equivalent is la paperasserie or an unsatisfactory routine. Red tape is also commonly
  22. 22. 10 conceived as (a) delay, indecisiveness, any action that contributes to inactivity, (b) strict routine and paper work leading to ineffectiveness, rigid application of rules, (c) bureaucratic mean-spiritedness, and (d) laws, rules, regulations, procedures and forms that are seen to be cumbersome and excessively complex. In short, ‘red tape’ is usually defined in the idiom of inefficiency (Brynard, 1995). Page (2003) and Butterworth and Horne (2003) suggest that almost every single word in the bills of statutes of laws and draft of policy decisions is prepared by government official. Thus, bureaucracy, can also include the communication systems between politicians, who are the decision makers, and the electorates (Kelly, 2004; Gajduschek, 2003). Bureaucracy is also linked to accountability. Every public office is responsible for ensuring that its operation is financially and managerially accountable. Generally speaking, accountability means a person, or group of people, can be held to account for their conduct. There are at least four types of accountability, applicable to public administration: (a) public accountability that requires those who are responsible to draft and/or carry out policy and obliges them to give an explanation of their actions to the electorate, (b) financial accountability that requires them to abide by the regulations with which resources are entrusted to them, (c) legal accountability, which is accountability to a court of law, or the equivalent, for the powers entrusted to them, and (d) managerial accountability, by which officials are obliged to achieve defined managerial targets and meet their resource utilization objectives (Glynn and Murphy, 1996). As a result of accountability, all matters at government offices, including even the simplest service cannot be rendered without procedure being followed. This practice is related to the idiom of red tape, use of forms and observation of rigid procedures (Brynard, 1995; Cheung, 1996). Bureaucracy is then defined as a system to protect public interest.
  23. 23. 11 In explaining government bureaucracy, Williamson (2000) puts it that“…(it) remains a poorly understood condition…” (p.611). Pennington (2000) explains bureaucracy as a means of division of power or government administration setup, referring to the British planning system, suggesting that government functions are divided into several agencies operating at both the national and local scale. Claver et al. (1999), who see bureaucracy as the whole public administration system, suggest that the governmental hierarchical administrative system and agencies are divided into local, provincial or regional, national and even trans-national agencies. In some cases some agencies are autonomous (Cheshire and Gordon, 1998). Thus, an important government task is to co-ordinate functions split between local or regional authorities (Cheshire and Gordon, 1998; van der Krabben and Lambooy, 1993; van der Krabben, 1995), coordinate policy and implementation (Vigar and Healey, 1999; Cheshire and Gordon, 1998), and to coordinate between departments (McHugh, 1997) or simply between individuals in administration (Cheung, 1996). The above issues are associated with what North (1990) terms a ‘problem of co-ordination’. In understanding the problem of public administration, it is essential to appreciate that government administration can be divided into hundreds of departments, employing a significant number of employees. As the number of departments, divisions and personnel grows, co-ordination becomes highly problematic (Brynard, 1995). Indeed, co-ordination has become more complicated with ever-expanding state responsibilities (Glynn and Murphy, 1996). There are differing opinions as to how to explain the problem of co-ordination within the government administrative system. Cheung (1996) sees it merely as competition between the different interests of individuals. Ismail (1994) and van der Krabben (1995) see it as competition of interests between agencies. Glynn and Michael (1996) look at it in an entirely
  24. 24. 12 different way. They argue that every government department has a different role to play in the administrative system. Each department has different rules and standards. In an effort to provide the best service possible the differences between rules, regulations and standards in different government departments may result in decisions and actions that conflict with each other. Niskanen (1971) notes that the term ‘bureaucracy’ is sometimes used in reference to the organisational structure, methods and behavioural characteristics of the bureau. However, he argues that the term soon became used to identify a form of government ruled by officials. However, judging from his writings, Oliver Williamson inclines more towards defining bureaucracy as a form of organising economic activity. 2.2 Review of Related Literatures 2.2.1. Cluster World economy has stepped into a new era with the application of revolutionary results of information technology. Global market is gradually expanding at a more rapid rate more than ever. Companies can easily take advantages of lower labour costs and resource allocation comparing with other regions to compete in term of cost of good sold. People no longer have to focus on regions with abundant resource allocation and lower labor costs in developing their businesses. Perhaps, is the new economy gradually erasing geographic role in strategic decision making? In fact, regional competitive advantages are shifting toward another orientation. It is the establishment of centralized industrial zones (autonomy) which is called as clusters by Michael E. Porter, an Economic Professor of Harvard University.
  25. 25. 13 Definition of Industrial Cluster The notion of integrated centralized industrial development (agglomeration) by many industrial entities in a certain geographic area has been introduced over a century ago by the theory of Marshall (1) (1890). Through many stages of evolution over time, this theory has been promoted to a new level by the organization of cluster-based industrial development (2). Today, there are many different definitions of a cluster (3) in the world, for example:  Michael Porter (1990) - the as-known-as father of modern theory of competition, defines an industrial cluster as an array of inter-related companies/enterprises, specialized providers, service suppliers, and related organizations in a particular centralized industry in a certain territory (4). This definition of industrial cluster is an important factor in Michael Porter's famous theory of competition.  Sonobe and Otsuka (2006): A geographical concentration or localization of enterprises producing similar or closely related goods in a small area.  Kuchiki (2007): Geographic concentration within a nation or region of inter- connected companies, specialized suppliers, service providers and associated institutions in a particular field. It can be seen that 03 definitions of industrial cluster have a common as the centralization in a certain territory of inter-related enterprises in a business field. However, industrial clusters are different in term of organization. From each viewpoint, scholars base on the organization form to categorize clusters. Accordingly, a cluster is categorized into two groups: (i) vertical integration (focus on commercial relationship among enterprises in
  26. 26. 14 the cluster); and (ii) horizontal integration (focus on similar input conditions (resources) among enterprises in the cluster). Clusters can be categorized very differently. Today, the concept of cluster has affirmed the advantage of a region by centralizing industries, not depended only on resource allocation and labour resource that other regions did not have. It is not by chance that Hollywood becomes the capital of motion picture industry, Wall Street becomes the center of financial industry, Silicon Valley becomes the center of hi-tech industry, and North Italy becomes the center of high-end shoes. Since companies' ability to control cost price is more and more equal, their competitiveness has been depending on the output of products and services, which is the determinant of a company's innovation. First of all, we need to understand what a cluster is? According to Porter, a cluster is an array of inter-related companies in a particular centralized industry in a certain territory. Around them are specialized providers, service suppliers, and facility providers. A cluster covers all of distribution channels and customers, and in addition to supporting manufacturers, those companies in the same technical fields shall use similar input. In a cluster also exists governmental and non-government agencies, universities, technology institutes, research centers, commercial associations, and so on, to provide education and training, information, research and technical support services. A cluster rarely follows a sector standard system since it normally ignores certain relevant entities as well as important competitive relationships. In a cluster, competition exists independently of cooperation. Companies compete hard, however, they do cooperate closely with research centers. To gain a competitive advantage in the new economy, the strengths of a cluster is:
  27. 27. 15  Making companies aware of information, technologies, and vendors, through which increasing production and product quality; As mentioned above, competitive advantages have transformed from the advantage of tangible resources to knowledge resource.  The close relationship between manufacturers and researchers in a cluster may promote innovation of products in production process and in company structure. A cluster helps companies share research and development costs and increase efficiency. On basis of such a common knowledge, technologies of a cluster are enhanced and research and development activities are promoted by every entity attracting human resource and knowledge from other regions.  When technology level is improved, a cluster shall attract other companies to participate in as they can see the advantages of infrastructure, technologies and finance available as well as knowledge, know-how and desirable workmanship. By joining in a cluster, companies can make sure their ability to review technologies and markets. 2.2.2. Business Park In the world, Business Park is the common name for Industrial Park, Science Research Park, Hi-Tech Park, Office Park, Business Park and similar zones such as Warehouse/Distribution Park, Logistics Park, Incubator Park or Corporate Park. In any name, a Business Park is the perfect combination of two concepts (1) Park and (2) Business. A Park is the place intended for relaxing, recreation, sport and entertainment purposes. A Business place is a place planned and designed for working officers and
  28. 28. 16 modern production facilities for purposes of exchanging, cooperating and trading in relation to high-knowledge products. Business Park nowadays is the result of a long development process dating back to original industrial zones in the 20th century. Business Park nowadays has become a structure of sustainable development, a very flexible landscape for commercial and trading activities as well as living and relaxing activities of human. Business Park is the incentive for socio-economic development in many communities, especially those in the context of urbanization process. In Vietnam, a Business Park is also known as an industrial zone, export processing zone, hi-tech zone, free trade zone or other commercial zones. Fundamentally, these are of original Business Park model with low standards and quality. 2.2.2.1. Generations of Business Park On basis of the scale, attributes and development features, it can be said that Business Park has experienced 4 generations of development upward. 2.2.2.1.1. First Generation Business Park 1st-generation Business Park originates from a structure known as an industrial zone locating in suburban area, consisting of facilities to serve industrial, warehousing or trading activities. The area is divided into land lots and sold to enterprises, constructed as per model structure, and offered for lease. Such a structure may still be considered perfect in general idea, however, its planning and architectural standards are low: high-building coverage ratio with firm structures and large-scale open warehouses allocated scatteringly; lack of public utilities; low coverage ratio environment landscape. Basic functions are industrial-
  29. 29. 17 related while green and functional areas are inappropriate; 1st generation Business Park is desert during the day and night and cannot be assured high quality environment and service standard. Business Parks of this generation are still being constructed, especially in developing countries, mainly for industrial activities instead of research, trading or service purposes. In Vietnam, most of current industrial zones are 1st generation Business Park. 2.2.2.1.2. Second Generation Business Park Learning from the experience in 1st generation, 2nd generation Business Park typically uses urban landscape with unique quality of community life (stores, clubs, sport stadiums, schools, etc.) as the key to the success of a meaningful design. Structures are allocated surrounding one or a series of open landscape (highway, lake, garden or square) with unique artistic values uniform to architectural philosophy and advanced planning: Beautiful Architecture will result in success in business. 2nd generation Business Parks are gradually covering remaining areas in the suburban to recover and add more liveliness to suburban areas and eliminate the impression on bad landscape and architecture of industrial zones. E.g., Chiswick (London, U.K.), Irvine Spectrum (California, U.S.). 2.2.2.1.3. Third Generation Business Park Scale, location and building coverage ratio are factors to differentiate 3rd generation Business Parks from previous generations. Low cost area of 50-200 ha for a Business Park is only available in suburban area near highways or airports. Due to its low cost, a Business Park can reduce building coverage ratio to 25-30%, in that manner, the concept of a park shall be dominant over the concept of business. 3rd generation Business Parks
  30. 30. 18 follow the principles of general planning and construct the infrastructure of a new small urban area (which is considered as part of a 1st generation Business Park). Public utilities are focused in one unique location or small urban area to serve development units. These development units with various densities and area scale shall create the diversity of users in a Business Park. Such development model is not available in existing urban areas. E.g., Stockley (Heathrow, U.K.), Meridian (Carolina, U.S.). 2.2.2.1.4. Fourth Generation Business Park Production areas and hi-tech research centers need to attract more and more experts and high-quality workers. Such a comprehensive development zone includes offices, production zones, housing zones, stores, schools, recreation facilities... have appeared. They are 4th generation Business Parks with the autonomy of a inter-related combination of development units, generally, it is similar to a small urban area with its own boundaries. All of 4th generation Business Parks have reached very high technical and social organization levels and can become a unique location of values and importance in the whole region. E.g., Marina Village (California, U.S.), Edinburgh (Edinburgh, Scotland). The concept of developing 2nd and 3rd generation Business Park has been applied in some Asian countries such as Japan or Singapore. In Vietnam, new Business Parks are known in some projects such as Saigon South Scientific Park or Hoa Lac Hi-Tech Park. 2.2.2.2. Development Principles of Business Park
  31. 31. 19 To achieve a business effective development and satisfy the needs of sustainable development, successful Business Parks normally follow the below principles of development: Mixed and flexible development of functions (in planning land use and structure design) to serve various demands of industrial, office, trading, and service sectors, etc. and other utility works to meet diversified needs of workers in those sectors. - Park-based planning and design: nice architectural structures locate between beautiful, familiar and harmonic landscape; A Business Park has low building coverage ratio with much area for green trees and open public landscape to create a perfect environment for human to live, work and relax as well as to establish a favorable environment for development and cooperation within and among enterprises; - Developing high quality technical infrastructure; - Reasonable price: In addition to benefits offered by Business Parks, land rental price and service fees and technical infrastructure are important factors to decide rental price for enterprises. 2.2.2.3. Benefits of Business park 2.2.2.3.1. Benefits to enterprises - Business parks provide high quality landscape and working environment in compliance with increasing demand of enterprises. A Business Park consists of not only impressive architectural structures and revolutionary landscape for the use and provision of comprehensive services to all of participating enterprises. A Business Park facilitates perfect conditions for enterprises and workers.
  32. 32. 20 - With a system of beautiful landscape surrounding modern structures, a Business Park will create a totally new impression and viewpoint over the enterprises. - Inside and outside technical infrastructure with the most advanced structures will facilitate favorable conditions for workers in any place in a Business Park. - A Business Park provides high-quality landscape and public utilities to serve the enterprises. This will reduce initial cost of investment of enterprises and it is this public landscape that serves as the bridge to important cooperation contacts and facilitates conditions for enterprises to develop together. - A Business Park always ensures safety and security for activities of enterprises from its gate to each structure. This is one of important and necessary conditions for research and hi-tech centers. - Enterprises in a Business Park will have more favorable conditions thanks to preferences of taxes, finance or development policies of the Government. Supporting services in a Business Park help enterprises gain competitive advantages by having the best access to the market, labour source information, latest achievements of scientific research and limitation of risks. 2.2.2.3.2. Benefits to the environment and society In parallel to benefits to enterprises, a Business Park always offers great benefits to socio- economic development and environment in the whole area. - A Business Park is the incentive for socio-economic development in the whole region: it provides jobs and trains the laborers, promotes urbanization process, promotes the growth of local and external enterprises, and promotes the development of commercial and other related activities.
  33. 33. 21 - A Business Park provides high quality landscape and working environment for the region on the principles of protecting the environment, protecting natural resources and maintaining ecosystem. - A Business Park provides public utilities and services not for individual use but for public use in the community. - A Business Park always seeks to integrate the community to develop together. 2.2.2.3. Functional Components of a Business Park 2.2.2.3.1. Operating and Service Center of a Business Park Operating and service center consists of management structure of a Business Park (of its investor or developers), supporting service structures to enable the enterprises to develop, cooperate in trading, financial, market, communication, transport, technology transfer, human resource training and supply activities, etc. and other related services for such purposes as presentation, product introduction, conference, seminars, security, etc. This center is typically located in the main entry in combination with green zone and front landscape and symbol to enhance the image of the Business Park. Structures in this center are planned as high-rise building to make it an impression of the main entry gate landscape. Building coverage ratio in this area is at average and low level. 2.2.2.3.2. Public, recreational, sport and cultural area This area serves not only the needs of workers in a Business Park but also the needs of people from neighboring locality, including such public structures as: retail stores, supermarkets, restaurants, shops, biscuit shops, hairdresser's ship, laundry shop, nursery school, health center, cultural and sport buildings, clubs, swimming pools, sport
  34. 34. 22 stadiums, fitness centers.... there are also jogging roads, walking pavements and playground. Exclusive hotels are also set up in many Business Parks. Above structures are developed to attract and facilitate conditions for the best and most convenient services for people inside and outside the Business Park: near the operating center, near the residential area, near the main entry gate or direct access to external transport. If residential units are planned in a Business Park, these units must become the center of the area with the systems of schools and system. Natural and artificial landscape network is paid special attention to create a feeling of comfort and familiarity for laborers. This contributes significantly to improve the capacity of laborers and cooperation among them - one of the basic goals of a Business Park. Building coverage ratio in this area is low and average with low-rise buildings (1-2 storey). 2.2.2.3.3. Office, Research and Scientific Areas These areas are intended for enterprises to hire in the Business Park, including land lots and construction structures that are planned and designed in a uniform, continues and multi-functional manner. These structures are focused surrounding or in series to green zone, water lakes and square, etc. to ensure the highest effectiveness of environment and landscape for the Business Park. Since the use of human resource is increasing, parking lot is an indispensable part in this area which has to be planned and designed in a uniform manner with structures. In many
  35. 35. 23 Business Parks, parking lots become a space complex and helps in reducing building coverage ratio. Structures in this area can be arranged into multi- or hi-rise storeys to save costs and increase its usefulness. Flexibility, multi-functionality, high convenience and energy- saving are indispensable factors in these structures. Green and smart structures are applied widely. Building coverage ratio depends on planning ideas and the landscape, however, it is average. 2.2.2.3.4. Goods Storage and Distribution Area This is an area specifically designed to store and distribute goods, including a system of low-rise warehouses and high-rise walls. This is also the center to introduce, carry out transactions and trade in enterprises' products. Storage structures are of large-scale and very large-scale. In front of the building, there is an office area for product transaction and introduction (accounting for 5-10% of building area). In the back of the building, there is a storage with access routes for transporting, loading and unloading goods and parking lots. Architectural form and green landscape will be focused on the front of the building structure (land lot). Many buildings take advantages of the front of commercial centers and office areas to reduce the pressure on the back. Building coverage ratio is at average level. 2.2.2.3.5. Industrial production area This is the centralized area of industrial production enterprises, application manufacturers and scientific and technology firms.
  36. 36. 24 Production plants have 1-2 storey and are large- and very large-scale buildings. Some may be ranked as high-rise buildings (7 storeys) and are constructed for light industrial sectors such as electronic assembly, garment and textile. Truck parking lot and goods loading unloading yards account for a large area of the land and are typically bordered by a green zone to improve the landscape. Building coverage ratio is at average level, 10-15% of the land area is used for green zone and landscape. 2.2.2.3.6. Park and Green zone Green park and water surface are indispensable in any Business Park. This is the core assembly of the planning and architecture of a Business Park. Natural landscape of the zone preserved and improved to maximum extent, combining with artificial landscape surrounding buildings and creating an ideal environment for anyone to live and work here. Besides the role of landscape, water lakes in Business Parks are also important to control water and maintain natural ecological systems. Beautiful and attractive landscape and environment are leading standards of a Business Park as well as the most effective economic, important and indispensable tool to create a unique image of the Business Park. Values of the Business Park in the market and community depend largely on the quality of surrounding environment. Minor structures such as points of stay, book booths, and sightseeing locations... may be set up in appropriate locations in the Park. 2.2.2.3.7. Infrastructure provision and maintenance zone
  37. 37. 25 This zone consists of structures to provide and maintain engineering aspects of the whole Business Park: water station, sub-station, waste treatment station, petrol station, gas station, hot water supply station, etc. Together with the development of information technology, current Business Parks are providing hosting and satellite cable, TV, video- phone, Internet and broad band connection services to each lot. 2.2.2.3.8. Traffic system Traffic in a Business Park includes: road, railway and terminal system (if any), parking lots and centralized garages outside the lots, bus stations and terminals. Walking or bicycle streets separated from road system and allocated in many places in a Business Park. If a Business Park has large-scale transport facilities (such as in Warehousing zone or goods distribution zone), transport routes can be separated from traffic routes for passengers and commodities. 2.2.2.3.9. Housing and residential zone This zone as developed in a Business Park is of 3rd and 4th generations, including high quality housing zone (low-rise) and relevant service structures. In large-scale Business Parks, this zone is developed as a completed unit with full functions: public center, commercial, service, administrative, school, flower garden, square and houses of various types to create a high quality living environment for laborers here. 2.2.3. Ecological industrial zone An ecological industrial zone (EIZ) is defined as: EIZ is a community of manufacturing and service enterprises with close relations on similar benefits: toward high quality social, economic and environmental activities via
  38. 38. 26 the cooperation in managing issues, environment and natural resources. Through closely cooperative activities, the community of an EIZ shall achieve a greater comprehensive result than individual effects of each enterprise The objectives of an EIZ are to enhance economic performance as well as reduce environmental impact caused by its member enterprises. EIZ is the incentive for industrial development in particular and socio-economic development in general toward a sustainable development in the whole region. 2.2.3. 1. Basic principles of an EIZ The development of an EIZ must follow the following fundamental principles:  Developing an EIZ in compliance with the rules of natural ecological systems - Creating ecological equilibrium from establishing, developing the zone (location selecting, design planning, construction, technical infrastructure, enterprise selection, activities, management, etc.) - All of activities in relation to an EIZ must be carried out synchronously and uniformly with the principle of environmental protection and in conformity with natural ecological systems.  Establishing an industrial ecological systems inside and outside an EIZ - Developing a production circulation process among enterprises in the zone as well as those inside and outside the zone - Minimizing and recycling the use of energy and water resources; Taking advantages of excess energy and water from production process; Widely applying recyclable energy: solar, wind, water powers, etc.
  39. 39. 27 - Minimizing the use of resources, especially non-recyclable ones; Encouraging the use of recyclable materials; Restricting the use of hazardous materials - Minimizing emission level, especially hazardous materials - Collecting and treating waste materials with environment-friendly technologies; Recycling waste materials to the maximum extent.  Developing enterprise community in an EIZ - Developing close and comprehensive cooperation among enterprises of an EIZ as well as those inside and outside the zone; exchanging information and common service fees such as: waste management, human resource education, environment information system, and other supporting services - Encouraging clean production and innovation of environment-friendly technologies - Encouraging enterprises and individuals to cooperate to protect and develop the ecology inside and outside EIZ - Developing a mix of functions (industrial, service, public, housing, etc.) and taking the maximum advantages of the inter-relation among them. 2.2.3. 2. Benefits of an Ecological Industrial Zone 2.2.3. 2.1. Benefits to enterprises  For enterprises as members and owner of an EIZ - Reducing production cost, increasing production efficiency by saving costs, recycling materials and energy; recycling and reusing waste materials; This promotes the competitiveness of products.
  40. 40. 28 - Achieving higher economic performance due to cost-sharing with common services, such as: waste management, human resource training, supply source, environment information system, and other supporting services. - Small and medium-scale enterprises often meet with difficulties in accessing information, know-how and technical secrets. Comprehensive solutions in the development of an EIZ shall help them overcome such difficulties and receive investment for development. - Benefits to member enterprises also enhance the value of real estates and profitability to the owner. 2.2.3. 2. 2. For the industry in general: - EIZ is an incentive for developing industrial economy in the whole region: increasing added value to industrial production and service, attracting investment, increasing jobs... - Facilitating conditions to support and develop minor industries in locality - Promoting the innovation, research and application of advanced new technologies. In summary, an EIZ can offer competitive advantages and important benefits in the context that industrial zones in Asia fail to satisfy the demand of industrial development in new era. 2.2.3. 2. 3. Benefits to the environment - Reducing sources to cause environmental pollution; reducing waste and the demand for natural resources thanks to new achievements of clean production, including: minimizing pollution, saving energy, managing waste, recycling resources, and other new methods of environment and technology management
  41. 41. 29 - Ensuring ecological equilibrium: The establishment and development of EIZs (from selecting location, planning, constructing, technical infrastructure, selecting enterprises, operation and management...) are complying with actual conditions and ecological characteristics of the construction land and surrounding areas. - Improving higher targets of environment: Each EIZ has its own model of development and management to continuously improve its basic features and protect the environment. 2.2.3. 2. 3. Benefits to the society - EIZ is an incentive for socio-economic development in the region, attracting large corporations and creating more jobs in industrial and service sectors. - Creating incentives and supporting local development projects with such activities as human resource training, housing development, and improvement of infrastructure, etc. - An EIZ is a natural center of industrial ecological network. Economic and environmental benefits offered by an EIZ shall create a new face of cleaner and more attractive environment for the whole region. - An EIZ shall create conditions for cooperating with state agencies in making new appropriate policies and laws on environment and business. 2.2.3. 3. Types of ecological industrial zone and functional components Each EIZ has its own characteristics in relation to its environment. Base on these, EIZs can be classified into five main categories as follows: Agricultural, recycling, recyclable energy, power plan, oil filtration, and chemical material EIZ [6]. In which, agricultural
  42. 42. 30 and recycling EIZs are strategic selections for industrialization process in such developing countries as Vietnam. 2.2.3. 3. 1. Agricultural EIZ An agricultural EIZ focuses on food processing industries using much energy, water and biomass to create circulation flows of waste product, by-products or finished products. Next is industries supporting a sustainable agriculture and maintaining and innovating socio-economic environment in rural areas. Structure of an agricultural EIZ includes: - Enterprises to collect, process and distribute food and food stuffs. - Enterprises to use waste products, by-products to produce biogas, compost, etc. - Production areas for food, food stuff, biomass that are specifically designed or near the zone. - Other relevant enterprises such as those using bio-materials (oil, bamboo, etc.) or recycling firms. - Suppliers of devices, energy, materials and agricultural and rural development services. 2.2.3. 3. 2. Resource recycling EIZ Resource recycling EIZ is a great chance from discontinuing the definition of waste material and cleaning urban environment. This zone offers great environmental and economic benefits from the management, recycle and reuse of industrial, commercial, domestic and public wastes in a systematic manner. This zone is a system recycling waste values, creating business opportunities and jobs, generating new profit, and bringing environment and public health efficiency. Core issue is how to change waste material into marketable products and materials. Main structure of a resource recycling EIZ includes:
  43. 43. 31 - Main recycling enterprises: collect, process and distribute by-products from waste materials. - Manufacturing firms: use by-products for manufacturing. - Other relevant enterprises: use other output of enterprises in the zone such as excess energy, water or other waste. - Manufacturers of devices for recycling and reusing process. - Other relevant enterprises: repairing services and environmental consulting, provision of investment capital, services, etc. Structure of an agricultural and resource recycling zone is presented in a inter-related line among enterprises that are able to use by-products or waste products from each other.g Rural areas in Mekong River Delta have advantages of agricultural production and natural conditions which shall be an appropriate location for developing industrial zone model as an agricultural EIZ. Besides, to minimize waste, we need to develop a recycling industry and develop the model of resource recycling EIZ. 2.2.3. 4. Mixed development and flexible functions Mixed development and flexible functions is the key to the success of a Business Park. Industrial zones in Vietnam cannot survive only the industrial function. They should also diversify to other functions such as commercial, service, public utilities, and residential housing. On large-scale basis as a small urban area, the diversified development of functions is mutually supportive (production, trading, public and housing) in a Business Park will ensure the sustainability and practicality of the project. In the context of Vietnam when
  44. 44. 32 agricultural industrial zones are 50ha small-scale zones, the development of these zones needs to be under a master plan to supplement the components that they lack. 2.2.3. 4. 1. More area for environment and landscape The philosophy of good working environment shall ensure high performance is applied as a competitive advantage of a Business Park. Low building coverage ratio, high coverage of trees and open space, beautiful architectural and landscape design... have transformed a Business Park into the most attractive and unique location in the region. This is in agreement with the principles of sustainable development. 2.2.3.4.2. Appropriate application of advanced solutions to protect the environment In the industrialization process, the application of latest advanced technologies to protect the environment and ecology is indispensable in Vietnam, however, it is necessary to select reasonable and appropriate solutions to ensure environment protection and economic performance. 2.2.4. Criteria of sustainable urban area Sustainable development has been a prioritized topic in discussion over environmental policies since 1980s when the movement of environmental protection has been started. The most common definition of sustainable development is introduced by Brundland in Our Common Future as “development to satisfy current needs but not affecting on the ability of future generations to satisfy their own needs.”. Promoting sustainable development is estimating future solutions and though changing attitude, policy innovation, society transformation, and economy restructuring to ensure a sustainable
  45. 45. 33 future. Certainly, these objectives are different in different societies (over time and space), however, they share common points. A sustainable urban area may be considered as: “An urban area that reaches the unity of sustainable framework in three aspects of economy, society and environment, to enhance the quality of life of current generation but not affecting on the development needs of future generation”. Specifically, an urban area is sustainable when it has reached the following objectives: - Providing sufficient conditions for human development and enhancing quality of life for the people; - Providing a sufficient, safe, healthy and attractive living environment for the people; - Mitigating impact on the ecology of the area; Protecting, preserving and recovering cultural, natural and historic heritages; - Promoting equality, closeness and integration in terms of territory and society; - Planning and managing uniformly, promoting the participation of social organizations in territory management; - Developing friendly relationship in the region. 2.2.5. Lessons for the development of urban areas in Vietnam In Vietnam, developing the industry only in large cities may cause serious effects on background of agriculture while focusing only on the industrialization of rural area shall be difficult to resolve inner problems of rural areas. It is necessary to come up with a comprehensive solution on basis of the whole economy. Several years in the past, in the provinces in suburban of Hanoi and HCM City, two biggest economic centers of the
  46. 46. 34 country, industrial zones were established that promoted local economy toward industrialization and shifted economic structure, promoted the process of urbanization. As such, upon considering the process in previous East Asian countries, Vietnam is experiencing a phenomenon of belt-region industrialization and urbanization process. A number of issues to be considered and oriented are as follows:  For Vietnam, if external industrialization is not strongly developed, it will be subject to the trend of centralized industrialization and bottleneck issues. It is a bottleneck when capital is not invested in business production but in speculative activities such as real estate while there are investment opportunities in external region that are not exploited. Another bottleneck is when rural laborers cannot get out of agricultural production. Land bottleneck is when most of people live and work in crowded urban centers that cause great pressure on the traffic, services and infrastructure....  In suburban areas of Vietnam, there are sufficient conditions for industrialization and urbanization process, however, it lacks incentives from the State in developing infrastructure to attract foreign investment and production activities from the center. In Philippines, private sector has proven its importance in developing suburban areas while in Thailand, the Government plays decisive role in orienting the development2 . In Vietnam when private sector is still weak and there is no strong enterprise such as in China, the role of State in creating such belts and promoting regional industrialization is especially important.  Experience of East Asian countries has shown a lack of cooperation and connection in implementing belt-region development programs that has delayed industrialization
  47. 47. 35 and urbanization process. Weaknesses are: vertical connection among central government, ministries, departments and local governments and horizontal connection among local governments.  In case the Push condition is satisfied from the city center outward, the matter is that whether local provinces have enough capacity to grasps the opportunity of this resource movement or not. Here, local governments shall play a decisive role. Investors are usually frustrated with administrative barriers, delay in preparing conditions for investment and local corruption. On the other hand, the competence of local governments in creating a friendly business environment is decisive to attracting investment capital. Former prime minister of Singapore, Mr. Lee Kuan Yew, once noted that countries in industrialization process typically focus too much on hardware (infrastructure) but neglect the most important factor as creating a friendly business environment for investors.  Another important point in the industrialization of suburban areas is that attracting investment capital is just a vehicle. The main point is how local provinces can benefit from this process to initiate the change of economic and labour structure. In some places in Thailand, an oasis model has been developed, i.e., the situation in which industrial zones cannot be connected to promote regional economy, transform economic structure, workers and engineers working in industrial zones come from other places instead of local people. This situation shall not induce economic structure transformation and local industrialization and urbanization will be impractical.
  48. 48. 36  In the process of suburban industrialization and urbanization, investment flows usually result in the change from agricultural into industrial production and the urbanization will break former structure of the locality and arise new challenges for the environment and social problems... Therefore, local governments should not only pay attention to arising economic issues but also social problems and develop orientations to deal with new challenges.  Regarding investment strategy, it is only necessary to avoid focusing only on capital construction but also on social security and human factor. Human resource training and vocational training are meaningful and decisive for local provinces to actually benefit from suburban industrialization, shift their economic structure and urbanize locality.  In the process of suburban industrialization, avoiding suburban competition and space in the urban center due to the shift of industry to suburban areas; Urban cities need to be applied active development strategies to promote inner change in material sense to develop to a higher level3 . So, the cities need to select alternative development trends, establish high-quality workforce, business classes and services, and develop science and technology.... 2.3. Review of Related Studies 2.3.1. FOREIGNER 2.3.1. 1. Silicon Valley - U.S. See figure 2.1. Silicon Valley - U.S
  49. 49. 37 Silicon Valley Scientific Research It can be said that the concept of Business Park was originated in 1950s when Stanford University (California, U.S.) introduced an idea to implement a coordination program for scholarship, research and employment with certain regional companies. With this program, Stanford University provided part of its land (about 3,240 ha) to hi-tech companies that were able to support Stanford’s activities. In 1951, first contracts were signed and Silicon Valley, world first Business was founded. In the end of 1960s, Trinity College (Cambridge University, U.K.) decided to copy the approach of Stanford in a non- production land to the Northeast of Cambridge City and set up Cambridge Scientific Research Center, U.K. first Business Park.
  50. 50. 38 2.3.1. 2. Kalundborg Industrial Park (Denmark) Kalundborg Industrial Park is considered as the first typical example of the first ecological industrial park in the world. The model of this Park is an important basis to develop the theoretical framework of EIZs in the world. On the basis of two coal thermal power plants, Asnos (1,500 mW) and Statoil oil filtration plant (1.8 million tons/year), in 1972, Plastic Gyproc Production Plant (14 million m2/year) started developing an energy and material exchange system among companies (industrial cohabitant) by using butane gas from Statoil.
  51. 51. 39 During 15 years (1982-1997), energy consumption in this Park was reduced by 19,000 tons oil, 30,000 tons coal, 600,000 m3 water and 130,000 ton carbon dioxide emission. According to statistics in 2001, companies in this Park gained 160 million USD profit on a total investment of 75 million USD. Currently, this Park has many enterprises using materials and products of each other, such as: fuel, sludge, dust and clinker, steam, hot water, sulfuric solution, water after biological treatment and gypsum. 2.3.1.3 . Riverside Industrial Park (Vermont, U.S.) Riverside Industrial Park with an area of 40ha (not including farm), is a mixed, multi- functional agricultural EIZ consisting of green zone, recreation and public areas and peat lands. This Park applies the principles of an EIZ to develop an enclosed sustainable development model focusing on agriculture, green house and clean energy.
  52. 52. 40 Basic components of Riverside Industrial Park is McNeil wood-based thermal power plant, Living Machine waste water treatment plan, compost plan and farms, fishery product growing farms and green houses. These components function in an input-output- closed cycle incorporating a waste wood collection station, cement manufacturing factory, cream plan and local farms. To achieve a strong growth of socio-economy and protect regional environment, developers in this Park have suggested 6 fundamental principles as follows: - Encouraging the development of an autonomy, self-supplied self-served economy that takes full advantage of local resources.
  53. 53. 41 - Balancing equilibrium and impact on growth. - Promoting and using finance effectively. - Protecting and preserving natural resources and environment of the locality, especially its traditional agriculture. - Always maintaining close cooperation with local community. - Cooperating with nonprofit organizations to promote essential goods and services. Riverside Industrial Park is a typical example of economic development on basis of ecological industry to achieve the benefits to environment and community.
  54. 54. 42 2.3.2. THE DEVELOPMENT OF URBAN INDUSTRIAL ZONES IN VIETNAM. 2.3.2. 1. Phu My Hung urban industrial zone Location This Zone locates across Nguyen Van Linh main street, a core route through district 7, part of Saigon South Urban Zone to the South of Ho Chi Minh City and connecting to the center via a bridge system. This Zone has a system of many natural channels. See Figure 2.2. Phu my hung downtown The Zone locates near Saigon River Port with existing ports such as Saigon Port or Ben Nghe Port, and a 20,000 DWT vessel.
  55. 55. 43 Scale Phu My Hung Corporation is permitted to exploit and develop a 5 urban zone cluster (750 ha) creating a international center of commerce and finance in South-East Asia: Zone A - New urban center (409 ha): this is the center of the urban zone where investors and traders are attracted to. Zone B - University Village (95 ha): this is the first simulative application sector in Vietnam taking the idea and experience from a community surrounding Silicon Valley in California, U.S., and the Scientific Industrial Park in Taiwan. University Village is a complex of functions including housing, commercial, local services and public works(18ha). A branch of RMIT International University, Australia is also located here. Zone C - Hi-Tech Center (46 ha): locates at the intersection of Nguyen Van Linh and Provincial Road No.7 where hi-tech industrial development factories in Vietnam are located, surrounded by a multi-function complex facilitating conditions for those who work and live there. Zone D - Goods Distribution Center No. II (85 ha): locates at the three-way intersection between Ben Luc and Can Giuoc River, facilitating conditions for ports, berths and serving as the terminal for distributing and circulating goods, storing food and relevant industrial products, consisting of a complex of commercial and housing functions with an area of 5ha for public structure. Zone E - Goods Distribution Center No. I (115 ha): locates at the intersection of National Road 1A and Nguyen Van Linh Boulevard, consisting of 5 sectors: International Trade Sector, Nguyen Van Linh Boulevard Trade Sector, Industrial Warehousing Sector, Port and Goods Transit Storage, and Housing Complex. Zone E locates at a favorable site
  56. 56. 44 for circulation of goods from road and sea ways. Reserved area for public structure is 14 ha. Investor Phu My Hung Urban Zone Project is owned by Phu My Hung Joint Venture Corporation with the certificate issued in May 1993. The Corporation had 70% foreign capital and 30% domestic capital. The investors are Central Trading Development (CTD) Group, PanVIET of Taiwan, and TTC (VN), who is also the investor of Saigon South Urban Zone Project. Mr. Ly Dai Minh, Deputy General Director in charge of Phu My Hung Corporation said that the Company always highly acknowledged the importance of management, design, planning, construction technology, selection of construction materials... and developed the highest standards for construction and design of U.S., Japan and China, etc. to apply in preparing building standards and codes of Phu My Hung. Foundation and Development The Project started with Central Trading Development Group and PANVIET carried out a number of strategic projects in a non-agricultural swamp area in 2003. (1) Developed 300 ha of Tan Thuan Export Processing Zone, the first one in Vietnam, attracting over 450 major factories from Taiwan and in the world. (2) Hiep Phuoc Port (3) Hiep Phuoc Industrial Zone (4) Hiep Phuoc Power Plant With the success of Tan Thuan Export Processing Zone, CTD continued investing in the construction of Nguyen Van Linh Boulevard of 17.8km long and 120m wide,
  57. 57. 45 crossing the swamp, and modern civil power, water supply and environment treatment system, 150 ha of infrastructure for public works to hand over to Ho Chi Minh City People's Committee for developing public services and starting Saigon South Urban Zone Project with an area of 2,600 ha. Therefrom, Phu My Hung Joint Venture Corporation started developing Phu My Hung Urban Area with 5 zones A, B, C, D, and E on an area of 750 ha. Business Operation Over 15 years of development in business, Phu My Hung Corporation still aims at most of the laborers in Tan Thuan - Hiep Phuoc export processing zone with nearly 50,000 laborers while housing market for low and medium-income workers has been taken care of. Next, the Corporation aims at medium and high-class market with more modern and highly commercial structures. Successful investors in PMH have helped popularized the reputation of this urban zone on international scale. It has attracted more and more secondary investors and residents to come to start their careers. Until now, this Zone has attracted more than 200,000 people to live and work there and 100,000 workers working in Tan Thuan - Hiep Phuoc export processing zone , creating a high demand for house in this Zone.
  58. 58. 46 Let's have a brief of typical structures of the Center Zone See Figure 2.3. International Finance and Trade Center International Finance and Trade Center: a complex of high-rise office multi-function building for commercial, finance, fair, exhibition, international conference, entertainment, tourism, service, administration, stock exchange, hotel and other social utilities, where locates offices of many multi-national corporations such as Unilever, Toyota, BMW, Porsche,... Major structures are Saigon Center of Conference and Exhibition, Saigon Paragon Office and Commercial Building, etc. In addition, there is Star Hill, a high-end housing and apartment project. Semicircular Lake Zone: with an area of over 10 ha and 100 million USD of investment capital for this project, simulating the idea of Singapore Bay. Semicircular Lake Zone Project is designed by 25 architects from 13 countries and 6 detailed implementing firms. Architect Axel Korn, director of KORN Architects - a direct designer of this Zone - said that it would play the role of a social heart. Canal Zone: to be simulated after The Canal Zone in the United States, which is a housing and commercial zone with service businesses, product display stores, restaurants and shops... on the ground and 2nd floors. Canal Zone spreads across Ton Dat Tien Boulevard with green parks and across a canal. The Zone is constructed with many
  59. 59. 47 ecological structure apartments and housing zones Garden Plaza I, Garden Plaza II, Garden Court I and Garden Court II, 70% of area of which is used for open space and green trees. Medical Care Zone: consisting medical facilities, care facilities, services, shops, sport and recreation centers... satisfying diversified needs of the people, from medical service, health care service to such services as FV Hospital (220 beds), Tam Duc Heart Hospital (180 beds), Viet-America Hospital, etc. and other health care services. Medical Care Zone also includes sport and recreation facilities such as golf yard, 9-hole golf yard, sand-bottom swimming pool, and 4 tennis courts. Canh Doi Zone: a residential zone early provided with facilities such as schools, supermarkets (Coopmart, Citimart), a series of convenient stores, and services along main traffic route of Nguyen Duc Canh Boulevard. Nam Khang Residential Blocks in Nam Vien Zone. The geography of Nam Vien Zone is like an oasis surrounded by river with low building coverage ratio and high green coverage of 10,000 - 20,000 m2. This is a residential area with the largest green coverage in the center of Phu My Hung Urban Zone, locating adjacent to International Finance and Trade Center and Semicircular Lake on the route of Nguyen Luong Bang Boulevard (48m wide). Nam Vien Zone is also the place for many foreign schools such as Japanese, Korean or Taiwanese schools. Culture and Entertainment Zone: locating to the West gate of Phu My Hung Urban Center, a centralized residential area, with the corridor of cultural trees for relaxing purpose to the North and river landscape to the East. Main structures here are street houses and apartments, Hung Thai villas, Hung Gia street houses, Hung Phuoc, Sky
  60. 60. 48 Garden Apartment Building, walking street, shopping mall on 2nd floor of the residential area, Wonderland Park and a riverside park. Midtown Zone: a central business zone along Nguyen Luong Bang Boulevard, locating between Nam Vien Zone and International Finance and Trade Center. There are many high-class villas and apartments here. Phu My Hung is also assessed as a standard model of urban area in Vietnam.
  61. 61. 49 2.3.2.2. My Phuoc Urban Industrial Zone, Binh Duong Province Overview My Phuoc Urban Industrial Zone was founded on June 12, 2002 with a total area of 6,200ha. Investor: Investment and Industrial Development Corporation (Becamex) Locating to the North of Binh Duong Province, one of Southern Key Economic provinces and the place of man industrial zones in the country, on the main traffic route (National Road 13) of Ben Cat District, Binh Duong Province. My Phuoc Urban Industrial Zone is a large-scale zone (Of which, 3,000 ha is used for industrial and urban zones and 3,200 ha is used for service facilities) to be carried out through 5 phases: Phase 1: 400 ha, 100% leased; Phase 2: 800 ha, 100% leased; Phase 3: 2200 ha, 70 % leased; Phase 4: 800 ha, leasing starts since 2009; Phase 5: 2000 ha, 50 % leased See Figure 2.4. My Phuoc Industrial Urban Zone
  62. 62. 50 Site: My Phuoc Urban Industrial Zone locates at a favorable site: 40km away from Ho Chi Minh City; 42km away from Tan Son Nhat International Airport; 32km away from Bien Hoa City, Dong Nai Province; 42km away from Saigon Port; 30km away from Dong Nai Port; 30km away from Binh Duong Port; 41km away from Saigon Railway Station; Tan Van - My Phuoc Speed Way going through the Zone. Development of industrial zones My Phuoc Urban Industrial Zone has standard infrastructure, reasonable rental price, and flexible payment method as well as supporting services and available warehouses and factories for lease. Flexible leasing method: an investor may hire land, available factory or apply the method of building and leasing; Free consulting and supporting services for the investors to perform procedures for starting their projects; Frequently hold social and community activities; Good investment attracting policies; By the end of July 2009, My Phuoc Urban Industrial Zone had proven the success of a development model combining industry - urban - service with 360 investors from 24 countries and a total investment of 2.8 billion USD. With more than 10 years of experience operating in the field of industrial zone infrastructure investment, Becamex has developed My Phuoc Urban Industrial Zone with purposes to create new resources to promote general and comprehensive socio-economic growth in Northern area of Binh Duong Province. With above purposes, My Phuoc Industrial - Urban - Service Complex has received much attention and support from local government and provincial agencies.
  63. 63. 51 Traffic : National Road 13 connects key traffic routes of the whole country. A bus route from Ho Chi Minh City to the town center directly connects to the Industrial Zone that facilitates favorable conditions for laborers. Utilities : - My Phuoc Market : consists of 04 sectors locating in important and strategic sites of My Phuoc 1, 2, and 3 with a total area of 9,000 m2. Each sector is divided into smaller sub-sectors for various business and services such as self-selecting market, supermarket, food drink area, inter-provincial station, and other services. - There is a theater for entertainment and culture enjoying needs of the laborers and local people: The open-door theater is set up on an area of 6,400 m2 and has 3,000 seats available. - 8-storey My Phuoc Trade Center locates at the center of the Industrial Zone serving experts and expatriates living in the area and adjacent provinces. - A supermarket at My Phuoc II Industrial Zone: BD Mart Supermarket is operated on an area of 3,000 m2 selling 50,000 various products from 600 suppliers that have been satisfying the needs of laborers and local people. 2.4. Conceptual framework In order to develop such an industrial city from industrial zones in Vietnam, it is necessary to develop a model to reach the objectives of a sustainable city. Factors such as health center, education, recreation centers, industrial services such as logistics, customs, sales centers, promotion centers, retail and wholesale shops.... In addition, it is important
  64. 64. 52 to establish housing area for this development. To do that, considering following variables: (1) change of enterprises in industrial zones. (2) Financial power and experience of the owner, commitments of the owner in constructing infrastructure, utilities and initial provision of services, contribution of the owner in initiating the project and engaging other developers. (3) Intervention of the state in the establishment and development of industrial zones such as planning, local meetings regarding the issue of sustainable development, tax policies, land use... (4) Policies on environmental protection and attitude of local people. (5) Developing transport and space system toward linking HCMC to Mekong river delta provinces, constructing road, river and mass transport systems to connect Ho Chi Minh City to its belt road. (6) human resource development. (7) open investment promotion. Besides, enterprises in industrial zones need to change in respect of their products, markets, technologies, labor, and coordinating ability, open development to cooperate with adjacent areas to create the foundation for development; About development orientation of sustainable industrial zones, combining social and environmental conditions as pre-conditions for developing an industrial city. Summary of Conceptual framework: See Figure 2.5 : Conceptual Framework from Industrial Park to Industrial Perfect City
  65. 65. 53
  66. 66. 54 CHAPTER 3 METHDOS OF RESEARCH AND TECHNIQUES OF STUDY 3.1 Research Methods According to Denzin and Lincoln (2005), humanism has a strong relationship with constructivism. The constructivism approach believes that ‘mathematical entities exist only if they can be constructed’ (Flew, 1984, p.74) or, in other words, that truth is not totally attained from a mathematical procedure or statistical analysis. The humanist approach therefore does not rely upon quantitative research methods, but subscribes to a qualitative approach. Similar to the differences between qualitative and quantitative research approaches emphasised by Creswell (2005) suggests that there are also distinctions in research design between the two approaches. Some literature divides social scientists into two dichotomous categories, qualitative and quantitative positivists. Moran-Ellis et al., (2006) argue that this partitioning of qualitative and quantitative methods is oversimplified. The fact is, the meta-theoretical assumptions that underpin different paradigms are multiple and complex. Social science therefore embraces many ‘paradigms’ that vary along multiple dimensions, including epistemology, ontology and conceptions of the nature of human action. Thus, a simple dichotomy between qualitative and quantitative is unhelpful. Rather, the use of mixed methods within single empirical investigations is possible. Mixed-methods studies can include ‘standard’ positivistic, quantitative and interpretive qualitative components, or a mixture of different types of qualitative data. This may include a mixture of positivistic, interpretive, phenomenological
  67. 67. 55 and visual data. The use of eclectic approach, applying more than one method, especially in social research, is acceptable (Greene et al., 2001; Moran-Ellis et al., 2006). 3.2 Research Design  Empirical method: The Dissertation has adopted research outcomes and secondary data from scientific works in relation to industrial cluster and business park, supporting industrial zone and ecological industrial park.  Statistical, comparative, analysis, evaluation and summary method: The Dissertation has analyzed period-based time-series data on industrial zones and cities in Vietnam in a comparison to the situations in other countries. Statistical functions have been used: frequency, percentage, growth rate, average value, forecast value.  Surveying and expert method: The Research used primary data from a survey specifically designed for the Dissertation by conducting a questionnaire survey and interviewing. Local policy makers, state administrators, investors in industrial zones, and manufacturing enterprises are main subjects of the survey, of which, infrastructure firms and suppliers are emphasized on. The author also conducted interviews with businessmen, Vietnamese and Japanese experts, infrastructure- related policy makers and construction official in Vietnam. 3.3 Population and Samples A total of 222 questionnaires were sent to enterprises in Tan Duc and adjacent industrial zones, of which 110 were returned and 2 were invalid, the ratio of 58%.
  68. 68. 56 The researcher focuses on interviewing enterprises in the industrial zones of Tan Duc, Hai Son and Hanh Phuc. In addition, FDI enterprises are also interviewed to consider the potential of promoting auxiliary industrial zones in this area. I have arranged to meet with industrial policy makers, leaders of governmental and non-governmental organizations and experts in relevant fields. Vietnamese enterprises account for about 60% and foreign enterprises account for about 40% of total enterprises. In particular, 8 Japanese, 5 Korean, 6 Taiwanese companies and many form China and other countries have been directly interviewed. Besides, the interviews with service companies and banks in the area are also conducted and the sections below shall describe a number of main results of evaluation. 3.4 Research Instruments The research instruments adopted in this research are: Case Study, interview and review of documentation for analysis. 3.5 Data Collection Husserl suggests that the humanist interpretive approach is the most suitable for the present study. Locke et al.(1998) note that on-site observation, examination of documents and interviews are the main method of data collection in qualitative research. A detailed explanation of each strategy will be discussed below. a. Observation Observation has been characterised as “the fundamental base of all research
  69. 69. 57 methods” in the social and behavioural sciences and as “the mainstay of the ethnographic enterprise”. It entails a systematic noting and recording of events, behaviours and artefacts regarding objects or environments studied (Marshall and Rossman, 1995). An observer needs to be attentive to all details and take nothing for granted in the area of study. Human activities, physical setting, body language and other gestures that lend meaning to the speech of interview are examples of things to look at (Angrosino, 2005). Angrosino (2005) suggests that observation can be undertaken in three ways - participant observation, reactive observation and unobtrusive observation. In any form of observation, a three-step procedure needs to be observed in order to increase the level of specificity of an observation. b. Review of Documents Review of documents, which is an unobtrusive method of observation, can help the researcher understand the values and beliefs of the observed participants (Marshall and Rossman, 1995) and is an important part of collecting ‘background material’ for ‘real’ analysis (McCulloch, 2004). There are a very wide range of possible documentary sources, including minutes of meetings, logs, announcements, formal policy statements, archival records, books, newspapers, periodicals, works of fiction, official data, proceedings, reports, diaries, letters, autobiographies, training handbooks, organisations’ plans and strategies, and organizational charts (Marshall and Rossman, 1995; Claver et al., 1999; McCulloch, 2004). Documents from virtual source, such as the internet or electronic mail, are a new focus and additional to the paper-based documents (Marshall and Rossman, 1995). McCulloch (2004) suggests that each type of document constitutes a substantial and significant set of information in its own right. However, there are connections
  70. 70. 58 between them. It is also important to note that different types of research may need to concentrate on different types of documents. The quality of these documents is assessed based on their authenticity, reliability and contents. c. In-Depth Interview Marshall and Rossman (1995) suggest that in-depth interviewing, or “conversation with a purpose”, is applied extensively by qualitative researchers. An example of an in-depth interview is an informal conversation meant to uncover a participant’s understanding and perspectives. An in-depth interview is not very structured, enabling the participant to respond according to his own perspective. Various techniques may be used: an informal conversational interview, a general interview or a standardised open-ended interview. In addition to generic in-depth interviewing, there are several more specialised forms of interviews, phenomenological interviews, including ethnographic interviews, elite interviews and focus group interviewing. Characteristics of each type are as follows: Table 3.1 : Characteristics of Ethnographic, Phenomenological, Élite and Focus Group Interviewing Type of Interview Characteristics Ethnographic Normally used by ethnographer to gather cultural data in research based on the discipline of cognitive anthropology Phenomenological Applied in a phenomenological enquiry to study experiences and the way in which people apply them to develop worldviews. Élite Interview individuals that are considered influential, prominent, and well-informed in an organization or community. Interviewees are selected for interviews on the basis of their expertise in areas relevant to the research. Focus Group Assemble participants into a group or groups of individuals (normally between 4 and 12 people) who are unfamiliar with one another. Participants are selected because they share certain characteristics that are relevant to the study. Each group is
  71. 71. 59 normally interviewed repeatedly, perhaps with different individuals composing the group. The advantage of this method is that the method is socially oriented and the resulting discussion is natural and mimics real life. 3.6 Data Analysis and Statistical Treatment Data analysis, which is messy, ambiguous and requires creativity, is the process of bringing order, structure and meaning to the mass of collected data (Marshall and Rossman, 1995). Table 14 indicates that qualitative research conclusions are not derived from testing hypotheses. As Schwartzman and Strauss (1995) put it: “Qualitative data are exceedingly complex, and not readily convertible into standard measurable units of objects seen and heard” (quoted in Marshall and Rossman, 1995, p.112). Based on Marshall and Rossman (1995) and Creswell (2005), procedures to follow in qualitative data analysis are: a. Organizing the Data At the early stage of analysis, qualitative data, normally collected in large amounts (Marshall and Rossman, 1995; Creswell, 2005) and in various forms, including interview tapes, field notes, documents, photographs and other visual materials, need to be compiled into file folders, cards or computer files (Marshall and Rossman, 1995; Creswell, 2005). Audiotape recordings and field notes need to be transcribed into text data. Creswell (2005) suggests that during the transcription process, the researcher, besides transcribing interviewees’ responses, need also to include the interviewer’s comments and observations. Interviewees’ responses can also be codified. b. Generating Categories, Themes and Patterns
  72. 72. 60 This procedure evaluates the data for their informational adequacy, credibility, usefulness and centrality. Here, Marshall and Rossman (1995) recommend: (a) Assessing the data and referencing them to the conceptual framework; (b) Noting regularities in the ‘setting or people chosen for study’ and identifying the salient, grounded categories of meaning held by participants in that setting; (c) Categorising responses into either ‘indigenous typology’ or ‘analyst constructed typologies’. Indigenous typologies are those created and expressed by participants and are generated through analysis of the local use of knowledge. Analyst- constructed typologies are those created by the researcher as reflecting certain categories. Creswell (2005) noted that the following categories of themes might emerge: (a) ordinary themes; (b) unexpected themes; (c) hard-to-classify themes; and (d) major and minor themes. c. Layering and Interrelating Themes Creswell (2005) suggests that the categorisation process, as above, should be followed by a procedure he calls “layering and interrelating themes”. This involves: (a) layering themes: Built on the idea of major and minor themes, in this process, themes are stratified into layers, beginning from basic elements and moving onto more sophisticated ones. (b) interrelating themes: The researcher connects the themes to display a chronology or sequence of events, such as generated in the researcher’s theoretical and conceptual model. d. Representing Findings Data and findings, are presented, typically in the form of: (a) a comparison table; (b) a hierarchical tree diagram representing the interconnection between themes; (c) a chain diagram demonstrating the relationship between themes;
  73. 73. 61 (d) a map depicting the physical layout of the setting; and (e) a demographic table describing personal or demographic information or sites visited in the research. e. Interpreting Qualitative research is interpretive research (Creswell, 2005). According to Guba (1985), “interpretation involves making sense of the data or the lesson learned” (quoted in Creswell, 2005). Accordingly, the next phase is to interpret the findings, drawing a more general conclusion about the studied phenomenon. Alternatively, interpretation can be accomplished by comparing the present data with past studies. Therefore, the headings ‘conclusions’, ‘interpretation’ and ‘implications’ are commonly found in qualitative research reports. Interpretation of the findings may include: (a) a review of the major findings and how the research questions were answered; (b) consistency of the present data with past studies in order to assess whether the findings support or contradict; (c) personal reflections about the research findings. Qualitative research believes that personal views can never be separated from interpretation. Besides, the researcher may have been to the field and visited the subject studied personally and spent a great deal of time with the respondents. The researcher is therefore in a good position to reflect and remark on the larger meaning of the data;
  74. 74. 62 CHAPTER 4 METHODS OF RESEARCHA ND TECHNIQUES OF STUDY 4.1 CURRENT SITUATION OF SUSTAINABLE DEVELOPMENT IN TAN DUC URBAN INDUSTRIAL ZONE, LONG AN PROVINCE In Chapter 2, theoretical basis in relation to research definitions and research model has been presented as well as research hypotheses. In this Chapter, the author shall present current situation of sustainable development in Tan Duc Urban Industrial Zone in aspects of regime, society and environment. 4.1.1 Overview of economic development in Vietnam See Figure 4.1. CPI Viet nam According to forecast by economic experts, world economy will face with much more challenges and difficulties and even fall into a recession again in the future. In that context, Vietnamese Government continues maintaining the objectives of curbing inflation and growing at an appropriate rate in accordance with domestic and world conditions. Thereby, it is possible to become active toward maintaining a firm growth in 2014.
  75. 75. 63 In Socio-economic development consulting for 5 year period 2011-2015 conference held by the Ministry of Planning Investment in Hanoi, MOPI gave two plans for the economy. Specifically, on basis of the forecast that world economic situation is still complex while growth rates will be low in 2011 and 2012 and in subsequent years, more difficulties and challenges may remain. Plan 1 : economic growth rate in the next 5 years is forecast to remain at 6.5%. GDP scale based on actual price through 2015 will be 4,500 thousand billion dong, equivalent to 180 billion USD; GDP per capita will be about 39 million Vietnam dong, equivalent to 1,965 USD. Total goods export value increased by 12%/year and total export value in 2015 will be about 12% of total import export value. Also according to this plan, indebtedness balance by the end of 2015 will be no more than 65% of GDP, government debt shall not exceed 55% of GDP, and national debt shall not exceed 50% of GDP. These figures as in 2010 were 57.3%, 45.7%, and 42.2% of GDP, respectively. Ratio of social investment for 5 years will be about 33.5%. Plan 2, if world economy is improved, GDP for the next 5 years will increase by 7,5 % and value of GDP will be 4,600 thousand billion dong, or equivalent to 184 billion USD. Economic structure: agriculture-forestry-fishery (18%), industry (42%), and service

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