Tài liệu Customs in the development of the cross border economic cooperation zone between kim thanh (lao cai viet nam) and beishan (yunnan china)

v r "h UPPSALA UNIVERSITET & UNIVERSITY OF ECONOMICS &. BUSINESS, VNUH .*** UPPSALA UNIVERSITET VNU-UEB ^^iM^^ MASTER THESIS OF MPPM CUSTOMS IN THE DEVELOPMENT OF THE CROSS BORDER ECONOMIC COOPERATION ZONE BETWEEN KIM THANH (LAO CAI-VIETNAM) AND BEISHAN (YUNNAN - CHINA) Authors: Hoang Kim Thang Cao Sang Supervisor: Prof. Lars-Torsten Eriksson PhD Local Supervisor: Dr. Nguyen Anh Thu PhD Class: MPPM INTAKE 6 - Group 18 Hanoi, M a y - 2 0 1 3 ACKNOWLEDGEMENTS First and foremost, I would like to express my sincerest gratitude to Prof Dr. Lars-Torsten Erikson and Dr. Nguyen Anh Thu who, even under pressure of their own tight working schedule, spent the most valued advice and shown generous support on my thesis. I also would like to thank all of faculty members in charge of MA course in Public Management, especially foreign specialists whose solid and extensive knowledge have provided us with interesting and useful lectures throughout 18 study months. The paper may not be prepared, completed and then presented without enormous motivation and facilitation by other instructors and administrators of University of Economics and Business - Vietnam National University, Hanoi. I am so glad to have chance to work together with them. Last but not least, they are my colleagues, my family and friends who help me much to optimize my limited time and then offer their inputs and comments for me to get the thesis completed. Of my most grateful words are saved to them. ABSTRACT Title: "Customs in the development of the cross border economic cooperation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China)" Level: Thesis of the master program in Public Management Authors: Hoang Kim Thang and Cao Sang Instructor: Prof Dr. Lars-Torsten Erikson and Dr. Nguyen Anh Thu Defense day: 18/05/2013 Goals: The cross border economic cooperation zone "one area for two countries, the closed connection" is a new approach of Vietnam to carry out the goals of expanding the economic corporation among neighbor countries, including China. Kim Thanh cross-border economic corporation zone (Lao Cai - Vietnam) and Beishan (Yunnan-China) w^hich is being searched and built is one small piece of the whole picture about Vietnam China economic relationship. Facilitating import and export goods activities, in which the Customs' role and tasks to boost investment cooperation, opening Lao Cai for the national dexelopment when Vietnamese finns are still distressed by aftershocks of the global economic crisis, is now an essential problem. The Customs have to seek solutions to facilitate trade as well as tightly control objectives. Therefore, the authors decided to choose the topic: " Customs in the development of the cross border economic cooperation zone between Kim Thanh (Lao Cai Vietnam) and Beishan (Yunnan - China)'' to be the topic of our Master's thesis. Methodology: The authors used the following methods: Research methodology: The authors used the method of modeline to facsimile the future customs model. This method includes: building model develop the model based on analyzing the collected data and examine the results through questionnaire and direct interviews. Collecting data method: researching documents (desk-study method) and survey method, collecting primary and secondar>' data. The study used the secondary data to fmd out the real situation of the Customs model in Kim Thanh cross-border economic corporation zone (Lao Cai-VN) with Beishan (Yunnan-China), simultaneously fmd out the theoretical problems of the cross-border economic corporation zone. In addition, to collect data to answer the main research questions, the study used primar\' data with practical surveys by questionnaires and cards inter\iewine directlv businesses and individuals to record their comments, suggestions for the model of the cross-border economic corporation zone. Quantitative data analysis method: the research used descriptive statistics to assess the sense of organizations, businesses and individuals about the cross-border economic corporation zone between Kim Thanh (Lao Cai Vietnam) and Beishan (Yunnan - China). The thesis also used SWOT model and the feasibility to enhance the efficiency of the model. In addition, the multiple regression method were used to assess impacts of researched element groups on effects of the Customs model. The analysis was perfomied with SPSS software version 11.5. The qaestiomiaire to collect data: To collect data for answering four research questions, the writers developed the questionnaire with 20 questions. Their content and measurement are in the questionnaire. The inteni'ewing cards to collect qualitative data: Those cards are for the more objective and comprehensive view about the Customs model and the cross-border economic zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China). - Method of data collection: From references to the Institute for International Trade Economic Cooperation of the Ministr>- of Commerce (China) and for International Trade Economic Cooperation, Ministr>- of International Trade Industry and Commerce (Vietnam),... the authors had taken addresses and email addresses to send questionnaires to customers and to distribute questionnaires directly to the organizations, businesses and individuals who were doing procedures through Lao Cai. Organizations, businesses and individuals completed and sent results via email and by post office. Data collection lasted from early Februar>' to mid-April 2013. 49 completed questionnaires and 41 direct interview cards were collected. The research results are analyzed based on the data of 49 clients and 41 direct interviews. Results and conclusions: - The development of the cross border economic corporation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China): Organizations, finns and individual considered the trans-Asia route going through Lao Cai, Hanoi, Hai Phong; adjusted policies; the area for doing procedures as three elements in the order of priority which Lao Cai have already met the demands. However, Lao Cai have not fulfilled yet for the reason that investment for building the infrastructure, harbors, warehouses, the areas for land, railway, waterway and airu^ay (in the future) transportation procedures is needed first. Moreover, the biggest difficulty is that the policy of two countries did not agree much, so that there are a lot of differences. Especially, the infrastructure and machiner\^ have not been invested synchronously and stably yet. The most important factor for the model's success to ensure the symmetry of preparation and expenses as well as ensure the benefits of two parties is the interests of the government, ministries, Lao Cai province and China go\*emment. - Building up the Customs model and laws: We are not able to confirm that the Customs model with policies adjusting goods, people, devices which is almost similar to the eate economic zone and not similar to the gate economic zone is equal. - The Customs procedures: + Customs procedures of two countries for people and commodities when going in/out the administrative and service area are different from each other but are managed by the Transnational Board. + The tax exemption for goods going through the zone which is lower than 500.000 VND/ turn/ person/ day is too little, not suitable and is suggested to increase. + Customs procedures for commodities when going in/out the Management area to import or export are needed to be stricter for some firnis and passengers take advantages of open policies to smuggle or evade tax, which lead to difficulties in control and management. + Almost people saw that if they did not have to pay the unofficial expense when doing the procedures, it would be the most attractive way of the Zone and be a way to enhance the Customs management effects. - Evaluations of the infrastructure and current conditions of the Customs The legal basis, the infrastructure, current conditions of the Customs were chosen in the order of priority which are mainly based on Customs law, 154 Decree with specific adjustments for the cross-border economic corporation zone in the customs field. Especially in two recent years, finns ha\e been seriously affected by the economic crisis, so the most important factor is that innovations in the procedure process and incentive policies to attract enterprises to recover and develop. - Effects of the Customs model in the future: Three most satisfied factors are open policies, simple customs procedures and not too high costs for harbors and warehouses. Besides, when legal documents, the infrastructure, the customs personnel are not synchronous and stable, we need to propagate and educate customs laws for firms, organizations and individuals. In the future. 71.43% of the inter\'iewed people will definitely take part in import and export activities here and intend to introduce other to do so. - Suggestions to improve the quality of the custom procedure process and procedures of the cross-border economic corporation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yiinnan - China): The Customs need to arrange the qualified personnel, adequate infrastructure to attract organizations, fimis and individuals out of the province to take part in the zone, avoiding the situation that it is necessary to supplement anything creating troubles for firms. Especially, the unofficial expenses are not needed to pay at any station. The govemment, relevant ministries and departments issue legal documents for the Customs field which have to be synchronous in order to not be suffered by finns. In addition, there must be the aood coordination between the Customs, the border suards. the transportation department, the medical and phytosanitar\\ etc. Three solutions which are suggested most are the unification of legal documents by the government; improvement in the customs procedures as well as machinery serving customs operations; and the synchronous, modem and professional personnel. Suggestions for deeper researches: To perform well its functions in tenns of management in the Customs field, the Customs model in the cross-border economic corporation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China) need great efforts of the Customs itself, especially the Lao Cai Customs if they are pointed to do this task. Whether the Customs model is successful or not mainly depends on the policies and laws of the govemment, legal documents of relevant ministries and departments, and guidance of General Department of Customs, the facilitation of Lao Cai province, the coordination of related branches in the Zone as well as organizations, the firm community, individuals joining in import and export activities here. If the authors or you are planning to do research about this topic, we really want to those suggested problems will be found out more clearly and accurately within a larger scale because the thesis's sample are only 49 questionnaires and 41 direct interview cards. Contributions of the thesis: The analyzed results show that the thesis describes the feasibility of the Customs model in the cross-border economic corporation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China) through the primary and secondar)^ database. Simultaneously, it also shows difficulties which need to be solved for the zone to perform well when the zone is run. Regarding the research purposes and the analysis of collected data by questionnaires and direct inteiA'iews, the thesis gave answer for the research questions about the cross-border economic corporation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China) and the customs model in the future. Therefore, this will be a usefijl document for policy makers about finance, economy in the customs field as well as the customs itself and the firm community, individuals when issuing policies, managing or joining activities in the zone. If Kim Thanh Customs Department is separately established in order to manage the customs field in the cross-border economic corporation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China), it is necessary to implement well and synchronously such solutions that the authors suggested to facilitate trade of goods, the development of firms and improve Lao Cai customs into a new level in the future. Key words: In this thesis, the writers used many repeated words and phrases. "Result" is repeated 36 times, "model" is repeated 97 times, "customs" is repeated 239 times, "operation" is repeated 65 times, and "synchronous" is repeated 30 times, "efficiency" is repeated 21 times. The authors also see that these are research purposes, suggestions of solution package for the most "synchronous and effective operation of the customs model"./. TABLE OF CONTENTS ACKNOWLEDGEMENTS TABLE OF CONTENTS ABBREVIATIONS LIST OF TABLES I. INTRODUCTION j 1.1. Situation I 1.2 Reseach questions 4 1.3. Research objectives 5 1.4. Reseach tasks 5 1.5. Scientific understandings and applications 6 1.6. Subjects and the scope of work 6 1.7. Researching results of the thesis 7 II. FRAME OF REFERENCE 8 2.1.Research on the model of cross border economic coopertion 8 2.1.1. Definitions 8 2.1.2. Characteristics 10 2.1.3 Classification of trans-boundary economic cooperation zone 10 2.1.4. Development model 11 2.1.5.Institutional Policy 13 2.1.6. Types of cross border economic cooperation models 14 2.1.7. Cross border economic cooperation on some regions and countries in the world 17 2.1.8. Overview on the trans-boundar}^ economic cooperation zone between Beishan (Yunna - China) and Kim Thanh (Lao Cai - Vietnam) 19 2.2. Researches on customs model 21 2.3. The problem posed for customs cooperation in the cross border economic cooperation zone 23 III. RESEARCH METHODOLODY 25 3.1 Methodolody 25 3.2. Methods of implementing data collection 26 IV. COLLECTED PRACTICAL RESLILT 27 4.1. Description of sample 27 4.2. Collected data 28 V. DATA ANALYSIS 52 5.1. The development of Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China) cross border economic cooperation zone 52 5.2. Building customs model and adjusted documents 5.3. About customs procedure 53 53 5.4. Evaluadon on infrastructure and current situation of customs 53 5.5. Efficiency of future customs model 54 5.6. Suggestion to improve the quality of customs procedures in the Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunna - China) cross border economic cooperation zone 56 VI. COMMENTS AND CONCLUSION 57 6.1. Measures to improve customs model for the development of across border economic cooperation zone- Kim Thanh (Lao Cai-Vietnam) and Beishan (Yunnan -China) 57 6.1.1. For the State, the relevant ministries and agencies. People's Committee of Lao Cai 57 6.1.2. For customs agencies 59 6.1.3. For interdisciplinary coordination 61 6.1.4. For the organizations, business community and individuals 61 6.2. Recommendation for further studies REFERENCES APPENDIX I APPENDIX II 62 ABBREVIATIONS Words In English In Vietnamese j; WTO World Trade Organization ^ — ^ — — - To chuc thirong mai th8 gioi wco World Customs Organization To chOrc Hai quan th8 gioi GMS Greater Mekong Subregion Tieu vung Song Mekong Mo rong USD United States Dollar ASEAN Association of Southeast Asian Hiep hoi cac quoc gia Dong do la my Nations SPSS Dong Nam A Statistical Package for the Mot chuorng trinh may Social Sciences tinh phuc vu cong tac thong ke Khu Cross border economic zone HTKTXBG Khu hap tac kinh t^ xuyen bien giai UBND Office of the Commitee Uy ban nhan dan XNK hnport and export Xuat nhap khau XNC Exit & Entrv Xuat nhap canh DN Business Doanh nghiep TQ China Trung Quoc HQ Custom Hai quan KHKT Technology and Science Khoa hoc ky thuat ADB The Asian Development Bank Ngan hang Phat trien chau A CBTA Cross border agreement transportation Hiep dinh van tai xuyen bien giai ACMECS Ayeyawady-Chao SAP Stabilisation / Phraya- Chien luac hop tac kinh Mekong Economic Cooperation te Ayeyawady-Chao Strategy Phraya-Mekong and Association Process SAAs The stabilisation T Tien trinh hop tic va on dinh and Thoa thuan hop tac \a on association agreements dinh EU European Union Lien minh Chau Au RCC Regional Cooperation Council Hoi dong hop tac vung mien , LIST OF TABLES Table 3.1: Six elements of cross border economic cooperation zones 12 Table 3.2. Sysmetric Economic Copperation Model 15 Table 3.3. Linkage model 1^ Table 3.3: Hekou cross border economic cooperation site plan 20 Table 4.1: Characteristics of the sample 27 Table 4.2: The three most thing in the order of priority 29 Table 4.3: The most important factor for succeed of the Zone 29 Table 4.4 The biggest differences between the Zone and the Zone of Pingxiang-Dong Dang 30 Table 4.5 the biggest differences between between the zone Kim ThanhBeishan and the zone Ha Tinh-Bolykhamxay 31 Table 4.6 Analyze the criteria of full convergence of the respondent 31 Table 4.7 Reasons for postponement to operate the zone 32 Table 4.8 Policies in the customs 37 field Table 4.9: Customs procedure to the whole zone 37 Table 4.10: Appraise incentive polices about exemption 38 Table 4.11 Managing imported commodities and entrants to the countr}- 39 Table 4.12 Exploration of the unofficial expense 39 Table 4.13 Infrastructure and the legal basis of the customs in the order of priority 42 Table 4.14 Evaluation of the need to refomi of the customs 43 Table 4.15 Customers' satisfaction 43 Table 4.16 The model of Customs 44 Table 4.17 The intention of customers to join in operation 44 Table 4.18 Intention to introduce friends, family to take part in when the zone go into operation 45 Table 4.19 The first task to do of the Customs 47 Table 4.20: Tasks must be done first by the Customs 48 Table 4.21 solutions in the order of priority 50 L INTRODUCTION l.L Situation Economic cooperafion among the countries sharing national borders has been a loosing knot in term of both economic development over borders and crossing-border transportation for years. Economic develoment along border areas should take theirs role as a critical instrument to call for a variet>- of investment in the neighborhood, increase the variet}^ of good and services; a open door to the outside world and a place from where national brandnames and images can easily be introduced and go international. The trend of economic cooperation is an important motivation for neighbors to open their markets. Therefore, beside normal import and export operations, it requires an economic cooperation zone where can be used for advertising national images, doing import-export business and meeting the needs of goods, services and so on. Due to the need of shifting economic structure to exploit each nation's advantages as well as minimizing the deficiency of goods, technologies and so that, it requires a place for international culture exchange as well as satisfying all needs above and even the need of the 3*^ nafion for trading. The establishment of economic cooperation areas is fonned based on objective requirements of manufacturing and domestic traffic. The economic cooperation zone becomes one of the important trend of the world economy today. The convenient development of the regional trade cooperation between ASEAN and China is a premise to develop innovative models and continue to keep this as a big step fonvard in area. For this reason, the establishment of the cross borders economic cooperation is in conformitN with actual needs. Furthermore, the global economic crisis will cause difficulties in future with unpredictable factors: hence the economic and political cooperation between neighbors is quite necessar\-. Special economic areas of ''one area two countries, tight cooperation" are becoming a new approach of Vietnam to achieve its target of expanding and strenghtenning economic tights with its neighbors inclusive of China. It is obviously critical to build up one or more trans-bordered economic areas to attract more investments and improve trade balance between Vietnam and China along North - South economic corrider and Greater Mekong Subregion. Vietnam shares border lines with three countries which ard People Republic of China, Lao People's Democratic Republic and Kingdom of . The total length of border line is 4610 km, in which 1406 kim with China, 2067 kim with Laos and 1137 with Cambodia. There are 19 international border gates, 6 international airport gate and 15 international marine gate, etc.^ Lao Cai is a mountainous province in the north and shares the border line with Ha Giang in the east, Son La and Lai Chau in the west; Yen Bai in the south and Yunnan (China) in the north in which the total length of border line is 203 km. Lao Cai has 27 ethnics in which Viet people account for 194,666 individuals, Hmong community account for 122,825 people, Tay ethnic has 82,516 ones and Dao people includes 72,543 people. Lao Cai is one of provinces which is continuously on the top of provincial competitive capacity index ranking in recent years. In 2011, this province ranks number 1 among other 64 provinces. Regarding to land resources. Lao Cai has 10 main group of land which could be divided into 30 types. These 10 groups are alluvial, marshy soil, black soil, red yellow soil. In terms of water resources, Lao Cai has dense river systems which are distributed fairly evenly over the province with two big rivers - Red and Chay River originated from China and thousands of other small rivers and streams. This is advantageous conditions for the development of small and medium hydropower factor\\ About forest resources, the wood area of Lao Cai is 278 907 ha which consists of 229,296.6 ha natural forest, 49,604 planted forest, account for 43,87% the whole natural area. Furthermore, Lao Cai's forest are ver>' rich in both quantity and species Source: http://bienQioilanhtho QOV vrWieft)ien9ioidatltenvletnam-nc-28bcc57e aspx of typical vegetation. There are 442 species of birds, mammals and reptiles, amphibians. About mineral resources, Lao Cai has found 150 mines with over 30 types of minerals, in w^hich some are largest in Vietnam and in the region such as Cam Duong apatite mine with reserves of 2.5 billion tons, Quy Xa iron mine - 124 million tons, Sin Quyen copper mine - 53 million tons. O Quy molybdenum -15.4 thousand tons. Lao Cai is one of the few mountainous province has a network of diverse transportation, including roads, rail and rivers. In the period of 2015 2020, it will construct Lao Cai aiport and Noi Bai - Lao Cai highway with the total length of 261 km, beginning at the intersection point of the Noi Bai - Ha Long Highway and National road 2, ending at the cut with Kunming - Hekou in Quang Kim Commune, Bat Xat Districh, Lao Cai province. Noi Bai - Lao Cai highway will go through 5 provinces and cities including Vinh Phuc, Phu TTio, Yen Bai, Lao Cai and Hanoi city. Regarding to tourism, Lao Cai is a mountainous province which still remain fresh and keep diverse environmental landscape. This is an important condition for the development of an ideal tourism points for local and international guests. Sapa town is one of 21 national tourist zone of \TM. Noticeably, total import and export value of Lao Cai increased over the years. Specifically, total exports and imports in the first 3 months of 2013 reached $ 72 million in which export revenue is USD 27.73 million (increase 230% comparing to 2012). import revenue is over USD 447.7 million. The main export commodities are agricultural products (coffee, cashew and rubber) and strip flooring, footwear, furniture ... Items mostly imported are coke coal, fertilizer, electricit\\ machiner\' ... Lao Cai has many main and side border gates such as Lao Cai, Muong Khuong, Bat Xat etc. and other many trail crossings. This is advantageous condition to fonri cross area economic cooperation zone to heighten the position of Lao Cai in providing transportation ser\'ices, facilitate and support the development of border trade, contribute to the development of the alobal supply chain. For the time being, a project of setting-up Kim Thanh and Beishan economic area is being analyzed and soon to be submitted; till then, this will become a fragment of an overall multi-angled colorful picture of VietnamChina prolonged economic relationship. Each and everv- step required to take carefully is expected to put such fragment into the right place to maximize its potentials and effectiveness. When our disadvantage is laying on the infrastructure system, focusing on highways and railways, transportation fees and consequently the number of tourists to Lao Cai are getting badly and visibly affected Besides, it will be export and import procedures in which mostly refers to customs responsibilities that help to unlock merchandising exchanges, speed up investment cooperation between two countries and widely open the door to the northern east of Lao Cai. It is high time and also challenging time for our customs industry to show its better support toward Vietnamese entrepreneurs to facilitate trade exchanges and simultaneously assure of its reasonable controls. As a result, I decided on choosing the topic "77?^ importance of Customs in the development of the cross border economic zone between Kim Thanh (Vietnam) and Beishan (Yunnan - China)" as a graduation assignment of my MA. L2 Reseach questions These are big questions for studying which are included to use some scientific methods to answer and not for the purpose of doing survey. Therefore, the purpose of the thesis is to answering the following questions: Question 1. The project of establishing trans-boundar> economic cooperation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China) is deploying to study its practicability. Furthermore, the survey team of Vietnam and China visited and surveyed actually in December 2 4 ^ 2012. In your opinion, what is the efficiency level of the model when being put into operation? What are advantages and drawbacks that the model might encounter? Question 2: As for the services t>pes within the Economic cooperation zone, which are the most appropriate methods of customs to control the situation of evading taxation, selling smuggled goods and trading forbidden goods especially? Question 3: In the cross border economic cooperation area, the inspection of imported goods section is the most important. In your opinion, what is the most appropriate form for customs to perform customs procedures and inspect commodities in order to facilitate the enterprises and decrease management burden for customs civil servant as well as mistakes? Question 4: What are expectations and desires of parties to the custom models in the cross border economic cooperation zone between Kim Thanh (Lao Cai - Vietnam) and Beishan (Yunnan - China) when being put into operation? L3. Research objectives The study objectives are to (1) systematically analyze and evaluate the relationship of trans-bordered economic areas between \Metnam and China; (2) understand and study customs models, its current status and its importance toward the economic development, applied for Kim Thanh and Beishan; and (3) identify advantages, disadvantages, opportunities and challenges we may encounter with the in-coming economic area. Finally, we are trjing to come up with promising recommendations to development directions of customs industry in Kim Thanh - Beishan economic area that hopefully work it out in very near future in an effective way.