1 INTRODUCTION The Need for Research The decisive factor in the economic development of the Central Coast is the availability of capital investment Securing support channels for the private sector is always a challenge This obstacle requires careful analysis and investigation so that positive and practicable solutions can be identified to maximise the growth of the private sector and to fulfil its potential for development With this in mind, the author selected the topic "Investment capital for private economic development in the Central Coast” Overview of research on private sector Many studies in the field of private sector have been conducted However, most of the studies have been conducted from the general perspective of the overall private sector areas throughout the country without considering the significance of private research investment in the private sector and, in particular, the needs of the private economic (PE) sector of the Central Coast (CC) So, a research project specifically focused on "Investment capital for private for economic development in the central coast" is considered to be necessary Research objectives of the project - To systematize and clarify the arguments for investment capital in PE development, - To assess the analysis of investment capital for PE development in the CC area in recent years yet to be fully realized The need for deeply invested capital is the decisive factor for economic development in general and in the private sector in particular -To offer recommendations for capital investment and other support solutions to private sector development in the Central Coast zone From the theory and practice of recent investment capital for private sector development in the Central Coast About research methods Threads will include using dialectical materialist methodology, research on the issues of development, analysis of specific historical examples and a comprehensive review of the organic relationships with each other Simultaneous threads will also use a statistical method such as testing, comparison and analysis to clarify the issues raised Combined with a direct survey of 305 enterprises in the CC area, the facility to verify the arguments and proposed solutions will be a core objective of the research On the subject and scope of the study  Subject of study:Research into the Investment in private sector development including economic forms: private enterprise, partnership companies, limited liability Companies (Ltd), Joint Stock Companies (JSC) (including state owned JSC minor proportion)  Scope of research:Space: including 14 coastal provinces along the CC Time: From 2005 to 2010  Scope of the study: The study of investment capital for PE sector development from 2005 to 2010 for different types of private firms Scientific and practical significance In terms of reasoning, the topics which have a practical new contribution to make are: Explanation and clarification of the concept of the private sector Factors affecting the investment of private capital for economic development Analysis and clarification of the concept of capital An estimate of the capital that the private sector needs to invest - A sample survey of 305 enterprises in the area CC to verify the theory and practice of capital investment - Identification of the direction of regional economic development, private sector development in the CC region in the years to come Demand forecasts for the development of private sector investment in the years to come - Provision of a system solution consisting of six recommendations for investment capital by the private sector for the future development of the CC region Structure of topics: Three topics for investigation and research Chapter The basic problems of the private sector Chapter Current investment by the private capital for economic development the CC Chapter Solutions and recommendations on investment of private capital for economic development the Central Coast Chapter BASIC PROBLEMS OF DEVELOPMENT CAPITAL INVESTMENT PRIVATE ECONOMY 1.1 PRIVATE ECONOMIC OVERVIEW 1.1.1 The concept of the private sector The private sector is understood to be all business establishments in the country which are not based on state ownership of the factors of the production process and operate on the principle of autonomy: their own money; business organizations; business owners and self-distributed financial results 1.1.2 Basic characteristics of the private sector First, the operation of the private sector is always associated with the interests of the individual and with a dynamic economic area which is sensitive, adapting quickly to market changes Second, the business activities of the regional private sector can sometimes be spontaneous, derived from immediate personal interests and not necessarily focused on sustainable development and any benefits to the wider community Third, most of the enterprises of the private sector have the ability to operate with lower capital accumulation and concentration 1.1.3 Relationship between the implementation of private sector development objectives with strategic goals in the socio-economic development of the economic zone An economic zone is a specific territorial economic department of the national economy It has specialized manufacturers closely associated with the development of synthetic Regional economic policy aims to achieve the following three objectives: - Growth targets - Objective stability - The income distribution objective and balanced development 1.1.4 The role of the private sector in the economy - Exploiting and mobilizing all social resources for development investment, - Making a positive contribution to the restructuring of the economy towards a more rational, efficient, modern system, - Promoting manufacturing development, contributing significantly towards national economic growth - Creating job opportunities, labor restructuring labor and development of human resources - Contributing to the expansion of external economic relations and attracting foreign investment 1.2 Investment of private capital for economic development 1.2.1 The concept of investment capital for private sector development - The concept of investment - The concept of investment and development - Capital investment for private sector development: Investment capital for private sector development can be provided from various sources including the Government and the people, the financial institutions, banks and other organizations and foreign invested capital provided specifically for private sector development 1.2.2 Contents of private economic development Investment in the economy Capital is defined by Thread: All resources are converted by money put to use in the process of investment in order to maintain existing resources and create greater potential for the successful operation of the enterprise, individual business and society as a whole The field of investment capital for private sector development - Invest in building infrastructure to create favorable conditions for private sector development -Investment in the establishment of new enterprises - Investment is used to replace existing equipment in order to maintain current operations or to modernize, increasing operational efficiency - To strengthen the consumption of products in the market in order to increase sales volumes, further confirming the company's position in the market -Investment to expand consumption in new markets -Investment in environmental protection and labor safety performance -Investment in scientific and technological innovation - Investment to improve the skills of the management of the business and of skilled workers who have an important role in determining the success or failure of the business Criteria evaluation system effective investment of private capital for economic development - The ICOR -The ratio of working capital for the first place -Return on capital investment - Return on total assets that are put into use for production and business activities called ROA (Return On Total Assets) - Efficient capital determines the ability to profit from every dollar of equity to be considered against the criteria ROE (Return On Common Equity) - The effect of the use of capital investment is calculated by the rotation of the entire capital 5 - Comparison of the time scales must show that the expected investment is recovered in a shorter period 1.2.3 These factors affect the investment of private capital for economic development - The role and policy orientation of the state for private sector development - The impact of inflation - The financial condition of the population - The ability to accumulate business so that they become self supporting and sustaining - Economic growth - Investment Environment 1.2.4 The relationship between investment and efficient use of capital, private investment in economic development - ICOR (Incremental Capital-Output Ratio) shown to increase the GDP needs to invest much The higher the ICOR, the lower the efficiency of investment, and vice versa - Efficiency investments not only affect economic growth in the number, in the case of growth with the same speed, but less investment capital makes ICOR lower, i.e improving the quality of growth This issue contains an increase of the process changes in manufacturing technology, process management, labor productivity If ICOR is declining, GDP grows every year providing a more efficient economy and vice versa 1.3 Experience investing private capital for economic development in the country, region and economic lessons for central coast 1.3.1 Experience investing private capital for economic development some countries with economies in transition - China's experience The private sector development policy in China is based on four main points: + Must be based on reasonable economic scale of production + The enterprises of private sector investment should be with the techniques and skills of modern management, improving product quality and quality management + The enterprise of the private economics sector should be flexible to suit the market, avoid duplication and excess + The State enterprises should play an important role in the economy, the development of these enterprises will lead to the growth of businesses in the private economics sector - Hungary Legal reform; capital investment; Technological and innovation; management assistance; lead to higher exports; - Experience Investing private capital for economic development of some countries South Korea: Has 51 financial Institutions providing capital and advice for start-up enterprises - Thailand: To promote investment in Thailand using supportive measures như: exemption, tax exemption and support investment in disadvantaged areas - Taiwan: Establish a monitoring agency, to help SMEs - Malaysia: Government support to the private sector through preferential loan program - Experience Investing private capital for economic development of the Mekong River Delta 1.3.2 Some lessons learned about the investment of private capital for economic development of countries and economic regions First, the role of government is very important in creating favorable conditions for private sector development Second, the governments of most countries have support policies, stimulating private sector development Third, the effective use of financial incentives, tax and other support measures Fourth, The effective use of the legal system, the macro-economic policies and measures to encourage cooperation among enterprises together Fifth, in order to create sustainable development, the State must develop a strategy of socio-economic master plan Conclusion Chapter In Chapter 1, the following main content subjects will be included: Focused analysis, interpretation and clarification of the basic theoretical issues about the private sector, the factors affecting investment capital for private sector development and the Important role of the private sector to the economy How to raise capital for investment and private sector development, private sector development investment areas today and the criteria for evaluating the effect of investment capital for private sector development 7 Analysis of the relationship the between the development objectives of the region with the aim of private sector development; relationship capital investment and private sector growth in the region as a theoretical basis for effective analysis and evaluation of investment capital for private sector development considered in chapter Through experience in investment capital for private sector development of a number of countries, particularly China and the Mekong Delta provinces, to draw lessons about investment capital for private sector development in the CC Chapter STATE CAPITAL INVESTMENT FOR PRIVATE ECONOMIC DEVELOPMENT OF THE CENTRAL COAST 2.1 GENERAL SITUATION, PRIVATE SECTOR ECONOMIC DEVELOPMENT IN THE CENTRAL COASTAL 2.1.1 Analysis of Strengths, Weaknesses, Opportunities and Threats of Private Sector Development on the Central Coast The advantage to private sector development for the Central Coast (Strengths - S) + S1 - favorable geographical position + S3 - high economic growth + S4 - Land also for industrial development + S5 - Labor abundant + S6 - Industry production and diversified business + S7 - commercial banks operating system in Central Coast are diverse and widespread - Weaknesses private sector development Central Coast (Weaknesses - W) W1 - nfrastructure is not yet complete, we can say it is still weak W2 - labor force have not been trained and is inexperienced W3 - People's potential in weak W4 - Technology and processing of agricultural, forestry and aquatic products and non-agricultural sectors of the undeveloped W5-credit capital shortage - The opportunities for private sector development the Central Coast (Opportunities – O) O1 - Sponsored by domestic and international organizations to build and develop rural infrastructure Central Coast is higher than other regions O2 - international economic integration 8 O3 - Workforce has high potential - The risk to private sector development Central Coast (Threats - T) T1 - Natural disasters occur frquently T2 - weak competition in attracting investment T3 - The challenge of integration T4 - floating market of agricultural products 2.1.2 The development of private economic central coast - Development trends in the amount - More diversified development trend of the industry structure - The increasing trend of the share capital in total social investment has not yet become apparent 2.2 State investment in private capital for economic development the CC 2.2.1 Status of investment capital for private sector development - The reality of the investment funds  Capital investment channeled through the State budget Through a survey of 305 enterprises in Central Coast support for policy interest rates, up to 88 businesses in the area surveyed (accounting for 28.8%) did not receive this support The reason: either these businesses not need loans, or not meet the conditions to borrowing Businesses need capital and loan eligible to receive this assistance, although not all businesses meet 100% of demand - Investment budget through tools tax exemption or reduction for businesses in accordance with the tax laws, the Law on Promotion of Domestic Investment  Capital investment through the credit channel Main channel to raise capital at present and certainly the long-term regional enterprises of private sector Central Coast is bank credit The commercial banks are expanding, and strong growth in the region Improvements in procedures to attract deposits, lending and expanded forms of mobilization have increased a step mobilization and supply of investment capital for economic development in the region.85.2% of private enterprises in the demand for loans in the future * Investment through medium and long-term ones: limited resources * Capital investment through non-formal credit channels - the underground market Actual survey of 305 businesses in Central Coast , there are 36 enterprises (11.8% of the sample) had loans on the underground market 9  Capital investment through financial leasing companies Only 15% of businesses use finance lease form, with capital raised through financial leasing accounted for about 28% of average annual capital needed  Investment funds through organizations supporting small and medium enterprises - Fund territorial credits: No activity in Central Coast - Investment capital through Small and Medium Enterprises Association: No activity - Investment Fund capital through the development of small and mediumsized enterprises: No activity - Policies, programs and other support ∗ APEC Financial Institutions ∗ The programs and policies of the State  Investment funds through other forms - Venture Capital Fund In Central Coast areas, activities of funds Central Coast not occurred Enterprises of regional private sector Central Coast absolutely no access to funds from the organization - Commercial Credit Enterprises of regional private sector Central Coast made Comercial Credit in business operations but not use the transfer tool  Investment from deposits of residents in the area 2.2.2 The reality of the investment sector of private enterprise economy the central coast - Invest in building infrastructure for private sector development the Central Coast Total capital investment in infrastructure development the Central Coast in period 2006 2010 is 527.968 trillion, accounting for 30.01% of total expenditure in the area However, the economic infrastructure, social Central Coast region lacking, weak, not synchronized, so the investment in many projects still patchwork To invest in the establishment of new enterprises For private sector investment in increased and more important position for the economic development of the region In recent years, capital investment next year are higher than last year and growing at a very high rate, an average of more than 20% In fact, small-scale private sector areas, the rate of investment in moderation, 10 the absolute number is increasing every year, but the total social capital tends to reduce the share of the economy - Investment in fixed assets and long-term financial investment of the enterprise The value of fixed assets and long-term financial investment the average of the first enterprise in 2000 was 0.862 billion / business (Average of the Central Coast 0.65 billion / business), the 2010 is 6.835 billion / business ( average of the Central Coast is 4.3283 billion / business) Thus, the Central Coast were fixed investment increased in 2010 compared with 2000 was 6.65 times Increased value of fixed assets is a powerful help private sector can survive and grow - Investment in engineering, technology According to a survey of 305 enterprises of private sector in the area Central Coast that there are 189 enterprises (62% of sample) said that they not need to change the technology or can not give the answer that they need to innovate technology? In the remaining 116 enterprises (38% of sample), only 18 companies (15% of 116 firms) have specific plans for technological innovation; remainder (85% of the 116 businesses ) will not know what technological innovation, technological innovation bring any results for now - Investment to expand market outlets to increase sales, increase profits facilitate business expansion and development in depth Most of the population in low-income areas CC, the consumption is not large If you compare the actual revenue share of the economic regions of the country, can be clearly seen that consumption of CC region is very low population In 2010, the turnover rate of CC from the lowest of 15.4% in the comparison areas Rate this with the Red River Delta is 23.18%, of the South East is 34.9% - Investment to improve management and skilled labor Currently, the use of private sector Enterprises often talented human resources in a "Do squeezed lemon peeled" Cohesion Between workers and business owners are slim Long-term training strategy for Businesses without employees Most use of the available labor market Need each other, cooperate, all need each other, broke up 2.2.3 Investment performance of the private sector Enterprises the CC 11 * ICOR Target: ICOR shown to table Private economics 1.Capital investment GDP(curent price) Capital/GDP (%) 2006 28.951,9 68.283 42,4 2007 41.354,6 71.646,91 57,72 2008 46.019,89 96.164,46 53,02 2009 52.577 99.164,46 53,02 2010 59.734 104.430 57,2 GDP (at constant 1994 prices) 29.711,33 33.211,32 41.902,3 41.902,3 47.098,18 GDP growth rate 10,34 11,78 12,15 12,5 12,4 ICOR 4,1 4,9 4,5 4,5 4,6 * Performance Indicator funded: From 2004 to 2010, capital efficiency, rose, particularly in 2008 was the Impact of the economic crisis, capital efficiency has decreased by 0.22 from 2007, 2009 and 2010, this ratio tends to increase again * Target after-tax rate of return on capital * 61/305 Enterprises (20% of sample) with margins of over 15%, * 76/305 Enterprises (24.9% of the sample) with margins of 10-15 * 75/305 Enterprises (24.5% of the sample) margins from 5-10% * 85/305 Enterprises (27.8% of the sample) with the profit rate under 5% * 7/305 Enterprises (2.3% of sample) loss in 2010 * Target for invested workplace Compared to the country, the investment of labor for one less than the national average is 0.52 [5] This fact reflects the level of technology and capital equipment investment by private sector Enterprises CENTRAL COAST area is too small 2.2.4 SPSS analysis sample for more information about business the private sector the central coast * - The relationship between the inputs to the business results of enterprises * Results of the study - For commercial enterprises, service Ln (y) = 0.620 + 0.198 Ln (X4) + 0.367 Ln (X3) Italian = e0, 620.X50, 198.X30.367 = 1.8589 X50, 1897.X30, 367 This model has R2 = 0, 697, standardized and R2 = 0, 685 - For manufacturing and construction enterprises Ln (Y) = 0.664 + 0.351 Ln (X1) + 0.471 Ln (X3) + 0.319 Ln (X6) 12 Y = e0, 664.X10, 351.X30, 471 X6 0.319 = 1.9425 X10, 351.X30, 471 X6, 0.319 This model has R2 = 0.654, standardized and R2 = 0.630 - For business services Y = 75.053 + 58.931 X2 + 0.665 X3 This model has R2 = 0.872, standardized and R2 = 0.860 2.2.4 General assessment of investment capital for private sector development The Central Coast The results achieved -Many investment funds involved - Regional private sector increase in the number of diverse and abundant - No increase in the number of private sector enterprises also rose to participate in the activities of economic and social life - Contribute positively to GDP and revenue - Contributing to economic restructuring towards industrialization and modernization - Improve internal capacity of the private sector -Mechanism, the State's policy increasingly complete, creating a well-ventilated, using flexible financial tools, suitable for each period, and open up channels of domestic and foreign capital ; support private sector-region development CC Fourth, the proportion of private sector business investment the continuous Central Coast increased and a much higher proportion of investment by SOEs 2.2.5 The limitations and the cause of investment restrictions on private capital for economic development the central coast - The limitations First, capital investment in CC area is still small Second, the weak force, corporate governance is not good; Third, the structure of capital investments in regional PE in CC is not really suitable for regional development planning Fourth, investment local budget still spreading form, not pay adequate attention the important factors affecting the development of the PE Fifth, spending for investment and development has not really pay attention to the development of science and technology in order to improve labor productivity Sixth, more training of human resources from the State and enterprises have not been focused on the current labor force can not meet the terms science and technology rapid development 13 Seventh, the efficiency of the private sector investment is low untapped economic potential of an area with a lot of potential, the strength of the sea and coastal areas The cause of the limitations Firstly, the private sector the Central Coast is still small, slow growth rate compared to other areas in the country Second, companies have to mobilize or non-official capital severely high interest rates affect the profitability and scalability of business of the enterprise Third, the structure of capital investments in regional private sector Central Coast is not really suitable for regional development planning Fourth, investment local budget still spreading form, not pay adequate attention to the important factors affecting the development of the private sector Fifth, spending for investment and development has not really pay attention to the development of science and technology in order to improve labor productivity Sixth, more training of human resources from state enterprises has not been focused on the current labor force can not meet the terms science and technology rapid development Seventh, the efficiency of the private sector investment is low untapped potential of a sector with great potential and advantages Eighth, partnership, association, support new types mainly "closed" in each of the economic sectors + About the State Budget First, the budget revenues of of CC provinces also limited, not yet able to meet the demand for private sector development Second, the structure still heavy on budget expenditures, not to pay due attention to the development investment Third, the budget has not been strictly controlled, many wasteful expenditures, less effective, partly because planning is not tight + For access to bank credit - The difficulty of the enterprise: - Difficulties on banks + The cause of limited access to capital from financial leasing companies + The cause of limited capital investment through institutions and policies to support SMEs * Capital investment through credit guarantee fund: * Cause limiting access to capital through programs and policies of the State 14 * Causes of economic cooperation not close Conclusion Chapter The threads in Chapter lead to the following conclusions: Situation analysis of regional private sector development in the Central Coast through which to see the development of the private sector in the region Situation Analysis of capital investment and the investment capital for private sector development Central Coast areas through investment sectors analyzed in chapter On that basis, to draw conclusions about the success of the investment activities as well as the limitations and the cause of the limitations reduce the efficiency of investment capital for private sector development the Central Coast This is the basis to propose appropriate solutions to increase the efficiency of capital investment in Chapter 3 Investment capital for private sector development in the Central Coast are still many difficulties to be solved First is the determination of the business itself on technological innovation investment, investment in training to improve skills of workers, computer science in building long-term business strategy; followed by support State to clear the capital, create an open business environment, support for education and training, business premises; scientific rationality and of the private sector development strategy makers economic regions Chapter INVESTMENT OPTIONS AND RECOMMENDATIONS FOR ECONOMIC DEVELOPMENT BY PRIVATE CAPITAL UN THE CENTRAL COASTAL 3.1 Forecast capital needs for private economic development the Central Coast 2020 3.1.1 Oriented investment of private capital for economic development in the Central Coast 2020 - Oriented economic development regions Central Coast 2020 - Oriented investment of private capital for economic development the Central Coast 2020 * Trends of development of Private economic to 2020 Firstly, the private economic sector has continued for a long-term and exists for the development of the construction and modernization of the country Second, the private sector will continue to grow both in numbers and nature ¬ 15 expanding its scale in the future Third, in a market economy Socialist Hu ¬ the private sector will be available in all areas, lines, areas appropriate to the development of the country Fourth, power burners ¬ the qualified workers are high ¬ expanding accordingly Fifth, more bankruptcy, dissolution, separation, merger, sale, transfer as ¬ will be common place in the years to come * The investment of private capital for economic development the Central Coast - Firstly, the investment capital for private sector development must come from the characteristics of the CENTRAL COAST, - Second, the investment capital for private sector development must be linked to the exploitation and efficient use of the potential strengths of the local economy -Third, the investment capital for private sector development in a sustainable manner in all three aspects: economic, social and environmental ¬ expand in the process of industrialization, modernization and international economic integration - Fourth, business investment and development teams are needed with basic business knowledge, strategic vision, dynamic, creative, conscious law-abiding, high sense of responsibility to the community - Fifth, focus and encourage investment in the development of a joint stock company, to create the basic premise and to the region's long-term private sector ¬ Step up expanded business scale reasonably consistent with the trend of economic development in the world - Sixth, investment organizations and private sector management innovation in Hu ¬ he has encouraged modernization through the standard specification small and medium enterprises by economic sector; 3.1.2 Forecast capital needs of the private sector development until 2020 - Investment objectives of private capital for economic development the Central Coast 2020 3.1.3 The overall objective 3.1.4 Specific objectives * Specific objectives for each sector * The specific objective quantitative - Regarding the number of enterprises With annual business growth averaged 22.3% in 2015 the CENTRAL COAST will have 18,121 now, by 2020 there will be 40 540 enterprises 16 - The value of GDP GDP of CC 2015 is the 428,154.4 trillion and by 2020, 689,547 trillion - Average revenue in one business period 2011-2015 is the growth rate 9% is 12253.9 VND and time period 2016-2020 is 13479.3 VND 3.1.5 Forecast capital investment for private economic development the Central Coast 2020 * The specific capital mobilization - The sources of the equity capital of the enterprise - Capital stock issued - Additional capital from the establishment of new enterprises and the population mobilized in people - Capital support from government programs - Loans from financial intermediaries 3.2 CAPITAL INVESTMENT SOLUTIONS FOR ECONOMIC DEVELOPMENT PRIVATE CENTRAL COASTAL 3.2.1 Solution from the capital investment - Solution investment from the equity of the enterprise - First of all, the application of measures to increase the availability of equity capital Second, pay attention to the exploration, analysis, selection of plans to go to the investment decision Third, enterprises should spend capital for investment in technology, application of modern techniques in production, improve the technical content and quality in the product - Fourth, extending the company's shares to raise capital with more investors, creating the potential for initial and long-term capital - Solutions to improve internal resources of the private sector in the area for easy access to formal capital from credit institutions, international financial institutions - Firstly, the research and make appropriate business strategy for each period and in accordance with market conditions in the country as well as abroad - Second, the focus on innovative equipment and technology in the enterprise - Third, to improve human resources in companies including contingent labor and enterprise management - Fourthly, regular monitoring and updating information on the programs and strategies to support the preferential capital for your business type 17 - Fifth, the solution for the accounting methods and financial transparency - Sixth, build business ethics of enterprise and improve the quality of business owners - Seventh, increase the competitiveness of products in the market - Eighth, to strengthen the risk management of the enterprise - External capital investment solution * Socialization of investment - For capital from the State budget, to focus on key projects and complete and finish before continuing investment in new projects Actively exploring central capital investment in the national key projects in the provinces in the region between now and 2020 - Credit funds, including the State's preferential credit from ODA funds to support the development of the province, the credit institutions in the area are the most important sources - Capital investment in foreign countries and localities have set out the mechanisms and preferential investment policies together with management regulations should be willing to cooperate with investors willing and vice versa * Solution disclosure of bank credit Requires the efforts of businesses to improve internal and banks also need to be more open mechanism for enterprises to gain easier access * Solution from capital investment programs of the State - Capital investment solution packages support of the State: Need information widely and promptly to business - Solution funded through the form of credit guarantees: First, establishment of credit guarantee associations to guide enterprises to set up projects and guarantee business loan when needed Second, object push credit guarantee for every business sector in economy Third, additional mechanisms and guide the identification and setting up appropriate risk reserve fund businesses not have the ability to repay Fourth, there should be specific provisions on the loan interest rate for the loan which is guaranteed by credit guarantee - Fifth, need timely information strategic orientation to support businesses in the building orientation and development plan * The solutions capital investment from the State's program 18 - Capital investment solution package from the support of the State - Solution funded through other forms of credit guarantee 3.2.2 Investment solutions to build infrastructure - Invest in key projects, focus on the works to bring the socio-economic efficiency - Combined State and local people work together In some localities there were some effective models: a combination of the state capital, a capital management and the local part of the capital and labor of the people, of the business 3.2.3 Investment solutions to support technology Fund have determined to support the development of science and technology in operation in practice For part of the expenses of the Fund to finance research projects of technological innovation, transforming the results into technology products Because of limited financial resources, to identify selective support; emphasis on focusing on projects in the priority areas of the country in the coming period, with specific address to use, able to be 3.2.4 Investment policy to support human resource development - The state should encourage and support organizations and individuals to open the non-public vocational training institutions - Development of the State's vocational training centers especially in rural and remote areas and to focus on efficiency Open additional training courses, improve understanding of the law, professional and business administration for business owners regardless of economic sectors - To enhance the close relationship between enterprises and vocational training institutions in each province and region, through the labor supply contract and plans to study at school and practice in the business 3.2.5 Expand investment solutions - Innovative technologies for the production of consumer product standard day Nagy requirements as high - Elimination of the "clues" Export to a number of goods, enabling SMEs to be more active in looking for export partners - Continue to narrow the goods banned from export, especially export conditions -Establishment of export credit fund to support SMEs involved in exporting - Establishment of export insurance system aimed at limiting the risks associated with export activities - Reform of customs procedures 19 3.2.6 Other support measures * There must be policies to create a favorable environment for the development of small and medium businesses First, create and establish a legal framework to encourage the development of small and medium enterprises (mainly enterprises in the private sector) Second, promulgate, supplement and modify the policies and regulations related to small and medium enterprises Third, issue the proper law for small and medium businesses * PAR, improve the state management apparatus The loosening of regulations established businesses not only "untied" for many investors, but also effectively support the process of administrative reform, improving the business environment in Vietnam * Provide information Establishment of a data bank for SMEs, market, technology, institutions to give or sell to businesses at a reasonable price - Complete system policies and mechanisms to support- Land policy + Research amend the current regulations are not appropriate, especially the issue of allocation of land, the land use rights + Leasing, bidding the production base dissolved + Increases duration and use tax exemption or reduction for the capital put in the open land, take advantage of excess land, ponds, swamps, etc to put into production + Simplify the procedures for land lease and the legal transfer of land use rights, encourage efficient land use higher socio-economic + Towards allowing SMEs in the private sector to enjoy the benefits of land use as the SEs + Establish industrial parks in the region to attract domestic and foreign investors - Tax policy + Simplify the tax system + Need innovation by expanding the object is to tax incentives, increase the level of tax incentives - The State shall encourage private sector investment in the industry to promote economic development in the direction of industrialization and modernization * Set the private sector into a worthy and respected place in society 20 * Tech Support Policy * Policy Loan to the enterprises of the private sector area * Enhance the role of organizations and business associations * Group support private sector solutions to international economic integration - Assessment, positioning Vietnamese enterprises are ranked in the global value chain to develop investment strategies - Develop strategic business development in the spirit of of thinking of the global market, integration and sustainable development - Building brand value for the enterprises of the private sector in the central coast region in terms of international economic integration 3.3 A number of recommendations 3.3.1 For the Government - To promote all industries, all levels, all people to see the importance of private sector development in the process of industrialization and modernization of the country, in the construction of economic development, political stability, social at this time as well as in the future - Government must act as a catalyst to encourage and promote private sector development Noting that the Government support, solve the initial financial difficulty, the business environment business rather than subsidies, subsidized as a time for SAV - The policy support for private sector capital to be widely deployed on the mass scale, providing good information to the policy to each business 3.3.2 For governments at all levels - Local authorities have an important role in the deployment and operation of the policies of the Party and State's proposed regulations consistent with local practices to promote, stimulate private sector development - Local authorities in the region to build the province's economic development strategy also relies on general strategic economic areas, to avoid unnecessary competition, can hinder private sector development of the region 3.3.3 For business associations Need for the training, knowledge and skills to the level of business management on par with the requirements of society Formed business team to meet the requirements of scientific and technological innovation, the fierce competition in the market Ensure production and business activities of enterprises 21 of private sector the Central Coast effectively and bring prosperity of the private sector, bringing wealth to the country and increase national financial potential Conclusions Chapter Chapter focuses on the following: - Provide orientation, major objectives and expected capital requirements for investment in private sector development Central Coast to time - On the basis of the current status of investment capital for private sector development the Central Coast , successes, limitations and causes of restrictions on capital investment combined with the region's economic development strategy Central Coast the author gave a systems solution for the time to promote and revive an economic area with great potential but has not been thoroughly exploited The solution can be carried out immediately, there are a number of solutions needed to use specific route gradually - To implement effective solutions to the attention of the Government, a number of remove the constraints on the administrative procedures of the business, care budget allocated to investment in infrastructure development, investment promotion, support of science and technology for enterprises The author hopes, capital investment solutions to private sector development area Central Coast has practical significance to regional private sector development in the Central Coast to keep up with the major economic regions in the country and can reach beyond national boundaries CONCLUSION Devoted to the development of the private sector, the project " Capital Investment for Private Economic Development in the Central Coast," contributed the concept of promotion of regional private sector development in the Central Coast area The Project has addressed the following issues: Threads of research have clarified the basic theoretical issues about the private sector, the factors affecting investment capital for private sector development and the important role of the private sector for the economy On the basis of these, the project has pointed out the need to private sector development in Vietnam Indicated the source of investment capital for private sector development, private sector development investment areas today and the criteria for evaluating the effectiveness of investment capital for private sector development 22 Analysis of the relationship between the development objectives of the region with the goal of private sector development; relationship capital investment and private sector growth in the region as a theoretical basis for analysis and evaluation of effective investment capital for private sector development Through experience of investment capital for private sector development in a number of countries, particularly China and the Mekong Delta provinces, to draw lessons about investment capital for private sector development in the Central Coast Analyze and assess the current status of the investment and the investment capital for private sector development the Central Coast, combined with investment capital for private sector development experience of other countries and economic regions On that basis, to draw conclusions about the success of the investment activities as well as the limitations and the cause of the limitations which reduce the efficiency of investment capital for private sector development the Central Coast Raised awareness and orientation, established key objectives and established the expected capital requirements for investment in private sector development Central Coast to the present time Offer a systems solution for the present time to promote and revive an economic area with great potential which has not been thoroughly exploited With seven (7) basic aspects, which have been mentioned on this subject, the author hopes to contribute a small part in encouraging capital investment solutions to promote more private sector development of the Central Coast towards a developed region in the future However, regional private sector development of the Central Coast should have many solutions in terms of economic, political, social consensus of all levels, sectors and masses Although the author has tried to provide a comprehensive review of relevant topics, there are some inevitable shortcomings The author would like to receive the considered contributions of scientists and colleagues to improve further research into this area of study and to identify the next research steps [...]... RECOMMENDATIONS FOR ECONOMIC DEVELOPMENT BY PRIVATE CAPITAL UN THE CENTRAL COASTAL 3.1 Forecast capital needs for private economic development the Central Coast 2020 3.1.1 Oriented investment of private capital for economic development in the Central Coast 2020 - Oriented economic development regions Central Coast 2020 - Oriented investment of private capital for economic development the Central Coast 2020... capital for private sector development and the important role of the private sector for the economy On the basis of these, the project has pointed out the need to private sector development in Vietnam 2 Indicated the source of investment capital for private sector development, private sector development investment areas today and the criteria for evaluating the effectiveness of investment capital for. .. sector development in a number of countries, particularly China and the Mekong Delta provinces, to draw lessons about investment capital for private sector development in the Central Coast 5 Analyze and assess the current status of the investment and the investment capital for private sector development the Central Coast, combined with investment capital for private sector development experience of other... Devoted to the development of the private sector, the project " Capital Investment for Private Economic Development in the Central Coast, " contributed the concept of promotion of regional private sector development in the Central Coast area The Project has addressed the following issues: 1 Threads of research have clarified the basic theoretical issues about the private sector, the factors affecting investment. .. domestic and foreign capital ; support private sector-region development CC Fourth, the proportion of private sector business investment the continuous Central Coast increased and a much higher proportion of investment by SOEs 2.2.5 The limitations and the cause of investment restrictions on private capital for economic development the central coast - The limitations First, capital investment in CC area... limitations and the cause of the limitations reduce the efficiency of investment capital for private sector development the Central Coast This is the basis to propose appropriate solutions to increase the efficiency of capital investment in Chapter 3 3 Investment capital for private sector development in the Central Coast are still many difficulties to be solved First is the determination of the business itself... regional private sector development in the Central Coast through which to see the development of the private sector in the region 2 Situation Analysis of capital investment and the investment capital for private sector development Central Coast areas through investment sectors analyzed in chapter 1 On that basis, to draw conclusions about the success of the investment activities as well as the limitations... following: - Provide orientation, major objectives and expected capital requirements for investment in private sector development Central Coast to time - On the basis of the current status of investment capital for private sector development the Central Coast , successes, limitations and causes of restrictions on capital investment combined with the region's economic development strategy Central Coast the. .. capital investment solution * Socialization of investment - For capital from the State budget, to focus on key projects and complete and finish before continuing investment in new projects Actively exploring central capital investment in the national key projects in the provinces in the region between now and 2020 - Credit funds, including the State's preferential credit from ODA funds to support the. .. enterprises are ranked in the global value chain to develop investment strategies - Develop strategic business development in the spirit of of thinking of the global market, integration and sustainable development - Building brand value for the enterprises of the private sector in the central coast region in terms of international economic integration 3.3 A number of recommendations 3.3.1 For the Government ... economy the central coast - Invest in building infrastructure for private sector development the Central Coast Total capital investment in infrastructure development the Central Coast in period... in the Central Coast Analyze and assess the current status of the investment and the investment capital for private sector development the Central Coast, combined with investment capital for private. .. Forecast capital needs for private economic development the Central Coast 2020 3.1.1 Oriented investment of private capital for economic development in the Central Coast 2020 - Oriented economic development