State administration on incomings from exploitation of road works in Vietnam

Nội dung text: State administration on incomings from exploitation of road works in Vietnam

1. MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF TRANSPORT AND COMMUNICATIONS HOANG NGOC SON STATE ADMINISTRATION ON INCOMINGS FROM EXPLOITATION OF ROAD WORKS IN VIETNAM Major: Construction administration Code: 9.58.03.02 SUMMARY OF DOCTORAL THESIS IN ECONOMICS HANOI - 2020
2. The project is completed at: University of Transport and Communications Scientific instructor 1: Dr. Nguyen Quynh Sang TS. Nguyễn Quỳnh Sang S. Scientific instructor 2: Assoc.Prof.Dr. Vu Trong Tich P PGS.TS. Vũ Trọng Tích GS.TS. Vũ Trọng Tích Reviewer 1: Reviewer 2: Reviewer 3: The thesis is going to be defended to Examination Committee of University of Transport and Communications at: At date month year It is available to find the thesis at the library: - Library of University of Transport and Communications; - National Library.
3. 1 INTRODUCTION 1. Reason for choosing this topic System of road works is critical in the national system of transport, which plays an important role in the socio-economic development, contributes to guarantee of national defense and security, and improves people‘s lives. Therefore, it is necessary to put investment in development as a priority. Recognizing the important role mentioned above, for many years, the State has used a relatively large amount of budget to make investment in road transport infrastructure. Since 2013, the Fund of Road Maintenance was established and put into operation, starting to collect tolls based on types of vehicle instead of toll collection through toll plaza to pay the State budget. Thus, in addition to annual state budget, the road sector now has an additional channel to mobilize stable capital for maintenance. The investment in new construction and maintenance of road traffic infrastructure requires an extremely large budget, and is difficult or take a long time for capital recovery. In the context of limited state budget resources and increasingly less official development assistance, the incomings from exploitation of road works is now an important source for reinvestment in transport infrastructure. The state administration on incomings from exploitation of road works is very vital. These incomings contribute to increase of annual state budget for allocating to investment in road works, thereby the quality of maintenance also gets better. In recent years, the State has issued many policies and regulations to generate incomings from exploitation of road works, such as: incomings from types of vehicle, through fuel selling prices, or direct collection from vehicles, etc. Recently, the State has made a lot of innovations in exploitation of road infrastructure works towards attracting the private sectors, such as: Selling the right to collect tolls, leasing the right to exploit, transferring road transport infrastructure assets and exploiting the fund of land located on both sides of the road, which has encouraged private investors to pay more attention to road infrastructure, thereby generating capital to serve maintenance and investment in road infrastructure development, and promoting socio-economic development. However, efficiency of road transport infrastructure exploitation is not commensurate with scale of existing assets; some localities has not been actually close in the course of implementation and direction and delayed in organization, leading to the ineffective exploitation of financial resources from road transport infrastructure; The new toll collection applied to national highways has a high traffic volume of vehicles; The capital sources from private economic sectors have not been yet attracted much. There are many causes leading to shortcomings and limitations mentioned above, including the state administration on incomings from road transport infrastructure exploitation, such as: law system on incomings from road transport infrastructure exploitation; apparatus of road transport infrastructure asset management from the central to local levels, especially at the district and communal levels; good organization of direction and implementation at the central and local levels; decentralization of authority and responsibility for relevant agencies, organizations and units; propaganda, dissemination and training on law associated with summarizing, preliminarily assessing the situation of the incomings from road transport infrastructure exploitation, and so on. For the above reasons, the author decides to choose the topic: “State administration on incomings from exploitation of road works in Vietnam” as a research topic of the doctoral thesis in major of Construction Administration. 2. Research objective The research purpose of the thesis topic is to propose a number of solutions on the scientific and practical basis for aim of improving the State administration on incomings from the exploitation of road works in Vietnam. For accomplishment of purpose mentioned above, the thesis needs to achieve the following specific objectives:
4. 2 First of all, to systematize and clarify the theoretical and practical basis of the State administration on incomings from exploitation of road works in case of presence of new incomings with innovation in administration technology and increasingly-developed and modern road network. Secondly, to analyze, evaluate objectively and scientifically current situation of the state administration on incomings from exploitation of road works in recent period, thereby pointing out the shortcomings, limitations and their causes for the state administration on incomings from exploitation of road works. Thirdly, to suggest a number of solutions to make the state administration on incomings from exploitation of road works in Vietnam better. 3. Research object and scope - Research object Research object of the thesis is the state administration on incomings from exploitation of road works. - Research scope + Content scope: Research on incomings and state administration on incomings at the central and local levels for exploitation of road works, in which, focus on researching in-depth issues: Formation and issuance of regimes and policies on collection; Organization of collection appratus; Management of collection process; Inspection, examination and supervision of collection process. + Time scope: The research project on the state administration on incomings from exploitation of road works in the period from 2008 to 2019 and solution orientations until 2030. + Space scope: The whole system of road transport works in Vietnam. 4. Scientific and practical significance of the thesis Scientific significance: is reflected in systematization and clarification of the theoretical and practical basis for the State administration on incomings from exploitation of road works. A scientific assessment on current situation and recommendations to make the State administration on incomings from road works in Vietnam. Practical significance: The thesis has analyzed and evaluated the current situation of the state administration on incomings from exploitation of road works in Vietnam; pointed out the shortcomings, limitations and their causes. On that basis, it proposes a number of feasible solutions in line with reality for purpose of assisting agencies that manage incomings from exploitation of road works in Vietnam to apply them flexibly in practical conditions, thereby achieving better efficiency for incomings from exploitation of road works in Vietnam. 5. Title and structure of the thesis Title of the thesis: “State administration on incomings from exploitation of road works in Vietnam” In addition to the introduction, conclusion, recommendations, references and appendices, the thesis’s content consists of 4 chapters: Chapter 1: Overview of works related to thesis topic and research method. Chapter 2: Theoretical and practical basis of state administration on incomings from exploitation of road works. Chapter 3: Current situation of the state administration on incomings from exploitation of road works in Vietnam. Chapter 4: Solutions to improve the state administration on incomings from exploitation of road works in Vietnam. CHAPTER 1: OVERVIEW OF WORKS RELATED TO THESIS TOPIC AND RESEARCH METHOD 1.1. Overview of research works related to the thesis topic
5. 3 1.1.1. Overview of national studies 1.1.1.1. The research works on incomings from exploitation of road works The doctoral thesis of “ Solutions to mobilize and use investment capital for road transport infrastructure development in Vietnam ” by author Pham Van Lien (2005), gives solutions of capital mobilization that mainly focus on sustainability, comprehensive exploitation of capital sources, and gradual reduction of State subsidies. The doctoral thesis: “ Research on incomings from road users in Vietnam” by Le Van Dung (2011) outlines a number of issues on public sector, proposes 3 new sources of incomings, namely, axle load charges, incomings from road infrastructure users, and those from indirect road users. The doctoral thesis in economics with topic of “State administration of toll collection and use in Vietnam” by Phan Huy Le at National Economics University (2010) proposes a number of solutions and recommendations, conditions for implementation to state administration agencies in order to improve the state administration on road toll collection and use in Vietnam in the direction of state administration for public services. The study by Vu Anh Tuan posted in the journal of the Japan Research Center for Transport Policy (2012) on “How to collect on-the-road charges on the right basis of nature and efficiency” assumes that registration fees and vehicle using charges will be policy instruments to regulate fixed endogenous fees. The scientific research topic of “Completion of bridege management and exploitation work” by Dang Thi Xuan Mai at University of Transport and Communications (2012). The topic generalizes the technical and economic nature of bridge management and exploitation work, analyzes the current situation of bridge management and exploitation work in terms of macro management of the State in the investigation of documents in this field. The scientific research topic of “Research on method of analyzing bridge works exploitation” by Dang Thi Xuan Mai (2009). The topic generalizes the content of traffic works management and exploitation based on 6 criteria: Management of road and bridge toll collection; Public administration of bridges; Traffic management; repairs and maintenance management; Information management, supervision and control; Management and development of road and bridge network businesss. The doctoral thesis of “Research on solutions to mobilize and use capital for road maintenance” by author Nguyen Thi Tuyet Dung at University of Transport and Communications (2018) develops an order and criteria for the evaluation of capital mobilization and method of determining capital required for road maintenance; identifies and evaluates factors affecting capital mobilization and those affecting the efficient use of road maintenance capital. The thesis proposes 2 groups of solutions for mobilizing and using capital for road maintenance. Author Pham Thi Tuyet with the article of “Management and exploitation of road transport infrastructure assets: Result and mission” posted in the Journal of Finance (April 2019) points out the innovations and limitations in the mechanism of managing and exploiting resources from road transport infrastructure. On that basis, the author raises missions to be performed in the coming time such as completing law system on management, use and exploitation of road transport infrastructure; boosting attraction of all economic sectors to participate in the development of road transport infrastructure, mobilizing all resources possible through exploitation methods. The doctoral thesis of “Research on perfecting management of highways construction investment and exploitation in Vietnam” by author Nguyen Phuong Cham (2018). According to investor’s perspective, the thesis has established an econometric model that shows the effects of factors on the satisfaction of highway users as a basis for proposing solutions towards perfecting effective management and exploitation of highways in line with the actual conditions of Vietnam. Author Nguyen Phuong Van, in the article of “Transfer of the right to exploit transport
6. 4 infrastructure works in the current conditions of Vietnam” posted in the Journal of Transport (November 2016), points out that transfer of the exploitation right is not a new issue; and raises its importance as well as suggests some solutions to improve the efficiency of this work in the current conditions in Vietnam. The project of “Capital mobilization and effective promotion of use in road maintenance” by Ta Quang Huy (2017). Stemming from needs of additional sources to the Fund of Road Maintenance, the author has developed a project with the aim of generating a legal incomings for the Fund of Road Maintenance to ensure an adequate, stable and sustainable capital source for the road maintenance. The doctoral thesis of “Solutions to attract investment capital for road traffic development in Vietnam” by author Pham Thi Tuyet (2018), proposes 9 urgent and feasible solutions to attract investment capital for development of road traffic in Vietnam. The doctoral thesis of “Research on management, exploitation and maintenance of road traffic infrastructure in Hanoi city” by author Tran Trung Kien (2019) proposes 06 groups of solutions to enhance efficiency of management, exploitation and maintenance of road traffic infrastructure in Hanoi city, including proposal of leasing rights to use road transport infrastructure and collecting motor vehicle charges entering into the inner city. 1.1.1.2. The studies on state administration on incomings from exploitation of road works (1) Regarding establishment and issuance of regimes and policies on incomings from exploitation of road works The project “Exploitation of financial resources from land and state assets for socio- economic development in the period of 2013 – 2020” of the Prime Minister (2013). The project on socialization of the road sector of the Ministry of Transport (2015) to maximize mobilization of social resources for the development of the road sector, thereby reducing pressure on state budget capital. The scientific research project at the level of Ministry of Transport level by Duong Van Chung at Transport Development and Strategy Institute (2018) of “Research on scientific basis, proposal of solutions to mobilize breakthrough resources for transport infrastructure development”. (2) Regarding organization of collection apparatus for incomings from exploitation of road works The project “Fund of Road Maintenance“ by Ministry of Transport (2011) to mobilize a number of social resources related to use of road in order to share with State budget in meeting sufficiently, sustainably management of road maintenance. In 2013, Transport Development and Strategy Institute performed the project of “ Research on mechanisms to effectively mobilize and use capital for road transport infrastructure maintenance“. (3) Regarding the management of the collection process for incomings from exploitation of road works The project of “Improvement of management of road toll collection ” by Dang Thi Xuan Mai et al. at University of Transport and Communications (2010). The proposed solutions for improvement of toll collection management consist of 3 contents: Express points of views on the financial and socio-economic benefits of toll collection; Modernization of toll plaza; Socialization of toll collection. The doctoral thesis of “State administration on collection and use of road tolls in Vietnam” by author Phan Huy Le at National Economics University (2010). (4) Regarding inspection, examination and supervision of the collection process from exploitation of road works The project of “Crime and law violation prevention in mobilizing and using capital sources in the transport sector” by Ministry of Transport (2017). The implementation of the
7. 5 project is aimed at combating and preventing crime and law violation in mobilizing, distributing and using capital sources in order to ensure a sustainable socio-economic development in the new period. The State Audit is one of the indispensable tools in strengthening the State’s inspection and control to prevent loss, waste and negativity that has been happening in all stages of investment process. In the course of researching on this issue, the thesis of author: Hoang Van Luong (2012), Tran Thi Ngoc Han (2012), therefore, proposes solutions to improve the audit quality in the course of construction investment audit, economical and efficient use of capital sources in this field. 1.1.2. Overview of foreign research works (1) Small, Kenneth A.(1992), with the research on use of incomings from traffic congestion restriction fees, concerns about use of incomings from road toll collection. The idea now is not to use the incomings to cover expenditures but to use the incomings on the effective basis. In the opinion of the author, the collected road tolls are not necessarily re-used for transport investment but can be allocated to large funds and other budgets to further invest for socio- economic development. (2) The studies of Gillen, D. (1997) on efficiency of using transport infrastructure at ideal prices: the second best rule, by Jones, P. (2003) on possibility of road users to accept traffic fees and challenges; Research by Kratena, K. and Puwein, W. (2002) on heavy truck tolls, focuses on analyzing and giving arguments and approaches to determine the traffic fees. Besides, it also states problems to be encountered in use of different approaches to determine road tolls and proposal for solution. (3) Author Юсynoв H.A. with the book "Teория u пpamuka rocyдacтвeнно - чacтнoro napтнества (2004) refers that if a private enterprise receives the right to build road works, it will have chance to exploit and maintain such works. (4) Author Cesar Queiroz (2005) with the article “Launching Public Private Partnerships for Highways in Transition Economies” emphasizes public-private partnership that is not only suitable for new construction investment (ĐTXD) projects, expansion and renovation, but also for projects of road maintenance, with program of franchise for maintenance and fee collection rights to mobilize capital for exploitation of works. In addition, there are many studies around the world on incomings and state administration on incomings from exploitation of road works: (5) The article of “ Financial innovation for road maintenance ” by Dr.Gunter J.Zietlow (1999), at the 3rd International Science Conference on Roads and Bridges. (6) An in-depth research by Marcus Einbock on “ The impact of road toll collection on the enterprise system ” recognized the negative impact of unreasonable toll collection on operations of enterprises in general; Parry, I.W.H. (2002) with the research on comparing the effectiveness of traffic congestion limit policies; The study by Poole, R. (1992) on the introduction of the price- based toll of traffic congestion; The study of Hai Yan and William H. K. Lam on traffic fee optimization in the condition of congestion, has researched on collection of traffic tolls from a different view. (7) The article of authors including Andrea Broaddus, Todd Litman, Gopinath Menon (2009) on the topic of “Transportation demand management” presented the experiences of some
8. 6 cities on traffic demand management, limit of demand on use of personal motor vehicles. (8) The article of authors including Stephen Lockwood, Ravi Verma, Michael Schneider (1999) on “ Public and private partnership in toll road development, overview of practices around the world” at the 3rd International Science Conference on Roads and Bridges in Vietnam. (9) The article of authors including Gerhard Menckhoff, Christopher Zegras (1999) “Experiences and a number of issues in transfer of urban transport infrastructure” at the 3rd International Science Conference on Roads and Bridges in Vietnam. (10) The article of Antonio Postigo (2008), “Financing road infrastructure in China and India: current trends and future options” analyzes the strengths and limitations of financial policies for Road transport in China and India. 1.1.3. Review on the research works and research gap of the thesis topic 1.1.3.1. Reviews Firstly, the research works of domestic and foreign authors related to incomings from road users in general and road toll collection in particular for aim at achieving high efficiency have provided the scientific arguments that assist the author to give directions and solutions to state administration on incomings from exploitation of road works in an efficient, stable and sustainable basis. Secondly, the studies on state administration on collection and use of road tolls have clarified the concept of road, road charges and the content of the state administration on collection and use of road tolls in Vietnam; also, it shows the shortcomings and issues in need of being research for the state administration on incomings from exploitation of road works in order to achieve the objectives set out. Thirdly, the research topics on incomings from road users in general and the state administration on collection of road tolls in particular have proposed solutions to the public- private cooperation in the work of the state administration on incomings from exploitation of road works in Vietnam. Fourthly, a number of issues such as: objectives, views, orientations, principles, criteria, experiences mentioned in the domestic and foreign scientific studies, seminars on road toll collection management will be acquired, inherited and developed by the author to build a theoretical basis for the state administration on incomings from exploitation of road works in Vietnam. Fifthly, there are many legal documents related to the state administration on incomings from exploitation of road works, but it can be seen that they still exist a number of shortcomings and inconsistency among documents, low feasibility, poor legal document quality, and theoretical research on law has not kept up with requirements of reality. Based on the reviews above, the following conclusions can be drawn: Firstly, majority of scientific works only focus on systematizing, analysing and researching the impacts of policies and regimes directly and indirectly affecting the road toll collection from users and proposing solutions to improve toll collection efficiency. Secondly, a number of works are only interested in application of technologies and techniques in road toll collection, discussion about application of technical solutions to improve toll collection efficiency. Thirdly, when it comes to the management of incomings from road users in general and
9. 7 road tolls in particular, the studies mainly aim at toll collection agencies which are toll plazas paid to state budget managed by Directorate for Roads of Vietnam and Department of Transport of provinces, the form of BOT toll collection (build-operate-transfer) is still new and in the pilot stage. Fourthly, a number of current incomings arising has not been mentioned by the studies: Fee collection of road pavement and median strip for placing billboards; Fee collection for use of roadway, roadside, pavement invested by the State (bicycles, motorbikes, cars at parking zones, public transport parking zones invested by the State) and so on. Recently, the State has made many innovations for exploiting road infrastructure assets towards attracting the private sector such as: Leasing the right to exploit, transferring road transport infrastructure assets in a certain term and exploiting the fund of land located on both sides of the road, which has encouraged private investors to pay more attention to the road infrastructure, thereby generating capital to serve maintenance and investment in road infrastructure development, and promoting socio- economic development. Fifthly, the system of legal documents related to the State administration on incomings from exploitation of road works should be further supplemented and improved. Therefore, the new differences and contributions of postgraduates in the thesis need to focus deeply on analyzing and explaining the main theoretical problems, current situation of state administration on incomings from exploitation of road works, thence proposing solutions to make administration on incomings from exploitation of road works today better. 1.1.3.2. Research gaps and questions: Based on the reviews and conclusions above, the research gap of the thesis topic in need of being focused on researching is: First of all, to systematize and clarify the theoretical and practical basis of the State administration on incomings from exploitation of road works in case of presence of new incomings with innovation in administration technology and increasingly-developed and modern road network. Secondly, to analyze, evaluate objectively and scientifically current situation of the state administration on incomings from exploitation of road works in recent period, thereby pointing out the shortcomings, limitations and their causes for the state administration on incomings from exploitation of road works. Thirdly, to suggest a number of solutions to make the state administration on incomings from exploitation of road works in Vietnam better on the basis of science and practice. Research questions: - Which incomings does exploitation from road works consist of? What is the state administration on incomings from exploitation of road works? - What is purpose of the state administration on incomings from exploitation of road works? which principles is it based on? And which requirements does it need to satisfy? - What are contents of the state administration on incomings from exploitation of road works? And what are criteria for assessment? How is the current situation of incomings and the state administration on incomings from exploitation of road works in Vietnam today? What are existing shortcomings and difficulties? And what are causes? What are solutions to perfect the state administration on incomings from exploitation of road works?
10. 8 1.2. Research framework of the thesis Mission approach and solution of the thesis: Basis for research Research idea Expected outcome Find out facts and reliable Affirm the necessity for information of the state improving the state Determine title of the thesis administration on incomings administration on incomings topic from exploitation of road from exploitation of road works works in Vietnam Research and review of Determine the research published scientific works Find research gap content of the thesis, related to the thesis topic expected in-depth studies Collect and research on Develop a theoretical Establish the theoretical, framework, look for lessons secondary theoretical, legal legal and practical basis for learned about the state and practical documents administration on incomings the further studies related to research mission from exploitation of road works Process and analyze Build an objective practical Collect information to serve information by statistics to basis for researching on research on current situation clarify the successes and and proposing solutions to of the state administration on shortcomings of the state perfect the state incomings from exploitation administration on incomings administration on of road works in Vietnam from exploitation of road incomings from works in Vietnam exploitation of road works in Vietnam Combine theory and practice Views, objective, orientation; Propose a system of of Vietnam conditions, expected solutions; solutions to perfect the closely follow the current situation of the state sociological investigation to state administration on administration on incomings verify the correctness of the incomings from from exploitation of road expected solutions exploitation of road works works to find perfect in Vietnam solutions Figure 1.1. Research framework of the thesis 1.3. Research methods of the thesis On the basis of the methodology of dialectic materialism and historical materialism used by economic researchers to study development of nature, society and thinking. The thesis uses the following main research methods: 1.3.1. Methods of synthesis, analysis, comparison To synthesize some statistical reports of National Assembly Standing Committee, Government, State Audit, Ministries of Planning and Investment, Finance, Transport and Directorate for Roads of Vietnam, etc. on the current state of road transport infrastructure, the system of administration documents, the development strategy of the industry, the investment capital demand, etc. To carry out in-depth research on experience of typical countries in the state
11. 9 administration on incomings from exploitation of road works in the region such as Japan, China, Singapore and so on. Especially, the experiences for management of incomings from exploitation of road works in the form of socialization, in combination with analysis of secondary data to serve as a basis for building orientations, objectives, and viewpoints of the state administration on incomings from exploitation of road works. 1.3.2. The expert method Through interviews with experts, managers to collect opinions and information on assessment of the current situation as well as solutions for the state administration on incomings from exploitation of road works in Vietnam. The purpose of interviewing different subjects is to obtain information, thence supporting the author to compare the collected information, evaluate the logics of quantitative analysis with qualitative analysis. 1.3.3. Methods of sociological investigation In the chapter 3 and 4 of this thesis, the author used the questionnaire survey method to assess the current situation and propose solutions to make the state administration on incomings from exploitation of road works in Vietnam to be carried out realistically and exactly. The research surveyed 138 subjects, including 91 subjects of central state management agencies related to receivables from road infrastructure exploitation (83 subjects under the agencies of the Ministries of Finance, Transport and Communications and Planning and Investment, and 8 subjects under Directorate for Roads of Vietnam), 18 subjects under local transport departments, 20 subjects as investors of road transport infrastructure, and 7 subjects under Government Inspectorate, State Audit and Inspectorate of the Ministry of Finance. CHAPTER 2: THEORETICAL AND PRACTICAL BASIS OF STATE ADMINISTRATION ON INCOMINGS FROM EXPLOITATION OF ROAD WORKS 2.1. Overview of incomings from exploitation of road works 2.1.1. Exploitation of road works Road works is a part of transport infrastructure, including roads, stopping and parking spaces, signal lights, road signs, road markings, sign posts, barriers, traffic islands, median strips, mileage poles, walls, embankments, drainage systems, vehicle load test stations, toll plazas and other road auxiliary works and equipment. Exploitation of road works is all activities in general related to operation of road works in accordance with process of exploiting and keeping traffic cap of the works according to process of maintaining and using the facilities of road works that were built or repaired for the people’s benefit, society, and country. 2.1.2. Incomings from exploitation of road works The incomings from exploitation of road works consist of those related to use of road works, including: Figure 2.1. The incomings from road works 2.2. Theoretical basis for the state administration on incomings from road works 2.2.1. Issues related to the state administration on incomings from road works The state administration on incomings from exploitation of road works is understood as the State‘s performing administration functions through use of legal and policy tools, affecting the subjects involved in the course of toll collection from exploitation of road works in order to
12. 10 achieve the requirements, objectives, and plans for incomings from that work. + Subject of state administration on incomings from exploitation of road works: Depending on regulations of each nation, including many agencies, with assignment and decentralization among the policy-making agencies, agencies that organize, manage the toll collection process from exploitation of road works, and those resolving dispute and handling violation. + Objects of state administration on incomings from exploitation of road works: are organizations and individuals getting benefits from road services. + Tools for state administration on incomings from exploitation of road works: Offices (head office, workplace, place where leaders, officials, civil servants and staff perform their functions, issue administrative decisions and organize implementation of those on incomings from exploitation of road works); Public assets (expenses and conditions, means to make collection from exploitation of road works); Administrative decision (expressing the will of the state on toll collection from exploitation of road works). + State administration methods on incomings from exploitation of road works: Administrative methods (through legal regulations on objects, contents, rates for collection) and organizational method (rewarding good followers and penalizing those who fail to strictly follow regulations on exploitation of road works); Legal tools, policies: ; Economic tools: taxes, fees, etc. 2.2.2. Requirements for state administration on incomings from exploitation of road works Requirements for state administration on incomings from exploitation of road works Properly plan Fully and properly Ensure uniform Minimize loss and the policy on enforce the policy management on negatives on Facilitate for incomings from on incomings from incomings from incomings from citizens and exploitation of exploitation of exploitation of exploitation of road enterprises road works road works road works works Figure 2.2. Requirements for state administration on incomings from exploitation of road works 2.2.3. Principles for state administration on incomings from exploitation of road woks The system of principles for the state administration on incomings from exploitation of road works must be accordant with principles of general organization and operation set by the State, adhere to the objectives set out, reflect exactly the State's views on direction and operation for supply of goods and services, in accordance with the national socio-economic development and following international commitments and practices, of which the most important are the following principles: - Principle of fairness; - Principle of stability; - Principle of use for the right purpose; - Principle of saving and efficiency; - Principle of publicity and transparency; - Principle of reasonable decentralization in administration on incomings from exploitation of road works. 2.2.4. Content of state administration on incomings from exploitation of road works The management science has shown the basic functions of management include: (i) Planning; (ii) Organizing the plan implementation; (iii) Directing the plan implementation; (iv) Controlling the plan implementation . On the basis of applying the basic management functions to condition of state administration on incomings from exploitation of road works, those
13. 11 functions are described specifically as follows: (i) Make projects and plans for incomings from exploitation of road works: In the reality of state administration on incomings from exploitation of road works, the function of making projects, plans for incomings from exploitation of road work is evaluated through the following 9 criteria: Overall objective at central level; Overall objective at local level; Project and Plan in detail; Clear implementation instructions; Clearly-defined responsibilities; Human resources and implementation appratus; A list of incomings in the right orientation; Guarantee of feasibility; Technology investment. (ii) Organize the plan implementation for incomings from exploitation of road works In the reality of state administration on incomings from exploitation of road works, the function of organizing the plan implementation for incomings from exploitation of road works is evaluated through the following 6 criteria: Fulfill responsibilities; Ensure collection schedule; Appropriate objective; Decentralization of state administration; Effective organization and operation of administration apparatus; Ensure publicity and transparency. (iii) Direct (lead) the plan implementation for incomings from exploitation of road works In the reality of state administration on incomings from exploitation of road works, the function of directing (leading) the plan implementation for incomings from exploitation of road works is evaluated through the following 8 criteria: Role of direction (leadership) at central level; Role of direction (leader) at local level; Central obligation; Local obligations; Ensure a clear understanding of objective (at central level); Ensure a clear understanding of objective (at local level); Encouragement form; Clear understanding of rights and obligations. (iv) Control the implementation of projects and plans for incomings from exploitation of road works In the reality of state administration on incomings from exploitation of road works, the function of controlling the implementation of projects and plans for incomings from exploitation of road works is evaluated through the following 6 criteria: Complete legal document system; Effective inspection, examination and supervision system; Collection process control standards; Take action in a timely manner; Handling violations of regulations; Ensure honesty and objectivity. The state administration on incomings from exploitation of road works consists of the following 4 contents: Content of state administration on incomings from exploitation of road works Organize the State Formulate and issue Inspect, examine administration Manage the regimes and policies and supervise the apparatus on collection process on incomings from collection process incomings from from exploitation exploitation of road from exploitation exploitation of road of road works works of road works works Figure 2.3. Content of state administration on incomings from exploitation of road works 2.2.5. Criteria for assessing the state administration on incomings from exploitation of road works Consisting of two groups: a. Group of criteria for assessing the content of policies on incomings from exploitation of road works: - Suitability of the collection policy with service quality; - Performance of the collection policy; - Impacts of the collection policy on the development of services for exploitation of road works. b. Group of criteria for assessing the collection organization
14. 12 - Criteria for assessing collection procedures and processes; - Time of collection; - The collector‘s attitude; - Level of loss; - Negative behavior in the course of collection; - Decentralization in collection management. 2.3. Factors affecting the state administration on incomings from exploitation of road works 2.3.1. Objective factors 2.3.1.1. Legal documents on incomings from exploitation of road works Clear and transparent legal documents on incomings from exploitation of road works will be a prerequisite for improving the efficiency of state administration on incomings from exploitation of road works. 2.3.1.2. Economic situation and living standards of the people With high living standards, the amount of payables from exploitation of road works does not account for too much compared to the people's income, so they are willing to pay such payables. 2.3.1.3. Institutions and sanctions of the state If the regulations of the local government for concretizing the regulations of the Law and Central policies is not clear or close to reality, of if they are not constantly revised, updated, it will cause difficulties for team of deployment, management, leading to a case of ask - give, harassment, corruption. 2.3.1.4. Consciousness for law observance on fees and charges When people are conscious of complying with the law well, they will voluntarily declare and pay the payables from exploitation of road works, thereby minimizing phenomenon on evasion of fees, charges, and money collected from exploitation of road works. 2.3.2. Subjective factors 2.3.2.1. Qualifications and ethical qualities of managers and leaders. Qualifications and responsibilities of the officers in charge of collection from exploitation of road works has a decisive significance to outcome of the state administration on incomings from exploitation of road works, because they are the ones who directly perform the collection from exploitation of road works. 2.3.2.2. Infrastructure of the transport sector as well as organizations and individuals allowed to collect from exploitation of road works. This factor has a strong impact on management of collection from exploitation of road works. The infrastructure of transport industry includes: working means, salary, bonus, discipline, etc. CHAPTER 3: CURRENT SITUATION OF THE STATE ADMINISTRATION ON INCOMINGS FROM EXPLOITATION OF ROAD WORKS IN VIETNAM 3.1. Current situation of collection from exploitation of road works in Vietnam 3.1.1. The current situation of the road system in Vietnam The network of Vietnam road is being exploited so far is 668.758 km in length, of which: The system of National route with 154 routes is 24,598 km in length managed by Ministry of Transport, accounting for 3,68% of the length of the road system (excluding roads in villages and within fields); The highway has 16 routes with length of 977 km; local road system (roads managed by local authorities) is 635.324 km in length (urban road, provincial road, district road, communal road and rural road accounts for 27.653 km, 27.941 km, 56.428 km, 523.302 km, respectively); special-use roads are 7.859 km in length, exploited and managed by organizations and enterprises. The number of bridges is estimated to be over 28.000 of all kinds. 3.1.2. Current situation of collection from exploitation of road works in Vietnam The incomings from exploitation of road works in Vietnam consist of: (i) Regulatory fees, (ii) Incomings from service price of using road transport infrastructure assets, (iii) Incomings from lease of the right to exploit, transfer of rights to exploit road transport infrastructure assets
15. 13 in a certain term and (iv) Other incomings. 3.1.2.1. Costs in accordance with the law on charges and fees a. Cost for using road In recent years, thinking about investment in road maintenance of the transport sector has changed dramatically. While capital for new construction investment is limited, the policy of allocating enough capital for maintenance to preserve road assets and restrict new construction investment is being encouraged. In the course of performing policy of socialization in the road sector, in 2013, road toll collection is commenced based on the number of vehicles, replacing toll collection through toll plazas to pay the State budget. Table 3.5. The result from the road toll collection in the period of 2013-2018 Unit: billion dong Items 2013 2014 2015 2016 2017 2018 Actual collection of road tolls 5.435,00 4.928,39 5.703,99 6.375,15 7.173,74 8.034,64 Road toll collection plan 4.737,12 4.645,00 6.177,73 6.150,0 6.950,0 Completion rate compared to expected plan 104,04% 122,80% 103,20% 116,65% 115,61% b. Fees for temporary use of roadway, pavements According to Circular No. 85/2019/TT-BTC dated November 29, 2019 on guidance on fees and charges under deciding competence of the People‘s Councils of provinces and cities under directly the Central, the fees for temporary use of roadway, pavement is one of the 21 fees under deciding competence of People‘s Council of the provinces or cities under directly the Central, so each locality has a different rate. 3000,0 2734,0 2356,0 2500,0 2070,0 2000,0 1446,0 1500,0 1262,0 billion dong 1000,0 500,0 - 2013 2014 2015 2016 2017 Figure 3.5. Result of collecting fees for temporary use of roadway, pavements in the period of 2013-2017 3.1.2.2. Incomings from the service charges for use of road transport infrastructure assets a. Business of service spot on road Table 3.6. Statistics for the number of service stations on the highway as of 2018 NO. Types of stations Quantity 1 The number of service stations 10 2 The number of emergency stations 8 3 The number of rescue stations 4 b. Business expansion on road In addition, the business expansion and development on the highway such as radio advertisement, advertisement on toll tickets, and expansion of storage system along the highway is not interested by investors for development investment. 3.1.2.3. Incomings from the lease of the right to exploit, transfer of the right to exploit the road transport infrastructure assets in a certain term a. Lease of the right to exploit road transport infrastructure assets Through the actual survey of some organizations with systems installed within scope of transport infrastructure system of National Route, it shows that if only a small portion of incomings from enterprises using road infrastructure is collected, the incomings from road exploitation has been increased significantly, meeting the basic demand of road maintenance, and
16. 14 reducing the additional state budget funding for annual maintenance, as well. For example, if 1% of incomings from these organizations is collected, the annual state budget has an additional capital of about 14.900 billion VND to meet the need for road maintenance. b. Transfer of the right to exploit the road transport infrastructure in a certain term It can be said that the great benefits from transfer of the right to exploit highway are very great, significantly contributing to solving the lack of investment capital for highway construction. The policy is also performed, but so far, the results have not been as expected. 3.1.2.4. Other incomings as prescribed by law a. Incomings from exploiting the land bank in the vicinity Currently, because the State has not yet carried out the collection from exploitation of land bank on both sides of the road, this huge and legal incomings to the state budget is being ignored. b. Donations and contributions from domestic and foreign investors, enterprises, people There are many ways for investors, enterprises and people to contribute to the development of road transport infrastructure instead of money, it is donating land for road construction and contributing efforts that are difficult to quantify, so the author has no statistics. 3.2. Analyze the current situation of the State administration on incomings from exploitation of road works in Vietnam 3.2.1. Formulate and issue regimes and policies on incomings from exploitation of road works For a clearer view on the current situation of promulgating and organizing performance of legal documents on incomings from exploitation of road works; general understanding and conciousness of incomings from exploitation of road works, the author conducts survey and analysis on the basis of an overall assessment of the following contents: (1) Understanding of state administration agencies about receivables, control agencies, investors; (2) Law on incomings from exploitation of road works; (3) Rates of collection. Table 3.8. General understanding and conciousness of incomings from exploitation of road works in Vietnam NO. Symbol Content 1 HBC1.1 Charges of using the road in accordance with the law on charges and fees Charges for temporary use of roadway or pavements in accordance with the law 2 HBC1.2 on charges and fees Incomings from the service charges of using road transport infrastructure assets and other incomings related to supply of services in accordance with the law: Gas 3 HBC1.3 stations, cafeterias, stores, maintenance and repair workshops, hotels, motels, communication services; storage system along the road Incomings from the service charges of using road transport infrastructure assets 4 and other incomings related to supply of services in accordance with the law: HBC1.4 Emergency station, rescue station Incomings from the lease of the right to exploit, transfer of the right to exploit 5 road transport infrastructure assets in a certain term: Bus terminals, parking lots, HBC1.5 road management houses, stop stations Incomings from the lease of the right to exploit, transfer of the right to exploit 6 road transport infrastructure assets in a certain term: Technical infrastructure HBC1.6 projects are lines, cables, pipes Incomings from the lease of the right to exploit, transfer of the right to exploit road transport infrastructure assets in a certain term: Other projects installed on 7 HBC1.7 roads and road safety corridors in accordance with the provisions of law: Placing advertising board on the pavement, median strip, etc. Incomings from the lease of the right to exploit, transfer of the right to exploit 8 road transport infrastructure assets in a certain term: Transfer of existing HBC1.8 infrastructure assets associated with investment in upgrade and expansion: transfer
17. 15 of roads, tunnels, bridges Other incomings (if any) as prescribed by law: Incomings from exploitation of 9 HBC1.9 land bank in the vicinity Other incomings (if any) as prescribed by law: Donations and contributions from 10 HBC1.10 investors 11 HBC2 The incomings are considered a kind of public service 12 HBC3 Ministry of Transport has a correct understanding of the incomings 12 HBC4 Ministry of Finance has a correct understanding of the incomings 13 HBC5 Directorate for Roads of Vietnam has a correct understanding of the incomings 14 HBC6 Vietnam Register has a correct understanding of the incomings 15 HBC7 Provincial People’s Committee has a correct understanding of the incomings Departments of Transport of provinces have a correct understanding of the 16 HBC8 incomings Control agencies (Inspection and State Audit, etc.) have a correct understanding of 17 HBC9 the incomings The investors (organizations or individuals in charge of the project) has a correct 18 HBC10 understanding of the incomings 19 HBC11 The laws on incomings have been issued fully and synchronously 20 HBC12 The rates of incomings are clearly specified The general analytical results for indicators measuring general understanding and conciousness are shown in Table 3.9. The analytical results show that level of general understanding and conciousness is above the mean threshold, except for the objective HBC11 (mean = 2.91), which indicates that the current law on incomings from exploitation of road works is considered incomplete and not synchronized. Table 3.9. The analysis reflecting indicators of general understanding (HBC) on incomings from exploitation of road works in Vietnam No. N Minimum Maximum Mean Std. Deviation HBC1.1 138 1.00 5.00 4.1667 .79765 HBC1.2 138 1.00 5.00 3.7319 1.08433 HBC1.3 138 1.00 5.00 3.9130 .79669 HBC1.4 137 1.00 5.00 3.0657 .97923 HBC1.5 138 1.00 5.00 3.9638 .74881 HBC1.6 138 1.00 5.00 3.9420 .62512 HBC1.7 138 1.00 5.00 3.7536 .91070 HBC1.8 138 1.00 5.00 3.7536 .88632 HBC1.9 137 1.00 5.00 3.6934 .88751 HBC1.10 137 1.00 5.00 3.6423 .88896 HBC2 138 1.00 5.00 3.8261 .80973 HBC3 138 1.00 5.00 3.5507 .82897 HBC4 138 1.00 5.00 3.7971 .74637 HBC5 138 1.00 5.00 3.5435 .77478 HBC6 138 1.00 5.00 3.4420 .78320 HBC7 137 1.00 5.00 3.6058 .76078
18. 16 No. N Minimum Maximum Mean Std. Deviation HBC8 137 1.00 5.00 3.4964 .81461 HBC9 138 1.00 5.00 3.6884 .76225 HBC10 138 1.00 5.00 3.0652 .88133 HBC11 138 1.00 5.00 2.8043 .95794 HBC12 138 1.00 5.00 3.2391 .94022 Valid N 134 (listwise) (1) Make the projects and plans for collection from exploitation of road works in Vietnam Table 3.12. Criteria for assessing the current situation of making projects and plans for collection NO. Symbol Content 1 KH1 An overall objective on incomings has been developed at the central level 2 KH2 An overall objective on incomings has been developed at the local level KH3 The projects and plans in detail for implementation of collection proposals 3 from exploitation of road work have been made in line with the overall objective of all levels 4 KH4 Instructions for performing projects and plans of incomings collection are clear KH5 The responsibilities of related subjects for the project, plans on incomings are 5 clear KH6 Human resources and organizational apparatus for performing projects and 6 plans on incomings collection is determined specificially KH7 A list of incomings is established in accordance with the orientation set out by 7 project and plan 8 KH8 The project, plans to collect incomings ensure the feasibility 9 KH9 Technology investment in toll collection has been well implemented The analytical results in Table 3.13 show that the assessment rate of this activity is approximately above the mean threshold, except that the objective KH6 and KH9 are below mean. It reflects quite accurately current situation that the investment in human resource investment as well as technology for performance of receivables collection plan which is still poor, affecting the quality and efficiency of the plans of collecting receivables, correct objects, and enough amount to pay the State budget. Table 3.13. Statistical analysis describing criteria related to planning Criteria N Minimum Maximum Mean Std. Deviation KH1 138 1.00 5.00 3.4855 .82157 KH2 138 1.00 5.00 3.2464 .77187 KH3 138 1.00 5.00 3.2681 .80636 KH4 138 1.00 5.00 2.9275 .86824 KH5 138 1.00 5.00 3.1739 .90346 KH6 138 1.00 5.00 2.9638 .84066 KH7 137 1.00 5.00 3.2774 .84653 KH8 138 1.00 5.00 3.2319 .73782 KH9 138 1.00 5.00 2.5870 .91003 Valid N 137 (listwise) 3.2.2. Organize the State administration apparatus on incomings from exploitation of road works (2) Organize implementation of the plan to collect from exploitation of road works in Vietnam
19. 17 Table 3.16. The criteria to assess the organization and implementation of the collection projects and plans NO. Symbol Content The State administration agencies on incomings (Ministry of Transport) have 1 TC1.1 fulfilled their responsibilities in organizing the collection of incomings. The State administration agencies on incomings (Ministry of Finance) have 2 TC1.2 fulfilled their responsibilities in organizing the collection of incomings The State administration agencies on incomings (Directorate for Roads of 3 TC1.3 Vietnam) have fulfilled their responsibilities in organizing the collection of incomings The State administration agencies on incomings (Provincial People’s 4 TC1.4 Committee) have fulfilled their responsibilities in organizing the collection of incomings The State administration agencies on incomings (Vietnam Register) have 5 TC1.5 fulfilled their responsibilities in organizing the collection of incomings The State administration agencies on incomings (Department of Transport of 6 TC1.6 provinces) have fulfilled their responsibilities in organizing the collection of incomings Ensure the progress of incomings collection according to projects and plans: 7 TC2.1 Charges according to regulations of law on charges and fees; Ensure the progress of incomings collection according to projects and plans: 8 TC2.2 Incomings from the service charges of using road transport infrastructure assets and other incomings related to supply of services in accordance with law; Ensure the progress of incomings collection according to projects and plans: 9 TC2.3 Incomings from the lease of the right to exploit, transfer of the right to exploit the road transport infrastructure asset in a certain term Ensure the progress of incomings collection according to projects and plans: 10 TC2.4 Other incomings (if any) as prescribed by law 11 TC3 The organization and implementation is consistent with the collection obejctive Decentralization of state administration on incomings between Ministry of 12 TC4 Transport and Provincial People’s Committee is clearly performed 13 TC5 Organize and operate the incomings management apparatus effectively 14 TC6 Ensure publicity and transparency in the collection of incomings The analytical results in Table 3.17 show that the assessment rate of this activity is above or approximately above the mean threshold, except for criterion TC5, which shows that these activities have been assessed as relatively weak in recent years. This result is consistent with current situation of organizing and implementing the collection plan in the past. On the other hand, criteria of publicity and transparency in the collection of incomings (TC6) is also assessed relatively low, indicating that it is necessary to promote more transparency and openness in organizing collection of receivables to create mutual consent among stakeholders and the whole society. Table 3.17. Statistics describing the organization and implementation of the collection projects
20. 18 and plans Criteria N Minimum Maximum) Mean Std. Deviation TC1.1 138 1.00 5.00 3.6159 .70785 TC1.2 138 1.00 5.00 3.7681 .72786 TC1.3 138 1.00 5.00 3.5362 .70617 TC1.4 138 1.00 5.00 3.5652 .70407 TC1.5 138 1.00 5.00 3.5000 .73742 TC1.6 138 1.00 5.00 3.3043 .73105 TC2.1 138 1.00 5.00 3.7464 .59268 TC2.2 138 1.00 4.00 3.4565 .68476 TC2.3 138 1.00 5.00 3.3913 .70901 TC2.4 138 1.00 5.00 3.2826 .65054 TC3 138 1.00 5.00 3.4275 .79126 TC4 138 1.00 5.00 3.4130 .98698 TC5 138 1.00 5.00 2.9638 .91547 TC6 138 1.00 5.00 3.0652 .93751 Valid N (listwise) 138 3.2.3. Manage the collection process from exploitation of road works (3) Direct implementation of the collection plan from exploitation of road works in Vietnam Table 3.20. Criteria for assessing the direction of performing the collection projects and plans NO. Symbol Content CD1 The central leaders show their good leading role in the state administration of 1 decentralized incomings CD2 The local leaders show their good leading role in the state administration of 2 decentralized incomings 3 CD3 The central leaders well perform their obligations in state administration of decentralized incomings 4 CD4 The local leaders well perform their obligations in state administration of decentralized incomings 5 CD5 The central leaders ensure that individuals and subordinate units understand clearly the objectives, projects and plans of collecting decentralized incomings CD6 The local leaders ensure that individuals and subordinate units understand clearly 6 the objectives, projects and plans of collecting decentralized incomings CD7 The leaders well perform incentives to promote working motivation for subjects 7 in state administration on incomings CD8 The leaders ensure that individuals and subordinate units understand clearly their 8 rights and obligations in state administration on incomings The analytical results in Table 3.21 shows that the assessment rate of this activity is above the mean threshold, except for criterion CD7. This result shows that the direction of performing the plan to collect from exploitation of road works in the past is not too bad, but it needs to be improved further to clearly define the leading role of collectives and relevant individuals, thence creating a strong change in the state administration on receivables. On the other hand, the encouragement of subjects involved in the implementation of the collection projects and plans by combining various forms is very necessary, simple management based on administrative orders should be avoid due to poor working productivity. Table 3.21. Statistics descring the criteria for directing implementation of the collection
21. 19 projects and plans Criteria N Minimum Maximum Mean Std. Deviation CD1 138 1.00 5.00 3.5145 .83915 CD2 138 1.00 5.00 3.1957 .82708 CD3 138 1.00 5.00 3.5942 .70076 CD4 138 1.00 5.00 3.2464 .76236 CD5 138 1.00 5.00 3.4420 .76433 CD6 138 1.00 5.00 3.2391 .77887 CD7 138 1.00 5.00 2.8623 .87288 CD8 138 1.00 5.00 3.2899 .75651 Valid N listwise) 138 3.2.4. Inspection, examinationand supervision of the collection process from exploitation of road works (4) Control performance of project and plans for incomings from exploitation of road works in Vietnam Table 3.24. Criteria for assessing implementation and control of the collection projects and plans NO. Symbol Content KS1 Develop a full legal document system for the inspection, examination and 1 supervision of full incomings 2 KS2 Establish an effective system of incomings inspection, examination and 3 KS3 Develop full criteria for controlling the collection process of incomings. KS4 Take timely action to handle deviations from the original collection projects or 4 plans. KS5 The sanctioning system promotes its role and function well in handling violations 5 for incomings KS6 Ensure the truthfulness and objectivity for contents of incomings inspection, 6 examination and supervision The analytical results in Table 3.25 show that the assessment rate of this activity has a differentiation both above and below the mean threshold. In which, the criteria KS1, KS2, and KS3 were assessed approximately below the mean threshold. This result reflects current situation of system of legal documents guiding the control, the effective inspection and inspection system, and the criteria of controlling the plan implementation for the receivables in the past still exists many limitations and weaknesses, leading to reduction of effectiveness for controlling and supervising the implementation of collection plan. These contents need studying to be innovated in the coming time towards more efficient and substantial basis in order to create a change for performance of the state administration on incomings from exploitation of road works in Vietnam. Table 3.25. Statistical analysis describing the criteria for supervising implementation of the collection projects and plans Criteria N Minimum Maximum Mean Std. Deviation KS1 138 1.00 5.00 2.9420 .95725 KS2 138 1.00 5.00 2.9855 .95126 KS3 138 1.00 5.00 2.9710 .91971 KS4 138 1.00 5.00 3.2246 .92821 KS5 138 1.00 5.00 3.2246 .88802
22. 20 KS6 138 1.00 5.00 3.1377 .85600 Valid N (listwise) 138 3.3. Assess current situation of the state administration on incomings from exploitation of road works in Vietnam 3.3.1. Achievements Achievements in the state administration on incomings from exploitation of road works Supplment new The collection The direction, guidance and supervision for The incomings incomings from process is more incomings from the exploitation of road works of the from road tolls is exploitation of road and more strict State administration apparatus is strictly and on the rise works and appropriate effectively implemented. Figure 3.8. Achievements in the State administration on incomings from exploitation of road works 3.3.2. Some shortcomings in the state administration on incomings from exploitation of road works In addition to achievements, the state administration on incomings from exploitation of road works still has some shortcomings and limitations that need to be overcome such as: Some problems in the state administration on incomings from exploitation of road works The Decentralizat The supervision, The incomings incomings ion among examination and Toll Legal basis cannot meet the and the inspection of law and collection cannot meet increasing capital technology practical collection administratio public service demand for road rates from n agencies is enforcement have not cannot meet requirements maintenance road users not been paid adequate actual are not clear reasonable attention requirements 3.3.3. Causes of the shortcomings in the State administration on incomings from exploitation of road works 3.3.3.1. Incomplete system of legal documents The legal system of collection is not really complete, clear and relatively complicated. There is redundancy and lack of documents for the state administration on incomings from exploitation of road works. 3.3.3.2. Conciousness and responsibilities of the subjects for the state administration on incomings from exploitation of road works a. From perspective of administration agencies The State has not yet clarified the concept of the state administration on incomings from exploitation of road works as well as not really considered this as one of the state administration activities on supply of public goods. The unclear conciousness leads to some shortcomings. b. From perspective of enterprises Enterprises have not really considered this as a non-profit sector that needs to focus on but still aimed at profit, which causes influence on quality of incomings from exploitation of road works. The administration organization capacity and equipment are still poor, the competitive environment is not really healthy. c. From perspective of people Many people have an unclear understanding about their rights and obligations in participating in road transport as well as tolls collection from exploitation of road works; the collection rates, purpose and use of incomings from exploitation of road works. In order for the people to promote their role and actively participate in the state administration on incomings from exploitation of road works, popularization on law needs performing well. 3.3.3.3. Lack of criteria for controlling the process of receivables collection Lack of a scientific system of regulations, criteria for inspection and assessment makes it difficult for the inspection process as well as the accuracy of conclusions. The status that
23. 21 “superior” gives request but “subordinates” do not obey or “subordinates” report and “superior” ignores. CHAPTER 4: SOLUTIONS TO IMPROVE THE STATE ADMINISTRATION ON INCOMINGS FROM EXPLOITATION OF ROAD WORKS IN VIETNAM 4.1. Orientation for planning of road transport development in Vietnam to 2030 4.1.1. Viewpoints on road transport development of Vietnam The road transport is determined as an important part in the socio-economic infrastructure, so it should be given priority to invest in development, facilitate, as a driving force for socio- economic development, thereby meeting the requirements of national industrialization and modernization, economic integration in the region and the world and contributing to maintain national defense and security. To attract all economic sectors to participate in investment and development of road transport infrastructure. To mobilize all resources, attach importance to domestic resources for investment and development; Users are responsible for contributing fees to maintain and re-invest in construction of road transport infrastructure. 4.1.2. Objective of road transport development to 2030 By 2030, the transport network in the country is basically completed, ensuring the connection and reasonable development between modes of transport. Quality of transport and services has been improved with criteria: fast, safe and convenient. The construction of highways is basically completed. The road and railway system of Vietnam is synchronous in term of technical standards, conveniently connected to the ASEAN road system, the Greater Mekong Subregion and the Trans-Asia railway. 4.1.3. Demand of investment capital for road transport development On the basis of determining the total incomings of Fund of road maintenance, 35% is allocated to the local fund, the 65% retained to central fund is the incomings for maintenance of National Route system. Based on needs of funding and capacity to meet the funding from the road toll collection for the maintenance of National Route system, the amount of state budget needs to subsidize the funds from now to 2030 as follows: Table 4.3. The expected budget of funding for National Route maintenance in the period of 2020-2030 Unit: billion dong Demand for National Road toll State budget’s State budget’s 2020-2030 Road toll (PA1) Route (PA2) allocation PA1 allocation PA2 maintenance (5) = (2) - (6) = (2) - (1) (2) (3) (4) 0,65*(3) 0,65*(4) Total 295.128 157.911 170.669 192.486 184.193 According to calculations, in the period of 2020-2030, the state budget’s subsidy is 192.486 billion VND (PA1) and 184.193 billion VND (PA2). Thus, in case that other sources of incomings in the first stage cannot be immediately realized, for guarantee of boosting resources for the management and maintenance of road systems (in general) and the National Route system (in particular), the subsidies from the state budget need increasing. 4.2. Orientations for state administration on incomings from exploitation of road works in Vietnam On the basis of general viewpoints and objectives on investment and development of road transport and the current situation of construction investment in the past, the orientations of state administration on incomings from exploitation of road works in Vietnam are determined as follows: Firstly, to complete and supplement regulations in the system of legal documents, ensure that the law on incomings must be uniform, consistent, fair, efficient, and accordant with socialist-oriented market economy institutions. Secondly, decentralization for administration of incomings from exploitation of road works based on mission assigned must be associated with the responsibility of the head of the organization collecting toll from exploitation of road works. To establish an organization
24. 22 appartus for collection to ensure efficiency and establishment. Thirdly, to promote training and education of inspectors, inspection officials in the field of financial, tax and fee inspection. To focus on directing and strictly deal with in accordance with law acts of corruption and waste; acts of taking advantage of anti-corruption to slander or make false accusations. To carry out strictly supervising implementation of recommendations and conclusions of competent agencies in inspection and examination work. Fourthly, to run the application of 4.0 technology to speed up the progress, efficiency and save time in the collection of user fees and service charges for exploitation of road infrastructure. Fifthly, to establish team of officials, civil servants and public employees of the State administration apparatus on incomings collection with enough qualities, capabilities and qualifications to meet the requirements of serving the people and national development by 2030 The team of officials, civil servants and public employees ensures reasonable quantity, structure, qualification and capability of performing public service, serving the people and serving the national development. Sixly, through international cooperation to learn experience from other countriesand improve the quality of legal documents, development policies, and exploit road transport infrastructure in accordance with international standards and meet requirements on integration of the country. 4.3. Some solutions to perfect the state administration on incomings from exploitation of road works in Vietnam 4.3.1. Complete the legal system and policy on incomings from exploitation of road works. - To quickly complete the policy framework on encouragement and ensure construction investment, exploitation and business of road works by reviewing, amending and supplementing the Codes and Laws on fees and charges related to the road transport sector. - To complete and develop decrees and circulars to expand investment forms in projects of construction, exploition and business for transport infrastructure, using off-budget sources in accordance with international practices. - To complete policies on investment guarantees and incentives from policies on fees of road transport infrastructure use, traffic services, investment guarantee policies, repurchase of infrastructure assets, preferential policies on taxes, fees, land. - To promote capital mobilization from franchising to exploit and trade existing transport infrastructure. 4.3.2. Improve the capabilities and qualifications of officials in the state administration agencies on incomings from exploitation of road works. - To promptly improve the quality of policy-making apparatus for fee and charge collection at all administrative levels through training, recruitment and entry examination for civil servants to ensure that the experienced and good people in policy-making will be selected. - To carry out training qualifications and raising conciousness of officials through training courses on tax and fee policies, training in use of softwares such fee calculation and accounting for proficient and effective use. In addition, it is necessary to continuously improve the morality, sense of responsibility of fees and charges collectors, public ethics in communication with payers and service users and these are considered criteria for competitive classification, rewarding, and raising salary level early for those. 4.3.3. To complete organizational apparatus of the state administration agencies on incomings from exploitation of road works. - To review functions and duties of agencies related to the state administration on incomings from exploitation of road works. To consolidate organizational appratus, reduce administration unit to avoid overlapping functions and duties, save costs and improve efficiency. - To review professional qualifications of the staff to arrange jobs appropriately, thereby avoiding cases of wrong people, wrong jobs, which not only obstructs promotion of their capabilities but easily causes depression, pessimism, affecting the common mission. 4.3.4. Strengthen examination, inspection and assessment by state administration agencies, supervision by community and settlement of complaint and denunciation.
25. 23 - Firstly, to review and supplement specific sanctions to inspect, examine, supervise and strictly manage the incomings collection process from exploitation of road works. - Secondly, to strengthen reporting, supervision and assessment on incomings from exploitation of road works, associated with the responsibility of the competent individuals along with responsibility of the administration agencies for reporting, supervision. - Thirdly, to improve the quality of inspection, avoid indulgent action, lack of transparency and objectivity when performing inspection of incomings from exploitation of road works. - Fourthly, to enhance supervision role of the community (represented by the Fatherland Front), unions, associations, and press agencies for collection of incomings from exploitation of road works, in order to detect, prevent, combat corruption, loss and waste of incomings for state budget. - Fifthly, in the course of inspection, it is neecessary to pay attention to urging cases of outstanding debt, risk of revenue loss, incomings loss. - Sixthly, to set up hotlines. To carry out inspection and verification right after receiving reliable denunciations and complaints from people and enterprises. 4.3.5. Investment in technology to improve the efficiency of incomings from exploitation of road works. To research, develop and promulgate Electronic software integrating with Program of road toll collection management and Program of road transport infrastructure asset management, in order to uniformly apply to organizations that exploit from road works. To study international experiences to integrate on the web portal of Directorate for Roads of Vietnam. CONCLUSION AND RECOMMENDATION 1.CONCLUSION The thesis of “State administration on incomings from exploitation of road works” achieved research objectives through answering the research questions with the following issues: First of all, through investigation of the research works related to the topic, it has been identified that the studies mostly focus on incomings from road users, solutions to mobilize capital for road maintenance, the state administration of road toll collection, so on and there is no intensive research on the state administration on incomings from exploitation of road works in Vietnam. Secondly, to clarify theoretical issues about the incomings and state administration on incomings from exploitation of road works in Vietnam. To systematize and give the concepts of the incomings from exploitation of road works, the state administration on exploitation of road works in general and the state administration on incomings from exploitation of road works in particular. The thesis identifies the factors affecting the state administration on incomings from exploitation of road works in Vietnam as well as synthesized the experience of some Asian countries and pointed out lessons for Vietnam. Thirdly, to assess the current situation of road transport infrastructure system in Vietnam, thence comparing with those of some countries in the region. To analyze the need for capital investment in construction of road works. The thesis has conducted in-depth analysis about current situation of incomings from exploitation of road works and the state administration on incomings from exploitation of road works in Vietnam, thereby pointing out the successes, limitations as well as causes in need of being overcome. Fourthly, to give directions for the state administration on incomings from exploitation of road works in Vietnam in the period of 2020-2030, thereby proposing a number of solutions to make the state administration on incomings from exploitation of road works better in accordance with conditions of Vietnam in the coming time, namely: To complete the system of laws and policies on incomings from exploitation of road works; Improve capabilities and qualifiacation of officials in the state administration agencies on incomings from exploitation of road works; Complete organizational apparatus of state administration agencies on incomings from exploitation of road works; Invest in technology to improve the efficiency of incomings from exploitation of road works; Strengthen inspection, examination and assessment of the state administration agencies, supervision by community and settlement of complaints and
26. 24 denunciations; Fifthly, synchronization for these groups of solutions will give positive changes in the state administration on incomings from exploitation of road works in Vietnam in the coming years. Contributions of the thesis: The thesis has systematized and made the theoretical and practical basis of the State administration on incomings from exloitation of road works clearer in the presence of new incomings with change of management technology and the increasingly-developed and modern road network. On the basis of investigation results, it objectively analyzed the current situation of incomings from exploitation of road works and the state administration on incomings from exploitation of road works in Vietnam. It points out successes, limitations, and main causes for shortcomings. Besides, it also points out the basic factors affecting the state administration on incomings from exploitation of road works in Vietnam. On the theoretical and practical basis of state administration on incomings from exploitation of road works in Vietnam, the thesis has proposed 05 groups of solutions to improve administration on incomings from exploitation of road works in Vietnam, which are verified for their necessity and feasibility through surveys, assessments, polls of officials, experts, managers, etc. and data is processed by statistical software SPSS. The results show that all groups of solutions are as close to necessity and feasibility as possible, no solution is unnecessary and difficult to implement. 2. RECOMMENDATION * For Government and Ministry of Transport First, In the next period, it is necessary to renew the mindset of mobilizing investment capital in both scope and depth, quickly complete the policy framework on encouragement and ensure construction investment, exploitation and business of road transport works by reviewing and amending and supplementing Laws, Codes, Ordinance on Fees and Charges related to major of road transport. Second, to promulgate regulations to expand investment forms in construction projects, exploitation and business of road transport infrastructure with off-budget sources in accordance with international practices. Third, to complete policies on investment guarantee and incentives, policies on cost for using road, traffic service charges, investment guarantee, repurchase of road transport infrastructure, the polices on tax, fee, land incentives, etc. Fourth, there is a minimum revenue guarantee mechanism for investors participating in construction investment and receiving the transfer of the right to exploit road transport infrastructure. Fifth, to promote capital mobilization from franchising to exploit and trade existing road transport infrastructure. Establishment of a full legal corridor to attract both domestic and foreign investors in the field of transferring the right to exploit and trade road transport work is considered a solution to the problem of investment capital. * For Ministry of Finance It is recommended to consider increasing the amount of appropriation to the toll collectors so that there is enough funding to pay the service fees to the Bank of toll collection support. At that time, it is feasible to organize bidding in order to choose the banks with the best service for the system. * For Localities First, together with road transport sector, the localities need to be more aggressive in controlling vehicle load. The local authorities and police forces, inspectors should promote inspection and timely handle violations of road traffic safety corridors and exploitation of road transport infrastructure. Second, it is necessary to promote popularization and dissemination of regulations on payables when using road works in the area, explain to people the practical benefits so that they voluntarily comply with guidelines, State policies and fulfill their obligation for society./.
27. LIST OF SCIENTIFIC WORKS PUBLISHED BY AUTHORS RELATED TO THE THEIS TOPIC 1. Hoang Ngoc Son, Truong Thi Thu Huong (2016), “Factors affecting quality of works and road maintenance expense. Journal of Finance, May 2016. 2. Hoang Ngoc Son, Bui Hung (2017), “Vietnam Fund of Road Maintenance: Current situation and factors causing loss of maintenance fund”, 8th international seminar: “Socio- economic and environmental issues in development”, National Economics University, pg. 551- 561. 3. Hoang Ngoc Son (2019), “Experiences of China and Singapore on state administration on incomings from exploitation and maintenance of road works, lessons learned for Vietnam”, Journal of Construction, June 2019. 4. Hoang Ngoc Son (2019), State administration on incomings from exploitation and maintenance of road works in Vietnam, Journal of Finance, June 2019. 5. Hoang Ngoc Son, Do Van Thuan, Bui Thi Phuong Thao (2020), Some solutions to make state administration on incomings from exploitation of road works in Vietnam, Journal of Transport, December 2020.