In addition, the most vulnerable ethnic minority groups live in remote, less productive and ecologically sensitive areas of the region. The overall objective of this project is to investigate the impacts of Lao Bao SECA on the socio-economic development in the region in general and specifically in Huong Hoa Mountain Local District of Quang Tri Province. The information collected included background information on Lao Bao SECA, investment flows, government efforts for SECA, socio-economic impacts of SECA on the local economy, and economic impacts on businesses.
As usual, this study faced many difficulties in terms of secondary data collection, especially since it is the early stage of development of Lao Bao SECA. To understand Lao Bao's perceptions of SECA's investment environment and performance, advantages and strengths as well as weaknesses and challenges were assessed, from which recommendations and policy implications can be made for improving businesses in SECA. Asserting its importance within the region, the Politburo of the Nations agreed a policy to transform the Lao Bao - Densavanh (Laos) border area into an economic development zone.
The development and operation of SECA is governed by the SECA Board of Directors appointed by the Central Government. Thanks to the 'one-door, one-stop' policy, SECA's governance mechanism provides a conducive environment for attracting investment. SECA goods and services provided on the domestic market are covered by the current VAT policy.
However, an increase in tourism is known to have been one of the major benefits that investment in the area has brought, thanks to the SECA's location on the East-West Economic Corridor.
By Country
Number of Persons per Household
Number of Laborers per Household
Monthly Income per Household Head
As mentioned earlier, the evidence points to the impressive changes that have taken place in the labor structure in Lao Bao thanks to SECA's influence. The trend shows that more people are now involved in the non-agricultural and service sectors in Lao Bao, resulting in a higher share of household income from non-agricultural and service activities and a higher per capita income. The situation is different in other municipalities, where people's livelihood still depends on agricultural activities.
This is somewhat the same as the regional average for the poorest quintile group, but much higher than the regional average (Appendix 8). This may further imply that the SECA does have a strong impact on people's livelihoods in Lao Bao town itself, but may have a lesser and more delayed impact on those living in its vicinity. To minimize the problem of missing information, in terms of economic indicators, one part of the questionnaire survey was extended to capture the perceptions of people regarding the impact of the Lao Bao SECA on jobs, employment and income; market and infrastructure improvements and other aspects of the SECA.
To do this, we operationalized parts of the questionnaire into fifteen statements about the positive impacts of SECA and three statements about the negative impacts of SECA (smuggling, social problems, and environmental problems). Four factors including jobs and employment, market opportunities, infrastructure improvement, and social problems were developed using factor analysis with varimax rotation and the method of principal components. ANOVA analyzes show that local residents express a positive response to the impacts of SECA in terms of infrastructure improvements such as roads, electricity, schools and hospitals, and that there is no statistically significant difference between ethnic groups (sig. P< 0.05).
Likewise, most respondents agreed that SECA has helped to improve the market opportunities for the local population, and there is also no statistically significant difference between ethnic groups, nor across gender, occupation or education level. Most respondents also tend to express a neutral attitude towards the statement that SECA has increased smuggling and other social problems in the region (Table 16). This may mean that smuggling and social problems are not as much of a problem as may be perceived by the respondents.
Regarding the effects of SECA on improving the level of jobs, employment and income for the local population, there is a statistically significant difference between different groups of people in terms of ethnicity, gender and occupation, as well as income and level of education. As discussed in the section above, opportunities for employment and income improvement seem to be more important for educated Kinh residents, but not for other local residents, especially the poor and ethnic groups. Similarly, the Lao Bao SECA has a clearer impact on employment and income opportunities for those engaged in non-agricultural and service activities than for those engaged exclusively in agriculture.
Conclusions and Policy Implications
Lao Bao among and between ethnic groups, both within and outside Lao Bao, where there are fewer opportunities for people from ethnic minorities. This raises further policy concerns about the government's role in supporting and enabling the participation of ethnic groups in economic development in general, and in the SECA in particular. The operation and management of the Lao Bao SECA have revealed many problems, including poor infrastructure, a shortage of high-quality labor, bureaucratic problems, weak promotion and marketing of investments, and smuggling.
Some of these problems may require more effective policy interventions from central government if they are to be rectified; however, other problems require the attention of local government, the cooperation of the business community, and for local residents to create a synergy for development. Human resource development: different forms and levels of training are needed to meet the growing demand for high-quality work in SECA in Lao Bao in particular, as well as in the province. At the same time, the government should introduce suitable labor policies, wages and other incentives for workers working in remote and mountainous SEZs such as Lao Bao; Preferential policies on matters such as taxes, loans and land rents should be given to enterprises that employ more local labor.
Improved infrastructure and marketing: Better infrastructure planning and development, both within and outside the SECA, plus public support services, is needed to facilitate investment projects in the SECA. The government must work closely with businesses to market products and services produced in the SECA, as well as local products and handicrafts, products that are the strength of the area but have not yet been fully exploited. This will help make better use of local resources, create more jobs for local people, diversifying their livelihoods into non-agricultural and external activities, and reduce the risks and uncertainties arising from heavy dependence on agriculture .
Other support: More government intervention is needed to attract further investment and the positive impact of the SECA on socio-economic development in the. At household level: A change in household economic activities from farm to non-farm based is the best alternative to alleviate poverty. Support from local government and development agencies in the form of credits/loans, training and extension services will help improve local people's ability to take advantage of market opportunities and regional integration; to diversify their livelihoods and improve living standards.
Report for the Asia Urbs project VNM005 (Urban Poverty Alleviation in Hue in Connection with Heritage Preservation), co-financed by the European Union. General report of 15 years of establishment and development of industrial zones and economic zones. Socio-Economic Development Strategy in Key Economic Regions of Central Vietnam to 2010 and Vision to 2020.
Land Use in Lao Bao Town, 2005-2007
Socio-Economic Indicators in Huong Hoa District, 1997 - 2007
Socio-Economic Indicators in Lao Bao Town, 1997 - 2007
Education and Training of Business Staff
Household Income Structure in Tanlong Commune, Huong Hoa District 2008*
Household Income Structure in Tanlap Commune, Huong Hoa District 2008
Household Income Structure in Tanthanh Commune, Huong Hoa District 2008
Structure of Rural Household Incomes in Central Provinces by Quintiles 2002-2006
