INTRODUCTION
1. Rationale of the thesis
The mountainous regions play an important role in socio- economic terms
as well as safety and defense terms. The Party and Government have deeply care
for these regions, with guidelines, policies to develop the economy of these
regions efficiently. On the base of trade development of mountainous regions
program approved by the Prime Minister, the guideline is “Developing trade of
mountainous regions in order to reduce the gap between regions; contribute
proactively to socio- economic development, increase the people’s income,
ensure the safety and defense in the mountainous regions” has contributed to
trade development of mountainous regions in recent years.
Although the Central and authorities of localities had preferential policies
for trade development of mountainous regions, there have been difficulties and
inefficiency in trade activities. Trade policies of mountainous regions have had
downsides in all stages like formulation, organization, implementation and
examination, supervision of trade policies, such as:
Firstly, although there have been theoretical and practical issues about trade
devlopment polices in area, region, most those policies are for urban areas, key
economic regions. Mountainous areas with geography, culture, custom, purchasing
level, which are all different from other regions and areas, so trade development
policies of these areas are not appropriate with characteristics in the process of
formualtion and implementaion policies.
Secondly, there have been downsides in the process of formualtion and
implementaion policies on trade development of mountainous regions, especially
in stages of implementation and examination, supervision. This can be seen
through the process of information supply, management tools, ability and skills,
interaction level with companies as well as business store has been low. Trade
development of mountainous regions policies have not make use of comparative
advantages of mountainous areas.
Thirdly, Trade development of mountainous regions policies have not met
the demand of business subjects and residents in mountainous areas. Because

framework of the content of the policy on trade development of mountainous
regions reflecting 6 main policies on trade developement and there is a space in
science, which are:
Firstly, the definition of trade policy or trade development policy have
developed recently, but there has been no complete definition of policy on trade
development of mountainous regions. Therefore, it is necessary to have a
complete definition of policy on trade development of mountainous regions.
Secondly, there is no specific identification for the policy on trade
development in mountainous regions, research model of the policy on trade
development in mountainous regions in terms of the quality of content,
management, effects on the efficiency of policy goals and the development of
quality factors, the efficiency and value of mountainous regions.
Thirdly, research on trade development of mountainous regions policy
in terms of quality, efficiency have not been mentioned with specific criteria.
Fourthly, with policy on trade development of mountainous regions,
there have not research and head - on evaluation of the process of developing


the policy. Factors affecting the policy on trade development of mountainous
regions need to be clarified.
3. Mission, objective of the thesis
3..1. Objective of the thesis
The basic and thorough objective of the thesis is to propose solutions to
complete the policy on trade development of Vietnam’s mountainous regions by
2025 and orientation towards 2030.
3.2. Mission of the thesis
- To systemize and clarify the theoretical basis of the policy on trade
development in mountainous regions.
- To evaluate and clarify practical basis of the policy on trade
development in mountainous regions.

resource to evaluate the real situation of the policy on trade development in
mountainous regions from 1986 till now.
5. Research question
To achieve the research objectives, the thesis has brought out these
research questions:
Question 1: What is the definition of the policy on trade development in
mountainous regions of Vietnam?
Question 2: What is the content of the policy on trade development in
mountainous regions?
Question 3: What is the real situation of developing trade in
mountainous regions and the policy on trade development in mountainous
regions in recent years?
Question 4: How recent promulgated policies have facilitated and made
difficulties for the trade development in mountainous regions and the causes of
those advantages and limitations?
Question 5: What are necessary viewpoints, orientations and solutions to
complete the policy on trade development in mountainous regions of Vietnam
by 2025, orientation towards 2030?
6. Research method
Qualitative research method and investigation, examination and interview
method have been used in the thesis. Qualitative research was used to systemize
theoretical basis and the real situation of the policy on trade development in
mountainous regions of Vietnam. Investigation, examination and interview
method was used to evaluate the policy on trade development in mountainous
regions based on evaluation criteria.
7. Scientific achievements of thesis
- Theoretical achievements: The thesis has systemized and developed
issues about the policy on trade development in mountainous regions. The
thesis has clarified the intension of definitions of policies on trade development
in mountainous regions, the rule, goal, role and necessity of the policy on trade

mountainous regions by 2025, orientations towards 2030. Therefore, the
thesis has presented groups of specific solutions based on 06 basic policies
on trade development of mountainous regions to complete the policy on trade
development in mountainous regions of Vietnam.
8. Structure of the thesis
Except for the Introduction, Conclusion, the thesis has 3 chapters, which are:
Chapter 1: Theoretical basis for the policy on trade development in
mountainous regions.
Chapter 2: The real situation of the policy on trade development in
mountainous regions – Research on the real situation in mountainous provinces
of Northern Vietnam.
Chapter 3: Solutions for the completion of the policy on trade
development in mountainous regions by 2025, orientations towards 2030.


Chapter 1
THEORETICAL BASIS FOR THE POLICY ON TRADE
DEVELOPMENT IN MOUNTAINOUS REGIONS
1.1. The basis of trade development of mountainous regions
1.1.1. Mountainous regions and characteristics of mountainous
The thesis has presented typical characteristics of mountainous regions
and differences of mountainous regions in terms of geography, resources,
agriculture, forestry, aquaculture, literacy, science and technology.
1.1.2. Trade of mountainous regions
The thesis has presented definitions of trade in academic terms, in
narrow meaning, according to Trade Law in 2005. On the base of the definition
of trade, PhD. Student has presented the definition of trade in mountainous
regions: “Trade in mountainous regions is a part of trade activities and aims at
making profits in mountainous regions, including of goods purchasing
activities, service supply, investment, trade promotion, trade manufacture,


Therefore, the thesis has presented four reasons for the need of the policy on
trade development in mountainous regions of Vietnam.
1.2.2.2. Roles of the policy on trade development in mountainous regions
The policy has presented roles of the policy on trade development in
mountainous regions, which are: the policy on trade development in
mountainous regions is the part of socio- economic policy; is one of factors
composing regional socio- economic strategy affects the circulation of goods in
mountainous regions, other regions and for export; contributes to national
industrialization and modernization; boosts the shift of economic structure;
exploitation potentials and comparative advantage of each area.
1.2.3. Principles and objectives of the policy on trade development in
mountainous regions
1.2.3.1. Principles of the policy on trade development in mountainous regions
Principles of the policy on trade development in mountainous regions
are reviewing the policy on trade development in mountainous regions from
different aspects, identifying strengths and weaknesses of that policy for trade
development of mountainous regions.
1.2.3.2. Objectives of the policy on trade development in mountainous regions
Objectives of the policy on trade development in mountainous regions
depend on subjects enacting the policy who is the State in the Central or local
authority. The State promulgates general policy, the local authority specifies
policies to suitable for its locality, area.
1.2.4. Main policies on trade development in mountainous regions
The thesis has presented 06 policies on trade development of
mountainous regions including: The policy on goods and service development;
the policy on trader development; the policy on market development; the policy
on trade infrastructure development; the policy on border trade development;
the policy on trade human resource. The thesis has presented definitions,
objectives, content of each policy.

mountainous regions of countries
a) Facts of China
While researching on China’s experiences of the policy on trade
development in mountainous regions, the thesis has presented experiences of
the policy on trade infrastructure; sustainable development; goods and service
development in the direction of “ Special Economy”; development of human
resource; border trade development of China.
b) Facts of Thailand
The thesis has presented experiences of the policy on trade infrastructure;
goods and service development; Thailand market development.
1.4.2. Learned lessons for Vietnam
Through research on trade development policy in mountainous regions of
countries like China, Thailand, the author has gained lessons, which are: (1)
Extending autonomy for the governments of mountainous localities; (2)Focusing
on developing socio- economic infrastructure of mountainous region; (3)Specially
focusing on developing advantageous products of mountainous regions; (4)
Focusing on expanding and developing the mountainous market; (5) Focusing on
developing human resources for trade of mountainous regions; (6) Enhancing the
support policy on finance; (7) Creating jobs for people, especially ethnic
minorities.


Chapter 2
REAL SITUATION OF THE POLICY ON TRADE
DEVELOPMENT OF MOUNTAINOUS REGIONS – RESEARCH
ON REAL SITUATION IN SOME NORTHERN MOUNTAINOUS
PROVINCES
2.1. General real situation of trade development in some
Northern mountainous provinces
2.1.1. Socio- economic characteristics of

The total retail sales of goods and the revenue of social consumption
service of Northern mountainous provinces have been growing sharply, GDP in
total and its structure have changed significantly. Types of services have
developed dramatically, especially business service in border provinces. The
market system has developed diversely, infrastructure have been upgraded;
mentally and cultural life have been improved; the face of mountainous rural
regions have changed. Economic and trade exchange have contributed to
promote culture and art exchange, service and tourism development.
Trade of State has implemented the supply of policy goods to ethnic
minorities. With more than 75% of commune groups having state-owned sales
points (including agents), over the past few years, state subsidies on some essential
commodities have contributed significantly to stabilize the market, improve lives
of ethnic minorities. Private trade has developed rapidly and increasingly taken a
high share in retail, contributing to the rich, lively market. Recent statistics show
that there are currently 1,859,218 non-agricultural individual businesses operating
in highland and mountainous provinces. Total retail sales of goods and services in
the highland and mountainous provinces in the past five years was over 280,000
billion VND per year (an average increase of 19.35% per year).
2.1.3.2. Real situation of export and import turnover
In recent years, the import and export activities of mountainous and
highland provinces, especially provinces having borders with China, Laos and
Cambodia, have been strongly increased in both forms, turnover and
commodities. Out of the total of 43 border gates(with 8 international border
gates, 19 national border gates and 16 non-quota border gates), more than 80%
of border gates are located in northern mountainous provinces, with 7 out of 8
are international border gates and 7/19 border gates are applied preferential
policies. The real situation of import and export turnover is shown in Table 2.3.
Table 2.3: Export and import turnover of trade goods and service
The country
Mountain regions


9,3

8,7

8,4

(Unit: million USD)
2016
99.056
4.457,5
4,5
4.358,5
4,4
8.518,8
8,6

Source: The author analyzes from annual abstracts of statistics in 2013-2016
2.1.3.3. Real situation of trade infrastructure


Besides types of trade infrastructure, market is considered to be an
important parts of trade network in every areas, localities, especially
mountainous provinces. Although more than 60% of commune groups had
markets, yet in general in mountainous regions, market network is sparse with
small scale, poor facilities.
2.2. Analysis of the real situation of the policy on trade development of
mountainous regions in provinces of Northern Vietnam
2.2.1. Real situation of the policy on goods and service development
2.2.1.1. Policy of the Central



In 2011- 2017 period, export and service turnover of Northern
mountainous provinces increased by 22 million USD. In 2011- 2017 period,
from 7806, 9 million USD in 2011 to 10002, 68 million USD in 2017, with the
unstable increase through years. The total export and service turnover of
Northern mountainous provinces in general was unstable, with a sharp increase
in 2016 and 2017. In 2011- 2017 period, the total export and service turnover of
Northern mountainous provinces increased by 1300 million USD, from 4450,1
million USD in 2011 to 5761,71 million USD in 2017, with uneven increase in
every years, the highest level increase was in 2013 with the total import
turnover reached 8889,25 million USD.
2.2.2. Real situation of the policy on trader development
2.2.2.1. Policy of the Central
The thesis has presented the real situation of the policy on trader
development of the Central such as: Developing retail trade companies,
developing wholesale trade companies; developing stores; developing the State
trade; The People of Committee of trade; private trade and policies support
traders in terms of land, science and technology, finance.
2.2.2.2. Policy of localities
The thesis has presented the real situation of the policy on trader
development in Northern mountainous regions such as: Hoa Binh, Lai Chau,
Quang Ninh and pointed out clearly objectives of trader development in each
policy of each locality.
2.2.2.3. Results of implementing the policy on traders development in Northern
mountainous provinces
From the implementation of the policy on traders development of the
Central and localities, the thesis has presented the results of trader development in
northern mountainous provinces. The secondary data and the research results of
primary data show that the number of traders has doubled in northern mountainous

of the Central and localities, as this policy has increased the volume of goods,
the supply for the market, some types of goods have strengths that increase
rapidly, prices of industrial crops accounts for 36.99% and fruit trees accounts
for 26.26%. The market of mountainous regions has changed fundamentally,
moving from the close, separated state to the state of free for circulation in
accordance with the law; transferring the purchase and sale of goods from the
mechanism of subsidy, heavy calculation "allocation, delivery" to buy and sell
under the market mechanism. Trade promotion activities have been effective,
the number of seminars together with trade fairs has been increasing. Trade
promotion activities has attracted companies and organizations of all domestic
and foreign economic sectors to participate.
2.2.4. The real situation of the policy on trade infrastructure development
2.2.4.1. Policy of the Central
The thesis has presented the real situation of policies on trade
infrastrucutre development of the Central with objectives to encourage
investment and the policy on supporting capital from the State Budget. Besides,
the State has had the policy on calling for investment capital from social
sources to develop trade infrastructure in mountainous regions.
2.2.4.2. Policy of localities
The thesis has presented the real situation of policies in Northern
provinces such as: Hoa Binh, Lai Chau, Quang Ninh on trade infrastructure
development with objectives to develop retail and wholesale infrastructure,
types of stores, goods warehouses that are appropriate with conditions of every
localities.


2.2.4.3. Results of implementing the policy on trade infrastructure development
in Northern mountainous provinces
Based on the policy on trade infrastructure development of the Central
and localities in Northern mountainous provinces, the thesis has presented the

trade in recent years, as it basically has maintained the average growth rate.
This is such a “leverage” to promote socio- economic development, safety and
defense, plays an important role in attracting investment in mountainous, border
areas. However, the management of border trade activities has had limitations
that has not been equivalent to the potentials.


2.2.6. The real situation of the policy on the development of trade human
resource
2.2.6.1. Policy of the Central
The thesis has presented the real situation of the policy on the
development of trade human resource of the Central with main objectives such
as: Focusing on developing and improving the quality, the efficiency of
education and training to improve the quality of trade human resource of
localities. Annually, the budget will be allocated to ensure the upgrading of
technical facilities and training capacity for universities such as Tay Bac
University, Thai Nguyen University, Hung Vuong University (Phu Tho) and
colleges and vocational training localities in mountainous regions, renovating
the training structure according to market demand; prioritizing the training of
on-the-spot cadres, ethnic minority cadres of localities, to implement a policy of
attracting talents and high-level technical workers in the trade industry to work
in mountainous provinces in the long run and at the same time speeding up the
training of on-the-spot trade human resources in line with the pace of trade
development of the mountainous regions.
2.2.6.2. Loal policy
The thesis has performed the real situation of the policy on the
development of trade human resource in Northern provinces such as: Hoa Binh,
Lao Cai, Quang Ninh with specific objectives which are: attracting and
facilitating trade companies and trained workers in the regional areas;
encouraging the development and the diversity of vocational trainings,

2.3.2. Validity of the policy
The thesis has evaluated the effectiveness of the policy on trade
development in mountainous regions. In fact, most of the policies have high
effectiveness and many policies on trade development in mountainous regions
have been implemented, many policies have been developed and contributed to
initial trade promotion in mountainous regions though the pace was slow, with
little impact on implementation.
2.3.3. Efficiency of the policy
On the base of practical policies of the Central and provinces, results of
secondary data research, the efficiency level of the policy on trade development
in mountainous regions has been evaluated as not high, and policy objectives
have not been completed.
2.3.4. Fairness of the policy
On the base of secondary data and results of secondary data research
about the fairness of the policy, the thesis has evaluated the policy on trade
development in mountainous regions, then there have been different priorities
for different subjects, especially trade companies of the State, big trade
companies. Small companies and households have had difficulties while
approaching and applying the policy on trade development in mountainous
regions.
2.3.5. Transparency and stability of the policy
The thesis has presented foundation, analysis and evaluation of the
policy and the declaration of objectives of policies in documents that are wrong


and intransparent, unstable in terms of applying policies. The State authorities
have had limitations in declaring the process of promulgation and
implementation policies among the State, companies and consumers or
individuals, organizations in mountainous areas, as it was intransparent and
unstable.

regulations; mountainous regions are poor regions with the small scale of
economy, GDP per capita is still low; the efficiency level of economic activities
is not high; the inability to self-balance state budget revenues and
expenditures); The economic potential is still limited, the level of economic
development, labor productivity, quality and efficiency of production and


business, material facilities are backward; The capacity for planning and
organizing trade policy implementation in mountainous regions has not changed
significantly.

Chapter 3
SOLUTIONS FOR COMPLETING THE POLICY ON TRADE
DEVELOPMENT IN MOUNTAINOUS REGIONS BY 2025,
ORIENTATION TOWARDS 2030
3.1. International and domestic context affecting the completion of the
policy on trade development in mountainous regions of Vietnam
3.1.1 Advantages
The thesis has presented advantages of international and domestic
context affecting the completion of the policy on trade development in
mountainous regions of Vietnam such as: the growth rate of economy has been
higher than previous ones; the stability of politics; progresses in the socioeconomic development of mountainous region.
3.1.2 Difficulties
The thesis has presented advantages of international and domestic
context affecting the policy on trade development in mountainous regions such
as: difficulties, challenges while joining in FTA; the low starting point of
mountainous regions; the weakness and deficiency of trade infrastructure in
mountainous regions; the average- quality of human resources; the qualification
skills of managers have not met the demand of new context.
3.2. Opinions, objective and orientation to complete the policy on trade

To reach the annual growth rate of value of total retail goods and service
in mountainous regions by 2025 as 10-12 %. To develop products, goods with
brands as specialty, potential and strength of the mountainous regions to be sold
in markets, supermarkets, trade centers in the country and for export.
To develop human resources of trade management in the area then to
ensure 100% trade managers are trained for skills, profession to develop trade
in mountainous regions. The number of quality traders, companies from all
elements of economy joining in trade activities in mountainous regions
increases from 8-10% by 2025.
3.2.4. Orientation to complete the policy on trade development in
mountainous regions of Vietnam by 2025, orientations toward 2030
The thesis has presented the orientation to complete the policy on trade
development in mountainous regions with the focus on some policies, which
are: orientation to complete the policy on goods and service of industries like:
agriculture, forestry, aquaculture, goods for consumption; orientation to develop
traders and retailers, wholesale companies; orientation to urban market, rural
market, orientation to complete the policy on border trade development.
3.3. Basic solutions for complete the main policies on trade development in
mountainous regions of Vietnam by 2025, orientations toward 2030


3.3.1. General solutions
As for the Central: On the basis of the master plan for socio-economic
development of each region (the northern midland and mountainous areas, the
Central Highlands, the North Central and the South West), the land use
planning, development planning needs to have a plan to develop a master plan
of trade development in mountainous regions in 2020- 2025 period, orientation
towards 2030. It is also needed to check and eliminate overlapping policies that
are inconsistent with international commitments. At the same time, propaganda
and dissemination to companies in order to have a comprehensive awareness on

to focus on boosting the production development so as to shift the economic
structure of the mountainous regions towards commodity production; to
develop industries, trade and services for production activities in mountainous
areas, to create conditions for expanding the market capacity with increasingly
diversified demands; To shift the structure of labor from upland agriculture to
non-agricultural ones, to create on- spot jobs, to increase incomes and purchase
level of the people. That is the premise and the material basis for the
development of traders.
3.3.2.3. Solutions for completing the policy on market development
It is necessary to formulate and re- structure industries, producing fields
to have areas specialized in forest, agricultural goods production in large scale
for market supply and meeting the demand for on- spot production and
consumption as well as supplying for domestic market and producing activities;
to reorganize the system of the State trade companies in provinces in the
direction that the State trade companies play the key role in controlling the
market for a number of important commodities and materials such as petrol,
fertilizer, cement, steel, chemicals; to make good links between producers and
traders in the consumption of agricultural products and supplies of production;
to adjust, rearrange and upgrade traditional trade networks suitable for the
population's consumption; to strengthen the economic and trade cooperation
between the provinces of mountainous areas.
3.3.2.4. Solutions for completing the policy on trade infrastructure development
Referring to trade infrastructure, it is needed to improve the formulation
of trade infrastructure development in mountainous regions; to manage source
of investment land for trade infrastructure to meet the current demand for the
suitability for the increase of investment plans and the expansion of types of
future trade infrastructure in terms of scale; to promote the socialization of trade
infrastructure development, to contribute to call for and use efficiently sources
that are not in the Budget like social source; to encourage credit organizations
to join with companies or ensure the credit investment in the system of trade

training for improvement of the professional to enhance the awareness and the
policy obedience of businessmen in business activities to improve the efficiency
of the State management in trade, complete the organizing structure of the
authority responsible for trade management at all levels; Increase education and
training programs for trade managers of the State; Improving skills, capacity of
employees, officers while formulating and implementing the policy on trade
development.
3.4. Conditions for the implementation of solutions
3.4.1. As the State and related Ministries
The State and related Ministries should continue to complete, develop and
regulate the system of synchronous, sustainable, long lasted policies on trade
development in mountainous regions which are appropriate with the typical
characteristics of mountainous regions. The system of policies on trade
development in mountainous regions needs to be brought out quickly, timely
adequately, which relates to aspects such as the total goods retail and the service
revenue, export and import turnover, trade infrastructure in mountainous regions,
border trade, and trade in mountainous regions.
3.4.2. As trade companies


Trade companies should pay more focus on policies of the State; on
training, specialized skills improvement to meet the demand for company
development and international economic integration, including: company
management training, supply chain management, logistics center management
and the training of skilled, professional employees in trade business.
CONCLUSION
The policy on trade development in general and the policy on trade
development in mountainous regions in particular play an important role in
socio – economic development in the direction of industrialization,
modernization. In the context of the increasing integration, trade has had more

With the above content, the thesis basically has answered research
questions and gained the research goal. The author hopes to receive
contribution opinions of scientists, managers, experts for the better thesis.