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View of Experiences in the Blue Economy Development of Northeast Asia Countries in the Context of Industrial Revolution 4.0 – Implication for Vietnam

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Experiences in the Blue Economy Development of Northeast Asia

Countries in the Context of Industrial Revolution 4.0 – Implication for

Vietnam

Dr. Pham Ngoc Tram1, Dr. Ngo Hong Diep2*, MSc. Phan Thi Cam Lai3

1, 2,3 Thu Dau Mot University (TDMU), Binh Duong, Vietnam *Corresponding Author’s Ngo Hong Diep, diepnh@tdmu.edu.vn

Article History: Received: 10 November 2020; Revised 12 January 2021 Accepted: 27 January

2021; Published online: 5 April 2021

____________________________________________________________________________________________________

Abstract

In the 21st century, in addition to the growing population and the depletion of land-based mineral and energy resources, the development of coastal economic sectors has become a new global concern. Therefore, all marine countries in the world consider the development and use of marine resources an essential part of their national development strategy. The marine economy gradually stimulates competition among nations. This article is based on the synthesis of documents to learn and analyze experiences of coastal development in some Northeast Asian countries in the context of the Industrial Revolution 4.0. From there, draw reference lessons for Vietnam.

Keywords: Northeast Asia, blue economy, implication

____________________________________________________________________________________________________

Introduction

Industrial Revolution 4.0 is the combination of technology in the fields of physics, digital technology and biology, creating completely new production possibilities and having a profound impact on economy, politics, the society of the world. In this context, the development of the blue economy emerges as a new growth engine, a solution for nations to increase their influence in seas and islands, especially areas with large marine resources, resource reserves, oil, disputed areas and areas with important trade routes in the world (Costanza, 1999).

The blue economy plays an increasingly important role in the context of the industrial revolution 4.0 of the sea countries (Liu, Xu, Wang, & Xie, 2017). According to The EU Blue Economy Report 2020, the marine economy brings the European Union 218 billion euros of value added growth (GVA) with a profit of 94 billion euros. As for the US, in the 2020 report of the National Oceanic and Atmospheric Administration (NOAA), the marine economy brings the US $ 318 billion in GDP. For China, since 2010, the marine economy has contributed 240 billion USD to this country's GDP. In addition to developing major marine economic sectors to serve the country's economic development, major nations are adopting marine strategies to expand their influence (Duong, 2021).

Northeast Asia's coastal zone is a dynamic and fast-growing region in the world. A survey by the United Nations (UN) found that between 1960 and 2003, the average economic growth rate of China, Japan and South Korea was 5.35% (S.K Kim , 2008). The contribution of the

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marine economy to the national economy of the Northeast Asian countries increased from 6.46% to 13.83% in the period 2000-2011, and the average annual growth rate during the same period. That period was 7.17%. This contribution mainly comes from the contribution of marine capital to the national economy, accounting for about two thirds of the marine economy's contribution to the national economy (Jiang, Liu, & Su, 2014). This remarkable development is attributed to reasonable marine economic development policies from the governments of Northeast Asia.

The coastal zone of Vietnam includes 28 provinces and cities with a population of 20 million people, with a variety of diverse resources. Recognizing the importance of the sea to the economy, since 1993, the Government of Vietnam has implemented comprehensive policies to develop coastal areas towards industrialization and modernization (Cuong & Van Cu, 2014). As a result, Vietnam's coastal area began to have remarkable changes in socio-economic activities and contributed more than 50% of GDP to the national economy (Phong et al., 2019). However, in the process of developing marine economic sectors, Vietnam is facing difficult problems such as: Exploiting the potential of aquatic resources is ineffective, unsustainable and it doesn’t control exploiting situations for each sea area leads to the gradual depletion of marine resources in coastal areas. Some marine economic sectors have been identified as prioritizing to make breakthroughs but develop slowly, not commensurate with their potential conditions... The problem for Vietnam is to find effective solutions to overcome the shortcomings in the process of developing marine economic sectors, in order to make Vietnam a rich and prosperous country from the sea.

This research is based on the survey, synthesis and analysis of documents to clarify experiences in coastal development in some Northeast Asian countries, namely Japan, China, and Korea, from which lessons learned to refer to Vietnam.

LiteratureReview

The experience of the blue economic development in Northeast Asian countries is interested in researching and approaching from many different perspectives by scholars around the world.

Assessment of potentials and conditions for economic development in Kim and D.-K seas in Cooperative maritime security in Northeast Asia (D.-K. Kim, 1999) and Cunzhuang, L., & Limin, H. in Research about the disparities of the development of marine economy about coastal provinces in China (Cunzhuang & Limin, 2014) considers that the Northeast Asian sea not only has an important position in the Asia-Pacific region, but also a place having many resources to develop marine economic sectors: fishing, marine transportation, aquaculture, marine tourism...

Research on the remarkable marine economic development of Northeast Asian countries Urata, S. from the theoretical and historical point of view in the article Globalization and regional economic integration in East Asia. In Regional Integration in East Asia (Urata, 2013) believes that the marine economy has played an important role in globalization and economic integration in East Asia.

Zhao, L., Zhang, Y., Jiao, X., Wu, D., & Wu, D. have analyzed the blue economic efficiency of a particular country in Northeast Asia, China in An evaluation of Chinese marine economy efficiency based on SBM and Malmquist productivity indexes (Zhao, Zhang, Jiao, Wu, &

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Wu, 2016). The authors, through assessing the blue economic efficiency of Northeast Asia proposed many solutions to promote marine economic growth model in the direction of depth.

In addition to the analysis of the economic strengths of the Northeast Asia Sea, some studies also point out the limitations of environmental pollution, warn the extinction of some seafood species due to overfishing and recommendations for to develop sustainable fisheries in Northeast Asia waters; and promoting fisheries cooperation among countries Korea, China and Japan for common resources is probably necessary ... of Shin, Y.-M. in the article A Strategic Approach for Regional Fisheries Organization Establishment in Northeast Asia (Shin, 2013).

Sharing the cooperation model and experiences on fisheries of the countries in the Northeast Asia region in the face of the increasingly serious problem of marine pollution and fiercely criticizing the policy of "first development and then environmental protection” of China, author Rahman, in Concepts of maritime security: A strategic perspective on alternative visions for good order and security at sea, with policy implications for New Zealand indicates, 1991, industrial waste of China The kingdom thrown into the river included 1,836 tons of heavy metals, 1,127 tons of arsenic, and 4,666 tons of cyanide (Rahman, 2009). The article has analyzed the maritime security situation, the war perspective on alternative visions for maritime order and security in Northeast Asia and the world, with policy implications for marine economic development.

Research by YIN, K.-d., GAO, W.-j., & XU, H.-l. Analysis on boom index and fluctuating characteristics of marine economy in China (YIN, GAO, & XU, 2013) cited data from the Department of Fisheries and Port Authority of the Bohai Zone, under the Ministry of Agriculture, about 20 % of the fisheries resources in Bo Hai (the northwest pole of Hoang Hai) have been severely damaged by environmental pollution and overfishing. At the same time, the authors also analyze the boom index and volatility characteristics of China's marine economy in recent years and forecast its limitations.

Jiping, Z., Jiaxing, H., & Jianming, Z in The Problems of Regional Cooperative Governance of Northeast Asia in Marine Environment Based on Interest Perspective analyzed quite in-depth the issues of regional cooperative governance. Northeast Asia in the marine environment based on an interest-based perspective; At the same time, it is recommended to improve the quality of the marine environment in the region and northeast Asian coastal countries (Jiping, Jiaxing, & Jianming, 2018).

Zhang, Y.-g., Dong, L.-j., Yang, J., Wang, S.-y., & Song, X.-r. In the study Sustainable development of marine economy in China analyzed the perspectives on sustainable marine economic development, from Chinese practice. The research affirms that such sustainable development must achieve a harmonious development of the ecosystem with economic benefits and social equity; At the same time, there must be a harmonious development between man and the sea for the sustainable use of marine resources; the land and sea economies have grown steadily (Zhang, Dong, Yang, Wang, & Song, 2004).

This study extends the data analysis approach of Tingley, D., Pascoe, S., & Coglan, L. in Factors affecting technical efficiency in: stochastic production frontier versus data envelopment analysis approaches (Tingley, Pascoe, & Coglan, 2005). At the same time, using

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the method of estimating the technical efficiency of fishing vessels of Jamnia, A., Mazloumzadeh, S., & Keikha, A. in Estimate the technical efficiency of fishing vessels operating in Chabahar region, Southern Iran ( Jamnia, Mazloumzadeh, & Keikha, 2015); Use Random Production Border (SPF) and Data Analysis (DEA) to evaluate the technical efficiency of fisheries production on the English Channel and analyzed the factors that affect the efficiency of aquaculture production. (Maravelias & Tsitsika, 2008).

In addition, this study also compared the DEA model in the studies of Tongzon, J. in the article Efficiency measurement of selected Australian and other international ports using data envelopment analysis (Tongzon, J. 2001); Pang, R. in the Dynamic evaluation of main sea ports in mainland China based on DEA model reflects the dynamics of shipping activities in China based on the DEA model (Pang, 2006); Wanke, P. F. in the article Physical infrastructure and shipment consolidation efficiency drivers in Brazilian ports: A two-stage network-DEA approach (Wanke, P. F, 2013); Li, B., & Gao, Y in The analysis of the regional marine economic efficiency disparities in China use SFA to experimentally study the technical efficiency of China's marine economy (Li & Gao, 2010).

Research Methods

In terms of methodology, this study on the one hand inherits the methods and approaches of the above authors, on the other hand uses document survey method, inductive method, logic ... to analyze and evaluate experiences in marine economic development in Northeast Asia and providing policy implications for Vietnam.

Research results

1. Experience in the blue economic development of Japan

As a coastal country, Japan attaches great importance to the formulation and implementation of the National Ocean Policy of Japan. The blue economic development policy of Japan aims at synchronous socio-economic development, people's life, promotes the harmony between the ocean and people, between positive and peaceful development. sustainable use of the sea through international cooperation, in accordance with the 1982 United Nations Convention on the Law of the Sea (UNCLOS) and other relevant international treaties.

Since 2007, Japan has issued the Basic Law on Ocean Policy with the following contents: 1) Determining the responsibilities of the authorities at all levels, localities, businesses and people with issues related to the sea; 2) Propose principles and regulations in dealing with the relationship between the development and use of marine resources and conservation and protection of the marine environment; 3) Ensuring security and safety at sea; 4) Promote marine scientific research; 5) Development of marine industries; 6) Comprehensive and integrated marine governance; 7) International cooperation on sea.

Since the Second World War (1945), the Japanese government has expanded its fishing activities in accordance with international laws and conventions. The government invests heavily in science - technology and finance for this industry. In addition, to meet the needs of import and export of goods, the Japanese Government attaches great importance to ensuring maritime safety and security, avoiding sea port disruption, and paying attention to and strictly managing the operation associated with marine environment protection. Thanks to these

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important policies of the Government, it has contributed to increase the value of the contribution of ocean industries to the national economy with 7.4 trillion yen, of which the seaport industry contributes 99% of income from trade with foreign trade and 42% of income from domestic trade (Nakahara, 2009). From Japan's marine economic development, some experiences can be drawn:

- Japan has promoted the role of the local government in such fields as fishing, protecting the coastal marine environment, conserving marine ecological zones, developing island economy ... As mentioned above, Japan's ocean policy is implemented independently, in an integrated manner, and effectively.

- With the characteristics of an island nation, Japan focuses on building seaports and effectively exploiting the seaport system in strengthening national defense, economic potential, promoting industrial development and national brand advertisement through cultural and scientific activities associated with seaports.

2 Experience of China

Since its inception, the People's Democratic Republic of China has gone through the first thirty years (1949-1979) with many difficulties and challenges, not getting rid of poverty and backwardness. However, only after the next thirty years (1979 - 2019), thanks to reform and opening up, China has developed into a country that, according to foreign experts, is to break all development records of the world.

According to the "12th National Five-Year Marine Economic Development Plan", China has increased strategic investment in emerging marine industries, under which three key marine economic zones have been established: the Vong Cung-Bohai Sea region, the Yangtze River Delta and the Pearl River Delta region (Jiang et al., 2014). Marine economic policy indicates that China's marine economic development has gradually shifted from traditional marine industries to emerging marine industries, from the planning of a single industry to sustainable, intensive areas (Gries, Grundmann, Palnau, & Redlin, 2018). During the 18th National Congress of the Communist Party of China, the government came up with the idea of "building a maritime power," and since then, the marine economy has been identified as a key industry. (Wang, Guo, & Han, 2014).

The success of coastal economic zones has prompted China to build up an innovative coastal sub-region economic integration model (Yang, 2017). Successful experiences drawn from China's coastal economic development are:

- China has the right maritime economic development strategy and policy, which vividly reflects the achievements of China's five coastal special economic zones: Shenzhen, Zhuhai, Shantou, Xiamen and Nam Hai. China's coastal special economic zones have well implemented the planning and strictly complied with the "National Marine Development Plan" and are provided with maximum institutional conditions to become a "magnet" to attract foreign investment capital in service of economic development.

- China has succeeded in choosing the location to build coastal economic zones, maximizing geographical position, creating synchronous connection and linking infrastructure, promoting other competitive advantages (capital markets, foreign suppliers, airports, seaports, traffic)... - China has taken advantage of the spillover effects of coastal economic zones, promoting business value chains, providing services to connect across the region and social networks;

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create input and output links with the whole region's economy and closely link with the domestic economy.

- One of the successful experiences gained in the coastal economic development of China is the formation of belts connecting coastal economic zones to form a chain of belts facing the sea. The technical infrastructure connection makes the output markets of coastal economic zones more and more synchronous in trade, sea transport, marine tourism and logistic services.

3. Experience in marine economic development of Korea

Korea is a peninsula country that has 15 marine protected areas, 4 environmental management waters and 5 specially managed waters to accomplish specific goals.

In recent decades, Korea has been known as one of the leading countries in sustainable development, an active member of the United Nations Environment Program on marine environmental protection; is a country participating in many international environmental conventions such as the United Nations Convention on the Law of the Sea, the London Convention, the United Nations Convention on Biological Diversity, the Climate Convention, and many agreements, and other multilateral environment.

South Korea's marine economic development policy in the medium and long term is integrated management of sea and islands, building a fairly complete legal system, creating a premise for sustainable development of the marine economy (Hong, 1994). Korea has developed and issued 3 Laws related to marine environment management: Law on marine environment management, Law on marine ecosystem conservation and management, Law on wetland conservation (Jang, Hong, Lee, Lee , & Shim, 2014), (Cho, 2006). Many coastal localities in Korea have successfully applied this management method with the proper use of resources, protection and improvement of natural resources, the environment, and harmonious and appropriate industry management practices (Hong , 1995). As a result, by 2009, it is estimated that the total value added of the marine economy is 5.5% (of which directly contributes 2.46% and indirectly is 3.4%) of the total GDP of Korea (Korea. Maritime Institute, 2009). The success of Korea's marine economic development policy has motivated provinces across the country to develop integrated management plans at the provincial level to reach 70% in 2006.

From the success of South Korea's marine economic development policy, some experiences can be drawn:

- Actively apply planning and integrated management of marine and coastal areas to ensure the goal of sustainable development and improve the responsible community in the effective management, exploitation and use of marine and island resources. The management of natural resources and the environment in Korea is conducted on the basis of a very detailed, transparent, modern and synchronous legal system of macro management policies. In particular, policies related to employees' rights and interests, such as salaries, bonuses and social welfare, have been relatively complete and strictly implemented (Dat, 2020).

- Korean managers and experts on strategic advice, policy formulation and marine economic development plans are facilitated to train and learn from other developed countries' experiences. Therefore, there are more and more high qualifications and prestige contributes to the success of Korea's marine economic development policies (SG Kim & Choi, 2013).

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4. Policy implications for Vietnam

Vietnam is one of the countries with maritime advantages, favorable geographical position on international maritime routes, deep seaport, and favorable conditions for maritime development, marine tourism and marine aquaculture. The economic scale of marine and coastal areas of Vietnam averaged about 47- 48% of the national GDP, of which the GDP of the “sea” economy only reached about 20-22% of the total GDP of the country. Infrastructure in marine, coastal and island areas, though newly invested, is still weak. The small, fragmented seaport system, the network of ships and the equipment are generally outdated and inadequate, resulting in low efficiency.

From the experience of developing the marine economy in Northeast Asian countries, to develop a sustainable marine economy, we believe that Vietnam needs to focus on the following groups of solutions:

Firstly, building the port infrastructure system. Reference to experience in marine economic

development from Japan shows that, if Vietnam wants to develop a marine economy, it is necessary to improve, upgrade and modernize the seaport infrastructure system because this trading place is busy like regular traffic. Vietnam but also with the participation of many regional and international countries. That is an opportunity for Vietnam to develop and reach out.

Secondly, to select key marine economic sectors to develop first, creating "growth poles" to

promote socio-economic development of the coastal areas of our country. Through research, the areas that currently coastal Vietnam have the most advantages are: coastal resort tourism, fishing, aquaculture, coastal economic zone, seaport. Experience from China shows that it is necessary to make the most of the geographical advantages of a number of regions, which are considered the "growth poles". This will help to accumulate many key investment resources in areas where this country has an advantage.

Thirdly, lessons on awareness raising and mobilization of all resources, all sectors and all

classes of people, to participate in economic development in coastal areas. Vietnam can learn from Korea in propaganda and mobilization of people to raise awareness and responsibility in economic development in coastal areas. To propagate and mobilize marine economic enterprises, people and specialized forces to contribute human and wealth to the cause of marine economic development in association with environmental resource protection and national defense and security.

Fourthly, lessons on investment in science and technology are aimed at preventing risks of

unsafety, security and order as well as aiming to exploit without harming the marine environment. Science and technology, marine research, marine exploitation and marine economic development play a particularly important role, this is a common investment trend of all countries in the world. Science - technology brings great benefits not only to economic development but also to activities of risk prevention, early detection to prevent encroachment, prevent threats and threats to the country, peace on the sea, and islands.

Fifthly, strengthen the promotion and branding for the marine economic sub-sectors.

Branding for the sub-sectors of Vietnam's marine economy must meet two requirements: 1) Bring the unique characteristics of each locality; 2) Set in the connection context of the entire region. Building regional brand names helps localities and businesses develop economy,

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promote commercialization of local products, thereby helping to improve the living standards of local residents. The connection with neighboring localities creates the strength of the whole region and helps to attract foreign investment, develop trade in goods and tourism.

Conclusion

Nowadays, the sea holds great potentials for the socio-economic development of Vietnam, in which the outstanding benefits are geographical location, mineral resources and human resources. In recent years of renovation, recognizing the importance of the sea to the country's development, the Government of Vietnam has issued and implemented many important guidelines and policies to exploit potentials and benefits of the sea for economic development and encouraging results.

Experience of Northeast Asian countries shows that, promoting the advantages of coastal areas will create a spillover force for domestic economic development, be a lever for effective and sustainable socio-economic development considered as one of the strategic breakthrough priority directions to turn Vietnam into a rich and powerful country from the sea, leaning against the sea and facing the sea.

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