LUẬN văn THẠC sĩ socio economic changes in dong anh in the innovation period luận văn ths khu vực học 60 31 60

Reasons for the study

With the goals up to 2020 that, our country will basically become an industrial country, our country’s industrialization and modernization process has more and more rapidly and strongly happened, but quite complicated in all cities and provinces This process has changed the socio-economic face of localities at various levels; and promoted the urbanization process The urban development in several big cities such as: Hanoi, Ho Chi Minh City,… has impacted on not only the economy – society – environment on the field of those cities but also the surrounding districts and provinces strongly

Together with the comprehensive change of the country, Dong Anh, a suburb district in the North of Hanoi City is stepping into innovation period and created the significant changes in all aspects However, nowadays, to foster the comprehensive development process, take full advantage of its socio-economic potentials, Dong Anh district should form and perform a long-term strategy for its sustainable development by itself Therefore, to explain the socio-economic changes in the district, not only figures are taken to prove those changes in two different periods but also we will find out the other reasons, which control those changes, and then take solutions to promote and adjust the socio-economic development in Dong Anh District With the goals, we selected the subject

“Socio-economic changes in Dong Anh in the innovation period” for research and expected to find out the major characteristics of the process, which changed structure and operating-mechanism of the economy in Dong Anh; showed and analyzed the major changes in the social structure and relationship in Dong Anh Not only figures are taken to prove changes in two different periods but also from that we will find out the reasons, which control those changes, and then take solutions to foster and adjust the socio-economic development in

Dong Anh On that basis, we hope that we will contribute our effort into the socio-economic development in Dong Anh.

Literature review

2.1 The study of the process of socio-economic change and the socio- economic changes in Vietnam in the innovation period

On consideration of the economic changes, the authors Le Thong, Do Thi Minh Duc, Nguyen Viet Thinh, Vu Nhu Van agreed that they were purely changes in the structure including economy structure, structure of territory and structure of economic components

According to Encyclopedic Dictionary: the social change is “a concept, which mentions changes in specific conditions and operating methods, or in a specific structure of a group, a specific social organization, or even in the whole specific society The social change is in various levels in individual aspects of the society, and created evolutionary-based changes It can appear on all aspects of the society and gradually change the society In a certain period, it will create great advances, deep changes, substance transformation from this status to another one (urgent transformation, revolution) The revolution is the most peremptory time of the social change”

In the social changes in Vietnam after more than 20 years of innovation,

Prof Dr Hoang Chi Bao (Central Theoretical Council) said that, “Until the present, (2008), Vietnam has innovated for 20 years, more than one-fifth of the century In this time, there have been many changes in the aspects of the society in Vietnam such as the social change or change in the social side, the social aspect in the overall society.” [3]

In Changes in the socio-economic structure in Vietnam in the period of 1986-

2000, Prof Dr Nguyen Dinh Le focused on the following issues: The Party’s innovation opinions and socio-economic orientations in the five-year plans

(1986-1990, 1991-1995, 1996-2000); Impacts of the international background on innovation task in Vietnam; changes of structure in investments, gross products, national expenditure; growth and density changes in the economic sectors, change of structure in sectors….; changing labor forces in the society; growth of economic sectors; changing class-social structure; income and living standards of the people; the gap between rich and poor; the significant achievements and matters in question in the industrialization and modernization career [17]

In Changes in the cultivated land structure and the agricultural economics in

Red River Delta in the innovation period (by surveys in several villages and communes) Prof.Dr Nguyen Van Khanh emphasized on the following issues: changes in the rural areas in Red River Delta in view of the cultivated land and agricultural economics in the innovation period; impacts of policies of agricultural innovation on the socio-economic situation in several villages and communes in Red River Delta … [12]

Regarding the interactive relationship between the economic changes and the social changes, according to Marxist theory of production mode, “Change and development process of the society is dependent to mode of production The history of the social changes and development is the history of changes and development of mode of production” It can be seen that, studies are in this view identical in the same point and affirmed that a group or a system of social aspects – social problems – social policies and social security system has strong ties and connection with the social changes In this system, it is seen that: Any changed thing is the social change, or social matters have the dialectical relationship with the economic matters The social changes is firstly expressed through the social problems, which are directly questioned in the daily life together with demands and interests of the human (Individuals, groups, genders, ages, generations, communities and so forth) or the social consequences arisen from economics and political impacts, operations

Generally, the studies are not only unified in the facts, the main social structure, which is directly resulted from the socio-economic structure but also on refers to the socio-economic changes, the author emphasizes on the structural changes and impacts of socio-economic policies on the socio-economic changes in the whole country or in a quietly large area This is the theoretically reliable fulcrum for our application into the study of socio-economic changes of a particular field – Dong Anh

2.2 Studies of the socio-economics change process in Hanoi in the innovation period

Dang Duy Loi, the author of Hanoi geography and Le Thong in the book of

Geography of provinces and cities in Vietnam have quite fully implemented the studies of the social-economic aspects of provinces, cities in general and Hanoi in particular; and summarized the basic socio-economic changes in Hanoi in recent years (especially after the innovation period) However, the authors mostly approach to it in the geographical view Therefore, analyzing those changes will take not only development sources but face with difficulties, not deeply explains in various aspects

In the socio-economic changes in the edge of Hanoi in the urbanization process, the author Nguyen Huu Minh and his colleague noted that:

“Urbanization process has created the strong changes in life of the people in the rural area, especially in edge of the city It is possibly considered that the edge of Hanoi is the buffer zone for transition from rural to urban form and clearly reflects impacts of the urbanization process in the rural areas.” [23]

Or Do Thuc, the author of rural area of Hanoi on innovation way, the statistics journal, No 2, 1997 also referred to the major changes in the rural areas of Hanoi in recent years in all careers and sections as well as in transition period of the rural area …

In the volume of Influences of the natural conditions on Hanoi Capital development and planning, the summary record of Thang Long – Hanoi Management and Development Seminar, KX09, Hanoi Publisher 2008, Prof.Dr

Truong Quang Hai, the chairman Tran Thanh Ha, Assoc Prof Dr Vu Van Phai clearly pointed out the characteristics of the nature and its influences on the socio-economic development of Hanoi Capital, especially on planning development strategies of the capital in the future

From the studies above, it is possibly seen that the socio-economic activities of Hanoi has been quite comprehensively paid attention to study However, most of them focused on changes of occupations, income structure and living standard; of residential houses, infrastructure and environment (especially housing and land matters, food sources, waste treatment and so forth)

In the master planning of socio-economic development in Dong Anh until

2020, Dong Anh People’s Committee referred to the following main contents:

Potentials and development resources of Dong Anh District; The actual situation of socio-economic development in the district in recent years; the contents of the master planning of socio-economic development in Dong Anh district in the period of 2001-2010; solutions for the master planning in Dong Anh District and proposals

In the book Dong Anh and Thang Long – Hanoi Thousand- Year Civilization of Dong Anh district Party Committee – People’s Council – People’s Committee, a long-term development process of the district was mentioned This work discussed about the administrative, geographical matters and the historic- cultural values of Dong Anh; establishment and defense history of the country; and Dong Anh and innovation task, attached with development orientation of Dong Anh [38]

The purposes of the study

The results of the thesis will clarify the socio-economic changes in Dong Anh since 2000, especially show the basic characteristics of the transition process in the point of view of structure and operating mechanism of the economy in Dong Anh; take and analyze the basic changes in structure and social relationship in Dong Anh

Thence, we will propose orientations and effective solutions to uphold the strengths and minimize the negative problems in the district as well as focus on the sustainable development strategy

To achieve this goal, the thesis will complete the main duties as follows:

- Systemizing socio-economic changes, clarifying related concepts

- Surveying, collecting related figures as required

- Analyzing, explaining the major socio-economic changes, achievements and restrictions in Dong Anh District

- Taking orientations, forecasting several socio-economic changes in the next time, and proposing feasible solutions.

Object and scope

Object of the study

The object of the study is the socio-economic change in Dong Anh District, Hanoi City since 2000, especially changes in structure and operating mechanism of the economy; the major changes in structure and social relationship in Dong Anh.

Scope of the study

Location: Dong Anh District, Hanoi City

Time: Focusing on the 2000-present period.

Significance

- Scientific significance: the thesis contains a new awareness of a process of socio-economic change in rural area in Vietnam in general and in rural area in the North Vietnam as well as in Hanoi in particular from a specific field - Dong Anh District

- Practical significance: From the reasons as above, the results of the thesis offer the scientific recommendations to promote industrialization – modernization and sustainable development process in Dong Anh District.

Structure of the thesis

Besides the introduction, the conclusion, the appendix and the list of reference documents, the contents of the study include three chapters as follows:

Chapter 1 Dong Anh: General Remarks

Chapter 2 The main socio-economic transformations in Dong Anh since

Chapter 3 Orientation of socio-economic development in Dong Anh

DONG ANH: GENERAL REMARKS

Strengths and development resources – promoting factor for socio-economic

Dong Anh is a suburb district in the Northern gateway of Hanoi Capital It has the natural area of 18,230 ha (182.3 km 2 ) Its natural boundaries with other districts of Hanoi are Red River, Duong River in the south of the district, which is the border between Dong Anh and inner Hanoi, and Ca Lo River in the north of the district – the border between Dong Anh and Soc Son district The administrative border of Dong Anh district is determined as follows:

+ In the north: Next to Soc Son District, Hanoi

+ In the south: Next to Tu Liem, Tay Ho district and Long Bien district, Hanoi

+ In the east north: close to Yen Phong District and Tu Son District, Bac Ninh Province; in the east south, close to Gia Lam District, Hanoi

+ In the West: bordering Me Linh District, Hanoi

Dong Anh area is quite large compared with suburb districts in Hanoi, and stands on the seventh position after the districts Ba Vì, Soc Son, Chuong My,

My Duc, Thach That, Ung Hoa

With the quite large natural area, lying in the north of Red River and close to inner Hanoi, Dong Anh plays a strategic and important role in urban development orientation of Hanoi Capital with the advantages as follows:

- Strategic traffic location: Dong Anh is the gateway, which connects traffic activities of Hanoi and the Northern provinces At the present, two railways are running through the field of Dong Anh: railways connecting the center of Hanoi and Thai Nguyen and Lao Cai; highway connecting the center of Hanoi to the international airport Noi Bai – the gateway for commercial exchanges with the world; highway and roads to the Northern provinces Its advantageous position for traffic activities is the strength for the comprehensive social, economic and cultural development in the district in the future

- Strategic position for urban development: With orientation of urban development along to two Red River banks, Dong Anh and Long Bien district will become the strategic positions for urban development of Hanoi Capital in the next years With the advantage of quite large land fund, big urban projects will be implemented to form a main urbanized field – Dong Anh in Hanoi in the future

- Extremely important position for socio-economic development: With its strategic position as above and big potentials, Dong Anh will become a main district for attracting investments and economic development Those will be the advantageous conditions for Dong Anh’s socio-economic development

In the history, Dong Anh is for twice times selected as the capital of the country (An Duong Vuong Period and Ngo Quyen period) Currently, Dong Anh is one of the focuses in the urban development strategy of Hanoi in the early XXI center That is pride and also to assert the extremely important position of Dong Anh in Hanoi and the whole country

DONG ANH DISTRICT AND HANOI CITY

Generally, Dong Anh topography is relatively flat and slopes gently from the west north to the east south The district’s communes in the west north including Bac Hong, Nam Hong, Nguyen Khe have relatively high topography The south- east communes including Van Ha, Lien Ha, Duc Tu, Co Loa, Mai Lam have relatively low topography, and mostly cultivation land area has in low and hollowed topography, and regularly flooded The highest position is 14m and the lowest position is 3.5m, average height of 8m compared with sea level

The topographical characteristics of the district should be paid attention to determine structure of plants and animals, the specializing area or build industrial zones, processing areas and so forth The eastern and east south areas of the district are potential for agricultural, urban and ecological development; for the northern and west-north area of the district, it is possible to develop the concentrated large-scale industrial zones; for the west and the center of the district, large area for green trees and the agricultural area have formed a green belt for present-day inner Hanoi, moved towards the sustainable urban development, which is harmonious with the environment

Dong Anh’s climate is similar to Hanoi City’s that is tropical, humid and monsoon climate

From May to October, it is summer It is wet and rainy From November to April of the next year, it is winter Its climate is dry-cold, but drizzly and wet at end of the season The transition stage of two seasons forms four different seasons including spring, summer, fall and winter in Dong Anh and Hanoi

Annually average temperature in Dong Anh is 25 0 C, the hottest months are June and July, the highest average temperature is 37,5 0 C in July, Two coldest months are January and February, and average temperature of January is 13 0 C

Average humidity in Dong Anh district is 84% It is seldom changed in months of a year and regularly fluctuates in range of 80 - 87%

Number of rainy days is 144 days at the annually average rainfall of 1600 mm - 1800 mm The rainy season (from May to October) reaches 85% of the whole-year rainfall The large rains appear in August at the average rainfall of

300 - 350 mm In the beginning months of the winter, it is few rainy but the end half of the rainy season, it is drizzly and wet In the winter, it is bound by the northeastern monsoons

In short, Dong Anh’s climate is advantageous to agricultural production, especially kinds of crop plants such as food, flowers, vegetables and crops and fruit-trees However, storms, floods in the summer and the northeastern monsoons in the winter also cause certain impacts on production and life of the people

Total natural land area of Dong Anh is 18,230 ha, including a part of Red River, Duong River and the alluvial land The land on the river banks is rich of alluvial, but land in interior fields is less fertile, 70% of it is infertile soil

Average land area in Dong Anh Town is 212 m 2 /household Average agricultural land area per a labor is 0.051 ha This is the lower rate compared with the average rate of Red River Delta Land area and for inhabitants including land for gardens and service works in hamlets and villages 1940 ha, average land area for living activities in the rural area is 364 m 2 /household A quite large area in the district is used for military purposes including defense facilities, training facilities of the army

Agro-forestry land can be divided into the main kinds as follows:

Socio-economic resources

In 2010, total population in the field of Dong Anh District was 350,541 persons, equaling to 4.7% of the population of Hanoi Capital Dong Anh district has the largest quantity of population compared with the external districts and is in the third position to total districts in Hanoi (behind Dong Da district and Hai

It is possibly said that, the large scale of population as mentioned above is the main resource for Dong Anh District’s development However, if the natural growth rate of population is not controlled, it will be a big obstruct for its development For the reason, controlling the natural growth rate of population is the main task in the next time

Since 2006, in Dong Anh district, the mechanical growth rate of population has been rapidly increased In recent years, the mechanical growth rate of population has been higher than the natural growth rate of population It means that urbanization process in the district begins to speed up It also means that, it is necessary to take proper solutions and policies in the next time so that urbanization process of the district will not spontaneously happen and cause the unrecoverable consequences in the next time

Total persons at working at in Dong Anh District is 203,505, equaling to over 51% total population (2010) The full number of human resources is the most important one for socio-economic planning and development in Dong Anh District in the next time

Labour ratio working in economic sectors is 98% total human resource in the field of Dong Anh District in the stage of 2006 - 2009 Basically, Dong Anh district has successfully mobilized a labour force into production and business activities in the field in the last time

Not only quantity but also quality of human resources in Dong Anh district has been considerably improved in recent years.

Socio-economic development in Dong Anh District

Dong Anh is a suburb district of Hanoi City and in recent years, Dong Anh district’s the economy has gained the positive changes Its economic structured moved in according to industrialization and modernization orientation; annual average economic growth ratio is nearly 10% Life of the population has been continuously improved; the aspects of the society have shown their economic achievements The overall picture of Dong Anh economy is expressed in the following table:

Table 1.2 Several main socio-economic criterions of Dong Anh district in 2005 and 2010

3 Ratio of general production value:

4 Economic structure in the field

+ Compulsory general education and equivalent 70,0 100,0

+ Rate of national standard schools 25,0 50,0

+ Rate of pupils with two classes/day in primary schools 75,0-80,0 100,0

+ Rate of pupils with two classes/day in secondary schools 30,0-35,0 90,0-95,0

+ Annual number of employed labors Person 2000 5000

+ Traffic land/urban land ratio % 10,0 15,7

+ Number of km(es) for traffic activities/km 2 km/km 2 1,8 3,2

+ Standards of domestic fresh water supply liter/day and night 170 180

+ Rate of population using fresh water % 95 100

+ Average production value per capita

+ Average production value of the agriculture and services per ha of cultivation land

Source: Dong Anh Statistic Office, 2010 1.3.1.1 Industry

Dong Anh’s industries are subject to topography of each region It is concentration into the industrial zones The first industrial zones have been formed since 1970 – 1980 on the highway No 3 This region is distributed in area of approximately 70 ha and currently 22 enterprises are in the mechanical industry, constructional materials… Before, most of this region included the State enterprises, which are currently capitalized The industrial facilities in this region had a quite large area, low constructional density, not-high land use coefficient and scattered (not as per the model of concentrated industrial zones)

Industries in this region are assessed that they have not been highly polluted

According to the planning of the city, a part of this region will be used for the industrial facilities, which are moved from the inner city

North Thang Long Industrial Park on Kim Chung commune, Vong La, Hai Boi is associated to invest by Sumitoro Corporation (Japan) and Dong Anh

Mechanical Company Total area of the industrial park is 295ha This is the biggest concentrated industrial park in present-day in Hanoi with 121 ha of the completed stage I and 77 ha of the completed stage II

North Thang Long Industrial Park has a complete infrastructure with a system of water supplies, electric supplies and communication, a traffic system easily connecting to the harbor and international airport

North Thang Long Industrial Park is a concentrated industrial zone, which is efficiently operating and attracting many labors in Dong Anh District In the stage I and II, fill-up rate of infrastructure-on-land is 100% The stage III has been under completion of the technical infrastructure

Dong Anh small and medium industrial zones with total area of 96 ha in the field of Nguyen Khe commune This is one of 49 small and medium industrial zones/clusters in the field of preset-day Hanoi Fill-up rate of the park is currently over 20%

Besides, in the field of Dong Anh District, a concentrated small scale zone is implemented in Lien Ha and Van Ha Commune

Lien Ha and Van Ha are two communes with the strongest villages in Dong Anh, including Lien Ha, which is developing industrial wood career (Painted wood) and Van Ha, which is developing carpentry, carving, fine arts and household wooden products Potential of two trade village is very large

Moreover, Duc Tu is a developing trade village of metal (iron scissors);

Vong La, Co Loa: food processing and noodle-making; Van Noi, Dong Hoi: weaving career, household commodities made from bamboos; Bac Hong, Uy No with garment industry

Now, in the field of the district, there are about 1,600 enterprises (mostly joint stock companies and limited companies) and more than 13 000 business individuals

In recent years, trading and services have, in the field of the district, well developed Goods and services have been more and more diversified in kind, pattern and met demand of the population in the district However, distribution system in the field of Dong Anh District has not developed as in other districts, especially compared with districts in the city Dong Anh has not built up a modern distribution system including supervisors, convenience store Now, there is only one commercial center in the district, which is combination of residential buildings and general businesses at Dong Anh town Distribution system in the field of the district is for businesses and modern goods exchanges on basis of a network of markets distributed in communes and town

In spite of decreased cultivation areas, unfavorable conditions of the weather in recent years, kinds of harmful insects, epidemic diseases of livestock and poultry dịch are possibly spread; annually agricultural production has continuously developed and reached the good growth rate Average agro- forestry and aquatic production value is continuously increasing approximately over 3% in the stage of 2006 - 2009 In 2009, in the agricultural structure of the district, breeding density is 59.8%, density of cultivation is 40.2%

In recent years, one of the positive orientations of Dong Anh’ agricultural sector in the stage of 2006 - 2009 is the process that focuses on and hasten change of crop-structure in direction of producing commercial plants with high economic values, applying scientific and technical advances in agriculture, formed area of specific crops such as safe vegetation area, flower area, area of specific rice, area of corn and so forth at total area of approximately 25%

Dong Anh has become an address of providing safe vegetables, fresh vegetables hybrid catfish, which are selected by many population In recent years, those products have been rapidly increased At the present, there are total 97.670 pigs and total 12.610 cows

In the field of Dong Anh District, there are 277 farms including 133 approved farms Many models of economic farms have shown their high economic efficiency (average revenue of a farm is VND250 million that has solve 1000 labors/year) The district has made and approved planning of crop structure changes in 23 communes

1.3.2 Socio-cultural situation 1.3.2.1 Education – training

Nowadays, in the field of Dong Anh District, there are 83 educational facilities from kindergartens to secondary schools including 28 kindergartens, 29 primary schools, 25 secondary schools and 01 complementary school, total 2795 teachers to 57,935 pupils at levels This is the main force of educational carreer in Dong Anh District, which forms the basis for qualified personnel training in the localities so as to hasten industrialization and modernization

In recent years, entrance ratio at levels in Dong Anh District has increased compared with the plan; education quality of all population is kept stable and goal quality of education has been raised In the stage of 2008 – 2009, graduation rate was 98.7% (including 65.1% of them as good and excellent pupils); 74/105 city-level excellent occupational certificates In 2010, in the whole district, total 23 schools were satisfactory Management quality has had many positive changes Teams of teachers in the sector have basically completed and been stable

Education socialization has been strengthened and schools have done their duties of advice to the locality well, mobilized resources in the society for investments into education such as supports for building material facilities, purchasing equipment and so forth, and that will form a better teaching context in schools

1.3.2.2 Health, population and family-planning

In the last years, Dong Anh District has always strengthened management and raised efficiency of examination and treatment for the people in the local health stations; actively monitored and prevented the harmful epidemic diseases from spreading in the field of the district

General assessment of potentials, advantages, difficulties and challenges in

in development process of Dong Anh district

As stated in the analysis and assessments above, it is possibly seen that, socio-economic development process in the next years in Dong Anh District is quite advantageous but face with many difficulties and challenges to implement the development objectives

1.4.1 Advantages for socio-economic development 1.4.1.1 Strengths of the natural conditions

- Dong Anh has the advantageous position for economic cooperation and exchange with other districts of Hanoi Capital and the Northern provinces

- Land fund is the first advantage of Dong Anh district in urbanization process and the comprehensive socio-economic development in the field of the district so as to successfully implement the general objective of the city: to be ahead of the whole country for 5 years of industrialization and modernization

1.4.1.2 Advantages of socio-economic conditions

- Human resource is quite plentiful; enthusiasm is an important factor for Dong Anh’s attracting investments, developing careers, hastening movement of economic structure in direction of industrialization and modernization

- Road, railway, and waterway system in Dong Anh district is near to national highways, major highways in the area Dong Anh district is adjacent to Noi Bai international airport – the largest air terminal in the north, the gateway of the city and country That is the main advantage to develop comprehensively and synchronously economic, cultural and social fields of the district

- The cultural tradition of thousands of years, depth of the history of communist movement and its unique values have been maintained and upheld

This is the great driving force for sustainable development of Dong Anh district

- Potential of goods and service markets of the district is quite large, especially in the condition that Socialist-oriented market economy and the international economic integration are focused on This is the factor that plays an important role in attracting investments, promoting productions and business in the field of the district

- The policies, which are set down in the Orientation Master Plan for Urban Development by the Central and the City, have facilitated the district to develop in the industrialization and modernization direction

- Socio-economic situation is weak and not proper to its potentials that created a low starting-point in industrialization – modernization process and breakthroughs are difficultly reached

- Labor force of Dong Anh is quite large but in small quality, slowly adapts to market mechanism, and does not meet requirements of the new sectors and business fields This drawback may reduce Dong Anh district’s advantages in attracting domestic and foreign investment, especially big investors

- The economic growth and urbanization process, which has been spontaneously formed in the past time, is making the important questions to Dong Anh District Economic growth is the result of production increase, but increase in production activities, especially in trade villages, without controls has made the ecological environment seriously polluted, influenced to quality of life of the people and the socio-economic sustainable development in these areas

Urbanization process has been just started in Dong Anh; because there is no planning orientation, arisen problems are slowly solved; it is facing with many complex social problems, especially unemployment, social evils after agricultural land is revoked This is a big challenge for Dong Anh in the urbanization process in the next years If it is not addressed, it will curtail achievements of development process

- A infrastructure system in the field of Dong Anh district has not been consistent and poor Infrastructure conditions in rural residential areas are very outdated and clearly show inadequacies in the urbanization process In addition, North Thang Long – Noi Bai route and other routes in the field of the district have downgraded or overloaded Its internal traffic activities have been separated that cause certain obstacles in connection of towns This inadequacy of infrastructure system cause major difficulties for attracting investments and development in the district

- Source of capital of the district is very limited Its economy has not developed, number of enterprises in the field is little (approximately 200 residents/1 enterprise – averagely 80 residents/an enterprise in the whole city), its accumulation is low To make socio-economic development plans to the year of 2020, Dong Anh district should be based on the external capital sources, especially foreign investments It can be regarded as a quite big challenge

Because if it is depend on the external factors, it is difficult for it to be active in its development process And if the external factors are changed, its objectives for development are difficultly reached

Generally, many difficulties and challenges are being posed in development process of Dong Anh district in the next years that require the proper solutions for its development objectives.

MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH

Common theory of socio-economic changes in Vietnam in the innovation period

Structure of the national economy is the whole relationship of quality and quantity in components for a certain time, space and socio-economic conditions

In the scope of this thesis, structure of the economy is reflected from the point of view of structure of the economy and structure of economic components

Each economic component plays an important role in that structure and the correlate of this structure is shown in structure of economy In the macroeconomic aspect, major kinds of structure of economy including structure of territory, structure of the economy, and structure in production relationship of the economy are considered “a frame” of the economy

Structure of economy includes all sectors of the national economy It is merged in accordance with a proper relationship of quantity, shows relationships amongst sectors and reflects growth of the economy

During process of economic development of a country, economic subjects always act according to the actual economic efficiency In a certain level, the State’s development planning will impact on structure of investments However, finally, the results are shown through its structure in all aspects Its structure of economy always changes more proper That change is movement of structure of economy In general, movement of structure of economy of a country regularly depends on several external and internal factors

The internal factors are as follows:

- Advantages of the nature of the country allow developing certain proper production sector; population scale of a country; qualification o human resource; the economic and cultural conditions of the country

- Additionally, demand of each society, each market in every stage will be development and production basis, which satisfies not only quantity but also quality of goods, and causes changes of position, density of sectors in the economy

- Objectives, strategies, planning of economic growth of each national economy significantly impact on change of economic structure Because the economic structure contains objectivity, historical and social factor, social policies of the State can indirectly impact a part of structure of economy through development and investment orientations, encouragement or restriction policies for careers so as to ensure balance of the economy in accordance with the objectives as set out in each certain stage

- Finally, qualification of domestic production forces will allow the quick or slow change of structure of the economy and how it is effective

Besides the factors with internal impacts, main factors with external impacts on transformation of structure of economy will contain:

- The political, economic, social trends in the region and in the world The political, economic and social changes of a country or several countries, especially big country will strongly impact on streams of exchanged goods and then on attracting investments, technological transfer… that require countries to adjust their strategy of economic growth, structure of economy to ensure their national interests and development under the general moves of world market

- Nowadays, globalization trend of the world economy is very strongly impacting on structural change of the economy in different countries, because division of labor is deeply and widely taking place in the world opportunities of large markets are open in globalization process of international economy that allows countries to exploit strengths of each other to exchange resources, capital, technology, goods and services effectively and so forth That process is compulsory It facilitates countries to implement the structural change of the economy in line with division of labor on a world scale

- Achievements of scientific and technical revolutions, particularly information technology create breakthroughs and great strides in all production fields, which have contributed into accelerating structural change of the economy of countries because timely and rapid communication will help to adjust productions and businesses more reasonably and their production structure will be changed in line with the markets and interests of each country

Under the general effect of these factors above, the economic sectors (generally including three main sectors: agriculture, forestry and aquiculture - also known as agriculture, industry and construction - also known as industry; and services) have been unevenly developed, created different ratios in structure of economy of the country However, the notable point is that, any State pays their attention to determine to which orientation their country's economy should follow to maximize their interest and strive to achieve the highly effective structure of economy Therefore, by the practice, in most of countries currently select the model of their structural change of the economy in the orientation promoting exports to uphold all advantages of the country, engage in division of labor on the whole world scale, to take all opportunities to create deeper and larger trend of globalizing economy

To follow the strategy of an open economy, the effectively international integration, the structural change of the economy plays an important role

Because domestic production must be changed so that not only potentials, advantages of the country can be used but also proper products are made in accordance with the demand of the international market In the general context that, division of labour has more deeply happened, completion of exporting countries is becoming more strictly, and the local authority wants to develop productions of the country in accordance with a general strategy, selecting a proper and highly effectively structure of economy is very important However, nowadays, the next export-oriented industrialization countries should not use the previous models Because under impacts of new factors, the comparative traditional advantages are not appropriated as before they were, the structural change of the eonomy of the subsequent countries should be considered again to build up a structure of a modern, balanced, active, rapidly growing and more sustainable economy

To investigate structure of an economy, main matter of that structure is the structural change of economic sectors, change of the economic components and structure of territory of that overall structure, at various stages the positions of economic sectors have been changed to meet the conditions and general trend of historical development That process is called the structural change of an economy

The structural change of economy is a socio-economic reformation process for the purposes of proper professionalization, technical equipment, modern technologies and thereby creating high and effective productivity in jobs and promoting the economy The structural change of economy is an unavoidable and objective factor, and a gradually development process based on close combination of subjective conditions, socio-economic and natural advantages of the country, the region, and units, and possibility of investment, cooperation or joint ventures in manufacturing, service and consumption of products with other countries and regions and various economic units

In Vietnam, the structural change of economy plays an important role in socio-economic innovation career The previous improper structural change of economy was mostly self-sufficiency Structure of industrialized and modernized economy is closely connected to technological innovation and reorganization of production The short term orientation is that agricultural industrializing and modernizing is changed into the agricultural - industrial - service structure in rural areas; comprehensive development of agriculture, forestry and aquiculture associated with agro-forestry and aquiculture processing; developing industries and exporting and consumer goods production; expanding businesses, tourism, services; boosting foreign relations of the economy; building and reforming infrastructures; selectively building several important heavy industrial facilities Implementing economic development policies many components including State economy, cooperatives, individuals, small holders, and private sectors is a long-term and strategic issue

State takes policies and measures to create incentives and an advantageous environment so as to develop economic components in various types and appropriate sizes

If changes of a structure are viewed only according to the economic sectors, it will be lack of one space direction – change of territorial structure

Structural change of territory is known as the proportion-based change of regions in a country scope and spontaneously or self-consciously arranged [28]

In each period, various territories will have individual advantages, and according to their development policies, value of economic production in each region in the same territory will have a change That change is objective, but, if there is any irrationality, right policies can be gradually changed in the positive way

2.1.4 Change of structure of economic components

In the overall economy, structure of economic components is the proportion- based correlation of economic components attending sectors, fields of components of economy [33]

In our country, economic components have been determined as an important role in each component:

- The State's economy plays a main role and a driving force for economic growth These economic components embrace key economic sectors associated with managing resources of the country, with security and national defense and other important fields

- Collective economy plays an important role and in many forms of organization on basis of voluntary, equal, democratic participation and mutual interests

- Economic individuals, small holders with enormous potential also play a critical and long-term role for socio-economic development of our country

After innovation period, these economic components are facilitated to develop faster and have reached a high density

- Private capitalist economy has had certain contributions to the economy through resources of capital, technique, technologies, management and market

- State capitalist economy has huge potentials in form of joint venture between the State and capitalism in the country and abroad

- Foreign-invested economy has, in recent years, been significantly developed, aimed at producing goods and services for exports, high technology and building infrastructure

The structural transformation of economic components is to change contribution rate of production value of the components in the overall economy.

Changes in structure and economic relations of Dong Anh since 2000

2.2.1 Changes in structure of economic sectors

In ten recent years, Dong Anh district’s economy has reached many changes

Total revenue of the whole economy has increased more than 300 times (from VND153,967 million in 2000 to VND48,948,012 million in 2008), development order can be arranged as follows: commerce- service-transportation, industry- constructional sector and agriculture

Table 2.1 Total income of State owned enterprises as per the economic sectors in Dong Anh District in the stage of 2000 - 2010

Source: The annual publication of Dong Anh District in years Regarding speed of economic growth, in a period of 10 years, economic growth ratio was averagely 10%

In the overall economic structure of Dong Anh District, there have been obvious changes, correlation of production value of the industry has been constantly changing over the years, and that transformation is the positive change in line the general trend of development in accordance with the following table:

Table 2.2 Structure of economic sectors in Dong Anh District in period of

Source: The annual publication of Dong Anh District in years

From the chart above, we can see that, in the last 10 years, the economic structure of Dong Anh district has positively changed in accordance with industrialization – modernization orientation It is an increased rate of the area II (industry – construction) and the area III (commerce - service - transportation)

In the economic structure of Dong Anh, the area II occupies more than 75% of production value of the whole economy, and the area I is below 10% Although the rate of the area III has rapidly risen, it is not high, less than 20% In intuition, the chart below clearly shows that changes in years.

Nông nghiệp Công nghiệp - XDCB Thương nghiệp - Dịch vụ - Vận tải Đơn vị (%)

Figure 2.1 Structural change of economic sectors in Dong Anh in period of

2000 - 2010 Source: based on the statistic figures provided by

Dong Anh Statistic Office in years

Overall, annual growth rate of industry is more than 10% However, considering the internal structure of the industry, industrial groups at lower levels, there is over-time change of value and contribution rates

2.2.2.1 Changing economic structure in industry

In the studies of production value and number of production facilities in the industrial economic sectors in the period 2000 - 2009 showed that, number of production facilities, number of employees and production value of industrial groups has very large change Groups of sectors with the highest production value are food processing, producing beverages, clothing, leather, fur; processing wood, bamboo products; products from metals, beds , cabinets, furniture These sectors have huge consumer market, not only in the country but also for export However, it is easy to see that production sectors require high technologies and high qualification, which is very little

Table 2.3 Number of facilities, labors and value of industrial production in the period of 2000 - 2009

In 2000 In 2002 In 2004 In 2006 In 2009

Stru ctu re L ab o r (Per so n s) Pro d u ctio n v alu e VND m illi o n Stru ctu re L ab o r (Per so n s) Pro d u ctio n v alu e VND m illi o n Stru ctu re L ab o r (Per so n s) Pro d u ctio n v alu e VND m illi o n Stru ctu re L ab o r (Per so n s) Pro d u ctio n v alu e VND m illi o n Stru ctu re L ab o r (Per so n s) Pro d u ctio n v alu e V ND m illi o n

Clothes, leather and fur production

Handbag, shoes and sandal production

Drug production and pharmaceutical chemistry

Beds, cabinets, tables and chairs

Electric and water production, distribution

Source: based on the statistic figures provided by Dong Anh Statistic Office in years

To assess production value of industries based on the economic components, each economic component shows its individual value This is shown through the following:

Table 2.4 Production value of industries as per the economic components in Dong Anh District in the stage of 2000 - 2009

In 2000 In 2002 In 2004 In 2006 In 2009

Facilitie s Pro d u ctio n v alu e ( Pric e 9 4 ) VND m illi o n Facilitie s Pro d u ctio n v alu e ( Pric e 9 4 ) VND m illi o n Facilitie s Pro d u ctio n v alu e ( Pric e 94 ) VND m illi o n Facilitie s Pro d u ctio n v alu e ( Pric e 9 4 ) VND m illi o n Facilitie s Pro d u ctio n v alu e ( Pric e 9 4 ) VND m illi o n

Source: based on the statistic figures provided by Dong Anh Statistic Office in years

From the table above, number of production facilities and industrial output value in accordance with the economic components in Dong Anh District in the period 2000 - 2009 has continuously increased and there is a difference amongst the economic sectors

During this period, total number of agricultural facilities increased from 2,104 (in 2000) to 3,520 (in 2009), increased 1,416 (equaling to 16.7% of increase in the period), especially the general economic components reached the fastest growth ratio: more than 252 facilities (23.9%), followed by the individual components: 1154 (15.5%) facilities Meanwhile the private components increased not much: 10 facilities; the collective economic sector did not increase in number of facilities

The total value of industrial production in the district in the period 2000 -

2009 increased VND1,228,166 million (increasing more than 70 times), especially the general economic components with increase of more than VND 913,346 million (increasing more than 113 times), followed by the individual components with increase of VND149,945 million (twice) The growth above is due to the competitive nature of the economic sectors in the market economy and the policies of the Party and the State as well as Dong Anh District Those are capital, legal policies and identification of role of the economic components in the market economy

When structure of industrial production value of the economic sectors is reviewed, we will see changes in the period 2000-2009 Two groups of economic sectors tend to reduce structure of the collective and individual contributions Particularly, the individual components have fastest reduced, from 93.7% (2000) to 24.2% (2009) Meanwhile, the general economic activities have rapidly increased and affirmed its absolute structure of more than 70% of total industrial production (2000: 5.1%) (See table 2.5) This is the result of equalization policies of the Party and State in the past

Table 2.5 Structure of industrial production values in Dong Anh District as per the economic components in the period of 2000 - 2009

In 2000 In 2002 In 2004 In 2006 In 2009

Source: based on the statistic figures provided by Dong Anh Statistic Office in years

This difference is visually realized using two following diagrams:

Comparative diagram of structure of industrial production values as per the economic components in in 2000 and 2009

Tập thể Tưnhân Cá thể Hỗn hợp

2.2.2.2 Economic changes in agro-forestry and aquiculture

In recent years, agro- forestry – aquiculture economics has a profound transformation in of cultivated area, water surface area for aquaculture and production value Currently the agriculture structure has strongly changed to gradually reducing land area for rice cultivation, annual crops, perennial crops and increasing surface water area used for the agriculture Specifically only from

2000 to 2010, total area of 600 thousands of ha has decreased from 9814.5 thousands of ha (2000) to 9250.2 ha (2010) The reason is that area of rice production slightly increase approximately 100 thousands of ha in the last 10 years (from 9165 ha in 2000 to 9250.2 ha in 2010), while crop land area and industrial plants area tend to decline nearly 1,000 ha (8,478 ha from 2000 to

7527 ha in 2010) Besides surface water area used in the agriculture tends to increase from 496.8 ha in 2000 to 615.2 ha in 2010, an increase of nearly 200 ha

Total agro - forestry - aquiculture value has changed and strongly increased production value of braising and aquiculture, gradually reduce role of farming and forestry In the past 10 years, production value of agriculture sector increased 3.4 times, in which breeding values strongly increased in 2010 and reached VND883,767 million, more than 5.1 times in 2000 value of agricultural services increased, in 2010 increased by 14, 1 times higher than in

2000 While role of cultivation had reduced much more, production value in

Changes in structure and social relations

The change in economic structure will inevitably lead to social changes On the contrary, social change is a driving force for the economic change This is a dialectic relationship of the issue in question Identifying such change, we choose the following sections:

2.3.1 Changes in scale of manufacturing facilities and the number of centralized labors by economic sectors in industry

In the period 2000 - 2009, total number of industrial labor facilities kept increasing, by 1.6 times (1426 facilities) whereas labor force was increased by more than 4 times (15,131 labors)

Table 2.10 Number of manufacturing facilities and labor force divided by economic sectors of industry in Dong Anh district

Source: Figure processing from Dong Anh Statistics Office through years

It can be easily seen through the above table that individual and mixed economic sectors attract the most labors However, recently, individual economic sector has tended to decrease in terms of the number of manufacturing facilities and labor force in proportion to mixed sector The most equally increased sector is the mixed sector This proves the flexibility of the people in economic activity to keep pace with the present social background

Cơ sở Lao động Cơ sở Lao động Cơ sở Lao động Cơ sở Lao động Cơ sở Lao động

Năm 2000 Năm 2002 Năm 2004 Năm 2006 Năm 2009

Tư nhân Tập thể Hỗn hợp

Table 2.11 Labor rate in the industry by economic sectors in the period

Source: Figure processing from Dong Anh Statistics Office through years

Comparison of industrial labor structure among economic sectors between

Tập thể Tư nhân Cá thể Hỗn hợp

Tập thể Tư nhân Cá thể Hỗn hợp

2.3.2 Changes in scale of manufacturing facilities and the number of centralized labors in commerce and hospitality

Table 2.12 Scale of centrally labor manufacturing facilities in commerce and hospitality from 2000 to 2010

Source: Figure processing from Dong Anh Statistics Office through years

Manufacturing scale, number of centralized labors in commerce and hospitality tend to shift from the State economic sector to non-State economic sector Over the past 10 years, the number of households and labors in the State economic sector has been reduced from 4 households with 652 labors down to 1 household with 15 labors whereas the non-State economic sector has been increased quickly both in the number of households and in the number of labors

In 2000, the whole district had 13 households with 109 labors but in 2010, there were 703 households with 7968 labors, increasing by more than 100 times In the State economic sector, mixed economic sector saw the strongest increase from 6 households to 673 households and from 95 labors to 7655 labors

Cơ sở Lao động Năm 2000 Năm 2002 Năm 2004 Năm 2006 Năm 2009 Năm 2010 TỔNG SỐ 1 Nhà nước 2 Ngoài nhà nước Tập thể Tư nhân Hỗn hợp

2.3.3 Changes in scale of manufacturing facilities and the number of centralized labors in transport

In the transport industry, there is a strong shift from collective and individual economic sectors to mixed economic sector Over the past 10 years, collective and individual economic sectors have increased by about 3 - 4 times only whereas mixed economic sector has been increased by over 70 times In 2000, there was no business household in the mixed form but in 2010, there were 76 households with 1566 labors (Table 2.13)

Table 2.13 Number of facilities and labors in transport in Dong Anh district in the period 2000 - 2010

Source: Figure processing from Dong Anh Statistics Office through years

Cơ sở Lao động Cơ sở Lao động Cơ sở Lao động Cơ sở Lao động Cơ sở Lao động Cơ sở Lao động

Năm 2010 K.Tế Tập thể K.Tế Hỗn hợp K.tế Tư nhân K.Tế Cá thể

2.3.4 Changes in education - health, life quality of Dong Anh district in the period 2000 - 2009

In education, national education system always receives investment for development The number of schools, classes, teachers and students increases quickly In 2010, there were 28 kindergartens, increasing by 4 kindergartens from that of 2000, 736 teachers, over 19 thousand students, doubling that in 2000; 29 primary schools, increasing by 3 primary schools and 999 teachers and more than 50 thousand students As such, pre-school and primary school education branch has been attentively invested and expanded infrastructure whereas secondary schools and continuing education classes have not been increased over the past 10 years, reflecting the saturated trend in demand

However, in the coming time, there should be forecast to work out school network plan at upper level to prepare well for the lower levels of education

Health sector also saw a strong development Nowadays, the people’s life is enhanced; the demand for healthcare is increased, thus leading to vigorous change in the number of healthcare facilities Hospitals, communal and ward medical stations are not increased in terms of quantity but the number of private healthcare facilities was increased threefold from 66 facilities in 2000 to 182 facilities in 2010 Such private clinic system has basically met the increased demand of the people in the locality, thereby somehow reducing pressure for the hospitals Besides, the number of hospital beds is increased quickly but changes conversely Most of the hospital beds are increased mainly due to the expansion in area of the hospitals In 2000, there were 180 hospital beds but in 2010, there were 530 hospital beds, increasing by over 2.5 times In the long term, this is not a sustainable solution because it may increase pressure for the hospitals but in the present context, it is a feasible solution (Tables 2.14 and 2.15)

A big change in the cultural life of the people in Dong Anh district is the prevalence of urban lifestyle in the urbanization process The people have got themselves acquainted with urban lifestyle This is shown in some following indices: The rate of regular sport participants occupies 30% of the people; More than 90% of the families achieve the title of cultural family; nearly 90% of the villages and residential groups have cultural houses and community recreation places

Dong Anh district now pursue the following targets by 2020: 100% of the communes achieve new rural standard; the people’s life quality is enhanced

New rural construction has a lot of difficulties However, with the determination of creating resources, building rural areas in association with shifting structure of crops and animals, developing craft villages and services, new rural campaign is gradually formed clearly

According to the new rural construction plan, the whole district has shifted

989 ha rice land into flower, bonsai, safe vegetable land, moved the breeding away from the residential area, achieved high quality aquaculture, met the market demand The entire district has had 277 farms; agricultural production value per farming land area achieves 110 million VND/ha/year Besides advantages in agricultural development, Dong Anh organizes land auction fairly favorably, mobilizes resources for new rural construction In 2010, Xuan Non commune was piloted for new rural construction with investment in necessary things of 287 billion Vietnam dongs In 2011, 105 billion VND would be realized and the rest would be realized in 2012 To obtain the capital source, the commune has planned the intercalated land auctioning area covering 2,300 m 2 and prepared for auctioning in this May with floor price of 7 million VND/m 2 It is estimated that in 2012, the commune will continue auctioning 17,000 m 2 remaining intercalated land in the residential area The problem of infrastructure construction capital is solved Similarly, in Nam Hong, Van Noi and Tien Duong communes, the mobilization of resources for new rural construction from auctioning intercalated land is relatively favorable

However, the district also has some shortcomings such as slow and short- term planning that exerts great influence on the socioeconomic development

The investment in agriculture and rural areas remains low; the shift in agricultural production structure remains slow; the land-for-field work is difficult because the farmers often rely on the compensation for land acquisition from the project In the new rural construction program, the communes had many difficulties like Xuan Non commune, that is, according to the plan, 19/19 criteria must be completed by 2012 but such steps as making the project and establishing detailed plan remain slow and confused in many steps Until December 2010, the master project of the commune was approved At present, 70% of the farmers in the commune must depend on agricultural production because of the shift in production structure, the number of employed persons is reduced down to 30%; it is difficult to increase the income for the farmers from over 10 million VND/person/year to over 20 million VND/person/year by 2012

During the new rural construction, the district not only invests in upgrading the traffic, irrigational and power systems but also focuses on reorganizing production for economic development To accelerate the new rural construction progress, enhance the people’s living standard, the district focuses on fortifying the shift in crop structure under the approved plan in 23 communes, providing finance to land-for-field program Dong Anh district has intensified scientific and technical advance transfer to formulate large-scaled centralized agricultural production areas, created high quality goods such as safe vegetable in Van Noi, Tien Duong and Nam Hong; high quality rice in Thuy Lam, Duc Tu and Xuan Non; husbandry and aquaculture in Van Ha and Duc Tu From now to 2015, the district will support the land-for-field program in 12 communes; establish 12 agricultural encouragement clubs in 12 communes to provide the farmers with opportunities to exchange and learn production experience; establish 12 performance models of scientific and technical advances Consolidate and enhance activities of 133 agricultural co-operatives, diversify types of co- operatives in production and business such as business line co-operatives and safe vegetable production co-cooperatives Organize, guide the farmer households to cooperate, associate with economic and scientific organizations to get assistance in capital, processing technical advice and agricultural product sale to enhance production and business efficiency

Table 2.14 Number of schools, teachers and students at education levels from 2000 to 2009

Source: Processing from statistics of Dong Anh Statistic Office through years

Table 2.15 Changes in health from 2000 to 2009

- Ward and communal medical station 24 24 24 24 24 24

- Ward and communal medical station 96 96 120 0 0 0

Source: Processing from statistics of Dong Anh Statistic Office through years

ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF

Viewpoint and orientation of socioeconomic development of Dong Anh

In the socioeconomic development master plan of Dong Anh district to

2010 of the People’s Committee of Dong Anh district, the fortification of comprehensive socioeconomic development of the district must be based on the following viewpoints:

First, the district should bring into full play its role as the Northern economic development driving force of Hanoi city, create landscape and green belt to protect ecological environment for civilized and modern capital

Second, the district needs to take advantage of opportunity and chance to promote socioeconomic development of Dong Anh district at high, comprehensive and sustainable level in the direction of industrialization and modernization Strengthen the shift in economic structure in the direction of accelerating the proportion of industry and service trade, reducing the proportion of agriculture Continue strong shift in intra-industry structure in the direction of high-tech industry; intra-service structure in the direction of high quality and high grade service; intra-agriculture structure in the direction of commodity production, clean agricultural, ecological and urban development Establish and accomplish the infrastructure system ahead of time to accelerate the shift in economic structure in the district

Third, Dong Anh should create a favorable environment and condition for economic sectors to develop Bring into full play all resources, especially bring into full play and optimize all internal resources, attract external resources at maximum to focus on socioeconomic development of the district

Forth, it is necessary for the district to combine economic development with social advance and equity In conjunction with economic growth promotion, take notice of and solve urgent the people welfare and social issues such as: employment, environmental sanitation, social safety and order Especially, pay attention to training, enhancing quality of human resources to meet the development requirements of the district to 2020

Next, socioeconomic development of Dong Anh district is in accordance with the development strategy and master plan of Hanoi Capital with expanded administrative boundary and in the context of international economic integration Expanded Hanoi (incorporating Ha Tay province, Me Linh district - Vinh Phuc and 4 communes of Luong Son district - Hoa Binh) with area of about 3,350 km 2 and over 6.5 million people will develop quickly to deserve a Capital of a wealthy and powerful country in the future The development of Dong Anh district must be put into the general background, especially in accordance with the general development orientation of the Capital in terms of economic structure, urban and rural spatial layout

Finally, the district ought to grasp the viewpoint of the Communist Party of Vietnam thoroughly: economic development is the key task, Party establishment is the core task; investment in building rural infrastructure in an urban and modern manner and enhanced urban management and construction in the district are the regular and important task; cultural development is the spiritual background of the society; maintenance of political security, social order and safety; non-stop enhancement of material and spiritual life of the people

Dong Anh district should continue comprehensive and uniform renovation, exploit all potentials, resources to strengthen industrialization, modernization and urbanization, create requisite for sustainable socioeconomic development, maintain political security, social order and safety, keep increasing material and spiritual life of the people, coordinate with the capital to go ahead of the whole country 5 years in the industrialization and modernization

The district should intensify urbanization and formulate urban areas, industrial centers, trading and service centers; build Dong Anh into a big socioeconomic center as the development driving force in the North of the Capital by 2020

In economic development, the district must always pay attention to developing and taking initiative in international integration together with other districts to make the Capital really one of the leading cities in the industrialization and modernization cause Fortify economic growth and structural shift in the direction of industry - service trade - agriculture, enhance efficiency and competitiveness of the enterprises and economic facilities in the district, maintain and expand domestic and foreign markets Pay attention to rural agriculture Develop sectors, fields and products with association, inter- sector and high intelligence and technological content, great added value, market prospect at home and abroad, in accordance with comparative advantage of the Capital; gradually formulate and develop basic fields and sectors of knowledge economy; information technology, biotechnology, automation, telecommunication, high quality education and training, etc

The district should focus on accomplishing socialist-oriented market economic mechanism, uniformly developing markets and market supporting institutions, enhancing transparency, equality and democracy and openness of the economy in accordance with international commitments Boosting socialization, enhancing cooperation and association among enterprises, divisions, economic sectors, creating new development investment wave in the district

The economic development of the district must go together with urban development planning and be associated with preserving and improving ecological environment landscape, bringing into full play local historic and cultural tradition, enhancing material and spiritual life of all walks of life in the district

It is important for the district to give priority to developing infrastructure ahead of time in order to build basic technical material infrastructure for formulating new Hanoi in the North of the Red River in the direction of building a civilized and modern Capital in 2020.

Analysis based on SWOT of potentials and challenges in socioeconomic

SWOT analysis model is a very useful tool for grasping and making decisions in all situations for any organization

As an abbreviation of 4 words Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T), SWOT provides a tool for analyzing strategy, reviewing and evaluating position, orientation of a unit or a business project SWOT is suitable for working and analysis in groups, used to make socioeconomic plan, establish strategy, evaluate competitors, marketing, develop product and service, etc

SWOT analysis is to list all possible strengths and weaknesses of an object concerned Further, SWOT is aimed at an overview of all possible threats and opportunities (outside) in all actual fields related to the object

SWOT analysis is carried out by a person, a planner or a planning group

Such person or group of persons may analyze SWOT on their own or ask many members to fill in (under their direction) Strengths, Weaknesses, Opportunities and Threats The members invited to attend the seminar may be specialists in different divisions of the Government, possibly target groups, representatives of households, private factories and hospitals concerned

SWOT analysis is aimed at obtaining a quick overview of a certain situation at a certain time and in a certain location This should not be understood as an evaluation method because it fails to work out solution or option or compare opinions and create related decision

In the project planning and establishment process, SWOT analysis is used in the first phase and the second phase in identifying the issue and the demand, collecting and analyzing data Some issues may have been identified but the use of SWOT analysis remains important to consider further identification of the issue

The result of SWOT analysis may go further than the list of Strengths, Weaknesses, Opportunities and Threats After interpreting, collecting and analyzing items, SWOT analysis will lead to a list of priorities Moreover, SWOT analysis will orientate conditions of a strategic planning process

Figure 3.2 Expanded SWOT analysis model

Through carefully studying Dong Anh situation, we dare to adopt SWOT model to evaluate strengths, weaknesses, opportunities as well as threats of Dong Anh as follows:

3.2.1 Strengths (favorable conditions for socioeconomic development) 3.2.1.1 Politics and policies

Dong Anh, together with Hanoi and the whole country, now prepares to enter a new phase, the period 2011 - 2020 This is the period of intensified

Take advantage of opportunities to promote strengths

Grasp opportunities to overcome weaknesses

Take advantage of strengths to minimize threats

Reduce weaknesses to prevent threats industrialization and modernization to make Vietnam an industrial country in

2020 Hanoi space has been expanded after incorporating Ha Tay province, Me Linh district (Vinh Phuc) and 4 communes of Hoa Binh province under the Resolution No 15/2008/NQ-QH12 by the National Assembly Hanoi now covers about 3,300 km 2 and has around 6.5 million people These are especially favorable conditions for the Capital development

Furthermore, the policies adopted by the National Party Congress, Hanoi Party Committee and realization ability of Dong Anh district Party Committee are favorable conditions for Dong Anh to attract investment projects and big economic programs in the coming time

Geographical position of Dong Anh is favorable for the district to cooperate and exchange with other districts of Hanoi capital and the Northern provinces in economic development

Land fund of Dong Anh remains considerable, which is the leading advantage of the district in the urbanization and comprehensive socioeconomic development in the district

Labor force is relatively abundant and enthusiastic, which is a favorable factor for Dong Anh to attract investment and development of business lines, fortify economic structural shift in the direction of industrialization and modernization

Road, railway and waterway traffic system of Dong Anh is quite favorable with national roads, expressways in the district Dong Anh is close to Noi Bai international airport, the biggest airway junction in the Northern Vietnam, the international exchange gateway of the Capital and the country These are great favorable conditions for comprehensive and uniform development of economic, cultural and social fields of the district

Thousand-year cultural tradition, revolutionary historical depth and traditional identities are still preserved and promoted, which is a great driving force for the sustainable development of Dong Anh in the coming years

Potentials of goods and service market of the district are quite big, especially in the context of developing socialist-oriented market economy and international economic integration This is a motive force in attracting investment and promoting production and business activities in the district

3.2.2 Weaknesses (shortcomings in socioeconomic development)

In this regard, we are facing fierce challenges The world and regional political and economic situation develops complicatedly; financial crisis and global economic depression exert strong and direct influence on the socioeconomic situation of Vietnam and Hanoi, making the national economic growth decrease

On the other hand, policies adopted by the Party are applied at national level

Their feasibility depends on the realization ability of Hanoi city Through comparing the resolutions adopted by the Party Committee Congress of Dong Anh with those adopted by the Party Committee Congress of Hanoi city and with the Central Party Committee Congress, it can be seen that there are many inconsistencies in carrying out the contents and action plans This is also a weakness

Intrinsic factors in the economy such as economic structure, investment structure, labor structure and competitiveness show many weaknesses that inhibit quick and sustainable development in the coming time

The weather is increasingly severe, unfavorable Many epidemic outbreaks affect agricultural production and the people’s life

Flood: Every year, from June to September, the water in the Red river system rises high, causing flood to the dyke areas Even, in some years, it breaks the dyke and results in catastrophe for a vast area, failure of crops and big damage in people and property

The urbanization and industrialization process is now impairing quality of water, air and soil environment in Dong Anh and Hanoi city

3.2.3 Opportunities of socioeconomic development of Dong Anh district from now to 2020

Orientation of development in economic sectors

3.3.1 Orientation of development in trade - service sectors 3.3.1.1 Viewpoint of development

The district must diversify and enhance quality of service products, pay attention to developing high quality services Build Dong Anh into a new city, a high quality trade, financial, tourist and service center in the North of the capital

Consolidate and develop after-sale goods and service distribution and circulation system Build some customs clearance depots, ports and coach stations in the district Further invest in modernizing material facilities, diversify types, enhance quality of tourist products Fortify export supporting services and boost service export; give priority to developing rural agricultural development services

* Market system plan in the district

Develop market network in the district to meet the demand for sale, purchase and daily life of the people, ensure each commune/town has at least one local market to serve life activities, not to mention junction markets and specialized markets

Review market system in the district Organize the implementation of the market management model transformation project so that by the end of 2010, markets in the district would be transformed from the market management unit to the enterprise or co-operative operation

Make new plan for some local markets in the areas without market to serve the people

Together with planning market system, it is necessary to be determined in removing temporary markets in the residential area that affect the traffic order and safety, landscape and environmental sanitation

* Plan for trade centers, supermarkets and self-service retail shops

This is a modern trade type that become more commonly in the urban area

In the future, when the urbanization rate in Dong Anh is strong and new urban areas are built, the development of trade centers, supermarkets and self-service retail shops is of great necessity

Develop trade centers, supermarkets and self-service retail shops firstly in new urban areas, centralized residential areas and district center

* Plan for high grade service sectors: Finance, banking, insurance, consultancy and logistics

Develop services: Finance and banking in new urban areas in order to build Dong Anh into a financial and banking center in the North of the Capital

Attract and develop branches and transaction offices of the banks in the district central areas and in centralized residential areas to formulate high- density financial and banking system when the Northern Red River Urban Area Plan is carried out

Develop logistics centers in the district

Focus on improving and upgrading Cau Doi Park into a big recreation area in the district

Make new plan for some recreation areas, parks in new urban areas in the district

Develop hotel and restaurant system in new urban areas and the district central areas

Focus on refurnishing and upgrading historic sites to serve the demand of the tourists Strictly combine craft villages with tourist services, upgrade the infrastructure system to create attractive tourist craft villages

+ Hanoi center - Dai Mach - Nam Hong Tunnel + Hanoi center - Co Loa - Sai Temple

+ Hanoi center - Co Loa - Cau Doi - Van Tri Plan Van Tri pond into ecological and health resort

3.3.2 Orientation of development in industry, small scale industry and construction

Selectively develop items of goods, groups of industrial products with modern technology and environmental friendliness Pay attention to groups of products with trademark and prestige in electric equipment - electronic equipment - information technology and communication equipment, mechanical equipment, food processing, high grade garment and textile, create favorable conditions for the development of pharmaceutical chemical industry, high quality materials Support in development to modernize technology, expand scope of producing and exporting some small scale industrial products with market potential (wood processing, wood furniture, high grade handicrafts, etc.)

Basically complete occupancy of the centralized industrial parks; expand North Thang Long industrial park; continue building some new industrial parks by the domestic investment Develop small and medium-sized industrial clusters in accordance with the plan to provide production plan to the enterprises

3.3.2.2 Orientation of development in industry, small scale industry and construction

- Develop industry as the key sector that creates highly added value and makes the most contribution to the economic structure of Dong Anh district

- Enhance industrial production efficiency, enhance the adoptability of modern technology into production and enhance competitiveness of industrial products in Dong Anh district both in domestic market and for export

* Selection of key industrial products:

- Mechanical products: laminated steel, nail, mechanical products in means of transport, lock, mechanical products for life activities

- Electric equipment: transformer, voltage stabilizer, electric wire, etc

- Assembled electronic products: printing machine, monitor and computer accessories, etc

- Beverage and processed food: confectionery, meat, milk, cattle feed

- High class wood furniture, handicrafts; furniture, wood carving, wall painting and painted wood furniture

* Industrial distribution in the district:

- Continue expanding the old Dong Anh industrial park

- Occupy North Thang Long industrial park

- Expand in the second phase Nguyen Khe small and medium-sized industrial cluster

- Build Co Loa and Dong Hoi industrial parks

- Build craft industrial cluster in Van Ha and Lien Ha communes

- Reorganize production in craft villages: Van Noi rattan and bamboo, Viet Hung pork pies, Xuan Can, Hai Boi, Co Loa noodle and Vong La tofu, etc

3.3.3 Orientation of development in industry 3.3.3.1 Viewpoint of development

Develop agriculture in the direction of ecological urban agriculture and clean agriculture Accelerate the intra-agricultural structure shift

Plan for stabilizing agricultural production areas, establish the combined model of residential area - craft village - ecological and cultural resort, and formulate the city green belt

Develop clean agriculture with high technology; expand application of modern technology, biotechnology into clean agricultural production, focus on producing crop seedling and animal breed with high quality and highly economic value, reduce rice and food crop growing area, increase area for flowers, bonsai and medicinal herbs; develop high quality and safe husbandry and aquaculture Support in building technical infrastructure for some craft villages with development potential

Diversify sources of investment to build rural agricultural infrastructure modernly Consolidate, improve the dyke system in the district

- It is necessary for the district to accelerate the shift in rural economic structure, intra-agricultural economic structure in the direction of reducing food crop area, increasing area for flowers, bonsai, vegetable and foodstuff crops (gradually popularizing clean vegetable and fruit trees); fortify husbandry with focus on ox for food, lean pig, chicken, goose, duck, fish and shrimp The objective is to develop goods agriculture in order to provide fresh food within the city and export

- Develop agriculture in association with developing new rural areas, building clean agriculture and agriculture in urban

* Selection of key agricultural products:

- Clean vegetable: bean, kohlrabi, cabbage, cauliflower, tomato and mustard green are planted centrally in Van Noi, Nam Hong, Bac Hong, Tien Duong and Nguyen Khe communes

- Fruit trees: litchi, longan, mango, custard-apple, sapota are planted centrally in Viet Hung, Uy No, Tien Duong and Xuan Non communes

- Specialty rice: special non-glutinous rice and special glutinous rice are planted centrally in Thuy Lam, Lien Ha, Duc Tu and Mai Lam communes

- Food ox, lean pig, chicken, duck and goose: in the short term, encourage breeding at household scale and create favorable conditions for breeding at larger scale

- Seafood: fish and shrimp are developed based on the strength of big rivers such as the Red River, Duong River, Ca Lo River and lakes, ponds in the district

- Eastern communes: Thuy Lam, Lien Ha, Van Ha, Duc Tu and Viet Hung

These communes have future stability for agricultural production Main agricultural products of the region to be developed include specialty rice, seafood and poultry

- District central area: Nguyen Khe, Xuan Non, Tien Duong, Uy No and Dong Anh town This region has centralized development in industry and services Main agricultural products of the region to be developed include clean vegetable, food ox and lean pig

- Urbanized region: Nam Hong, Bac Hong, Tam Xa, Kim No, Van Noi, Dong Hoi, Mai Lam, Co Loa, Dai Mach, Xuan Canh, Kim Chung, Vinh Ngoc, Hai Boi and Vong La This region will be strongly urbanized and become urban area when the plan for the urban area in the North of the Red River is carried out Main agricultural products of the region to be developed include clean vegetable, fruit, flower and bonsai, food ox and lean pig

3.3.4 Orientation of cultural and social development 3.4.1.1 Orientation of education and training development

Train and retrain high quality human resources in order to gradually enhance the labor force with good qualifications This is a requisite for the development of industries with high scientific and technological content The district must work out specific plan for training labors classified by economic sectors

Dong Anh district should focus on solving some issues as follows:

- Invest in upgrading and expanding the District Health Center to more than

Solutions to socioeconomic development of Dong Anh

3.5.1 Training and developing human resources

Developing human resources with sufficient quantity and quality for the socioeconomic development during the planning period of Dong Anh district to

2020 includes two important contents, namely training local human resources and attracting intelligence, labors with high qualifications to the district development

- Encourage all forms of vocational education and training from low to high level Expenditure for vocational education and training is mainly subject to socialization method However, the budget may support part of training expenditure in order to encourage vocational education and training

Establishing funds for supporting and encouraging academic and vocational education, the district needs to take initiative in establishing the Study Encouragement Society and Study Encouragement Fund in the district, communes and hamlets in residential areas

- Launch and regularly maintain the academic and vocational study movement among the public, especially young people so that they have sufficient qualifications to meet the demand of labor market, find non- agricultural jobs in the district or other places outside the district

- Promote the formulation and development of labor market in the district

Well organize information network, employment consultancy and labor supply

The labors should grasp labor demand of small and medium-sized industrial parks/clusters, craft village industrial clusters through such forms as job fair, selection of forces for vocational training among the rural labors subject to preference

3.5.2 Applying scientific and technical advances in production

Paying attention to acquiring and applying scientific - technical advances in all fields of economic and life activities should be grasped thoroughly at all levels from district to commune

Give priority to transferring and acquiring new scientific and technological advances: firstly for key products or breakthrough steps Specifically: applying technological advances in producing vegetable, flower, seedling, breeding, high class wood furniture

Source of acquiring and transferring technology: pay attention to the available source in the city (universities, research institutes) Besides, it is necessary to take notice of new abroad technologies to be transferred and applied in production and service fields in the district

Work out stable and public mechanism and policy in order to encourage the application of new scientific and technological advances for priority fields

3.5.3 Mobilizing and using investment capital sources effectively

- Investment source from the city budget is estimated at about 30 - 35% of total demand for investment in the district

- District budget for development investment In the period 2011 - 2020, income from taxes and fees in the district will increase sharply and may be spent partly on development investment in the district

- Income from auctioning land use right This capital source is of budget type and the direction of remarkable mobilization for development investment that Dong Anh has a lot of potentials

Investment direction from the centralized budget capital is mainly for building socioeconomic infrastructure, investing in shifting economic structure applying new scientific and technical advances

* Investment from enterprises and from the public

- For the capital sources of the enterprise: accelerate the formulation and occupancy of small and medium-sized industrial parks, craft village industrial clusters to attract the enterprises within the city or from other places

+ Quickly and uniformly complete infrastructure system of industrial parks, especially power, water and traffic system

+ Study and consider empowering higher self-control to the Industrial Parks Management Unit in attracting investment For example, stipulating land rental framework in lieu of the present fixed price

+ Promote building trade and service centers in the district, especially in Dong Anh town and district central areas, trade and service areas in industrial parks, craft village industrial clusters

- For the public capital source:

+ Mobilize equity capital in various forms of business in all fields such as economy, trade and service

+ Issue bonds for the works executed by the city

+ Invest in transforming vocation for the objects with big cash flows from compensation for land acquisition

+ Expand BOT and BT investment forms

* Investment credit and other funds

- Preferential loan from existing development investment funds such as:

Infrastructure development investment fund, district economic development fund

- ODA loan of the Government, especially capital sources of organizations to invest in improving and protecting environment, maintaining cultural and historical sites

* Capital source from association with external parties

To attract the capital from association with external parties, backed by the city, the district should take initiative in creating mechanisms at permissible level to promote diversified cooperation forms with the enterprises of the Central government and the City For example: cooperate with universities and research institutes to formulate high quality seedling production area to provide to the markets of other provinces; associate in investing and building trade and service centers in the district

For attracting association with foreign enterprises and other provinces, it is possible to allow foreign investors to associate with domestic investors to build partial urban works of the works invested in ecological resorts and craft village resorts

For quick and stable economic growth, the market plays a quite important role, including input materials market and output product market In the context of international economic integration and WTO membership, searching, exploiting and expanding the market should target at both international market and domestic market, including regional market, urban market and district market

To widen the market for existing products for export, the district should provide appropriate supports to product promotion and introduction activities such as: displaying products with advertisement information at hotels, tourist points with many incoming international tourists; supporting unique or high quality products in participating in domestic and foreign trade fairs; establishing close and regular relationship with domestic or international trade promotion organizations; exploiting and bringing into full play the relationship with overseas Vietnamese or expatriates to seek partnership

For domestic market, it is necessary to bring into full play the traffic advantage between the district and other provinces to enhance product exchange, develop trade and service sector of the district Quickly formulate and promote market network in the district; well organize agents and outlets within the city, especially for such agricultural products as clean vegetable, flower and bonsai

In all circumstances including domestic and international markets, in order to seek and widen the market stably, the district’s products should have trademark registered in the market, firstly for key products of the district such as agricultural products, wood furniture and mechanical products

3.5.5 Improving general power of economic sectors

The district must encourage economic sectors, domestic and foreign enterprises, organizations and entrepreneurs to invest in developing and enhancing production and business efficiency in all fields under the laws The district must focus on establishing mechanisms and policies to promote liberating production force and social resources, concurrently ensuring equal and highly competitive business environment Mechanisms and policies of the district must be in accordance with the general State regulations, creating legal framework while stimulating economic sectors to participate in

Source: People’s Committee of Dong Anh district