La lehuynhmai sum

INTRODUCTION Rationale More than 30 years after Doi Moi, Vietnam is remaining an agricultural country with over 65% population works in agriculture for loving This area still shows many weaknesses, especially in socio-economics infrastructure The rural economy, which is mainly agriculture, is still unsustainable, incompetitive, limited in science and technology transfer and human resource training Therefore, the advantages of rural areas are not promoted and resources for rural development is becoming even more sluggish The Party and the State have implemented national target program on new rural development for the phase 2010 – 2020 in all country Hanoi has also developed and execute the 2nd program on “Developing agriculture, constructing new rural areas, enhancing living standard from 2011 – 2015” and currently implementing the 2016 – 2020 phase of this program At the same time, they devote a lot of effort and resources into this program However, the results from Hanoi new rural development program is still limited, especially in developing and transferring rural economic structure Economic structure transfer is the requirement of not only the internal economics development but also the current internationalism trend The new rural development program influences the rural economic structure transfer and vice versa While new rural development requires the rural economic structure to be transferred more progressively, it also creates positive conditions, such as more financial resource, beneficial policies and mechanism, and completed infrastructure for economic structure transferring to occur faster As the capital of Vietnam and the centre of Red River Delta Area as well as the Northern Vietnam key economic region, Hanoi attracts more investment than other areas However, the rural areas of Hanoi did not utilize those opportunities efficiently to fast transfer the economic structure and promoting production Therefore, researching and finding effective solution for economics structure transfer in new rural development is critical at the moment Therefore, the topic “Economic structure transfer in Hanoi new rural development” is selected for my thesis Objectives 2.1 Goals Hanoi is implementing New Rural Development until 2020, including economic structure transfer The goal of this thesis is to review how the process of economic structure transfer of Hanoi has taken place during the new rural development, and whether the economic structure transfer achieved the target new rural development program regarding economic structure, then provide recommendations to promote the rural economic structure transfer of Hanoi aligning to the targets of new rural development 2.2 Objectives - Firstly, the thesis aims to systemizing some theoretical and practical issue on economic structure transfer, focusing on differentiating it in the normal condition with in the new rural development Then, it aims to introduce the trend and a set of criteria to evaluate the rural economic structure transfer in new rural development - From the limitations of the rural economic structure transfer in new rural development in Hanoi, as well as the lesson learnt from other countries, the thesis aims to suggest several recommendations to promote the restructuring of rural economy in Hanoi in a modern, sustainable way that align with the objectives of new rural development Scope of research 3.1 Object of research The object of this thesis is Rural economics transfer in new rural development in Hanoi 3.2 Scope of research - Geographical scope: The research focus on 17 district and Son Tay Town, Hanoi in new rural development - Time scope: The thesis will focus on analyzing and comparing rural economic structure of Hanoi before and after the new rural development program (2009 – 2016) From that, the thesis will suggest the mechanism and policies to promote the rural economic structure transfer in the 2nd phase of new rural development in Hanoi to 2025, vision to 2030 - Scope of content: In this research, the thesis author focuses only on the assessment of the sectors in rural economic structure transfer Methodology In order to achieve the research objective, the author will conduct this research based on the research model as below: The objectives of new rural development The position and role of Hanoi - Suitable economic structure and production methods - Associate agriculture with fast-growing industry and services - Developing urban and rural areas according to plan - Developing a synchronous and modern rural infrastructure - Ensure ecological environment - Ensure the cultural and social issues - The capital of Vietnam - The economic, politic, cultural, social and scientific centre of Vietnam; the capital, the Red River Delta, and the Northern Key Economic Region - The centre attracting investments domestically and internationally culĐảm bảo vấn đề văn hóa, xã hội Requirements for rural economic structure in Hanoi - Efficient use of resources - Production in large scale, apply modern and high technology - Eco-friendly, sustainable production, and food hygiene - Modern rural development - Change the awareness and lifestyle of the rural people Requirements for rural economics structure change in new rural development in Hanoi - Fast transfer from agriculture, forestry and fishery to strongly developing industry, handicrafts, services and trade - Transfer rural economic structure to strongly promote commodity production according to the market mechanism, focused large-scale production - Restructure the rural economy towards raising the quality of commodity production and eco-friendly, clean and sustainable production quantitative methods to achieve the research objectives - Desk research: Firstly, the published articles and research results domestically and internationally are carefully read, synthesized and analysed From that, the author will synthesize and structure the theories relating to rural economic structure transfer in new rural development - Through the researched secondary data, with the systemative and practical data, the author will conduct interview with experts in economics, especially rural economics regardings her research objects: The trends of economic structure transfer, the criteria used to evaluate it, the factors influencing this issue and their opinion of economic structure transfer From that, the author will select and provide the set of criteria to evaluate the rural economic structure transfer as well as identifying several major affecting this transfer - Data collection: Orientation and solutions for rural economic structure in new rural development in Hanoi that meet the required targets Due to the large geographical scope of research, which is district level and above, the thesis will collect secondary data, including data from statistical yearbook of Vietnam, statistical yearbook of Hanoi, the Survey on Hanoi’s population living standard, the Survey on agriculture, forestry and fishery of Hanoi, the statistical yearbook of each district, data collected from final report of Hanoi Department of Agriculture and Rural Development, Hanoi Department of Planning and Investment, Hanoi Agricultural Extension Centre and directly from several District People’s Committees - Data analysis: + Descriptive Statistics Method: Performs chain comparisons, cross-comparisons and structure comparisons in making initial analysis on structure transfer and in calculating and determining the pace of economic structure transfer + Expert method: Conducting in-depth interview with several experts to reinforce the uncertain analysis, specifically: The factors influencing the rural economic transfer in Hanoi - The factors belong to the policies of new rural development and economic structure transfer - The factors that are specific to the Capital of Vietnam The real situation of rural economic transfer in Hanoi, the comparison between Hanoi before and after implementing the new rural development program, the comparison between the categories of district based on the level of completing this program and comparing with the targeted rural economic structure transfer Identify the limitation and causes of rural economic structure transfer in new rural development in Hanoi The Research Model of this Thesis Source: Developed by the Author The thesis uses inductive and deductive approach, the use of qualitative and The author has interviewed experts in economics, especially in agriculture and rural economics for their consult on the trend of rural economics development, particularly the trend of rural economics structure transfer, especially in the context of promoting the implementation of national target program on new rural development at the moment The author has also conducted interviews with the manager of Ministries and Departments of Hanoi, especially those relating to rural areas as well as several District leaders in order to receive their advices on the characteristics of Hanoi rural area, Hanoi rural economy and rural economic structure transfer in Hanoi Findings Theoretically: Firstly, the thesis approaches the rural economics structure transfer as a noun for developing conclusion on economic structure transfer, while approaching as a verb is considered a factor influencing the process of rural economic structure transfer Secondly, the thesis examines the relationship between economic structure transfer and new rural development based on considering rural economic structure transfer as both the comprehension and the condition for conducting new rural development Thirdly, the thesis clarifies the requirement for rural economic structure transfer under the condition that the new rural development associates with special characteristics of a Capital: the economic structure has to transfer rapidly, the rural economic structure has to transfer in the way that promote production of goods according to the market demand, focused and large-scale production and the rural economics structure has to transfer in the way that enhance the product quality, clean, environmental-friendly and sustainable Fourthly, the particular theoretical framework on rural economic structure transfer in new rural development in Hanoi based on examining the rural area in Hanoi as a Capital with many different characteristics and requirements comparing to other rural area in Vietnam: the trend of rural economic structure transfer set in the requirements of a Capital; developing the criteria for evaluating the rural economic structure transfer in terms of both effectiveness and efficiency; the factors affecting rural economics structure transfer through the inter-sectoral and intra-sectoral economic correlation with the advantages from the new rural development program and the special characteristics of a Capital Practically: Firstly, the dissertation has discovered the shortcomings of rural economic structure transfer in rural development: (i) The rural economic structure has transferred positively but the ratio of agricultural sector is still relatively high, while the ratio of services sector has increased but with slow pace of change and has not effectively utilized the regional advantages; (ii) Within the sector, the economic structure is still unclear according to the City orientation on rural economic structure transfer in rural development; (iii) The tendency of economic development toward focused and large scale production has been formed but did not achieved the requirements in pace of transfer to create truly productive production areas for key commodities; (iv) The process of economic structure transfer has led to increasing the scientific and technological factors that are suitable for the industrialization and modernization process but it is still not sufficient to create a fundamental change in product quality and impact to the living environment; (v) Land productivity, labour productivity, and per capita income in Hanoi rural area has seen significant improvements but not commensurate with current potential, and the large gap between the per capita income of Hanoi rural area with per capita income of Hanoi in general as well as its urban area Secondly, the thesis has identified seven reasons for these limitations: the policies on law and other policy mechanism are not synchronized; The planning is also passive, lacking in details and lack in feasibility; The market for commodities in rural areas is limited; Research, development and application of new technology to production is limited; rural infrastructure is not synchronous and does not meet the demand of economic development; the quality of human resource is limited and not evenly distributed; the financial resources mobilized for new rural development is not sufficient and mainly rely on the State budget Thirdly, the thesis propose groups of recommendations to promote the rural economic structure transfer in new rural development, including: (i) More radically and strongly reform the policies of the Party, State and the City regarding agriculture, farmers and rural area in new rural development; (ii) Pay adequately concern on research and innovation in production and business models within rural area, especially in agricultural production and trading, (iii) Pay intention to improving the staff qualification and enhancing the public participation; (iv) Promote the investment in product research and development as well as market development; (v) Improve investment in developing and completing rural infrastructure; (vi) Focus the investment in developing the qualified rural human resource for the demand of economic structure transfer; (vii) Enhancing the mobilization of capital invested for rural economic structure transfer in new rural development Structure of the thesis Regardless of the Introduction and Conclusion, the thesis is composed of four chapters: Chapter – Theoretical overview on rural economic structure transfer in new rural development; Chapter – Theoretical and practical basis for rural economic structure transfer in new rural development; Chapter – The real situation of rural economic structure transfer in new rural development in Hanoi; Chapter – The recommendations to promote rural economic structure transfer in new rural development in Hanoi to 2020, orientation to 2030 CHAPTER THEORETICAL OVERVIEW ON RURAL ECONOMIC STRUCTURE TRANSFER IN NEW RURAL DEVELOPMENT 1.1 Theoretical overview 1.1.1 The researches on economic structure transfer Overview of domestic and international researches on economic structure in terms of: concepts, implications, stages of transfer; movement trends, criteria for evaluation, factors affected 1.1.2 Theoretical overview on rural area, new rural area and rural economic structure transfer in new rural development Overview of local and international researches on rural, new rural area and rural economic structure transfer in new rural development: perspectives on rural and new rural areas, implications of rural economic structure transfer in new rural development 1.2 Research gap Through the theoretical review of both domestic and international researches, the author concludes several points below: the researches has been adequatedly and comprehensively systemised the issues related to the economic structure transfer , rural and new rural economic structure transfer, but there is no study conducting a research framework for assessing the rural economic structure transfer in new rural development, especially with Hanoi with different characteristics and conditions with other regions and localities Hanoi is the Capital, the economic – political – cultural and social centre of the country, the centre of the Capital Region, Red River Delta and the Northern key economic area With that position, Hanoi has preferential policies, more capital invested, and other advantages to promote economic structure transfer than other provinces At the same time, the requirements of Hanoi in rural economic structure transfer are also different from other provinces in order to assume the role of pioneers, creating spillover in economic development to the surrounding areas and other provinces 2.1.2.2 Rural economic structure According to Le Dinh Thang (1994), “the rural economic structure is a comprehensive economic relationship in the rural area, which has organic relationship in certain proportions in term of quantitativeness and relevance in term of qualitativeness; they interact with each other in certain spaces and times, in accordance with certain socioeconomic consitions, forming a rural economic system – in integral part of national economic system” 2.1.2.3 Phân loại cấu kinh tế nông thôn Rural economic structure CHAPTER THEORETICAL AND PRACTICAL BASIS FOR RURAL ECONOMIC STRUCTURE TRANSFER IN NEW RURAL DEVELOPMENT 2.1 Rural economic structure and rural economic structure transfer 2.1.1 Rural area and rural economic development 2.1.1.1 Rural area In Vietnam, the definition of rural area is agreed with the provision of Circular No 54/2009/TT-BNNPNT on August 21st, 2009 of Ministry of Agricultural and Rural Development, specifically: “Rual area is not part of urban area, cities, towns and townships managed by small-scale administrative level, which is the People’s Committee This definition mainly considers rural demarcation based on administrative territory Thus, the rural area here is defined as the territory of the administrative unit of the commune 2.1.1.2 Rural economy Rural economy is an area of the economy associated with rural areas, which is the overall economic relations in rural areas, closely related to agricultural production 2.1.1.3 Rural economic development Rural economic development is a progressive process in all aspects of the rural economy, including economic growth, economic restructuring and social progress 2.1.2 Rural economic structure 2.1.2.1 Economic strucuture “Economic structure is the correlation between parts of the economy, showing the orgationic relationship and the interaction between quantitative and qualitative” The economy is a complex system with many components and factors that are closely related to each other, interacting with each other Economic structure illustrate the relationship between these components, these factors Agricultural sector Agriculture - Cultivation - Breeding - Agricultural services Forestry - Afforestation - Harvesting - Processing - Forestry services Industrial sector Fishery - Aquaculture - Fishing - Fishery services - Industry - Small industry and craft villages - Construction Service sector - Trade, services - Hospitality - Finance, transportation, post and telecommunication - Education, healthcare Figure 2.1 Rural economic structure Source: summarized by the author 2.1.3 Rural economic structure transfer 2.1.3.1 Definition of rural economic structure transfer There are two ways to approach the concept of rural economic structure transfer: consider "rural economic structure transfer" as a noun or a verb As a noun Rural economic structure transfer can be defined as the process of restructuring the rural economy, the process of changing the economic structure in terms of its nature, position, role, function and as well as the relationship among the components of the rural economic structure in order to exploit the static advantages and promote the dynamic advantages in relation to the increase of capabilities and efficiency of the rural economy, shift the rural area from traditional rural economy (small agriculture economy, selfsufficiency) towards a rural economy drived by the market mechanism and industrialization As a verb The rural economic structure transfer is the reorganization of the components of the rural economic structure, the redistribution of resources in rural areas in order to effectively utilize resources, improve productivity and quality The quantity of components in the rural economic structure is in line with the development trend In his study, the author chose the approach of "rural economic structure transfer" as a noun to construct the implications of economic restructuring The aspect approach is a verb that is considered as factors that influence the rural economic transition process 2.1.3.2 The trend of rural economic structure transfer (i) Transfer the rural economic structure towards commodity production; (ii) Restructure the rural economy towards industrialization, modernization and development of non-agricultural sectors; (iii) Rural economic structure trasnfer from small scale production to large-scale production 2.2 New rural development and the requirements for rural economic structure transfer in new rural development 2.2.1 New rural development 2.2.1.1 The definition of new rural area In Vietnam, according to the Resolution No 26-NQ/TƯ on August 5th, 2008 on “Agriculture, farmers and rural areas”, the new rural area is defined as “rural areas with socio-economic infrastructure developed step by step, suitable economic structure and form of production, associate with rapid development of industry and services, the rural development is linked with urban area according to State plan; the democratic, stable rural society with rich cultural identity, protected ecological environment, maintained security and order and improved material-spiritual living standard 2.2.1.2 New rural development In order to implement the Resolution No 26-NQ/TƯ on October 28th, 2008, the State has issued the Resolution No 24/2008/NQ-CP on “The Government's Action Program to implement the Resolution of the 7th Plenum of the 10th Party Central Committee on Agriculture, Farmers and Rural Areas” Then, on April 16th, 2010, the Prime Minister has issued Decision No 491/QĐ-TTg on the national criteria for new rural area with 19 criteria On June 4th, 2010, national target program on new rural development for the phase 2010 – 2020 has been approved by the Prime Minister and promulgated in Decision No 800/QĐ-TTg The new rural program is the framework with 11 national target program and 13 target program being conducted in the rural area The program includes principles, 11 contents and 19 criteria 2.2.2 The relationship between rural economic structure transfer with new rural development The rural economic structure transfer and the development of new rural areas have a very close and interactive relationship The rural economic structure transfer is both an internal and a condition for new rural development Firstly, rural economic structure transfer is one of the 11 components of the new rural development program and is an important element for promoting economic development and improving the living standard in rural areas Secondly, when the rural economic structure changes positively, it will help the rural areas to utilise the resources more efficiently, promote economic development, contribute to ensuring the success of the new rural model Thirdly, the positive transfer of rural economic structure promotes the distribution of social labour locally and to increase the average income, thus contributing to the achievement of new rural development criteria Fourthly, new rural areas create initial resources for economic development and structural change; conversely, the transfer stimulates economic development and create more resources for new rural development 2.2.3 The requirements for rural economic structure transfer in new rural development (1) It is necessary to develop suitable and progressive rural economic structure that enable the efficient exploitation and use of resources in the area used for socio-economic development and improving living standard (2) It is necessary to form large-scale and modern production, operating under market mechanism (3) It is necessary to create clean, environmental friendly, sustainable and inclusive production (4) Contributing to develop a fully-developed and incrementally modern infrastructure system for the rural area should be conducted (5) Contributing to changes in perception, work style and life style for people in the rural area From the requirements set for rural economic structure in new rural development, rural economic structure transfer in new rural development should meet the following requirements: Rural economic restructuring from agriculture, forestry and fishery to the strong development of industry – handicraft and commerce, services; Rural economy structure transfer conducted along the direction of promoting the development of commodity production under the market mechanism, concentrated, large-scale production; To restructure the rural economy in the direction of improving the quality of products and sustainable production 2.3 Theoretical framework of rural economic structure transfer in new rural development in Hanoi 2.3.1 The trend of rural economic structure transfer in new rural development in Hanoi Besides the general requirements mentioned above, the rural economic structure transfer of Hanoi in new rural development also requires other conditions: The pace and the scope of transfer ought to be faster than the national average and other provinces; The restructuring of economic concentrates on inproving product quality and the clean, green and sustainable production The trend of economic structure transfer in general: Rapidly transfer the rural economic structure to the direction of decreasing the ratio of agricultural sector, incrementally increasing the ratio of industry and services sectors; Rapidly restructuring the rural economy to commodity production under the market demands; Transfer the rural economic structure into concentrated, large-scale production, promoting the application of technology into production; Restructuring into improving the product quality as well as clean, environmental-friendly and sustainable production The trend of structure transfer within sectors: 2.3.2 The criteria to evaluate the rural economic structure transfer in new rural development in Hanoi science and technology, infrastructure, human resource quality 2.3.3.2 The factors belong to the new rural development program: The policy mechanism under the new rural development program, the resources for new rural development and the role of rural economic entities in new rural development 2.3.3.3 The factors from specific Capial characteristics: The advantages of the Capital region, the Red River Delta, the Northern key economic region, the Capital Law The criteria that illustrate the results of eonomic structure transfer - The criteria that show the changes in economic sectors: the change in number of sectors, the appearance of new sectors 2.3.4 The lessons for Hanoi in rural economic structure transfer in new rural development from the experience several foreign countries From the international practical experience in rural economic structure transfer in new rural development, the thesis summarise several lessons for Hanoi: (i) Selecting the products that promote local advantages combine with promoting the product branding and market expansion; (ii) Strengthening the application of science and technology to agricultural production, guarantee food hygiene and safety, incrementally achieving the product quality process (GAP); (iii) Enhancing the participation of enterises and farmers in production and the development of rural livelihoods; (iv) Developing the rural infrastructure system for production and enhancing living standard for the rural people - The criteria that shows the change in ratio and pace of restructuring: The changes in the scale and ratio of agricultural sector, industry and services sector within the gross output in rural areas in general and the changes in scale and ratio within each sector; the pace of economic structure transfer; The rate of contribution of each sector by labour THE REAL SITUATION OF RURAL ECONOMIC STRUCTURE TRANSFER IN NEW RURAL DEVELOPMENT IN HANOI 2.3.2.1 Methods for evaluation This thesis uses comparison method to illustrate the change in economic structure before and after the implementation of new rural development program in Hanoi to see the influence of new rural development to rural economic structure transfer in Hanoi 2.3.2.2 The criteria for evaluating economic structure transfer The criteria that reflect the effectiveness of economic structure - Economic effectiveness: The group of criteria that reflect the economic structure transfer in the direction of contributing to the reorganisation of production to reducing small scaled production and increase large-scale commodity production; the group of indicators reflecting that economic structure transfer contributes to the promotion of technological application into production in the rural area; the group of criteria reflecting that economic structure transfer contributes to the enhancement of productivity in agricultural land and labout in rural area - Socio effectiveness: The criteria which illustrate the economic structure transfer contributes to solve the employment issue in the rural area; the criteria that reflect the contribution of economic structure transfer in improving the living standard in the rural area 2.3.3 Factors affecting rural economic restructuring in new rural development in Hanoi The impact on economic restructuring in new rural development divided into groups: 2.3.3.1 The group of factors affecting economic structure transfer in general: Geographical location, natural conditions, the market development, the development of CHAPTER 3.1 Hanoi Rural Area and the real situation of new rural development program 3.1.1 Introduction of rural area in Hanoi 3.1.2 The new rural development program in Hanoi 3.1.2.1 The content of new rural program in Hanoi According to the Central Resolution 7th Section 10 on agriculture, rural areas and farmers, Decision No 800/QD-TTg on June 4th, 2010 approved and promuldated by the Prime Minister on National target program on new rural development, the Party Committee of Hanoi has developed the 02-CTr/TU program on agricultural development, new rural development, gradually improve the living standard in the phase 2011-2015 The new rural development concept set out by the City’s Committe includes specfics content and related objectives 3.1.2.2 The results of new rural program in Hanoi Over the past years of implementation, Hanoi has always paid attention and devoted resources for the implementation of this program (34,500 billion VND in the phase 2011-2015, of which the State budget contributes 23,400 billion VND) Even though the criteria system for new rural development at commune level has several criteria with higher standard than before, the commune has concentrated resources to achieve the criteria, therefore in 2016 only, Hanoi has communes that meet the infrastructure criteria, 13 communes meet the ??? criteria, meets the cultural facility criteria, communes meets the criteria of poverty reduction criteria Up to 2016, Hanoi has 255/386 communes recognised as new rural area (66.06%) Out of the remaining 131 communes, 93 communes basically achieved 15-18 cirteria, 38 communes reached 10-14 criteria and no communes just achieved under 10 critera, districts has completely achieved these criteria districts, which are Dan Phuong and Dong Anh has been recognised by the Prime Minister as New Rural Area District Meanwhile, Thanh Tri and Hoai Duc district are also completing the procedures to be recognised 3.2 The real situation of rural economic structure transfer in new rural development in Hanoi 3.2.1 The real situation of rural economic structure transfer according to the criteria of economic restructuring 3.2.1.1 The real situation of economic structure transfer in general in rural area - The rural area in Hanoi in the phase 2009 – 2016 with the total production value increases stably In 2016, the total production value of the rural area worth 288,125.7 billion VND (according to comparative price), increase 1.82 times comparing to 2009 The pace of total production value growth was 9.08% per year This shows that the rural economy developed positively - After years implementing the new rural development, the rural economic structure of Hanoi has transfered as following: the ratio of agricultural sector decreased to 10.73%, the industrial sector increased to 69.15% and the services sector has 20.12% in the rural economic structure If comparing to the target in 2020, in which the rural economic structure need to achieve 9-10% agricultural sector, 69-70% industrial sector and 20-22%, the current rira; economic structure has nearly achieved this target However, the pace of transfer in Hanoi is slow, with the average of 1.2% per year, especially when the pace of transfer before new rural development is faster than the pace after the program start being implemented - In economic structure, the agricultural sector still have quite large ratio, with 50.8% labour in the rural area work in agrucultural sector The ratio of labour in industrial sector is around 28% and in services sector is 21.2% This means the labour productivity in the rural area is really low, therefore the average income of rural people have not been enhanced The ratio of service sector contribution is still limited in the economic structure and cannot compare to the potential of rural area in Hanoi 3.2.1.2 The real situation of restructuring in each economic sector
The real situation of economic restructuring within the agricultural sector (agriculture, forestry, fishery) The total production value of the agricultural sector repeatedly growth about 2.63% per year in average The growth rate is lower than the set objective for agricultural production in new rural development in 2011-2016 (2.5-3% per year) In 2016, the rate is 1.5% while the target in 2016-2020 is 3.4-4% per year Regarding agricultural economic structure, the rural area in Hanoi focusing on agriculture in the narrower meaning (cultivation and breeding) The speed of economic structure in 2009-2011 in average is 1.25% per year, during 2011-2016 is 0.14% per year, much slower than expected The slow transition of agriculture economic structure is suitable with the natural condition of Hanoi, with plains, fertile land, suitable for cultivation and breeding In agricultural production, Hanoi also focuses on shifting the structure of plants and livestock to the types with higher economic value such as gradually shifting from grains to grafted vegetables, flowers and fruit trees
The real situation of economic restructuring in industrial sector The total production value of the industrial sector has increased from 106,995.4 billion in 2009 to 202,459.1 billion in 2016 (in comparative price), about 64% of total production value of Hanoi Within the industrial area, the manufacturing and processing industry is the largest prodiction sector, while the production and distribution of electricity, gas, hot water and steam, as well as water supply industry, waste and waste water management and treatment are the two industries with high growth rate in 20112016, especially the first two years implementing the new rural development However, the pace of growth of these two industries is not stable, with several years seeing low or negative growth rate (in 2013 for water supply, waste and waste water treatment is 2.22%) Similar situation is found in mining and construction, with several years experiencing very high growth rate while some years with negative rate The rural villages for traditional crafts received consideration for investing, developing and preserving the traditional crafts villages and cultivating more The craft villages also attract concentration to be developed into concentrated areas in industrial clusters and crafted village clusters to ensure the infrastructure for production and promote the support and linkage among villages
The real situation of economic restructuring in the services sector Service is the sector that achieved the highest pace of production value growth, however, the ratio of services sector in the economic structure is quite limited The scale of production value of the service sector has increased from 24,928.4 billion VND in 2009 to 54,723.2 billion VND in 2016, the pace of growth is 11.86% per year in average Within the service sector, wholesales and retails are the two sectors with the largest scale and, at the same time, highest and stable growth rate with the average figure of 14% per year After that is hospitality sector 3.2.2 The real situation of rural economic structure transfer of Hanoi according to the criteria reflecting the effectiveness of economic restructuring 3.2.2.1 The rural economic structure transfer contributes to the reorganisation of production in the rural area 3.2.2.4 The rural economic structure transfer contributes in the creation of more jobs, income generation and poverty reduction The rural economic structure transfer contributes to the reorganisation of production activities in the rural area, firstly the commune and district level in the direction of reducing small-scale and household-based production to concentrated and large-scale production: the number of enterprises operating in the rural area of Hanoi in 2016 nearly doubled the number in 2010, of which most of the enterprise concentrated in the districts that reached the criteria of new rural development; forming the large-scale production farm suitable with the new farm criteria; creating large fields for rice cultivation, growing safe vegetable, the focused and large-scale livestock farms and the clusters in industrial production The development of production has attracted and created more and more jobs for the rural labour with stable and increasing income The number of labour working in individual non-agricultural, non-state-owned and business, services in rural area increase sharply from 2011 to 2016 3.2.2.2 The rural economic structure transfer contributes in promoting the application of science, technology and management, the quality standard into production 3.3 Analyse the factors influencing the rural economic structure transfer of Hanoi in new rural development In cultivation sector, the rate of mechanization has increased considerably after years of implementation However, in stages of mechanization, the mechanization rate of transplant stage was still low with only 2.55 %, although the target is 20% Hanoi's dynamics rate is also lower than the national average and much lower than other countries in the region Hanoi is also the province with low mechanization rates compared to the whole country and neighboring provinces The main cause of this situation is due to the slow progress of land consolidation In addition to the constraints imposed by land policy, the level and methods of leasing and borrowing for agricultural production The rate of mechanization in breeding is still low, the highest in cow milking only reached the rate of mechanization 37.7% Besides promoting mechanization in production, Hanoi also incrementally apply the high technology in agricultural production However, most of them are only pilot project or initial application of technology into production, the scale is smaller than the financial and scientific capability of Hanoi 3.2.2.3 The rural economic structure transfer contributes to the enhancement of labour and land productivity in the rural area The rice and corn productivity of Hanoi increase coninuously over the years and higher than the average of the whole country However, with its capital position, with high demand for high-quality goods, Hanoi may not need to focus too much on increasing productivity but should focus on high-quality products The labour and land productivity of Hanoi experience the stable positive trend and much higher than the country average In 2016, the land productivity in cultivation of Hanoi is 1.2 times higher than the country average At the same time, the agricultural labour productivity is also 1.46 times higher than the country average Average personal income in rural area of Hanoi has increased from 14 million VND in 2011 to 36 million VND in 2016 (increase 2.57 times), the rate of poverty reduced from 11.25% in 2011 to 3.65% in 2016 If this growth rate is maintained, the target in average personal income of 49 million VND and the rate of poverty under 1.5% is attainable, though the criteria is still low comparing to Ho Chi Minh City The factors influencing the rural economic structure transfer of Hanoi in new rural development is analysed following groups: 3.3.1 The factors affecting economic structure in general: geographical location, natural conditions, the market development, the development of technology, infrastructure, quality of human resources 3.3.2 The factors belong to the new rural development program: the policy mechanism belongs to the new rural development, the resources for new rural development, the roles of rural economic entity in new rural development 3.3.3 The specific factors of the Capital: The advantages of the Capital, the Red Delta Region, the Northern Key economic area, the Capital Law 3.4 Assessment on rural economic structure transfer in the process of implementing new rural development of Hanoi 3.4.1 Achievements The rural economic structure shifted positively to the direction of reducing the ratio of agricultural sector, increasing the ratio of industrial and service sector; Within each sector also see a positive restructuring, the rural economic structure in Hanoi positively transfer to increasing the ratio of applying high and clean technology to increase the productivity, product quality, safety for users and environmental-friendly 3.4.2 Limitation and causes Limitation Causes The ratio of agricultural - The policy and mechanism affect strongly the rural sector is still quite high, the economic restructuring in new rural development of Hanoi ratio of service sector but is not synchronized, some fields only have policy to increased slowly and did not regulate but did not have any specific guildance at utilise the advantages of the provincial level province - The lack of policy and mechanism to create the link among industries, functions and provinces during the development process to maximize the advantages of each - The commodity market in the rural area is limited Within the sectors, the economic structure did not have clear transfer to the City orientation in rural economic restructuring in new rural development and urban area in term of economic development average personal income CHAPTER THE RECOMMENDATIONS FOR PROMOTING RURAL ECONOMIC STRUCTURE TRANSFER IN NEW RURAL DEVELOPMENT IN HANOI - The plan is still passive and was not keep pace with the rapid change of urbanisation 4.1 The context of nre rural development and rural economic structure transfer until 2020, with the vision to 2030 - The plant structure plan was not developed with throughout analysis of local advantages 4.1.1 Domestic and international context - The infrastructure has been improved but not enough to reach the production demand 4.2 The perception and orientation on rural economic structure transfer in new rural area in Hanoi until 2020, with vision to 2030 - It is difficult to access to loans to convert production 4.2.1 Perception on rural economic structure transfer in new rural area in Hanoi (1) Economic restructuring of rural areas in Hanoi must align with the general structure of the city, the socio-economic development orientation of Hanoi until 2020 with orientation to 2030 and the general city plan and the sector plan (2) Rural economic structure transfer in Hanoi must ensure harmonious and rational development between industries and functions, thoroughly exploit all potentials and strengths of localities; utilising efficiently and sustainably resources for production and economic development (3) Economic restructuring in rural suburban areas should focus on science and technology as the key to rural mechanization in the process of building new rural areas (4) Rural economic restructuring should focus on promoting the role and activeness and diversity of farm households and economic entities in rural areas - Rural economic structure transfer in Hanoi should ensure good relationship between economic efficiency, social efficiency and environmental efficiency The trend of economic development in concentrated, large-scale production did not meet the demand in the pace of shifting to form the concentrated production area for key production - The land law has many barriers to land acquisition for production The economic structure transfer has increase the application of technology, which is suitable with the industrialisation – modernisation but is not enough to basically change the product quality and affect the living environment - Lack of policies linking science and technology research units with units and businessmen The land and labour productivity, the average personal income in the rural area does not match with the current potential, with the gap between the rural and - The level of local managers, especially in remote villages is still limited so the efficiency of implementing policies and programs is not high - Slow land consolidation - Access to capital for production expansion is difficult - Risk in production investment, especially in agricultural production - The policies and measures to support the activities of economic subjects are limited to cooperatives and enterprises - Procedures for implementing the is neither specific nor simple, leading to difficulties for people to access and benefit from policies - Investment capital is still limited and mainly based on state budget - The ability and skill of managerial staff is low, the rate of skilled workers is low and not evenly distributed - Labor in rural areas, especially in remote areas, is mainly older workers This limits the ability to apply science and technology into production, restructuring and rural 4.1.2 The context of new rural development and rural economic restructure in Hanoi 4.2.2 The orientation of rural economic restructuring in new rural development 4.2.2.1 The orientation of rural economic restructuring in new rural development (1) Continue to transfer economic structure towards reducing the ratio of agricultural sector, increase the ratio of industry and services, and shift production activities towards concentrating, large-scale production, applying technology in production, improve the quality of products and services (2) In the agricultural sector, the shift towards concentrating on high economic value products such as safe vegetables, flowers, ornamental plants, fruit trees and valuable livestocks should be promoted further Along with that, to accelerate the application of science and technology into production in order to raise labor productivity and quality of agricultural products, ensure the standards of production and food hygiene and safety It is important to concentrate to develop product brands, building linkages in closed agricultural production from production to consumption; Developing service industries for agriculture (3) In the industrial sector, Hanoi needs to focus on developing traditional craft villages, creating specialty products, forming and developing product brands; forming and developing appropriate industrial areas and clusters according to plannings, developing supportive industries, forming production chains in the industrial sector; focusing on the problem of waste treatment environmental protection (4) In the service sector, focus should be given to the development of service industries that serve the needs and livelihoods of rural people, such as wholesale, retail, health care and education The forms of tourism in rural areas such as ecotourism, cultural tourism, village tourism should be development; ensuring that rural people can improve their living based on integrating tourism and agriculture, reduce migration or land holdings without developing production 4.2.2.1 The objectives of rural economic restructuring in new rural development in Hanoi to 2020 The objective are transfering the rural economic structure of Hanoi in the direction of high productivity and quality, ensuring safety for users and protecting the ecological environment; creating large concentrated commodity zones to meet the demand of the city's population and gradually export The rural economic structure of Hanoi continues to shift in the direction of reducing the share of the agricultural sector, gradually increasing the proportion of non-agricultural sectors 4.3 The recommendations to promote rural economic structure transfer in the process of implementing new rural development of Hanoi to 2020 4.3.1 Conducting stronger transformation following the policy and mechanism of the State, the Party and the City in agriculture, rural people and area in new rural development develop in the orientation of large-scale farm and cooperative Besides the farm and cooperative model, Hanoi also needs to have policies and mechanisms to encourage business and production entities to connect in the value chain (linking producers, processors, people distribution and consumer) In the field of trade, the City should orientate people to form business enterprises The types of enterprise (private, stock, limited, family ) can be selected themselves to suit their conditions The City mainly supports individuals in term of legal procedures and training, fostering knowledge of management, market access 4.3.3 Concentrating on enhancing officials’ capability and promote the public participation 4.3.3.1 Restructuring the State management apparatus, enhancing the officials’ qualifications and capabilities 4.3.3.2 Promoting the public participation and the roles of economic entities in new rural development 4.3.4 Promoting in investigation for product research and development and market development 4.3.4.1 Promoting product research and development activities 4.3.4.2 Promoting the market research and development activities 4.3.5 Concentrating on investing and completing rural infrastructure - Accelerate the completion of rural infrastructure planning, especially the infrastructure system for agricultural production, small-scale industries development – craft villages and trade – rural tourism (i) Land policy: Acknowledging that land has two levels of ownership: ultimate ownership and limited ownership; (ii) Credit policy: raising credit lines, extending forms of property mortgage, adjusting loan term according to the production cycle of commodity products; (iii) Policy on science and technology: developing policies to create linkages between research agencies and State management agencies, enterprises and producers based on the harmonious settlement of the relationship of interests; (iv) Production insurance policy: forming of risk prevention fund and developing the production insurance policy; (v) Add in and complete a number of other policy and mechanism to maximize the conditions and results of the new rural development program to accelerate the rural economic structure transfer - Building and improving infrastructure systems: traffic system, irrigation system, electricity system, water supply and drainage system, waste treatment system, communication system, system of markets, shops, shopping centers, amusement parks 4.3.2 Paying attention to the research and support the activities of economic entity to transform the forms of production in the rural area, especially in agricultural production and trade activities 4.3.7 Strengthen mobilization of capital investment for rural economic restructuring in new rural development For agricultural production, the City should facilitate and encourage farmers to 4.3.6 Concentrating the investment in rural human resources development that meet the demand of rural economic structure transfer The recommendation for rural human resources development concentrate on: Determining the subject of trainings, the training content, format, the methods to promote the participation of the labourers in trainings and professional development, the budget for training activities - It is necessary for the City budget to ensure the resources for implementing of the programs as committed with timely manner to support and guarantee the program process; to increase revenue for local budgets by redetermining the income allocated to localities on the basis of the amended State Budget Law; To focus on solving difficulties and obstacles in accessing credit in agricultural and rural areas; Considering to attract external resources; Publicizely and transparently using the mobilized financial capital, ensuring that capital sources are used rationally and efficiently 4.4 Several recommendations to the State and Congress The Congress needs to revise several provisions of the Land Law; The Government should regularly review and re-evaluate the potential and quality of land, improve and consolidate the database of land; The government should consider eliminating certain fees for agricultural products, setting the floor price for some essential agricultural products, and purchasing agricultural productions for farmers at low prices to stabilize prices; The government should issue legal documents regulating and guilding foreign capital investment for agricultural production so as to promote the capital investment for the development of agricultural production CONCLUSION In order to comprehensively evaluate the rural economic structure transfer in Hanoi in new rural development, the thesis has focused on developing and completing a theoretical framework for rural economic restructuring in new rural areas development in Hanoi The thesis approaching rural economic restructuring from a perspective is a noun for constructing the implications in terms of economic structure transfer and the approach from the perspective of a verb for consideration as the factors influencing the process of rural economic restructuring Thus, the thesis examines the relationship between rural economic restructuring and new rural development on the basis of considering the rural economic structure transfer as both an implications and a condition for the new rural development The thesis has clarified the requirements of rural economic restructuring in new rural development align with the specific conditions of a capital city and developed a theoretical framework for rural economic structure transfer in Hanoi's new rural development on the basis of considering Hanoi's rural area as a capital city with many different requirements and characteristics than other rural areas across the country including: the trend of rural economic structure transfer; assessment criteria of rural economic restructuring; factors influencing rural economic structure transfer through economic interdependence between sectors and within each sector in the process of new rural development and the characteristics of a capital Based on the constructed theoretical framework and the analysis of the economic restructuring, the thesis found the shortcomings of rural economic restructuring in the new rural development in Hanoi: (i) rural economic structure has shifted positively, but the ratio of the agricultural sector is still relatively high; the ratio of service sector has increased but slowly and has not ultilised effectively the local advantages; (ii) Within sectors, the economic structure transfer is unclear according to the orientation of the city on the restructuring of rural economy in new rural development; (iii) The tendency of large-scale production in economic development, although well-formed, has not met the demand in the pace of transfer to create truly productive production areas with key commodities (iv) The process of economic restructuring has been driven by the increase of science and technology elements in line with the industrialization and modernization process, but is not enough to create a fundamental change in product quality and influence the living environment; (v) Land productivity, labor productivity, and rural poverty in rural areas in Hanoi, despite significant improvements but not commensurate with the existing potentials, there is a large gap in average personal income between rural and Hanoi or the urban areas The causes for these limitations are: land policy and other policy mechanisms are not synchronous; the plans are also passive, lacking in detail and lack of feasibility; Policies and methods to mobilize the participation of economic entities are limited, mostly the cooperatives and enterprises; the market for commodities in rural areas is limited; The research, development and application of new science and technology into production is limited; Rural infrastructure is not synchronous and did not meet the demand for technical analysis; human resource quality is limited and unevenly distributed; Capital mobilization for new rural construction is still low and still relies mainly on state budget From the above assessment, the thesis proposes the viewpoints and orientations on rural economic restructuring in the new rural development in Hanoi, in which the rural economic structure transfer must be suitable with development orientations, in line with the plans; ensure harmonious development, focus on science and technology investment, strengthen the initiative and ensure the effectiveness, sustainability The thesis also outlines seven groups of recommendations to promote rural economic restructuring in new rural development: (i) stronger and more radical reform of the Party, State and City policies on rural areas, farmers and agriculture in new rural development; (ii) Consideration should be given to research and support to the activities of economic entities in order to reform the business organisation in rural areas, especially in agricultural production and trade; (iii) Pay attention to improving the officials’ capabilities and increasing the participation of the people; (iv) Promote investment in product research and market development; (v) Strengthening investment in the construction and improvement of rural infrastructure; (vi) To focus on investment in developing rural human resources to meet the needs of economic restructuring; (vii) Strengthen the mobilization of investment capital for restructuring rural economy in new rural construction Although the thesis has achieved the objectives set out, but for both objective and subjective reasons, it just focused only on the study of rural economic restructuring in Hanoi on the basis of considering the relationship between rural economic structure transfer with new rural development, did not quantified the impact of the new rural development program on rural economic structure transfer in Hanoi This is open to further research The author wishes to receive the contributions and support of experts and researchers to improve and further develop this research