Levanbay 37964 tom tat luan an tieng anh le van bay 12 8 2021 7679

THAI NGUYEN UNIVERSITY UNIVERSITY OF AGRICULTURE AND FORESTRY LE VAN BAY ECONOMIC DEVELOPMENT IN NEW RURAL CONSTRUCTION TOWARDS URBANIZATION IN PHO YEN TOWN, THAI NGUYEN PROVINCE Major: Rural Development Code: 9620116 SUMMARY OF DOCTORAL DISSERTATION RURAL DEVELOPMENT THAI NGUYEN - 2021 The work was completed at UNIVERSITY OF AGRICULTURE AND FORESTRY – THAI NGUYEN UNIVERSITY Scientific supervisors: Assoc Prof Dr Duong Van Son Assoc Prof Dr Do Anh Tai Reviewer 1: Review 2: Review 3: The dissertation will be defended in front of the Committee at the University level held at UNIVERSITY OF FORESTRY - THAI NGUYEN UNIVERSITY At time date month 2021 The dissertation can be found at: National Library Thai Nguyen University Learning Resource Centre Library of Thai Nguyen University of Agriculture and Forestry LIST OF PUBLICATIONS RELATED TO THE THESIS Le Van Bay, Duong Van Son (2021), "Some solutions to develop the agricultural economy in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province", Journal of Science and Technology of Thai University Nguyen, 226 (01), p 127-134 Le Van Bay, Do Anh Tai (2021), " Promoting the development of socioeconomic infrastructure for economic development in the construction of new rural areas towards urbanization in Pho Yen town, Thai Nguyen ", Journal Economic Journal of Asia - Pacific, No 590, p 45 - 47 PREAMBLE Urgency of the topic The National Target Program on New Rural Construction for the period 2010-2020 oriented economic development in new rural construction such as: building new rural areas with modern socioeconomic infrastructure; appropriate economic structure and forms of production; linking agriculture with the rapid development of industry and services; attaching rural development with urban areas according to planning; the material and spiritual life of residents is increasingly improved Pho Yen town, located in the south of Thai Nguyen province, adjacent to Hanoi capital, is a centre of industry, services, traffic connection This makes the area play an important role in promoting the socio-economic development of the south of Thai Nguyen province From a purely agricultural district, agricultural production is the main, up to now, the economic structure of Pho Yen has shifted towards industryconstruction; services and agro-forestry Over the years, Pho Yen Town has always encouraged local people to actively shift production and business activities, which created an emulation movement for economic development, hunger eradication and poverty alleviation As a result, many households have boldly pioneered in getting rich with effective economic development models; actively built new rural areas Hence, rural areas of the town have witnessed more and more changes In addition, the issue of rural urbanization, one of the spearheads of new rural construction and rural economic development, to ensure modern infrastructure associated with the development of production, trade, and services in rural areas in Pho Yen town has not been given due attention From the above problems, the research aims to analyse the status of rural economic development of Pho Yen, point out the advantages and limitations as well as proposed solutions, methods to improve the speed and efficiency of economic development Especially, the rural economy in new rural construction towards urbanization in Pho Yen is very important to help a potential town like Pho Yen breakthrough and develop rapidly Therefore, conduction of research " Economic development in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province " has scientific and practical significance for Pho Yen town, a young urban area with many large industrial parks, adjacent to Hanoi capital Research objective 2.1 General objective Through assessing the status and analysis of the influential factors, the thesis proposed solutions to economic development in new rural construction towards urbanization in the town of Pho Yen, Thai Nguyen province in the following years 2.2 Specific objectives - Systematizing the theoretical and practical literature about economic development in the new rural construction towards urbanization - Assessing the current situation and analyse factors affecting economic development in the construction of new rural areas towards urbanization in Pho Yen town, Thai Nguyen province in the period 2016 2020 - Proposing economic development solutions in the construction of new rural areas towards urbanization in Pho Yen town, Thai Nguyen province by 2030 New contributions of the dissertation 3.1 Theoretical contributions - The thesis contributes to generalizing and modifying research on economic development in new rural construction towards urbanization By systematizing and generalizing, the thesis determined the contents, built, analysed, and evaluated the indicators of rural economic development in Pho Yen town - The thesis systematized the main studies related to rural economic development as well as in the construction of new rural areas towards urbanization These studies accumulated certain relevant contents for Vietnamese researchers and agencies to refer to - The thesis clarified the factors affecting economic development in new rural construction of areas towards urbanization 3.2 Practical contributions - Based on the theoretical framework built on economic development in new rural construction towards urbanization, the thesis analysed the current situation, clarified the achievements and limitations of economic development in new rural construction towards urbanization in Pho Yen town from 2016 to 2020 and pointed out causes of those limitations; thereby, proposing viewpoints and solutions to promote the development of new rural economic construction towards urbanization in Pho Yen in the future - The thesis pointed out the main factors affecting economic development in the construction of new rural areas towards urbanization in Pho Yen town This is a premise to focus on improving the efficiency of rural economic development here - The research results of the thesis are the basis for the management at local government as a reference to promote economic development in the new rural construction towards urbanization At the same time, it is used as a reference for learning, teaching and scientific research at universities and research institutes throughout the country Structure of the thesis In addition to the introduction and conclusion, the thesis is structured into four chapters as follows: Chapter LITERATURE REVIEW 1.1 Theoretical basis of economic development in the new rural construction towards urbanization 1.1.1 Rural area and rural development 1.1.1.1 Rural concept According to the provisions of Clause 1, Article of Decree 57/2018/ND-CP on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas, the concept of a rural area is specified as follows: Rural area is an administrative boundary area excluding wards of towns, districts and cities” 1.1.1.2 Rural development Rural development in Vietnam can be generalized into three stages as follows: The period 1945-1975: the country was still divided by war, the starting point of the economy and agriculture was very low Period 1975 - 1986: the country carried out the construction of a self-sufficient economy, completely closed off from the world economy From 1986 to the present: The 6th National Congress of the Communist Party of Vietnam in December 1986 opened a new page in the construction and development of a completely new Vietnam- a modern and developed country 1.1.2 New rural construction 1.1.2.1 New rural area It can be seen that the views of Vietnamese researchers on the new rural area are quite consistent when they all think that the new rural area is a rural area with socio-economic development, a clean and beautiful civilized village, sustainable production, the people's material and spiritual life improved, people's intellectual level increased, national culture preserved and developed, security maintained 1.1 2 New rural construction a Basic views and contents in new rural construction New rural construction is the process of transforming and creating new values for rural areas in terms of political security, economy, culture, and modern production methods A new rural area is the transformation of the rural face based on preserving and promoting progressive values and achievements, building new values in line with the trend of the ages, meeting established criteria suggest b Participants in new rural construction Building a new rural area is the process of building an economic, political, cultural, social and rural environment in order to improve the quality of life of rural people, develop harmoniously, and shorten the gap between urban and rural areas The construction process with the subject is rural people and with the active support of the State and other organizations In which, the main subjects participating in the construction of new rural areas include: (1) People; (2) State; (3) Enterprises; (4) Other organizations 1.1.3 Economic development Conceptually, economic development is the process of growing up and improving all aspects of the economy It includes economic growth and completeness in terms of economic structure, institutions, and quality of life 1.1.4 Economic development in new rural construction towards urbanization 1.1.4.1 Concept Economic development in new rural construction towards urbanization is to build modern agriculture associated with the development of industry, cottage industry and rural services; shifting economic structure, labor structure into a positive direction; science and technology is a breakthrough in the economic development of new rural construction, contributing to restructuring the rural economy towards sustainability; diversify forms of production organization, develop modern socio-economic infrastructure in service of rural economic development; forming industrial-service clusters, export processing zones, eco-tourism areas, modern socio-economic infrastructure, developing urban and rural areas 1.1.4.2 Characteristics of economic development in new rural construction towards urbanization 1.1 The role of economic development in new rural construction towards urbanization 1.1 4 Basic contents of economic development in new rural construction towards urbanization (1)Planning economic development in new rural construction towards urbanization (2) Increasing economic social infrastructure in new rural construction towards urbanization (3) Economic development and production organization for economic development in new rural construction towards urbanization 1.1.4.5 Factors affecting economic development in new rural construction towards urbanization The following factors affecting economic development in new rural the construction towards urbanization that need to be analyzed and interpreted are: (1) Natural conditions; (2) Infrastructure; (3) Science and technology; (4) Human resources; (5) Cooperation in production; (6) The association between enterprises and farmers, production households; (7) The development of industrial zones and urban areas; (8) Capital support from the State; (9) Policy for the rural economic development of the State 1.2 Overview of international and domestic research published about economic development in new rural construction towards urbanization 1.2.1 Overview of research on rural development 1.2.2 Overview of research on economic development in new rural construction towards urbanization 1.2.3 Experience in some localities in the country 1.2.3.1 Dong Trieu town, Quang Ninh province 1.2.3.2 Vinh Loc district, Thanh Hoa province 1.2.3.3 Nam Dinh province 1.2.3.4 Lessons learned in economic development in new rural construction in localities 10 Through studying some experiences in rural economic development associated with new rural construction, it can be seen that the coordination role of local authorities and people is very important The experiences drawn come from the learning and practical conditions of implementing rural economic development associated with new rural construction In order to contribute to rural economic development, in addition to new rural construction, in the coming time, it is necessary to focus on the following solutions: Firstly, carry out effectively the propaganda, education to create a high unity of awareness within the Party and residents in communes about the views, contents, methods, mechanisms and policy of the State on new rural construction so that each citizen can understand it clearly, and actively participate with high consensus, joint effort and selfdiscipline Secondly, pay attention to train, foster, increase qualifications and knowledge on new rural construction for staff at all levels, especially officials who directly guide implementation at grassroots levels like communes, villages and hamlets Thirdly, each locality must base on its characteristics, advantages and urgent requirements of the local people to promote broad democracy, listen to the people's opinions, and have proactive, creative methods, prioritize necessary contents to implement first, focus on investment, mobilize resources in general, create joint ventures with businesses, assign implementation to organizations in the political system suitably and flexibly to the specific conditions and characteristics of each commune Fourthly, emphasize directing the work of ensuring food security, food hygiene and safety and protecting the ecological environment Fifthly, diversify the mobilization of resources for new rural construction When implementation of the program is initialized, partial support from the central budget is necessary to create momentum, confidence for the local people, create a foundation to attract resources for implementation, integrate the targeted programs in the area; mobilize capital from enterprises through the forms of investment attraction, joint venture, association and especially increase credit capital for households, 26 Main employees in cooperatives 698 652 663 613 562 593 (Source: Thai Nguyen Statistical Yearbook 2019 and data of Pho Yen Statistical Office) It can be seen that, although the number of agricultural cooperatives in Pho Yen town increased, the number of employees in the cooperatives tends to decrease The reasons are mainly because the cooperatives have not yet brought as high income for employees as companies in the non-agricultural sector here Survey on activities at 20 agricultural enterprises - cooperatives in Pho Yen town showed that: - Regarding the source of purchasing raw materials for production, businesses bought materials from traders at a higher rate than buying directly from farmers Although the price is higher, businesses often buy from traders since it is more convenient, and they can buy a large number of agricultural products at once Table 3.18 Surveying the sources of purchasing raw materials for production of agricultural enterprises-cooperatives in Pho Yen town Quantity (Enterprise) Percentage (%) Buy from merchants 11 55 Buy directly from households 45 Total 20 100 Source of raw material purchase (Source: Survey) - Most enterprises regularly have production support activities for farmers, but up to 30% of enterprises-cooperatives not provide production support for farmers This can lead to the difficulties of agricultural production in meeting the requirements of enterprises Table 3.19 Survey on production support activities for farmers of agricultural enterprises-cooperatives in Pho Yen town Quantity (Enterprise) Percentage (%) Regular support 40 Little or no support 12 60 Total 20 100 Production support activities for farmers (Source: Survey) - Regarding agro-product offtake activities for farmers, most enterprises-cooperatives regularly consume agricultural products for farmers, but still up to 20% of enterprises not carry out offtake activities and buy only when they need If the offtake plans are not implemented from the beginning, both the supply and demand for agricultural products will always be passive in pricing and production quantification Table 3.20 Survey on agro product offtake activities of agricultural enterprises-cooperatives in Pho Yen town Off take activities of agricultural products Quantity (Enterprise) Percentage (%) No consumption 20 Rarely buy directly from people 35 28 Often buy directly from people 45 Total 20 100 (Source: Survey) - Regarding the support of local authorities for production and consumption activities of agricultural enterprises-cooperatives, the data shows that the locality tend to support more in production, typically prioritizing on electricity, water, training activities, testing, product research and development, etc Table 3.21 Survey on supporting activities in production and local consumption for agricultural enterprises-cooperatives in Pho Yen town Activities to support enterprises cooperatives in production Quantity (Enterprise) Percentage (%) No 11 55 Yes 45 Quantity (Enterprise) Percentage (%) No 15 75 Yes 25 Activities to support businesses cooperatives in consumption (Source: Survey) In general, in the process of new rural construction in Pho Yen town, agricultural enterprises-cooperatives have not contributed much The number and proportion of this type increased insignificantly 3.2.3.5 Economic restructuring The development of the industry-construction sectors in Pho Yen has attracted a large number of laborers from other localities The current population of the whole town is about 200,000 people, including 174,000 permanent residents and 88,000 people living in the inner town The average population growth rate is 6.2% With the trend of rapid economic restructuring from agriculture to industry in recent years, the proportion of non-agricultural workers in the whole urban area is up to 81.47%, especially in the inner town is 90.48% 3.2.3.6 Economic growth rate Statistics show that the total production value of Pho Yen town has increased over the years and tends to increase in the future, the average growth rate of 17%/year is quite high compared to the general growth rate of Thai Nguyen province (7%) and the whole country Production value of Pho Yen town 2015-2020 (billion VND) 900000,00 800000,00 749727,510 700000,00 653480,500 619218,00 600000,00 497946,500 500000,00 408650,900 400000,00 344719,200 300000,00 200000,00 100000,00 Năm 2015 2015 Năm 2016 2016 Năm 2017 2017 Năm2018 2018 Năm 2019 2019 Năm 2020 2020 Year Figure 3.8 Production value of the whole town of Pho Yen 2015-2020 (Source: Pho Yen Town Statistical Office) 30 Most of industrial production value in the town in recent years came from 100% foreign-owned companies Especially, the appearance of the Samsung Thai Nguyen high-tech complex project since 2014 has brought the industrial production value of the town in year (from 2013 to 2014) to 4,21% The percentage of industrial production value of 100% foreignowned companies to the total production value of the whole town increased from about 10% before 2013 to about 98% in recent years Table 3.22 Industrial production value in Pho Yen town Unit: million VND Percentage Year Total value 100% foreign-owned companies (%) 2015 343,029,500 339,598,600 99.00 2016 406,864,300 403,069,300 99.07 2017 496,199,200 490,732,900 98.90 2018 617,406,100 605,896,600 98.14 2019 651,624,200 638,917,500 98.05 2020 747,804,310 738,082,800 98.70 (Source: Pho Yen Town Statistical Office and the author's calculations) Pho Yen is a locality that has made strong strides in attracting new investment projects, creating breakthroughs in socio-economic development In particular, the investment project of Samsung Group in Yen Binh Industrial Park has contributed to increasing budget revenue and creating jobs for tens of thousands of local workers By the end of 2019, targets, and tasks for the 2015 - 2020 period were basically completed, many targets were completed at a high level The economy continued to grow strongly, attracting many new investment projects to the area; the average economic growth rate reaches over 25%/year; the economic structure has been positively shifted towards the development of industry, trade, and services Table 3.23 Total value of agricultural production in Pho Yen town The whole town Year Production value (billion VND) Agriculture industry Growth rate Production value (billion VND) Growth rate 1,689.7 Rate of agricultural production value (%) 2015 344,719.2 0.49% 2016 408.650,9 18.55% 1,786.6 5.73% 0.44% 2017 497.946.5 21.85% 1,747.3 -2.20% 0.35% 2018 619,218.0 24.35% 1.811.9 3.70% 0.29% 2019 653.480.5 5.53% 1,856.3 2.45% 0.28% 2020 749.727.5 14.73% 1,923.2 3.60% 0.26% (Source: Pho Yen Town Statistics Office and the author's calculation) With the economic growth rate calculated based on the total production value of the whole province increasing by an average of 17.57% in the last years, Pho Yen town completely exceeded the target to achieve the second-class urban area, with the required economic growth must reach 6.5-7% 3.2.3.7 Population a) Population size Pho Yen town has a total area of 25,886.9ha, population of 205,037 people, in which, permanent population is 174,055 people and converted population is 46,908 people With the above population, based on the requirements of the total population criteria, compared with the criteria 32 of the third-class urban area, the population that needs to be achieved is 100,000-200,000 people, Pho Yen town gets the highest score The population criteria of the third-class urban area is points (criteria score frame is 1.5-2 points) Pho Yen's population by regionsPho Yen's population by regions 250000 200000 150000 100000 50000 Total population 2015 2016 2017 171307 172040 173945 2018 2019 2020 193843 197088,0 199059 Urban population 41242,0 38980,0 40055,0 55028,0 54711,0 56817,0 Rural population 130065,0 133060,0 133890,0 138815,0 142377,0 142242,0 Total population Urban population Rural population Figure 3.9 Pho Yen town's population divided by region (Source: Pho Yen Town Statistical Office) Before 2013, 90% of the population was rural population, but by 2020 the proportion of rural and urban population was 71.46 % and 28.54 % respectively The trend of urban population increase is more and more obvious b) Population growth rate With the development of industrial zones in Pho Yen town in recent years, there has been a strong attraction for workers This makes a remarkable shift in the labour force in the neighbouring areas to Pho Yen, creating a relatively high population growth rate For the overall population growth rate of the whole town as well as the population growth rate in urban and rural areas, Pho Yen completely exceeds the requirements for the population growth rate of the third-class urban area, even exceeding the target on the population growth rate of the secondclass city c) Population density The population density of Pho Yen town in 2020 is 769 people/km2, which is relatively high compared to the national average population density (about 290 people/km2) It can be seen that the population density in urban and rural areas is not enough to meet the criteria of the third-class urban area, but the population distribution over the whole town is quite uneven 3.3 Analysis of factors affecting economic development in new rural construction towards urbanization in Pho Yen town 3.3 Results of analysis of factors affecting economic development in new rural construction towards urbanization in Pho Yen town - Thai Nguyen from survey data 3.3 1 Natural condition Based on the survey results of target groups on the influence of natural conditions on economic development in new rural construction areas towards urbanization in Pho Yen town, it can be seen that the assessment levels are all quite high Most of them reached the level of above with the rating from 3.89/5 to 4.6/5; The standard deviation between 0.49 and 0.94 is quite low, so the assessments are focused The results show that natural conditions had a great influence on the economic development of rural areas in Pho Yen town, which creates passiveness, and high dependence of agricultural production on natural conditions in the area 3.3.1.2 Science Technology Regarding the evaluation of the survey groups, the rating level is quite similar with the average rating from 4.43/5 to 4.49/5 This shows that the survey respondents all agreed that applying science and 34 technology to rural production efficiency economic activities would quickly improve However, with a standard deviation of 1.4 for people's assessments of waste and waste treatment in the production process, many households did not really attach the importance of environmental protection in agricultural production Table 3.27 The assessment results of the influence of science and technology on economic development in rural construction towards urbanization in Pho Yen town Staff’s assessment Science Technology Enterprisescooperatives’ assessment Farmers’ assessment Level Standard deviation Level Standard deviation Level Standard deviation Activities using machines, mechanization 4.77 1.01 4.75 1.02 4.86 1.20 The preservation and processing of agricultural products 4.25 0.79 4.45 1.19 4.32 1.06 Using equipment and machinery to treat waste and rural waste 4.46 0.93 4.10 0.97 4.40 1.40 (Source: Survey results and calculations of the author) 3.3 Production activities Based on the survey results in table 3.28 of target groups on the level of influence of production activities on economic development in new rural construction towards urbanization in Pho Yen town, the level of impact assessment is the highest on the labour force, particularly the number of workers, the skills of the workers, the production experience and experience sharing in production, with an impact rating from 4.13/5 to ,41/5 The respondents who were farming households rated the level of influence of production activities on economic development in rural areas was the highest (4.15/5), followed by enterprises-cooperatives (4.06/5) and staff 3.3 4.4 The development of industrial parks and urban areas Based on the survey results of target groups on the influence of the development level of industrial parks and urban areas on economic development in new rural construction towards urbanization in Pho Yen town, it can be seen that all three target groups rated the influence of this factor as not high as other factors However, the rating level still reached from 2.98 to 3.62, which means there is still a certain influence of this factor on the economic development in new rural construction towards urbanization in Pho Yen In which, the highest level of impact assessment is the criterion on the development of industrial zones and urban areas (average of 3.43/5) and the assessment of the farming households on the influence of this criterion This is also the highest (average of 3.58/5) 3.3 State capital support Based on the survey results of target groups about the influence of State capital support activities on economic development in rural construction towards urbanization in Pho Yen town, it can be seen that the farming households rated the capital support factors in agricultural production was the highest factor with an assessment of 4.53/5 This reflects a high dependence of farming households on the State's capital support policies in agricultural production The criterion that is assessed to have the greatest influence on this factor is the level of loans (average rating of 4.24/5), in which, farmers and enterprises-cooperatives both assessed the influence at the high level (4.2/5 and 4.56/5) 3.3.1.6 State policy The results of the survey show that the State's policies on Agricultural production activities were the most concerned by enterprisescooperatives with an average impact assessment of 4.15/5 In which, input support policy, investment policy and science and technology policy were rated as the highest influence 36 The general assessment results of all three groups also show that the highest influence level of policy factors on economic development in rural Pho Yen was the criterion of investment policy (the average rate was 4.09/5) and science and technology policy (average rate was 4.07/5) 3.3.2 General assessment of influencing factors Through the analysis results of the influential factors on the economic development in new rural construction towards urbanization in Pho Yen town, the following conclusions can be drawn: The assessment level of the above influential factors in descending order including: (1) Scientific and technical factors; (2) Factors of natural conditions; (3) Factors of the State's capital support; (4) Factors of production activities; (5) Factors of State policy; (6) Factors of the industrial and urban development 3.3 The limitations of economic development in new rural construction towards urbanization in Pho Yen town and the causes Through the above analysis in the process of economic development in new rural construction towards urbanization in Pho Yen town, there are challenges and certain causes The following can be mentioned: Firstly, Pho Yen has uneven development Pho Yen is one of the areas with the highest growth rate in the country at the moment thanks to the successful investment attraction and recognition of Pho Yen town as the third-class urban area Secondly, the agricultural sector in Pho Yen town in recent years has slowly shifted toward modernity The structure of the crop sector still accounts a large proportion of the total value of agricultural products, the livestock and supplementation sectors have a relatively low proportion Thirdly, the rural economic structure by region has not yet met the requirements of large and concentrated commodity production The fragmentation in agricultural production in Pho Yen town still highly remains, causing difficulties for development towards large production Fourthly, the process of agricultural mechanization and the application of science and technology to production is still slow, many stages in agricultural production are still manual, with low productivity The average agricultural land area per household is low, so in fact, the introduction of machines into agricultural production in the province is still very slow Fifthly, large production areas with modern management and linking between agricultural planning and processing industry planning, service planning and support policies have not yet been formed Regional linkages in agricultural production of communes to communes, town to province or regions are still limited Cooperative economic organizations and linkage models in agricultural production organizations have not been developed compared to the requirements and are still inefficient The link between farmers and businesses is weak and unsustainable The link between agriculture and industry and services is still very limited in terms of spatial organization and commodity chain Sixthly, the rural economic structure according to economic sectors is still unreasonable The capacity of the state economy and the collective economy have many shortcomings that have not kept up with the requirements of rural economic development of the province The development of the private economy is still highly spontaneous, not closely following the provincial planning The number of foreign investment projects in the province's agriculture is still limited, mainly focusing on purchasing and processing agricultural products The linkage between economic sectors is still loose, not supporting each other well in the development process CHAPTER SOLUTIONS FOR ECONOMIC DEVELOPMENT IN NEW RURAL CONSTRUCTION TOWARDS URBANIZATION IN PHO YEN CITY, THAI NGUYEN PROVINCE TO 2030 4.1 Forecast domestic and international context 38 4.2 Economic development goals 2020-2025, vision to 2030 of Pho Yen town in the period of 4.3 Proposing solutions for economic development in new rural construction towards urbanization in Pho Yen town 4.3.1 Strengthening the role of the government on economic development in new rural construction towards urbanization 4.3.2 Promoting rural economic restructuring 3.3 Developing infrastructure systems in rural areas 4.3.4 Developing high-quality human resources 4.3.5 Modernizing agricultural and rural production 4.3.6 Developing local products OCOP 4.3.7 Strengthening rural urbanization in a positive direction to promote economic development in new rural construction CONCLUSIONS AND RECOMMENDATIONS Economic development is a very urgent issue in rural construction activities, especially new rural construction towards urbanization It sets the stage for the development of other aspects in the rural area including culture and society Economic development associated with new rural construction in the direction of urbanization is also the right policy and direction to improve production capacity as well as the life of rural people From the above urgency, the thesis delves into the analysis of theories related to rural areas, economic development in rural construction in order to find a way to analyse correctly in economic development activities in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province The thesis has pointed out the actual situation of economic development in new rural construction towards urbanization such as the development of the locality is uneven; the agricultural sector in Pho Yen town in recent years has shifted slowly towards modernity; the rural economic structure by region has not yet met the requirements of large commodity production; the process of agricultural mechanization and the application of science and technology to production is still slow; large production areas have not yet been established; the structure of rural economy according to economic sectors is still unreasonable In addition, after going through analytical techniques, the author has identified six factors that have the most influence on economic development in new rural construction in Pho Yen town From the above analysis results, the thesis also proposes specific solutions to promote economic development in rural construction in the direction of urbanization in Pho Yen town, including strengthening the role of the government in rural economic development; infrastructure system development; qualified human resource development; production modernization; OCOP product development; accelerating rural urbanization The results of the thesis have partly given the overall picture of economic development in new area rural construction towards urbanization in Pho Yen town and solutions and directions to improve the efficiency of economic development in Vietnam The thesis highlighted and clarified innovative points and have values such as some theories of economic development in building new rural areas towards urbanization; issues in rural economic development activities; some factors affecting economic development in new rural construction towards urbanization in Pho Yen town The above research results are also recommendations for the locality to improve the efficiency of economic development activities in new rural construction towards urbanization 40