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HO CHI MINH NATIONAL ACADEMY OF POLITICS PHI THI HANG LABOR STRUCTURE TRANSFER BY INDUSTRIES IN THAI BINH AT THE PRESENT Major : Development Economics Code: 62 31 05 01 SUMMARY OF PhD THESIS IN ECONOMICS HA NOI - 2014 The thesis was finished at the Ho Chi Minh National Academy of Politics Academic Supervisors: 1. Assoc. Prof. Dr. Nguyen Thi Thom 2. Assoc. Prof. Dr. Nguyen Thi Huong Judge 1: …………………………………. …………………………………. Judge 2: …………………………………. …………………………………. Judge 3: …………………………………. …………………………………. The thesis will be defended in front of a panel of examining judges at the Ho Chi Minh National Academy of Politics At…,… …., 2014 The thesis can be found for study at the National Library and the Library of Ho Chi Minh National Academy of Politics 1 INTRODUCTION 1. Necessity of the thesis Labor structure transfer plays an important role in economic structure transfer. Labor structure transfer is considered as one of important missions that serves economic transfer. It is the result and the driving force of economic structure transfer, promoting modernization, industrialization and helps balance the supply-demand in the labor market. Labor structure transfer not only abides economic laws but aims to develop sustainably, stabilize society, improve environment and develop people. Thái Bình is a coastal province, along Red river with relatively flat terrain, which favors economic and social development, especially marine economic development. In the past few years, economic structure of Thai Binh has seen positive improvement. In 2001, forestry, agriculture, fishery made up 57,6% GDP, in 2012, the figured reduced to 32,2%; industry and construction contribution to GDP has increased. In 2001, it only counted for 15,2% GDP, in 2012, the statistics was 34,0%; service industry contribution increased from 27,2% in 2001 to 32,0% in 2012 [10, p. 41], [13, p. 44]. Together with the above transfer trend, labor structure in Thai Binh also experienced the decrease in employments in agriculture and increase in employments in industry and service. In 2001 labors in agriculture counted for 75,12% of total labors in Thai Binh, in 2012, the number reduced to 58,3%; labors in Industry and construction increased from 13,0% in 2001to 25% in 2012; labors in service counted for 11,9% in 2001, increased to 16% in 2012 [11, p. 19], [13, p. 29]. The question is that labor structure by industries of Thai Binh is transferring at what speed and is it appropriate with economic structure transfer of the province, does labor structure transfer have good impacts on economic structure transfer in the directions of modernization, industrialization? How to make labor structure transfer by industries match with local economic structure transfer? How should the labor structure transfer be to meet the provincial target of being an industrial province by 2020 with structure of commerce-service, industry-construction, agriculture –forestry- fishery? To promote economic structure transfer in Thai Binh, how should labor structure transfer? In order to answer those questions, there is a need for a theoretical systematic analysis of labor structure transfer by industries in general and at local level in particular. From that, labor structure transfer by industries in Thai Binh will be 2 analyzed and evaluated to find solutions to promote the process. Originated from these above reasons, the doctorate thesis on “Labor structure transfer by industries in Thai Binh at the present” therefore carries theoretical and practical meanings with necessity and importance. 2. Objectives and missions of the thesis 2.1. Thesis objectives To evaluate the labor structure transfer by industries in Thai Binh and recommend directions and forecast labor structure transfer by industries in Thai Binh by 2020 together with measures to be taken. 2.2. Thesis mission - To establish theoretical system on labor structure transfer by industries at provincial level. - To analyze the labor structure transfer by industries in Thai Binh based on established theory. - To clarify achievements, limitations in labor structure transfer by industries in Thai Binh and causes of the limitations. - To recommend directions and solutions to promote appropriate labor structure transfer by industries and reform economic growth model to achieve key objective of the province of being an industrial province by 2020. 3. Research objects and scale of the thesis 3.1. Research objects The thesis studies labor structure transfer by industries and in industry in Thai Binh. 3.2. Research scale -The thesis focuses on labor structure transfer by industries and in industry in Thai Binh since 2001 and orientations up to 2020. The thesis does not study labor structure transfer by economic sectors and regions. - The thesis studies labor structure transfer managed by Thai Binh province, does not study freelancers and seasonal labors in the province. 4. Research methods In order to serve research objectives and to do stated missions of the thesis, following methods will be used: - Marx-Lenin dialectic materialism and historic materialism. 3 - Statistics, secondary data compiling from legal sources used as basis to compare, analyze, synthesize, evaluate labor resources, labor structure transfer by industries. All are used to evaluate and propose solutions to promote labor structure transfer by industries in Thai Binh. 5. New scientific findings of the thesis - To supplement and clarify contents and criteria of labor structure transfer by industries. - To define and clarify factors influencing labor structure transfer by industries in the province. - To evaluate the labor structure transfer by industries in Thai Binh and causes of limitations in labor structure transfer by industries in Thai Binh. - To propose some directions and forecast labor structure transfer by industries in Thai Binh and some feasible specific solutions to do that transfer. 6. Thesis structure A part from introduction, conclusion, appendix, references, the thesis has 4 chapters and 10 sections. BASIC CONTENTS Chapter 1 LITERATURE REVIEW 1.1. NATIONAL AND INTERNATIONAL RESEARCHES ON THESIS TOPIC The thesis generalizes national and international researches including books, articles, scientific researches which are chronologically listed. To summary, there are three basic directions of study: 1.1.1. Researches on labor structure transfer in general This way, researches mostly focus on labor structure transfer, labor structure transfer in rural areas, in Red River delta and in provinces undergoing modernization and industrialization process. Based on the survey and analysis of labor structure transfer in the locality, the author proposes some solutions to create jobs and to use labor resources appropriately to meet requirements of modernization and industrialization. 1.1.2. Researches on labor structure transfer by industries by countries and territories 4 Researches mainly analyze the state of labor structure transfer by industries in Red river delta or nationwide, projections of the labor that need to move out of agriculture…At the same time, many authors propose solutions to promote labor structure transfer by industries in Vietnam, transferring labors in agriculture to non- agriculture, laborers with low income transferring to industries with higher income… 1.1.3. Researches on labor structure transfer by industries at provincial level Up to now, there are very few consistent and systematic works on national and international scales on labor structure transfer at local level. Some (if any) just mentioned labor structure transfer by industries in terms of scale, but quality. 1.2. FINDINGS RELATED TO THESIS TOPIC, ISSUE AND DIRECTIONS TO STUDY OF THE THESIS 1.2.1. Findings related to thesis topic Firstly, key issues of labor structure transfer by industries such as definitions of labor structure, labor structure transfer, labor structure transfer by industries, criteria and factors affecting labor structure transfer by industries in the directions of modernization and industrialization of agriculture, rural areas, the role of State in labor structure transfer in agriculture and in rural areas …are addressed. Secondly, situations and features of labor structure transfer in rural areas of different countries are generalized. Experience on agricultural labor structure transfer attached to modernization and industrialization, economic structure transfer and possibility to apply science and technology advancement in production and work productivity is forged. Thirdly, labor structure transfer quality in our country based on work productivity and employment elasticity indexes is analyzed. Also, challenges of labor structure transfer and labor structure transfer by industries are addressed. Fourthly, labor structure transfer situations in some provinces in Vietnam such as Bac Ninh, Da Nang, Ninh Binh, Ha Nam, Phu Tho… are analyzed, from that, achievements, limitations and causes of limitations to labor structure transfer by industries in these provinces are stated. Fifthly, some solutions are proposed to push labor structure transfer by industries in some provinces, which are completing policy mechanism related to labor structure transfer, economic structure together with creating jobs to improve people’s income; improving human resources quality, improving industries, professions and technology 5 that use a lot of labor to improve work productivity in rural, promoting labor export, doing good the immigration and population and family planning. 1.2.2. Raised issues need further study - Theoretically: To date, there has no comprehensive study on labor structure transfer by industry and in industry in terms of both scale and quality. There has been no study on criteria evaluating scale and quality of labor structure transfer by industries and in industry. - Practically: It is visible that there has been no study, analysis and evaluation of labor structure transfer by industries and in industry in terms of scale and quality on national, regional or local levels. For Thai Binh province, there has been no study on labor structure transfer by industries and proposals of directions, solutions to do labor structure transfer by industries from 2015 and 2020. That is why the topic was chosen as doctorate thesis by the author. 1.2.3. Approach - Approachably: the thesis studies labor structure transfer in industry in relation to economic structure in Thai Binh from two aspects: (i) labor structure transfer by industries in terms of scale; (ii)labor structure transfer by industries in terms of quality. - Theoretically: The thesis establishes theoretical system on labor structure transfer by industries at provincial level. Specifically, it will clarify: (i) definition of labor structure transfer by industries; (ii) contents of labor structure transfer by industries and evaluation criteria of labor structure transfer by industries; (iii) analysis and clarification of factors affecting labor structure transfer at provincial level. - Practically: (i) The thesis will survey experiences of labor structure transfer of three provinces which have similar backgrounds with Thai Binh, from that, some lessons will be drawn for labor structure transfer by industries in Thai Binh; (ii) The thesis will analyze and evaluate labor structure transfer by industries and in industry in Thai Binh in terms of scale and quality based on established theory in Chapter 2; (iii) The thesis will project labor demand with qualifications, in different economic industries in Thai Binh from now to 2020; (iv) Based on the evaluation the current state and projected labor demand of economic industries in Thai Binh up to 2020, the thesis proposes directions and solutions to promote labor structure transfer by industries in Thai Binh till 2020. 6 Chapter 2 THEORETICAL AND PRACTICAL FOUNDATION ON LABOR STRUCTURE TRANSFER BY INDUSTRIES AT PROVINCIAL LEVEL 2.1. DEFINITION, CONTENTS AND TRENDS OF LABOR STRUCTURE TRANSFER BY INDUSTRIES 2.1.1. Definition and contents of labor structure transfer by industries 2.1.1.1. Definition and contents of labor structure transfer by industries From general definition of labor structure, labor structure transfer, thesis author defines labor structure transfer by industries as follows: labor structure transfer by industries is the process of changes in ratio and quality of labor in different industries in a specific period of time, in a certain environment and of a certain trend. In fact, labor structure transfer is a process in which labor is reallocated in an advanced way to use labor effectively. That process is happening on the scale of the whole economy and in the limit of each groups of industries, within industry. Labor structure by industries change when there is a change in quantity and quality of labor in that certain industry. 2.1.1.2. Contents of labor structure transfer by industries Firstly, labor structure transfer by industries and in industry in terms on scale or ratio in industries. By that, labor structure transfer by industries process is the process in which labor transfers from agriculture, forestry and fishery from industry- construction, commerce-service. Secondly, labor structure transfer by industries and in industry in terms of quality. By that, the process requires considerations from many aspects: (i)does labor structure transfer by industries improve laborers’ professional skills?; (2) does labor structure transfer by industries bring labor structure by industries more appropriate with economic structure?; (iii) does labor structure transfer by industries improve work productivity; (iv) does labor structure transfer by industries improve laborers’ income? 2.1.2. Trend of labor structure transfer by industries Firstly, the trend of labor structure transfer by industries is attached to the trend of economic structure transfer by industries. This is the most important trend of labor structure transfer, is evident and objective to all countries undergoing the modernization and industrialization, which is divided into periods: (i) beginning 7 period, labor in agriculture, originally just growing rice, now start growing other crops; (ii) next period, when there is abundance in labor in agriculture, other non agriculture production industries such as industry, craft industry and service will be invested to attract labor in agriculture, creating the transfer from purely agriculture to labor structure of agriculture, industry and service. Secondly, the trend of labor structure transfer by industries attached to the changes of economic structure. The trend reflects the change of quality of labor resources. Based on the skills of laborers, the trend of labor structure transfer is divided into two periods of time: (i) low period, the transfer is expressed in the increase in labor with low-level skills and the decrease in labor with no training and education; (ii) high period, it is the increase in labor with technical skills, artisans, labors at tertiary education level and the decrease in labors with skills and qualifications of low level. Thirdly, the trend of labor structure transfer in industry from sections with low income to sections with high income. Specifically: (i) In industry: from traditional, processing sections to high tech sections; labor structure changes in the direction from producing products using a lot of labor to products contained greater capital and science-technology. (ii) In agriculture, labor in growing crops reduces while labor in raising animals or providing agricultural services increases; labor in agriculture transfers to fishery … (iii) In service, labor in simple service sections with low added value transfer to sections requiring intellect, technology and of high quality, increasing laborers in these industries… 2.2. EVALUATION CRITERIA AND FACTORS AFFECTING LABOR STRUCTURE TRANSFER BY INDUSTRIES 2.2.1. Evaluation criteria of labor structure transfer by industries Based on analysis of contents and trends of labor structure transfer by industries as above, the thesis author proposes two groups of criteria evaluating labor structure transfer by industries as follows: Firstly, first group evaluating labor structure transfer by industries in terms of scale contains two criteria: (1) speed of labor structure transfer by industries; and (2) ratio of labor structure transfer by industries. Secondly, second group evaluating labor structure transfer by industries and in industry in terms of quality has 5 criteria: (1) labor structure transfer by industries and in industry in terms of education (qualification and professional skills); (2) relation of labor 8 structure transfer by industries and economic structure transfer by industries; (3) elasticity index of labor curve or differences in income among industries and sections; (4) relation of average GDP/head and labor structure transfer by industries; and (5) labor movement in industries attached to changes in industrial work productivity. 2.2.2. Factors affecting labor structure transfer by industries at provincial level Labor structure transfer by industry at provincial level is affected by four key factors: Firstly, State’s policies on labor structure transfer by industries, including strategies and plans on labor structure transfer by industries, including, strategies, plans on labor structure transfer in general, labor structure transfer by industries in particular and policies on pushing labor structure transfer by industries. Secondly, speed of modernization and industrialization, urbanization of the locality. Thirdly, input resources such as science-technology, capital investment, labor and natural resources. Fourthly, other factors such as national and international labor movement; economic growth, international economic integration; development level of output products and services market … 2.3. EXPERIENCE OF LABOR STRUCTURE TRANSFER IN SOME PROVINCES AND LESSONS DRAWN FOR THAI BINH The thesis studies experience in labor structure transfer by industries in some provinces which share similar settings and backgrounds with Thai Binh: 2.3.1. Experience of labor structure transfer by industries of Ha Nam The thesis indicates achievements in labor structure transfer in Hanoi, which are results of combination between solutions groups and labor structure transfer views. Specifically: (1) Group of solutions improving labor supply, by means of establishing, implementing family planning program, issuing policies on labor movement to allocate labor appropriately and effectively with a focus on human resources training. … (2) Groups of solutions improving labor demand, by means of attracting investment in economy and society, creating stable jobs for laborers, completing and improving labor market, developing science-technology and other sectors… 2.3.2. Experience of labor structure transfer by industries of Vinh Phuc [...]... influence on labor structure transfer by industries in Thai Binh Specifically,: - Natural favorable conditions With a convenient location, at the development triangle Hà Nội - Hải Phòng Quảng Ninh, Thái Bình enjoys many good conditions for growth with close economic contact with surrounding provinces and Hanoi The Province has strengths in fishery with three sections of fresh water, pliohaline water,... supporting people to find jobs and labor supply 23 CONCLUSION With the topic of: “Labor structure transfer by industries in Thai Binh in the current time”, the author initially studied and clarified some theoretical and practical issues on labor structure transfer by industries Here are some findings of the thesis: 1 Labor structure transfer by industries is the changing process of ratio and quality of... urbanization in Tu Liem and drawn lessons, Labor and Society Magazine, Volume 296 6 Phi Thi Hang (2006), Job creation and placements for agricultural labor in the urbanization in Tu Liem, Hanoi, Political Theory Magazine, Volume 10/2006 . laws but aims to develop sustainably, stabilize society, improve environment and develop people. Thái Bình is a coastal province, along Red river with relatively flat terrain, which favors economic. establish theoretical system on labor structure transfer by industries at provincial level. - To analyze the labor structure transfer by industries in Thai Binh based on established theory. -. of scale; (ii)labor structure transfer by industries in terms of quality. - Theoretically: The thesis establishes theoretical system on labor structure transfer by industries at provincial level.