Purpose of study: To provide scientific foundation for planning and adjusting strategies, plans and policies of Lai Chau Province’s socio-economic development; To contribute to defining new and modern development methods for Lai Chau Province, which is basing on HRQ and technology with the orientation of sustainable development.
1 INTRODUCTION 1. The necessity of the thesis topic In the national or local level, human resources quality (HRQ) is always the decisive factor for socioeconomic development, for the assurance of income and enhancement of living standard for citizens Lai Chau is a northern mountainous province with particular socioeconomic conditions and facing much more difficulties than other localities in the country. For the rapid development, Lai Chau should change their ways of socioeconomic development, in which the main orientation is basing on HRQ and technology. This is a big and difficult development problem for Lai Chau when their HRQ is of low quality. Education level of Lai Chau province human resources (HR) is much lower than that of the whole country and of other northern mountainous provinces. Proportion of literate over15 population only accounts for 60%, in which literacy rate in rural areas is much lower than that in urban areas. Over15 population who has never gone to school makes up ¼ HR of this age. Trained over15 HR of Lai Chau is only 11%. HR without technical and qualification level accounts for 90%. In addition, HR has been facing many problems to be solved on knowledge, skills and physical strength as well as quality and working behaviours. HRQ of the province is more and more lagged behind compared with HRQ of nearby localities and with the average level of the whole country Confronted with that situation, the enhancement of Lai Chau HRQ is urgent to meet the requirement of the province’s socioeconomic development Therefore, studying to find out sciencebased solutions for the enhancement of Lai Chau HRQ plays an important role in the next period as well as in the long term From the above reasons, I, a research student chose the topic “Human Resources Quality in SocioEconomic Development of Lai Chau Province” to be the thesis topic, specialty of Economic Management 2. Purpose and meaning of the study of thesis topic Purpose of study: To provide scientific foundation for planning and adjusting strategies, plans and policies of Lai Chau Province’s socioeconomic development; To contribute to defining new and modern development methods for Lai Chau Province, which is basing on HRQ and technology with the orientation of sustainable development 2 Theoretical meaning: To contribute to building, completing HRQ analyzing and assessing methods as well as HRQ enhancement methods in socioeconomic development of the provincial locality; Practical meaning: Through the correct assessment of HRQ in socioeconomic development of Lai Chau Province and proposal of HRQ enhancement methods to meet the requirements of rapid and sustainable development of Lai Chau Province in the next period, this thesis will make contribution to the implementation of strategic breakthrough for HR development, to the socioeconomic rapid and sustainable development of Vietnam in general and Lai Chau Province in particular 3. Structure of the thesis Apart from introduction, conclusion, appendix and references, the content of this thesis includes 4 chapters CHAPTER 1: OVERVIEW OF RESEARCH ON HUMAN RESOURCES QUALITY IN SOCIOECONOMIC DEVELOPMENT 1.1 Overview of research published inside and outside the country on HRQ in socioeconomic development 1.1.1 Overview of research in foreign countries on HRQ in socioeconomic development * Studies on human factor and role of high quality human in economic growth: Adam Smith (1776), “Wealth of Nations” indicates that capital accumulation is the decisive factor to produce material wealth. “Theory of skilled working” by Leontief (1953, 1956) interprets that skilled workers and human capital are the cause for the formation of structure and distribution of international commerce for industrial goods. Robert M. Solow (1956) gives his opinions that technical improvement determines economic growth. D. B. Keesing (1966) claims that experts working in an industrial country are the most important production factor, but the expertness cannot be achieved in the short time “Theory of human capital” by T W Schultz, O S Becker, R Ebald, Win asserts that through the investment in security, society and education, technical skills of human resources can be increased, HRQ can be enhanced, which makes ordinary HR become “human capital”, in order to directly or indirectly promote production growth, produce “increasing income”, remove effects of “decreasing income” and limits of capital and labour (ordinary) factors to ensure the longterm economic growth. Lucas (1986) reckons that a country has to focus on the development of production with the limited but HRadvantaged capital to increase economic growth rate. Romo (1989) analyzes and demonstrates the effect of knowledge about professionalization and human capital accumulation on economic growth, and these two factors can produce “increasing income”, be “the maintenance for permanent motivation of economic growth”. Scot (1991) emphasizes the effect of capital investment on economic growth because the origin of technical improvement and human capital accumulation, knowledge accumulation is capital investment, which means capital investment determines technical progress, thereby make determination to economic growth * Studies on relations of HRQ with socioeconomic sustainable development and HRQ enhancement method: Altinok (2007) shows positive effects of education quality and HRQ on economic growth; at the same time implies that HRQ is first determined by education quality, the leading factor to ensure sustainable growth and socio economic sustainable development of each country. Changzheng Z. Kong Jin (2010) indicates that equality in education is in positive relationship with economic growth quality, in which equality in education is measured with Gini indicator in education and economic growth quality is measured by TFP Malolm Gillis with collective authors (1987), considers the development of labour force market, labour policies and labour attraction via industrialization are ways to enhance HRQ initiatively, actively and in the long term. Khan, Mohsin (2005) concludes that: A country with higher education level and better health status has higher growth of per capita average income; he gives recommendation on policies that the government should invest more in education to increase human capital, enhance HRQ, therein has higher and more sustainable economic growth rate. Zorlu Sengucel (2009) interprets the particularly important role of solving the problem of HR management in the 21 st century, which is solving the relationship between employees and organization, training of individuals and HR management organization Nygel Finch (2013) generalizes green growth strategy proposed by APEC 2013 leaders, in which creativity is considered the main motivation of the growth 1.1.2 Overview of research inside the country on HRQ in socioeconomic development * Studies on HRQ and HRQ measuring criteria: In this scope, HRQ is studied with two points of view. The first one is that HRQ is understood a process from input quality, inprocess quality, output quality and quality of results (effect sof HRQ in the long term). Thus, HRQ is a specific status of HR at a specific time or period. Studies of this direction include: Nguyen Hong Quang (2013), Nguyen Tiep (2005), Vu Ba The, Vu Dinh Hoe, Doan Minh Huan (2005), Tran Xuan Cau (2012)… * Studies on effects of HRQ on socioeconomic development, competitive capacity of the nation and provincial locality: Strong effects of HRQ on economic growth, employment and residents’ living standard are asserted in studies by Truong Minh Duc (2011), Le Thi Thuy (2012), Tran Xuan Cau (2012), VCCI (2008), Truong Thi Thuy Hang (2012), Nguyen Thi Nguyet (2008)… * Studies on factors affecting HRQ, HR development to meet the requirements of regional and local socioeconomic development: Factors decisively affect HRQ such as education and training, labour and employment policies, population, socioeconomic condition, gender equality. Studies of this direction involves those by Bui Van Binh (2009), Le Duy Binh and other authors (2009), Le Thi Hong Diep (2009), Le Thi Thuy (2012), Doan Hung and other authors (2010), Nguyen Thi Giang Huong (2013). Another study direction is the effect of development of regional connection and HR demand on socioeconomic development of the region and provincial locality, those in this direction include: Nguyen Van Huan and his coworkers (2012), Bui Thi Thanh (2008), Nguyen The Phong (2010), Nguyen Hoai Bao (2009), Tran Thanh (2012), Nguyen Giac Tri (2015),… 1.1.3 Problems of the thesis topic not having been studied and solved by published projects Studies mentioned above (section 1.1.1) have not mentioned or deeply solved some important problems of the thesis topic, such as: Not clearly defining and interpreting components of HRQ; system of criteria and targets for the evaluation of HRQ in the provincial locality; position, role of HRQ and enhancement of HRQ in socioeconomic development of the provincial locality; effect of socioeconomic development on quality and enhancement of HRQ in the provincial locality; HRQ enhancement methods, contents in governmental management to HRQ enhancement in the provincial locality Not deeply studying and assessing real situation of HRQ and not proposing synchronous solutions for HRQ enhancement to serve the demand of socioeconomic development of Lai Chau Province; not solving the problems of what should be done by the State and local authority, and how HRQ can be enhanced to meet the requirements of socioeconomic development in Lai Chau Province… 1.1.4 Problems focused to be studied and solved by the thesis Building theoretical frame for the analysis and assessment of HRQ, HRQ enhancement methods, HRQ affecting factors and role of HRQ enhancement in socio economic development in the provincial locality Defining particulars in HR and economy – society of Lai Chau Province; objectively assessing real situation of HRQ, restrictions and their reasons to suggest solutions of high practical meaning in HRQ enhancement to meet the requirements of socioeconomic development of Lai Chau Concentrating on the interpretation of problems on and role of the State and Lai Chau authority Province in HRQ enhancement to meet the requirements of the province’s socioeconomic development 1.2 The thesis’s direction for the solving of study problems 1.2.1 Aims of the research * General aims: To clarify scientific basis for HRQ and suggest solutions for the enhancement of HRQ to meet the requirements of socioeconomic development in Lai Chau Province in the next period * Specific aims: (1) To clearly define reasoning basis for HRQ in socioeconomic development and factors affecting HRQ in the provincial locality; (2) To objectively assess real situation of Lai Chau HRQ, clearly determine strong and weak points and basic reasons affecting HRQ of Lai Chau Province; (3) To recommend main solutions to enhance HRQ of Lai Chau Province to meet the targets of socioeconomic development of the province 1.2.2 Research questions The thesis focuses on answering 6 main research questions: (1) What are the main components of HRQ?; (2) What indicators, criteria and targets is HRQ reflected, measured and assessed by?; (3) What is the role of HRQ in the provincial locality’s socioeconomic development?; (4) What is the real situation of Lai Chau Province HRQ?; (5) What are the requirements for HRQ of the province to be met for Lai Chau’s socioeconomic development in the next period?; (6) What are methods and solutions to be used and implemented to enhance HRQ to meet the requirements of Lai Chau Province’s socioeconomic development? 1.2.3 Research subject and limited scope of the thesis topic Research subject: is the reasoning and practical problems on HRQ and methods of HRQ enhancement in Lai Chau Province’s socioeconomic development Research limited scope: (1) In content: Concentrating on the interpretation and determination of theoretical frame for the analysis and evaluation of HRQ, methods for HRQ enhancement; Applying this theoretical frame in assessing real situation of Lai Chau HRQ and proposing methods for HRQ enhancement to meet the requirements of Lai Chau’s socioeconomic development; (2) In research space: HR in Lai Chau Province, experience in HRQ enhancement of Da Nang and Ha Giang Provinces; (3) In time: Analyzing and assessing real situation of Lai Chau HRQ in the period of 20082013; Defining directions and measures to enhance HRQ of Lai Chau Province until 2020, vision to 2025 1.2.4 Methodology and research method * Way to approach the problem of HRQ is in the “changing” state in the level of a provincial locality, in the relationship with socioeconomic development of this locality. The performance of solving problem relating to HRQ enhancement of Lai Chau Province in the “open” system with the region and the whole country is made by the way of market economy and international integration * Theoretical frame Main factors affecting HRQ of the locality HRQ of the locality Staterelated factor HR structure Local authority related factors HR qualification Central authority related factors Socioeconomic environment related factors HR knowledge HR skills HR power Labour attitude and behavior Effects of HRQ on socioeconomic development of the locality Economic growth of the locality Social labour productivity Employment and unemployment of workers Residents’ living Picture 1. 1: Theoretical frame of HRQ standard Source: Summarized and constructed by the author * Method of collecting, processing and analyzing information The collection of secondary information is mainly from scientific works which have been published, from Statistics of Lai Chau Province, General Statistics Office and VCCI. The collection of primary information is carried out by surveying 3 groups of subjects in Lai Chau, which are Employees, Enterprises and State Civil Servants; Time of survey is Quarter IV/2013; The number of surveys collected is 832; the model used is Exploratory Factor Analysis (EFA) to process the results of survey, to give a conclusion about HRQ of Lai Chau Province and to give suggestions about policies and solutions. * Research methods are mainly analysis, demonstration, statistics, comparison and summarization. At the same time, interpolation and extrapolation are used to study and recommend some main measures to enhance HRQ in Lai Chau Province and to petition for conditions to implement the solutions CHAPTER 2: REASONING BASIS FOR HUMAN RESOURCES QUALITY IN SOCIOECONOMIC DEVELOPMENT OF THE PROVINCIAL LOCALITY 2.1 Human resources quality and role of human resources quality in socio economic development of the provincial locality 2.1.1 Human resources quality and components of human resources quality in the provincial locality In this thesis, HR of a locality, a region or a nation are considered population of working age and population over working age with working ability, capacity to take part in production activities of a nation, a region or a locality both in quantity and quality HRQ is quality of human resources, representing the relationship of components of HR nature, shown through criteria of HR structure, knowledge level, skills, physical strength, attitude and behaviour of human resources – those are factors to ensure economic growth, increase in labour productivity, assurance of employment, income and people’s living standard Roles of human resources quality to socioeconomic development of the provincial locality include: (1) human resources quality creates competitive advantage in development; (2) Human resources quality is the factor to ensure the sustainability of economic growth; (3) Human resources quality determines the size of human capital and creates increasing income; (4) Human resources quality creates motivation for economic sustainable development; (5) Human resources quality creates competitive advantage and moving competitive capacity of each locality and enterprise 2.1.2 Criteria, reflecting indicators and methods to evaluate HRQ in socioeconomic development of the provincial locality * Summarization and proposal of system of criteria and reflecting indicators for HRQ Bảng 2. 1: Criteria and HRQ indicators of the locality 1. Human resources structure • Structure by age • Structure by seniority • Structure by gender • Structure of urban/ rural area 2. Qualifications and skills of human resources • Educational qualifications • Professional/ Technical abilities • Knowledge • Skills of awareness • Social skills and behaviours • Technical skills 3. About physical strength Physical health Spiritual health Social health 4. About attitudes and behaviors Honesty and compliance Responsibility at work Industrial behaviors Activity and creativity Source: Summarization from studies and proposals of the author * Method of HRQ evaluation in socioeconomic development of provincial locality In order to define and evaluate closely the level of HRQ of a provincial locality in any specific time, it is necessary to carry out a survey to select the model and a suitable quantitative economic model for the analysis and measurement of HRQ. In this thesis, the author selected Exploratory Factor Analysis (EFA) to evaluate HRQ of the provincial locality (specifically Lai Chau Province) 2.1.3 Effects of HRQ on socioeconomic development of the provincial locality The thesis defines effects of HRQ on socioeconomic development of the provincial locality in 6 following main aspects: (1) Effects of HRQ on the locality’s economic growth; (2) Effects of HRQ on the production value increase of economic sectors; (3) Effects of HRQ on social labour productivity; (4) Effects of HRQ on employment, unemployment of workers in the locality; (5) Effects of HRQ on income; (6) Effects of HRQ on poverty status 2.1.4 Role, meaning of human resources quality enhancement in socioeconomic development of the provincial locality First: To enhance HRQ is a basic way to improve economic growth speed and quality of the locality Second: To enhance HRQ is one of main ways to strengthen competitive capacity of the locality Third: To enhance HRQ is the main method to solve problems relating to employment and income of workers in the locality Fourth: To enhance HRQ is to increase infinite properties which can be exploited for socioeconomic development in the condition of the limitation of other sources Fifth: To enhance HRQ in rural areas has the deciding meaning to socio economic development of backward localities in mountainous provinces 2.2 Main factors affecting HRQ of the provincial locality 2.2.1 Factors from the State 2.2.1.1 Factors from local authorities The thesis defines 4 main factors from the local authority affecting HRQ of the locality, including: (1) Planning human resources of the locality; (2) Developing health and health care; (3) Attracting and using manpower; (4) Educating and training jobs 2.2.1.2 Factors from central authorities 3 main factors from central authorities affecting HRQ of the locality consist of: (1) Orientation of national socioeconomic development; (2) Strategies and plans for HR development of the nation; (3) National development policies for HR 2.2.2 Factors from the local socioeconomic environment 2.2.2.1 Economic factor 5 main factors from local socioeconomic environment affecting HRQ include: (1) Growth rate and economic development level of the locality directly affecting HRQ; (2) Structure of economic sectors; (3) Real situation of technical infrastructure; (4) Average income; (5) Employment and unemployment rate 10 2.2.2.2 Tradition and culture factor Tradition and culture have effects on ideas and habits of workers; those ideas and habits affect their attitudes and behaviours towards the society and work. Therefore, tradition and culture also have effects on HRQ development 2.2.3 Science – technology factor Science and technology affects HRQ in two aspects: (1) Development of science and technology helps human approach many kinds of modern machines, force workers operating these systems to have specific qualifications and to be methodically trained to be able to operate them; thus motivates human resources quality enhancement; (2) Development of science and technology will reduce the quantity of workers, create pressure of competition, which forces workers to improve their working quality 2.2.4 Natural conditions Localities in remote areas, regions of ethnic minorities or localities with regular natural disasters such as earthquake, storms, flood… will face difficulties in attracting workers of high quality. On the contrary, localities in deltas with convenient traffic will have more advantages in this aspect 2.2.5 Factors of human resources themselves Each person is a biologicalsocial entity, in which the biological aspect is the premise, basis for the social one to develop. HRQ is evaluated by means of basic criteria such as qualification, attitudes and physical strength of HR. Physical strength of workers is indicated in their physical and spiritual health. Physical health is shown in the ability to apply their muscles in working 2.3 Methods to enhance HRQ of the provincial locality (1). Build and develop labour market and local talent market in a market of labour force. The region and the whole country need to unite and gradually integrate the labour force market of the world (2). The State and the local authority have to be always active and play the orienting role, manage, regulate and promote HR development, HRQ enhancement in the locality, especially proposing policies to attract and make use of HR of high quality (3) Promote and effectively use the local human resources, attract human resources from other localities in the country as well as from other countries to develop the local HR development and HRQ enhancement 11 (4). Expand and strengthen connection among groups, areas (state, enterprises, nonbusiness units, social communities) in the province, in the region, with other regions and other countries to develop and enhance HRQ of the provincial locality (5) Improve HR management capacity, especially HRQ management in all levels (mediumscopic and macroscopic) in the province (6). Establish, maintain and adjust population structure and HR structure in the provincial locality to be suitable for the demand and socioeconomic development level of the locality in each period (7) Rapidly develop education and training institution network, health and health care system in the province is a basic way to enhance population quality and HRQ in the long run (8) Create employment, raise income and living standard of people in the province, create material conditions for HR improvement in the locality 2.4 Experience of some localities in the country in human resources quality enhancement in socioeconomic development and lessons for Lai Chau Province 2.4.1 Experience of some localities in the country in HRQ enhancement in socio economic development * Experience of Da Nang City in choosing methods to enhance HRQ First: Planning HR development in the locality to be the basis for solutions to enhance HRQ in the locality Second: Developing health and health care to bring up and create a premise for gradual HRQ enhancement Third: Planning and implementing effectively the policy of attracting and using HR of high quality. Fourth: Expanding investment and supporting the training of qualification and technical level for workers; Taking priority of training special human groups * Experience of Ha Giang Province in HRQ development and enhancement First: Attaching special importance to quality of HR development plan. Second: Attaching special importance to the implementation of health and health care development policies to develop HR in the long term. Third: Implementing policies of attracting and using human resources of high quality with preferential treatment 2.4.2 Some lessons for Lai Chau from experience of other localities (1). To have a methodical plan for local HR development with high quality; (2) To show interest in health and health care development; (3) To build and implement consistently policies to attract highquality workers to work in the locality; (4) To develop capacity in the education and vocational training system of the province; (5) 12 To actively implement, encourage and support education and vocational training institutions as well as worker using institutions; (6) To build and implement training programs to enhance worker capacity CHAPTER 3: REAL SITUATION OF HUMAN RESOURCES QUALITY IN SOCIOECONOMIC DEVELOPMENT OF LAI CHAU PROVINCE 3.1 Overview of real situation of factors affecting human resources and real situation of using human resources in Lai Chau Province 3.1.1 Real situation and characteristics of factors affecting HR of Lai Chau Province (1). Natural conditions of Lai Chau affecting human resources of the province Lai Chau is a mountainous province in the national border, in the North West of Vietnam, has 265kilometer border with China. Lai Chau’s topography is mainly high mountains, high slope and strongly separated, which causes many difficulties in socio economic development. Climate in this province is really severe with hoarfrost in the winter, which is disadvantageous for agricultural production and social welfare (2) Socioeconomic characteristics of Lai Chau affecting HR of the province The population of this province until 2014 was 431 thousand people, population density was over 47 people/ km2, with 20 ethnic groups (Thai ethnic group 35.19%; Mong 21.18%; Kinh 12.69%; Dao 11.85%; Ha Nhi 5.12%; others 13.29%). Lai Chau currently has 108/108 communes, wards and towns with national grid; 96/96 communes with roads for cars to the commune center; 93% communes with roads for cars to run all year round; In the past 10 years, economic growth rate (GDP) of the province was over 10%/year. Economic structure had an active transformation (in 2014: agricultural, forest and aquatic products 24.51%; construction industry 22.95%; service 46.96%). Per capita income was 16.27 million dong/year (means 1/3 the average of the whole country). Labour productivity was only 1/3 compared with that of the whole country; average unemployment rate was about 0.36% the population of working age In 2013, Lai Chau had 246.4 thousand employees working in all sectors of the province; 638 enterprises (until 31/12/2013), attracting 14,039 workers; 132 co operatives, attracting 1,550 workers; 9,034 nonagricultural technical institutions, attracting 13,390 workers; 139 kindergartens, attracting 2,174 teachers; 292 schools, 13 attracting 5,262 teachers; 27 vocational schools, attracting 550 teachers; universities and colleges attracting 63 teachers; 134 medical institutions with the total of 1,515 sickbeds, attracting 414 medical cadres (including 372 doctors); average 37.5 sick beds/ten thousand people, 9.2 doctors/ten thousand people; proportion of children under 1 vaccinated accounts for 92.4%, children under 5 malnourished is 25.2% 3.1.2 Real situation of human resources using in Lai Chau Province Social labour productivity is currently very low, only 1/3 of the whole country’s. Lai Chau Province’s human resources only work in nonstate area; however, nonstate area currently has lower labour capacity in comparison with state area and foreign invested area; the reason is that nonstate enterprises are mainly medium and small ones with weak production and business efficiency, low salary and income, difficult working condition and limited capacity of labour attraction. On the other hand, workers in Lai Chau mainly take part in household economy and in nonofficial areas. Nonstate area’s labour productivity is now approximately 13 million dong/year, which means only ¼ compared with that of state area. In Lai Chau, workers under 15 makes up 59% the total population, lower than other Northern mountainous provinces such as Cao Bang, Dien Bien or Son La 3.2 Analysis of Lai Chau human resources quality real situation 3.2.1 Real situation of HR structure and HR structure transformation in Lai Chau Province * Human resources structure by age: If considering HR from 1519 years old, in 2012, Lai Chau HR made up nearly 12%, while Northern midlands and mountainous provinces only accounted for 7%, the whole country’s was just 5.2% This figure shows that human resources of the province have low quality because 1519 is not the age of working skills as well as other requirements on quality. Group of 2034 in 2012 of Lai Chau was 41.97%, while that of other Northern mountainous provinces accounted for 36.7%, and of the whole country was 34.2%. These figures reflect that human resources of Lai chau is in the period of “golden population” * HR structure by gender: In 2008, male workers accounted for high rate of 51.2% and female ones accounted for 48.8%. However, until 2013, male employees reduced to 50.1%. This indicates the balance in male and female workers rate, which demonstrates HR is having better quality * Human resources structure of urban and rural areas: That workers mainly gather in rural areas and account for 85% the province’s human resources shows that 14 HRQ is low because in rural areas, workers don’t have many conditions to approach services of training, fostering, to access to information and health care services 3.2.2 Real situation of Lai Chau human resources level and skills * Real situation of Lai Chau HR educational level: Literate population from 15 years old: In 2012, this figure was 65.8% (the whole country’s was 94.7%, Northern midlands and mountainous area was 89.2%); Proportion of HR from 15 never going to school in 2012 in Lai Chau was nearly 26% (the whole country was 5.6%, In the North West was 21%) while the rate of population without qualifications in Lai Chau reached 28%, that of the whole country and of the North West were respectively 14% and 14.2%. The rate of high school graduation and higher of this province as 8.6% (that of the whole country was 30.4% and of the North West was 20%) * Real situation of Lai Chau HR qualification: In 2013, HR from 15 working on July 1st every year who have been trained made up 12.2% (that of the whole country was 16.6%) while maletrained HR was 13.4%. Femaletrained HR was about 10.9%, trained HR in rural areas only accounted for 6.4%. In the labour force from 15, nearly 90% workers have no qualification and technical level (the same figure of the whole country is 83.4%, of Northern mountainous provinces is 85.4%). Among workers with qualification and technical level, about 1.4% of them were graduated from vocational schools, 5% from Secondary Professional and Technical schools, more than 2% from colleges and 2.9% from universities and higher * Real situation of Lai Chau HR knowledge: Result of the author’s survey shows that knowledge about responsibility and citizen rights, about regulations of organizations which the employees are working and about labour contract is higher than that about jobs they are working and about qualification relating to the job * Real situation of human resources’ skills in Lai Chau Province: Only 65% of the population from 15 years old is literate, in which those in the urban areas are about 90%, in rural areas are 60%; thus, skills such as reading, writing and calculating are weaker than those of other Northern mountainous localities Social skills and behaviours are specially weak, such as teamwork skills, communication skills, independent work skills, time management skills, or study and selfstudy skills. HR technical skills in Lai Chau province are taken survey in 3 groups of subjects, which shows the average level, in which the skills of knowing how to implement the work process is evaluated the highest level, while the skill of using modern technology is assessed lowest 15 3.2.3 Real situation of Lai Chau human resources’ physical strength The survey results of the three groups of subjects show that mark for physical health evaluation of Lai Chau HR is higher than that for spiritual health and social health. However, some indicators also warn about challenges for the future of Lai Chau HR such as the rapid increase of HIV infected people and the increase of the rate of newborn babies with the weight of below 2.5 grams in the period of 20102012 3.2.4 Real situation of attitudes and behaviours of Lai Chau human resources The survey results of the thesis’s author indicate that among indicators reflecting attitudes and behaviours of Lai Chau HR, that of honesty is evaluated the highest level, followed by sense of law compliance, responsibility at work; the indicator evaluated the lowest level is willingness to learn, to create and to innovate The above attitudes and behaviours are weak points of Lai Chau HR now. There are many reasons for this situation, which are low educational qualification, origin from agricultural class, and untrained ways of working collectively in the enterprises, familiarity with the free lifestyle and working style, unawareness of industrial behavior. Limits in industrial behavior make workers not have stable jobs and unable to create sustainable income as well as to get promotion for themselves 3.2.5 Summarization of results of applying Exploratory Factor Analysis (EFA) to evaluate effects of human resources quality components in Lai Chau Province In order to support the analysis, the thesis’s author conducted a real survey on HR in Lai Chau province (Quarter IV/2003) and collected data according to 3 types of survey forms (including 356 forms for workers, 196 for civil servants and 280 for enterprises). Through the survey, the author had 832 valid forms, thus found out 50 measurement variables of 7 groups of the above factors which affect “general quality” of Lai Chau HRQ; these variables were encoded and entered SPSS software for analysis The thesis’s author carried out EFA with each group of survey subjects: workers, enterprises and civil servants in Lai Chau In the total 50 variables entered to the model, only 32 ones can be analyzed (have meaning of statistics) Among 32 variables which can be analyzed in EFA model, the result shows that all variables have direct effects on each factor (7 drawn factors represents for about 5255% of all elements of Lai Chau HRQ). Therefore, to enhance HRQ in Lai Chau Province, we can create positive effects on all variables (32 variables) and factors (7 drawn factors) mentioned above 16 Basing on the result of EFA model on affecting indicators, level, direct values of each elements (32 variables of meaningful statistics), each representative factor (7 drawn factors) and coefficients (level, affecting value of each factor (7 independent variables) on the formation of “general quality” of Lai Chau HR (dependent variables), we need to arrange the order of priority for each factor and each element of each factor to have appropriate policies and measures for each group of subjects (workers, enterprises, civil servants) to enhance HRQ of Lai Chau province. The principle is to arrange priority order for factors and elements with low (weak) direct value to have policies and measures to promote and improve. Specific priority order is as below: Table 3. 1: Priority order of factors and elements for policies and measures to enhance HRQ in Lai Chau province I. Workers 1. Skills of awareness (0.042) Social skills and behaviors (0.049) 3. Technical skills (0.056) 4. Spiritual health (0.120) 5. Knowledge (0.141) Attitudes and behaviours (0.162) 7. Physical health (0.155) Total 32 elements, 7 representing factors II. Enterprises Social skills and behaviors (0.040) Skills of awareness (0.052) 3. Spiritual health (0.064) 4. Technical skills (0.092) 5. Knowledge (0.133) 6. Physical health (0.155) III. Civil servants Social skills and behaviors (0.042) Skills of awareness (0.052) 3. Technical skills (0.064) 4. Spiritual health (0.092) 5. Knowledge (0.133) 6. Physical health (0.155) 7. Attitudes and behaviours Attitudes and behaviours (0.168) (0.168) Total 32 elements, 7 Total 32 elements, 7 representing factors representing factors Source: Calculation of the thesis’s author 3.3 General assessment of human resources quality real situation in Lai Chau socioeconomic development 3.3.1 Strengths of Lai Chau human resources quality (1) Strengths in HR structure: benefited with advantages of “golden population” period (2). Strengths in educational level and qualification: Literate population from 15 in Lai Chau increased 4% in the period of 20062013. PCI indicator of satisfaction of enterprises to labour qualification reached over 85% (3). Strengths in knowledge and skills: Some criteria relating to knowledge get the average level such as knowledge about citizen responsibilities, about regulations of organizations they are working for and about labour contracts. 17 (4). Strengths in HR physical strength: Some criteria of health get good level such as weight, height, briskness, ability of manual work and ability to adapt to the weather and climate (5). Strengths in working attitudes and behaviours: honesty, sense of principles and responsible at work 3.3.2 Weaknesses of Lai Chau human resources quality (1). Weaknesses in HR structure: work experience and skills are limited when workers have not accumulated these basic requirements; the rate of workers in rural areas is 5 times more than those in urban areas (2). Weaknesses in educational level and qualification: Literate population from 15 only accounts for 60%, in which literacy rate in rural areas is much lower than that in rural areas. Trained HR from 15 of Lai Chau only makes up about more than 11%; those of no professional skills account for over 90%; Among HR with qualification, those graduated from colleges and university only make up less than 5% (3). Weaknesses in knowledge and skills: Knowledge of human resources is very poor, such as knowledge about the jobs they are doing, about profession for that job; HR skills of Lai Chau province are limited in skills of awareness such as thinking, identifying, analyzing, finding solutions and deciding skills. Especially, social skills and behaviours of HR are the weakest points; these skills have not met the medium level (4). Weaknesses in physical strength: Workers are still weak compared with special requirements on spiritual and social health (5). Weaknesses in working attitudes and behaviours: Workers do not have willingness to create and innovate, willingness to learn, work or selfcontrol at work 3.3.3 Reasons for weaknesses of Lai Chau human resources quality and problems to be solved in the next time 3.3.3.1 Reasons for weaknesses of Lai Chau HRQ (1). Reasons from Lai Chau authority (i) HR planning of the locality is slow to be planned and approved (ii). Health and health care for people in the province get some important results, but these are not uniformed and not meet the requirements which is rapidly increasing of the society 18 (iii) The province’s attraction and use of high quality human resources have not been attached adequate importance; the level of HR attraction and use is not interesting enough to have clear results iv) Education and vocational training are paid attention to with encouragement policies, but the size and quality of training are still limited and not meet the requirements on using human resources of the society 3.3.3.2 Reasons from natural and socioeconomic conditions of Lai Chau province (i). Natural conditions of Lai Chau province have disadvantageous effects on quality and enhancement of HRQ of the province (ii) Socioeconomic conditions of Lai Chau province cannot create competitive advantages for this province in establishing and enhancing its HRQ (iii). Culture and tradition of Lai Chau province have not become the motivation to promote and improve its HRQ 3.3.3.3 Some problems to be solved in the next time to enhance HRQ of Lai Chau province First, completing the plan for HR development of the province and of its districts; managing and effectively implement the plan Second, synchronously developing the socioeconomic infrastructure to be the foundation for economic development, investment attraction, intellectual and aware standard improvement of workers, vocational training and health care strengthening. Third, having strategies and policies of vocational training and local labour quality improvement; Changing customs and habits of workers, including workers of ethnic minorities towards industrial way. Fourth, having effective strategies and policies to attract and effectively use high quality workers to work in Lai Chau province; Creating favourable conditions to promote capacity and level of high quality workers in the province CHAPTER 4: DIRECTIONS AND SOLUTIONS FOR HUMAN RESOUCES QUALITY ENHANCEMENT TO MEET THE REQUIREMENTS OF SOCIOECONOMIC DEVELOPMENT OF LAI CHAU PROVINCE UNTIL 2020, VISION TO 2025 4.1 Context and opportunities, challenges for human resources quality enhancement in Lai Chau until 2020, vision to 2025 19 Planning Lai Chau socioeconomic development until 2020 with basic development opinions and specific targets of economic development is the foundation to determine directions of HRQ demand for Lai Chau in the next stage. Specifically: (1) About economic development: In the period of 20162020, average economic growth is 16.1%/year; until 2020, in the economic structure of the province, the proportions of agriculture, industry and service sectors are respectively 20%, 44% and 36%; Per capita GDP is about 46.7 million VND in 2020 (2). About social development Lai Chau is paying attention to the quality of education and training, striving to have the rate of trained workers until 2020 is over 50%. On the other hand, in the period of 20112015, the province authority sets a target of creating new jobs for the average of over 7 thousand people/ year. Until 2020, these targets are: 15 doctors, 38 sickbeds/ten thousand people, 100% of the communes meeting standard of national health. The province authority concentrates on reducing malnutrition rate in children to less than 20% in 2020 The new context and socioeconomic development targets of Lai Chau province is opening opportunities and raising big challenges in HR development to meet the requirements of socioeconomic sustainable development of the province in the next time * Main opportunities The new context creates favourable conditions for Lai Chau province to promote economic development, economic structure transformation and hasten labor structure transformation oriented industry – construction and service, as well as mobilize investment resources for the development of education and training Regional and international economic integration with many achievements is an opportunity for Lai Chau province to speed up export activities, strengthen investment attraction and high quality labour source The national transport infrastructure are completed, which is convenient for the transportation between Lai Chau province and neighbouring provinces as well as Hanoi, for trading, investment attraction and labour moving between Lai Chau and other areas in Hanoi and neighboring provinces As a border province with many difficulties, Lai Chau province has been receiving the support and interest of the Government in the development of economy, infrastructure and HR, especially rural labour force 20 * Challenges The separated geographical location of Lai Chau province prevents the investment attraction, especially largescale investment and high quality labour attraction from other localities to work in the province Developmentrelated infrastructure is still limited, especially in districts near border (Muong Tem, Phong, Tho,…). Local HR is still facing difficulties in accessing scientific and technical advancements as well as new technologies. Therefore, sudden mutation in the province’s HRQ enhancement is very difficult to implement Population in the province consists of many ethnic groups with different living customs, spread population distribution, low population density…, which is a barrier for labour attraction to work in industryconstruction sector, as well as for labour training International integration generates competitive pressure in exported goods, especially from China…, which has negative effects on the development and expansion of productionbusiness and the supplementation of labour force of enterprises, production institutions in the province Training institution network has not been completed; there are no universities in the province, so the training of high level human resources depends much on institutions of other provinces, which causes high expenditure 4.2 Target and direction for human resources quality enhancement in socio economic development of Lai Chau until 2020 4.2.1 Target of Lai Chau HRQ enhancement until 2020 The target for HR development of Lai Chau province until 2020 is determined specifically in the Plan for human resources development of Lai Chau in the period of 20112020 (People’s Council of the Province, including: (1) Building HR with good health, profession skills, ethics and appropriate structure according to the requirements of socioeconomic development of the Province, those who have full capacity to promote the economic growth speed, bring Lai Chau out of poverty and underdevelopment (2) Forming human resources of high quality towards meeting national standard and of comprehensive development in health, intelligence, ability and ethics, ability to adapt to and integrate the socioeconomic development process of the whole country and the world. (3) Building high level human resources in management areas (State management, Social management, Economic management and Business Management), ScienceTechnology, EducationTraining, Health and Culture has 21 decisive meaning to rapid and sustainable development of the province in the period until 2020, to improve the role, position, potential and competitive capacity of the province in the North midlands and mountainous area 4.2.2 Direction for human resources quality enhancement to meet the requirements of Lai Chau socioeconomic development until, 2020, vision to 2025 (1) Building and developing the labour market, talent market of Lai Chau province connected to those of the region, the country and gradually integrated to the labour market of ASEAN and of the world (2) Improving and promoting the role of Lai Chau authority in orienting management, regulation and promotion of the province’s HRQ development and enhancement (3). Attracting and effectively using human resources of the locality and of the whole country as well as workers from other countries to enhance HRQ of Lai Chau province. Among those, the province’s human resources are the deciding ones, those of other localities and from foreign countries are important ones (4). Expanding and strengthening connections in the province, in the region, with other regions and other countries in HRQ enhancement for the socioeconomic development of Lai Chau province (5) Improving ability of HRQ management in Lai Chau, especially talent management of medium level, enhancing management ability to workers who are benefited from state budget, talent management in macroscopic level, management of human resources in enterprises, of those with high qualification and technical level (6) Building and maintaining appropriate population structure and human resources structure in the locality, making use of the “golden population” period to promote the economic growth (7). Rapidly developing the education and training system, health and health care network in Lai Chau province in order to enhance population quality, improve awareness and technical level, skills for workers in the province (8). Strengthening the study, survey and forecast of HR using demand abd HR development for the province’s socioeconomic development (9) Attracting and effectively using resources, especially financial resources to invest in HRQ enhancement of Lai Chau province 4.3 Solutions for human resources quality enhancement in Lai Chau’s socio economic development until 2020 22 4.3.1 Solutions to the Center, North West Steering Committee on strengthening the support for human resources quality enhancement of Lai Chau province (1) The state hastens the process of construction and completion of legal framework for the formation and development of labour market of the whole country in general and of North West region in particular to create a general legal environment for the formation and development of labour market in Lai Chau province (2) The province needs to strengthen financial support from the central budget for its HRQ enhancement (according to “Plan for Lai Chau province human resources development in the period of 20112020”, in order to enhance HRQ to meet the requirements in planning, the province should support at least 1,833 billion dong from the central budget to invest in HR training) (3) North West Steering Committee needs to strengthen their leading role to direct the province’s party and authority to implement strategies and plans of regional and national levels, policies and regulations of the State relating to HRQ enhancement of Lai Chau province (4). Ministries and industries in the center need to cooperate with North West Steering Committee to direct and support the authorities of North West provinces, especially Lai chau to enhance their ability to manage HR development and HRQ enhancement of the province 4.3.2 Solutions to Lai Chau authorities to enhance human resources quality of the province (1). Correcting, supplementing and improving efficiency and validity of the plan implementation on Lai Chau human resources development (2) Managing and strengthening the investment in developing health and health care network to improve health and HRQ of Lai Chau province (3) Attaching special importance to and strengthening the attraction and respect of high quality workers for HRQ enhancement of Lai Chau province (4) Create a breakthrough in the development of education and vocational training to improve knowledge and skills for human resources of Lai Chau province 4.3.3 Solutions to improve quality of some groups of Lai Chau workers 4.3.3.1 Solutions to workers in Lai Chau province (1). Strengthening propaganda and education to raise awareness of workers in Lai Chau province about role and benefit of each individual, each worker in actively study, practice skills, sense of principles and industrial working behaviours 23 (2). Education, training institutions and vocational schools in Lai Chau province should attach special importance to designing the content of training program to improve level and skills for workers in the province to be appropriate with the condition and real specific capacity of each group of workers, each specific area, especially for those of ethnic minorities (3) Organizations in Lai Chau province need to strengthen propaganda, mobilization and popularization of cultural and social information for workers to improve their spiritual health in each organization and in the society (4) Administrative and nonbusiness institutions, enterprises, politicsocial organizations, professional organizations in Lai Chau province should reinforce human resources management, education of politics and ideas to improve the profession ethics, attitudes and industrial working behaviours, enhance expertness of workers in each organization (5) The province’s authorities need to attach special importance to the improvement of income and living standard of workers as well as their physical health 4.3.3.2 Solutions to civil servants of Lai Chau province (1). Innovating process, recruitment method, using plan for cadres, proposing and dismissing civil servants of the province to create selecting mechanism, for the purpose of building a group of high quality civil servants (2) Improving quality of training and fostering civil servants of Lai Chau province to raise their knowledge, skills and gradually better civil servants (3). Building and respecting talented civil servants of Lai Chau province (4). Innovating the evaluation and policies of behaving human resources as civil servants 4.3.3.3 Solutions to human resources as businessmen in Lai Chau province (1). Building particular mechanism and policies of the locality to encourage and promote the development of businessmen in Lai Chau province to have a big size with business management capacity and high social responsibility (2) Reinforcing training and fostering to improve knowledge and skills of business management for businessmen in Lai Chau province (3). Leaders of all level in Lai Chau province need to encourage and support the province’s businessmen to expand business connection in the provincial market and with other businessmen in other regions, in the country and the world 24 (4). Businessmen in Lai Chau province should attach special importance to the investment in training and fostering to improve technical skills and professional skills for workers of the enterprise 4.3.4 Petitions for conditions to implement solutions of Lai Chau human resources quality enhancement (1) Establishing Steering Committees for HRQ enhancement at provincial and district level of Lai Chau province (hereafter called Steering Committee) This Steering Committee should have components of a strong leaders with adequate necessary standards to ensure the implementation direction for decisions of the province leader on HRQ enhancement (2) Establishing and building Regulations of using Fund for HRQ enhancement of Lai Chau province The implementation of HRQ enhancement solutions of Lai Chau province needs a big expenditure distributed from the central budget, local budget and the mobilization from the citizen and community contribution. The establishment of the Fund for HRQ enhancement of Lai Chau province aims at attracting financial resources from enterprise community and other sponsors inside and outside the country, economic organizations, business organizations and contributions of the citizens in Lai Chau province CONCLUSION Important contributions of this thesis are: (1) Interpreting and clarifying theoretical basis of HRQ in socioeconomic development of the provincial locality and factors affecting HRQ of the locality; (2) Building a system of criteria and indicators for HRQ of the provincial locality, at the same time establishing the method for HRQ evaluation, way to measure and assess HRQ by means of criteria and targets of quantifying; (3) Building a frame for analysis, evaluation of role and effects of HRQ on socioeconomic development of the locality in the following aspects: Economic growth, growth in production value of sectors, labour productivity, employment, unemployment, income, poverty in the locality; (4) Clearly defining the role of HRQ enhancement and the main methods to improve HRQ in the provincial locality; 25 (5) Giving quantitative and qualitative evaluation on real situation of Lai Chau HRQ in the period of 20082013; at the same time, assessing effects of Lai Chau HRQ on socioeconomic development of the province in the period of 20082013; (6) Defining main groups of reasons for weaknesses in Lai Chau HRQ, including (i) Reasons from the local authority and (ii) Reasons from natural and socio economic conditions of Lai Chau province; (7) Proposing strategic directions for HRQ enhancement to meet the requirements of socioeconomic development of Lai Chau province until 2020, vision to 2025; (8) Recommending synchronous solutions for the State, local authority, enterprises, nonbusiness administrative units, workers, politic and social organizations, profession organizations and the community of all ethnic groups in Lai Chau province to improve HRQ of the province in the next period until 2020./ ... characteristics of factors affecting HR of Lai Chau Province (1). Natural conditions of Lai Chau affecting human resources of the province Lai Chau is a mountainous province in the national border, in the North West of ... SOCIOECONOMIC DEVELOPMENT OF LAI CHAU PROVINCE 3.1 Overview of real situation of factors affecting human resources and real situation of using human resources in Lai Chau Province. .. 4.2.1 Target of Lai Chau HRQ enhancement until 2020 The target for HR development of Lai Chau province until 2020 is determined specifically in the Plan for human resources development of Lai Chau in the period of