Socio-economic changes in Dong Anh in the innovation period : Luận văn ThS. Khu vực học: 60 31 60

VIETNAM NATIONAL UNIVERSITY, HANOI INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES BUI HUY TOAN SOCIO-ECONOMIC CHANGES IN DONG ANH IN THE INNOVATION PERIOD MASTER THESIS Major: Vietnamese Studies Hanoi - 2012 VIETNAM NATIONAL UNIVERSITY, HANOI INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES BUI HUY TOAN SOCIO-ECONOMIC CHANGES IN DONG ANH IN THE INNOVATION PERIOD MASTER THESIS Major: Vietnamese Studies Code: 60 31 60 Supervisor: Assoc Prof Dr Pham Hong Tung Hanoi - 2012 PROMISE The subject: Socio-economic changes in Dong Anh in the innovation period, is a research of major socio-economic changes in Dong Anh District in innovation period (especially since 2000) The sources of materials used in the thesis are the secondary and the primary The sources of primary materials are quoted with clear notes to ensure objectiveness of materials and copyright This thesis is not similar to any work of socio-economic study in Dong Anh district in the previous time Argumentations and scientific conclusions as stated and the sources of materials collected in the thesis are objective and honest and completed with efforts of the author of the thesis and the orientations of the instructor MA Student Bui Huy Toan ACKNOWLEDGEMENT My MA thesis has been completed with supports from many organizations and individuals I would like to give my sincere thanks to lecturers of Institute of Vietnamese Studies and Development Sciences, Vietnam National University, Hanoi, who facilitated and provided me with knowledge during study process in the Institute I would like to express my heartfelt thanks to Dong Anh District People’s Committee and Divisions for facilitating and helping me to collect materials for my thesis! Especially, I would like to show my deep gratitude Assoc Prof Dr Pham Hong Tung, who gave advices to and encouraged me during the research I would like to manifest my thanks to my family, close relatives, friends and members of Vietnamese Studies MA Class of 5th, who have always encouraged and shared with me many things during study Hanoi, …… February, 2012 MA Student Bui Huy Toan TRANSLATION - BẢN DỊCH TABLE OF CONTENTS INTRODUCTION Reasons for the study Literature review The purposes of the study 10 Object and scope 11 4.1 Object of the study 11 4.2 Scope of the study 11 References and methods of the study 11 Significance 13 Structure of the thesis 13 CHAPTER 1: DONG ANH: GENERAL REMARKS 14 1.1 Strengths and development resources – promoting factor for socio-economic changes in Dong Anh 14 1.1.1 Geographical situation 14 1.1.2 Topographical characteristics 17 1.1.3 Local climate 17 1.1.4 Land 18 1.1.5 Hydrographical characteristics 21 1.2 Socio-economic resources 22 1.2.1 Population 22 1.2.2 Human resources 23 1.3 Socio-economic development in Dong Anh District 23 1.3.1 Economic situation 23 1.3.1.1 Industry 25 1.3.1.2 Service -Commerce 27 1.3.1.3 Agriculture 27 1.3.2 Socio-cultural situation 28 1.3.2.1 Education – training 28 1.4 General assessment of potentials, advantages, difficulties and challenges in development process of Dong Anh 30 1.4.1 Advantages for socio-economic development 30 1.4.1.1 Strengths of the natural conditions 30 1.4.1.2 Advantages of socio-economic conditions 30 1.4.2 Difficulties and challenges 31 CHAPTER 2: MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH SINCE 2000 TO NOW 33 2.1 Common theory of socio-economic changes in Vietnam in the innovation period 33 2.1.1 Structure of economy 33 2.1.2 Transformation of economic structure 36 2.1.3 Changes of territorial structure 37 2.1.4 Change of structure of economic components 38 2.2 Changes in structure and economic relations of Dong Anh since 2000 39 2.2.1 Changes in structure of economic sectors 39 2.2.2 Changing inside economic sectors 41 2.3 Changes in structure and social relations 55 2.3.1 Changes in scale of manufacturing facilities and the number of centralized labors by economic sectors in industry 55 2.3.2 Changes in scale of manufacturing facilities and the number of centralized labors in commerce and hospitality 57 2.3.3 Changes in scale of manufacturing facilities and the number of centralized labors in transport 59 2.3.4 Changes in education - health, life quality of Dong Anh district in the period 2000 - 2009 61 CHAPTER 3: ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF DONG ANH UP TO 2020 67 3.1 Viewpoint and orientation of socioeconomic development of Dong Anh 67 3.1.1 Viewpoint of development 67 3.1.2 Orientation of development 68 3.2 Analysis based on SWOT of potentials and challenges in socioeconomic development process of Dong Anh 70 3.2.1 Strengths (favorable conditions for socioeconomic development) 72 3.2.2 Weaknesses (shortcomings in socioeconomic development) 74 3.2.3 Opportunities of socioeconomic development of Dong Anh from now to 2020 75 3.2.4 Challenges of socioeconomic development of Dong Anh from now to 2020 75 3.3 Orientation of development in economic sectors 77 3.3.1 Orientation of development in trade - service sectors 77 3.3.2 Orientation of development in industry, small scale industry and construction 79 3.3.3 Orientation of development in industry 81 3.3.4 Orientation of cultural and social development 83 3.4.1.1 Orientation of education and training development 83 3.4.1.2 Orientation of health development 83 3.4.1.3 Orientation of development in culture - information and sports 84 3.5 Solutions to socioeconomic development of Dong Anh 85 3.5.1 Training and developing human resources 85 3.5.2 Applying scientific and technical advances in production 86 3.5.3 Mobilizing and using investment capital sources effectively 86 3.5.4 Widening the market 88 3.5.5 Improving general power of economic sectors 89 CONCLUSION 91 REFERENCES 93 INTRODUCTION Reasons for the study With the goals up to 2020 that, our country will basically become an industrial country, our country’s industrialization and modernization process has more and more rapidly and strongly happened, but quite complicated in all cities and provinces This process has changed the socio-economic face of localities at various levels; and promoted the urbanization process The urban development in several big cities such as: Hanoi, Ho Chi Minh City,… has impacted on not only the economy – society – environment on the field of those cities but also the surrounding districts and provinces strongly Together with the comprehensive change of the country, Dong Anh, a suburb district in the North of Hanoi City is stepping into innovation period and created the significant changes in all aspects However, nowadays, to foster the comprehensive development process, take full advantage of its socio-economic potentials, Dong Anh district should form and perform a long-term strategy for its sustainable development by itself Therefore, to explain the socio-economic changes in the district, not only figures are taken to prove those changes in two different periods but also we will find out the other reasons, which control those changes, and then take solutions to promote and adjust the socio-economic development in Dong Anh District With the goals, we selected the subject “Socio-economic changes in Dong Anh in the innovation period” for research and expected to find out the major characteristics of the process, which changed structure and operating-mechanism of the economy in Dong Anh; showed and analyzed the major changes in the social structure and relationship in Dong Anh Not only figures are taken to prove changes in two different periods but also from that we will find out the reasons, which control those changes, and then take solutions to foster and adjust the socio-economic development in Dong Anh On that basis, we hope that we will contribute our effort into the socio-economic development in Dong Anh Literature review 2.1 The study of the process of socio-economic change and the socioeconomic changes in Vietnam in the innovation period On consideration of the economic changes, the authors Le Thong, Do Thi Minh Duc, Nguyen Viet Thinh, Vu Nhu Van agreed that they were purely changes in the structure including economy structure, structure of territory and structure of economic components According to Encyclopedic Dictionary: the social change is “a concept, which mentions changes in specific conditions and operating methods, or in a specific structure of a group, a specific social organization, or even in the whole specific society The social change is in various levels in individual aspects of the society, and created evolutionary-based changes It can appear on all aspects of the society and gradually change the society In a certain period, it will create great advances, deep changes, substance transformation from this status to another one (urgent transformation, revolution) The revolution is the most peremptory time of the social change” In the social changes in Vietnam after more than 20 years of innovation, Prof Dr Hoang Chi Bao (Central Theoretical Council) said that, “Until the present, (2008), Vietnam has innovated for 20 years, more than one-fifth of the century In this time, there have been many changes in the aspects of the society in Vietnam such as the social change or change in the social side, the social aspect in the overall society.” [3] In Changes in the socio-economic structure in Vietnam in the period of 19862000, Prof Dr Nguyen Dinh Le focused on the following issues: The Party’s innovation opinions and socio-economic orientations in the five-year plans (1986-1990, 1991-1995, 1996-2000); Impacts of the international background on innovation task in Vietnam; changes of structure in investments, gross products, national expenditure; growth and density changes in the economic sectors, change of structure in sectors….; changing labor forces in the society; growth of economic sectors; changing class-social structure; income and living standards of the people; the gap between rich and poor; the significant achievements and matters in question in the industrialization and modernization career [17] In Changes in the cultivated land structure and the agricultural economics in Red River Delta in the innovation period (by surveys in several villages and communes) Prof.Dr Nguyen Van Khanh emphasized on the following issues: changes in the rural areas in Red River Delta in view of the cultivated land and agricultural economics in the innovation period; impacts of policies of agricultural innovation on the socio-economic situation in several villages and communes in Red River Delta … [12] Regarding the interactive relationship between the economic changes and the social changes, according to Marxist theory of production mode, “Change and development process of the society is dependent to mode of production The history of the social changes and development is the history of changes and development of mode of production” It can be seen that, studies are in this view identical in the same point and affirmed that a group or a system of social aspects – social problems – social policies and social security system has strong ties and connection with the social changes In this system, it is seen that: Any changed thing is the social change, or social matters have the dialectical relationship with the economic matters The social changes is firstly expressed through the social problems, which are directly questioned in the daily life together with demands and interests of the human (Individuals, groups, genders, ages, generations, communities and so forth) or the social consequences arisen from economics and political impacts, operations Generally, the studies are not only unified in the facts, the main social structure, which is directly resulted from the socio-economic structure but also on refers to the socio-economic changes, the author emphasizes on the structural changes and impacts of socio-economic policies on the socio-economic changes in the whole country or in a quietly large area This is the theoretically reliable fulcrum for our application into the study of socio-economic changes of a particular field – Dong Anh 2.2 Studies of the socio-economics change process in Hanoi in the innovation period Dang Duy Loi, the author of Hanoi geography and Le Thong in the book of Geography of provinces and cities in Vietnam have quite fully implemented the studies of the social-economic aspects of provinces, cities in general and Hanoi in particular; and summarized the basic socio-economic changes in Hanoi in recent years (especially after the innovation period) However, the authors mostly approach to it in the geographical view Therefore, analyzing those changes will take not only development sources but face with difficulties, not deeply explains in various aspects In the socio-economic changes in the edge of Hanoi in the urbanization process, the author Nguyen Huu Minh and his colleague noted that: “Urbanization process has created the strong changes in life of the people in the rural area, especially in edge of the city It is possibly considered that the edge of Hanoi is the buffer zone for transition from rural to urban form and clearly reflects impacts of the urbanization process in the rural areas.” [23] Or Do Thuc, the author of rural area of Hanoi on innovation way, the statistics journal, No 2, 1997 also referred to the major changes in the rural economic value, reduce rice and food crop growing area, increase area for flowers, bonsai and medicinal herbs; develop high quality and safe husbandry and aquaculture Support in building technical infrastructure for some craft villages with development potential Diversify sources of investment to build rural agricultural infrastructure modernly Consolidate, improve the dyke system in the district 3.3.3.2 Orientation of development - It is necessary for the district to accelerate the shift in rural economic structure, intra-agricultural economic structure in the direction of reducing food crop area, increasing area for flowers, bonsai, vegetable and foodstuff crops (gradually popularizing clean vegetable and fruit trees); fortify husbandry with focus on ox for food, lean pig, chicken, goose, duck, fish and shrimp The objective is to develop goods agriculture in order to provide fresh food within the city and export - Develop agriculture in association with developing new rural areas, building clean agriculture and agriculture in urban * Selection of key agricultural products: - Clean vegetable: bean, kohlrabi, cabbage, cauliflower, tomato and mustard green are planted centrally in Van Noi, Nam Hong, Bac Hong, Tien Duong and Nguyen Khe communes - Fruit trees: litchi, longan, mango, custard-apple, sapota are planted centrally in Viet Hung, Uy No, Tien Duong and Xuan Non communes - Specialty rice: special non-glutinous rice and special glutinous rice are planted centrally in Thuy Lam, Lien Ha, Duc Tu and Mai Lam communes - Food ox, lean pig, chicken, duck and goose: in the short term, encourage breeding at household scale and create favorable conditions for breeding at larger scale 82 - Seafood: fish and shrimp are developed based on the strength of big rivers such as the Red River, Duong River, Ca Lo River and lakes, ponds in the district * Agricultural production by territory: - Eastern communes: Thuy Lam, Lien Ha, Van Ha, Duc Tu and Viet Hung These communes have future stability for agricultural production Main agricultural products of the region to be developed include specialty rice, seafood and poultry - District central area: Nguyen Khe, Xuan Non, Tien Duong, Uy No and Dong Anh town This region has centralized development in industry and services Main agricultural products of the region to be developed include clean vegetable, food ox and lean pig - Urbanized region: Nam Hong, Bac Hong, Tam Xa, Kim No, Van Noi, Dong Hoi, Mai Lam, Co Loa, Dai Mach, Xuan Canh, Kim Chung, Vinh Ngoc, Hai Boi and Vong La This region will be strongly urbanized and become urban area when the plan for the urban area in the North of the Red River is carried out Main agricultural products of the region to be developed include clean vegetable, fruit, flower and bonsai, food ox and lean pig 3.3.4 Orientation of cultural and social development 3.4.1.1 Orientation of education and training development Train and retrain high quality human resources in order to gradually enhance the labor force with good qualifications This is a requisite for the development of industries with high scientific and technological content The district must work out specific plan for training labors classified by economic sectors 3.4.1.2 Orientation of health development Dong Anh district should focus on solving some issues as follows: 83 - Invest in upgrading and expanding the District Health Center to more than 300 beds - Solidify and enhance material facilities and equipment for communal/town medical stations Ensure communal/town medical stations have doctors and clinics to meet the demand for medical examination and treatment of the people due to increased population in the coming years - Boost private medical and pharmaceutical activities in the district center and in each hamlet - Encourage medical staff to work at grassroots level to enhance communal healthcare Do initial healthcare work well - Enhance private medical and pharmaceutical service management, combine professional management with administrative management 3.4.1.3 Orientation of development in culture - information and sports * Build a cultural institutional system: Build the district cultural institutional system including district cultural house, communal cultural houses and hamlet/village cultural points to meet the increasingly high demand of the district people Build a cinema as per ancient architectural style in Co Loa Historical site to perform traditional arts such as Tuong, Cheo, Water puppetry and Ca tru * Improve cultural and spiritual life and civilized, elegant and modern Hanoian - The culture sector must develop quickly in order to create spiritual vitality so that the people can take initiative in acquiring humankind civilization while removing bad and rotten cultural products and knowing how to enrich the national culture Consolidate civilized, elegant and modern lifestyle of Hanoi 84 3.5 Solutions to socioeconomic development of Dong Anh district 3.5.1 Training and developing human resources Developing human resources with sufficient quantity and quality for the socioeconomic development during the planning period of Dong Anh district to 2020 includes two important contents, namely training local human resources and attracting intelligence, labors with high qualifications to the district development - Encourage all forms of vocational education and training from low to high level Expenditure for vocational education and training is mainly subject to socialization method However, the budget may support part of training expenditure in order to encourage vocational education and training Establishing funds for supporting and encouraging academic and vocational education, the district needs to take initiative in establishing the Study Encouragement Society and Study Encouragement Fund in the district, communes and hamlets in residential areas - Launch and regularly maintain the academic and vocational study movement among the public, especially young people so that they have sufficient qualifications to meet the demand of labor market, find nonagricultural jobs in the district or other places outside the district - Promote the formulation and development of labor market in the district Well organize information network, employment consultancy and labor supply The labors should grasp labor demand of small and medium-sized industrial parks/clusters, craft village industrial clusters through such forms as job fair, selection of forces for vocational training among the rural labors subject to preference 85 3.5.2 Applying scientific and technical advances in production Paying attention to acquiring and applying scientific - technical advances in all fields of economic and life activities should be grasped thoroughly at all levels from district to commune Give priority to transferring and acquiring new scientific and technological advances: firstly for key products or breakthrough steps Specifically: applying technological advances in producing vegetable, flower, seedling, breeding, high class wood furniture Source of acquiring and transferring technology: pay attention to the available source in the city (universities, research institutes) Besides, it is necessary to take notice of new abroad technologies to be transferred and applied in production and service fields in the district Work out stable and public mechanism and policy in order to encourage the application of new scientific and technological advances for priority fields 3.5.3 Mobilizing and using investment capital sources effectively * Budget capital - Investment source from the city budget is estimated at about 30 - 35% of total demand for investment in the district - District budget for development investment In the period 2011 - 2020, income from taxes and fees in the district will increase sharply and may be spent partly on development investment in the district - Income from auctioning land use right This capital source is of budget type and the direction of remarkable mobilization for development investment that Dong Anh has a lot of potentials 86 Investment direction from the centralized budget capital is mainly for building socioeconomic infrastructure, investing in shifting economic structure applying new scientific and technical advances * Investment from enterprises and from the public - For the capital sources of the enterprise: accelerate the formulation and occupancy of small and medium-sized industrial parks, craft village industrial clusters to attract the enterprises within the city or from other places + Quickly and uniformly complete infrastructure system of industrial parks, especially power, water and traffic system + Study and consider empowering higher self-control to the Industrial Parks Management Unit in attracting investment For example, stipulating land rental framework in lieu of the present fixed price + Promote building trade and service centers in the district, especially in Dong Anh town and district central areas, trade and service areas in industrial parks, craft village industrial clusters - For the public capital source: + Mobilize equity capital in various forms of business in all fields such as economy, trade and service + Issue bonds for the works executed by the city + Invest in transforming vocation for the objects with big cash flows from compensation for land acquisition + Expand BOT and BT investment forms * Investment credit and other funds - Preferential loan from existing development investment funds such as: Infrastructure development investment fund, district economic development fund 87 - ODA loan of the Government, especially capital sources of organizations to invest in improving and protecting environment, maintaining cultural and historical sites * Capital source from association with external parties To attract the capital from association with external parties, backed by the city, the district should take initiative in creating mechanisms at permissible level to promote diversified cooperation forms with the enterprises of the Central government and the City For example: cooperate with universities and research institutes to formulate high quality seedling production area to provide to the markets of other provinces; associate in investing and building trade and service centers in the district For attracting association with foreign enterprises and other provinces, it is possible to allow foreign investors to associate with domestic investors to build partial urban works of the works invested in ecological resorts and craft village resorts 3.5.4 Widening the market For quick and stable economic growth, the market plays a quite important role, including input materials market and output product market In the context of international economic integration and WTO membership, searching, exploiting and expanding the market should target at both international market and domestic market, including regional market, urban market and district market To widen the market for existing products for export, the district should provide appropriate supports to product promotion and introduction activities such as: displaying products with advertisement information at hotels, tourist points with many incoming international tourists; supporting unique or high quality products in participating in domestic and foreign trade fairs; establishing 88 close and regular relationship with domestic or international trade promotion organizations; exploiting and bringing into full play the relationship with overseas Vietnamese or expatriates to seek partnership For domestic market, it is necessary to bring into full play the traffic advantage between the district and other provinces to enhance product exchange, develop trade and service sector of the district Quickly formulate and promote market network in the district; well organize agents and outlets within the city, especially for such agricultural products as clean vegetable, flower and bonsai In all circumstances including domestic and international markets, in order to seek and widen the market stably, the district’s products should have trademark registered in the market, firstly for key products of the district such as agricultural products, wood furniture and mechanical products 3.5.5 Improving general power of economic sectors The district must encourage economic sectors, domestic and foreign enterprises, organizations and entrepreneurs to invest in developing and enhancing production and business efficiency in all fields under the laws The district must focus on establishing mechanisms and policies to promote liberating production force and social resources, concurrently ensuring equal and highly competitive business environment Mechanisms and policies of the district must be in accordance with the general State regulations, creating legal framework while stimulating economic sectors to participate in 89 Source: People’s Committee of Dong Anh district 90 CONCLUSION 1.1 Studying socioeconomic changes of a district within 10 years is relatively suitable in terms of time Such period is sufficient to reflect basic socioeconomic laws Associated with the selected location as Dong Anh - we have relied on the statistics, summary reports over the past 10 years (from 2000) This period is long enough to evaluate the socioeconomic movement and change, especially from 2000 up to now, Dong Anh has gained many important changes due to the remarkable planning and investment from the State and domestic and foreign enterprises In particular, with adequate investment attraction policies, Dong Anh is like a potential and promising land for the enterprises 1.2 Upon studying socioeconomic changes of an economy, it is necessary to access from various angles Within this thesis, we have studied in some specific sections in economic and social fields These are not yet comprehensive but have reflected basic and outstanding changes of Dong Anh district The separation of such sections is just relative and clear for thinking In fact, they are interactive and dialectical Economic changes will make social structure change and vice versa It is possible to indicate some main changes as follows: + Total revenue of the entire economy is increased by more than 300 times in 10 years, in which quick increase and strong shift in structure can be seen in basic construction industries, trade - service - transport and agriculture (75.1% 16.3% and 8.6% in 2010, respectively) Annual economic growth rate always achieves over 10% This reflects the general trend of the industrialization and modernization of the district in the general trend of the whole country + Inside the change of socioeconomic system of Dong Anh, there is internal change of socioeconomic parts in the direction of reduced proportion of agriculture (8.7%), increased proportion of industry (75.1%) and service (16.3% - in 2010) 91 + Change in economic sectors: economic sectors that occupy high value of the economy are individual and mixed ones, followed by private one and collective one However, collective economic sector in the transition to the socialism still works as orientation and balance for the relationships between economic sectors + Change in labor: in the market mechanism, the labor force that is transformed from the State economic sector to individual and mixed sectors occupies the most + Culture - society and life quality: developed economy has created requisite for the enhanced quality of culture - society Intellectual standard keeps being increased; urban lifestyle is common in rural areas; material facilities and medical staff, teachers are increased in terms of quantity and quality As such, identification of such impact will work out adequate adjustment mechanism for the entire economy of Dong Anh in general The most important thing is based on the careful survey on the socioeconomic change over the past 10 years We have analyzed and explained the reason, thereby putting forth scientific recommendations for the development of Dong Anh district in the next period 1.3 Based on the evaluation as per SWOT model, a very useful analysis model for grasping and making decisions in all situations for any object, we have evaluated comprehensively strengths, weaknesses, opportunities and threats in socioeconomic 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