Phát triển ngành cao su việt nam trong quá trình công nghiệp hóa, hiện đại hóa nông nghiệp, nông thôn đến năm 2030 TT TIENG ANH

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY oOo DEVELOPMENT OF VIET NAM RUBBER INDUSTRY IN INDUSTRIALIZATION, MODERNIZATION OF AGRICULTURE AND RURAL AREAS TO 2030 VÕ HOÀNG AN Major: Political Economics Code: 9310102 SUMMARY OF DOCTORAL THESIS IN ECONOMICS HO CHI MINH CITY, 2021 The thesis was completed at: University of Economics, Ho Chi Minh City Supervisor: Reviewer 1: Reviewer 2: Reviewer 3: The thesis will be defended before the University of Economics Ho Chi Minh City Jury At (hour) (date) (month) (year) This Thesis is archived at UEH Library and National Library INTRODUCTION RESEARCH CONSIDERATION Rubber is an essential raw material to create numerous products serving human beings With 941,300 hectares of rubber trees (VRA, 2019), the rubber industry creates jobs for more than 400,000 people in the rural sector and more than 100,000 people working in production, processing of rubber and rubberwood products, besides the number of people working in the industries and service sectors relating to the rubber industry Currently, Viet Nam is the third largest rubber producing and exporting country in the world Its rubber industry achieved notable results over the past years, however, it still faces many challenges, in particular, the efficiency of the value chain and competitiveness of the industry compared to that in some countries in the region are weak Its participation in the process of socio-economic development, and of industrialization and modernization of agriculture and rural areas is limited compared to its potential The full theoretical and practical research has scientific significance in the multifaceted relationships between the development of the rubber industry and the industrialization and modernization process of rural development to get comprehensive solutions to the rubber production chain towards sustainable development is essential in the current period Based on the actual situation, the author has chosen the topic “Development of Viet Nam Rubber Industry in industrialization, modernization of agriculture and rural areas to 2030” for his doctoral thesis LITERATURE REVIEW 2.1 RESEARCH WORKS ON RURAL AND AGRICULTURAL INDUSTRIALIZATION AND MODERNIZATION: 2.1.1 International research on rubber industry in industrialization, modernization of agriculture, rural areas: (1) Research report “Rural Development through Rural Industrialization: Exploring the Chinese Experience”, the Asian Scholar, Issue No.4 of Sanjeev Kumar (2007) (2) Research report “Industrialization in Malaysia: Changing role of Government and Foreign Firms” (2009), DEGIT (3) Research report “Rural Industrialization: Challenges and Proposition” of K.Sundar and T Srinivasan, 2009 2.1.2 Domestic research works on industrialization and modernization of agriculture and rural areas: (1) The book "Industrialization and modernization of agriculture and rural areas from theory to practice in Viet Nam today" by Pham Ngoc Dung 2011; (2) The book "Industrialization and modernization of Viet Nam's economy in the context of the fourth industrial revolution" by PhD Pham Thuyen 2019; (3) Journal Publication "Agricultural and rural industrialization and modernization and the raised problems in the current period" by Nguyen Van Giau 2015; (4) Journal Publications "The role of the agricultural and rural industrialization for the socio-economic development in our country" Nguyen Thi Phuong Thao 2016 2.2 RESEARCH WORKS ON THE RUBBER INDUSTRY IN the of AGRICULTURAL AND RURAL INDUSTRIALIZATION: 2.2.1 Foreign studies on rubber industry in process industrialization and modernization in agriculture and rural areas (1) Doctoral thesis of Goldthorpe, 2009, “Resource – Based Industrialization in Penisular Malaysia: A case study of the Rubber Products Manufacturing Industry” University of Bradford (2) Research Report “Can Cooperatives Improve the Incomes of Rubber Smallholders in Thailand? A Case Study in Chumphon Province” by Angthong Suttipong and Fujita Koichi 2019 (3) Journal publication “Sustainability and Competitiveness in Thai Rubber Industries” by Adam Tanielian 2018 (4) Journal publication“Factors Affecting Free Labor Movement Amongst Rubber Industry Workers within the ASEAN Economic Community – AEC” 2014 (5) Journal publication on industrialization process of rubber industry in India, “Rubber-Based Industrialization in Kerela - An Assessment of Missed Linkages” 1992 (6) Research Report “State of Indian Non-Tire Manufacturing Industry” by Vinod Simon 2016 (7) Research Report “World Natural Rubber Production Scenario” of Sheela Thomas, 2016 (8) Research Report “Potential of Rubberwood as Green Material in Building Structure” of Jalaluddin Harun 2015 (9) Research Report “Estimation CO2 Fixation by rubber plantation” by Alchemi Putri et al., 2015 (10) Research Report “Carbon sequestration potential of rubber-tree plantation in Thailand” by D Satakhun et al., 2019 (11) The book “The World Rubber Industry" by Barlow C et al., 1994 2.2.2 Domestic research on the rubber industry in industrialization, modernization of agriculture and rural areas (1) Research on Viet Nam natural rubber production development: - Journal Publication "Assessment of current status of household ‘s natural rubber production of in Quang Binh province" by Hoang Bich Thuy and Tran Thi Thu Ha, 2017; Master Thesis "Development of rubber trees in Sa Thay District, Kon Tum Province" by Phan Dinh Manh, 2011 ; - Master Thesis "Analysis of the value chain of rubber trees in Kon Tum province" by Le Kha Tuan, 2017; - Journal Publication "Applying Data Envelopment Analysis and Tobit regression method to evaluate the efficiency of household ‘s natural rubber production in Kon Tum province" of Thai Thanh Ha; - Master thesis "Development of rubber production in Quang Tri province" by Nguyen Thi Phuong Thao, 2018 (2) Research on competitiveness of Viet Nam's rubber industry:- Doctoral thesis "Improving competitiveness of enterprises in Viet Nam rubber industry by 2020" Huynh Van Sau, 2008; - Journal Publication "Improving competitiveness of Viet Nam rubber products" by Doan Hoai Duc, Nguyen Thi Thanh Mai, 2019 (3) Research on development of Viet Nam's rubber product market: - Master Thesis "Solutions to improve efficiency of natural rubber export at Dau Tieng One Member Company Limited" by Nguyen Thanh Danh, 2015; - Doctoral Thesis: "Some solutions to improve import-export work of Viet Nam Rubber Corporation" by Nguyen Hong Phu, 2001; - Ministry-level research Project "Viet Nam rubber market: Current situation and solutions" by Pham Xuan Lan, 2001 (4) Research on development of rubber wood products in Viet Nam: Research report on "Legality of rubber wood in Viet Nam" by Dang Viet Quang et al (2014); Research report "Some key risks of the export wood processing industry in the integration context - Current situation and solutions" by To Xuan Phuc, Nguyen Thi Thu Trang, Nguyen Thi Thuy Dung (2016) 2.3 OBSERVATIONS ON RESEARCH STUDIES 2.3.1 Contributions in theory - The studies on agricultural and rural development in the process of industrialization and modernization have reflected and contributed in many aspects in terms of institutions, planning, association, market issues, science and technolog, human resources, etc Most of them affirm that agricultural development must be associated with industry development in the process of industrialization and modernization Agriculture is the input of industry and industry is the output of agriculture in the mutual relationship for development - The rubber industry studies show the efficiency and competitiveness of rubber trees The researches, though from different angles, still find a common point that the development of rubber will promote infrastructure development, create jobs, stabilize labor income, and economic restructuring as a premise for industrialization and modernization and towards sustainable development 2.3.2 Contribution to practical aspects - The studies have reflected the reality of ongoing economic problems and proposed positive solutions for the natural rubber industry and the industrialization and modernization of the country - Affirm and prove the correctness of the Party and State's policy of developing natural rubber production to promote the industrialization and modernization of agriculture and rural areas - On the basis of analyzing the current situation, assessing the achievements and the limitations of the development of natural rubber production and the process of industrialization and modernization of agriculture and rural areas in our country over the past time, the researches have had suggestions, recommendations and solutions to positively contribute to the natural rubber sector and the cause of industrialization and modernization of the country towards the sustainable development of the rubber industry 2.3.3 Gaps in theory and practice of these studies In theory, The studies have not fully showed the overall problem at the industry development level on the basis of a series of main products from rubber trees In practice, the natural rubber production development in the direction of the production chain of main products from rubber trees has not been analyzed RESEARCH OBJECTIVES AND QUESTIONS 3.1 RESEARCH OBJECTIVES General objective: Develop the rubber industry in industrialization, modernization of Viet Nam’s agriculture and rural areas to 2030 Specific objectives: Analyze the scientific and practical basis for the development of the rubber industry, namely ( i) explain the industry development background with the aim of building a theoretical basis for the rubber industry development and its value chain and (ii) the relationship between the rubber industry development and the industrialization and modernization process of agriculture and rural areas Evaluate the impact of the rubber industry development status quo on socioeconomic and environmental aspects in the rubber planting regions thoroughly from planting, processing and consuming natural rubber, rubber wood and industrial rubber products Propose solutions to the development of Viet Nam rubber industry in line with the industrialization and modernization of agriculture and rural areas in the view of the Party and State 3.2 RESEARCH QUESTIONS - Theoretical basis for the technical-economic industry and the rubber industry? -.The value chain of the rubber industry and the influencing factors on its development? - What is the relationship between the development of the rubber industry and the process of industrialization and modernization of agriculture and rural areas? - How has the status of the development of the rubber industry affected the industrialization and modernization of agriculture and rural areas in recent years? What problems need to solve? - What are the solutions to develop the rubber industry in industrialization and modernization of agriculture and rural areas in Viet Nam until 2030? OBJECTS AND SCOPE OF THE STUDY: 4.1 RESEARCH OBJECTS: The development of the rubber industry in industrialization and modernization in agriculture and rural areas 4.2 RESEARCH SCOPE: Natural rubber - Research space: In the entire territory of Viet Nam, but the subjects surveyed are mainly concentrated in the Central Highlands and Southeast provinces - Research period: from 2006 to 2019, mainly in the period of 2010-2018 NEW POINTS AND THESIS CONTRIBUTIONS 5.1 ACADEMIC ASPECTS: - The thesis has systematized the theory of branch and the economic-technical industry to serve as a basis for building the theory of the rubber industry development - The thesis has built a theoretical framework to research the development of the rubber industry in the period of industrialization and modernization of agriculture and rural areas on the basis of the key-product supply chain from rubber trees 5.2 PRACTICAL ASPECTS: - The thesis has researched and evaluated the status of the development of the rubber industry in industrialization and modernization of rural agriculture comprehensively from planting, processing and consuming natural rubber, rubber wood and industrial rubber products - The thesis has analyzed the status of the development of the rubber industry contributing to the industrialization and modernization of agriculture and rural areas in the fields: (i) Job creation contributing to hunger eradication, poverty reduction and restructuring of rural labor; (ii) Development of technical and economic infrastructure in rural areas; (iii) Contribution to the development of education, social culture and health in rural areas - The thesis has proposed new solutions for the development of the rubber industry including: i) Solution for planning the rubber plantation area in relation to the fluctuations of market demand (expanding or narrowing), ii) Solution for developing brand name of Viet Nam rubber industry; iii) Digital transformation solution for the rubber industry in Industry 4.0; iv) Solution to establish rubber markets or trade centers for rubber materials in the localities STRUCTURE OF THE THESIS Besides Introduction and Conclusion, the thesis consists of chapters: Chapter 1: Theoretical basis of the rubber industry development in industrialization, modernization of agriculture and rural areas Chapter 2: Research methodology Chapter 3: Current status of the Viet Nam rubber industry development inindustrialization, modernization of agriculture and rural areas and lessons lesrned from the rubber industries of some Asian countries Chapter 4: Orientations and solutions for rubber industry development in industrialisation, modernisation of agriculture, rural areas of Viet Nam to 2030 CHAPTER THEORETICAL BASIS ON RUBBER INDUSTRY DEVELOPMENTT IN INDUSTRIALIZATION, MODERNIZATION OF AGRICUTURE AND RURAL AREAS 1.1 THEORETICAL BASIS ON DEVELOPING THE ECONOMICTECHNICAL INDUSTRY 1.1.1 Concept of development and economic development 1.1.1.1 Concept of development 1.1.1.2 Concept of economic development 1.1.2 Theory of Industry and Development of the economic-technical industry 1.1.2.1 Concept of the economic-technical industry According to Marx, the technical-economic branch is the result of the division of social labor Division of social labor is the specialization of production dividing social production into many different branches 1.2.2.2 The structure of the technical-economic branch and the formation of the value chain of the commodity industry a) The structure of the technical-economic branch A technical-economic branch is structured by three main elements: agents, functions and respective products An agent is a set of units that operates in the same activity: "producer", "processor", "wholesaler", "retailer" In a commodity industry, the agent s’ relationship diagram is often shown as follows: Raw produce Producer Feedback Processed products Processor Wholesale products product Wholesaler Feedback Retailer Feedback Retail products Consume Consumer r Feedback Source: Pham Van Dinh (1999) Figure 1.1 Relationship of agents in a commodity industry Functions are economic activities performed by the respective agents The function name is often the same as the name of the agent Products are the results of the activities of each agent and function In the commodity chain, each agent creates its own product b) The formation of a commodity value chain 11 Development of rubber production Development of rubber purchasing Factors of Production - Natural conditions - The local socioeconomic conditions - Technology - Human Resources - Capital - Qualifications of production management, - Economic sectors Development of rubber and rubber wood processing Development of rubber consumption Domestic consumption - Export Factors of the supporting industries - Supplying seeds, fertilizers, pesticides - Manufacturing chemicals, machinery, equipment, vehiches.- Bank Industrializatio, modernization of agriculture and rural areass - Providing land fund for rubber development - Supplying labor force - Supplying socioeconomic infrastructure for rubber development DEVELOPMENT OF RUBBER INDUSTRIALIZATION, MODERNIZATION OF AGRICULTURE AND RURAL AREAS Factors of market demand - Market environment - Market demand - Rubber price - Brand promotion and marketing Government Policy - Law - Production planning - Policy on Land, Tax, Labor, Salary, Science and Technology, Foreign economic relations, Credit Industrialization, modernization of agriculture and rural areas - Economic growth - Job creation, increase income - Restructuring rural economy - Environmental improvement and sustainable development Source: Research by Author Figure 1.5 Theoretical research framework of the rubber industry development in industrialization, modernization of agriculture and rural areas 1.2.4 The relationship between the rubber industry development with the industrialization and modernization process of agriculture and rural areas 1.2.4.1 The concept of industrialization and modernization in agriculture and rural areas Rural industrialization and modernization are "the process of restructuring the rural economy in the direction of rapidly increasing the proportion of the value of products and labor in the industries and services…protecting the ecological environment; reorganize production and build appropriate production relationships; 12 building a democratic, fair and civilized countryside, constantly improving the material and spiritual life of the people in the countryside ”(Communist Party of Viet Nam, 2002) 1.2.4.2 The relationship between the rubber industry development and industrialization, modernization of agriculture and rural areas (1) The development of the rubber industry is an important part to the industrialization and modernization of agriculture and rural areas: - Contribution to economic growth, to job creation, ensuring income, improving the ecological environment - Transformation of the rural economic structure towards industrialization and modernization (2) Agricultural and rural industrialization and modernization create a favorable environment for the development of the rubber industry: - Agricultural and rural industrialization and modernization to provide land fund to expand the scale of natural rubber production; - Economic restructuring and supplying of labor force for development of natural rubber production; - Create socio-economic infrastructure to support the rubber industry development 1.3 CONTENT AND CRITERIA FOR ASSESSMENT OF RESULTS AND FACTORS AFFECTING THE RUBBER INDUSTRY DEVELOPMENT IN THE PERIOD OF INDUSTRIALIZATION AND MODERNIZATION OF AGRICULTURE AND RURAL AREAS 1.3.1 Development contents and evaluation criteria for the development results of the rubber industry through the following phases: (1) Rubber production: Area, Production, Productivity (2) Procurement: The amount of field latex and structure (3) Processing: Quantity, Capacity, Types of products rubber wood, Component 13 (4) Product Consumption: Quantity, Types, Export value, Domestic consumption rate of natural rubber 1.3.2 Factors affecting the development of the rubber industry in industrialization, modernization of agriculture and rural areas 1.3.2.1 Factors of production: a) Natural conditions b) Agricultural technique and rubber processing technology c) Human resources for the rubber industry d) Capital for the rubber industry e) Production organization and management qualifications g) Economic sectors (production relations) h) Local socio-economic conditions 1.3.2.2 Factors affecting market demand: a) Market environment b) Consumer market demand c) Rubber price d) Brand promotion and marketing 1.3.2.3 Supporting industries 1.3.2.4 Goverment Policy 1.4 Experience of developing the rubber industry in some countries and lessons drawn for Viet Nam An overview of the rubber industry development of some countries and lessons drawn for Viet Nam's rubber industry: 1.4.1 Malaysia rubber industry 1.4.2 India Rubber industry 1.4.3 Indonesia Rubber industry 1.4.4 Thai rubber industry 1.4.5 Lessons learned for the development of Viet Nam's rubber industry 14 CHAPTER RESEARCH METHODS 2.1 RESEARCH METHODOLOGY FOR THE DEVELOPMENT OF VIET NAM RUBBER INDUSTRY IN INDUSTRIALIZATION, MODERNIZATION OF AGRICULTURE, RURAL AREAS The research is done on the basis of the principles, rules and approaches of the methodology of dialectical materialism and historical materialism 2.2 SPECIFIC RESEARCH METHOD OF THE THESIS 2.2.1 Research procedure of the thesis Overview of theories and material on rubber industry development in industrialization, modernization of agriculture and rural areas Elaboration of analysis framework Assessment of development status of Viet Nam rubber industry in industrialization, modernization of agriculture, rural areas Orientations, solutions to develop Vietnam rubber industry to 2030 Source: Author’s overview Figure 2.1 Research procedure 2.2.2 Analysis and synthesis method 2.2.3 Professional solution 2.2.4 Field survey method with qualitative in-depth interviews: Viet Nam Rubber Group and 15 member rubber companies with a total area of 293,000 hectares and total production of 320,000 tons / year CHAPTER CURRENT STATUS OF THE VIET NAM’S RUBBER INDUSTRY DEVELOPMENT IN INDUSTRIALIZATION, MODERNIZATION OF AGRICULTURE AND RURAL AREAS 3.1 OVERVIEW OF DEVELOPMENT STAGES OF THE NATURAL RUBBER INDUSTRY The stage of production recovery (1976-1980): Since the end of 1975, the rubber industry has started to rebuild and restore production By the end of 1980, the rubber industry had 87,700 and production output reached 41,100 tons / year 15 The stage of developing rubber production scale (1981-1995): The total rubber area of the rubber industry by the end of 1995 was up 278,400 ha, production output reached 124,700 tons / year The Stage of production-business development and restructuring towards sustainable development (from 1995 up to now): - The total rubber area and output in 2019 are 941,300 hectares and 1,185,000 tons, up times compared with 2006 and up nearly 10 times compared to 1995 - Restructuring the rubber industry, increasing added value and sustainably developing 3.2 CURRENT STATUS OF NATURAL RUBBER PRODUCTION 3.2.1 Status of area, production and yield of rubber trees The area of rubber trees in Viet Nam up to now is 941,300 ha, the current rubber output is estimated at 1,185,000 tons with the yield of 1,668 kg/ha The rubber area concentrated mainly in the Southeast region, followed by the Central Highlands and Central Viet Nam Table 3.3 Area, Production and Yield of Rubber Plantation in Viet Nam according to Production Types, 2016 – 2019 Area (000 hectares) Type Yield (ton/year) Production (000 tons) 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 Estate 498 474 475 452 1.67 1.62 1.57 1.594 440 416 436 4537 Stateowned 418 405 405 361 1.67 1.62 1.56 1.609 407 375 393 386 Private 80 69 69 90 1.65 1.57 1.57 1.510 33 41 43 67 Small holdin g 474 495 491 488 1.66 1.71 1.70 1.717 594 678 701 731 Total 973 969 966 941 1.66 1.67 1.65 1668 1035 1094 1137 1185 Source: Viet Nam Rubber Association, 2020 3.2.2 Distribution of natural rubber production in Viet Nam Th rubber area concentrated mainly in the Southeast region, followed by the Central Highlands and Central Viet Nam 3.2.3 Rubber growing types in Viet Nam 16 Rubber growing types in Viet Nam are estate rubber (state owned and private businesses) and smallholder rubber 3.3 STATUS OF FIELD LATEX PURCHASING DEVELOPMENT Currently, the procurement of field latex has the participation of many subjects including state-owned enterprises, private enterprises and private traders Latex sources from smallholder farmers have to go through many intermediaries to the processing factories and its prices mainly depend on traders 3.4 STATUS OF RUBBER PROCESSING DEVELOPMENT 3.4.1 Current status of field latex processing: In 2018, Viet Nam had a total of 197 processing factories, with a design capacity of more than 1.3 million tons of dry latex / year The Southeast region is the largest region of rubber area It is also the region with the largest number of factories (118) with a design capacity of 1,014 million tons / year The designed capacity of the factory in the Central Highlands is 167,860 tons / year, the North Central Coast is 83,497 tons / year, and the South-Central region is 63,000 tons / year (Viet Nam Rubber Association, 2019) 3.4.2 Status of manufacturing rubber products: Domestic consumption of natural rubber in Viet Nam for the processing of rubber industry products has reached around 200,000 tons / year, accounting for about 20% of natural rubber output in recent years Viet Nam natural rubber products serve a wide range of industries, from the automotive (tires, tubes, components) industry to the health sector (gloves, medical products), footwear (shoe soles), apparel (elastic thread), transportation (conveyor belts), household goods (pillowcases, flooring, children's toys), sports (soccer) 3.5 CURRENT SITUATION OF THE DEVELOPMENT OF VIET NAM'S RUBBER EXPORT (2007-2019) 3.5.1 Export of natural rubber 17 Export of natural rubber of Viet Nam in 2019 reached 1.7 million tons equivalent to 2.3 billion USD, increased by 8.79% in volume and 10.03% in turnover compared to 2018, (Viet Nam Rubber Association, 2020) The average growth of natural rubber export volume in the 2007-2011 period was only 3.35%, but the average export turnover increased by 23.42% During the period of low prices from 2015 to 2019, the rubber industry has made efforts to increase the export volume to offset the export turnover The average growth in export rubber volume and turnover in this period was 15.74% and 10.72%/year 3.5.2 Export of industrial rubber products According to the General Department of Customs, the export turnover of rubber products from 2012-2019 has increased continuously and exceeded billion USD since 2012 (reaching 2.17 billion USD in 2017, 2.32 billion USD in year 2018 and 2.4 billion USD in 2019) Average growth in export value from 2012 to 2019 was 13.14% / year (Viet Nam Rubber Association, 2019) 3.6 PROCESSING AND EXPORTING STATUS OF RUBBER WOOD PRODUCTS 3.6.1 Rubber wood output in the period 2020-2035: Currently, the liquidated rubber area of Viet Nam is about 15,000 hectares/year with about million m3 of wood Annually liquidation and replanting of rubber will gradually increase and stabilize at 30,000 to 40,000 of a total area of about million of fixation, Viet Nam is likely to have about 6- million m3 of rubber wood / year for the period from 2030 to 2035 (Dang Viet Quang et al., 2014) 3.6.2 Export turnover of rubber wood materials and rubber wood products in 2016-2019 From 2016 to 2019, the average growth in export turnover of rubber wood materials and rubber wood products reached 15.68%, from $ 1,539 billion in 2016 to $ 2.38 billion in 2019 3.6.3 Contribution of the rubber wood in the Viet Nam's wood industry export in 2019 18 Rubber wood contributes 22.4% of the total export value of Viet Nam's wood industry, including 19.2% in the export of wood materials and 23.5% in the export of wood products of the country 3.6.4 Export markets for rubber wood products of Viet Nam in 2019 Viet Nam mostly exported rubber wood products to the US market, reached 1.33 billion USD, accounting for 72.8% in 2019 Followed by the Japanese market reached 154.82 million USD (8.5%), the Korean market reached 126.33 million USD, accounting for 6.9% 3.7 DEVELOPING THE RUBBER INDUSTRY CONTRIBUTES TO THE INDUSTRIALIZATION AND MODERNIZATION OF AGRICULTURE AND RURAL AREAS AT LOCAL 3.7.1 Create jobs to contribute to hunger eradication, poverty reduction and rural labor restructuring Only 495,033 hectares of rubber trees have brought jobs and stable income to 263,876 households (General Statistics Office, 2017) The rubber industry has created jobs for about 489,000 rural labors (MARD, 2019) and more than 100,000 workers in the rubber and rubber wood processing industries, not to mention the number of jobs for import-export enterprises, industrial parks and related services 3.7.2 Contribute to the development of economic-technical infrastructure Table 3.18 Summary of investment in production and social infrastructure of VRG from 2011 – 2018 3.7.3 Contribute to the development of education, social culture and healthcare at local Table 3.18 Summary of investment in production and social infrastructure of VRG from 2011 – 2018 and Appendix Summary of activity results of Hospitals and medical centers of 15 VRG member enterprises in the Southeast and the Central Highlands in 2019 3.8 EFFICIENCY OF NATURAL RUBBER PRODUCTION 3.8.1 Efficiency of natural rubber production 19 For more than 20 years from 1996 to 2019, althought natural rubber prices have always been volatile but the rubber business-production always ensured efficiency The selling price of rubber in Viet Nam is always higher than the cost price from 1996 to 2019 (Table 3.20) 3.8.2 Efficiency of estate natural rubber production From 2008-2011, the rate of profits on revenue of VRG ranged from 26% to 34.91% / year and the rate of profits on capital from 20.4% to 37.36% / year (Table 3.21) From 2016-2019, the price of rubber was very low, but the rate of return on revenue was still from 5.34% - 11.3% / year and the rate of return on capital was from 15.4% - 19.3% / year (Table 3.22) 3.9 OVERALL ASSESSMENT OF THE DEVELOPMENT OF VIET NAM RUBBER INDUSTRY 3.9.1 Achievements: 3.9.1.1 Viet Nam rubber industry has made a great progress in terms of production area and plantation productivity in the type diversification process of rubber planting 3.9.1.2 Viet Nam rubber industry has restructured its economic sectors, attracting not only state-owned businesses but also private businesses and FDI businesses 3.9.1.3 In the rubber industry development, the procurement and processing phases are gradually improved in the direction of diversifying finished products 3.9.1.4 Viet Nam's rubber industry has been deeply integrated with the world market through the ability to export various types of rubber products 3.9.2 Shortcomings and existence: 3.9.2.1 The development of rubber trees is not consistent with the limited market demand, rubber production is not under planning with low efficiency 3.9.2.2 The structure of rubber products is not diversified and has not been deeply processed 20 3.9.2.3 Viet Nam rubber products have yet to become a brand name and have not created high competitiveness in the global market 3.9.3 Causes of shortcomings and existence 3.9.3.1 Rubber area planning and management have not yet controlled the production development scale in accordance with market demand 3.9.3.2 The quality control system is not yet strict and comprehensive 3.9.3.3 Rubber price decreases continuously and weather conditions are unfavorable 3.9.3.4 The rubber consumption market is not yet diversified and depends only on some countries The latex purchasing market has not ensured healthy competition 3.9.3.5 Human resources for the rubber industry have yet to meet the development needs, the application of technical advances in production and production links are still limited 3.9.3.6 State policies for the rubber industry are still inadequate and not synchronous CHAPTER ORIENTATIONS AND SOLUTIONS FOR THE RUBBER INDUSTRY’S DEVELOPMENT IN INDUSTRIALIZATION, MODERNISATION OF AGRICULTURE, RURAL AREAS OF VIET NAM TO 2030 4.1 DEVELOPMENT ORIENTATION OF VIET NAM RUBBER INDUSTRY IN INDUSTRIALIZATION AND MODERNIZATION OF AGRICULTURE AND RURAL AREAS TO 2030 4.1.1 Forecast of the world and domestic situation to the development of Viet Nam rubber industry in industrialization and modernization of agriculture and rural areas until 2030 4.1 1.1 Opportunities of Viet Nam rubber industry 4.1.1.2 Challenges of the rubber industry 4.1.1.3 SWOT Matrix of Viet Nam rubber industry 21 4.1.2 Conceptions and objectives of the rubber industry’s development in industrialization, modernization of agriculture, rural areas to 2030 and beyond 4.1.2.1 Viewpoints of Development: - Promote all resources of economic sectors to participate in the development of the rubber industry; - Developing rubber in the direction of investing in intensive farming to increase productivity and quality; - Rubber development must link raw material areas with processing industry establishments 4.1.2.2 Development goals: - General goals: To promote all resources for the rubber industry’s sustainable development - Specific goals: The average growth rate of production value and added value of rubber products in the period 2021 - 2025 will reach 15% and 12% in the period of 2026 - 2035 4.1.3 Orientation of development Developing the product supply chain from rubber trees on the interregional basis; Applying advanced and modern technology; Maximizing the usage of available domestic raw material for manufacturing high quality products and increasing exports 4.1.3.1 For the natural rubber industry 4.1.3.2 For the wood and rubber wood industries 4.2 SOLUTIONS DEVELOPMENT IN TO VIET NAM INDUSTRIALIZATION, RUBBER INDUSTRY MODERNIZATION AGRICULTURE, RURAL AREAS TO 2030 4.2.1 Solution to planning and managing rubber areas associated with industrialization and modernization of agriculture and rural areas OF 22 Review the entire rubber areas and readjust the rubber master plan to maximize the economic, social and environmental efficiency of the rubber industry accordingly Rubber area must be strictly managed to the Land Law 4.2.2 Solution to quality management and type structure of natural rubber: - Establish the Rubber Council or the Rubber Industry Executive Board; - Developing national standards of input rubber latex and national technical regulation on output natural rubber products; - Diversifying the structure of product categories in accordance with the needs of the domestic and global rubber markets 4.2.3 Digital transformation solution enhances the efficiency of the supply chain of the rubber industry towards sustainable development Digital transformation and application of information technology to manage and increase the rubber supply chain efficiency towards the sustainable rubber industry development in accordance with economic, social and environmental criteria 4.2.4 Solution to establishment of rubber markets or rubber purchasing centers - Establishing rubber markets, rubber trading centers with online transaction systems to reduce marketing costs, create fairness in sales and increase supply chain efficiency 4.2.5 Solution to policies especially tax policies to promote rapid development and to facilitate production, trading of rubber and rubber wood products - Having a reasonable tax policy that facilitates the development of production and processing of rubber and rubber wood products in terms of corporate income tax, land tax, and exemption of value added tax for domestic natural rubber trading 4.2.6 Solution to the development of the processing of rubber and rubberwood products 23 - Having appropriate investment incentive policies and streamlined administrative mechanisms and procedures; - Surveying the market, identifying rubber wood and rubber processing products of Viet Nam with high competitive advantages; - Development of supporting industries to improve production efficiency; - Credit incentives for production development, for export promotion strategy to medium and long-term export market 4.2.7 Solution to brand name development of Viet Nam rubber industry - Building and developing the "Viet Nam Rubber" certification trademark of the Viet Nam Rubber Association to ensure the criteria for quality, prestige and sustainable development in terms of economy, society and environment - Extensive registration of trademark protection "Viet Nam Rubber" of Viet Nam Rubber Association in the world market 4.2.8 Formation of links between businesses and production regions to upgrade the value chain of the rubber industry aiming to establish rubber and high-tech rubber industrial zones - To form linkages of supply chain in the rubber industry on the basis of regional links; - To form closer linkages between large state-owned enterprises in the rubber industry value chain on the interregional basis; - Calling for investment in the existing rubber industrial zones towards hightech rubber industrial parks 4.3 RECOMMENDATIONS 4.3.1 For the Ministry of Agriculture and Rural Development 4.3.2 For the Ministry of Science and Technology 4.3.3 For the Ministry of Planning and Investment 4.3.4 For the Ministry of Industry and Trade 4.3.5 For the Ministry of Finance 4.3.6 For State banks 24 4.3.7 For the local governments of the provinces 4.3.8 For businesses in the rubber industry CONCLUSIONS From the current situation of developing rubber trees in Viet Nam and some countries in Asia, the thesis has had an overall research on the theory and practice of the rubber industry’s role in the process of industrialization, modernization of agriculture and rural areas, enriched the theory of industrialization and modernization of rural agriculture on the basis of rubber trees as the main surveyed object and provided policy-makers with more information to propose policies for rubber industry development in the process of industrialization, modernization of agriculture and rural areas However, there remain issues namely sustainable development Sustainable development of the rubber industry should meet the criteria on economy, society, environment and human according to the world development’s criteria and trend It is a big challenge for Viet Nam rubber industry and any rubber producing countries, therefore, the thesis needs to be expanded in the future for a deeper and more comprehensive view of the sustainable development of the Viet Nam rubber industry./ 25 LIST OF PUBLISHED STUDIES MADE BY THE AUTHOR RELATED TO HIS THESIS Vo Hoang An, 2019 : Development of Manufacturing Sector of Rubber Products in the Central Highlands Region in International Economic Integration Economics and Technology Review ISSN: 0866 – 7802 No 25 / 03-2019, Pages: 25-31 Binh Duong Economics and Technology University Vo Hoang An, 2020: Opportunities and Challenges from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for Viet Nam Rubber Industry Viet Nam Trade and Industry Review ISSN: 0866-7756 No – 1/2020 Pages: 79-83 Vo Hoang An, 2020: The rubber industry devolopment of some Asian countries in the process of industrialization and modernization of agriculture and rural areas and the lessons drawn for Viet Nam University of Economics Hochiminh City: School-level scientific research topic ... Solution to brand name development of Viet Nam rubber industry - Building and developing the "Viet Nam Rubber" certification trademark of the Viet Nam Rubber Association to ensure the criteria... rubber and rubber wood processing Development of rubber consumption Domestic consumption - Export Factors of the supporting industries - Supplying seeds, fertilizers, pesticides - Manufacturing... AGRICULTURE, RURAL AREAS OF VIET NAM TO 2030 4.1 DEVELOPMENT ORIENTATION OF VIET NAM RUBBER INDUSTRY IN INDUSTRIALIZATION AND MODERNIZATION OF AGRICULTURE AND RURAL AREAS TO 2030 4.1.1 Forecast of the