Socio-economic changes in Dong Anh in the innovation period

Socio-economic changes in Dong Anh in the innovation period

VIETNAM NATIONAL UNIVERSITY, HANOI

INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES

BUI HUY TOAN

SOCIO-ECONOMIC CHANGES

IN DONG ANH IN THE INNOVATION PERIOD

Major: Vietnamese Studies Code: 60 31 60

Supervisor: Assoc Prof Dr Pham Hong Tung

Hanoi - 2012

The work is completed at: Institute of Vietnamese Studies & Development

Sciences, Vietnam National Unviersity, Hanoi

Supervisor: Assoc Prof Dr Pham Hong Tung

Opponent 1: Assoc Prof Dr Nguyen Ngoc Thanh

Opponent 2: Dr Pham Quang Anh

The Master Thesis will be presented in front of the Master Thesis Review Committee at: Institute for Vietnamese Studies & Development Sciences,

Vietnam National University, Hanoi

336 Nguyen Trai, Thanh Xuan, Hanoi

on 22/6/2012

For further information about the thesis you may look at:

Central Library, Vietnam Natioinal Unviersity, Hanoi

TABLE OF CONTENTS

INTRODUCTION 1

1 Reasons for the study 3

2 Literature review 3

3 The purposes of the study 4

4 Object and scope 4

4.1 Object of the study 4

4.2 Scope of the study 4

5 References and methods of the study 5

6 Significance 5

7 Structure of the thesis 5

CHAPTER 1: DONG ANH: GENERAL REMARKS 6

1.1 Strengths and development resources – promoting factor for socio-economic changes in Dong Anh 6

1.1.1 Geographical situation 6

1.1.2 Topographical characteristics 6

1.1.3 Local climate 6

1.1.4 Land 6

1.1.5 Hydrographical characteristics 6

1.2 Socio-economic resources 7

1.2.1 Population 7

1.2.2 Human resources 7

1.3 Socio-economic development in Dong Anh District 7

1.3.1 Economic situation 7

1.3.1.1 Industry 7

1.3.1.2 Service -Commerce 8

1.3.1.3 Agriculture 8

1.3.2 Socio-cultural situation 8

1.3.2.1 Education – training 8

1.4 General assessment of potentials, advantages, difficulties and challenges in development process of Dong Anh 9

1.4.1 Advantages for socio-economic development 9

1.4.1.1 Strengths of the natural conditions 9

1.4.1.2 Advantages of socio-economic conditions 9

1.4.2 Difficulties and challenges 9

CHAPTER 2: MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH SINCE 2000 TO NOW 11

2.1 Common theory of socio-economic changes in Vietnam in the innovation period 11

2.1.1 Structure of economy 11

2.1.2 Transformation of economic structure 11

2.1.3 Changes of territorial structure 11

TRANSLATION - BẢN DỊCH

2.2 Changes in structure and economic relations of Dong Anh since 2000 12

2.2.1 Changes in structure of economic sectors 12

2.2.2 Changing inside economic sectors 12

2.3 Changes in structure and social relations 13

2.3.1 Changes in scale of manufacturing facilities and the number of centralized labors by economic sectors in industry 13

2.3.2 Changes in scale of manufacturing facilities and the number of centralized labors in commerce and hospitality Error! Bookmark not defined 2.3.3 Changes in scale of manufacturing facilities and the number of centralized labors in transport 14

2.3.4 Changes in education - health, life quality of Dong Anh district in the period 2000 - 2009 14

CHAPTER 3: ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF DONG ANH UP TO 2020 15

3.1 Viewpoint and orientation of socioeconomic development of Dong Anh 15

3.1.1 Viewpoint of development 15

3.1.2 Orientation of development 15

3.2 Analysis based on SWOT of potentials and challenges in socioeconomic development process of Dong Anh 16

3.2.1 Strengths (favorable conditions for socioeconomic development) 17

3.2.2 Weaknesses (shortcomings in socioeconomic development) 18

3.2.3 Opportunities of socioeconomic development of Dong Anh from now to 2020 18

3.2.4 Challenges of socioeconomic development of Dong Anh from now to 2020 19

3.3 Orientation of development in economic sectors 20

3.3.1 Orientation of development in trade - service sectors 20

3.3.2 Orientation of development in industry, small scale industry and construction 21

3.3.3 Orientation of development in industry 22

3.3.4 Orientation of cultural and social development 23

3.4.1.1 Orientation of education and training development 23

3.4.1.2 Orientation of health development 23

3.4.1.3 Orientation of development in culture - information and sports 23

3.5 Solutions to socioeconomic development of Dong Anh 23

3.5.1 Training and developing human resources 23

3.5.2 Applying scientific and technical advances in production 24

3.5.3 Mobilizing and using investment capital sources effectively 24

3.5.4 Widening the market 25

3.5.5 Improving general power of economic sectors 25

CONCLUSION 26 REFERENCES Error! Bookmark not defined

INTRODUCTION

1 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 level; 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 district

2.2 Studies of the socio-economics change process in Hanoi in the innovation period

From the studies above, it is possibly seen that the socio-economic activities of Hanoi has been quite comprehensively paid attention to study However, most of them focused on changes of occupations, income structure and living standard; of residential houses, infrastructure and environment (especially housing and land matters, food sources, waste treatment and so forth)

2.3 Studies on Dong Anh district

It is possibly said that, the studies above are valuable, but do not emphasize on the socio-economic changes Because this work contains a huge quantity of questions, the socio-economic problems in Dong Anh are just in level of actual situation survey, not further analyzed to take development orientations for the future Therefore, we applied SWOT analysis to assess strengths, weaknesses, chances as well as risks in the socio-economic aspect in Dong Anh comprehensively and then proposed solutions to foster growth of Dong Anh in next years This is the new study

We succeeded assessments of the socio-economic changes above and regarded them as the theoretical premises However, for a specific field – Dong Anh, until the present, no study has successfully analyzed the socio-economic changes All previous studies identified only resources for socio-economic development in Dong Anh The socio-economic changes in Dong Anh, especially after innovation period, have not been considered as a specific and systematical question We bravely make and

answer the question of the socio-economic changes in Dong Anh in the innovation period (the context selected since 2000) After, we will analyze and propose

reference methods for planning a socio-economic development strategy in Dong Anh

3 The purposes of the study

The results of the thesis will clarify the socio-economic changes in Dong Anh since 2000, especially show the basic characteristics of the transition process in the point of view of structure and operating mechanism of the economy in Dong Anh; take and analyze the basic changes in structure and social relationship in Dong Anh

Thence, we will propose orientations and effective solutions to uphold the strengths and minimize the negative problems in the district as well as focus on the sustainable development strategy

To achieve this goal, the thesis will complete the main duties as follows:

- Systemizing socio-economic changes, clarifying related concepts

- Surveying, collecting related figures as required

- Analyzing, explaining the major socio-economic changes, achievements and restrictions in Dong Anh District

- Taking orientations, forecasting several socio-economic changes in the next time, and proposing feasible solutions

4 Object and scope

4.1 Object of the study

The object of the study is the socio-economic change in Dong Anh District, Hanoi City since 2000, especially changes in structure and operating mechanism of the economy; the major changes in structure and social relationship in Dong Anh

4.2 Scope of the study

Location: Dong Anh District, Hanoi City

Time: Focusing on the 2000-present period

5 References and methods of the study

5.1 References

- Reports and summary data of the locality

- Materials collected from the fact-finding tour (quá trình điền dã)

- Succeeding several related achievements from the previous works

These materials are used for comparisons, references to increase accuracy and reliability of the results of the study

- Practical significance: From the reasons as above, the results of the thesis offer the scientific recommendations to promote industrialization –modernization and sustainable development process in Dong Anh District

7 Structure of the thesis

Besides the introduction, the conclusion, the appendix and the list of reference documents, the contents of the study include three chapters as follows:

Chapter 1 Dong Anh: General Remarks

Chapter 2 The main socio-economic transformations in Dong Anh since

2000 to now

Chapter 3 Orientation of socio-economic development in Dong Anh

CHAPTER 1 DONG ANH: GENERAL REMARKS

1.1 Strengths and development resources – promoting factor for socio-economic changes in Dong Anh district

1.1.2 Topographical characteristics

Generally, Dong Anh topography is relatively flat and slopes gently from the west north to the east south The district’s communes in the west north including Bac Hong, Nam Hong, Nguyen Khe have relatively high topography The south-east communes including Van Ha, Lien Ha, Duc Tu, Co Loa, Mai Lam have relatively low topography, and mostly cultivation land area has in low and hollowed topography, and regularly flooded The highest position is 14m and the lowest position is 3.5m, average height of 8m compared with sea level

Average humidity in Dong Anh district is 84% It is seldom changed in months

of a year and regularly fluctuates in range of 80 - 87% Number of rainy days is 144 days at the annually average rainfall of 1600 mm - 1800 mm

1.1.4 Land

Total natural land area of Dong Anh is 18,230 ha, including a part of Red River, Duong River and the alluvial land The land on the river banks is rich of alluvial, but land in interior fields is less fertile, 70% of it is infertile soil

Average land area in Dong Anh Town is 212 m2/household Average agricultural land area per a labor is 0.051 ha This is the lower rate compared with the average rate of Red River Delta Land area and for inhabitants including land for gardens and service works in hamlets and villages 1940 ha, average land area for living activities in the rural area is 364 m2/household A quite large area in the district

is used for military purposes including defense facilities, training facilities of the army

1.1.5 Hydrographical characteristics

Rains are the main water supplies for productions and daily activities of the

people in the field of Dong Anh Annual average rainfall is 1,600 – 1,800 mm annually, rainfall is unsteadily distributed Rainy season is from May to October, equaling to 85% of total rainfall of the whole year In this season, overflowing is in all communes in a hollow

A network of rivers, lakes and lagoons in the district: Rivers are in the

boundary between the south and the north of the district

Ground-water Besides surface water sources; Dong Anh has water fielding

stratums with high content Ground-water plays an important role in water supply for productions and daily activities of the people in the district Ground-water in Dong Anh is always added, provided from the huge water source of Red River

1.2 Socio-economic resources

1.2.1 Population

Total population in the field of Dong Anh District was 350,541 persons,

equaling to 4.7% of the population of Hanoi Capital Dong Anh district has the largest quantity of population compared with the external districts and is in the third position to total districts in Hanoi (behind Dong Da district and Hai Ba Trung district)

1.2.2 Human resources

Total persons at working at in Dong Anh District is 203,505, equaling to over 51% total population (2010) The full number of human resources is the most important one for socio-economic planning and development in Dong Anh District in the next time

Labour ratio working in economic sectors is 98% total human resource in the field of Dong Anh District in the stage of 2006 - 2009 Basically, Dong Anh district has successfully mobilized a labour force into production and business activities in the field in the last time

Not only quantity but also quality of human resources in Dong Anh district has been considerably improved in recent years

1.3 Socio-economic development in Dong Anh District

1.3.1 Economic situation

Dong Anh is a suburb district of Hanoi City and in recent years, Dong Anh district’s the economy has gained the positive changes Its economic structured moved in according to industrialization and modernization orientation; annual average economic growth ratio is nearly 10% Life of the population has been continuously improved; the aspects of the society have shown their economic achievements

1.3.1.1 Industry

Dong Anh’s industries are subject to topography of each region It is concentration into the industrial zones The first industrial zones have been formed since 1970 – 1980 on the highway No 3 This region is distributed in area of approximately 70 ha and currently 22 enterprises are in the mechanical industry, constructional materials… Before, most of this region included the State enterprises, which are currently capitalized The industrial facilities in this region had a quite large area, low constructional density, not-high land use coefficient and scattered (not

as per the model of concentrated industrial zones) Industries in this region are assessed that they have not been highly polluted According to the planning of the city, a part of this region will be used for the industrial facilities, which are moved from the inner city

North Thang Long Industrial Park on Kim Chung commune, Vong La, Hai Boi

is associated to invest by Sumitoro Corporation (Japan) and Dong Anh Mechanical Company Total area of the industrial park is 295ha This is the biggest concentrated industrial park in present-day in Hanoi with 121 ha of the completed stage I and 77

ha of the completed stage II

Besides, in the field of Dong Anh District, a concentrated small scale zone is implemented in Lien Ha and Van Ha Commune

Lien Ha and Van Ha are two communes with the strongest villages in Dong Anh, including Lien Ha, which is developing industrial wood career (Painted wood) and Van Ha, which is developing carpentry, carving, fine arts and household wooden products Potential of two trade village is very large

Now, in the field of the district, there are about 1,600 enterprises (mostly joint stock companies and limited companies) and more than 13 000 business individuals

1.3.1.2 Service - Commerce

In recent years, trading and services have, in the field of the district, well developed Goods and services have been more and more diversified in kind, pattern and met demand of the population in the district However, distribution system in the field of Dong Anh District has not developed as in other districts, especially compared with districts in the city Dong Anh has not built up a modern distribution system including supervisors, convenience store Now, there is only one commercial center in the district, which is combination of residential buildings and general businesses at Dong Anh town Distribution system in the field of the district is for businesses and modern goods exchanges on basis of a network of markets distributed

in communes and town

1.3.1.3 Agriculture

In spite of decreased cultivation areas, unfavorable conditions of the weather in recent years, kinds of harmful insects, epidemic diseases of livestock and poultry dịch are possibly spread; annually agricultural production has continuously developed and reached the good growth rate Average agro-forestry and aquatic production value is continuously increasing approximately over 3% in the stage of 2006 - 2009 In 2009,

in the agricultural structure of the district, breeding density is 59.8%, density of cultivation is 40.2%

1.3.2 Socio-cultural situation

1.3.2.1 Education – training

Nowadays, in the field of Dong Anh District, there are 83 educational facilities from kindergartens to secondary schools including 28 kindergartens, 29 primary schools, 25 secondary schools and 01 complementary school, total 2795 teachers to 57,935 pupils at levels This is the main force of educational carreer in Dong Anh District, which forms the basis for qualified personnel training in the localities so as

to hasten industrialization and modernization

1.3.2.2 Health, population and family-planning

Currently, there are 208 health stations including commune-level health stations, precinct-level health stations, hospitals and private surgeries with 886

doctors and medical officers With the material facilities and teams of officers as mentioned above, the basic demand of the people’s health care is met

1.4 General assessment of potentials, advantages, difficulties and challenges in development process of Dong Anh district

1.4.1 Advantages for socio-economic development

1.4.1.1 Strengths of the natural conditions

- Dong Anh has the advantageous position for economic cooperation and exchange with other districts of Hanoi Capital and the Northern provinces

- Land fund is the first advantage of Dong Anh district in urbanization process and the comprehensive socio-economic development in the field of the district so as

to successfully implement the general objective of the city: to be ahead of the whole

country for 5 years of industrialization and modernization

1.4.1.2 Advantages of socio-economic conditions

- Human resource is quite plentiful; enthusiasm is an important factor for Dong Anh’s attracting investments, developing careers, hastening movement of economic structure in direction of industrialization and modernization

- Road, railway, and waterway system in Dong Anh district is near to national highways, major highways in the area Dong Anh district is adjacent to Noi Bai international airport – the largest air terminal in the north, the gateway of the city and country That is the main advantage to develop comprehensively and synchronously economic, cultural and social fields of the district

- The cultural tradition of thousands of years, depth of the history of communist movement and its unique values have been maintained and upheld This is the great driving force for sustainable development of Dong Anh district

- Potential of goods and service markets of the district is quite large, especially

in the condition that Socialist-oriented market economy and the international

economic integration are focused on This is the factor that plays an important role in attracting investments, promoting productions and business in the field of the district

- The policies, which are set down in the Orientation Master Plan for Urban Development by the Central and the City, have facilitated the district to develop in the industrialization and modernization direction

1.4.2 Difficulties and challenges

- Socio-economic situation is weak and not proper to its potentials that created

a low starting-point in industrialization – modernization process and breakthroughs are difficultly reached

- Labor force of Dong Anh is quite large but in small quality, slowly adapts to market mechanism, and does not meet requirements of the new sectors and business fields This drawback may reduce Dong Anh district’s advantages in attracting domestic and foreign investment, especially big investors

- The economic growth and urbanization process, which has been spontaneously formed in the past time, is making the important questions to Dong Anh District

- A infrastructure system in the field of Dong Anh district has not been consistent and poor

- Source of capital of the district is very limited

Generally, many difficulties and challenges are being posed in development process of Dong Anh district in the next years that require the proper solutions for its development objectives

CHAPTER 2 MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH

DISTRICT SINCE 2000 TO NOW

2.1 Common theory of socio-economic changes in Vietnam in innovation period

2.1.1 Structure of economy

Structure of the national economy is the whole relationship of quality and

quantity in components for a certain time, space and socio-economic conditions

In the scope of this thesis, structure of the economy is reflected from the point of view of structure of the economy and structure of economic components

Each economic component plays an important role in that structure and the

correlate of this structure is shown in structure of economy In the macroeconomic

aspect, major kinds of structure of economy including structure of territory, structure

of the economy, and structure in production relationship of the economy are considered “a frame” of the economy

Structure of economy includes all sectors of the national economy It is merged

in accordance with a proper relationship of quantity, shows relationships amongst sectors and reflects growth of the economy

In general, movement of structure of economy of a country regularly depends

on several external and internal factors

2.1.2 Transformation of economic structure

To investigate structure of an economy, main matter of that structure is the structural change of economic sectors, change of the economic components and structure of territory of that overall structure, at various stages the positions of economic sectors have been changed to meet the conditions and general trend of historical development That process is called the structural change of an economy

The structural change of economy is a socio-economic reformation process for

the purposes of proper profesionalization, technical equipment, modern technologies and thereby creating high and effective productivity in jobs and promoting the economy The structural change of economy is an unavoidable and objective factor, and a gradually development process based on close combination of subjective conditions, socio-economic and natural advantages of the country, the region, and units, and possibility of investment, cooperation or joint ventures in manufacturing, service and consumption of products with other countries and regions and various economic units

2.1.3 Changes of territorial structure

If changes of a structure are viewed only according to the economic sectors, it

will be lack of one space direction – change of territorial structure

Structural change of territory is known as the proportion-based change of regions in a country scope and spontaneously or self-consciously arranged

In each period, various territories will have individual advantages, and according to their development policies, value of economic production in each region

in the same territory will have a change That change is objective, but, if there is any irrationality, right policies can be gradually changed in the positive way

2.1.4 Change of structure of economic components

In the overall economy, structure of economic components is the based correlation of economic components attending sectors, fields of components of economy

proportion-In our country, economic components have been determined as an important role in each component The State's economy plays a main role and a driving force for economic growth; Collective economy plays an important role and in many forms

of organization on basis of voluntary, equal, democratic participation and mutual interests

The structural transformation of economic components is to change contribution rate of production value of the components in the overall economy

2.2 Changes in structure and economic relations of Dong Anh since 2000

2.2.1 Changes in structure of economic sectors

In ten recent years, Dong Anh district’s economy has reached many changes Total revenue of the whole economy has increased more than 300 times (from VND153,967 million in 2000 to VND48,948,012 million in 2008), development order can be arranged as follows: commerce- service-transportation, industry-

constructional sector and agriculture

2.2.2 Changing inside economic sectors

Overall, annual growth rate of industry is more than 10% However, considering the internal structure of the industry, industrial groups at lower levels, there is over-time change of value and contribution rates

2.2.2.1 Changing economic structure in industry

In the studies of production value and number of production facilities in the industrial economic sectors in the period 2000 - 2009 showed that, number of production facilities, number of employees and production value of industrial groups has very large change Groups of sectors with the highest production value are food processing, producing beverages, clothing, leather, fur; processing wood, bamboo products; products from metals, beds , cabinets, furniture These sectors have huge consumer market, not only in the country but also for export However, it is easy to see that production sectors require high technologies and high qualification, which is very little

During this period, total number of agricultural facilities increased from 2,104 (in 2000) to 3,520 (in 2009), increased 1,416 (equaling to 16.7% of increase in the period), especially the general economic components reached the fastest growth ratio: more than 252 facilities (23.9%), followed by the individual components: 1154 (15.5%) facilities Meanwhile the private components increased not much: 10 facilities; the collective economic sector did not increase in number of facilities

The total value of industrial production in the district in the period 2000 - 2009 increased VND1,228,166 million (increasing more than 70 times), especially the general economic components with increase of more than VND 913,346 million ( increasing more than 113 times), followed by the individual components with increase of VND149,945 million (twice) The growth above is due to the competitive nature of the economic sectors in the market economy and the policies of the Party