urban rural migration and its impact on economic development

Objectives of the study: This study will be conducted to determine the factor of internal migration in the shift in Vietnam’s economic industries, using the case of the two major cities,

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IMPACT ON ECONOMIC DEVELOPMENT

Lecturer: Assoc Prof PhD Vũ Hoàng Nam

Hanoi, 2017

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CONTENTS

INTRODUCTION ! 2

1.! Importance of study 2!

2.! Objectives of the study: 2!

3.! Scope of study 2!

4.! Research Question: 2!

I.! THEORIES 4!

1.! Definition 4!

2.! Factors causing migration 4!

II.! BENEFITS FOR BOTH MIGRANT-RECEIVING AREAS AND MIGRANT-SENDING COMMUNITIES 5!

1.! The mutual benefits between rural labor force and national economic transformation 5!

2.! Poverty reduction tool 7!

3.! Contribution to the economic growth of the cities 7!

III.!CONTRIBUTION TO THE RESTRUCTURING OF RURAL LABOR 8!

IV.! THE URBAN LABOR FORCE IS REPLENISHED AND REJUVENATED ! 9

V.! THE DISADVANTAGES OF RURAL – URBAN MIGRATION 10!

1.! The shortage of rural labor at harvesting times 10!

2.! Pressure on infrastructure 11!

VI.! SOLUTIONS 11!

LITERATURE REVIEW 12!

METHODOLOGY 14!

CONCLUSION 14!

REFERENCES 15!

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2.! Objectives of the study:

This study will be conducted to determine the factor of internal migration in the shift in Vietnam’s economic industries, using the case of the two major cities, Hanoi and Ho Chi Minh City

Especially, this study aims to:

the economic industries

like Hanoi and Ho Chi Minh City affects the regional economies

3.! Scope of study

industrial economies and the shift of occupation preferences in the two biggest cities

of Vietnam – Hanoi and Ho Chi Minh city Vietnam is one of the South East Asian countries While Hanoi is the capital, Ho Chi Minh City is the economic center of Vietnam Both cities are home to the largest universities, organizations in the country With the increasing living standard in these cities, the migration rate from other cities

to Hanoi and Ho Chi Minh city has been rising continuously in recent years People head to these cities to seek for higher levels of education, higher living standards and better employment These demands that lead to migration put a strain on economic development, human management and political institutions

4.! Research Question:

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Rural-urban migration: a shift in Vietnam's economic industries and the examples of Hanoi and Ho Chi Minh City

By choosing this topic, our hypotheses focus on the correlation between internal migration and Vietnam’s economics industries The shift in Vietnam’s GDP

by sector is from agriculture to industry and manufacture should be mention With the high demand of labor force in the latter sector, the trend in rural-urban migration found to be increased

Through the facts of Hanoi and Ho Chi Minh City, we predict that the labour distribution would be: centralized in industry and construction while decentralized in agriculture sector

Therefore, this new trend might bring some positive effect for both receiving areas and migrant-sending communities, such as poverty reduction and economic sector reformation However the negative effect should be included The shortage of rural labor at harvesting times might affect the productivity and the production of harvests; thus causing more possible drawbacks More rural people migrate to big cities make the population of the areas to boom and put more pressure

migrant-on infrastructure and other social issues

Our specific aim in this report is to: based on facts and statistics, understand better about the fact of internal migration and the correlation between internal migration and the shift in Vietnam’s economic industries Therefore, there will be suggested solutions in order to overcome drawbacks and enhance the positive effect

of internal migration

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I.! THEORIES

1.! Definition

Migration illustrates the process of people moving from one place to another

in order to settle temporarily or permanently in the new place There are two important terms that relate to migration including immigration and emigration In a little more details, the main difference between emigration and immigration involves identifying the country of origin and the destination country First and foremost, immigration is especially the international movement of people from one place to a destination where they are not natives in order to settle there with the purpose of taking-up employment as a migrant worker or temporarily as a foreign worker

However, emigration is when people leave one country or region to settle in another,

either temporarily or permanently and the migrants involved are called emigrants

2.! Factors causing migration

Actually, there is a wide range of factors causing the migration of individuals

or groups from one place to another destination In this assignment, we mostly pay attention on doing research on reasons of the rural-urban migration trend which is also a part of the internal migration The significant factors which encourage people

to move to another place can be divided into the five separate categories such as economic factors, demographic factors, social-cultural factors, political factors and miscellaneous factors

(i) Economic factors

The basic economic factors which encourage people to move from one place

to another may be further classified as ‘Push Factors’ and ‘Pull Factors’ Push factors are things that are unfavorable and cause inconveniences to people living in this area and pull factors are things that have some positive aspects Therefore, it will attract people moving to this area

We can state some examples of common push factors such as lack of job opportunities, low productivity, unemployment, poor economic activity, lack of opportunities for advancement, exhaustion of natural resources

The Pull Factors are factors which attract the migrants to an area Opportunities for well-paid jobs, higher wages, modern facilities and equipment, comfortable working conditions and attractive benefit packages are considered as pull factors of an area

(ii) Demographic Factor

The demographic factor which will lead to the internal migration is the population growth rate between separated regions of a nation Due to the fact that the citizens often tend to move to the crowding area because they think that they will

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have better job opportunities and more conveniences in their life, the population growth rate between separate regions of a country will be significantly different and

be classified as one of the demographic factors leading to the internal migration Besides, it cannot be denied that the marriage is also one of the significant demographic factors in internal migration because the wives tend to follow their spouses and start a new life

(iii) Socio-cultural Factors

Sometimes the social-cultural factors play a crucial role in the migration of people from on region to another Taking family conflicts as an example, this problem usually happens in young generations, they want to live independently and far away from their family Moreover, some other remarkable factors related to social-cultural issues such as development of communication facilities, good network communication and the infrastructure also motivate migration

(iv) Political Factors

The political factors should not be underestimated in the analysis of factors causing internal migration In a little more details, the political background, the attitudes and individual opinions also affected the migration of people

II.! BENEFITS FOR BOTH MIGRANT-RECEIVING AREAS AND MIGRANT-SENDING COMMUNITIES

1.! The mutual benefits between rural labor force and national economic transformation

On the sixth National Party Congress in 1986, the Party initiated the comprehensive reform of the country, focusing on economic reform According to the Orientation, objectives of socio-economic development in 1986-1990 (National Party Congress 1986), the process of economic reform has gradually transformed the economic structure of our country from an agricultural country into a modern industrial country

In the process of industrialization - modernization, many large industrial zones have been built in cities such as Hanoi, Hai Phong, Quang Ninh, Da Nang, Ho Chi Minh City, Bien Hoa or Binh Duong

This trend directly leads to a conversion of the usage of land into developing urban area, constructing socio-economic infrastructure, it makes many farmers lose

-64) Therefore, they are forced to transition to non-agricultural occupations Meanwhile, industrial zones and urban areas have developed and the dynamics of economic sectors have created many jobs, human resources are in short supply, not enough to meet the demand There is no doubt that rural labor are the main source for

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Figure 1: Number of migrants by regions on the 5- year period 2009 2014

-Source: Population and Housing surveys 2014: Migration and urbanization in Viet Nam, General Statistics Offices, p 17

Year Migration

flows

mountainous area in the North

Red river delta area

North central and the central coast

Central Highlands

South East Area

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2.! Poverty reduction tool

Rural workers go to work in cities, apart from spending in cities, part of their income is transferred to rural areas, which is one of the resources contributing to poverty reduction

With the development of a market economy and the ease with which money can be sent via secured forms at reasonable costs, the transfer of cash to relatives has become common practice More than 90% of migrants assist their relatives in cash, while less than one in five migrants have been supporting relatives in the last 12 months in artifacts according to the survey (Le & Nguyen, 2011, p 116)

3.! Contribution to the economic growth of the cities

Migrant workers in cities are not only a source of development, they also contribute to local productivity growth (GDP) through personal spending: eating, rent housing, some other social services (Nguyen 2015, p.63-64) such as health insurance, education, entertainment,

0 20 40 60 80 100 120

Permanent1Migrants Long8term1temporary1

migrants

Short8term1temporary1 migrants Artifacts Liquidity Other1forms1

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Tiêu đề	Urban – Rural Migration And Its Impact On Economic Development
Tác giả	Hồ Ngọc Anh, Phan Phương Dung, Đỗ Diệu Linh, Vũ Cao Quỳnh Chi, Katharina Wiehe
Người hướng dẫn	Assoc. Prof. PhD Vũ Hoàng Nam
Trường học	Foreign Trade University
Thể loại	thesis
Năm xuất bản	2017
Thành phố	Hanoi

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